Transcripts For BLOOMBERG Bloomberg West 20140718 : vimarsan

BLOOMBERG Bloomberg West July 18, 2014

Inside ukraine. We also know this is not the first time a plane has been shot down in Eastern Ukraine. The president also says there is no question russia has been lending support to the rebels and warns of more sanctions unless russia stopped training and arming them. He also calls for all parties to allow a fair investigation of the crash which the president says killed at least one known american citizen. Bloomberg correspondent peter cook joins us now from d. C. The president stopped short of blaming russia so far. He walked up to the line but did not cross it in his comments a short time ago, calling it an outrage and calling for an immediate ceasefire in the ukraine and calling for a credible International Investigation to get to the crash site, and for the evidence not to be tampered with in any way. He believes that russia bears some responsibility here and he put the onus on president putin to do more to deescalate the crisis, bring tensions down, saying he has the capability to do it. If mr. Putin makes a decision that we are not going to allow heavy armaments and the flow of fighters into ukraine across the ukrainianrussian border, then it will stop. The president pointing out that the United States at this point believe this was a missile fired from a Russian Missile system but not clear who had their hands on the trigger, exactly where it was launched from. The president made the suggestion that we might get those details over a period of time. 24 hours, 72 hours maybe, maybe a week or a month, but he certainly believes the details will come out. Should we expect the u. S. To ratchet up sanctions again, and how much pressure is therefore that . The president has made clear he is willing to take those steps if necessary. It is clear from his comments today, his message that this is a wakeup call for europe and the rest of the world, that he would like the european to take the lead. There has been a gap in terms of what the europeans has imposed in terms of sanctions and what the u. S. Has done. I think the u. S. Would like to see the europeans take the lead. Obviously, they suffered the biggest loss. More than 100 dutch and german citizens aboard this flight. The president would like to see the europeans take the lead on this but of course it is difficult because of the economic ties with russia. Hillery clinton said the same, that the europeans should take more responsibility, when she spoke with charlie rose. What about congress, what kind of pressure from congress is the resident facing . He is facing some criticism from republicans who say that he shouldve been more aggressive and imposing tougher sanctions. There are now some that are calling for the president to provide more military support to the Ukrainian Government. Not boot on the ground but maybe some Technical Expertise going forward. It is not clear that that push from republicans in congress will get the president to move all that much. He wants more facts on the ground before the u. S. Makes any change in their position, certainly with regard to military support. How much can the fbi and ntsb do in this investigation . We spoke with former chair Deborah Hearst men, and she said there are protocols for this even though it is in a foreign country, in a war zone. Several rules and protocols need to be followed. We got word that he ntsb and fbi are both sending teams to the crash site. Its an open question. Certainly, some of the best respected accident investigators in the world today, but this is a war zone, questions about whether the evidence has been tampered with, who is in possession of the black boxes. Certainly they can be helped helpful, but at the end of the day we pretty much know why , the plane came down. It came down from a missile. Not sure what the investigators will be able to tell us. President putin of russia has his own theories about what happened and all seem to be but the obvious theory. How does that play into this situation . This is president putin today, again making the claim that he is a peacemaker, that he is the one calling for all of the science to deescalate the sides to deescalate crisis, that the Ukrainian Government need to do more to deescalate the crisis, and that the responsibility is over the government for loving this to allowing this to happen on ukrainian soil. Its an argument that he has continued to make during this crisis. If the evidence points to at a minimum that this was a russian system given to the separatist, or perhaps the administration has not ruled out the possibility that russians directly aided in the actual execution of this missile strike from the ground. The president earlier emphasized the importance of having an objective investigation. Take a listen to what he had to say. We do not have time for propaganda or games. We need to know exactly what happened and Everybody Needs make sure that we are Holding Accountable those who committed this outrage. At this point, peter, how confident is the white house that we will get an objective investigation . I think they have real questions about it, which is why not only the president but his ambassador Samantha Power putting a line in the sand today that there needs to be a credible International Investigation on the ground, they need access to the crash site, which has already potentially been compromised, evidence perhaps tampered with. Questions about what that investigation will result in. At a minimum, certainly asking for the russians not to interfere. Questions about where those black boxes are going and who is in possession of them right now. Peter cook, thank you for the update. Coming up, we will speak with Ryan Chilcote in ukraine. He is on the ground in kiev. He spoke with the ukrainian Prime Minister. . Welcome back to bloomberg west. Im emily chang. Back to our top story, the crashing of malaysian flight 17. The plane was last tracks just over the Ukrainian Border in the northwestern part of the country according to flight aware a , Global Data Services company has offered some data about the flight. Cory johnson is with me in the studio. Joining me from houston is the ceo of flightaware. As soon as this happened, we were looking at the l2 at the time, altitude at the time that it disappeared. Are you working with investigators, are they asking you for information . We have had a lot of requests for this information and some of it comes from governments abroad and in the u. S. Operating these facilities around the world but we also operate ground stations which reinstall all over the we install all over the world with antennas to receive data directly from aircraft. Whenever there is any accident, when we can provide data, we get it out there. On the website you can see typically three or four positions a minute that allows us to draw a smooth map that shows an accurate flight track. However, sometimes we have up to three or four positions a second that is not available on the website. When people participating in any kind of analysis or investigation or research that requires the data, we make it available to them. In this case, the flight was largely routine so we suddenly stop receiving the data. On that note, some have been looking at your maps, saying that maybe mh17 took a different route than planned, took a turn over poland that took it over Eastern Ukraine when originally it was supposed to fly over western ukraine and not the volatile area. We have looked a lot at the flights operated by malaysia and other carriers. Certainly, there are changes every day is on the route to air Traffic Controllers in other countries want, certainly within ukraine as well. So they are connecting those waypoints to make a flight plan from their origin to destination. That changes even within a route that you have planned or have been cleared to fly, there are deviations that take that can take place. Whether that is due to the weather, other aircraft that the air Traffic Controllers are separating. It is not uncommon for an aircraft to deviate laterally or vertically from the flight i am. The filed flight plan. In the case of this flight, there were other commercial airlines that were within 100 miles, within 75 miles of that particular flight. So in this case, there may have been some deviation that is normal, but there were other aircraft in that area. I do not know that it is necessarily a case of a mistake made about the route, in so far as they were intending to fly around it and didnt. Clearly, this is just wrong place, wrong time. I think any other flight could have been a victim of this had they been in the wrong place at the wrong time. To that point, we can see the current flight, mh17, still using that flight number. As with other carriers, i wonder, is it ridiculous to look at the Business Aspect and fuel costs and the fact that they took a shorter route even though it put them in greater danger . Is fuel cost an issue . I think we may have lost him. Let me ask you again if you can hear me. Fuel costs. Is that an issue were still working on fixing that. Its an interesting issue because a lot of carriers have been avoiding the area. There is a nofly zone below 32,000 feet. This was 33,000 feet. There is a nofly zone and a common sense zone. I would be curious because he said flights can never veer off their path at any given time, but i would like to see historically, mh17, and how , often it veered off that path and went over Eastern Ukraine. Let me ask you then, dan, could fuel costs been a reason for them to take this route . No, i do not think that is something that airlines do. Fuel costs are the largest expense that airlines have and they are working to optimize their flight plans all the time both the lateral flight path as , well as climbs and dissents to descends to minimize cost. This is not a circumstance where airlines are weighing risk. There is no question safety is always the number one priority. Dispatchers who are generally the ones planning the flights, have a lot of authority to say this is the most direct route, but there is a thunderstorm that is predicted to be there. So we are going to send in hundreds of miles away. That is very typical. Dispatchers and pilots both have the authority to make adjustments to flight paths to ensure a safe outcome of the flight. Certainly, there were mistakes made, and it was probably a larger industry issue that this was not restricted airspace that airlines were deviating around, but it is very unlikely that the people planning this particular flight were aware of this conflict and decided to fly through it purely for a fuel savings. Have you looked at the flight path of mh17 over the last several days and months, and how different yesterdays flight path, or similar it was to that . We have looked at it and we see similar flight paths. We have some divergences due to airspace, particularly in europe, which is very complicated. There are a lot of changes in how air Traffic Controllers want flight to be routed through europe, incredibly dense airspace. Because this originated in northwest europe, it had to fly to a lot of european airspace, so it could have entered the ukrainian area at a lot of different points. That was the big impact that we saw, the point that it entered ukraine, and then we saw the similar flights day after day. Not just with malaysian airlines, but with other carriers as well. What does this mean for your business and for flightaware . The visibility you are getting now is greater. I first found your site from a guy in the cia. We were looking out the window of a plane and he whipped out your app. What does this do for your business, how does this change or growth and so on . We are in the business to help Aviation Companies and consumers, whether it is passengers or anyone. Certainly, this type of attention has raise the awareness from the standpoint of Airline Passengers tracking this flight or any other flight. We see it as an opportunity to leverage our technology and be data brokers. We are taking in this information from different governments and from our own sources and trying to convey that information to airlines so that they can make smarter decisions. Maybe that can involve restricted airspace, give people a better sense of what other airlines are doing on routing. If we can aggregate that information and display it in a way that is useful, we can be part of the solution for flight landing and ensuring that aircraft has what is the safest and most efficient route, not efficiently not only focusing on war zones, as it is a rare event, but in terms of the weather, turbulence, all can it in terms of volcanic ash issues. If you can aggregate all of this combined information, and then the industry can come together and collaborate by aggregating this information, we think we can provided to people so that they can make it or decisions from that. Dan baker of flightaware, thank you for bringing us your side of the story. Interesting to hear the work you are doing. With conflict escalating in gaza, how is israels Ground Invasion impacting the start of nations growing Tech Community . We spoke to one entrepreneur on the ground. . Welcome back to bloomberg west. For more on whats happening on the ground in the ukraine following the crash of malaysian flight 17, i want to bring in Ryan Chilcote who is with us from kiev. You just finished an interview with ukrainian Prime Minister. Whats the most important thing he had to say . A bit of a breakthrough on the ground at the crash site itself. That he focus right now, recovering the bodies of those 290 People Killed in the crash. The Prime Minister told me two hours ago they were finally able to work on an agreement with the rebels controlling that crash site, to allow them safe access into it and to allow observers from the security watchdog for europe in as well. This is not a normal crash site where you have a National Body of aviation experts working the scene, or even an interNational Body. Its in the middle of a giant war where people are fighting on all sides. Up until now, only the separatists have been there. They are in there looking for the black boxes. There have been discussion about whether they were ferreted off to russia by the rebels. He says he simply does not know right now. It is very grim stuff. 298 People Killed. Their bodies i hate to even describe it spread out over a 10 mile space. This plain was 33,000 feet in the air. They have now collected 181 of those bodies, so clearly they have a lot of work ahead of them. President obama talking about a ceasefire. What did you created Prime Minister have to say about that . The Prime Minister was a bit late to the interview, funny enough, because he was watching president obamas marks live, and i asked him about the idea of a ceasefire, which is something Angela Merkel is also talking about. He was pretty cool on the idea. He said we try to introduce a ceasefire a few weeks ago, the militants did not stop. He says he does not really see the point to it. No matter what, they will not introduce a unilateral ceasefire. It does not look like it is on the cards right now. What about funding . I understand the imf is in town, ukraine want more resources. Whats the latest on that . The imf has agreed to give ukraine 17 billion. They have given them one trench today and then they will be giving them another half. That will be over two years. Today things look ok so far in terms of ukraine meeting up to the expectations of the imf in terms of their commitments, but the imf did say ukraine will probably need more money because of the wars in the east. That is something the Prime Minister was also talking about, saying that he reckons this war will cost them 1 billion just in terms of increased military expenditures, he for the end of the year, and then more next year. That is not even taking into the fact that this is their industrial heartland where the fighting is going on. Basically the news from ukraine is, its great to have the 17 billion, but we will need more. Ryan chilcote on the phone from kiev, thank you so much or the work you are doing on the ground there. We will be right back with more bloomberg west. . It is 26 minutes past the hour which means Bloomberg Television is on the markets. Lets get you where stocks ended the day. It was a powerful rally across the board, the biggest rally since april on the s p. Overall helped by second quarters sales by google. They belong to nasdaq. The day really belonged to nasdaq. You are watching bloomberg west where we focus on technology and the future of his miss. I am emily chang. Another major global story we are following. Israels ground offensive into the gaza strip aimed at stopping missile attacks from hamas. Described by many as the startup nation israels Tech Committee , has a rich history of involvement. Driving some of the hottest tech companies. Cory johnson, editoratlarge, is still with us. And joining us from tel aviv, we have the founder of 8200. He served that she served as a lieutenant for years. Thank you for joining us. What is the atmosphere like in tel aviv right now . I am mother to three boys and it is not easy. They have been [inaudible] they are in Summer Vacation right now, home from school. The days have been intense and stressful. But part of the challenge we face is to keep things as usual and keep our lives and business and let our kids now this is something we have to face, hoping for a quieter end of summer. You hoped we would not get interacted because of the sirens interrupted b

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