officially the deputy

crown prince which puts him second in line to the throne. over the past year, he has been given a portfolio, by his father over the economy, the oil industry, the defense ministry, and o he is unveiling what is saudiggest redo of the economy for decades. he grew up wanting to be the next steve jobs. in the interviews he has given us, he talked a lot about technical revolution, what it means for people his age, who constituted more than half the population and saudi. the biggest scoop to come out of this interview is -- we always knew they were under pressure over the past year or so, they are running out of finances. they had several hundred billion

dollars of foreign reserves. what they told us is that a year ago, they realized their burn rate was giving them to a place that they would be bankrupt by early 2017. the imf was telling the world they would be out of it by 2021. the world of a have five years. what was true is that they had less than two. over the past 10 months, prince mohammed has significantly reduced spending and putting a lot of efficiencies in place. we sat down with his financial advisor who was going through some of the details on how inefficiently the kingdom was spending money, basically through the boom years of 2010 to 2014, when oil was hovering in the $180 range. being accounted for very well. he has done a lot in that regard

to slow the burn rate from, i think it was, $30illion a month to around $8 billion. that does not mean that brought that down. of five or six to a, with the country position where the only pillar of the economy is oil. it is a big one, but no longer the majority. he wants to try to compel foreign investment and create job opportunities by expanding the private economy, which is not very existence right now. also thinking about the rights of women, social reforms. women driving, that is something that has not happened in that society. >> he is smart enough to realize there are third rail issues that will take time. that is certainly one of them. -- of the quotes he gave us

women enjoy rights in islam that they have not gotten in our society. that is really interesting and cuts to the core of saudi society. on the one hand, very wealthy and well-off, and yet strictly religiously conservative. you have a society that sees themselves in prince mohammed and increasingly finds embarrassment as they go around the world. >> he is pushing for so much innovation. do we have a sense of how one with a saudi arabia and people are responding to that? > >> it depends on who you talk to. the well family is not a few people. there are thousands of people in the royal family and are paid out of a kitty that sits between the treasury and aramco. a lot of people will be getting

a lot less money down the road. but i think, a country with a population of 30 million, where --f of them are educated remember, all the efforts over the past 20 years or so, this kingdom has made to educate their people. they are educated and there is not enough to do. for the first time, someone in power is talking about these things. cover story,ry there is a story itself. >> the photo director hired a very seasoned photographer who photographs and document how the prince goes about running his country. he came back with various options of the prince looking very relaxed, on an ipad, ,itting in his living room without his traditional

headdress and clothing you would associate with a figure of such power. >> he went for the closer shot that we don't normally see, right? right. that only is this a much more graphic image of the young prince, you can also see that his facial features are just relaxed and something unexpected from such a powerful person. and, we are also used to seeing powerf figures faces in opulence. we went for this more unusual shot. what do you want to convey for someone who sees this cover? smallerted for a typographic treatment. the first thing you see, you see the prince is very young. as you read the language, he is in charge of such a big task. you want to know

how you can't order a trump and vodka, we will tell you. plus, gamers turn gamblers. >> all that ahead on "bloomberg businessweek."

♪ carol: welcome to "bloomberg businessweek." i'm carol massar. towardand i'm david gura did you se? trump champagne. coins as well, a guy who makes no bones about all the has. he he is not sanctioning that either. we hear all about the wall. a few people having a little fun with that. examples of a lot of people using the trump name without donald trump's permission. patented aas

trademark office for people wanting to use the trump brand. a lot of people wanting to capitalize off of his popularity. david: the whole process of doing that takes about a year or so passed the election. features section, the there is a story about failed trump vodka. we spoke to a reporter. >> i wrote about how donald trump had this magnificent rise thanks to the use of his dead of his real estate empire. very amazing rise. in the 1990's. but when he rebounded, he came back as a different version of himself. he often was merely loaning his name out, meaning he was not building buildings called trump. it also meant he was licensing donaldinstripe suits and trump, the fragrance. at the end of 2005, trump vodka.

david: mobile was the market supposed to be for this vodka? >> very high end. the best. they got a little ahead of themselves. they did not even have a bottle to put it in. carol: they did not have a distillery. >> they found one in the netherlands. it was this small, struggling distillery. david: what happened here? it was a hit to begin with, but had a rather short life. >> it sold 40,000 bottles in the first few months. people were excited. it was a spectacle. there were parties and hollywood and miami beach, trump tower. good times did not last. 2007, there was a line that says we are going to move our bottle production to china. just to cut costs. world,ot the end of the

but a sign that things were not good. ,s a financial crisis started you can see, look, the bigger bottle will be less profitable. there are less direct sales. you could see the trickle of that news as the crisis got worse. david: is this a real relic, or a thing of the past? >> i heard there was trump vodka for sale. the distillery i told you about, ended up going bankrupt in 2010. trump ended up suing saying he was not getting the money he was promised. carol: so donald trump even sued. >> donald trump did not own the vodka, he was only supposed to be paid money.

or about half of the profits. he said that the company was not paying him, so he sued and trump vodka is appeared in the u.s., except for this brilliant liquor salesman who just saved a bunch. david: how much did he sell it for? >> about $30. restaurants find information -- information from grocery stores. all that ahead. ♪

♪ ♪ david: welcome back to "bloomberg businessweek." i'm david gura. carol: and i'm carol massar. a look at how herbalife has helped well-known athletes. david: here is reporter matt

townsend. >> any company trying to create a brand and sell products, the associate themselves with high-profile people. got ans basically associated with people and david beckham and one of public figures light or secretary of --te madeleine albright public figures like secretary of former secretary of state madeleine albright. david: you mentioned soccer? presenceife has a big into latin america and further into asia. what is the most popular sport in all these places? david: soccer. >> by far. those are places where herbalife has seen a lot of growth. is on the logo jerseys, so they are front and

center. the lag deal was with galaxy. in the got david beckham, who was really, really popular. he was the most popular person in soccer wearing an herbalife shirt when he was on the galaxy. david: who is driving this branding shattered? >> the ceo, michael johnson. he came in the middle of the last decade from disney and said, let's turned this company, known for weight loss shakes come into a sports performance brand. he has done that by associating them with athletes, mainly soccer. to branch out into other products. they do things like sports nutrition, protein powders, energy drinks. they really see herbalife is a sports performance brand.

someday, they said they want to have their logo, which is admirable leaf -- an herbal leaf, unlike nike. part of the argument, by having people liked david beckham another well-known people, it does give the brand some legitimacy. >> right. one of the things he talks about is the big lie is easier to believe than a little live. --is even compared herbalife herbalife has all its credibility. it is a publicly traded company. it has people liked madeleine albright speaking on its behalf. -- he saysrpetuate it is a pyramid scheme. he says they are legitimate company.

he is out to make good on his investment. in this week's etc. section, a profile of restaurants is on the forefront of an interesting trend. suppliers to be able to not only give them food to serve in the restaurant, but to sell for people to take home because they don't have the capacity to do it. ross the country, we are seeing this from everything from time places to seafood restaurants. is this stuff that you take home and heat up? they sell something called a sunday gravy you can take home and heat up. [laughter] if you are really hungry, you can scoop it out. ,t a restaurant and virginia you can get an oyster role in the restaurant and they get oysters to go. carol: it is happening around

the country. >> and it makes sense. if you really liking what you have and want to try it at home, the restaurants give you the option to do it. the debate on how to classify over drivers. all that ahead on "bloomberg businessweek." ♪

thank you. ordering chinese food is a very predictable experience. i order b14. i get b14.

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david: i'm david gura. carol: and i'm carol massar. david: were amazon chooses to provide same day delivery. carol: how to resuscitate the cap? it is all ahead on "bloomberg businessweek." ♪ david: we are here with ellen pollock. anymore must reads, starting with a feature on amazon. the graphic accompanying it are so amazing showing the delivery areas for amazon. >> this was a project some of the graphics team at bloomberg and the editors and reporters at bloomberg businessweek, what we amazon'sook at where one-day delivery service is,

their prime one-day delivery service. something they are really pushing. we looked at where the services were available and matched it to u.s. zip codes. what we found was that in many , there several cities were areas that were largely populated by black consumers who are not eligible to get the service because they only deliver to other parts of the city, and they didn't serve these areas. david: especially atlantic, washington, dc. and atlanta. there is a hole in the metal that is a largely black community where you cannot get the service. there was no evidence at all that amazon was out to discriminate in any way. they were looking at data. the story said something about

are only looking at data and not looking at the people, you can end up under serving black communities. it raises a lot of questions. leaders will have to take away they wish. but there are some stark examples. they had no intention of disseminating. carol: interesting. this week, you take a look at the gap and breathing into the gap. fee into the gap. new life into the gap. mark ellen: the problem that they are facing is that they are known for basics. but many other retailers have gotten into the basic business. carol: i was digging about all

the times i walk into a gap and walk right out. ellen: they were doing well and colored denim came in. they went into the gap and spend money on college denim. -- on colored denim. t-shirts, you can get a lot of different places. barrett looks at frank. they are trying to eroded through the court system. first republicans try to eroded in the legislature. that really did not work. there are all kinds of litigation to try to water it down or change it. david: we talked to the reporter on dodd-frank. >> the people who are trying to make a substantive point instead of merely symbolic gestures are

looking consistently to the courts where they have had some success in contrast. i. carol: what have they had success on? most recently in quite significantly, a federal district court in washington reversed a very important decision by the financial stability oversight council. david: explain what that is first. that is a cancel of 12 treasury secretaries. the most powerful financial regulators in washington and metlife,designated -- the oversight council had designated metlife. their failure could bring down the system. aig is one of these. the federal judge said that the

council had been arbitrarily capricious and exercising its authority and imposing this on metlife. the potential significance of that is it could undermine the council's authority in future cases because the judge said they had to wait more carefully the potential financial affect on the institution and question, and that is a difficult thing for the council to do. david: part of what is gotten a lot of attention is the consumer financial protection. that has been a target. >> it has been. there is a case pending before the d.c. circuit of federal appeals court in washington dc in which a mortgage lender p

called phh, that it had arranged for kickbacks and mortgage reinsurance. it is a rather complicated case in the underlying sense. but the agency imposed a $109rgement penalty of million. phh went well beyond trying to get the judgment against it reversed and challenged the very constitutionality of the cfpb. cfpb was set up to be a consumer watchdog. the whole idea was to protect consumers and now they are getting pushed back. >> the argument against them is that they are two independent. , theing unaccountable director of the agency, as you say, is able to draw his funds from the federal reserve.

the appropriations process. secondly, can only be removed for cause by the president. he does not serve at the pleasure of the president. he cannot be removed. secretaries can be removed any time. this is being toggled together into a constitutional argument. the panel of the d.c. circuit that her the argument said it was quite sympathetic to the constitutional argument. what they will do about that is not 100 set clear. certainly, in theory, there is a next essential -- existential threat. and the focus on uber fight on how to classify its workers. likeer and companies it contender employees are independent contractors.

in a legal sense, the boss of the workers. david: what would it mean to uber if a court said, they are not independent contractors, they are your employees. how does that change the financial picture for uber? lawince the 1940's, u.s. has provided a host of protections are employees ranging from benefits like minimum wage and overtime to the forceto band together and a company to bargain collectively with you. so, it would be a real change in the business model. carol: to the workers see themselves as partners? what are the workers want here? >> there is a range. one driver was quoted, they they are the boss. other drivers have said, this is not a small business i am doing by being an uber driver.

i have no control of how much i charge or can give my business card the next time you need a ride, or any control of any kind of things a small businessman would have over the business they were running. we are at the early stages of this. you have had it will come down in different areas and slip on appeal of one side or the other. people get unemployment benefits? the teamsters have been one of the key forces in putting forward this bill that passed citywide in seattle that would create a union-like structure for these drivers. it would not change their status under the law to employees, but it would create a whole new set up where people, even if they

are treated as independent contractors, could come together if they show they wanted, force a company liked uber to negotiate with them. that is a model now being considered in the legislature at the statewide level in california. david: next up on "bloomberg businessweek" how turntables are becoming --

♪ back toelcome "bloomberg businessweek." there is a story about a begin cheese maker. david: vegan cheese? [laughter]

carol: right, there are a lot of vegans who would like to have cheese, but they can't. anything connected with an animal. this is a company based in silicon valley. they are kind of disrupting the cheese market if you will. instead of using animal enzymes, our stomach enzymes, they are using plant enzymes and getting equipment from france to do it. it is really interesting. they have caught the attention of folks from whole foods. they did a personal tasting with john mackey one of the ceos of the company. david: they plan to grow if the vegan cheese catches on. carol: it is a huge market. less than 1% of the cheese market. they are hoping to grow and the popular among various consumers. , a company profiting

on the popularity of old-school turntables. largestley is the turntable manufacturer in the world. last year, they sold one million turntables. that is the fifth of the market. david: they have gotten a lot of people interested in the final -- in vinyl. what is their bread-and-butter? >> these are the turntables you see at urban outfitters, target, walmart. they are the inexpensive, retro turntables that are plug and play with speakers attached and don't require any setup. andbuy it, take it home, put on your copy of "dark side of the moon." david: a point of punctuation was when they got a call from

restoration hardware. what did that mean for the business? >> it changed it more for the dynamic of the customer, the demographic. prior to that, modern marketing concept was using the brand to sell turntables to the group that was still using them. this was older baby boomers who were nostalgic and wanted to use records piling up in their basements and garages. so they sold old wooden jukebox-style turntable that appealed to dad. they were selling it at the skymark and jcpenney. when restoration hardware came calling in 2000 and one as a client, what it did, it started promoted and marketing the crossley turntables as a fashion femalery for largely buyers. that was one of the factors that revival into the mainstream. david: this new turntable, you

mentioned, vinyl has become a fashion accessory for a lot of people. is there evidence that with a higher end turntable that they will be successful and people will want to spend more money on a crossley turntable? >> is certainly remains an open-ended question. because of their mass success selling inexpensive turntables, has a reputation of a company that sells fun, but cheap stuff. in the audio file community, those who really know their stereos and are serious record collectors, they are kind of spies because they can do damage to records. what crossley is doing is trying to get those users, those familiar with their branding already, to trade up and stay with the brand. they had a huge installed user base something around 5 million crossley users over the past decade bought their turntables. -- wolf thosetake

people make the leap when they decide to trade up and gain a greater appreciation for fidelity sound, or have the disposable income to do this? how gps may be rewiring our brains. all that straight ahead on "bloomberg businessweek." ♪

♪ "bloomberg businessweek." welcome back to david gura --welcome back to "bloomberg businessweek." i'm david gura. carol: i'm carol massar. reporter.e is a circuit hasideogame been dominated by a couple of big games. , whiche is counterstrike will be the subject of turner's new sports league, that will be the first entry into making television. it?d: what is [laughter] standards, it is easy

to understand, there are two terrorist team and a counter insurgent team. you are trying to get of it -- you try to get rid of the other team's layers. it is very popular. gains thatf the main is used in these tournaments. carol: they have virtual weapons that has created a secondary market. there is a lot of gambling going on as well, right? e of gambling that goes on is interesting. they use virtual weapons you can win in the game, or by through websites. those are used as poker chips. so come on these websites, you can say, i think team a is going to win. it all seems very nice and abstract, but there is a link would come a secondary market

where those guns and knives are at cash value. you are essentially betting money even know it feels abstract. david: is this raising eyebrows with regulators? as far as i can tell, it is not raising eyebrows among regulators, in part, it is really down there in the subculture. really putrts, they it in everybody's face. , peopleves football understood that. in this, you have to understand what this professional videogame circuit is. processd of elaborate through which you are taking guns and turning them into money and out of money and betting on things. it is a little bit mind blowing. carol: the gambling is illegal? >> it is unregulated. sports betting is illegal in the united states. seems illegal.

it has not been tested in united states. valve doesn't say much. they has set up a system that has allowed this to happen. in the past, you have seen other game companies really make it impossible for you to take items within the game and get cash for them. they have made it against terms of services. valve is on the opposite way. they actually encourage the cash trade with their weapons. carol: they promoted? -- they promote it. ? >> they encourage it. they has set up a system where it is possible. carol: a new report how gps may be changing the opposition of our brain. >> according to some very ,uggestive research fundamentally altering the structure of our brains. if you think about it, we have been basically shutting them off

and allowing gps to tell them where to go, which is often why we end up driving our cars into lakes. [laughter] david: do you even have a map in your car anymore? carol: no. i put in addresses and kind of follow it. the history of gps is pretty interesting. >> it was invented by the air force. they decided not to fund it because the already had a navigation tool. good.aid, it is pretty the military tried to keep the best version for itself and give civilians a degraded version of it. it wound up not being that big of a deal. companies you know light magellan -- companies you know like magellan, if you aren't launching a missile, you can use a downgraded version. carol: we will see you back your next week. ♪

♪ coming up on "bloomberg best." shaped the week in business around the world. result -- political crisis -- brazil's political crisis turns more contentious and investors mow the latest moves from the ecb. >> the ecb has now done enough. >> intel's cutbacks and alphabet's outlook. we cover the week in tech from a to z. >> profit growth. imagine that. >> no, they gr