>> i'm mark crumpton. you're watching "bloomberg west." let's begin with a check of your first word news. residents and businesses along florida's gulf coast are bracing for hermine which has been upgraded to a hurricane. some low-lying communities have been evacuated and government offices in 51 counties closed at noon today. florida governor rick scott calls the storm potentially life-threatening. new zealand issued a tsunami warning for the east coast of the north island after a magnitude 7.1 earthquake. the warning extends to auckland, the nation's most populous city. the quake's been followed by several aftershocks. turkey is threatening to suspend a migrant deal with the european union if visa restrictions for turkish

nationals aren't lifted. during talks in ankara e.u. representatives urged turkey to amend the country's anti-terrorism laws so the e.u. can lift the restrictions. a key incentive to stopping migrants crossing the aegean sea. the turkish prime minister says that's not an option. florida officials say they found the zika virus and three trapped mosquitoes in miami beach. that's the first time it's happened in the continental united states. an additional 95 trapped mosquitoes have tested negative since the three in miami beach were found. global news 24 hours a day, powered by more than 2,600 journalists and analysts and over 120 countries. i'm mark crumpton. this is bloomberg. "bloomberg west" is next.

emily: i'm emily chang. and this is "bloomberg west." coming up another blow for elon musk. the second spacex rocket explodes in just over a year. and this time it's also a blow for facebook's mark zuckerberg and we'll tell you why. facebook continues its expansion of live video onto its messenger platform. we'll hear from the co-creator turned competitor of facebook live. d here under brewer from low traits. -- interest rates. could pairing up with fintech provide bigger profits? a spacex falcon 9 rocket exploded on the launch pad at cape canaveral marking the company's second loss of a spacecraft in over a year. the incident occurred during routine preparations during an upcoming launch this saturday. in statement spacex said there was an anomaly on the pad and per standard procedure the pad was clear and there were no injuries. the falcon 9 in this accident was supposed to carry an israeli communications

satellite into orbit. that too was lost in the blast. and shares of its parent company slid nearly 9% in tel aviv. the satellite was en route to space to beam internet service across africa for facebook. we will get to that in a moment. but first spacex has been ramping up with frequent launches to make up for a backlog created by its last accident in june 2015 and saturday would have marked the company's ninth launch of the year. joining us now on the phone from outside washington, d.c., is the director of space studies marco seseras. how unusual is an accident like that and why might this have happened? mark: it's extremely unusual for western launch companies. this is an activity that's -- pre-launch test static, a firing of the engines that they were about to do. and something that they do before every mission. just to make sure that the engines, the nine merlin engines that power the first

stage. rocket are working like they should. so they were preparing to do like a three to four-second test firing of these engines. and something must have happened when they were fueling -- they were fueling the second state, the upper stage of the vehicle when the explosion occurred. emily: so how would you compare spacex's safety record to other private space companies or even nasa? >> spacex has an excellent record. they've been launching an awful lot. they have a presence in all the major submarkets of the launch services industry whether it's commercial, military, civil. so they're an extremely active company. they've had some problems with the falcon 9. but nothing unusual. particularly for a company that's relatively new to this market. in five short years, this

company has become the establishment player within the launch services industry. and to come so far in such a short amount of time and have as few of problems as they've had is really amazing. emily: so does that mean to say you don't think this will impact the likelihood of spacex getting future contracts? >> no, i don't. it's still too soon to tell what exactly happened. but i would speculate that this is not something that is specific to the launch vehicle itself. if this had occurred and the failure had occurred after launch or during flight, that would be something totally different. but this is something that happened before the vehicle was actually operational. so -- we'll have to wait and see. but i don't expect that this will delay them or certainly affect any future contracts. emily: elon musk has said it originated around the upper stage oxygen tank. does that give you any clues? >> well, right. the second stage, there are two stages to this rocket.

the first and the upper stage. and what they do is they -- they fuel up the vehicle. and they were fueling up the second stage probably. it's fueled with liquid oxygen and kerosene. it's a mix. and obviously highly flammable and doesn't take much to cause a spark and an explosion of this magnitude. emily: all right. marco caceres of the teal group and thank you so much for weighing in. besides elon musk there is another billionaire upset by this loss and that's mark zuckerberg. because this particular satellite was part of face book's lofty goal of spreading the internet across the most remote parts of the world. in africa and happens to be there zuckerberg said i'm deeply disappointed to hear that spacex's launch failure destroyed our satellite that would have provided connectivity to so many entrepreneurs and everyone else across the continent. we remain committed to our mission of connecting everyone. bloomberg's covering this in

the studio and how big of blow is this to facebook? did they own this satellite and is this a huge loss for them? sarah: i don't think it's a coincidence that zuckerberg was in africa when this satellite was set to launch. he is there talking to entrepreneurs in nigeria. now he's in kenya. he is making his first-ever trip to sub-saharan africa talking to people about building their businesses and connecting the world. this is something extremely close not only to his mission for facebook, to him personally. he really wants to be the person to bring these people online and to help them have better connectivity. emily: the folks behind the satellite are already talking about being concerned about losing facebook as a customer. sarah: right. emily: so how crucial was this particular satellite to the internet.org plan and can they easily get another one? sarah: well, when it comes to satellites, it's not to get another one. these are projects that take a very long time to come to fruition. this is something that zuckerberg was excited about and talking about being a

crucial part of the sub-saharan connectivity strategy. and as early as october of last year. he's mentioned this as a key pillar of his strategy but there are other things he's doing. there are the drones that face book mab working on and radio-based ground level projects that they're working on. the satellite was just going to be the easier -- emily: and was this -- and have other satellites in space right now or is this the first? sarah: they're definitely working on getting more. emily: ok. covering facebook for us and we will continue to follow that story and you are sticking with me. two stocks we continue to watch. tesla and solar city and fresh doubts on whether elon musk can pull off a planned merger. on wednesday an s.e.c. filing for the all-stock solar city acquisition showed the significant cash burn that tesla would have to manage. it also showed tesla considering making a merger proposal before the car maker's may stock offering of $1.4

billion. solar city's value has been falling faster than tesla which could indicate that more investors think the deal could fall apart. elon musk clearly has a lot on his plate right now. coming up facebook unveils a new way to share live video. we will talk to the former product manager of facebook live who recently launched another live video streaming company that will compete with his former employer. plus maddening and disappointing. tim book has strong words for the e.u. reck lators going after his company. but will ireland still back him in an appeal? that is next. this is bloomberg.

emily: another story we are following. apple's fight with e.u. reck lators over -- regulators over a $14.5 billion tax penalty from illegal state aid from

ire-round. c.e.o. tim book is confident the company will win a court fight upon appeal and here he is speaking to the irish broadcaster r.t.e. >> it's maddening. it's disappointing. it's clear that this comes from a political place. it has no basis in fact or in law. and unfortunately it's one of those things we have to work through. i have faith that eventually what is just and right will occur. and i don't -- i don't believe the journey to get there will be all roses by any means. i think there would be ebbs and flows of it. but i do have faith that the right outcome will occur. emily: also in that interview, cook said apple may bring at least $5 billion of its offshore cash back to the u.s. next year. apple can credit any tax it

pays abroad against the 35% top corporate tax rate if it brings offshore profits home. meantime, facebook is continuing to expand its live video presence. the social networking giant launching instant video within its messenger platform. users can tap a video icon to share real-time video and like snap chat you can share live video stream inside the text chat. last month a key player from facebook live struck out on his own and created his own live streaming app. founder me ramin -- of lively. and sarah still with us and why can you do this and face book won't eat your lunch? >> that's a good question. i think that we're doing something really unique. so at facebook, we are really -- we built this product in a way where it's really sort of designed for sharing with lots of people. but one of the things that my co-fourneds and i have learned

is that a lot of people are actually pretty intimidated to go live to lots of people. a lot of moments you may be only want to share with a handful of people. and to the rest of the world, they would feel pretty mundane. emily: but in this instance, this video they announced isn't that what you're trying to do? >> in some ways it is and in a lot of ways it validates what we're doing, i think. and really speaks to this idea of easying anxiety around sharing in the moment. with just a select audience. we're really building an experience that's designed all around video and we're just getting started. sarah: one thing i wanted to ask you about the money making side of this. because facebook recently talks about one way they're going to monetize live video is by letting people put commercial breaks in. these content partners could add commercial breaks. what do you think is the appropriate way to make money off live video? >> that's a good question. i think it's actually really, really early to know what is the right way. and so i think right now, they're sort of experimenting.

and they're trying things. they're going to partners. sarah: is that a good thing to do? >> yeah. i think that's the right thing to do because you need to try a couple of different approaches. and, you know, what -- doing a commercial break might work for some partners. but it might not work well for partners that don't have huge audiences. and so i think you're going to have to really try a lot of different things. you see people in different parts of -- in different parts of the world like in china, for example, where live video is really blowing up. and there's some really interesting monetization moddles -- models where people can pay to give feedback to the broadcaster and that's become popular. we're starting to scratch the urface with montrealization -- monetization and live video. sarah: do you know what you want to do? >> we don't yet. we are trying a couple of different things. live is a part of the way that you share on lively and also

share something that after the fact. we really are trying to make it your modern day cam corder so you can shear live or you can share after the fact. and so we might actually explore storage as a monetization and video is one of the biggest reasons why people run out of space on their phone. we also might explore going down the advertising route and try some things there. sarah: why do you think you won't be the next mircat which is a live streaming app trying to take on periscope and really struggling? >> yeah. sarah: will facebook and twitter be the only players in this space? >> the reason why the facebook model has worked so well with facebook live is because they have the scale. when you're going after -- when you're designing a product where it's all about sharing and reaching lots of people, you better have lots of people that broadcasters can reach. and so i think that was -- that's the challenge actually with a lot of live streaming apps that are out there. they're all really sort of trying to play in the space of i use this as an app to

broadcast lots of people. and that's going to be really, really difficult thing to -- unless you have lots of scale with someone like peer skeep or facebook live. and so we're really -- instead of rebuilding your network we use your contacts. and really you might just need a couple of people on a lively to share with and that might be your significant other or your best friend. and that will give you a good experience. sarah: the graveyard is full of social media apps that have failed. and so path, for example, sort of tried to be a smaller social network for friends and family. and it didn't quite work out. so why do you think it can work out for video when it didn't work out for -- really mostly sort of photos? >> yeah. i think there's a few different challenges of you can -- you can do a private network or small network. i think some of the challenges that even path had even though it was a small network was you actually still needed a good scale of people to use it. because the feedback model, for

example, was very similar to facebook. so you post something, you want to get feedback and get comments and get likes on things that you share. and it's interesting. you look at someone like snap chat. and that really in the last few years has started with -- it was all about sharing with a few people. and then they expanded one to many and their feedback model was interested in that it eached the -- it eased the pressure of how your content is doing. and not about how much feedback you're getting on the content. it's more about just sharing that moment. sarah: do you feel like that's -- something you're trying to provide? or do you want people to comment and interact and give feedback as well? >> yeah. i mean, that's something we were definitely inspired by. we wanted to create an experience that was really just took away the anxiety and pressure. most of -- i mentioned a lot of live video apps and just video sharing in general is really

kind of designed around sharing with lots of people. and -- sarah: not really. you have face time. you have skype. you have many ways to share with -- >> yeah. i think of those as somewhat different. because it's sort of like video calling. but if you want to just capture a video and send it to someone, believe it or not, the most popular app out there today is actually s.m.s. that's what most people still use to send video. but it's an awful experience. the quality gets compressed. it all gets stored on your device. and so we're actually trying to change that. that's -- if there's anyone that really we're going up against it's actually s.m.s. sarah: with s.m.s. you can -- you don't have to be waiting there to have a live experience. >> exactly. sarah: you can have it asynchronous. >> that's how we designed it. we're trying to add value through the live experience. so you can share in the moment. and select family and she would be able to watch it as it's happening and if not by her phone she could watch it later as if she just got a video message. so we want it to work in both

instances so live is a format that you're able to share. emily: all right. vadim lavursik. former facebook live product manager. thank you so much for stopping by. we'll check it out. i feel like it would be good for kids. coming up, fedex and u.p.s., should they fear jeff bezos? c.e.o.'s amazon plans for prime mare next. -- prime air next.

co-founders and i emily: a story we are watching. pokemon fever is alive. niantic, will designate 3,700 of its stores in japan as poke stocks. these are gathering points within the game that are popular with users seeking new pock monday or looking to battle with -- new pokemon or looking to battle with other players. shares of nintendo which created the game along with niantic and the pokemon company jumped to their highest level

in two weeks. softbank shares climbed as well. researchers believe 30 million people log on to pokemon go to play every day. and amazon has found another use for its streaming site twitch. the e-commerce giant streamed two original tv pilots on the gaming website. and is seeking feedback from its 10 million daily users before committing to producing entire seasons. the move highlights how twitch could potentially be used to advantage amazon against rival netflix. amazon bought twitch two years ago for around $1 billion. speaking of amazon earlier this month the company unveiled its prime air boeing 767. the goal, to get orders to customers even faster using its own planes. some analysts are wondering what does it mean for fedex and u.p.s.? devin leonard writes about this in anium coming issue, the upcoming issue of "bloomberg businessweek." so devin, tell us a little bit more about why amazon is doing this and why this could save them rather than cost them more. >> well, basically, amazon is

growing so fast that they're overwhelming their long-time sort of delivery partners. whether that's fedex or u.p.s. at peak time. the holiday team so they're becoming a delivery company and they leased 40 planes. the first one was the prime airplane that we just saw. in seattle. and they're going to become one of the world's biggest delivery companies. and i guess that's got some people concerned, investors in fedex and u.p.s. and what it means for those companies. emily: isn't it insanely expensive? >> well, this is a company that spent $11.5 billion on shipping last year. so they're -- they're spending a lot of money. they've built all of these -- centers and prime now hubs and delivery stations. but they're just leasing the planes for the time being. but, you know, if they can't get all of these packages delevered on time to prime

members, amazon prime isn't going to grow as fast and that's going to be a problem for the company. so ultimately this is -- the question is, do they turn the delivery arm of the company into a business that actually generates money like amazon web services? and a lot of people think yeah, that's going to happen. emily: so talk to us about the broader shipping and low gistics industry and -- logistics industry and why people are nervous about this and if it succeeds, how that could cascade and affect the broader picture here? >> well, again, amazon has a history of creating these sort of businesses in house. and just for themselves. amazon web services is a good example. full film l filament by -- fulfillment by amazon and open to outside businesses. and other companies and turning them into, you know, i guess what amazon web services, and expected to be a $10 billion business this year. so if amazon decides to do that with its delivery business, it's almost overnight become

one of the world's biggest delivery companies. and it will -- it will be -- you could be a direct competitor to fedex and u.p.s. again, receipt now amazon says they're growing so fast and still growing their business with those companies. but they're taking some of the business that they used to do with those companies and doing it in house. and the question is how far do they go? and a lot of people think -- ultimately they are -- in five tore 10 years, they are going to be one of the world's biggest delivery companies and a direct competitor to u.p.s. and fedex. emily: all right. devin leonard. you can read about his new piece in the upcoming issue of "bloomberg businessweek." and you can hear more from the magazine's reporters on this week's most talked about stories. every saturday and sunday on bloomberg television. coming up, we'll hear from the c.t.o. of india's largest conglomerate tata group on the company's next big move. and tomorrow, on bloomberg television and radio, don't miss a rare exclusive interview with russian president vladimir putin speaking with our very own editor-in-chief john micklethwait and tune in friday

for that exclusive conversation. this is bloomberg.

>> top stories this hour. president putin has addressed his country's long-running territorial dispute with japan and told bloomberg he wants to compromise. in a rare exclusive interview, the russian leader said he would consider a political deal to give up one of the disputed islands in exchange for greater economic cooperation. he's due address the topic in talks with japanese prime minister shinsu abe. before attending the g-20 summit this weekend. the port of long beach in the u.s. is just announced it will not accept any more containers from failed shipper tanjin shipping.

the company has filed for receivership leaving vessels and cargo stranded around the world. t hyundai merchants will deploy ships to ease the situation. it could lead to supply chain disruptions for global companies. and a spacex rocket exploded on the pad in florida. and the company's second failure in a year. the rocket was being fueled for a saturday launch, at cape canaveral. it destroyed both the rocket and its cargo. an israeli communications satellite designed to help facebook beam internet service to sub-saharan africa. mark zuckerberg has said he was deeply disappointed by this setback. global news 24 hours a day powered by more than 2,600 ournalists and analysts in 120 different countries. japan coming back online. their bellies are full. how are they feeling, juliette? >> we have seen the yen weaken

a little in the last couple of minutes of trade. so yes, we are seeing the nikkei off a little. down by .1% as it comes back. it was fairly flat just up by almost .1% before that break. elsewhere, a bit of a mixed picture and waiting game ahead of the nonfarm payrolls number coming from the u.s. later on. shanghai is fairly flat and has been fluctuating in between positive and negative territory today as it so wants to do very often. hong kong looking quite good up by another half of 1% so leading the gains in the region similar to what we saw during thursday's session. a lot of gains in the region coming from tech stocks today and you can see by this new 1% drop on the a.s.x. 200 no surprise raw material producers are being sold off. with the exception of gold players. so flat into the safe haven gold really in essence of how the market is faring ahead of this nonfarm payrolls number. will it be a miss? will it push out even further

the likelihood of a rate hike? not only just in september but also for this year? elsewhere we are seeing a little bit of mixed divergence across asian equity markets. the last trading day of the week. emily: this is "bloomberg west." i'm emily chang. tata leads the nation across a range of industries from steel to software. most recently, the company has ventured into wearables and e-commerce chaling -- challenging fit bit, and selina wang sat down with one of tata group's holding companies tata ons and asked c.t.o. goppeda cot raggeda. >> if you think about it a broad level. -- the alytics,

technology going into this is vast. and we said those areas that have an impact for 100 million people and have a potential of 100 million in profit, knows are the areas that we will focus. so that brings us down to in energy we are looking at fuel cells. we are looking at graphene as a material. and in food we are looking at position agriculture, the first example being the delivery of pesticide to the digital consumer, we are looking at wearables. but our stopping point is wearables for our workers. because we believe that will help us in the market and we are playing from a position of our strength which is factories. and we will build a product which is much more onerous than a consumer wearable but with that we can enter the consumer segment as well. and we are identifying cases where machine to machine

communication is going to happen. so it's not a machine to server where analytics happen and human beings still makes the decision. but we want to automate as much of that. so that it's true internet of things and not just things on the internet. >> tata's development in consumer electronics are fascinating. you're making wearables for yoga enthusiasts and factory workers. what else is brewing in the works in consumer electronics? >> so consumer electronics, we do have chroma which is an outlet for various products that we'll make. but really, at this point of time, we are very limited in what we are offer as products. so the goal would be to increase the offerings in consumer electronics. >> how do you see the wearable device market developing in india? you have players like fit bit and apple. >> so the traditional fitbit and apple at this point in time what they're seeing -- while people may buy fitbit or apple or any other form of fitness

wearable, they drop out. so it's going to take a new form, when -- we are looking at it more holistically so looking at health from a standpoint of sunlight exposure, breathing patterns, stretching. and in addition to things like pulse rate and heart rate wearability. so that the back end of a personalized wellness might be a way that it will be more successful in the consumer segment. -- mistry entury spoke about this. >> we launched it and the idea is to bring the patients, the doctors, the pharma companies as well as the insurance companies on one platform. but the longer term vision is for us to make use of the data. to gain insight which will help us move from bad news to cure

and predict and prevent. >> let's talk about apple. earlier this year, the finance minister in india proved a proposal that may make it easier for india -- for apple to open stores there. what do you make of apple's increasing push into the indian market? >> i think it does -- good for every company to look at india as a market. and the way i think about it is india has to become a lead market. what i mean by that is india has to demand products and services based on its unique needs. and that will drive innovation across. so for innovation to happen in india, india has to become a lead market. so more companies like apple coming in and meeting the needs of indian consumers uniquely will help us get there faster. >> and you report directly to cyrus mistry. >> that's right. >> what are his top priorities? is it turnaround loss-making companies or investing in tech and innovation? >> first priority will be to look at the portfolio.

and reorganize the portfolio so that we are looking at a profitable, sustainable growth. and a lot of patients in the tata group and not that we're looking for a turnaround story overnight. there's a lot of paschens as long as -- patience as long as portfolio will be making sure that we have the right portfolio. technology forms a broad end of this strategy as well. and participated with us in various aspects of technology. right from visiting along with us to the universities and going to startup companies across the globe. so it's not limited to india. >> and bloomberg's reported that you are looking to offload assets abroad. and steel, communications, power, are we going to see more of a pullback overseas to focus on the domestic market? >> no, actually, it's not. the focus is to have the right

portfolio. so along with the divestment we had a lot of investment as well. so it's a balanceed out. so cyrus had announced that he would be investing $30 billion plus. and this repositioning of the portfolio is part of the strategy. >> earlier this year, you guys launched an e-commerce venture. >> that's right. >> how is tata going to compete in the space that's already dominated by players like snap deal, flip cart, amazon? >> so the differentiating factor one is that we have a significant physical presence with retail outlets. so retail outlets, we are going to leverage that. also have trend and other retail outlets as well. so the consumer will have access to the inventory in a neighborhood store. if he or she wants to buy from that store, either go there or get it delivered which will be quicker. but also the ability to return

the products into these physical retail outlets. will help gain the trust of the consumer. and the other aspect of the trust element is the ability to deliver the right product to the consumer. so that there have been many instances where consumers have been delivered products which have been either -- the consumer felt that it was previously used or it was the wrong product or sometimes empty boxes show up. so the way we look at that is we are not doing a warehouse-based approach as much as directly the portfolio of companies which are part of the e-commerce business which will be tata companies and nontata companies as well. and they are a created portfolio and directly to the consumer. >> interesting. but that sounds very interesting but startups tend to be more agile. does that put you at a disadvantage? >> the way i look at it is a startup that deep pockets. so that's how i think about it. so there is an agility which is

possible from tata and this venture has been launched from tata. >> and what about m.m.a.? do you guys actively look at a lot of the startups in these various verticals you guys are expanding into? >> we do. and there's a constant. you'll see in the news that various tata group companies have looked and acquired companies in the recent past as well. but even at the tata sons level we do that. emily: that was tata sons c.t.o. interviewed by our own selina wang. a story we are watching. verifone shares tum nbdl late trading after cutting its full-year profit and sales forecast for a second quarter. the hardware terminal company has reaped benefits from the ship to card readers for embedded digital chips in the united states but many merchants have made the transition leading some investors to worry about a slowdown. coming up, german banks are taking a page from fintech companies to remain relevant. we will hear from a leading european fintech player next. don't forget to tune in this

weekend. we will bring you all our best interviews from the week including our market-moving conversation with ed williams. c.e.o. of medium and co-founder of twitter. and he says twitter should weigh all options for future m&a. the best of "bloomberg west" this weekend on bloomberg television. this is bloomberg.

>> they are about baiting and hooking and reeling in you so a fishing expedition. >> there's a craving for expanding the truth because it has become so simplified and boiled down to black and white. and i think there's a need for looking at the world in less linear logic ways. >> you have a sort of third mind that emerges from the two of them. it's difficult to say where one ends and where the other begins. >> i think we would rather expand reality instead of criticizing reality.

>> make the world bigger. emily: germany's largest bankers are fostering relationships with fintech companies to pare costs and adapt to the industry's changing landscape. cording to kpmg and c.b. insights, v.c. investments to fintech companies rose to $186 million in the second quarter. from $107 million in the previous quarter. surpassing the u.k. bloomberg's caroline hyde sat down with one of these german fintech accelerators finleap

and the c.e.o. ramin in your manned. -- nurimand. >> and we started with payments. but because of negative interest rates and cost infrastructure what doesn't fit to that negative interest, and customers demanding for more breakthrough digital process, fintech is definitely the big topic right now. >> and what do you think this disruption could go? how much are you working against the banks or with the established banks? >> we don't see banks versus fint and i can more who will resofele the customer problems or the customer demand. and we see more it's a game of tech versus bankers. so when you see -- when you're being a banking c.e.o., you should be more frightened for tech companies like apagula or amazon or the young fast-moving

companies than fintech. but not because they know banking better. just because they know how to build in the best tech and products. >> i think what's fascinating about finleap you go and find the business problem that you want solved. and then you seek out the entrepreneur. how hard or easy is it to find the talent within germany at the moment? >> so in general, to fine the best talent -- to find the best talent is always difficult. and finleap, we are able to build a brand two years and getting more than 1,000 applications per month. and that's every new startup can benefit from. and interesting is that brexit actually is getting better talent, senior banking experts are now interested to come to a city like berlin where we're based. berlin drk living costs and living lifestyle the best place in europe from my point of

view. and that's a lot of other bankers seize the moment as well. the tech talent usually from eastern europe. berlin as well. fits there really well and very international city. finleap hirings the people from more than 30 nations right now. >> and now international do you want the businesses that you create to become? >> our focus is europe. the regulation is quite alike there. and especially the european union. and that's the biggest -- the big market for us. and that's where we start and where our focus is. and we are right now active in 10 countries already. emily: our caroline hyde reporting there from london. on today's funding board the fantasy sports company draftkings just raised $150 million in an oversubscribed round. investors included revolution growth, venture firm co-founded by sports magnate ted leonsis. fortune reported earlier that the new funding was raised at a lower valuation than the $2

billion value the company previously established. the cash will help boost draftkings as it heads into football season. busiest time of the year. coming up, investors wipe $4 billion off samsung's market cap in thursday's trading on safety concerns about its brand new smart phone. we'll check in with our asia tech team next. this is bloomberg.

>> that was adam wilson. be underhose will trees this christmas. the new movie is scheduled to release at the end of the year. samsung is encountering some trouble. it's delayed the galaxy note

seven in south korea following reports of the phone exploding or catching firewall being charged. beens and photos have surfacing but have not been verified. tokyoning us are peter in -- first of all, what is the real reason for the delay? >> samsung has not said explicitly what's behind the halt in the shipments. this is taking place just in south korea. it, bute not explained there have been reports as you mentioned of explosions and fires starting with the samsung note. not a good sign, obviously. and looks like they are digging into it and doing more research into what is behind it. so how serious is the problem? >> they just introduced the phone last month so it is certainly not a good sign.

the phone got really good reviews, they've been struggling to have more hits as they go is a setbackhis for them. there are reports out of korea today that samsung may end up recalling the phones. it could be broader than that, it could even be a global recall at this point. that would certainly be a big setback for the company. >> state-run media reporting the possibility of a global recall. at what point do we find out if that is actually going to happen? >> as soon as possible. we are digging into it and the local newspapers are digging into it. someng has to bring clarity to the situation very soon. people are out there buying these phones. emily: how have other tech companies handled these kinds of battery issues? >> there have been several.

in heparin to these problems the past. apple had similar things when people were connecting their phones to chargers that were not apple traversed -- apple chargers. apple, they made sure that people were using their authorized chargers to make sure the charger and phone work together. it's not clear exactly what is behind this problem. we expect samsung to dig into it and try to work out some real solutions. about the bigger issues, the smart phone market is slowing. apple is on the verge of announcing its next generation iphone. how critical it time is this for samsung? >> that's a good point. it could not comment a worse time for samsung as apple prepares to come up with their new phones. that is an issue for the company

. they have been on a bit of a resurgence. samsung does much more than just phones. they sell components to apple and other smart phones in the market. but they want the smartphone business to do well and it looked like they were seeing a bit of a resurgence of until this point. asia tech editor from tokyo, i know you will keep us updated. inc. you for joining us. that does it for this edition of "bloomberg west." tomorrow, a rare and exclusive interview with russian president vladimir putin. 10 all day friday for this exclusive conversation. and our coverage continues next week with a special hour-long report. that is all for now from san francisco. this is bloomberg. ♪

>> it's noon here in hong kong. president clinton has told bloomberg he wants to compromise with japan over issues dating back to world war ii. he says he would consider a deal in exchange for greater economic cooperation. territoriestrade in although the problem of a peace treaty that japan is a sticky one. we would very much like to find a solution to this album with our japanese friends. angie: the po