carol: welcome to "bloomberg businessweek." >> we will talk about what the future holds for those just starting out. how totalking about a jaun -- build your nest egg. >> we are here with the editor and chief of bloomberg business week. good to have the issue of new

money. what was the special intention? >> it's all about people starting out or starting over and how they will do with their finances and where they see opportunity and risk and how they plan and we look behind people who spam every experience of life from transgender to new couples and babies and kids. oliver: it's new as in taking new steps as well as young people? >> it looks at what millennials are doing and people in their teens trying to get business. we have people taking their children as young as five and 62 a classically can learn how to improve their credit rating. oliver: you have one story that's youngish ceos. theranos is one company we talked to. there and implosion

how they did the testing and dorseyurus -- and jack and twitter about how they will deal with their business model moving forward and how to monetize their user base. carol: you took one of your reporters and deploy him to a social media/marketing agency to see what happens? yes, it's about instagram and it's a must read. oliver: we spoke to the reporter. you wrote about what it's like to be an instagram or social media influencer. i don't know where to start. tell us what an influencer is. ofif you are under the age 25, you know all this but if you app up your instagram, the that facebook owns, you will notice in between your friends, there are some very attractive looking people wearing beautiful

outfits with beautiful vacation shots and pictures of beautiful meals. many of these people are professionals. they are the equal and of models and what they are producing our little miniature lifestyle magazines. especially young people will follow this for style tips. advertisers will pay money to get into those feeds. it's a burgeoning new media ecosystem. for business week, i decided to dive in and try to become one of these people. these guys can make a fair amount of money. overght, i would guess 1000 people are making more than $100,000 per year selling advertisements on instagram where they are talking directly to an advertiser either a fashion brand or a lot of

nutrition and fitness stuff. they do sponsored posts. they will put on a shirt or go to a hotel and write a post about enjoying themselves and it with --sually tag is buried atwhich the bottom of the post. there are norms. there is money, it's a real business. oliver: we will get into everything you did to become an influencer. i want to delineate the difference between instagram and stuff like snapchat. you call it the perfectly designed self-esteem subversion site. that and java line between what instagram does and what snapchat does. >> it relates to why there is

more money in instagram than snapchat. snapchat encourages people to create tossed off selfies. when you think about that as an advertising platform, it's not great. -- an are an air advertiser, you want an airbrushed shot and that's what instagram is. you have these filters that encourage you to smooth all the wrinkles out of your life. makes the platform attractive to many people that we can make our own lives look like they are part of a magazine and it's what created this world of influencer marketing. carol: your mission was to become one so how did you do it? >> i did a story a few months back were a met a few -- these are agents who work with influencers to help them become who they are and help them manage their careers. danielthese agents named

talked with me and i asked if this could be taught. he said yeah. he said i will advise you. i embedded myself with this agency and they introduced me to the right people and told me what to wear and who i should hire for my photographs. : it's not like max walking around taking a selfie? this was a controlled environment? >> the thing that was most eye-opening is you see these beautiful people and they are probably taking a picture and sharing it with their friends. the answer is, no. they have professional photographers, special stylists, connections with brands and they get new close and agents and publicists. as part of the story, spoke with someone who runs the instagram account for a dog.

the dog wears men's clothing. a great account and she was telling me all the people who work on it. have a photo shoot. you have a professional photographer and i asked about her agent. there is a new agent called wags society. it's an animal agent for instagram pets. it's owned by the new york times company. but world sounds so crazy it's working it's way into the mainstream of the media world. choosing the right image was the job of the creative director. >> it's a special issue. it's a bit of a challenge because there are many different stories. we bring them together. rather than try to address

everything within the issue, we tried to look at the idea of new money. it's the opposite of old money so the opposite of old is young so we went with a baby for the cover. oliver: you talk about young people and millennials. i love the money coming out of the back. >> there are no babies in the but there are elementary aged kids. we thought the baby was the most fun symbol. what is the gold? >> we wanted to make it look a little gaudy. there were curtains and marble floors. it was a little trump-esque. oliver: what is the idea behind the money placement? >> there are not a lot of places to put money on a baby's of the diaper felt like a natural. when you do a deep dive

into something, there has to be many people with different ideas so was there a lot of debate? >> the issue has a lot of great photography. we incorporated some of the photographs. a lot of it is portraiture and we felt it required too much explanation. we decided to simplify. if you're struggling how to market your products to young people, we've got the consultant for you. oliver: a business boot camp that will keep -- that will teach your kids supply and demand.

carol: welcome back. americans born after 1996 make up almost a quarter of the u.s. population and have $44 billion in purging power. unlocking their purchasing power can feel daunting. carol: unless you speak their language. you take a look at generation z. we talk about millennials but what is generation michael:? >> it's anyone born after 1996? it's a big group? -- they are about a quarter of the american population and in the marketplace they have $44

billion in buying power. oliver: that dollar amount of what makes them a big target for companies and advertisers? definitely, people look at millennials in terms of what they can do in the marketplace but as time goes on, marketing executives and people in business are looking at teenagers because they seem to have an eye for the future. carol: that leads us to some teenagers, generationz that got together and created a consulting firm? met up at aee kids cornell business camper for high school kids. from california and the two boys are from new jersey and they clicked and thought they could do something together. that was the starting point for this journey. carol: what is this firm? which isalled juve

like rejuvenate. it's a consulting agency that focuses on themselves. they questioned why there are teen experts when you can come directly to teens. oliver: there has always been teenagers. what is it about right now? are they particularly confounding? can they provide some value? >> you are looking at teenagers having a much different upbringing with the advent of technology. social media is like oxygen and they communicate through these platforms more often than anything else. when marketing executives look to target kids of this age, they have a hard time understanding the nuances of social media because it changes so quickly. the changes are coming from teenagers specifically. carol: they are targeting

generation z and created something called thevine. speakn they say they can for our generation, there is a lot of holes and that. they cannot speak for millions of kids around the world. carol: they have created a consulting firm so they are not your average teens. e is a focus group for higher and it's a crowd sourced -- they are not paid but these have a lot of human capital around the world with connections through other endeavors. a blast and said we are three kids representing generation z, does anyone want to be a part of this? of 200e is a collection plus kids from around the world and 20 countries are represented

from every single consonant. a company can submit an idea as an incubator and the kids can .ounce around their views on it maybe you focus on europe or east asia and that gets them back to the company. oliver: teenage consultants are one thing but what about pre-teens or toddlers? carol: we've got that covered and talked to a reporter about a boot camp for the k-12 set. this story is fun. tell me about the spark business academy. >> spark business academy was something that might colleague ran across in a flyer of washington, d.c. summer camps. the flyer had pictures of young , young boys in suits talking on cell phones. kidsid it would teach

about investing and budgets and entrepreneurship. young asor kids as five. i was fascinated by the idea would needgartners to attend the future millionaires boot camp. i'm thinking summer and running around having a good time but people are doing it. tell us about the parents and kids enjoying this? to occupyents have their kids in the summer and they need to find things for them to do. parents whoseveral would schedule a sports or music camp. when they saw this finance camp, it struck a chord with them. wanted toething they talk to with their kids but the time never seemed right or they did not feel confident in their own skills and this was a chance for them to have someone who is an expert talking to them about finance. kids were moments when the looked a little sleepy.

the instructor did a great job of bringing things back to relevant towere kids like facebook or apple or things like that. carol: i love the light in the story when you said you inventoried the different ways kids can slouch. tell us about the individual behind spark business academy. entrepreneur an who worked at price waterhouse coopers for a long time and eventually began teaching their training courses. he developed this interest in teaching people and he wondered why in this country, there is not more basic instruction about finance. , the good, the bad, the ugly way to split a check with your love tom.

-- your loved one.

carol: welcome back. oliver: you can also catch a sum the radio on sirius xm. and in london. and in asia. new money the section, how loved ones do finances. carol: facebook to seven couples. oliver: as part of the money issue, you talked to couples about their specific money issues or maybe lack of issues in the relationship. tell us about how you found the people and what you wanted to

find out and the approach you took. to about a dozen couples and found them through friends of friends of friends or through organizations or otherwise. a lot of people were not willing to put their personal lives and money under the microscope. i cast a wide net and found people whether they started the conversation or ended it that way, they had revealing things to say about that intersection of your money and your life, your economic situation and who you are as a self and a couple. part ofery thorny and what drew us to do this is the sense that these are things that people are not supposed to talk about and can be hard for a couple to talk about alone together. here is an invitation to talk andt it with business week there one million subscribers. some of the conversations -- one

member of the couple said i never knew that. oliver: nobody broke up over the interview? from one ofessage the couples after-the-fact the fact saying, thank you this has been so helpful. we talk about these things all the time now after the interview and it's good for the relationship. aril: one of the couples is and rebecca and they came in to the relationship with different approaches to money. rebecca started the interview, she said she was dumpster diving at 17. he had his whole financial plan and they have converged. helped rebecca become more aware and cut chances about money but rebecca helped ari reach a place of living with jewish values and the money you give away.

the couple now gives away 20% of their income, something where they went through a process to figure out how to do and it was important for them to do. it does not mean they don't have any conflicts. they still disagree about hand -- about how to handle in terre in inheritance and be in a position of getting a chunk of money from a family member that wants to give it to you and wants you to have it for yourself. trans persons are meeting challenges when it comes to retirement. talk about transitioning from a man to a woman or a woman to a man. the medical issues go on but there are economic and financial consequences and you write about that. >> i talked to a lot of transgender people about the experience, not only the medical and emotional experience that what are some of the economic consequences.

there are employment issues. there is still a lot of discrimination against trans people so that's one aspect. i also wanted to get into and i heard from a lot of people, there are issues with your name change or insurance or taxes that get complicated. helpi wrote was a guide to people through the process or offerings people other's advice but it will be an interesting read for people who are running a charred departments or want to be inclusive to trans people. let's talk about how you started the story. one subject transition from male to female so tell us about the problems she encountered along the way financially and what is unique about that experience. >> her transition wiped out her

retirement account. she was in her mid-50's and had a long career in tv and radio and then could not get a job. -- she also got divorced which is common. that contact your economics. >> yes, she lost a huge house in the suburbs and a career and a car. she lost terry tire meant account -- it she lost her retirement account and lost everything but she was also happier. she was very does it about the rest of her life and where she is now. she had to wipe out her retirement account for living expenses and the medical care she needed. there was no insurance to cover all of these procedures that cost money. we don't need to talk about details of health care but it's not the sort of final surgery that everyone talks about. there are many things that trans

people need to feel and look like there gender. there could be electrolysis to remove hair from her face. it's expensive and it costs as much of a hyundai and it hurts like hell. tool: it was a real cost make the full transition. >> and she did but the good thing is that there is more insurance available for trans people. it's not very expensive for companies to offer this insurance. 60% of the largest companies now do it. the other problem is that trans people -- companies may think they are buying these policies but when trans people try to navigate the bureaucracy of getting those coverages, it's difficult. the mixednext,

emotions across the university of pennsylvania campus, the alma mater of donald trump.

♪ welcome back to "bloomberg businessweek". i am oliver renick. carol: i am carol massar. the oscars of paper currency, all that ahead on "bloomberg businessweek". ♪ carol: megan murphy, there are so many must reads. you take a deep dive into the french election. >> this is something that has

attracted immense scrutiny worldwide. pen likely to face a runoff with the central right candidate. path of here nationalist policies picking up a lot of the things that donald trump has been talking about. tap into thatto working class, improving labor policies, making sure the 35 hour per week work week stays. fascinating thing to see how this global populism is playing out. oliver: what will happen to mexicans in the united states

who have to send money home if remittances are held back or taxed by the trump administration? story wherereat looking at, this underground economy. of thetrump eight at one centerpieces that he was going to tax or stop remittances. that is a huge deal. that people who are charging $350 per suitcase to send money back, what the article shows is that they are going to get that money back to their relatives, and how much will unravel. what has been the policy, to have the flows transparent. you guys take a look at president-elect donald trump and janet yellen. he has been critical of her prior to winning the election. quite critical.

accusing the fed of essentially callingting the rates, for janet yellen to be replaced. we may be entering a new phase of that relationship. oliver: it's a question of what is in donald trump's best interest. you cover a lot of ground on the topic of the fed, president-elect trump, and everything that could happen with a rates, so let's start first by talking about what has happened since donald trump won the election. wayhas this changed the economists and market participants are thinking about interest rates. >> the stock market and bond yields have soared. for those not versed in bond yields, when they go up, bond prices are going down, so a bad time if you are an investor in bonds. what it is signaling is higher inflation and possibly higher

economic growth. by some combination of tax cuts and spending increases. coming one thing we have up is a fed decision on december 14, which up until i couple of months ago was up in the air. election now, markets are basically saying it is 100% going to happen. what are they looking at in terms of trial policies to determine the rate in 2017? have indication of where economists think things will go over the next year? >> economists have raised increasesns for fed in 2017 and beyond. that is the key question i try to address in my article. i'm going back to, we have donald trump is about to become the most important man in the world. janet yellen may already be the

most important woman in the world, possibly rivaled by german chancellor angela merkel. the two of them strangely enough were born two months apart, trump and yellen, 1946 in new york city, and they have taken different paths since then. now they are coming together through a strange confluence of events, and they are very different. trump, we know, outspoken, brash. yellen, still the academic, soft-spoken, prefers to operate .ehind the scenes, quiet and yet, she has to stand up to .onald trump, who i for incredible he important the federal reserve to be an independent decision-maker on interest rates. as soon as markets get the sense

that the president is dictating interest rates, start to lose trust in the institution, which n barringse america costs, which hurts american taxpayers. oliver: donald trump was very vocal on several occasions that interestlen's low rate policy for so long had inflated the equity markets, things will happen in a bad way when we raise rates. positionhe is in a that the economic results and growth will be attributed to him, what do we know about how he will view rates now? >> this is the $2 trillion question. everybody wants to know exactly that. what we can look at, for example, history. it is uncommon for incumbent presidents to dislike high interest rates and tight on a terry policy because it tends --

it tendspolicy because to slow growth and increased borrowing costs. on the other hand, there has been a general understanding that you don't want to name a bunch of elves to your federal oves to board -- d your federal reserve board. people will say you don't care about the value of the dollar, inflation, and we will punish you by pushing up your interest rates, and that's where we stand now. there is one camp of people who say trump is going to continue doing what he said during the campaign and name a bunch of hawkish people. remember, he has two open seas, to -- openings. they have been vacant because the republican senate has refused to act on obama's nominees. oliver: the people surrounding

her could change? early will be there until february 2018. she said she is not leaving. oliver: i reporter traveled to --ald trump's a lo most schools are general release liberal, have a liberal five. vibe. >> donald trump graduated from wharton undergrad in 1968. undergraduates, let's go talk to them and see how the election is impacting them for better or for worse and their outlook on life as they become the next generation of business leaders. oliver: so you are a hedge fund

reporter. this is a bit of a different sort of experiment going and talking to these kids. what's the first thing you took away when you stepped on the campus and started talking to people about politics? >> i went one week after the election. it wasn't it fragile, but a sensitive time for the campus. several members of the freshman class had been harassed with racist messages, added to this group meet. it is still being investigated, but it was fresh at that moment. oliver: a community within the college campus? where theythis group add people to a group text, and someone had obtain the phone numbers of a large portion of themlack freshme, added

against their will and started with racistem with messages, such as invitations to david lynchings. all the students on the campus were very affected by, black, white, it doesn't matter, so it was a sensitive time. that was all in the wake of the election, the election had been linked to those messages because there were trump comments in them. so, it was a very sensitive time to be on campus. oliver: so there is tension the building around the elections, the issues on the forefront of the election. good job of do a chronicling is what it is like to be a conservative on campus as well, and you talk to a few part of the college republicans, and they documented some of the things they have run into, their displays getting destroys, what

they feel to be in tolerance. tell us how that breaks down on both sides of the equation where these kids feel out of place because they support trump. was a surprise. the story took a turn there. i went there originally thinking i will interview these kids about how donald trump will impact their life and business decisions, and the surprise there was the conservatives were feeling very out of place, very put down, and that was what was really interesting. judge the ninth circuit once to make it so billionaires can't secretly fund civil suits. oliver: how a scooter in rome could lead to romance. ♪

carol: welcome back to "bloomberg businessweek". i am carol massar.

while the days may be numbered for billionaires looking to fund a civil suits in secret. oliver: here team wrote about litigation funding and bankrolling court cases. this has been in the news, but i want to start off with history. sinceas been going on the dark ages. what you think about that? >> litigation funding is nothing new under the sun. it goes back to the dark ages to win nobility wanted to mess with their enemies would underwrite petty lawsuits against people so they could cause trouble. petty: so a not so lawsuit that has taken up a lot of media attention, was peter thiel and gawker. thiel, iteter

was hulk hogan versus gawker, and it took a long time before it became clear that hulk hogan was not paying for his lawsuit against gawker. lawsuitiled a private after they had published a sex tape involving him. it became clear he was not paying for his legal costs. it was peter teal, and famously then the jury award was so large that it bankrupted the site, and it was later sold. that was sort of in the background. what has happened unrelated and parallel is that judges have gotten fed up with this whole practice, and it's not clear thiser that case fed into at all, but federal judges around the country have sort of come out and said something against this practice because they don't like to be unaware of

anything coming into their courtroom. judges want to have all the information and be in control, , the federalnia judges in the northern district of california, the federal astrict court there have rules committee and put for this rule that would require anybody coming into the court with a third party to disclose they have that backing. story, there are a few firms you mention that specialize in funding litigation. is the genesis for litigation an ideological perspective, is it a business where they say there is money to be made here. we will finance it and take a percentage of the award? >> sure, it is a business. and others are capped countries. the limit.ky is the jury awards are insane. the jury's delight in giving

ever bigger numbers. for these firms, there is upside, and you get litigants may be in cases where they cannot put together a class-action, which we saw in the 1990's with tobacco cases, that's how those things got off ground. they know they have a big settlement coming, and and a big payout for them, but in a smaller case where you have a single plaintiff, you can't count on enormous awards and necessarily pay for the litigation, so these firms will come in and say in exchange for a cut of the settlement or the award, we will pay for your legal expenses, so it is a real business that has grown dramatically in the last decade or so. oliver: how a scooter sharing romans a ride, and maybe a date. we have a story about a startup that is the love child of uber inder.

>> it was founded by a 23 your old american come all of her page, who was living in rome and looking for a way to shortcut the public transit system there. the 500,000ound at or so scooters driving around rome and decided to try to make what would look too familiar to a user of uber, connecting drivers and riders. oliver: the gap he is filling, are crowded?eets a lack of competition in the car sharing space? do uber and these other apps not have a presence? >> a little little of all three, i guess. this streets in rome are obviously bustling, and in some cases narrower than you would be used to coming from america, but

it seems particularly in the city center, the traffic is so jampacked that scooters can navigate in and around the cars in public buses he was using for that. oliver: so that is the getting around part, the travel part. there is also this element of flirtation, which can't sound any more european, riding around on scooters flirting with customers. app will look familiar to anybody who has clicked through uber before, you put your destination and your departure location in, and that's about all there is to it, except that unlike with a uber, the driver and the would-be writer have to match, they both have to agree to the ride, so that adds an er to it.f tind oliver: this kind of extends to

the app in some way, so people choose the riders based on who they want to bring along. right.'s the drivers and riders in some aboutare pretty upfront how they choose who to ride with. oliver: an incubator for former drug dealers. carol: the awards for the best bank notes. ♪

oliver: welcome back to "bloomberg businessweek". i am oliver renick. carol: you can also look for us on radio.

oliver: in london, and in asia. carol: in the special new money section, how former inmates are getting a fresh start in the workforce. you set out how to discover how former inmates are finding ways to become entrepreneurs and prevent going back to prison. one creative solution to finding employment with a criminal record, which is a huge challenge because of stigma and formal barriers to employment that people get when they have a criminal record, so some people were choosing to become their own boss and start their own businesses. and i went to hartford, where youngwas an interesting

incubator training former drug dealers to transfer those skills to the formal market. carol: tell us about this individual, background, and how he came to this idea that drug dealers could make good entrepreneurs? . >> shawn brown is interesting because he has always lived in multiple worlds. he has done some time in university before becoming a drug dealer, and clearly he is very intelligent. , andd a knack for business while he was incarcerated, started talking with other inmates about what they were going to do when they were released and found a lot of people had really interesting business ideas. carol: also in the money section, an award for the best paper currency. what is the international banks note society? it sounds so official. in 1961, a loose

group of around 2000 people who around the globe who love paper and now polymer currency. carol: who are these people? >> a lot of these people are just hobbyists. it turns out that many, many people collect bank notes for aesthetic or historical reasons, but that then there are dealers and makee these money from them because they are like coins. a collecting category, and as such, they have grown in popularity immensely over the last few decades. oliver: what proportion of the numbers are central bankers? >> if only i knew. andll say though that banks treasuries specifically around the world are very interested in what these people have to say.

letter anda news an auction people can participate in. then they have this thing called the bank note of the year award, which is this phenomenon where in it is totally subjective. everyone writes in with a submission, and there is only a finite number of new banknotes released every year, and it has to be released in the year. carol: it has to be a new note? >> it has to be a new note. oliver: the oscars of currency. >> that's right. oliver: the president of the society, who by day is a doctor and buy everything else is this very devoted collector of rank notes with tens of thousands. within the first few votes,

we know who will be in the top three. everybody in this community has a base level of knowledge that allows them to appreciate the finer subtleties of deals that are the best. then everyone votes and they tally it up, and the winners are , i have to say, absolutely gorgeous. bloomberg businessweek is available on newsstands now. carol: and online. oliver: what was your favorite story? undercover to become a social media influencer. we think things happen naturally, but it involves effort, money, professional photographer. the photos are priceless what about you? oliver: as much as i want to say this scooter in rome. trump and yellen, which is going to be a big story. what happens with interest rates and what is going on in the market now. more bloomberg

television starts right now. ♪

♪ coming up on "bloomberg best," the stories that shape the week in business around the world. bloomberg television is focusing on energy. we hear from the top leaders and opec ministers preaching in vienna who are reaching age other cut oil production. >> the market price as a 30% chance of a deal. we expected a deal. one of the key reasons, the economics of the deal were compelling. >> the trump transition continues to hold the world's attention appeared at the latest cabinet -- attention. the latest cabinet picks. >> our number one priority will be