Transcripts For BLOOMBERG Bloomberg West 20150402 : comparem

BLOOMBERG Bloomberg West April 2, 2015

We will take you live to switzerland when the News Conference begins. The second black box of the flight crashed into the french alpalps was found today. Meanwhile, the copilot is believed to have intentionally crashed the plane. Suicide methods were found on his tablet. At least 70 people are confirmed dead after a terror attack at a college in kenya. The gunman went to somalia. The alshabab terror group stormed the university 90 miles from the kenyasomali border. A number of them were being held hostage. Indiana lawmakers set to unveil a proposal today to amend the religious freedom mother has created criticism of the state from the business community. The new protection will ensure that the law will not allow businesses to discriminate against gay and lesbian customers. And the European Union probing deals of the record labels, streaming services were sent questionnaires by record labors that says regulators are not targeting one specific company. There is a wider eu antitrust investigation where companies are restricting choice because of their online sales practices. Breaking this hour, diplomats in iran and six world powers set to give statements any minute now as a result of a marathon iran nuclear talks. The talks in switzerland have details of the broad agreement, but we have Bloomberg News reporter Elliott Gotkine on the phone and our washington bloomberg chief washington correspondent peter cook with me now, and in studio, Edward Morris, who knows a thing or two about what we are talking about here. I will start, elliott, what is the scene on the ground there . Elliott maturin he tweeted that she had good news, along the lines solutions onto perimeters of the Iran Nuclear Case reached, drafting and start immediately, which in all in all translates as it seems like we have a deal, so after eight days of negotiation we are expecting them to announce a deal. We are also expecting the general statements around what the deal entails, but the actual details to be enshrined in some sort of secret annans, which they will work on over the next few months. Cory elliott, be seen in lausanne seems crazy with the russian diplomat leaving and coming back, the french tip of my leaving and coming back. Is there a sign that when both of these guys returned things got serious and a deal might happen, or is that leaving itself about show . Elliott we have been expecting a deal for the last three days, so surrogate lover of left the day Sergey Lavrov left before the deal, then he left, he came back, then he left again. Another way back yesterday and returned late last night so you can try to read into the various maneuvers of the various diplomats, how they are looking, secretary of state john kerry, he went in and came out two minutes later, he wished he had time for it and he looked absolutely exhausted, which is hardly surprising because they have been working so hard on this agreement. But lets not forget this is not even halfway. The real details, the rail real hard work begins over the next three months to work on the Technical Details to create a definitive deal, which they have to reach by june 30, which is when the interim sanctions bill with iran is due to expire, the end of june 30. Cory peter cook and washington, d. C. Your take. Peter my take is lets wait to see exactly what we hear not only from the europe in union and the Iranian Foreign minister, javad zarif, but we have heard little to nothing about the u. S. Position on this. We expect u. S. Secretary john kerry to have his own rest conference from the eu, the high representative and the Iranian Foreign minister. Do not be surprised if there is still some daylight between the United States and European Union on exactly what was accomplished today. We will see. But the white house is very cautious, the president has not had anything to say yet. In fact, his own departure to louisville kentucky has been delayed somewhat. We have not been given exact reason but you can be sure he will give his own take of where things and. Still some questions here at the white house. Most of the reaction has been from the eu sight for me the last few minutes of twitter, or a, the cory iranian president rouhani has been weighing in saying they are finding a solution they will get about to business of drafting this or mulligan it big and that is just two of the participants in these negotiations. Lets see where the u. S. Stance before everybody starts toasting a deal. Cory indeed, on the twitter front as well, the German Foreign office tweeting agreement on framework for final agreement reached. Press conference following. Professor Edward Morris from uc berkeley joins us as well. Professor morris, a lot of the scenes about limiting the number and the output of the centrifuges of iran but also possibly increasing that. Talk about what this means, the number of centrifuges. Professor morris the real issue is whether or not they have the ability of breaking out it within a short period of time in taking that material to weapons grade and a time that is so short that we cannot really do anything about it. Cory which is supposedly less than three months. Professor morse i have heard less than seven months. Cory if that is the case, why havent they done the thing thing . Professor morse that is the thing there has never been any evidence that they want to make a bomb, and it has been this way for a long time. When the shah was there, we give them a reactor that was equipped with enriched uranium, which was weapon grade material. We had trust in them at that point. They did not try to do a thing then, but since then, there really have not been any serious efforts that we can tell that they did all the other ancillary things besides the centrifuges which would give them a bomb. Cory is this all a ruse to get Something Else out of the International Community because the sanctions have hurt the country . Professor morse they have hurt the country, and we do not like the idea that in such short order they could make a bomb stop that is the issue, but there is no evidence that they have done any of the other activities that would give them a nuclear weapon. Cory and there are a lot of battles in iraq, interesting things with tikrit with who they are arming in tikrit, and the fighting of isis in syria. Professor morse yes, the political situation is kafkae sque. They have no reason to have a centrifuge at all. They have a contract with russia to supply the reactors. They have a great deal of material, which is enriched just under the limit, which we would call highly enriched uranium, 19. 75 . They have one country reactor that runs on i come and they have like a that runs on that, and one wonders what they are doing. Cory kenny centrifuges be limited or monitored . Ifs the outlook measurable so the rest of the world would know what the centrifuges are doing . Professor morse oh, absolutely it could be made transparency. We could determine the enrichment at every stage and the centrifuge cascades, they are called, see what they are really up to. Cory what is the Technology Like . Professor morse it can be mass analysis, things like that, it can be a gamma ray signatures we can look at in the material. There are a number of technical options we have cory you can examine the machine and see what has come out of a . Professor morse yes, they run on uranium hexafluoride and you can monitor that and see what the enrichment level is on every stage of the process if you are allowed access, but so far we have not have that degree of cooperation. Cory is this measurement done elsewhere in the world . Professor morse absolutely. We do that in our own enrichment plants to make sure every thing is going according to what we dont do. There is tremendous experience in russia in measuring isotopes and things like that, so all over the world this is done. Cory has this kind of measurement be a staple of prior nuclear arm reduction particularly in the u. S. . Professor morse no centrifuges and arms reductions are not covered. Cory peter is still with us and washington, d. C. From the political side, president obama has a lot riding on this. The recent battle about netanyahu speaking before congress. This was the central issue. The Republican House has vehemently opposed any plans here, more loudly than anyone else maybe for this deal. Could that her the likelihood of this deal, even if the rest of the world agrees to it, if the u. S. Is not backing it . Peter absolutely. John kerry has had a struggle negotiating with the iranians over this deal. I think this could have an even bigger struggle trying to sell it to members of congress up on capitol hill, particularly republicans that even some democrats. Thisll be a tough sell particularly, cory, if the end result of this negotiation is not the specific details that the administration was hoping for. No one expected a full agreement by this time that every single measurement and every single word, every single i dotted, t crossed, but they didnt expect a political framework laying out the commitment by each side, and it is that its not what were going to hear shortly in lausanne we would have harsh critics. Even if we did have that, we would have harsh critics of the steel. As will be a tough sell for the president and secretary kerry and one reason they are being cautious clearly in what they have to say about initially. Cory i wonder what we will hear out of israel as well because israels position has been there should be zero enrichment capability for iran whatsoever. Peter that is right. We heard that just yesterday again. Strong statement from Benjamin Netanyahu when he was meeting him of all people, the speaker of the house, john boehner. Coincidence . I dont think so. The speaker of the house visiting during the recess at this cripple moment in the iran negotiations, again showing somewhat his solidarity with Benjamin Netanyahu, raising his own questions in an interview while he was in israel about this deal and about whether or not the Obama Administration was too keen on reaching a deal in the end. This is going to be a very tough sell here in congress, but you after member that the president is going to have the ability to shape some of this on his own. His executive authority is on point will have to go through the u. S. Congress. Not all of it, but some of it because some of the sections in question were again approved by congress and made into law. Cory professor morse, last question really quick if there is some capacity to enrich uranium, is there always a risk of a bomb coming out of the country . Professor morse as long as they have centrifuge capability that they have now, and they have the materials they have now again, there is a very short time for them to make weaponsgrade materials. But there are a lot of other steps involved in making a bomb, and as far as we know, they have not taken no steps. Cory edward morse from uc berkeley, Elliott Gotkine, we will cover this when bloomberg west returns. Cory i am cory johnson. This is bloomberg west. Still to come, looking for a room in cuba . Airbnb is here to help. And diagnosing your health issues. Some other stories making headlines as well greece Opposition Leader says he is willing to open the new government with Prime Minister Alexis Tsipras if it would help greece stay in the euro. He was ousted by tsipras in the recent election. Greece leaving the euro would be a total catastrophe for the country. A trawler sinks. 15 people are missing. Six the three people were rescued. 54 bodies recovered. A number of the Fishing Vessels and mary a have been helping with the rescue. Possible safety violations led to the sinking. Kraft and mondelez are accused of illegally influencing the wheat prices by Holding Contract they did not intend to fill. Craft spun off mo kraft spun off mondelez in 2012. Airbnb one of the First Companies to establish a residence in cuba since the two countries eased diplomatic relations in cuba. Because of cubas infrastructure, brad stone from bloomberg is joining us for the story. I love this story, but lets talk about what it means, what are they doing, how big is that . Brad airbnb is one of the First American companies to really react to the thawing of relations that president obama and cuban president raul castro announced in december. It can contract with local entrepreneurs. What are they doing . Theyre making about 1000 properties, mostly and have onana available to u. S. Residents. So now there are more travel options. The number of hotels are limited in cuba. There is an existing network of hotels, and airbnb is piggybacking on the network of cuban homeowners who have been renting out their properties to homeowners. Cory i just read this great book called havana nocturne about business in cuba. By a landscape, it took them about a year and a half to build the hotel riviera, which has 352 rooms. It takes airbnb like a week to add 1000 rooms. To me, if this is about cuba this is about airbnb and what they are doing to the entire hotel industry. Brad also this idea that the sharing economy. Cuba, frozen time for the years, has really developed the first sharing economy. Not just these casas particulares, leave and go to restaurants in cuba, there are taxis, not connected with uber but people driving around willing to pick people up. It has shown how the cuban people have reacted to the constraints of isolation by sharing their assets, and i have allowed airbnb to come in with a pretty strong solution right off the bat. Cory first of all for the record, it is important for the viewers know that you and i should go to cuba to report the story. I will let my boss know about that expense report as soon as i am off the air. He may be calling me right now. This is an amazing story because of the impact airbnb has had on the hotel industry. There was a rate moment when marriott in a Conference Call said they will add 30,000 rooms over the course of a year. Brian schatz key when on twitter and said yeah, i am going to add that this month. Marriott has 33 thousand rooms this year, i will add that in two weeks. You mentioned uber, there are these companies where they have no hard assets, whether it is uber, airbnb where they are able to take on the infrastructure of other individuals or other businesses and grow their business just as a referral agent. Brad that is right. In cuba, hotels or partnerships between the government and private companies. By moving into cuba and doing these direct relationships with homeowners airbnb is empowering the cuban people, you know, and allowing them to build a business is apart from the government, so even though the detante sort of allow this airbnb is building a partnership with the cuban people that is outside the purview come outside the reach of their government. Cory and when you compare it to the big chains of hotels, when you compare it to the marriott hilton, i mean, they have got a comparable number of listings as well. This is a big do not tell raul, this is capitalism coming down the pike here. [laughter] brad that is right, and these sharing companys can build frictionless businesses without a lot of employees without a lot of assets. Airbnb is still restricted by existing laws. They cannot hire anyone in cuba they cannot put employees there, they cannot offer these properties to nonus residents at least for now. They are operating with one hand tied behind their backs, but because you mentioned, the model is so frictionless, they are able to spin off and offering very quickly. Cory indeed they are. Redstone, i will see you brad stone, i will see you at sfo in what, in our . An hour. We will bring you the very latest from iran after the break. Cory welcome back to bloomberg west. I am cory johnson. In lausanne, switzerland, it apparently strokes have been reached between iran and the International Community. Peter, what do we expect from this press conference . Peter we expect to hear again the terms of this Framework Agreement between the nations and iran. So far the European Union, iranians have expressed positive views on what transpired here. We will wait to hear from the United States as well as her they are totally on board. John kerry and president obama he is ill at the white house waiting to travel to louisville, kentucky. More coming up from john kerry after this initial News Conference, cory. Cory peter cook, stay with us we will continue to cover this one bloomberg west continues. Around here, were all about fast. Thats why xfinity is perfect for me. With millions of wifi hotspots all over the place including one right here at the shop now we can stream all things fast and furious. Youve done it again, carlos with the fastest inhome wifi and millions of hotspots xfinity is perfect for people who love fast. Dont miss furious 7 in theaters april 3rd. Corey welcome back. Im cory johnson. Weve been waiting for a News Conference from luzon, switzerland. Lausanne, switzerland. They have a couple of podiums but no people yet. As soon as the people are there, we will bring that to you. Lets check the headlines beyond that news. Robert menendez has appeared in federal court to address corruption charges. The democrat is accused of using his office to benefit a friend and can Train Campaign contributor. Yesterday menendez vowed to fight. Senator menendez the people of this great state have elected me to work for them and that is exactly what i plan to do, no matter how long it takes to clear my name. Cory he will for now sit down from the Foreign Relations committee. Al qaeda stormed government building

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