An additional 25 trapped mosquitoes have tested negative since the three in miami beach were found. Global news, 24 hours a day. Im mark crumpton, this is bloomberg. Bloomberg west is next. Emily im emily chang, this is bloomberg west. Another blow for elon musk, the second spacex rocket explodes in just over a year this time also a blow for facebooks mark zuckerberg, well tell you why. Facebook continues its expansion of live video onto its messenger platform. Well hear if the cocreator turned competitor of Facebook Live. And could pairing up with centex with an answer to better profits. But first our lead. 5 Spacex Falcon 9 rocket xploded on the launch pad in Cape Canaveral today. It occurred in routine preparations for an upcoming launch this saturday. In a statement they said there was an anomaly on the pad and the pad was clear and there were no injury. The falcon 9 in this accident was supposed to carry an Israeli Communications satellite into orbit that, too, was lost in the blast. Shares of its Parent Company slid nearly 9 in tel aviv. The satellite was en route to space to beam Internet Service across africa for facebook. Well get to that in a moment. But first, spacex had been ramping up with frequent launches to make up far backlog created by its last accident in june, 2015. Saturday would have marked their ninth launch of the year. Joining us on the phone from outside washington, d. C. Is irector of space studies marco seseros. How unusual is an accident like this and how might this have happened . Its extremely unusual for western launch companies. Exs an activity, prelaunch test, static firing of the engines, that they were about to do, is something that they do before every mission just to make sure the engine the nine merlin engines that power the first stage of the rocket are working like they should. So they were preparing to do like a three to four second test firing of these engines and something must have happened when they were fueling, they were fueling the second stage, the upper stage of the vehicle when the explosion occurred. Emily how would you compare spacexs safety records to other private Space Companies or even nasa . Spacex has an excellent record. They have been launching an awful lot. They have a presence in all the major subgroups of the launch Services Industry, so theyre an extremely active company. Theyve had some problems with the falcon 9. But nothing unusual. Particularly for a company that is relatively new to this market. In five short years this company has become the establishment player within the launch Services Industry and to come so far in such a short amount of time and have as few problems as theyve had is really amazing. Emily does that mean to say you dont think this will impact the likelihood of them getting future contracts . I dont. Its still too soon to tell what exactly happened but i would speculate that this is not something that is specific to the launch vehicle itself. If this had occurred if the failure had occurred after launch or during flight, that would be something totally different. But this is something that happened before the vehicle was actually operational. So well have to wait and see but i dont expect this will delay them or certainly affect any future contracts. Emily elon musk said it originated around the upper stage oxygen tank. Does that give you any clues . Theres two stages to this rocket, the first and upper stage. What they do is they fuel up the vehicle and they were fueling up the second stage, probably. Its fuel with lek wid oxygen and kerosene a mix, so its highly flammable. Doesnt take much to cause a mark and perhaps an explosion of this magnitude. Emily marco, thank you for weighing in. There is another billionaire upset by this loss, mark zuckerberg, because this satellite was part of facebooks internet all ng over the world. He issued a statement from africa, quote, i am deeply disappointed to hear that spacexs launch failure destroyed our satellite that would have provided connectivity to so many entrepreneurs how much big a blow is this to facebook . Did they own the satellite . I dont think it was a coincidence that zuckerberg was in africa when this was set to launch. Hes there talking to entrepreneurs in nigeria, kenya, making a first ever trip to subsaharan africa. Talking to people about building businesses, connecting the world. This is extremely close not only to his mission for faceback but to him permly he wants to be the person to bring these people online and help them have better connectivity. The ofolks behind the satellite are concerned about losing facebook as a customer. How crucial was this particular satellite to the internet. Org plan and can they easily get another one . Well, when it comes to satellites its not easy to get another one. These are projects that take a very long time to come to fruition. This is something zuckerberg was excited about and talking about being a crucial part of the subsaharan african connectivity strategy as early as act of last year. He mentioned this as a key pillar of his strategy. There are other things hes doing. There are the drones that facebook has been working on, theres some radiobased ground level projects that theyre working on. The satellite was just going to the easier, bigger emily do they have other satellites in space or is this the first . They are working on getting more. Emily all right, sara, were going to continue to follow this story and you are sticking with me, two stocks we cant to watch, tess la and solar city, plunge on fresh doubts about whether elon musk can pull off a planned merger on wednesday. A filing for the merger showed the significant cash burn theyd have to manage and tess la considered a proposal before the may stock option offering. Solar citys value has been falling fast than tess las. Elon musk has a lot on his plate right now. Coming up, facebook unveils a new way to share live video. Well talk to the former manager of Facebook Live that recently launched another live Video Streaming Company that will compete with his former employer. And maddening and disappointing, he has strong words for the e. U. Going after his company. Emily another story we are following, apples fight with e. U. Regulators of a tax penalty over illegal state aid from ireland. C. E. O. Cook has said hes confident the company will win a court fight. Here he is speaking to the irish broadcaster rte. Its maddening, its disappointing, its clear this comes from a political place. It has no basis in fact. Or in law. And unfortunately, its one of those things we have to work through. I have faith that eventually, what is just and right will occur. And i dont believe the journey to get there will will be all roses by any means. I think there will be ebbs and flows of it. But i do have faith that the right outcome will occur. Emily also in that interview, cook said apple may bring 5 million of its offshore cash become to the united states. It can credit any tax it pays abroad against the top Corporate Tax break if it brings offshore profits home. Facebook is continuing to expand its live video presence. The social networking giant launched an instant video today within its messenger platform. Users can tap a video icon. Last month a key player from Facebook Live struck out on his own, created his own Live Streaming app. , the former ow facebook employee. Why do you think you can do this and facebook wont eat your lunch . Were doing something really unique. At facebook we built this product thats designed for sharing with lots of people. One thing my cofounders and i learned are people are intimidated to go live to lots of people. A lot of moments you maybe only want to share with a handful of people and to the rest of the world they would feel pretty mundane. Emily isnt this instant video thing they Just Announced what youre trying to do . In some days it is, it validate what is were trying to do and speaks to the idea of easing the anxiety of sharing the moment. Were building an experience with allaround video and were just getting started. Emily sara . Sara one thing i wanted to ask you is about the money making side of this. Facebook recently talked about one way theyll monetize live videos, letting people put commercial breaks in, content partners could add commercial breaks. What do you think is the appropriate way to make money off live video . Thats a good question. I think its really, really early to know the right way. I think right now theyre experimenting, trying things. Is that a good thing to do . I think its the right thing to do, i think you need to try a couple of different oproaches. And you know what, doing a commercial break might work for some partner bus might not work well for partners that dont have huge audiences. I think youre going to have to really try a lot of different things. You see people in different parts of in different parts of the world, like in china, for example, where live videos live video is blowing up. Theres some interesting monetization models there. You have inapp purchases where people can pay to give feedback to the broadcaster and thats become popular. I think that were just sort of starting to scratch the surface with monotyization for live video in general. Everyone is trying to figure it out. Do you know what you want to do . We dont yet. Were going to try a cup of couple of things. Live is really part of the way you share. You can share something after the fact. Were trying to make it your modern day camcorder. So you can share live or after the fact. And so we might actually explore storage as a monotyization. Its actually video is is one of the biggest reasons why people run out of space on their phone. We also might explore going down the advertising route and try some things there. Emily why do you think you wont be the next merecat, a Live Streaming app that tried to take on periscope, theyre really struggling. Will facebook and twitter be the only players in this thing . The reason why the facebook model has work sod well with Facebook Live is because they have a scale. When youre going after, when youre designing a product where its all about sharing and reaching lots of people, you better have lots of people that broadcasters can reach. So i think that that was thats the challenge actually with a lot of Live Streaming apps out there. Theyre all really sort of trying to play in the space of, i use this as an app to broadcast to lots of people and thats going to be really, really difficult thing to try to, unless you have lots of scale with someone like periscope or Facebook Live. So were really trying to focus on, instead of rebuilding your network, we use your contacts. You might just need a couple of people on a live feed to share with, might be your significant other or your best friend. Emily the graveyard is full of social media apps that have failed. O you know, path tried to be a smaller social network for friends and family and didnt quite work out. Why do you think it could work for video when it didnt work out, when it was really mostly photos . I think theres a few different challenges. You can do a private network or small network, i think some of the challenges that even path had, even though it was a small network, is you actually still needed a good scale of people to use it because the feedback model, for example, was very similar to facebook. So you post something you want to get feedback, want to get comments and likes on things you share. And its interesting, you look at someone like snapchat, really in the last few years has started with one to two model. It was about sharing with a few people. They expanded to the one to many. But their feedback model was interesting in that it eased the pressure of how your content is doing when you share there. Its not about, you know, how how much feedback youre get, its more about sharing that oment. Do you feel thats something youre trying to prvide or do you want people to comment and interact and give feedback as well . Thats something were definitely inspired by. We wanted to create an experience that was really just took away the anxiety and pressure. Most of, as i mentioned, a lot of live video apps and just video sharing in general is really kind of designed around sharing with lots of people. Not really. You have facetime, you have skype, you have many ways to share with i think of those as somewhat different because its sort of like video calling. If you want to capture a video and share it send toyota someone, believe it or not the most popular app out there today is s. M. S. Thats what most people still use to send video. Its an awful experience. It gets compressed, it all gets stored on your device. If theres anyone were going up against its s. M. S. The thing that helps with s. M. S. , you can do it, you dont have to be waiting there to have a live experience with somebody, you can have it asynchronous. Yeah, thats how we designed it too. Were trying to add value through the live experience so you can share in the moment, i can select emily and shed be able to watch it as its happening or she could watch it later fazz she got a video message. We want it to work for both instances. Live is just kind of a format youre able to share. Emily all right, lively founder, former Facebook Live project manager. Well check it out. I feel like it would be good for kids. Coming up, should u. P. S. And fedex fear jeff bezos . We dig into his plan for amazon air. Emily a story we are watching, pokemon go fever is still alive. Softbank reached a deal to make some of their stores in japan pokemon gyms. The idea is it would create foot traffic in their stores. Shares jumped to their highest level in two weeks. Researchers believe 30 Million People log on to pokemon go to play every day. Amazon has found another use for its streaming site, twitch. It streamed two original tv pilots on the gaming website and is seeking feedback from its users before committing to roduce entire seasons. Amazon bought twitch two years ago for around 1 billion. Speaking of amazon, earlier this month they unveiled their primeair boeing 767. The goal, to getted orers to quds hers faster using their own planes. Some analysts wonder what it means for fedex and ups. Devon writes about this. Tell us more about why amazon is doing this, tell us why it could save them rather than cost them more . Amazon is growing so fast that theyre overwhelming their longtime delivery partners, whether fedex or ups, at peak time, the holiday time. Theyre becoming a delivery company. Theyve leased 40 planes, the first one was the primeair plane we just saw in seattle. And you know, theyre going to become one of the worlds Biggest Delivery Companies. Thats got some people concerned, you know, investors in fedex and ups, what does it mean for them . Emily isnt it insanely expensive . This is a company that spent 11. 5 billion on shipping last year. Theyre spending a lot of money. Theyve built all of these Distribution Centers and primenow hubs and delivery stations but theyre leasing the planes for the time being but you know, if they cant get all these packages delivered on time to prime members, amazon prime isnt going to grow asst fast an thats going to be a problem for the company. Ultimately, you know, they have to. The question is, do they turn the delivery arm of the company into a business that actually generates money Like Amazon Web Services . A lot of people think thats going to happen. Emily talk to us about the broader shipping and Logistics Industry and why people are for the voice about this and if it indeed succeeds how that could cascade and affect the broader picture here . Amazon has ha history of creating businesses in house, just for themselves, Amazon Web Services is a good example. Fulfillment by amazon. Then sort of opening them up to outside businesses, you know. Other companies. And turning them into, i guess what Amazon Web Services is expected to be a 10 billion business this year. So if amazon decides to do that with its delivery business, its almost overnight become one of the worlds Biggest Delivery Companies and itll be, could be a direct competitor to fedex and ups. Right now amazon says theyre growing so fast, theyre still growing their business with those companies but theyre taking some of the business they used to do with those companies and doing it in house. The question is, how far do they go . I think a lot of people think, you know, in five or 10 years, they are going to be one of the worlds Biggest Delivery Companies and a direct competitor to ups and fedex. Emily devon leonard, read about his new piece in the upcoming issue of Bloomberg Business week. And hear more every saturday and sunday on Bloomberg Television. Coming up, well hear from the c. T. O. Of indias largest Conglomerate Group on the companys next big move. Tomorrow, dont miss a rare exclusive interview with russian president Vladimir Putin speaking with our own editor in chief john mickelplate. Tune in tomorrow. Mark im mark crumpton, youre watching best best bloomberg west. British Prime Minister theresa may has set out the first of her lines for brexit negotiation. She wants to end the Free Movement of people coming to the u. K. From the European Union and suggests shes willing to leave the e. U. s Single Market to accomplish that. Some hispanic leaders advising donald trump say they feel betrayed after his big immigration speech wednesday in phoenix, arizona. Latino partnership for conservative principles president Alfonso Aguilar said, quote, im withdrawing my support. I was expecting something very different last night, end quote. 90 people were murdered in chicago in august, making it the deadliest month in the city in 20 years. Its already had more murders this year, 471, than new york and los angeles combined. Thats 50 more than a year ago. Georgetown university will give priority admission to the descendants of slaves owned by the maryland jesuits. The universitys president said the move is to atone for the school profiting from the sale f enslaved people in 1838. Global news, 24 hours a day, powered by more than 2,649 journalists and analysts in over 120 countries. This is bloomberg. Its just after 6 30 p. M. Thursday in new york, 8 30 riday morning in sidney. In sydney. Lets take a look at new zealand. Off by a few points in the first 30 minutes of friday trade. We are expecting a town day across the region. A. S. X. Futures pointing low thorne back of weak oil and those weak factly numbers from the u. S. Energy stocks here in australia likely to feel the pressure again. Nikkei futures looking mixed. Might be worth keeping an eye on a few of the japanese banks today. They have signed agreements with three major banks in japan though it didnt name them, its mitsubishi, and mizuho financial group. Theyre likely to be involved in a possible i. P. O. Which the Prime Minister also backs. Take a look at currencies at the moment at wes. I mentioned the weak manufacturing data out of the u. S. Were seeing fwapes in the new Zealand Dollar and Australian Dollar while the japanese yen pulling back to low every levels. Some of what were watching around the region this morning, im paul allen for bloomberg tv in sydney, australia. Emily mt. Bloomberg west im emily chang. Indias largest conglomerate leads across the nation from industries from steel to software. Most recently theyve ventured into wearables and ecommerce, challenging the likes of fitbit nd others. Our reporter sat down with their c. E. O. About how they plan to expand. If you think about it at a broad level with energy, food and wellness, and Consumer Products. The technologies, we think those areas that have an impact for 100 Million People and have potential of 100 million in profit. Those are areas where we would focus that brings us down to clean energy. Fuel cells, and in food we are looking at the first example we g pesticide and consumer are looking at wearables. Our starting point is active wearables for workers. We believe that that will help cap the market and we are playing from a position of power with the factories. We will build a product thats much better than a Consumer Product as well. We are identifying cases with machine to machine communication is going to happen. Its not a machine where analytics happen and a human makes the decision but we want to automate as much of that. Developments in Consumer Electronics are fascinate, youre making wearables for yoga enthusiasts and factory workers. What else is brewing in the works in Consumer Electronics . We do have puma, an outlet for various products we make. But at this point in time we are very limited in what we offer as products. So the goal would be to increase the offerings. How to you see the wearable Device Market developing in india. You have players like fitbit and apple. So the group models at this point in time. So while people might buy a fitbit or apple or any other form of fitness wearable, they drop off. Its going to take a new form. We are looking at it more holistcally. So looking at health from a standpoint of sunlight exposure, breathing patterns, gut sounds, stretching, in addition to things like pulse rate and heart rate. So that we are tied to personalized wellness might be a way that it will be more successful in the consumer segment. Whats the late thoennes digital platform . The idea there is to bring the patient, the doctor, the Pharma Companies as well as the Insurance Companies on one platform but the longer term vision is for us to make use of the data to gain insights which will help us move from diagnose and cure to improve treatment. Lets talk about apple. The finance minister in india approved a proposal that may make it easier for aple to open stores there. What do you make of their push into the indian market . I think its good for every company to look at india as a market. India has to become a lead market. What i mean by that is india has to demand products and Services Based on its unique needs and that will drive innovation across. In india, o happen india has to become a lead market. So more Companies Like apple coming in and meeting the needs of consumers will help us get there faster. You report directly to cyrus mystery. What are his top priorities, is it turn around loss making companies, investing in tech and innovation . His priority will be to look at the portfolio and reaugment the portfolio so we are looking at a profitable, sustainable growth. Theres a lot of patience in the tata group. Its not that theyre looking for the turn around story overnight. Theres a lot of patience as long as were investing in the areas which will be longterm success. So First Priority would be portfolio and making sure we have the right portfolio. Technology is confident of the trategy as well. We have aspects of technology from visiting along with us to the universities and going to Startup Companies across the globe. So its not limited to india. Bloomberg reported that you are looking to offload Assets Abroad in steel, communications, power. Are we going to see more of a pullback overseas to focus on the domestic market . No, actually, its not. The focus is to have the right portfolio so along with the divestment, we have had investments as well. It balances out. 30pluswould be listing billion dollars. The repositioning of the portfolio is part of the strategy. Earlier this year you launched an ecommerce venn chour. How will tata compete in a place dominated by snapchart and amazon . We have a significant presence with retail athletes. Retail athlete outlets, we re going to increase that. So the way were going to do it, the consumer will have access to the neighborhood store, if he or she wants to buy from that store, either go there or get it delivered which will be quicker, but also the ability to return the products to these physical outlets will help gain the trust on the consumer. The other aspect of the trust element is the ability to deliver the right product to the consumer so there have been many instances where consumers have been delivered products which have been, consumers felt it was easey to use or it was wrong product or empty boxes were sent. We are not doing a warehouse based approach as much as directly the portfolio of companies which are part of the ecommerce business which are Tata Companies and nonTata Companies as well. Interesting. But startups tend to be more agile. Does that put you at a disadvantage . The way i look at it, were a startup with deep pockets. So thats how i think of it. So there is an ability which is possible from tata and this adventure has been launched. And what about mma, did you look at the startups in the various verticals youre expanding into . Were seeing news that Tata Group Companies have acquired companies in the recent past as well but even at the tata sun level we do that. Emily that was the tata sun c. T. O. A story were watching, vera phone shares tumbled after cutting Sales Forecast for a econd quarter. Many merchants have already made the transition, leading some to worry about a slowdown. Coming up, german banks are king a page from other companies to remain relevant. Well hear from a leading player next. And this weekend well bring you our best interviews from the week, including our market moving conversation with ed williams, c. E. O. Of twitter, why he says twitter should weigh all options. This is bloomberg. 6 color emily germanys largest bankers are fostering relationships with finTech Companies. Their revenues rose. Our reporter spoke to c. E. O. Of one of these. The Banking Industry is ready for disruption. Its basically there since three years now. But because of negative Interest Rates and cost infrastructure that doesnt fit to that negative interest and customers demanding for more straight through digital process, definitely a big topic right now. How much are you working against the banks or with the established banks . We dont see it banks versus fintech. Its more who will solve the customer problems or the customer demands quicker. Its a game, tech versus bank. When you see, when youre being a banking ceo it should be more frightening for Companies Like apple, google, or amazon, or the young, fastmoving Tech Companies, not because they know banking better but because they know how to bring in the best tech and digital products. I think whats fascinating about finleaf in particular is you call yourself a Business Building you find the business problem you want soft solved and then seek out the entrepreneur. How hard or easy is it to find talent within germany at the moment . In general, finding the best talent is always difficult. We profit a lot from that that we are able to build in a branch in two years. We are getting thousands of applications per month. Every new startup can benefit from. However, interesting is that brexit is helping us in getting even better talent. More senior banking experts are interested in coming to a city in berlin, where we are based. The tech challenges usually get from eastern europe, berlin as well, very international city. Finleaf hires people from more than 0 nations right now. How international do you want the businesses you create to become . Our focus is europe. The regulation is quite light there. Especially in the European Union. Thats the thats a big market for us. Thats where we start and where our focus is. We are active in 10 countries already. Our carolyn hyde there reporting from london. On todays funding board, the Fantasy SportsCompany Draftkings raised 150 million. Investors included revolution growth, cofounded by a sports magnate. Fortune reported earlier it was raised as a lower valuation than companyillion value the recently established. It will help boost draftkings as it heads into football season, the busiest time of the year. Coming up, safety concerns about a new smart phone. We check in with our Asia Tech Team next, this is bloomberg. Emily good news for star wars fans. Bb8 ce is now with the toy. The new toy has a wristband that allows you to control it. Sphero and other star wars toys generated millions in sales. I took the droid and new force band out for a test drive with the sphero cofounder adam wilson. I turn my wrist like this, it starts moving around. What were going to do is hands down. Now, like youre throwing a baseball. Put your hand this way to have him drive that way. He got around he got around. Force is strong. Thats the main driving feature of the force band. Theres another mode in our rce band thats more for not driving, but fun. Training has begun. Im going to say you have a fighter, put that in your hand, im going to do this. Wherever you want. So you can sort of turn your force band into anything you want from the star wars universe. A light saber, any ship, some of the characters as well. Emily one last time . O that was adam wilson, cofounder f sphero, showing me the latee bb8 toy. Sm of many of those will be under tree this is christmas. The new movie expected to release at the end of the year. Je die knights can start jedi knights can start training with the droid when it ships late they are month. And samsung having problems with the galaxy note 7, there are videos of it catching fire. Joining me to break it down, peter, our asia editor. What are the real reasons for the delay . Peter samsung has not said whats behind the halt in the shipments at this point. This is taking place just in south korea. They havent gone beyond that. They havent explained it. But there have been reports as you mentioned of explosions and fires starting with the samsung note. Not a good sign, obviously. Theyve halted these, looks like theyre digging into it and doing more research on whats behind the problem. Emily how serious is this problem . Well, they just introduced the phone last month so its certainly not a good sign. The phone got very good reviews which is something samsung has been looking forward to. They have been struggling to have more hits as they go forward. This is a setback for them. There are reports out of korea today that samsung may end up recalling the phones, that could be in korea, could be broader than that. It could even be a global recall at this point. That would certainly be a big deal and big setback for the company. Emily state run media reporting the possibility of a global recall, you know. At what point do we find out if hats going to happen . Peter as soon as possible. Were digging into it. The local newspapers are digging into it. I think samsung is going to they have to bring some clarity to the situation soon. People are out there buying these phones. Emily how do Tech Companies handle these kinds of battery issues . There have been several. As companies experiment with new kinds of batteries that have longer charges, theyve run into these problems in the past. Apple, of course, had similar sorts of things when people were connecting their phones to chargers that were not apple chargers. There were some problems with hover boards in the past also. Companies typically recall them. In the case of apple, what they did is made sure people were using their authorized chargers in order to make sure that the charger and the phone worked together. Its not clear exactly whats behind this problem but you expect samsung to dig into it and try to bring clarity to the situation and work out real solutions. Emily talk to us about the bigger issues here, samsung, the Smartphone Market is slowing. Theyre trying to keep up with apple. Apple is on the verge of announcing its next generation iphone. Ow critical a time is this for samsung . Peter thats a good point. It could not come at a worse point for samsung as apple prepares to come out with new phones. Thats an issue for the company at this point. They have been on a bit of a resurgence. Samsung does more than just phone, they sell components to apple and other smartphone players in the market. They have the opportunity to sell components. But they want the smartphone business to do well and it looked like they were seing a resurgence up until this point. Emily our Peter Elstrom from tokyo, i know youll keep us updated, thank you for joining us. That does it for this edition of bloomberg west. Tomorrow on Bloomberg Television and radio, dont miss a rare and exclusive interrue with russian president Vladimir Putin speaking with our editor in chief. Tune in all day friday for exclusive conversation. Our coverage continues next week with a special hourlong report at noon new yorktime, 5 00 p. M. London. Thats all for now from san francisco. This is bloomberg. Announcer from our studios in new york city, this is charlie rose. Charlie rose tell me about horace and pete. How did you come to this . Louis c. K. it just i dont know its weird. Its like i feel like i found this family in my head somewhere. I dont know. I got interested in doing a show that was like multicamera the way a sitcom was shot but without the audience, without the laugh track and without the need for the constant jokes, that pumping of jokes that sitcoms have. Because what you are left with is that live feeling. Its kind of like a multicamera