tv Bloomberg Business Week Bloomberg September 10, 2016 7:00am-8:01am EDT
carol: welcome to bloomberg businessweek. in this week's issue, could ask on be liable for allegedly misleading the public about climate change? david: canada's try minister is a little bit like donald trump. carol: really? david: sort of. carol: and does vladimir putin prefer hillary clinton or donald trump for the white house? david: all that on bloomberg businessweek. ♪ we're here with the editor-in-chief of bloomberg businessweek and we have a story in the market finance section.
if you look at tech companies that want to provide all the storage for wall street and financial information, what going on? >> the fccfcc -- wants to put together a database of millions of trade so they can look at what is going on in the market. they want to know what causes these flash crashes. you really need the data in a way that you can manipulate it. to do it by hand is incredibly time-consuming and we need a lot of storage. amazon and google is bidding for this work. there are a lot of players and wall street against this. in part, they feel like maybe the data on be completely secured. they will have to give it up to some extent. private prison
industry, president obama saying he wanted to reduce the reliance on private prisons. and what this article looks at is how this industry is of changes inight demographics and perception of private prisons. >> the justice department said they might reduce their reliance on companies for prison services. the stock for one of the companies went way down. they can diversify and halfway houses and other community-based systems for helping prisoners transition to real life as we know it. carol: there is kind of a freaky merging the head of prime minister of canada and donald trump. they are alike in some way?
it is a fabulous photo. it's much better when my child merges my photo and hers. >> it is a little freaky. it's about how both trump and trudeau have used social media. carol: trudeau is really good at it. >> social media loves him. every time he takes off his shirt, which happens on a regular basis compared to most heads of state, he's all over social media. he knows how to use it. would donald trump do that if he were president? it's an interesting question. it's more apples and oranges at this point. but the story makes the case that this kind of celebrity and can social media virality help a leader govern. from one shirtless head
of state to another. it vladimir putin sat down in russia for a very long conversation and a rare opportunity. it was two hours in vladivostok. a far ranging conversation in which they talked about everything from the u.s. election to syria to iraq to disputed japanese islands. it was a pretty major interview and a really great opportunity. >> it came about because vladimir putin had this forum that he wanted to promote and was going to the g20. it is more typical of the new vladimir putin.
>> and it was a wide range of topics. >> there was no prohibitions. you asked about the presidential election and the hacking story. what did he have to say about all this? >> about her ready he is to engage. he says, we don't care who wins. we are not involved. this is all a rather strange show. and not entirely healthy is the way he pictures it. there is a desire for russia, repeatedly, to be treated as an equal. this is coming from a british theon, they still have hangover of once being a superpower and now being original power. carol: was he reluctant to talk about anything?
questions and will, at different times -- i asked at choice if i had a between watching the godfather and doctor zhivago. and what would be the better guide? he went on about the russian spirit and the need to understand modern russia. he avoided the question. i said i thought he meant doctor zhivago and he smiled. hillary clinton has been occasionally been known to avoid questions as well. david: there's a bit of endurance involved with this. was he ready to answer any and all questions? he was ready to not answer every question as you know and that's part of journalism. there is a tendency to think
he's particularly bad at that and i don't think that he is, really. and you have the slight delay of a translator so it's hard to interrupt. he's not that used to being challenged on bizarre topics. carol: you did push back on some things. >> his people said he wanted to be challenged. which is interesting. he finds it boring if people don't confront him. it is part of his personality. couple of off the record things and he's probably even more direct. you only have to look at one of them. a picture of david emerging naked on a horse. personality in this
particular interview and other ones, to be fair, he is more relaxed and more cautious if those things don't sound contradictory. he was more open about? question about the gas problem, the value of it has gone down. he tried to defend it and i said he would be unlikely to keep a general that lost 4/5 of his army and he did smirk a little bit. combat. you think of the obvious things. your sense of how he regards the united states? moment he talked about the relationship between john kerry and his foreign minister. the dialogue seems very robust.
he has a sense that he remembers the world when russia met america. has,ll the dismissals he it is still the core of the way he would like the world to be. it is a little bit like a jilted spouse or a jilted lover. conversation with creative director robert vargas. david: we talked about the coverage. let's start with the u.s. cover. putin.ait of state, we shoot heads of we want to approach them more as people. less posed, just catching them in a moment that feels natural and authentic. we felt that this photo actually
does that. he was aware of this being shot but he seems to have his guard down a bit. he's not confronting the camera. he's not smiling which is default. carol: did it go smoothly? >> once we got there, it went smoothly. wanted to walk off on us, he could walk off on us. we were preparing for the worse. we did not expect the airline to lose the photographer's equipment. he found the one lighting set up --flood of our stock vladivostok. he did figure it out. the international cover is ice here. -- icier. >> it is a tone you don't see a lot. carol: did you create the tone
afterwards? >> the photographer created the tone afterwards. as planned.o a little darker than usual. a mixture of doing it in post and a happy accident. we ran with it and the framing is a lot more traditional but color gives it a different feeling. david: hospitals give patients a dose of virtual reality. carol: dozens of lawsuits challenge the alleged obsession with youth. david: and an effort to win a new generation of fans. carol: that's ahead on bloomberg businessweek. ♪
carol: welcome back to bloomberg businessweek. david: you can also listen to us on the radio in new york. 1200 in boston, 901 fm in washington, d.c. caroline visited hospitals using vr as a painkiller. it is still in the early stages were they are trying a new technology to see if it can help relieve pain. the theory behind it is that our brain can be distracted. pain,e think more about we feel more pain. they have seen this in the mri. basic theory behind using
virtual reality for pain is basically the same as meditation. we want to take your mind off of pain and transport you elsewhere. david: you profile a number of patients. used toirtual reality help her in treatment? >> we talked to a teenager who unfortunately was any -- in a bonfire accident. one of the things they have to for burn patients is basic need take the dead skin off. that is obviously extremely painful. they gave her this virtual-reality software called snow world. using her head and the focus of her eyes, you throw snowballs at penguins.
the idea is to take your mind off the pain. during times they would dress her wounds as a distraction. another patient waiting for a vital organ and the use vr to take this patient's mind off of the waiting process. similarly, he was playing this game which involves throwing balls. checking it. to be mind off the pain he was experiencing and also to help him hopefully reduce the amount of pain medications he was taking. elses able to go somewhere because he had been stuck for so long in a hospital room. in a prison cell and away.
his hospital room day in and day out. >> older workers are fighting ageism. we talk about jobs in silicon valley and a lot of people go there often. multiple jobs. if you are older it's a different experience. what did you find out? >> is harder to be older and admit that and get a job. you have to pass for younger. david: talk about how people are doing that. there is acute awareness of how young people dress and you found young people modeling themselves on this. >> thethe uniform -- uniform is jeans, t-shirt, sneakers.
suit orhow up in a baggy trousers, you will look really old. people we met were going to they werets of places interviewing at and checking out the fashion and figuring out, maybe i'm not going to go for the jeans and t-shirt look at i will wear slim fitting khakis and a polo shirt. carol: and it makes a difference? >> absolutely. carol: one woman is 50 and she was looking for a job. wardrobe, talking about the social media she got involved in. >> she made sure she had a ton of connections on linkedin. she understood what millennials were reading, the music a were listening to. celebrities they liked. carol: kim kardashian.
>> and superheroes. of millennial slang, she knew not to mention things like the sound of music. you will be ancient. you've got to get rid of a lot of references to your favorites when you were growing up. replace them. she did that. david: our companies aware of this? talking about people being smarter, more ambitious. young people driving silicon valley where it is today. what do companies have to say? >> publicly, they say they are age diverse and privately admit they prefer younger people. people tend to hire people like themselves and you have companies out there founded by
, andar-olds, 22-year-olds hiring a 56-year-old seems really hard. a lot of older individuals lost jobs after the financial crisis and a feel like companies are serving to appreciate the experience older workers had and welcoming them back. >> they're helping young people and people from the u.s.. college grads, people overseas coming. i don't think they would turn away old people that are qualified but they are not looking for them. carol:, how family connections can muddy is this relationships. david: and some call foul on the new soccer stadium. ♪
david: welcome back to bloomberg businessweek. carol: in the markets and finance section, a bank you may not have heard of. team youom a soccer may not have heard of for $100 million. carol: we spoke about recent criticism of bank of california. they have been making tons of loans and it has grown tenfold and bought a few smaller banks in california. and a bunch of assets from banko poppa largexc z -- banco popular. carol: the man behind the growth of this bank -- >> he was running a hedge fund. he wrote a book called "the forewarned investor." how to find fraudulent companies. , onerns out his new bank
of the red flags might apply to his own company. let me ask you about his aspirations for the company. it is still a california-based bank. >> he says there is a tradition of midsized banks finding success staying focused on the state. there are billboards around l.a. and made a deal to name a new soccer stadium. bank, it is a successful right? have been growing and it has the best stock performance of any midsize bank the last couple of years. he's been doing really well. david: you mentioned the red flags and the stadium. this bank signed the deal upwards of $100 million for naming rights to the mls stadium in los angeles and things get thorny? about $100 million.
the highest price paid for mls naming rights. this is for the second soccer team. kind of surprising it would be so valuable. brother jason is a minority owner of the soccer team. carol: a lot of alarms go off here. how does the bank get to do this? where is the oversight? >> they say the brother had no involvement in this deal and anytime they have deals that them falls related parties, independent board members look at it and sign off on it. to imagine two brothers wouldn't talk about a deal like this. especially that the $100 million is more than her eat to 2014 -- it's a lot of money. >> is a large amount to spend on
advertising. steve and his brother, it's part of a very influential family. whether anything untoward is happening or not, there are members of that family. the father-in-law is a famous movie executives who is the lead owner of the soccer team. and the brother also ran an asset management company or consulted for an asset management company that the bank acquired. so definitely, their relationships have been big as they grow. carol: there are a lot of cases about these related party deals. what does sugarman say about this? he says the board has vetted it, everything is
independently valued, and it was impossible to avoid given his relationships in southern california. book, he wrote that disclosure does not make the transactions ok and it could be a sign of problems down the road. oversight,ng of they've invested a lot of money in the bank itself and there is a relationship there some would see as questionable. oaktree invested, the bank lent money to oaktree and to tree paid fees subsidiaries of the bank for asset management services. since then, they sold whole steak. steak. sold their whole they own a basketball team with peter guber, the father-in-law of the brother. more people that know each other. david: is ask him liable for climate damages? the ongoing investigation and controversy. carol: ahead on bloomberg
david: welcome back to bloomberg businessweek. carol: we are inside the magazine's headquarters in new york city. david: what exxon said about climate change and why it matters. carol: take a cruise ship through ground zero. david: and why some women are bailing on the veil. ♪ david: we're back with the editor in chief with bloomberg businessweek. so many must reads. a look at a little hollywood across upon two.
london has become in that cap for a lot of people doing animation and special effects work. >> big in london. it has been going on for a while. given all kinds of tax breaks for this work and as a result, a lot of companies doing it on the west coast of the u.s. have suffered from the closings and they cannot compete with those tax breaks. now that brexit has happened, it has become an even better place to do special effects. you have a lot of classic hollywood movies like star wars and the special effects are being done in the u.k. carol: there are a couple of moving parts. lawsuits. a widely popular videogame and then you have cisco systems. sometimes these
problems are caused when there are outages, glitches, not so much by video -- by the videogame that you are playing or not so much by the web hosting company but by then networking equipment. there was a controversy when a very popular videogame, game of , which is not something i personally have they had some very significant outages and they blamed their web hosting company, peak web. he web tried to figure out what was happening and it was software alex in the networking inipment -- software bugs the networking equipment. by then, it was too late. david: a look at saudi arabia.
we have heard about that country's plans for the future in light of the fact that oil has become so cheap. here, you are looking at social changes underway. there are some. >> saudi arabia and women are not permit -- saudi arabian women are not permitted to drive. and yet women are modernizing and they are allowing women to modernize more. some women have stopped wearing almost allat covers of their face. they are still wearing headscarves. they are wearing more colorful robes. why that may not seem like a massive change come in saudi arabia it is and it makes it easier for women to work and makes it easier for them to be out in the world. some people think it is partly because the price of oil has gone down and it is more
important for women to be out and working. a major change. carol: there is an interesting story about exxon. does exxon become the phillip morris of climate liability? it is really a fascinating phenomenon. there were some big stories in the l.a. times and climate news about how exxon scientists had unearthed the threat of climate change decades ago and exxon continued to fund organizations that were climate change deniers. a #developed. new.onk there were some people saying that exxon could be the new tobacco industry where tobacco companies word sued the cousin they had known about the health effects. david: and suppressed it. >> it has ballooned into
interesting litigation. the basic allegation goes back to the late 1970's. , it'sunderstood scientists understood and told top management that man-made climate change was real and already affecting the atmosphere. did not the company adequately disclose this to the public. that is the basic allegation. carol: how did it become known to the public? the most significant one was a nasa scientist who testified in 1988 about global warming saying it was real. that resulted in a front-page new york times article. shedicians like al gore's light on those kinds of findings. that for more than
a decade, exxon had already been doing its own research. and was synthesizing the research eating done by others. exxon scientists were saying to exxon management that this is what the consensus is among scientists out there. carol: how did it become known that exxon new internally that maybe what they were doing was contributing to global warming? good was basically through shoe leather reporting. the l.a. times working with an environmental reporting group based at the columbia journalism also inside climate news, an online publication does -- life is on writing on environmental topics. david: you detailed about how surprised exxon was by that reporting. that someone was colluding against them. >> they reacted as they
moleibed in a whack a strategy. they tried to respond to each individual report, subsequently to congressional calls for testimony. they did not get out in front of the story and say -- this is what we knew, this is what we didn't know, and this is why we behaved the way we behaved. they were not organized to do that in that fashion. we were very defensive. they went into a classic corporate defensive crouch. of thethis reminds me tobacco industry and what they knew, how long they knew it, and it became public. >> this is exactly what exxon was so afraid of. they did not want to be compared to the tobacco industry. some of the people that pick up on this critique, individual outside scientists,
organizations like the union of concerned scientists, has been making a comparison for a number of years. when the investigative reporting crossed hats with -- crossed theorizing that oil might become the next isacco -- that is why this such a potent criticism of exxon and why it amounts to more than a one or two week pr issue. does exxon become the next phillip morris? carol: also in the future section, a photo essay on the arctic circle. david: crew ships are taking advantage of the northwest passage. >> this was a project pitched by a photographer. of work one a lot longer-term projects in the arctic. she did a huge piece on the iditarod. she is someone inking about the arctic north.
carol: she likes to be cold. >> i guess so. she had access to a place to sleep on the crystal serenity cruiseship, the first commercial cruising vessel sailing to the northwest passage. she pitched it as an idea. we thought it was a great business story and something worth seeing. we sent her to get on the ship in nome, alaska. david: if you get on this boat, what do you see? starts in seward, , not all the way up the coast. it comes around to nome and then you move through a series of interconnected waterways that are frozen for most of the year. but because of climate change
and the time of year, they are clear. icebreaker boats. brown tundra uncovered by the melted ice. carol: and a sad part of the story. iswhat is interesting also whenwill be the first ship it lands in new york to make this voyage. for centuries, there have been hopes of finding a northwest passage to asia as a shipping routes. we are not anywhere near that being a reality at this point. carol: a growing debate as to whether delaware's business court is active. david: the fda. carol: where to find your favorite classic sitcom every night of the week. david: straight ahead on
♪ david: welcome back to bloomberg businessweek. carol: you can also find us on a.m. on channel 119 and on 11 30. 91 fm in washington, d.c. in the politics and policies section, why delaware's historically -- court is courting business. a number ofhas had laws favorable to companies in terms of defending themselves from lawsuits, expediting matters, it has been a jurisdiction or court that has favored directors over some investors. in lawsuits. upon aseen looked
having favorable laws for companies. half of the public companies in the u.s. are incorporated in delaware. they may not be based there. carol: you bring in transpacific global. it is a great story. it is a little bit of a soap opera. it is a couple that created the company. they love to each other. >> it is a great story. nyu theders met at graduate business school. they formed this translation company. it is based in new york that incorporated in delaware. they were fiances though they never got married. over time, they did become fiances though they never got married. andr relationship split up they seemed to follow. they could not agree on how the company was going to be managed, or run. what happened was that the state
of the company ended up in the delaware courts. they were each at 1.50% owners. and the judge did not know what to do. he ordered the company sold. what happened that there was pushed back by top employees. they rallied around and said the judge has gone too far. the power ord should be beyond the power to order the sale of a profitable company. and what you have now is a grassroots fight going on in delaware over whether judges should have this power to impose a judicial fiat that this profitable company be sold. you have about a dozen top executives in this company who citizensed a group, for a pro-business delaware, and they have taken out ads, in
newspapers and on the radio. carol: they reached out to someone to form this. there is some question on who is finding -- is funding this. of them reached out to an atuaintance who knew someone a shop in new york city that organizes strategic campaigns. they put together collectively this effort to push back against the judge. or the judge's ruling that the judges power in delaware. tope are about a dozen executives but they will not tell us who is behind the company or pulling the strings. they say that all of the top executives are. but right now in delaware, in this jurisdiction that is so friendly towards companies, you have a group saying -- the delaware courts have gone too far and they are hostile to companies. david: why regulators are looking into the safety of tattooing? carol: we spoke with the editor.
tattoos. it does not matter who i look at, everyone seems to have some. it is a growing business. >> it is estimated that 30% of americans have them. carol: do you have one? >> no, i do not. david: i don't either. this piece details how the fda is looking at the risks of tattooing. talk about the science and the concerns that some people have raised. >> it turns out that the fda has authority to regulate the inks. it would fall under cosmetics. but it never has. carol: how is that possible? >> they look like cousin that experience they say there have not been enough complaints over the years to justify the competing claims on time and
money. between 1988, and 2003, there were just five complaints to the agency about the inks. we spoke with the head of the tattoo national association. named sailor. he contributed -- he attributed the rise to the do it yourself kits. you can see them online. and there are videos on how to do it from home. and the proliferation of cheaper inks. researchers have started to look at this issue. there was a dermatologist who compiled data that had been coming out of the u.s. and europe and incidents of people finding things in the inks like mercury or charcoal. carol: these are not good things. thing as a no such category of tattooing. some of the pigments are industrial grade.
the third volume is being translated for u.s. audiences on september 20. in total, 1500 pages. 20,een now and september you have to get moving if you want to catch up. you should read them in order. it is an interesting trilogy. wound up onok -- the reading list of mark zuckerberg and president obama. these are people that like to think about the future. it is good to understand how the world might end through the lens of another culture. we get tot how often set those narratives and here we have china doing it. carol: so much is censored in terms of what comes out of china so we do get a glimpse of chinese society. >> as much as this is a i-5 book , it is amazingk what the sensors let him get
away with it. he weaves that narrative into a larger one like stories with brains in jars. david: the reviewer writes that it is confusing that it is -- but it is also something that will grab a reader. >> the reviewer loves this. carol: he has read the whole series. >> he is very passionate about it. it is a harbinger of more chinese sci-fi we are going to see in this country. it is hard to generalize all of that but we will see more of it because we like to think about the world through different lenses. this is a new one for us. carol: the new vintage tv guide. david: it is ready to stream. seriess watching the hbo "the night of." at the end of every episode,
there would be a little promo for the a documentary that hbo aired a year ago. it was very good. it got me thinking that -- carol: that is what they wanted you to do. >> it did occur to me that television providers are now likely -- are now like publishers in that they have a bat list of shows -- a act cklist of shows. now, there is a whole wealth of shows. carol: like, mom and dad you watch that. >> you can go back now. with othersation staffers at business week, we decided to create a lineup of all of the great tv shows. cuttinghe anti-cord
plan. >> legacy tv. carol: what about the monday lineup? >> the idea was to re-create the perfect night of monday night television. nonfootball monday night. carol: i love lucy. the show that never goes away. >> nor should it. we picked the episode from 1952, 1 of the famous ones where she is consuming a health tonic but she does not realize it is 23% alcohol. david: she is getting snookered. carol: she gets drunk in the process. >> hilarity ensues. it is a great way to start off the week. it is a foundational episode of television comedy. we then go to another block in the foundation. about a dozen years later. the dick van dyke show. i picked an episode with mary tyler moore, dick van dyke, and
carl reiner. mary tyler moore in that episode has to apologize to carl reiner for staying on live television that he is wearing a to pay -- a toupee. looking at mtv's rich history, has this not been readily available for a long time or are these networks doing more like hbo? is this newly out there? >> i think when you look at streaming services, and why -- while we are saying this celebrates old-fashioned television, everything in this story is available on the new streaming services. all of these shows were around but i think now, more packaging is happening. it is happening right there on the screen when you go to the menus.
you see one show and then related shows next to it. providers realize they have a lot of material. what was your favorite story? i like virtual reality being used for health care. forg used in hospitals patients with severe burns and organ transplants. it is a distraction. carol: i loved the pectoral -- pictoral essay. the cruise through the north west passage. depicting the individuals that went, what happened on the ship, and a little bit of what they saw and the tragic part of the story was that the reason they can do this is because of global warming. david: an amazing issue that you can get on newsstands or online.
>> coming up on bloomberg best, the stories that shaped the week in business around the world. apple rolls out some sleek if unsurprising new products. saudi arabia prepares to roll back some costly projects and the ecb's era of stimulus rolls on. >> we know they will have to roll out the program. they have said that. investors love stimulus. >> central banks keep taking more action that can they get a reaction from the markets. are now ready to ignore the fed. >> negative