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tv   Bloomberg Business Week  Bloomberg  July 24, 2016 4:00pm-5:01pm EDT

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>> welcome to "bloomberg businessweek." erdogan presses down. >> peter thiel goes to cleveland. also, hillary clinton's foot soldiers. >> all that ahead on "bloomberg businessweek." we here with the editor of bloomberg businessweek. the failed coup against president aragon last week. there is a massive crackdown on journalists and teachers and different folks. >> this is a story we had in works before the coup.
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we were doing a story about an opposition type newspaper and its editor and 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 and what it was like to be in that position. then the coup started and suddenly our story took on sort of a different dimension. it turns out the editor we were writing about is one of the people on their list of people they don't like post-coup, because post-coup they are cracking down on opponents. there never been great with journalism. there basically isn't a free press. it's a very complicated situation and we talk about how for the press it's really complicated there.
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right now the guy we focus the story on is no longer in turkey. david: you approach the story in a different way. there's been this coup, you looking at the role of the opposition. how has that changed, being the opposition in turkey? >> they are cracking down on many different aspects of society, putting judges on lists for targeting, putting journalists on lists, teachers on lists. they are using it as an excuse to consolidate the power of air -- erdogan and prevent another coup. in the technology section you look at pokemon go, what's the phenomenon? >> i'm not yet but i promised our department i will. david: we focus on what this means for nintendo that was so late to get into the -- mobile gaming. >> the company that developed the game was niantic and they are a spinoff of google and the people who run this company
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had worked on location technology at google, kind of google earth projects, that have translated well into this game. it is sort of son of google kind of thing. carol: in the future section you guys talk about donald trump. specifically, peter thiel. >> we have a fascinating story about peter thiel, who is sort of his own kind of guy in silicon valley. we mention a statistic, something like 70% of donors in silicon valley give to democrats. peter thiel is a libertarian and he is supporting trump this year. he spoke at the convention. he is not the kind of trump supporter you would expect. he's an immigrant, he is gay, he has not been a traditional republican, and he finds his own way. we talk about why he would be interested in supporting trump
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and why this would be good for his business and various interests. david: i think of the role he's been playing behind the scenes in the lawsuit. we know of his political beliefs. we know he's libertarian. this is a very prominent role for him, speaking on stage at the rnc. >> it is. some people suggest you actually wants to embrace chaos right now, he wants to bring on trump and sort of wipe the slate clean in washington. he thinks chaos is kind of a good thing, he's a disruptor in the extreme grade he was one of the cofounders of paypal, which changed a lot of the way people view the way they use money. as part of his disruption strategy, and in the story we talk about -- he plays chess. he's a very accomplished chess player.
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but he uses a move that only masters use because he thinks it will shake up the game. carol: i spoke to a reporter. >> is known best as the godfather of the paypal mafia. he founded paypal in the late 90's, they sold to ebay, he got very rich. carol: elon musk was part of that. >> a lot of key members of silicon valley are tied to peter thiel. the thing that's crazy about him is he's on another planet ideologically for most of those people. your average tech person is a mix of socially liberal and a little libertarian, like a lot of business leaders. thiel is a radical libertarian, which makes him a curious fit for donald trump but also a curious fit in silicon valley. carol: what are some of his views? >> may be the most interesting thing from the past week was that he said he's proud to be
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gay. and of course, in the republican party, the log cabin republicans came out with a statement shortly before, saying the platform was the most anti-gay there had ever been, and the fact that peter thiel gets up there and says i'm proud to be gay, that is interesting. he also happens to be pro-marijuana. he has invested in a bunch of marijuana companies. met the usual thing for a report he -- republican party conventions eager. carol: it's interesting to have someone who's -- >> he's also known, you see this crazy mismatch -- gawker media in 2007 outed him or sort of publish the fact that he was out to certain members of his inner circle, and he just kind of went away quietly and then years later, it was revealed that he had been secretly funding his lawsuits. that ultimately led to gawker's bankruptcy.
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he's at once this supersmart intellectual but also an operator. when we look at this speech, you have to see it in both of those terms. he's putting forth his agenda, but also trying to protect his power. carol: how does he feel about things like immigration, taxes? how does it jive with the republican party and donald trump? >> on taxes he's like a doctrinaire libertarian, so that kind of works. generally speaking, tech companies are more dependent on immigration than almost any industry. the h-1b visa is extremely popular in silicon valley. carol: i feel like the tech community often kind of avoid politics. they are doing their thing in silicon valley for the most part i don't get too involved. over the past few years we've seen a lot of tech, -- tech
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companies have gotten more involved. >> yes. it's interesting. traditionally tech people were so proudly apolitical. it makes sense if you think about the fact that for like 20 years, tech companies did not have a lot to do with government. in the past few years, the tech world move much more into the regulative sphere. bingo a company like spacex where peter thiel is an investor and their main customers are governments. carol: how do his colleagues in silicon valley feel about his connection with donald trump -- >> donald trump, as he is in other industries, is a polarizing figure. in silicon valley, he really kind of rankles people. silicon valley is very sort of touchy-feely. donald trump might call it politically correct. thiel's support for him is very much politically indirect even among members of his inner
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circle. even people who are close to him have not really talked about it david: the cover of "bloomberg businessweek". talk about the decision to go black and white against this fleshy background. >> the photographer is someone great. he actually specializes in black and white. it wasn't super deliberate. we just needed a photographer who loves black and white work. there's something about black and white makes it a little more timeless and a little more iconic. we really like that about it trade in certain respects, you kind of don't know whether it's 2016 or 1950. it does look like the 1950's. carol: what was the message you guys were trying to get across? >> there wasn't like a deliberate intention behind it. i think we just want people to read into it however they want to read into it.
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we have been through this process before and the process this year is a lot different than it was years before. people maybe alwyas say that -- always say that. david: we associate red with republicans and blue with democrats. you here choose a peach. what would you call it? >> maybe tan, like trump-tone. [laughter] that was very deliberate, not to do red or anything blue or anything that had connotation behind it trade admittedly, this is a weird color, but we thought it paired nicely with the black and white. carol: how many different photos did you guys look at as a possible cover? how many angles of the crowd and so on? >> we looked at maybe five or
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so. he captured a lot of the big republican names. we have a picture of trump on the inside trade something about this crowd photo stood out to us. it is a somewhat subversive crowd. this woman is holding a trump sign and looking admiringly at what i assume is the stage. it captures this very special moment, the people who are part of this. we all of sus over the personalities and trump and things like that but sometimes you forget these people are there because they are being supported by their base. there was something interesting about that turning that sort of lens to the people who are supporting as opposed to the big personalities. thanks so much. carol: just ahead, the mormon millionaire working to build a utopian community and vermont. david: walmart's plan to bring manufacturing jobs back to the u.s. off to a slow start. carol: kaiser permanente designed an automatic hospital of the future. all that ahead on bloomberg businessweek. ♪
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>> welcome back to bloomberg businessweek. carol: you can also find us on radio on sirius xm 119, on a.m. 1130 in new york, a.m. 1200 and boston, 90 9.1 fm in washington, d.c. and a.m. 960 in the bay area. david: walmart discovers is not that easy to bring back thousands of manufacturing jobs to the u.s. >> former 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. we are all just climbing out of the recession at this point. and that they were going to spend $250 billion more over the next 10 years on goods that were made in america. that is a lot.
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walmart has about 1/2 of $1 trillion in sales every year. over 10 years, $260 billion. no other company has come out and done something like this. they felt like they wanted a strong u.s. economy, they want a job growth and job creation in the u.s. i was good for their business. it is also good pr for them. they were the retailer. that is the great irony of all of this. walmart has been blamed for helping -- there is wto and nafta and everything they have done. walmart was really famous in the 1990's and early 2000's for pushing companies to lower costs, negotiating ruthlessly over a penny and that drive for lower costs is what needs to go overseas and move production to china to meet the demands of walmart. walmart has been blamed for sending hundreds of thousands of
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jobs outside the u.s. and here they are, the only retailer making a major push to bring made in the usa products back. carol: roughly 2 1/2 years ago they set out on this mission. is it working? >> there's a group that was supportive of what walmart is doing. but they tallied up the number of jobs that have been created based on public announcement companies have made. we are at about 7000 jobs. carol: is it too early to tell? can they actually make a difference and create a lot of jobs by doing this in the u.s.? >> if walmart spends $250 billion they will be able to create 250,000 jobs in the manufacturing sector. when you count all the indirect jobs, someone is getting there hair done and nails cut, it could be as much as a million. boston consulting group, even they said, it's hard to calculate this.
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if all goes as planned as well as it could be, we could have 250,000 manufacturing jobs. david: kaiser permanente has a plan to become the most innovative health care program in the u.s. >> they are interested in figuring out how to use technology to prepare for health care 10 years down the road or even further and craft what they see as the future of health care. carol: they have a huge warehouse where they are exploring this. talk to me about it. >> they use this to create a template hospital when they were about to build 13 new hospitals in california.
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they built these hospital rooms first with cardboard. when they got a little more settled, then they really tried to build a hospital rooms and put in furniture and they built a mock hallway and then they asked about 1000 stakeholders to come in and give comments. these were doctors, nurses, patients, consultants. they even had the janitors come in to test whether the janitors carts could fit in and out the doors and go down hallway smoothly. the idea was that they could save money by having this template hospital in place, and once everybody signed off on it, when they went out and build these 13 hospitals, they can copy and paste. carol: you write about monitoring technology in your story. i'm guessing that ultimately this is all about kaiser permanente being able to improve the bottom line, save costs down the road grade we talked about health care costs and how they keep going up and it's got to be about cost control. >> absolutely. kaiser is looking particularly ahead to the population aging and as people age, they tend to have more chronic illnesses.
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we know patients with chronic illnesses eat up a lot of the budget when it comes to health care. there are things they are thinking about, like how do we keep patients at home? can we have more telehealth visits? they had 59 million virtual exchanges in the last year, whether that his e-mails, telephone calls, or video visits, which is more than the total number of in person visits they had last year, about 50 million. this keeps people at home raided they don't have to come in for services. -- home. they don't have to come in for services. they are looking into different ways to help people stay healthy at home. carol: up next, the 19th century document is inspiring a massive sustainable community in vermont. ♪
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carol: in the feature section, a potential utopia in vermont. >> in january there was a librarian named nicole and she was putting together a report and she so i series of land purchases, 900 acres in four towns. it turns out joseph smith, the founder of the mormon church, was born in vermont. she started looking into this company and found out david hollow is behind this and he has this utopian plan based on documents created by joseph smith. carol: and this plan involves these communities trade initially in vermont, 20,000 people's community. >> it's a long ways off, but that's the hope. it is supposed to be built on
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5000 acres and house 20,000 people. the whole plan is based on a vision that joseph smith had in 1833, i believe. he and two fellow mormons went into the woods. they had been studying an old testament prophet, enoch. it was a city that was so perfect it was pushed into heaven. they had this vision, jotted it down, and the document was lost for a long time. the mormon church has never given it much significance but david hollow found it and he has been studying it since the 1980's. he said he's put more than $100 million into developing this plan. carol: it's interesting. it's like a closed off community or contained community, and a sustainable community. but there's businesses, places to socialize. it's all in one. >> yes, it's all in one.
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everything is right there. that's the whole plan, you should be able to walk everywhere. everything is about 1/2 mile away. the whole place is surrounded by nature. he's very much into drilling and believes it can be sustainably done. carol: i mentioned a community of 20,000 but he really wants to build 1000 of these new vistas in vermont. >> yes. carol: what do the folks of for mont say -- of vermont say? >> they are shocked. it's hard to believe this is happening. he has 150 engineers already working on plans. they are not at all happy about this. the fact that at this point he has already spent nearly $5 million scooping up more land than is in central park scares people. david: up next, hillary clinton's army of door-to-door canvassers, will they convince likely trump voters to switch sides? ♪
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>> is still ahead in this week's issue. tesla autopilot defense. carol: it is all ahead. ♪ we are with the editor of bloomberg businessweek. david: in the company and industry section, a look at shell. responding more and more to the threat of climate change. >> the company is all in with natural gas, which people view as a transition source of energy.
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natural gas is cleaner. it is easier to turn plants on and off. they are looking to be more of a gas company than oil company. the big majors are moving in that direction. not that it will take over the oil business, but more of what they are pumping out of the ground is gas than oil. the only one where the stake in gas is lower is bp. all the others have increased their guests output. -- their gas output. there are obstacles. it is a complicated business. you have to build terminals, liquefy the gas.
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it is a complicated process. carol: also complicated, going public. you talk about spotify and their plans to go public. there is huge valuation out there. will that justify a? that is the big question. >> spotify is not profitable. for investors, there is reason to be skeptical. spotify is negotiating with labels and the question is, what percent did they give labels? that is always the question. those negotiations are ongoing. until you figure out how much they are giving, it is hard to know what the profitability is going to be. david says this is a hard line
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of business to make money. >> you have to compensate the labels. there are artists who are unhappy with their compensation. carol: not easy when you have people like apple to compete against. david: a wonderful photo essay. tell us about it. >> we have a series of wonderful black and white photos, partly of the crowd. it takes you there in a way you did not know. i love it with photos edited down to a few wonderful it -- images. in aally tells the story different way. carol: we caught up with the photo editor. david: what did you want to capture with these photos?
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>> looking into the people who operate within the ecosystem of this large political infrastructure. we were looking for backstage moments, whispers, things like that. our photographer was photographing all of the convention. really looking for those things. carol: what about the photo of donald trump? >> no one knew he would be at the convention on monday. it was a bit of a lucky break for us.
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there is a huge -- of reporters. you have seen 20 or 30 photographers bombing the vix the section -- the vip section. where you can see the candidate is a lucky opportunity. it was a gamble. i think we got something unique. david: tell us about roger stone and what this image captures. >> he is an informal adviser to the donald trump campaign and an outspoken critic of hillary clinton. he was in the media section of the arena doing interviews, this great moment of -- the wizard of oz, the man behind the curtain. he has this white suit and it takes you back to a different era. carol: newt gingrich, it almost
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looks creepy. >> there is camera flash and a cast that shadow on him. this one felt like it was the spirit of the rest of the page. thank you so much. david: the republican national convention was not the only story. carol: canvassers are going door-to-door in hopes of winning working-class voters. >> a particular focus on white working-class nonunion voters, but are going to be front and center in the election, like pennsylvania. they are focusing on jobs in particular. they're out there trying to drum up votes.
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i followed their field director in western pennsylvania as he went to make the appeal to white, working-class, non-uterine -- nonunion voters in areas that have been hit hard economically. there is a suspicion about both candidates. carol: you went to pittsburgh, a city hurt economically. the concern is a lot of these individuals who cannot get a break, maybe don't have a job or have struggled over the last few years, these are potential voters that could go to donald trump. >> i talked to a voter after walking -- after watching a canvasser talk to a voter. they said they were going to vote for donald trump to send a message that something needs to change because we cannot have another politician in there.
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labor leaders worry that could get traction, especially in places like these towns out like pittsburgh, where donald trump believes the clinton's history with trade deals will hurt hillary clinton. carol: how transparent are they talking to voters? >> they identify as an affiliate, a brand in the region outside pittsburgh. it is a positive for a votto voters. they insist on making a point that they are not from the democratic party and they assess candidates on their issues. candidates they endorse our pro label and union backed candidates. the issue they push our economic issues. they believe they have credibility because they do not wade into issues like abortion or guns.
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carol: how to maintain your privacy online. we have a handy guide. david: how to define autopilot. that is ahead. ♪
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carol: welcome back. david: you can listen to us on the radio and also on am 1130 in new york. a step-by-step guide to protecting yourself online. >> the most basic thing you can do to e-mail or social media is sign up for text message login verification code. that goes a long way to protect your account.
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there are ways around that. the second step we recommend is setting up a pin code at your cell phone provider. a hacker cannot pretend to be you, send those codes to them and get access to your accounts and lock you out. if you do those two things, you will be a long way down the road to protect those accounts. those are the two things we recommend you start with. carol: you also talk about things that have happened. you mentioned a journalist whose twitter account was hacked. it was the worst. it was 2012. a journalist, his social media accounts got hacked and the hacker got so deep into his computer, they got into his macbook, iphone, ipad, you raced -- and they erase all of his photos and data. the hackers erased all of his family photos.
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there is a lesson in that for silicon valley. you have to set up login verifications. if he had it, it would not have happened. carol: you also talk about clearing your cookies. > everybody thinks a cookie is -- rightfully so, the way advertisers target you, but they are a tool for hackers to target you. when you log on to the internet and websites collect data about you, attackers with network level access, they can use those cookies to target you and find you on the internet. this is the higher end of the spectrum. it is one less way attackers can find you online. it is an important point to remember.
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if you compile this dossier on yourself, it is helpful to refresh the files, delete the cookies and start over. david: tesla defending its self against autopilot lawsuits. >> and ohio driver was driving along a highway in florida and was engaged in autopilot. it seems his hands were not on the wheel and the car did not recognize an 18 wheeler was crossing the highway at the same time. there was a collision and the driver died.
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after that, two more accidents. one in pennsylvania and one in montana occurred where drivers allegedly engaged autopilot, lost control and collided with a barrier. what has happened since then, lawyers have been pontificating. they are wondering what does the crash mean and is tesla going to be held liable? carol: who is liable? is the company liable? what did they say to drivers testing out the autopilot function? >> tesla's argument has been clear for years. he has been saying in the event
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of an accident, drivers will be held response. this is not a taunus driving. drivers need to be careful and have control of a car like they would any other car. this is a safety function and a bit of a luxury, but should not change the way drivers focus on the road. the counterargument is that when you call a product autopilot, you are asking for drivers not to pay attention. there is this argument called an attractive nuisance, similar to if there is a swimming pool that is not being guarded by a fence and neighborhood fit -- neighborhood children start to jump in, who will be liable? it is likely to be the homeowner. the argument is tesla could be held liable despite of the structure and to keep your hands on the wheel. carol: tesla has put out
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warnings. what if there is a design flaw or the design is defective. does that make tesla liable? >> it will only enhance arguments. there have been previous cases that ask the same question over antilock brakes. it will be up to a judge and jury to determine whether a product defect is in play here. if that is what they find, tesla could be on the hook. david: rio is on the hunt for revenue. it is trying to unload it governors mansion. the art of playing dead. ♪
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david: on the eve of hosting welcomedavid: on the eve of hosting back to bloomberg businessweek the olympics, rio state is broke. carol: the governor is selling his residence. >> this is one asset that was transferred over to the pension system to sell to the highest bidder. this was a unique asset. it was built on the early 20th century. carol: this is an exclusive place. >> it is isolated from the rest of the mess in the city. it is covered with jungle.
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it used to have these big feast and peacocks were roaming around the ground. the elite went there for parties. it is part of the state government's effort to put on a brave face and show they are cutting their own flesh as well. it is not going to be something to fix their problem, but a demonstration they are selling off their own assets. carol: what could it go for? this money they are helping closed a little bit of the budget deficit gap rio is facing. >> it is tough to say. the executive in charge of selling the property, he was unsure about if he would be able to sell it and less sure about what the price would be. it is a unique property. there is nothing else on the island. it is just someone's future private paradise. david: a book. >> it is called "playing dead, a journey through the world of death fraud."
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she was drowning in student debt and joking around with a friend over dinner, talked about maybe faking your death and discovered there is a whole industry. carol: you reviewed the book. did you like the book? >> i did. carol: there are people who can actually help you fake your brett -- fake your death. >> it is easier to help them disappear than fake their death. by faking your death, people will come looking for you. will come looking for you. helping someone disappear is almost as good. he helped about 50 people
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disappear. carol: how do they do it? >> you have to be ready to cut loose anybody or anything you have love or affection for. the less money you have in the bank, the easier it is to erase. he said you don't necessarily have to go far. you can hide close by, in plain sight. at one point, he told the writer he was thinking about arranging his own disappearance. carol: which is sad. people who are tired of this life, they can kind of create another one. what did they do to fake their death? what is involved?
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>> it depends on where you want to go. in the philippines, it is almost sort of a national industry, where you can rent dead bodies and people will stage mock funerals and you can buy fake death certificates and all that stuff. there is also people who are hired by insurance companies who spend their careers chasing people down. carol: what was your favorite story? david: the photos in the magazine. focused on the speeches, donald trump, his family. very cool how the magazine went behind the scenes. carol: i liked the story on the mormon utopian villages. his plan is to house and create these incredible villages. there are specific designs, it is a great read. we will see you next week.
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>> a raft of tech companies releasing results, and it could be rough sailing for some ceos. >> will you stay to see it through? >> donald trump is officially his party's choice for the presidency. big names in business tell bloomberg why they are choosing to back him. >> people do not want political dialogue, they want to see action. >> donald is

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