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tv   Bloomberg Business Week  Bloomberg  July 23, 2016 7:00am-8:01am EDT

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carol: welcome to "bloomberg businessweek." an cracks down in turkey. hillary clinton's foot soldiers. inid: all that and more "bloomberg businessweek." carol: we are here with the editor of "bloomberg featureweek." the story on turkey. a crackdown on journalists and teachers. >> this is a story we had in the works before the coup.
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an opposition type newspaper in istanbul and its editor, what it was like to run a newspaper that felt free to criticize the regime when so many other papers were being cracked down on. be inat it was like to that position. and then the crew started and suddenly, our story took on a different dimension. the editor we were writing about was one of the people on their list of people they don't like post-coup because they are cracking down more on opponents. carol: you have never been great with journalism. >> there is in a free press in turkey. -- there is not a free press in turkey. it is really complicated there. the guy we focus the story on is no longer in turkey. david: you approach this story
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in a different way. the role of the opposition, what it's like to be in the opposition. turkey?that changed in >> they are cracking down on many different aspects of society, putting judges on lists for targeting, journalists on lists, teachers on lists. they are using it as an excuse to consolidate the power of erdogan andre t prevent another coup. david: you look at the pokemon go phenomenon. carol: david is playing it. we focus somewhat on what this means for nintendo. much on what this means for nintendo. >> the company that developed google.e is niantic of
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google earthed on type projects that have translated well into this game. it is sort of son of google kind of thing. you guys talk about donald trump and his support in silicon valley, specifically peter teal. >> we have a fascinating story about peter thiel, his own kind of guy in silicon valley. mention a statistic, something like 70% of donors in silicon valley give to democrats. is supporting donald trump this year and spoke at the convention. , he is gay,igrant he has not been a traditional republican. he finds his own way.
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we talk about why he would be supporting trump and why this might be good for his business. david: what about this public platform for him? the role he's been playing in ae lawsuit against gawker -- very prominent, big role for him. >> it is. some people suggest he actually wants to embrace chaos right now. he wants to bring on trump and wipe the slate clean in washington. he thinks chaos is kind of a good thing. he is a disruptor. one of the cofounders of paypal --ch changed a lot of the changed the way a lot of people view money. it is part of his disruption strategy.
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he is a very accomplished chessplayer, but he uses a move that only grandmasters use. to shake up the game. best asknown, i guess the godfather of the paypal mafia. he founded paypal in the late 1990's, they sold to ebay, he got very rich. of the key figures of silicon valley are tied very closely to peter thiel. the thing that is crazy about him, he is sort of on a different planet ideologically. your average tech person is a mix of libertarian and socially liberal. is a radical libertarian. which makes him a curious fit for donald trump and a curious fit insulin valley. -- in silicon valley.
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gay.id he was proud to be a lot of republicans came out with a statement shortly before saying the platform was the most it had never been and the fact that peter gets up there and says he is proud to be gay, that is super interesting. he also happens to be pro-marijuana. not the usual thing for a republican party convention speaker. have -- youting to start to see this crazy mismatch. himer media in 2007 out of -- outed him or published the fact that he was out to certain members of his inner circle and he went away quietly and years later, it was revealed that he had been secretly funding
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lawsuits that ultimately led to gawker's bankruptcy. he is at once this supersmart intellectual but also an operator. you have to see this speech in both of those terms. putting forth his agenda and trying to protect his power in a lot of ways. david: how does he feel about immigration and taxes? >> it's interesting. a taxes, he is sort of like libertarian. immigration is a cover one. that's tougher one. tech companies are more dependent on immigration than any other type of companies. the tech community often avoid politics. over the past few years, we've
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seen a lot of tech companies, , they havebbying gotten more involved. tech people were traditionally proudly a political -- apolitical. the whole tech world has moved much more into regulated spheres. s an investor in space x and their main customers if the government. trump is a polarizing figure. insulin valley, he really wrangles people. -- in silicon valley.
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thiel's support for him is considered politically incorrect by many in his own inner circle. we talked to rob vargas about the republican national convention. talk about going black and white against this flashy backdrop. >> he specializes in black and white. deliberateuite super we love his black and white work. it makes it a little more timeless and makes it a little more iconic and we really like that about it. in certain respects, you don't know if it's 2016 or 1950. carol: what was the message you guys were trying to get across? >> there wasn't a deliberate intention behind it.
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we want people to read into it however they want to read into it. the process this year was a lot different. it is up for interpretation. we associate red with republicans and blue with democrats. you choose peach. maybe -- a town, fleshy tone, maybe trump tan. that was delivered, nothing to read or to blue -- too red or too . or toohing too red blue.
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john captured a lot of big republican names. crowd photoout this released stood out to us because --is a somewhat favors crowd diverse crowd. trump sign,olding a and captured this very special moment from the people who are a part of it. we obsessed over all the personalities and trump, but sometimes you forget these people are there because they are being supported by their base. there was something interesting about that, turning the lens to the people supporting the big personalities. carol: just ahead, the mormon millionaire looking to build a community in vermont. walmart's plan to bring manufacturing jobs back to the u.s. is off to a smooth start. carol: kaiser permanente making the hospital of the future.
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david: welcome back to "bloomberg businessweek ." walmart discovers it is not that easy to bring back thousands of manufacturing jobs to the u.s. u.s. head of operations at walmart came out and said they feel what is good for the u.s. economy is good for walmart. climbing out of the recession at this point, they were going to spend $250 billion more over the next 10 years on goods that were made in america. carol: that's a lot. well, walmart has happened
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trillion dollars in sales every year. half $1 trillion in sales every year. it felt they wanted a strong u.s. economy, they wanted job growth and job creation in the u.s. that was good for their business and is also good pr for them. they were the retailer, going back a few years come everything was "made in america ." >> that is the great irony in this. --mart has been blamed walmart was famous in the 1990's for pushing companies to lower negotiating ruthlessly over a penny. got pushed companies to
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overseas and move production to china to meet the demands of walmart. walmart has been blamed for sending hundreds of thousands of jobs outside the u.s. and here they are, the only retailer making a major push to try to bring made in the usa products back. carol: is it working? >> there is a group walmart is working with, they tallied up the number of jobs that have been created based on public announcements. we are at about 7000 jobs. >> is it too early to tell? can they actually make a difference and create a lot of jobs by doing this? this $250art spends billion, they will be able to create 250,000 jobs in the manufacturing sector. when you count the indirect jobs , it could be as much as one million jobs. these are estimates and
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projections. boston consulting group said it is hard to calculate this, but if it all goes as planned, we could 250,000 manufacturing jobs from this. david: kaiser permanente has a plan to become the most innovative health care organization in the u.s. >> we are interested in figuring out how to use technology to prepare for health care 10 years down the road or even further. they have this huge, huge warehouse where they are exploring this. >> they have used this to create . template hospital they built these hospital rooms with cardboard and people could rearrange the layout however they wanted. when they got a little more they try to build the
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hospital room and put in furniture and build a mock hallway and asked 1000 stakeholders to come in -- they even had the janitors come into test whether the cards could fit in and out of the doors. money by having this template hospital in place and what's everybody signed off on it, they went ahead and build these hospitals cut and paste. technology --out this is about kaiser permanente improving the bottom line, saving costs down the road. we talk about health care costs and how they keep going up. it has to be all about cost control. >> absolutely. is looking ahead to the
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population aging. as people age, they tend to have more chronic illnesses. that you do a lot of the budget when it comes to health care. a lot of thep budget when it comes to health care. they have 59 million virtual exchanges in the last year. whether that is e-mails, ,elephone calls or video visits more than the total number of in person visits last year, about 50 million. people don't have to come in for services if they don't need to be there. they're looking into different ways to help people stay healthy at home. carol: up next, a 19th century sustainablepiring a
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community in vermont. ♪
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carol: welcome back to "bloomberg businessweek." a potential mormon utopia in vermont. we discussed the multimillionaire behind the scenes. >> she was putting together a town report and saw this series of land purchases in four towns that were surrounded -- joseph smith was born in vermont. she started looking into this company and found out that david hall was behind all of this. he has utopia plans, based on documents created by joseph smith. this plan involved in these communities, 20,000 people. that is the hope.
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it is supposed to be built on 5000 acres and have 20,000 people. the whole plan is based on a vision that joseph smith had in 1833. the endoscope fellow mormons and into the woods -- he two fellow mormons went into the woods, they were hoping to find something similar and they jotted it down. the mormon church has never given it much significance but david hall founded and has been studying it since the 1980's -- found it and has been studying it since the 1980's. carol: it is a closed off, sustainable community. there are businesses, places to socialize. >> everything is right there.
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you be able to walk everywhere, everything is about half a mile away. the whole place is surrounded by nature. into drilling -- that is also right there. carol: he really wants to build 1000 this does. -- 1000 vistas. >> he says he has 150 engineers already working on the plan. they are not at all happy about this. nearly $5dy spent million scooping up land, more land than central park. it scares people. david: next up, hillary clinton's door-to-door
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canvassers. ♪
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david: welcome to "bloomberg businessweek." rio is up for sale. carol: spotify's plans to go public. it is all ahead on "bloomberg businessweek." david: we are with the editor of "bloomberg businessweek." so many must reads in this issue. company wehell, a associate with oil principally come in now responding more and more to the threat of climate change. >> the company is all in with a transition source
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of energy as we move toward solar and wind. , easiergas is cleaner to turn plants on and off and they are looking toward being more of a gas company than an oil company. a lot of the big majors are moving in that direction. more of what they are seeing out of the ground or pumping out of the ground is gas than oil. thely, the only one where stake in gas is lower his bp. is bp. others avenue -- all the others have increased their gas output. it is a complicated business. you have to build terminals, liquefied natural gas. -- liquefy the natural gas.
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spotifyou talk about and their plans to go public. there is a huge valuation out there. will that justify the valuation? >> that is the big question because spotify is not profitable. for investors, there is reason to be skeptical because they are negotiating with labels. the big question is what percent they give labels. that is always the big question with apple music, etc. those negotiations are ongoing. know what the profitability outlook will be for spotify. david: this is a really hard line of business. >> a really hard way to make money. you have to compensate the labels. this has been a big controversy
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-- there are artists who are unhappy. it's an ongoing part of the transition from vinyl to streaming and to services like spotify. the cover story, a wonderful photo essay on the republican national convention. >> we visited the convention, obviously. we have a series of really wonderful black-and-white photos. partly of the crowd and partly of figures you will absolutely recognize in not formal poses. did not visit the convention if you were watching it on tv. it tells the story in a slightly different way. carol: we caught up with the photo editor. david: you are looking at the rnc, what is the theme?
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>> we led with the notion of getting the unseen convention. column a recurring called hidden hand. operate inple who the ecosystem of the large political infrastructure. we were looking for back page moments, gladhanding, things like that. our photographer has been ,hotographing the convention really looking for those things he will not see in the daily news cycle. carol: what about the photo of donald trump? david: was it a given that you include him? >> i guess it was. nobody knew he would be at the convention on monday. it was a bit of a lucky break
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for us in one way. there is a huge scrum of reporters -- 20 or 30 photographers bombing the vip section. trying to find a moment where you can get to see the candidate is a pretty lucky opportunity. but i think you got something that is pretty unique. stone is an informal adviser to the trump campaign manager a fairly outspoken critic of hillary clinton. section ofhe media the arena doing interviews, a great moment of like the wizard of oz, the man behind the curtain. suit. on this white
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takes you back to a totally different area. carol: it almost looks kind of creepy. a flash froma camer below casting this shadow on him. carol: thank you so much. david: the republican national convention was not the only story in politics this week. bloomberg businessweek also profiled hillary clinton's canvassers. carol: the are going door-to-door trying to win over working-class voters. an organization that claims 3 million members with a focus on white working-class nonunion voters. in some of the same states that will be front and center in the election, like pennsylvania. carol: they are also endorsing hillary clinton. they are trying to drum up votes or the julie for her.
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followed their field director in pennsylvania as he went to make the appeal to white working-class nonunion voters. in areas that have been hit hard economically over the past couple of decades. you went to pittsburgh, a city that has been hurt economically big-time. a lot of these individuals who ,annot seem to get a break these are potential voters that could go to donald trump. talked to a voter after watching the canvasser who said i will vote for donald trump even if it is just to send a message. to convince the government that something needs to change and we cannot have another politician. that somee sentiment
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labor leaders and progressives are worried could get real .raction carol: how persuasive and transparent are they out there talking to potential voters? >> they identify themselves as afl-cio.ate of the they insist on making a point that they are not from the democratic party. this is the candidates on their issues. the candidates they are endorsing our prolabor and union backed candidates, generally. the issues they push our economic issues. they believe they have more credibility because they do not wade into issues like abortion
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or guns. carol: up next, how to maintain your privacy online. david: and how to define "autopilot." that is ahead on "bloomberg businessweek." ♪
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carol: welcome back tocarol: "bloomberg businessweek." david: you can listen to us on the radio on the following stations -- a step-by-step guide to protecting yourself online. carol: there is jordan robertson. thing you cansic do to any social media account is sign up for text message login verification codes. that goes a long, long way to protecting your account.
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the second step is setting up a callode so a hacker cannot your cell phone provider to get access to your account and lock you out. if you do those two things come in you will be a long way down the road to protecting those accounts. workarounds,ays but those are two things we recommend you start with to protect this online accounts. carol: you mention a journalist whose twitter account was hacked. >> the worst, 2012, a journalist , the hackers got so deep into his computers they got into his macbook for my iphone and ipad and erased all of his -- all ofm all of his his photos, all of his data. -- hackers are raced all of
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memories. of his carol: you also talk about clearing your cookies. a map of everywhere you've been. everyone thinks of cookies as the way internet advertisers track you. they are also something else, tools for hackers to target you. when you log onto the internet and websites collected about you as you travel around the , hackers can use those cookies to target you and find you on the internet and launch attacks that way. snowden end,ore but one more way that hackers can find you online.
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if all you are doing is compiling this ever-growing , it's alsoyourself helpful to refresh those files, delete the cookies and start over. tesla defending itself amid autopilot lawsuits. 7, an ohio driver was driving along a highway in , arida, engaged in autopilot tool that allows drivers to allow the car to steer it self. it seems his hands were not on the wheel and the car did not recognize that an 18 wheeler was crossing the highway at the same time. there was a collision, the driver died. --er that, to more accidents those come more accidents. , two morehat accidents.
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the driver was injured, they survived. lawyers have been pontificating, wondering exactly what these crashes mean. will tesla be held liable? carol: i've been thinking about this. who is liable? is the company liable? what do they say to drivers who are testing out the autopilot function? >> that is the $64,000 question right now. tesla's argument has been clear for a couple of years. musk has been saying quite that drivers will be held responsible because this is not autonomous driving. drivers need to be careful and need to have control of the car like they would any other car. this function should not change the way drivers focus on the road. , look, whenrgument
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"autopilot,"oduct you are asking for drivers not to pay attention. and attractive nuisance, similar there is a swimming pool not being guarded by a fence and neighborhood children start to jump in, who will be held liable? it is likely the pool owner, the homeowner. teslagument is it will be the liable in spite of instructions to keep your hands on the wheel. carol: what if there is a design defective? design is ultimately, does that make tesla liable? >> that will enhance the
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plaintiff's argument. it will be up to a judge and jury to determine really whether a product defect is actually in play here. beentesting that has insufficient amounting to a product defect. up next, rio on the hunt for revenue, trying to unload its governor's mansion. carol: and the art of playing dead. ♪
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carol: welcome back to
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"bloomberg businessweek." david: on the eve of hosting the olympics, rio is broke. carol: the governor is selling his own residence. thene of state assets government transferred over to the pension system. they sold off to the highest bidder. .his is a unique asset it was built in the early 20th century by one of the richest men at the time. >> this is on an island. a pretty exclusive place. david: completely isolated from the rest of the city. jungle, used with to have these big feasts and peacocks roaming around. the elite went there for parties. part of the state government's effort to put on a brave face
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and show they are cutting their own flesh as well. it is a demonstration that they are selling off their own assets as well. carol: what could it go for? they are hoping to close a bit of the gap that rio is facing. david: it is tough to say. the executive is in charge of selling this property. he was unsure about if he was willing to sell it and even less sure of how, what the price would be. it is a truly unique property. there's nothing else on the island. just someone's future private paradise. david: a review of elizabeth greenwood's new book "playing dead." dead."s called "playing a journey through the world of
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death fraud. about 31, she was drowning in student debt, joking around with a friend one night over dinner, she talked about what you was going to do and her friends and you could take your death and she decided to look into that and discover there was a whole world devoted to that. --ol: you reviewed the book did you like the book? >> i did. carol: there are interesting characters who could help you make your death. .- fake your death taking your death, people will come looking for you. helping someone disappear is almost as good. he helped 50 people disappear. carol: how do they do it?
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>> you have to be ready to cut -- thenybody or anything less you have in the bank, the easier it is to a race -- erase vestiges of yourself. you don't have to go very far. you can hide pretty close by in plain sight. the writer that he was thinking about eventually arranging his own disappearance. he was not happy with his current life. the whole thing is pretty sad. people can go create another life. what did they do to take their death?- fake their >> it depends on where you want to go. , it is ailippines
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national industry where you can willdead bodies and people stage mock funerals and you can buy fake that certificates -- death certificates and all that stuff. there are people who are hired by insurance companies who spend their whole career chasing people down. david: "bloomberg businessweek" is available on newsstands. i love the photos of the republican national convention. very cool. looking at these powerbrokers in a classical black-and-white style. carol: i like the story on the mormon utopia. this one mormon has been buying up tons of property in vermont and plans to house these incredible villages.
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there are specific designs. fascinating. we will see you next week. ♪
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♪ >> coming up on "bloomberg best" the stories that shaped to the week in business around the world. celebratebanks earnings. is the sector turning a quarter? cases, it was not down as much as expected. >> it could be rough sailing for some ceos. >> will you stay to see it through? >> donald trump is officially the choice for the presidency. why big names in business are choosing to back him. >> people do not want political dialogue, they want

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