>> live from pier 3 in san francisco, welcome to "bloomberg west," where we cover innovation, technology, and the future of business. >> >> welcome back to "bloomberg west." i'm emily chang. i'm emily chang. first, check of your bloomberg top headlines. coalition airstrikes has stopped apple is looking at another bond sale, and holding calls with reason advances in the town of investors today. co-bonnie. this according to a person this after kurdish fighters familiar with the matter saying joined the battle. goldman sachs and deutsche bank the secretary of state talked have been organized to handle about the progress to rock is it. making. -- iraq is making. why is apple doing this, when the noise have so much cash -- >> the iraqis have chosen a new when they already have so much government, and the new cash? government is working diligently

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 state's 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. that's money they have returned ordinance unconstitutional, and back to shareholders. said unfairly benefited rival airbnb. the ordinance requires residents it's 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 it's 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 -- aren't shying away. the mojave desert last week. signs are increasingly pointing the ceo of one payment, and, to human pilot error. coming up. here's richard branson, speaking >> it's 26 minutes after the on bloomberg's in the loop. hour, which means bloomberg is on the markets. whohe ntsb are the people causes, andbout the i mia saini, let's 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 would've 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 reverser's, and you land on a runway, you will feel 'se thrust as the airplane thrust reverser's 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 aren't 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. i'm emily chang. a catalystas been investigation turns up blame on the one person that can't 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 don't 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. it's 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 didn'td 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. >> it's 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, i'm 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 doesn't 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, it's 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 it's 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 man-made, man controlled flights, or >> that's 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 let's make it happen. they did, and now over the next appropriately. two to three years, what we will an automatic system doesn't 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 apple's 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. wouldn't have been flying with this engine in the first place. we follow along with google's 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 branson's dream really does come true? upstage apple?

>> that's 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, google's 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? let's 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 it's 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 don't 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 don't 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, it's what level of his doing. apple and google will make the same moves. >> you believe what -- that's what apple's endgame is? >> don't 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 up's chief ninja. campaign showed how critical technology is to winning elections. republicans have their own high-tech programs in place.

we get a sneak peak at the gop's technology guide, next. ♪ >> i'm 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. it's 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 galactic's 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 earth's 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 galactic's 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 allen's 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 wasn't what nasa was doing. >> i'm 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 weren't 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 hadn't anticipated actually >> big-name 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 think not. >> we appreciate your support, think you so much. there is inherent risk in doing these things.

venture, -- every we are probably getting a bit annoying towards people. that is to be expected. great venture, where you look to we have to make sure everyone gets out of votes. everyone says that a like phone open up a new frontier, there will be some hazards. calls, they don't like doors, but it works. the risk is inherent. you take tight related risks, >> he is a 21-year-old volunteer and you do it so that the working for the north carolina -- in thiseration republican party. a state with a deadlocked senate race between kay hagan and tom tillis. case, a spacecraft, is much less risky. that wast pilots knew they have no idea how people get in their door. >> he's getting supporters to what was involved. you do it in a calculated way. the polls. he knocks on doors. you do it in a way that a business that is operable and he makes phone calls. safe can be run. he is an everyday test case this one tragedy is not going to change that. we are going to learn from it, for whether the republican party's major investment in the technology this cycle is we are going to make the proper cost corrections that will excellent working. >> we have opened up a number of benefit not just virgin galactic, but the industry at sources we're using to collect large. data. it is more important how we act on it. >> it has to change it on some level. how quickly we can put that into it was a perception that this the hands of the field program. would be like a tourist >> by all accounts, republicans lost in the data wars. spaceflight. this time, there is hope their think of a virgin america flight. on some level, there has to be a change in the perception of the tech revamp may payoff.

a without calling or getting consumer on the adjustable market here. >> i think it is not a complete paper logbook, you can just go analog to compare it to as you please. passenger flights. it just makes things so much it is more like adventure easier. >> a paper walk book was the old tourism. way of doing it. ande are other forms of it, a physical book where manual -- information had to be manually there are risks. people climb mountains, take updated. rides and submarines, do other it shows our location by gps, things that have more inherent risk to it. it's not like just going to and as we walked on the street, work. you go over what you're going to risks -- whense say and how you were going to say it. >> each visit produces new data. you take them, they need to be done in an acceptable fashion. that informs decision-making all is completelyhat the way back to the rnc headquarters. once updated, the voter is taking out of the latest canvassing list. understood by the people who are >> whatever the answer, you will taking those risks. >> i don't know a few have done put that in. this, but i took the zero g flights that are meant to >> it takes the name off the list. they have already voted. simulate weightlessness. i took that flight about year >> with democrats investing ago. there have never been any crashers there. blast, butn to be a heavily in their own ground it was that kind of thing -- it game, this investment may make turns out it brings up a great

deal of fear. the difference. there is a tried-and-true way to find out. >> this will be judged by how we do with the polls. i have to imagine this is going to be different people now. >> phil mattingly, bloomberg, asheville, north carolina. will people be going after refunds? >> who will win a north carolina? will the size of this business change with this event from last week? as i understand it, from a which party will control the senate come january? we have an election on lighter statement that sir richard made, not only have people not asked for their money back, but since -- all nighter only on bloomberg the incident, they have had an additional two people sign up to television. at the top of the hour, mark take the flight as a vote of confidence. crumpton is in new york with a preview. >> we continue that theme, and certainly, things are going to have more on tomorrow's midterm be delayed. elections. time is needed to understand balance of power in congress what happened, and make the appropriate course corrections. could shift dramatically. if republicans do win control of but virgin galactic will the senate, what does that mean persevere. for president obama's legislative agenda during his last two years in office? ultimately, it will be safe for passenger flights. how will wall street responded? we also had back out to las one hopes that the sacrifice that was made by the test pilot vegas for bloomberg's continuing who died during this tragic coverage of the money 2020 conference, and a look at a future of money. accident will not be in vain.

the hour.the top of that we will stand on his emily, back to you. shoulders, as it were, as the company goes forward. >> looking forward to it. thank you. >> wellpoint. these days you can do virtually bob weiss, the xprize chairman. anything on your phone, from we appreciate your time. trading stocks to renewing a business license. so why can't you vote on your cori, thank you. phone? apple may be looking to raise we look at the risks of bringing billions of dollars. voting online, next. ♪ it has some asking why. that's when "bloomberg west," returns. ♪

>> welcome back to "bloomberg west." i'm cory johnson. why can't you vote for mobile phones come over your desktop? voterse question some are asking. mcafee has teamed up with the atlantic council to release a

new report on the risks and rewards of online voting. analyst joins us now via skype. our lives are so wonderfully automated, with smart phones and laptops and tablets. and then you go to the voting booth, and you go through this antiquated system where there is filling out boxes, or ivan -- either clicking the buttons. what's the potential of online voting? >> it's huge. one of the challenges they see today is the fact that if it becomes really popular, when there are midterm elections are presidential elections, and he gets a lot of hype. but after the hype cycle fades away, the incentive for doing this goes with it. the potential as they, we see to drive this is an on going -- issue.

that thisre reasons hasn't happened, that are technologically-based? >> i think the technology exists to make this doable. aery device you buy today has biometric member. we have better encryption technology. we have better means of making sure that that transaction can take place. i believe the technology exist, just a matter of getting the electoral boards to embrace it in a more meaningful way. >> how much cheaper would this be? >> i don't have hard numbers. but it would open up the window for new voters. younger voters who are very tech elderly think about the and infirm that would open up the opportunity for them to

vote. my son is a first lieutenant in the marine corps. he is stationed in spain right now. i bet he is not going to be able to vote, just because of the complexity of doing voting from remote locations. >> as an american, i'm embarrassed that countries like estonia are leading the way here. what other countries have adopted online voting like this? >> we have seen success in companies like switzerland. india it uses a lot of e-voting technology. they havet dated, but nighter thousand machines deployed around india. it helps when they have a high degree of illiteracy. it helps as part of the voting process to allow e-voting machines in india. there are been successes in places like canada, india, estonia, switzerland, brazil had some success, australia had some success. we are a late bloomer when it comes to some of our online voting. >> late bloomer makes us sound like there is blooming happening.

who would be voting more of the voting were allowed in this kind of way? who is being disenfranchised by the lack of online voting? >> that is a great question. is -- big egg factors factors is that if i'm an elected official, does my party benefit by having online voting? if you think about the fact that more elderly could vote, younger voters could vote, who best benefits from that? is it part of my constituency? part of my party that would most benefit to help drive this going forward? mythd i suggest that the of voter fraud -- the people who don't want more people to vote are behind this effort to keep this technology away from people who would vote if it were easier to do so? >> i don't believe that is the case. if you think about the electoral tocess, the intent is

provide everyone with the ability to vote and give them the means to vote. >> i have to push back on you a little there. there are repeated cases across this country where there are new laws, this election, this week, being connected to keep people from voting. >> agreed. there has been some legislation which has disadvantaged some segments of the population. but i don't know if that same statement would be disadvantaged by online voting, and opening up these means. help stampwas to down fraudulent voting. they were people casting multiple ballots, or having people who weren't alive anymore having the opportunity to vote. clear, does not happen in any statistical significance whatsoever. >> agreed. that is well documented. , very well documented outcome that the number of people who

are doing that are very small. again, does online offer the potential to allow for more people to vote who are being disadvantaged as -- disenfranchised? with this excludable who are poor, who don't having this is the first language, and so on? >> it depends on how is publicized. if you are trying to get someone who doesn't have a smart phone and able to online vote. if you could send them to a folding place that had e-voting machines, that would allow that. it depends on how you educate consumers on the historical pull process. -- poll process. >> i wonder if the nature of an election that has to be right on like,y doesn't allow for

healthcare.gov, a flawed rollout, but they have had time to get it right. that's not the case in an election. >> good point. this happens every couple of years. the fact that it is so infrequent by comparison, that would introduce some level of challenges. one of the big issues is getting consumers comfortable with voting, using online devices. when they do it every couple of years, it's different but when you go in and engage health care online, for example. >> gary davis, thank you very much. watch them in their element tomorrow night, the election all night are starting at 7:00 in the east coast, 4:00 on the west coast. this is not to be missed on bloomberg tv tomorrow. we have the one number that will tell as a whole lot. we have bryan womack. i have no idea what you have for me.

>> the number is 29. >> 29. >> yes. >> better than 28. [laughter] >> that is the number of countries around the world that have access to google blue trends -- flu trends. >> what is that? >> basically, google looks at web searches around the world and says where is flu actually popping up based on the number of searches. what is interesting is that on friday, google announced a revamp. they will now be using all of this cooler information. they will start using older stuff. >> epidemiology live in a your computer. bryan womack, thank you. on yourcheck us out phone, tablet, bloomberg radio. we have more "bloomberg west,"

tomorrow. ♪

>> i'm mark crumpton. this is "bottom line," the intersection of business and economics with a mainstream perspective. to viewers here in the united states, and those joining us from around the world, welcome. we have full coverage of stocks and stories making headlines on this monday. julie hyman tracks equities forest in today's on the markets update. we will have a reporter roundtable just one day before the midterm elections. e