This demonstrates that our platform could be worth more outside of the company. Cory shares respond in the most in five years. Blackstone group also redefines excel trust. They have malls in the southwest and the southeast. The deals cement blackstones position as the worlds biggest private Equity Investor in real estate. Before the deal, they oversaw 85 billion in real estate assets. Hillary clinton will make it official sunday and announce her candidacy for president of the United States with an online video. She will then head to iowa and new hampshire. She is forgoing the typical big announcement and is instead meeting with voters in small groups. The u. S. Senate is working on a bill that would give congress the authority to review and Iranian Nuclear deal. Such a bill would allow congress to block the Obama Administration from lifting sanctions on iran. There is former u. S. Ambassador to israel martin indic on when a deal could get done. If it continues to be the case that the both sides want a deal, it is more likely that they will get a deal. I suspect it will not be my the june deadline and it will drag but eventually there will be a deal. Cory that said, there are questions about leadership in iran once the deal. Both the ayatollah and the president have warned they will not accept a deal that does not lift all sanctions against iran. No key and may help sell its nokia may sell its maps business. They are attracting interest from other companies and private equity firms. Now to the league. Preorders have started for the apple watch. Apples first entirely new product since the ipad. Already they will have to wait many months with some additions unavailable to ship until june. There were lines that apple locations around the world including australia and japan but we did not see the great lines that we have become accustomed to in the past. Perhaps because you cannot buy the watch today. Apple is encouraging people to make appointments for those tryouts before the shipping date. One of the people that tried it out was our bloomberg reporter as well as the author of 1 windfall. I have long believed that the lines in front of apple were purely a pr gimmick, but the press, including us come intuitively show up every time they release a new product to use those lines to make it look like the products are popular and cannot manage the demand. Apple is going for a different kind of marketing strategy. Apple wants their customers to be happy into to feel like they have access to the product. You can go in the store and look and try them on and demo everything and then place your order online. You will not have any unhappy customers waited in line and go home emptyhanded. Cory as part of that image restructuring, price is an interesting part of this product. We have never seen a product i am thinking of macs with everything stuffed into it could never cost 17,000. Now they are selling a 17,000 gold watch. How are they using price to convey image . It is an interesting point. Apple is pioneering the merger of technology with fashion. One apple really understands is that there is a wide spectrum of taste. This is why they have gone from this Pricing Strategy, the range of 349 to 17,000 in which i think is a mistake and a detriment to the future of the watch. Cory why . First of all, we know apple suffers from the curse of awesomeness. The initial reviews have been good and encouraging but at the end of the day, we know apple will come up with a bigger and better version probably within a year if you look at the cycle of the new phone. The big question is forget about 70,000, are they going to be spending even 1000 for a watch which is, in essence, disposable . In one year, it will look a little outdated and technology will be inferior. So its a the question and this is further compounded by the fact that we upgrade our iphones all the time but that is because they are subsidized by carriers and you will not have that subsidy right now. So the big question with this Pricing Strategy is, are people going to say, this is cool, i went to the store and saw it but then are they going to sit back and say, should i buy it now or in a year . That is the problem they are facing with the strategy. Cory i dont know anyone that knows more about pricing than you, rafi, but, stephen, what do you think . It is a true luxury product. There is no feature upgrade and going for the 17,000 apple watch edition over going for the 600 one. There are a few upgrades in the glass and the case over the sport, but even within the addition the difference in price between the sport than and the leather with a magnetic clasp is 7,000. Even brands like rolex and omega are not charging 7,000 for a leather band with a gold clasp. It is great there are a lot of people out there looking at the much and everything but we have to remember apple is the Largest Company in the world with 183 billion worth of revenue. You need something bigger than sort of diehards and deep pocket people buying the in the first version, to really get the watch going and be the next Growth Engine of apple. From a pricing standpoint i think they need to focus more on the mass market instead of the highend 17,000 watch. Cory that is my point. I dont think they are focused on the 17,000 watch. I think the 17,000 watch yes, there is demand for it apparently, but i think it is a gimmick. It is a way to say, this thing is really cool, but i dont think anyone thinks that they will sell 51 of their watches of the 17,000 model. It is an image leader. The same reason why they bought ads in vodue instead of vogue instead of somewhere else. You can go and buy a polo suit for 5000. To help them sell shirts. First of all, we have to remember that suit is timeless so to speak, versus a new apple watch which, in the year is somewhat disposable. That is a big difference. Second, and most importantly they should really be focusing on the mass market. It is great to have a 17,000 watch and we are talking about it a lot, but i would narrow the range i would have gone down to 249 and up to 2000, and even offered a Monthly Payment plan to make misting of it being disposable a little easier. One other point that i would have done i would have bundled this with the iphone 6. Most of the six sales are done. It would be a nice counter to this galaxy released today to also come out and say we have this new apple watch and we are bundling it with the iphone. Cory stephen, what do you think the role the highend watch does to pull consumers to this product line . Stephen i think it is a marketing tool. I agree with rafi it will not be their biggest seller, but they are using it as a way to get exposure. When you have people like phare ll wearing it on tv, you have these public figures wearing them, it gets exposure for the watch in general. Kind of a trendy fashion item. They need this to become a massmarketing that everybody wants and feels they need to have if it is going to move the needle at all for apple. Cory i also think demand is so important because you have all these companies writing apps for the products. Even bloomberg is writing apps for the product. We want to see what the use case is. Are you saying the high price watch will prevent that from happening . I dont really understand how seeing pharrell having a 17,000 award will affect the decision of someone buying the 349 model and it is a misuse of price in a marketing strategy. Cory rafi, stephen, thank you. Great to have you on. The powers apple pay, next. And coming up, we will talk about tech with the cast of game of thrones. We will also be talking about the future of education. Cory im cory johnson. This is bloomberg west. How the apple watch could be a major player in payment. And we will speak to the cast of game of thrones about tech. First, a check of your Bloomberg Top headlines. Goldman sachs is giving Lloyd Blankfein a longterm compensation, 7 million in bonuses to be paid out over eight years. The new bonus brings his total cops to 31 million last year making him the highestpaid u. S. Bank ceo. China started using a new tool to disrupt access to foreign websites. Researchers at the university of toronto say the deployment of a new system represents a significant escalation of the Chinese Government possibly firewall of china. This one is nicknamed great canon, and was used in a recent attack. Amazon gets approval to test on delivery drones. The faa has given them a waiver for flights as far as 400 feet off the ground and as fast as 100 miles per hour. Earlier approvals work for no use because it applied for specific drones which amazon no longer uses. Imagine making all your payments with the flick of your wrist. Making it easier to use apple pay is one of the main features with the apple watch, which is now available for preorder. Lets take a deeper look at apple pay. One of their big partners, first data, handle nearly half of their debit and credit Card Transactions in the u. S. Here is the ceo and president of the company. It is crazy, 40yearold company, 6 million businesses as our clients and we are the indefensible indispensable component in the payment space. I dont know why people dont know is better, but over the past few years, our job has to move away from that anonymity and bring it in prominence to silicon valley, financial systems, as well as the world. Cory one of the biggest things in your business, your ability to get the money from the banks to the from the consumer to the bank to the merchant, controlling the process and behind the scenes. This is waterfront property. This is what we refer to it. We happen to be there. We issue 800 million cards, we have 4000 banks as customers merchants that are dependent on the authorizations of those transactions to the security and trust that goes with that. And the settlement and payments that go with it. We are the next is in the middle of the activity. Cory consumers are starting to see some of the innovations going on in the industry and i dont think they have any idea of what they are about to see. In october, there is a change in the law. Merchants that dont accept the cards with a chip in it will be liable on there and end for fraud and theft. That means we will have a huge up sale of pointofsale systems throughout the country. Exactly right. In october 2015, the liability is driving large and Small Businesses to rethink things. They need to reterminalize. In most technology curves, you need to move to the forefront rather than catching up to the current thing. Very common in europe, you did a credit card into a terminal, the chip will be read and that will stop counterfeiting and fraud. People also moving to encryption and tokenization. At first data, we build a product line from a pointofsale terminal all the way down to a dongle to provide that capability and in the overall capability of business. Cory talk about apple pay and how important that is. Tim cook was boasting that two thirds of all transactions were done with apple pay in the First Quarter. They see the total volumes more than we do, but apple pay has been one of the few things that i can remember in history where the improvement and security interest for the commerce and community experience. You do not usually see those things at the same time. Cory so when the security gets better the customer expense doesnt. In this case, every transaction is completely encrypted and tokenized, which makes it one of the most secure Digital Payments in the industry. Any issues that have been written about as it relates to Security Issues are much more about the registration process and the upfront card fees, but the actual transaction itself is as secure as it can get. Cory rather than every transaction being connected through the system as it moves to the bank, being connected to the consumer, it all becomes a token, completely anonymous transaction. That token cannot be connected to accept for the person doing the authorization. Or reused. There is nothing ever in clear text. Cory does this mean that you will make more money . We will make more money. Our customers will make more money if we make commerce secure. Safe, trusted commerce will increase the drive. Casual move to noncash methods. I think the Consumer Experiences will get better and better. We bought companies in the loyalty space, give, and even pointofsale. We are seeing the uptake significantly across the board because people are making the leap to not only drive secure transaction but build in consumer experience, for loyalty, Business Intelligence and forget thinking ability. Cory you have a long history of working on wall street trading systems. Trading system do a lot of things but easeofuse is not what they are known for. How does that translate to what youre doing at first data working with small and medium businesses who wants to go see . The idea is High Frequency low latency capabilities. Moving through the transaction as quick as possible. Build Good Strategies to make sure fraud and security are out of that system. It is the same with payments. Reduce fraud, improve the safety of the transaction splitsecond capability for optimization. Along the way, build a series of capabilities and enhancements. In this case let businesses grow. Cory the first data president. Up next, game of thrones and technology. They are not oxymorons. We will ask the actors what their characters would do with new technology. Cory this is bloomberg west. Im cory johnson. A big day for hbo launching Service ProvidingService Without a cable subtraction. We want our subscriber to say over the course of the month this is more than worth it. If we provide all kinds of flexibility for how you get that Service Going forward, we think this is multilateral. It is not binary. Either you are streaming service or you are locked into an old ecosystem. Cory you can catch the full interview on charlie rose tonight. New streaming service and game of thrones coming back with a new season this week. I caught up with the actors ahead of the premier and asked what their characters would do if they had access to high tech smartphones game of thrones in the land of. This is a funny thing. It took two episodes to get to kings landing. Now we have four seasons tried to get back again. Maybe she could do it with a map. Maybe a relaxing game would be good. Something with cute characters or something may soften him somewhat. Cory is angry birds to o angry . Definitely. He would not know how to use an iphone. He is not that chart. Probably will listen to some slow dance or power balance. I think she would die. I would probably reverse it and he would check out the makeup. I dont think he would get along with it. I think he would break it. Any kind of gps would have been helpful. I still get confused when i look at the maps and think, where am i . If i could just in point, pinpoint, that would be great. She desperately need some loving. Cory this is bloomberg west, where we focus on innovation technology, and the future of business. President obama spoke to roll caster over the phone to patch up a medic ties. There is a chance of a informal meeting. Secretary of state john kerry met with his cuban counterpart bernard rodriguez. In country after country, the people of the americas have strengthened their democracy and taken steps to ensure the fundamental freedoms of their citizens. Cory the state department called the meeting lengthy and very constructive. Hillary clinton makes it official on sunday, she is running for president. She will make the announcement on video before heading to iowa. Clinton enters the race as an unprecedented front runner facing little to titian for the democratic nomination. Chinas Central Bank Pumps 62 billion dollars worth of loans to banks in the First Quarter of the year in an effort to boost the economy. Last year china had its weakest full year of Economic Growth in more than 20 years. Richard that president jeffrey lacquers as he is still in favor of raising Interest Rate in june. He said today that he thinks recent soft figures in the economy will only be temporary. Last month policymakers were split on the beginning of rising of rates. One of new york citys most expensive home purchases ever. A group of investors including bill ackman paid 91. 5 million for a duplex penthouse at 157 tower manhattan. It is a luxury sky stripper overlooking central park west. Bill ackman told the New York Times that it was the mona lisa of apartments. Why did linkedin spend 1. 5 billion on the Online Education site lynda. Com . Who better to ask in the linkedin ceo jeff weiner. It is an Enterprise Business and a consumer business with a seduction model. It works for individuals, companies that want to invest in their employee basis. A big portion of our Current Customer base is universities administrators professors and the students of those universities. It is a broad crosssection of folks and is increasingly international as well. Lynda. Com is currently producing content in english, german french, spanish, and japanese. We are excited about expanding our global footprint. Cory you give them helpful guidance about what the business is doing. Growing at 20 clip. About a third of that is a corporate business. Do you see the corporate aspect of this becoming a bigger aspect of the lynda. Com business because it will be matched with your sales team . It is growing faster than the consumer piece today but that is often the case with smaller bases. There are strong synergies with our platform in both segments with regard to individual members, we think it aligns well with our seduction model and we are looking forward to a number of different point of integration. With regard to the Enterprise Business, we have thousands of customers a Global Sales Force with regards to our