WEBVTT - Iridium's Desch: NEXT Satellite Launch Will Boost Growth(Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg even to Washington, d C.

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<v Speaker 1>Bloomber to Boston, BLUEMBERG twelve hundred, to San Francisco Bloomberg

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<v Speaker 1>to the country General one, and around the globe the

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<v Speaker 1>Bloomberg Radio plus appen Bloomberg got gone. This is taking

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<v Speaker 1>Stock coming up on taking Stock. We want you to

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<v Speaker 1>mark your calendars for September the twelfth. Why because that's

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<v Speaker 1>the launch date for new Iridium satellites. Yes, they'll be

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<v Speaker 1>going on a SpaceX Falcon nine rocket. And we've got

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<v Speaker 1>the chief executive of a Ridium to tell us more.

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<v Speaker 1>Right now, let's go to Charlie Pellett in the Bloomberg

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<v Speaker 1>news room for Bloomberg Business Flash, and I think of

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<v Speaker 1>him Fox right now, stocks little change a SMP five

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<v Speaker 1>hundred index down to point one eighty. We've got the

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<v Speaker 1>Dow lower by eight points, or drop of less than

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<v Speaker 1>one tenth of one percent, at eighteen thousand, five y one,

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<v Speaker 1>nastack holding onto a gain of eleven points now at

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<v Speaker 1>fifty two twenty four the record, by the way, fifty

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<v Speaker 1>two twenty eight on nestack up now buying two tenths

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<v Speaker 1>of one percent. The tenure up fifteen thirty seconds, yield

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<v Speaker 1>one point five three percent. Gold up six dollars anounced,

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<v Speaker 1>climbing five tenths of one percent to thirteen forty two.

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<v Speaker 1>Crude oil lower now buys seven tenths of one percent.

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<v Speaker 1>West Texas Intermediate Crew down thirty one cents of barrel

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<v Speaker 1>forty two seventy Right now on w t I, the

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<v Speaker 1>Walt Disney Company will report after the closing bells shares

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<v Speaker 1>up six tenths of one percent, gaining fifty four cents

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<v Speaker 1>to nineties six dollars and twenty nine cents. Paul Sweeney

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<v Speaker 1>is director of North American Research for Bloomberg Intelligence. He

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<v Speaker 1>says one area of investor interests will be Disney's newly

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<v Speaker 1>open theme park in China. Well, I think an early

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<v Speaker 1>read on Shanghai Disney. This is a five and a

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<v Speaker 1>half billion dollar investment they made. They just opened the

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<v Speaker 1>park uh last June. Uh. It's still very very early days,

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<v Speaker 1>but investors are going to want to get some early

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<v Speaker 1>feedback in terms of attendance, guests spend um to get

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<v Speaker 1>comfort on that investment. A surprise in today's economic data,

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<v Speaker 1>the productivity of American workers unexpectedly declined for a third

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<v Speaker 1>straight quarter, deepening efficiency woes that have characterized the economic expansion.

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<v Speaker 1>The Labor Department says the measure of employee output per

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<v Speaker 1>hour decrease that an annualized rate of five tenths of

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<v Speaker 1>one percent. Federal Reserve Bank of New York says increased

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<v Speaker 1>US household borrowing to finance vehicles and credit card purchases

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<v Speaker 1>offset declines in the amounts of voortgage and student loan

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<v Speaker 1>debt outstanding to propel total consumer debts slightly higher in

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<v Speaker 1>the second quarter. And now let's take a look at

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<v Speaker 1>other stories making news. Thank you Charlie from the Bloomberg

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<v Speaker 1>News room. I'm Raimi. In a censio. Search crews have

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<v Speaker 1>recovered the black box of the sunken freighter al Faro.

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<v Speaker 1>It was found fifteen thousand feet below the surface of

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<v Speaker 1>the Atlantic Ocean. The freighter sank during Hurricane Joaquin in

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<v Speaker 1>October of twenty five teen. The National Transportation Safety Board's

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<v Speaker 1>mission had been on hold because resources needed for the

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<v Speaker 1>effort were not available. All thirty three crew members died

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<v Speaker 1>after the vessel lost propulsion and sank. A federal judge

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<v Speaker 1>has upheld former Illinois Governor Rod Bolgoievitch is fourteen year

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<v Speaker 1>prison sentence on corruption charges. Bogoievich was originally sentenced in

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<v Speaker 1>twleven for trying to exchange an appointment to President Obama's

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<v Speaker 1>old U S Senate seat for campaign cash. The Olympic

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<v Speaker 1>athletes are going for the Golden Rio, but Hillary Clinton

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<v Speaker 1>thinks it's also the perfect place to go for votes.

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<v Speaker 1>Bloomberg's Bob Moon explains the Democratic presidential nominees ad buying

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<v Speaker 1>during TV coverage of the Summer Games. Who's approaching fourteen

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<v Speaker 1>million dollars? I'm Hillary Clinton, and I approved this message.

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<v Speaker 1>If hearing that is normally your trigger to grab the

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<v Speaker 1>remote and skip the commercial. Candidates and advertisers, No, that

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<v Speaker 1>doesn't work when you're watching a live event. And I

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<v Speaker 1>approved this message, and I approved this mass approved this message,

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<v Speaker 1>and I approved this message. Donald Trump requested ad rates

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<v Speaker 1>from stations and key states, but it's been relying on

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<v Speaker 1>free media attention. I don't even need commercials if you wanted.

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<v Speaker 1>Republican ad maker Will Ridders suggests Clinton is scoring votes

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<v Speaker 1>every day and says he'd love to know what Trump

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<v Speaker 1>is waiting for. Bob Moon, Bloomberg Radio and New Jersey's

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<v Speaker 1>Six Flags Great Adventures planning to open what it says

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<v Speaker 1>is the world's first interactive gaming coaster adventure. Writers of

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<v Speaker 1>as they do battle. It sets open septembery Global News

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<v Speaker 1>twenty four hours a day, powered by more than journalists

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<v Speaker 1>and analysts in more than one twenty countries. I'm Rainy

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<v Speaker 1>in essensio. This is Bloomberg, Charlie, and we thank you

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<v Speaker 1>it again. Recapping stocks trading mixed right now. The down

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<v Speaker 1>SMP are both lower, little changed. Nav Stack Harbor by

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<v Speaker 1>seven points, a gain of two tenths of one percent.

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<v Speaker 1>I'm Charlie Pellotts and that's a Bloomberg business flash. You're

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<v Speaker 1>listening to are taking stock with bim box in gap

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<v Speaker 1>Lee Hayes on Bloomberg Radio. How do you change the

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<v Speaker 1>tire on an automobile that is traveling at seventeen thousand

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<v Speaker 1>miles per hour? Well, your first test would be to

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<v Speaker 1>call Matt desh He is the chief executive of a

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<v Speaker 1>Ridium Communications. They're based in Washington, d C. Matt joins

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<v Speaker 1>me here in the studio. Thank you very much for

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<v Speaker 1>being here. Thanks for having me phim. Now you notice

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<v Speaker 1>I started with this idea of trying to change attire

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<v Speaker 1>while the cars traveling at seventeen thousand miles per hour.

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<v Speaker 1>I want to use that as the segue to get

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<v Speaker 1>you just to explain what is the satellite swap and

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<v Speaker 1>how does that fit into what a Ridium does. Well.

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<v Speaker 1>Aridium runs the world's largest satellite constellations. We have satellite constellation.

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<v Speaker 1>We have sixty six satellites today, as you said, flying

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<v Speaker 1>around the planet at seventeen thousand miles an hour, about

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<v Speaker 1>four hundred and eighty five miles above the planet, which

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<v Speaker 1>is quite low. But they all need to be replaced.

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<v Speaker 1>And they're nineteen years old, and we have been working

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<v Speaker 1>for the last six or seven years to build brand

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<v Speaker 1>new satellites. And as you said, they're going to be

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<v Speaker 1>launching very soon. And and we have who replaced them

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<v Speaker 1>one by one in space. It's very careful operation, highly researched.

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<v Speaker 1>We we put the two satellites up next to each other,

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<v Speaker 1>which in space terms is maybe twenty miles apart, you know,

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<v Speaker 1>and uh, literally within microseconds you drop the links to

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<v Speaker 1>one and put and reconnect them to the new one.

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<v Speaker 1>Customers on the ground don't even know that they're their

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<v Speaker 1>call was interrupted and the new satellite is operating for

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<v Speaker 1>the next fifteen to twenty years. Uh. And everybody asked,

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<v Speaker 1>what do you do with the old satellites, Well, we

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<v Speaker 1>have to bring them out of orbit, so over the

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<v Speaker 1>you know, two thousand eighteen will be exciting year as

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<v Speaker 1>we do or but all those satellites and they burned

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<v Speaker 1>up in the atmosphere. Has this ever been accomplished before? No? No,

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<v Speaker 1>In fact, you could call this one of the biggest

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<v Speaker 1>tech refreshes in history. Um three billion dollars satellite network.

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<v Speaker 1>Not not for the faint of heart, but it's such

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<v Speaker 1>a powerful network because it does things that no other

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<v Speaker 1>network does. When we thought about the fact that we

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<v Speaker 1>had to place that, we we didn't want to take

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<v Speaker 1>away that competitive advantage we have over every other system.

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<v Speaker 1>So we said, we've got to really make it so

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<v Speaker 1>it'll be a seamless transition from one to the other.

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<v Speaker 1>So it takes a little more work and effort, but

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<v Speaker 1>it's worth it. And as part of that effort, you've

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<v Speaker 1>got two new services with this launch, right, You've got

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<v Speaker 1>Certace and air on yabout that, Yeah, So the new

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<v Speaker 1>satellites are much more powerful and we had some extra

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<v Speaker 1>space on them too, so instead of just being a

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<v Speaker 1>communications provider, we wanted to do it even better than

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<v Speaker 1>last time. So Services our brand name for a broadband

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<v Speaker 1>service that enables very small devices to operate up to

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<v Speaker 1>one point for megabus per second. But maybe even the

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<v Speaker 1>more revolutionary one is the area on one, which is

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<v Speaker 1>we are going to track every airplane, every commercial aircraft

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<v Speaker 1>in the world, no matter where it is, in real

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<v Speaker 1>time and provide that information to air traffic controllers so

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<v Speaker 1>they can provide better service to two airlines and more

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<v Speaker 1>direct routes, fuel savings, and of course we won't be

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<v Speaker 1>missing any airplanes any longer in MH three seventies. Pretty

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<v Speaker 1>unlikely if we know, literally down to the second, where

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<v Speaker 1>every airplane is. Now. This is all going to take

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<v Speaker 1>place at Vandenburg Air Force Base in California. This is

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<v Speaker 1>where the launch is scheduled in September. That's right. If

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<v Speaker 1>we were to go to the base today, what would

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<v Speaker 1>we see. Well, we just started the process of processing

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<v Speaker 1>the first batch of satellites, so we we launched Keen

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<v Speaker 1>satellites at a time five on a lower tier five

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<v Speaker 1>on an upper tier. It's the heaviest payload that SpaceX

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<v Speaker 1>has launched. Uh. SpaceX is the company that makes the rocket,

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<v Speaker 1>that's right. This is the Falcon nine rocket that will

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<v Speaker 1>be taking us to space. We we we were one

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<v Speaker 1>of their earliest customers, so we took a bet on

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<v Speaker 1>them seven years ago or so. I knew that they

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<v Speaker 1>fit our profiles very well, and we've kind of grown

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<v Speaker 1>up together. They've become quite successful as that we and

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<v Speaker 1>we're ready now to use seven of their rockets to

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<v Speaker 1>launch seventies satellites over the next eighteen months. It's quite,

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<v Speaker 1>as you said, a dance in space of constantly putting

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<v Speaker 1>satellites up, positioning themselves, drifting them between planes, moving them

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<v Speaker 1>into position, swapping satellites. It's going to be a very

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<v Speaker 1>very busy, uh eighteen months. But yes, SpaceX is going

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<v Speaker 1>to launch us out of Annaberg Air Force Base starting

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<v Speaker 1>on September nineteen for the first one, and then the

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<v Speaker 1>next launch will be in December, and then February and

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<v Speaker 1>every two months after until we're done. I gotta have

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<v Speaker 1>you just described as quickly as you can the history

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<v Speaker 1>of a ridium, because this was, by no means a

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<v Speaker 1>short thing. That we would get these launches done. No,

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<v Speaker 1>we have quite a history going back to the early

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<v Speaker 1>nineties when Motorola envisioned this company to compete with cell

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<v Speaker 1>phones globally and probably spent six billion dollars or something

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<v Speaker 1>during the the high growth nineties, launched the system to

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<v Speaker 1>great fanfare, went bankrupt one years later in the biggest

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<v Speaker 1>bankrupt ever in history, at least for a week until

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<v Speaker 1>Enron happened. And uh, and then we started. We really

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<v Speaker 1>took the company in two thousand. In the last sixteen years,

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<v Speaker 1>it's grown to be quite a profitable, large, successful company,

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<v Speaker 1>able to replace its satellite networks. And it's probably a

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<v Speaker 1>lot of people are surprised when they hear the name

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<v Speaker 1>of Ridium because they remember the nineties. But we're not

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<v Speaker 1>that company anymore. We're we're quite new, successful, thriving company.

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<v Speaker 1>Thank you very much for coming in and sharing this

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<v Speaker 1>with us. Is the chief executive of a Ridium Communications.

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<v Speaker 1>They are based in Washington, d C. And the first

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<v Speaker 1>launch of the next generation constellation of satellites is September

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<v Speaker 1>from Vandenburg Air Force Base in California. You're listening to

0:10:45.679 --> 0:11:01.360
<v Speaker 1>taking Stock. I'm pim Fox and this is Bloomberg coming

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<v Speaker 1>up on taking stock. The shares of Valiant Pharmaceuticals are

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<v Speaker 1>hired today by more than twenty percent. Of the pharmacy

0:11:08.679 --> 0:11:12.960
<v Speaker 1>company Endo International higher by more than twenty percent. We'll

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<v Speaker 1>find out why