>> we're in new york. >> the power of facebook live. the realignment of the american political parties. >> all that is ahead on bloomberg businessweek. ♪ with the are here editor bloomberg businessweek. when your opening remarks the reporter argues that brexit will not stop globalization. we are seeing is trade ties deepening. ifthe argument is that

brexit happened it looks like it is going to. if trump gets his way and is more of an isolationist in the as., we are at disadvantage. the rest of the world's deepening their ties. china is trying to launch its .wn free trade zone there is a southeast asian group of nations that are forming trade ties. evenlization will not stop though brexit has happened. --id: given the reddit rhetoric we have heard, if congress doesn't pass that will we lose -- lose ground. as you look at the trade picture, there's the u.k. stand to lose out as a result of this? >> it is possible they could. if everyone is tied up into trade, there is less room for the u.k. and the u.s. to

maneuver. that theossibility west will lose out. david: we are still talking about brexit. onr feature section scotland, leading the scottish national party. carol: who is she, first of all? ofshe is a long time member the s&p. she was working her way through the ranks for a long time. on with the prime minister etc.. to the north there is a lot going on as well. she is basically the face of scotland right now. she believes that scotland should not sever its ties with the eu. david: displaying some reasonableness you might say? thehe has seemed like grown-up of the bunch. there was a committee that

suggest that maybe she should be in charge of the whole thing, given all the maneuvering to the last few weeks. she has her eye on a long game. she has been campaigning for scottish independence for a long time. david: since the last referendum. >> said she was 16. she was the face of the campaign during the lead up to the referendum whic h she lost. will there be another referendum? will they win this time? it is hard to know she is trying to pave the way. carol: i feel like she been thinking about this issue for a long time. >> she definitely has a plan. the question is whether there will be a referendum and if it will come at the right time. there are people that think she doesn't have enough said court yet and she would rather wait

until she was sure. will he get along with the new uk prime minister? >> we don't know that yet. incredible conflict between the african-american community and police forces run a country you have taser standing by to supply body camera's to police forces. >> obviously, there's been a huge amount of tragedy in the last few weeks. even after ferguson, some of the families of the victims were saying that if cops wore cameras on their collars or pockets then there would be fewer questions about what was going on. it would actually deter police over reacting to things, or behavior. that is an open question. the result early evidence that there is less violence and there

are fewer problems between cops and civilians when the police are wearing the cameras. taser, the company known first on guns is basically capitalizing -- known for stun guns is basically capitalizing on that. they created something called a taser cam. this was in response the fact that tasers were being deployed all over the country. the company started facing screwed me for the devices. they thought of they could record the use of the taser it might protect them against in justifyingelp why the cops use the devices. they created these add-on modules. that would record once the device would use. it only recorded a short time. you basically ended up with a highlight reel of people getting

tased. to record aey need whole situation to tell why an officer was teasing someone. that led them to develop the first body camera's release back in 2009. to january,us back 2015 at the taser headquarters and the ceo and how he made a big announcement everybody who worked there. i will go back to 2014 at that is ok. that was what they refer to is the ferguson incident which was one of the biggest incidents about police officer involved shooting to the u.s. a young man, a black man was shot in missouri and there was no video evidence of it. that brought a lot of attention to body camera's and whether or not they should be deployed nationwide. their super 2015

bowl. it was justice department funding for body camera's, and a lot of public demand to do this. so at the beginning of 2015 there was a big sales meeting among the staff at their headquarters. office ina futuristic arizona to celebrate this new rebranding there were doing. they call their body camera and digital evidence business axon. they wanted to promote the brand internally. theceo repelled in from ceiling in their office to the theme song for "2001, a space odyssey." it was this big, joe malik moment. he had the logo for axo -- dramatic moment. he held the logo for axon. they had been working on this

cameras for a really long time. all of a sudden there was a huge market for them. it was an exciting moment. definitely internally for them in the company was the company was evolving into a body cam company. david: we talked to rob about the cover story on tasers going to cameras and the cloud. b: this is a story with had in the works for weeks, maybe a month or more. every so often when we have something in the pipeline and so when we originally conceived the art it was going to be this advertising sales treatment because part of the point of this reverse this business is booming for this company. we would shoot these as luxury products. things.e news changed with the news that happened, we knew we had to change the tone. we simplified it ended these

moody photos on black. insort of edited the story time to get it out this week. we knew that we wanted to do a more straighter treatment. carol: when the first of the coverlet didn't immediately know what it was. it speaks to the unfamiliarity of these body camera which are becoming more popular. as an object it is still something new. robert: definitely. it is nice to introduce people to what this thing actually looks like. than theut 300% bigger actual scale. the headline is purpose the what up next to the lens. you know exactly how the device is laid out. carol: i feel like there is texture to the cover here. robert: it is the nature of the device. it is a sort of zoomed in photo. it is not incredibly detailed

but you get a lot of extra on it. carol: thank you come up next mark zuckerberg grapples with the unprecedented inquiry of facebook live. david: the nfl hunts for a new breed of athlete. ♪

welcome back to bloomberg businessweek. you can find us on radio and york and.m. in new boston. 960 in the bay area. david: how facebook celebrity may turn facebook into a news company whether it likes it or not. carol: we talked to reporters. max: mark zuckerberg in this the guy did to stop that and start personal sharing back to

the forefront and created this live thing when he announced a live he talked about all the great uses you can do with it. there was a baby bald eagle cam and he was excited about. these tools come out and people use them for other things. that is what we saw last week in extremely genetic fashion. carol: in minneapolis and elsewhere. max: that is right. basicallya shooting, a black man died on camera. this went viral. it set off basically a nationwide conversation on race much of it playing out on facebook live. some of it was tv networks we running these things. all of a sudden facebook was right in the middle of the new cycle. david: i imagine people will discuss this for a long time for the many people of written about this incident saying it crystallized for them that there is a problem in this country being able to see that in a way that you wouldn't have been able

to see months or years ago. rdx: part of it is this wei that controlled space facebook has created. with the given as a place where we see wedding photos at is tightly curated. when you see violence in the most intimate way possible it is very moving. that is why the video was so powerful. carol: that is what we're getting now. max: right. today, theen the app first button you see is that live button. we will see more of that. we don't know exactly why diamond reynolds started taping. carol: she was the girlfriend. know.ight, yes, we don't part of it was to document. part of it was she was genuinely afraid. she thought if it is live than a it will be harder

for something to happen to me. there are implications of how this could use and unfold in real-time post on facebook is scrambling to figure out how to deal with this. clear-cut case of public interest. we can all agree that we are better for having this out in the world. there are other instances that could come up in the future that may not be so clear facebook hasn't figured that out. david: it may be think about pieces written about you to be few at how the company has aople literally watching large quantity of the footage to determine what should stay up and what should not. how difficult will it be for different -- company like facebook to arbitrate this? max: superhard. had a big team of content auditors to have this kind of very broadly written content policy. things like policy and also violence and bullying and hate speech. it is the job of these people

to figure out -- certain videos are very clear-cut. others where it is violent but maybe there is a good news reason to do what it is up to these people that are in places austin who ireland, have to basically in real-time say does this violate our policies? those are hard calls to make. that very welld paid journalists make all the time. in real-time it can be really hard. imagine somebody in india trying to make a decision about an event going on halfway around the world. this was pulled down originally. know why, facebook called that a glitch. that could mean any number of things. -- was to think it is

probably in the moderation area that it broke down. we don't now and facebook has not said. the bottom line the dow the rhythms are written by humans. somewhere, somebody has to decide how much violence is too much violence. that is just started to happen. david: up next, is donald trump a fluke or the future of the republican party? ♪

carol: welcome back. this week's politics and policy section is devoted to the upcoming conventions. david: peter talks of a both parties are entering historic realignment. carol: we asked him what the

writer donald trump means. peter: over the years the republican party move politically to the right at the same time there was a fragile coalition with the libertarians, the marijuana smoking anything goes. the religious conservatives all about opposing abortion and gay marriage. then there is the business community, which has don't bother me with abortion and marijuana. just get my taxes down. carol: open up markets. exactly first of these groups didn't play well together . they all sort of agreed that the small government and low taxes. that was all they could rally around. trump comes along and has a tax cut but also has let's preserve social security and medicare. major defense

spending. it doesn't add up. many people don't believe he is a small government kind of guy. the party exploded. are publicves opinion surveys in politics, taking that if you look at that stuff it portends that this was going to happen. david: the research centers that back in 2014 when trump was not running for president they went and looked at adult americans nonpolitical and asked them like each gate is a duality. to you believe that immigrants are good for this country or not so good. they used those numbers to create clusters of voters and then one cluster of bystanders. then they said what is the political affiliation of these clusters? two of them were business

steadfastves and conservative. others were neutral to democratic. you can kind of look at that as a roadmap for where we are today. for example, the business conservatives while both leaning republican disagree on a lot of things as we were just saying. you wonder, do the business conservatives belong in the same party? it is not so obvious. write aow do you cohesive party platform with the election just a few months away? said: donald trump has clearly that you guys go right whatever platform you want i will run this campaign and i want to run. carol: that doesn't work. ther: not if he wants support of the party. he just seems to have said you guys can come with me or i will go it on my own. on that note, i

interviewed many establishment republican politicians asking if they support donald trump a stop almost invariably, they say i will support the party's nominee. how long will that continue? how long will they say that? peter: i talked to the former house majority leader the networks in business. who hasne of the people not signed on to trump at all. he is not one of the people who said to hillary. there are some that have gone that way. you vote forcan hillary clinton who is going more to the left to capture the bernie sanders and elizabeth warren vote. it is a lot of up in the air right now. david: coming up, we ask you democrats can become the party

of business. ♪

a

david: welcome to bloomberg businessweek, i am david gura. carol: i am carol massar. david: a government playground for swindlers. carol: ahead on bloomberg businessweek. ♪ david: we are here with alan pollack. something in the global economic section about chinese who have moved to big cities and are now moving back. what is causing that to happen?

people left their families, in many times left their children and went to work in factories. now they are trying to go home and they are more -- there are more opportunities. china is encouraging mess, helping them start small businesses. china is trying to make some of these areas into tourist destinations. carol: what does it mean for all of the workers in the city? ellen: there still are plenty of people there, but many factories are not as busy as it has been because manufacturing has moved to cheaper locales. to become more of a service sector economy and consumer driven economy so they are really encouraging these other kinds of businesses. david: how difficult is it for a

chinese person to move from one location to another? ellen: it is not so easy because there are registrations that make movement much more difficult, but it is made easier as they are encouraging businesses. someone was starting a fish farm home and hoping to start a restaurant, and hoping tourists would, and pay good money for those things. it is not easy and people do not have a lot of money to pick up and move. carol: they want to go back. ellen: they miss their families. have a storyys about silicon valley and the automakers vying for control over information of our car. each other,need they do not need each other, but in this case it is about data rather than the cars themselves. new cars can do all kinds of

things and correct all kinds of data. there are even cars that can weigh you. cars can be plugged into apple , but a lot ofpps car companies are trying to develop their own data services because they do not really want you relying on the silicon valley companies so much. the question is, who is going to be able to harness the data because eventually they will be able to sell you stuff on your dashboard or screen, and you will drive by a staples and get a coupon for staples or something like that. the question of who ultimately will control the data could affect a lot of things. david: there is a story about a guy who ends up swindling some of the biggest energy companies and the world out of tens of millions of dollars. ellen: it is one of those criminal wrong kinds of stories. can sell credits

for making biofuel and they can be separated. it is a murky marketplace and they tried to keep track but it is not always easy. there has been more than one guy but we focus mostly on one who ins withoutading r making the biofuel, which is bizarre. carol: a lot of great pieces to that story. we spoke to brian grilli about it. business got into the years ago and built a factory that was to produce biodiesel fuel. that would be purchased by diesel producers who needed to biofuel, fuel made from waste and poultry fat and such dieselat into their because the government requires it. he built this factory and he

produced a little bit of low quality biodiesel and he finally gave up. but he still made a lot of money because the government program that requires us to blend lots of biodiesel into diesel allowed him to do it in effect, under wraps. david: he was able to do this ? howsomething called rin's was he able to organize this shell game? the government requires refiners to blend a certain amount of corn-based ethanol and biodiesel fuel into gasoline and diesel. this is billions of gallons a year and it varies by producer but it is a lot, and they have to blend in so much. if for one reason or another cannot hit the mark, they can buy these credits, which are called renewable identification numbers or rin's.

reducers of biodiesel generate these credits for every gallon of biodiesel they produce. each gallon is attached to a 38 digit number. so they can strip these numbers off, they can sell the diesel -- excuse me, the biodiesel to say marathon, and they can strip the number off and sell that in a market for these numbers for refiners who need these credits to make it up to their minimum for a given year in blending gallons. so they have some value. the value over the years has varied from $.30 or $.40 a gallon to a couple of bucks a year ago. recently, just over a dollar. carol: it is a legitimate business. it was legal, but rifkin -- >> and the credits are designed

to give people some flexibility in what they do with their refining because refiners do not really love this whole program, and they have made efforts to get rid of it but yes, it is a legitimate business and fraud comprises may be under 1% of it. but for sheer moxie, these guys like phil rifkin who have made tons of money off selling ,ssentially made up numbers never produced any biodiesel, just sold a bunch of numbers, and not to people who are innocent and do not know what they are doing. he was selling these two next on and bp and marathon and konica phillips. david: we talked to reporter kathy burton. >> traditionally when people look at the bond markets they say those are usually smarter, so when they see yield so low they think there might be a problem.

in fact, things are not great. there is growth but it is not great. there is really no inflation which is a problem. jobs growth is good. so it maybe is telling us something that maybe it is not quite as high as the market is saying. david: has the notion of what a haven is changed in light of this? kathy: it does not seem so. it's seems like people keep buying these bonds. carol: talk about the bill players, -- big players. say, whatu have to does bill gross say? kathy: he says it makes no sense. he caused -- he called it a black hole and says there is no way to get yields. he is certainly not a person betting they will go lower. is he in the minority, is

to represent the mainstream view for a lot of fund managers? split.it is kind of a lot of hedge fund guys will not go near sovereign because they have gone so low. in the short-term the prices can go back up very quickly. some of the mutual fund guys say, they could go lower. carol: i wonder if we are in a bit of a predicament. easier forow make it sovereign nations to finance their debt. if it starts to go higher that can become problematic. kathy: that is exactly what one of the managers that i interviewed said. he said we have to keep rates low because all of this debt will get rolled over and you wanted to roll over at that same level or lower. carol: 12 hillary clinton win wall street's vote? david: buying bikes made in detroit. ♪

♪ carol: welcome back to bloomberg businessweek. david: you can also find us on the radio on serious xm and a.m. 1130 in new york, 99.1 fm in washington, d.c. upcomingcus on the republican and democratic conventions. about earlier we talked the role that donald trump had on the republican party and now we will talk about hillary clinton. carol: we will talk to peter coy. peter: america is a land of contradictions of many different interest groups.

a party that appeals to just one interest group is always going to be a minority party. if you want to win, you have got to pull people into your big tent. there is a message that can appeal to some business people and some union members and some carol: it has worked before to some extent. peter: it has. tent, youeaves one pull them into the other tent. i do think that clinton can have a pro-business message without seeing mass defections from the democratic party. david: i want to see if you share a sense i have of the way the democrats have campaigned. i think it has been fairly reactive. you will have democratic politicians reacting. is that at their own peril that they are not doing more to lay out what their stake in the

terrain is going to be? peter: that is interesting. i think hillary clinton is not just reactive toward donald trump, to bernie sanders. he is trying to be the centrist and the centrist is always going to look kind of bland compared to the people who are throwing the smoke bombs on both sides. and she runs that risk anyway because she is seen as kind of mechanical, robotlike, super cautious. she has certainly a legit platform. by realll vetted economists and so on, so i think she has got something to say. it just gets lost in the media. david: perception of it. carol: in terms of donald trump alienating a lot of the latino voters, which would be so important in some of the swing states. peter: the latino vote is big

and growing. up until this election you could imagine a scenario where as jeb bush was hoping to do, --ublicans would drift people would drift toward the republican party in the same way that other ethnic americans, italian or irish americans in the past -- carol: we have seen that. peter: it has happened. expressdid not always themselves as latinos. why should a mexican-american call himself a latino? it is a matter of self trump isation, so the latinoed identity on people who may not have had it and it is negative toward the republicans because

they are perceiving themselves, even second and third generation hispanics suddenly say, you do not like me? i do not like you. carol: that can stick beyond this election cycle. peter: there is a phenomenon in physics, like a magnet. hunk of iron and put it in a strong magnetic field, it monetizes. when you take it out of the field it is still a magnet. david: a profile of zack #, building bikes in detroit. carol: we spoke to tim higgins. he went to detroit and spent a long weekend looking around and came to a couple of decisions. the city did not need any more bars so perhaps you could tap into the manufacturing muscle of the city and make something.

it had been a long dream of his to make something and he kicked around the idea of bicycles. he had the idea that they fit into a world and maybe he could make a citizen icicle in the city -- city bicycle in the city of detroit. carol: go back a couple of years, there was almost no bicycles manufactured in the united states anymore. the 1980's really saw the beginning of the end for us-made bicycles, and like a lot of products,rojects -- manufacturing went to asia. manufacturing icicles in the u.s. is odd and quirky, and he admits that some people think he has this goofy idea, so just getting going with something requiring patience and determination. the skill set, he had to train has workers and find people who

could use manufacturing know-how and create bicycles. carol: detroit bikes is his company but he actually created a prototype in his garage, correct? long time trying to figure out the bicycle business from his garage and worked out prototypes. he decided he had the opportunity to buy out a factory, they are cheap there, and started the process of trying to figure out how to make a factory operational. carol: how did he buy a factory? he came from money, did he not? stepfather was an oilman in calgary and a co-owner of an nhl hockey team. he came from money and had invested when he was a young man in various things and created money of his own. through that process he got into the bar business in calgary and hecouver, so he had money,

had things to sell off when he came to detroit. david: the nfl wants to recruit players from living rooms. ♪

♪ carol: welcome back to bloomberg businessweek. i am carol massar. david: i am david gura. the nfl may be recruiting players from joystick to pigskin. gamesis people playing ranging from games you have probably seen before, sports games, all the way to games with potions and sorcerers and goblins, things if you watched you would have no idea what was going on. it is a huge industry. some of these matches on digital streaming get over a million of americanh a lot sports and entertainment people would love to have for their average viewing. .t is a massive business

sponsorships, there is tv rights. it is a fully fledged, heading to be in the chore sports -- getting to be mature sports. david: where do leagues see value? eben: the real value they see is in the demographics. your average player and user is a young, mostly male kid who does not really consume tv in the way that we grew up consuming tv, and that is a valuable demographic for sports teams because their entire demographic is pushed via tv. if you are not getting that regeneration of fans via a tv broadcast you need to find other ways. carol: you write that the nfl is actually adding professional players not on the field but in the gaming world. eben: you are already saying it in european soccer.

ea., you have seen them sign players and fifa wearing that jersey for that team. might be playing it -- paying you to play as man city so when they win in the online version it is their team that is winning. it is a form of marketing. it is a way to make their team a little more prevalent in the eyes of young males who are doing this more than they are watching soccer on the saturday morning. david: we mentioned the nfl, what exactly are they doing? eben: they are doing their due diligence on this exact thing. the big nfl game is madden. carol: that is a huge game. david: she has some experience. carol: i had four brothers. eben: madden has

professionalized their tournaments in the last year. they just announced majors and it has a million-dollar prize purse. you are going to see some nfl teams getting involved. carol: what are the financial involved in east sports and the potential for the nfl? eben: they are huge. of having a seven-figure prize purse is not crazy anymore. it is something that happens a handful of times throughout the year, so there is big money involved. when you have eyeballs, you have sponsors that want to capitalize and certainly as matting grows, i think you will see nfl teams getting involved. sponsoring a player to go compete in their jersey and second of all, hosting events. they sell an nba arenas but if you can sell out and nfl arena, when i give that a shot? i think when you see these ea

sports majors, you begin to see them in bigger places and that usually means stadiums owned by nfl teams. we have reached an arrow where there are full-time madden players. the way they monetize themselves is not just in the winnings. they also have youtube and twitch channels where they get paid per prescriber. this guy has one sponsorships are ready and gives online tutorials that he gets paid for. carol: bloomberg businessweek is available online. david: what was your favorite news? carol: i enjoyed the cover story on taser. i have no idea they were involved in the cloud business. they are a technology company and a lot of police forces are using them. david: i liked the profile of the guy who swindled the u.s. government. made tens of who

millions of dollars and now he is in jail. carol: there are a lot of great reads. we will see you next week. ♪

♪ coming up on "bloomberg best ," the stories that shaped the weekend business around the world. equities soar while bond yields drop. boe resists a rate cut and earnings season begins with banks in the spotlight. >> is a case of no news is good news. erik: a new prime minister takes over in britain. >> we will forge a bold new positive role for ourselves and the world. >> it doesn't sound like she is a huge proponent of austerity. >> what he said is well, well done. you won. you fix it.