1 00:00:03,080 --> 00:00:06,439 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:06,519 --> 00:00:09,600 Speaker 1: dot com, the Radio, plus mobile, lapt and on your radio. 3 00:00:09,880 --> 00:00:13,960 Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters. 4 00:00:14,040 --> 00:00:16,520 Speaker 1: I'm Katherine and Cowdery and Bloomberg. Taking Stock is brought 5 00:00:16,520 --> 00:00:20,040 Speaker 1: to you by National Realty Returns on cash and rented 6 00:00:20,040 --> 00:00:22,840 Speaker 1: real Estate. Find them at n r I a dot net. 7 00:00:23,239 --> 00:00:25,720 Speaker 1: We check the markets every fifteen minutes throughout the training day. 8 00:00:25,760 --> 00:00:27,880 Speaker 1: Now over to the First Word Breaking News desk for 9 00:00:27,920 --> 00:00:32,480 Speaker 1: today's afternoon call with Bill Maloney. Bill Good afternoon, Catherine Nane. 10 00:00:32,640 --> 00:00:36,000 Speaker 1: Savages have reversed their morning losses. Dall Is currently hired 11 00:00:36,000 --> 00:00:38,919 Speaker 1: by sixty seven points, says it's game five and as 12 00:00:39,000 --> 00:00:42,040 Speaker 1: that rises by twelve, the small cap six hundres hired 13 00:00:42,040 --> 00:00:44,599 Speaker 1: by three points, and the US ten yield at one 14 00:00:44,680 --> 00:00:47,440 Speaker 1: point seven eight per cent. Eight out of tennis B 15 00:00:47,600 --> 00:00:51,520 Speaker 1: sectors are rising, led by games and Materials, Industrials and telecom. 16 00:00:51,880 --> 00:00:56,240 Speaker 1: Utilities and healthcare fell down. Transports gained sixties seven as 17 00:00:56,280 --> 00:00:59,040 Speaker 1: a bi techs fall thirty, and the vix is down 18 00:00:59,160 --> 00:01:04,200 Speaker 1: six percent. Down. Leaders to the upside included IBM, Walmart 19 00:01:04,240 --> 00:01:08,680 Speaker 1: and American Express. Merkan Apple led to the downside. Earnings 20 00:01:08,720 --> 00:01:11,800 Speaker 1: movers included Endo International, which fell as much as forty 21 00:01:11,880 --> 00:01:15,800 Speaker 1: two to the Lowison's two thousand and two, while Activision 22 00:01:15,840 --> 00:01:18,759 Speaker 1: gained as much as eight point nine percent after as 23 00:01:18,920 --> 00:01:22,160 Speaker 1: results live from the first breaking news as Gombow Maloney, Katherine, 24 00:01:22,680 --> 00:01:24,959 Speaker 1: thank you, Bill and to hear live breaking news over 25 00:01:24,959 --> 00:01:27,880 Speaker 1: your Bloomberg type s q U A K on your terminal, 26 00:01:28,240 --> 00:01:30,240 Speaker 1: and here's some breaking news. The deal to make at 27 00:01:30,319 --> 00:01:33,200 Speaker 1: Charter Communications and number two cable company in the country, 28 00:01:33,400 --> 00:01:38,520 Speaker 1: has cleared the last federal hurdle. Charter It's murder to 29 00:01:38,640 --> 00:01:42,000 Speaker 1: buy time Warner Cable has been approved by the FCC 30 00:01:43,600 --> 00:01:46,319 Speaker 1: and we'll have war details as they become available. That's 31 00:01:46,319 --> 00:01:50,880 Speaker 1: a Bloomberg business flash. You're listening to taking stock with 32 00:01:51,000 --> 00:01:56,360 Speaker 1: Kathleen Hays and Pim Fox on Bloomberg. Radio accelerators accelerators 33 00:01:56,400 --> 00:02:00,160 Speaker 1: for the aerospace and defense industry. What are they? How 34 00:02:00,160 --> 00:02:03,320 Speaker 1: do they work? Well, that's why we have Van s. Pabodi. 35 00:02:03,400 --> 00:02:06,760 Speaker 1: He is a partner and a co founder of Starburst Accelerator. 36 00:02:07,120 --> 00:02:10,240 Speaker 1: They are based in Los Angeles. They can be followed 37 00:02:10,360 --> 00:02:14,880 Speaker 1: on Twitter at star Burst I double n O V 38 00:02:15,160 --> 00:02:17,800 Speaker 1: as an innovation. Well, Van joins us now here in 39 00:02:17,800 --> 00:02:21,520 Speaker 1: the studio. All right, so innovate, help us understand this 40 00:02:21,600 --> 00:02:25,760 Speaker 1: world of accelerators and defense and aerospace companies. What's this 41 00:02:25,840 --> 00:02:28,760 Speaker 1: all about, Van? I guess the first thing you'd have 42 00:02:28,800 --> 00:02:31,480 Speaker 1: to think about is the generational gap this world of 43 00:02:31,480 --> 00:02:34,240 Speaker 1: Silicon Valley startups, even those startups here in the New 44 00:02:34,280 --> 00:02:36,360 Speaker 1: York area that are trying to find a way to 45 00:02:36,480 --> 00:02:38,919 Speaker 1: access these big aerospace brands. Who to go out? Who 46 00:02:38,919 --> 00:02:41,520 Speaker 1: do I talk to at Boeing at Airbus to help 47 00:02:41,560 --> 00:02:44,480 Speaker 1: me get that product into the marketplace. Well, when you 48 00:02:44,560 --> 00:02:49,320 Speaker 1: talk about the marketplace, is it to sell ideas and 49 00:02:49,520 --> 00:02:53,040 Speaker 1: products to the actual aerospace companies or to go directly 50 00:02:53,080 --> 00:02:55,040 Speaker 1: to the US government, or maybe a mixture of both. 51 00:02:55,280 --> 00:02:58,400 Speaker 1: It's a mix. It's never that straightforward. Most people have 52 00:02:58,440 --> 00:03:02,320 Speaker 1: difficulty navigating these big rules and how to become a supplier. 53 00:03:02,520 --> 00:03:04,919 Speaker 1: Some tend to represent the future of the industry around 54 00:03:05,000 --> 00:03:09,480 Speaker 1: drone technology, um transporter systems. You know, even technologies as 55 00:03:09,520 --> 00:03:12,480 Speaker 1: interesting as hyperloop might not be aerospace related, but it 56 00:03:12,520 --> 00:03:15,640 Speaker 1: requires the same sort of engineering. And the background of 57 00:03:15,720 --> 00:03:20,960 Speaker 1: Starburst has international routes. That's correct. We started in Paris 58 00:03:21,000 --> 00:03:24,880 Speaker 1: about three years ago and the model UM was easier 59 00:03:24,880 --> 00:03:27,160 Speaker 1: to be organized because the supply chain in Europe is 60 00:03:27,200 --> 00:03:31,679 Speaker 1: much more hierarchical. So it was pretty exciting to get 61 00:03:31,680 --> 00:03:33,359 Speaker 1: that off the ground and have some good success case 62 00:03:33,360 --> 00:03:35,800 Speaker 1: studies there and then bring it over here less than 63 00:03:35,840 --> 00:03:37,600 Speaker 1: a year ago, and we had our first event last 64 00:03:37,600 --> 00:03:41,640 Speaker 1: October and it's been ramping up pretty quickly since. Give 65 00:03:41,720 --> 00:03:43,960 Speaker 1: us an idea of some of the companies that you've 66 00:03:43,960 --> 00:03:46,920 Speaker 1: been working with and some of the services you've been providing. 67 00:03:46,920 --> 00:03:49,080 Speaker 1: The word aerospace means a lot of different things to 68 00:03:49,080 --> 00:03:53,880 Speaker 1: allot of different people, but UM space and drones tend 69 00:03:53,920 --> 00:03:56,320 Speaker 1: to be the low hanging fruit, those that really start 70 00:03:56,360 --> 00:03:58,880 Speaker 1: to resonate with people. But there's a lot of infrastructure 71 00:03:58,880 --> 00:04:01,200 Speaker 1: in between those two world that has just as much 72 00:04:01,200 --> 00:04:04,920 Speaker 1: opportunity to grow in the industry. So we're learning about 73 00:04:05,000 --> 00:04:09,200 Speaker 1: new materials and nanotechnology. We're learning about air traffic systems 74 00:04:09,240 --> 00:04:15,160 Speaker 1: for drones, we're learning about electric propulsion systems for small satellites. 75 00:04:15,200 --> 00:04:18,839 Speaker 1: The size of our fists what would be an example 76 00:04:18,880 --> 00:04:22,039 Speaker 1: of an actual company. So some of the companies that 77 00:04:22,080 --> 00:04:27,799 Speaker 1: have presented our panels include a millimeter wave radio frequency 78 00:04:28,360 --> 00:04:31,560 Speaker 1: UM technology that's spun out of Ireland, out of a 79 00:04:31,640 --> 00:04:34,080 Speaker 1: lab there and they're getting a lot of love from 80 00:04:34,120 --> 00:04:36,800 Speaker 1: the corporate partners that support our program. Um. They're called 81 00:04:36,839 --> 00:04:40,479 Speaker 1: a Rolis. Another one I can think of is called Axion. 82 00:04:40,520 --> 00:04:43,800 Speaker 1: It's developed a nanotechnology for electric propulsion systems really to 83 00:04:44,320 --> 00:04:48,080 Speaker 1: make the best use of energy while traveling in space. Um, 84 00:04:48,240 --> 00:04:51,039 Speaker 1: something around the passenger experience can be around in flight 85 00:04:51,120 --> 00:04:54,480 Speaker 1: entertainment systems. We're working with companies that are developing lightweight 86 00:04:54,480 --> 00:04:58,320 Speaker 1: seed technology based out of Singapore. We've also learned about 87 00:04:58,360 --> 00:05:01,160 Speaker 1: a company that identifies alerts if a drone is flying 88 00:05:01,160 --> 00:05:03,800 Speaker 1: near an airport to avoid any sort of collision. Well, 89 00:05:03,880 --> 00:05:06,919 Speaker 1: what's that company? Because that company is called Airmap air Map, 90 00:05:07,400 --> 00:05:10,200 Speaker 1: and that is something I would imagine that local as 91 00:05:10,240 --> 00:05:13,440 Speaker 1: well as federal officials would be interested in. Exactly. They've 92 00:05:13,480 --> 00:05:16,840 Speaker 1: done very well too, uh, create the attention at a 93 00:05:16,880 --> 00:05:19,279 Speaker 1: federal level and work very closely with the policy holders 94 00:05:19,279 --> 00:05:22,359 Speaker 1: in the f a A and the White House. Having 95 00:05:22,360 --> 00:05:24,120 Speaker 1: said that they in order for this to really get 96 00:05:24,120 --> 00:05:26,400 Speaker 1: the traction, they've got to work with the drone operators 97 00:05:26,640 --> 00:05:28,680 Speaker 1: and as well as the local airports. So it's a 98 00:05:28,760 --> 00:05:32,719 Speaker 1: pretty major undertaking to get that sort of trial and 99 00:05:32,720 --> 00:05:35,800 Speaker 1: pilot programs in place with specific air fields. What kind 100 00:05:35,839 --> 00:05:40,960 Speaker 1: of money does an accelerator like Starburst offer potential companies. 101 00:05:41,520 --> 00:05:46,719 Speaker 1: So most startup startups at a seed stage that have 102 00:05:46,839 --> 00:05:48,880 Speaker 1: some strong I P and they really have a pattern 103 00:05:48,960 --> 00:05:50,520 Speaker 1: or two pending really ready to kind of hit the 104 00:05:50,560 --> 00:05:53,440 Speaker 1: ground running. They're still really small. They're looking for anywhere 105 00:05:53,520 --> 00:05:57,640 Speaker 1: from half a million k too as big as ten million. 106 00:05:57,680 --> 00:05:59,280 Speaker 1: But it's up to us to kind of walk them 107 00:05:59,279 --> 00:06:01,440 Speaker 1: through the process and saying some of the whether or 108 00:06:01,480 --> 00:06:04,400 Speaker 1: not some of their what they're asking for from these investors, 109 00:06:04,400 --> 00:06:07,760 Speaker 1: including us, is unrealistic or not, and whether or not 110 00:06:07,839 --> 00:06:10,560 Speaker 1: we can help them reduce that scope through partnering with 111 00:06:10,600 --> 00:06:12,440 Speaker 1: some of the corporates, which is a critical component of 112 00:06:12,440 --> 00:06:16,120 Speaker 1: what we do. The company safety Line is one of 113 00:06:16,160 --> 00:06:18,000 Speaker 1: the companies you've been involved with, and I wonder if 114 00:06:18,000 --> 00:06:20,920 Speaker 1: you could just describe what they do and how they 115 00:06:20,960 --> 00:06:24,919 Speaker 1: connect with what you're trying to achieve. Safety Line has 116 00:06:25,160 --> 00:06:29,080 Speaker 1: developed an algorithm that analyzes the black box data that 117 00:06:29,120 --> 00:06:32,000 Speaker 1: most people tend to only identify after an incident has 118 00:06:32,040 --> 00:06:34,720 Speaker 1: been made. So what they've done, very carefully and very 119 00:06:34,760 --> 00:06:38,640 Speaker 1: creatively is use some deep learning algorithm to understand the 120 00:06:38,680 --> 00:06:41,320 Speaker 1: behavior of an aircraft during the climb phase as a 121 00:06:41,920 --> 00:06:43,960 Speaker 1: and in order to then provide guidance to a pilot 122 00:06:44,000 --> 00:06:46,240 Speaker 1: to say, as you're climbing, if you change the speed 123 00:06:46,680 --> 00:06:48,719 Speaker 1: during your client phase, you can save up to temper 124 00:06:48,760 --> 00:06:51,080 Speaker 1: cent a fuel. So what they're doing is they're offering 125 00:06:51,080 --> 00:06:53,919 Speaker 1: airlines this software suite to say, if you run this 126 00:06:54,000 --> 00:06:56,480 Speaker 1: through your flight management system, we can help you achieve 127 00:06:56,520 --> 00:07:00,360 Speaker 1: tem percent fuel reduction in your overall fleet. And if 128 00:07:00,360 --> 00:07:02,200 Speaker 1: you're able to do it, offer them a creative business 129 00:07:02,279 --> 00:07:05,479 Speaker 1: model to say, we'll take ten percent of the ten percent. Alright, good, 130 00:07:05,560 --> 00:07:08,400 Speaker 1: thank you very much for spending time with us. Evan S. 131 00:07:08,440 --> 00:07:11,400 Speaker 1: Pabodi he is the partner and the co founder of 132 00:07:11,520 --> 00:07:15,520 Speaker 1: Starburst Accelerator. They're based in Los Angeles and they can 133 00:07:15,560 --> 00:07:19,800 Speaker 1: be followed on Twitter at Starburst. I double n O 134 00:07:19,920 --> 00:07:25,160 Speaker 1: v as in innovation companies creating new products and services 135 00:07:25,240 --> 00:07:29,040 Speaker 1: for the aerospace and the defense industry. Coming up on 136 00:07:29,120 --> 00:07:32,720 Speaker 1: taking Stock, we're going to be talking about impact investing. 137 00:07:32,960 --> 00:07:37,240 Speaker 1: Black Rock has a new exchange traded fund and focuses 138 00:07:37,280 --> 00:07:40,480 Speaker 1: on sustainable investing. We'll find out why that is a 139 00:07:40,560 --> 00:07:46,560 Speaker 1: growing portion of people's investment portfolio. Next Bloomberg, taking Stock 140 00:07:46,640 --> 00:07:48,920 Speaker 1: is brought to by Ancient Block and Ancient named the 141 00:07:48,960 --> 00:07:51,240 Speaker 1: best accounting firm in North America for the sixth year 142 00:07:51,240 --> 00:08:00,200 Speaker 1: in a row by hedgeweek dot com.