Low,terest rates are so to help resuscitate the iraqi army itself, to put new generals and by borrowing this money, they are using it to pay for and, to reconstitute it, and to this Buyback Program to return money to shareholders, people help marshall coalition that has let carl icahn. This is a way they are finding come together to help them. That. The islamic states assault against the town has gone on for how much of the going to raise . About a month. They did some thing similar last year, that was the biggest Debt Offering in history, site called the upwards of 10 billion. Thats money they have returned ordinance unconstitutional, and back to shareholders. Said unfairly benefited rival airbnb. The ordinance requires residents its a way for them to take advantage of low interest rates, to live in their homes at least nine months a year to legally rent them out. Keep their shareholders happy, isnch advertising giant and still not cutting into their reserves. L pushing deeper into digital ads after its failed merger with is that what they will be using this money for his . As omnicom. Digitald to buy a well . They said they would be doing this. They did some of it in the u. S. , publicist. And talked about it how they jewel,lled a crown might do it in europe as well. If they were to raise this money, that would be a first. Allowing clients to achieve digital transformation. New clues about when the apple watch what the market. Microsoft has done the same thing as well. Apple reportedly said that the will we see more of this over the next couple of years . Watch would be launched in the i think while the debt market spring of next year. Is this cheap, you will see more at a september product unveiling, apple said the watch was coming in early 2015. And more of this. Now, to our lead. Interest rates are very low. It makes a lot of sense for companies to do this. Adam satariano, thank you so was it a mechanical problem, pilot error, Something Else . Much. Investigators are trying to steal all the figure out what caused a virgin headlines. But the competitors are china way. The ceo of one Payments Company galactic spacecraft to crash in arent shying away. The Mojave Desert last week. Signs are increasingly pointing the ceo of one payment, and, to human pilot error. Coming up. Heres Richard Branson, speaking its 26 minutes after the on bloombergs in the loop. Hour, which means bloomberg is on the markets. Whohe ntsb are the people causes, andbout the i mia saini, lets get you caught up on where stocks are trading. U. S. Stocks a been chopped down. We are seeing gains across the engage in a thorough board. The s p is up about a quarter of investigation. That aey indicated was 1 . Added tog data to date evidence that the u. S. Can sustain a withdrawal in lever had been pressed a few stimulus. The factor increase increase to seconds sooner than it should have been. 59 in october. We believe it up to the ntsb to we are on the markets again in 30 minutes. Decide whether that had any stay right there for bloomberg west. Effect, and whether that was the cause. The crash killed one pilot and injured another. Branson said he is confident there is no fundamental flaw with the spacecraft, and he vows to push ahead in the private space race. Anding me as cory johnson, a former astronaut and commander of the International Space station. Literally, i will start with you. We spoke on friday. Now that we have more information, what do you think happened . It seems like we have a bit more information. The ntsb has made an official announcement. They found a fuel tank in a motor largely intact. That indicates those elements did not explode. And then they have Cockpit Video showing the copilot unlocking the feathering device. He moved that lever apparently a few seconds early, but it was only to unlock the feathering device, not to engage it. A separate command wouldve had to been sent him a or a malfunction of some kind to cause the feathering device to activate, which apparently, it did. The ntsb is telling us that that is what happened. Loadsat cause aerodynamic to be high and break the vehicle apart. If you not unlike Airline Accidents that happened over the year, where a thrust reverser had accidentally deployed in flight. The thrust reversers, and you land on a runway, you will feel se thrust as the airplane thrust reversers engage in the sauce goes the other way. Not exactly the same thing, but similar. I want to bring in denver hirschman deborah hirschman. Richard branson explained how much truck these pilots but in the hands of humans, not just themselves, but also humans on the ground. Take a listen to this from Sir Richard Branson earlier today. We have to feel comfortable and safe about taking people up. Is why test pilots put their lives in the line to see if there is any little thing that the 400 engineers down on earth have missed. Trust in man lest and more and technology . Why arent more of these features more automated . In any new project, you are going to have test the boundaries. You are going to have to test in aviation, the edges of the envelope. This means taking the aircraft not just having models or predictions, but actually seeing how it performs. It will be testing it out in conditions that they may not likely face in service, but they want to test the edges. You want to make sure you know how that aircraft will perform. Right to am i right you are watching bloomberg west, where we focus on to be suspicious that the innovation, technology, and the future of business. Im emily chang. A catalystas been investigation turns up blame on the one person that cant defend for consumers and retailers to themselves . Begin embracing global payments. We later find out that there is more systemic product there are many competing services that are hoping to get a piece of that pie. Problems. I think the ntsb is being Erik Schatzker has been looking at the future of this industry, objective in this. And joins us now from the money they want to get to the bottom of it. I dont think they are trying to 2020 conference in las vegas. Do anything like that. The ntsb announced emily, thank you. Innovation, technology, and the future of business. They have coffee video showing the copilot moving that lever a little early. Its all happening here at money as i said, there had to be a 2020. I am with stuff free batch of second failure. Just unlocking the feathering level up. Device, to my understanding, would not have caused it to you call yourself the chief deploy on its own. Ninja . And didntd out, i think they are being objective on this. You imaginewhat do want to compete as a ceo. Tell us about your investigators are doing now, and how is this investigation different from a traditional company. Its mainly for the aircraft . Restaurant industry, giving them the ntsb does have protocols and procedures, they are time an easy way for customers to pay with a phone. For 14,000 users. Tested. They have used them for decades. Apple pay, im not a they have investigated test customer. Flight failures that have i understand how your product resulted in fatalities. Works. Validates what you the will be doing some of have been trying to do, and exact same things they have done impact, you are part of apple in the past. Pay. They are going to be working doesnt it also threaten you are hard to interview anybody who doing . Was directly involved in the it is a big shift. Program. But for us, its a very good understand the procedures and shift. Protocol, and also, some of the we are pushing consumers to pay pressures that might be there. I think it is important to say with your phone at your favorite restaurant, and you should it is so early, there is so much that is not known. Automatically accrue rewards. Apple pay is the Biggest Company there are going to be a lot of different pieces of information that will come out. I know its hard to hold in the world saying this is how payments are going to play out. Judgment, but i think the facts but yourconsumers, will speak for themselves eventually. You just need to give them time loyalty cards, your starbucks to develop them all. Card experience right into that wall and. , emily asked about man you will have a consumer a ton of consumer attention. You can come play, as long as versus machine, and who should be in control. You come play at our apple wallet. It takes me back to reading the for your company, as long as right stuff, check it are in the you choose to use level up x 15 rocket planes. Whetherreat debate instead of a credit card, in the past book. These should be manmade, man controlled flights, or thats the biggest and most controlled by computers. Exciting thing that apple did. What we will always be with this technology, they have talking about when their given the upper hand to the accidents like this in the merchants, National Credit card expiration of space . Companies. Yes, your credit card are in exploration of space . Apple pay by default. I think the right answer, from 30an tonight you most violets would agree, is leave yoursaying both. You want to have automatic credit card, pay with a reward modes, even on the space card program, it would better for you. You say that apple pay has brought change to the payments shuttle, the nominal mode was auto until the actual landing. Industry. What kind of change . What it means is that mobile to the last down is finally going to happen. Seconds of flight, and the actual landing, we actually felt more comfortable having a human hand on the stick to go through apple is undoubtedly the most the landing. Influential tech company in the world. Everyone was waiting for apple humans are so adaptable. We are trainable. We can react quickly and to say lets make it happen. They did, and now over the next appropriately. Two to three years, what we will an automatic system doesnt have see is everyone rushing to make judgment. You want to add humans in the mobile payments happen in a way that is good for them. Loop for judgment and being able to override and take over wanting ever want to use manually when they think it is appropriate. Coming in to dock at the their wallet. Wells will play in the game International Space station, we were on the autopilot. On apples level . We had an incident where the google. Autopilot failed and started they have had Google Wallet out for some time. Without much uptake. Speeding us up is that of slowing us down. We had to take manual troll in many ways, Google Wallet and control. Apple pay are similar. We might have crashed into the station. Google through their ventures some have said these pilots arm is one of our investors. Wouldnt have been flying with this engine in the first place. We follow along with googles some of said that richard moves for quite some time. For spaceenthusiasm i think you will see Google Wallet get a lot of lift now that apple pay has said mobile is far beyond the capabilities of the technology. Payments are cool. And reduce or seven able to do this for a while. Deborah, how big of a setback is what might google do . This for the private space race . How much of a delay could we see you are a keen observer, and until Richard Branson stream tole what will google do really does come true . Richard bransons dream really does come true . Upstage apple . Thats an answer that they its explicit and tight can give. Integration of loyalty and rewards. They are given with difficult apple is a hardware come play, googles advertising company. Situations, having to do with the loss of the crew. These were their friends, people i imagine they will tie in rewards more tightly to the paint experience. That everyone worked with, they were respected and they were was to stop other companies looked up to. Trying to solve the merchant they will have to get through then they willd side of the Electronics Payments have to make decisions about how they move on with the program, and it what pace and what speed. Problem, possibly doing it from a position of advantage . Lets say the manufacturer the i think that many of the terminals. Failures that we have seen in the past, when we chart New Territory are really part of the or they develop the software that goes into those terminals. Process. Unfortunately, when you are they could do what you are doing. Doing something risky, when you you are correct it is there a are doing some the on the edge, phone, those coming companies. Something that is new, there its a super open and will always be areas that are competitive space. Risky. What the french yates on his i think there is no other way to three key points. Talk about when you do something new. You see is partnering with endeavors, when you do sprint to lower interchange. Have new products and technology, the products fail. Analytics and data for the merchant. And tied in loyalty and rewards. Or you dont experience i love the idea of lowered reliability. When you have a human endeavor, interchange. There are people involved in of that means lower fees for a failure, it is much more catastrophic like in the situation. Merchants, and savings for me is former ntsb chairwoman the consumer. But why the carrier build . Deborah hersman, and former onlye my phone bill International Space station commander leroy chiao, to the slightly less than i hate my cable bill. Foremost experts in the field. The last thing i want to see my thank you for weighing in today. Phone bill are more charges they dont understand. Won the x prize the way we are rolling it out is they make the conscious decision to use it. For innovation. What is important about carrier how will this crash affects the future of space travel . Billing is the option alley. More options you have, the more we discussed that with the president of x prize, yet next. Options you can introduce, the lower the exchange will be. The less you pay for your morning coffee. Right now we have few options but to use a credit card. Your company has an array with Credit Card Companies as well. You were able to chip away at fees. At the end of the day, we are prisoners of the credit card company. What is the potential for a company like apple or google to be the trojan horse . Intermediates the Credit Card Companies by working directly with the consumer, the merchant, and the bank . Is exactly what you are seeing happening now. It has started. The mobileayments to phone, essentially a supercomputer in our pop but pocket, its what level of his doing. Apple and google will make the same moves. You believe what thats what apples endgame is . Dont want to be the payment at work. They make money off selling devices. Apple is getting 15 basis points off each transaction. If everymerican american used apple pay, apple would make 3 billion a year. They are so big, that they want to enable the ecosystem and allow merchants and players like make the merchant and Consumer Experience better. Hopefully make it so much better that people buy it. You made a point earlier google is an ever testing company. Does google think about it differently . Revenue stream is advertising. Loyalty, Customer Engagement is a form of advertising. That will probably be there a mill. Seth, thank you so much. Emily, he calls himself the chief and engine. Chief ninja. Some fascinating insight from someone who understands the payment industry from a mobile platform. Erik schatzker with level ups chief ninja. Campaign showed how Critical Technology is to winning elections. Republicans have their own hightech programs in place. We get a sneak peak at the gops technology guide, next. Im emily chang. This is bloomberg west. Virgin galactic spaceship two was based on spaceshipone, where a rocket was lifted by an aircraft. Award ated a prize decade ago to the tune of 10 million. Cory johnson is in the newsroom with more. X prize is a fascinating thing. A public competition to encourage different kinds of technological the relevant. It has drawn big names. There new chairman, bob weiss. Its an amazing thing with the x prize has rocked. Wraught. Was the notion bring tourists to space or more than that . Than that. E certainly that is at the core of Virgin Galactics business. One must keep in mind we are trying to open a new frontier. Reducing the cost and risk of going to space is part of that. Wethe x prize foundation, believe that a lot of the earths issues can be solved by proper use of space. We believe in the closed system, when those consumers are gone, then we are in trouble. Space offers that potential. Virgin galactics efforts to spend to send individuals to space is part of that larger opening of a new frontier. I was out there in the desert 10 years ago when the x prize was one won. Paul allens money was behind it. The notion it was going to launch a new private space race seemed ridiculous, and yet here we are with elon musk and spacex. With jeff bezos and blue origin. With larry page inflammatory resources, and other companies out there without the big names behind them. Did you really envision the next prize would lead to that . X absolutely. Absolutely. Itn we formed the x prize, was with the specific goal of launching a new industry. There had been no efforts in this regard. Were certain Market Forces in place keeping it stuck. It wasnt what nasa was doing. Im emily chang. Thi we very specifically wanted to launch a new industry, and the this is bloomberg west. Xprize was a very visible election day is tomorrow, and demonstration that it was the question is can the possible. In fact, with the winning of the republicans regain the senate . Xprize, we did open up a new era they are redoubling on tech of spaceflight. Efforts. We werent sure what would happen. Originally we thought it would we headed to North Carolina, home to one of the countries be within a few years of the winning of the xprize. Tightest senate races. We hadnt anticipated actually bigname surrogates. Starting during the competition itself. Was that launch he should be ashamed. Tens of millions of dollars in campaign ads. Competition, can launch a new industry, can one crash like this bring that industry to its it may all come down to this knees . Guy. On his iphone. That is a good question. We t