carol: welcome. in this special issue, poland offers donald trump a blueprint for not have to drain the so-called swap. wants to become the gold standard for diversity in the workplace. >> all of that is ahead for bloomberg businessweek. ♪ >> we are here with the editor in chief megan murphy. if you think about the yahoo! hacks and the samsung phones,

not such great stories but overall it was not of that here. >> it will be one of the seminal pieces. it makes the point we could talk about the samsung phone catching or some of the companies that didn't have a great 2016 but the point is underneath that we have seen things like uber make real advancements in self driving cars. technology and computers ability to advance. under new presidential administration, how technology is really going to step forward and puts itself to come out of the agnostic political staff we have had. we had a responsibility of companies like facebook or other providers. is this going to be the moment

where tech have to come out from the need the shadows, politically neutral stance and be forced to really come forward and make a stand. where tech have to come out from the need the>> this is the goods issue over all. >> it has been a 2016 full of surprises in many different ways across the world. i think it is time to step back and say we are facing an unprecedented rise in economic populists and social unrest, threats of terrorism but we want to point out some of the companies and relationships, parts of the world where people are doing things you don't know are as good as they are giving. we want to step back and look at business and say we should recognize and celebrate people who are fighting for sustainability and fishing regions in the south china sea and take a holistic view of business. one of the features is

wikipedia and what they are trying to do to make it diverse. statistics isat there are 2300 articles about princess leia's home planet. as a star wars fanatic, i was intrigued to read about this. intrigued to read about this. some diverse, whether it is writers, politicians -- this was on the covers and looking at what was uncovered to change that. really having people have more names andput in these flesh them out. it is not easy. 80% of wikipedia's current editors are white and male. many are saying this has to change and only reflective of a short segment of society. it continues to be a challenge.

it is a real look on how this can change and what we are seeing across all areas of technology is pushed up instead of down. >> it is a great story and we spoke to a reporter. 2001,ipedia, founded in is an online encyclopedia. it is free to use and free to edit. anyone in the world, you, me, the president could go on and start writing and zika purely a andreessen and editors look at it and reentered it or change the entries. it is continually andreessen and editors look at self-correcting. it somehow manages to be quite good. ofyears ago, people made fun wikipedia. it was a little embarrassing to have a wikipedia page open in the newsroom. it is not perfect but it is good as it is about as good

comparable encyclopedias, text let's. there are some areas where it is less good in terms of prescription drugs and things like that. as comparable encyclopedias, text let's. in general, it is good. >> what is the infrastructure for editors? >> this is where it gets problematic. wikipedia's original users were basically open-source software geeks. white guys who are interested in tech. that has left thein general, it. encyclopedia with limitations, certain areas have.ertise and does not have. there is not much diversity. 11 editor base that is 90% male, mostly white, mostly in the u.s. you see gaps. attempts to oversee the inside. and working on it. so far, they have not

accomplished it done. collects there is no editor-in-chief. collects exactly. no one at the foundation, there is no boss that can overrule an article or commission an article or delete something. it has to come from the bottom of. .here are different layers those people are just volunteers. there is no overruling a wikipedia editor. >> that is the filter bubble problem. >> this is what people have been talking about another areas. we think of the internet that encourages diversity of opinion. from read cogent arguments people on the other side. unless amounts of content about anything. we pretty much just find stuff that we agree with.

during the conversation about they can use during the election, people talked about a filter bubble. you see an article on facebook that conference biases. you see donald trump just shot somebody on fifth avenue and you are likely more to share that and that perpetuates this misinformation. wikipedia has kind of the same problem which is you have these group of editors that are but don't in tech necessarily -- are not miller with all areas of human knowledge and so you get problems. lee, one of the wast american novelist listed not on a page for american novelist but for american women novelists. things like that where there will be long entries on moons in the star wars universe, that

missing key elements of world history or feminism or topics that are important and don't get the love they should. >> turning good business into good cover. >> it is one of those covers entirenopsis is an package worth of features and stories. >> the stories are all over the map. it is quite a range. >> rather than trying to cram that, we went with the overall theme of the issue which is good business. we do stories that are critical of businesses that we cover so this is in some cases the opposite so we want with a very positive. >> is it easier or more difficult having an issue compared to one story? >> it compared because it is so

different and we had to convince ourselves it is ok to embrace this up was any of the idea and and ading more conceptual lot of times if we focus on one story, we have a good photograph. >> you have all these pictures and symbols of things -- it is a little bit of a freaky hand. have illustrator that we use as well so we had her render it. it is slightly onlooking. >> the good part is almost overkill. it is like great. .ollects exactly if we do something, we will do it at a hyperbolic degree. carol: a warning from poland.

what happened when they elected a party similar to donald trump. isid: an energy firm that billing itself as a new utility with a lot of big money behind it. this is bloomberg. ♪

carol: welcome back. ver: in the global economic section, the lessons poland can teach donald trump if he doesn't tend to drain the swamp in washington. poland, you had a government that came to power in october last year and they made some of the same complaints, some of the same resentments and issues that donald trump did in the u.s.

there is support base in the townsyside in the smaller . power promising to sweep away in elite. that is a different situation from the u.s. different different but there a conspiracy of ex-con is and runrals allies that have poland since the 1990's. they spent a year now and they promised they would sweep of these people out and got about doing it. executives from state-run companies and put in different people.

they removed 1600 people from the civil service. they removed 130 people that were removed from public .roadcasters they have been busy doing that. as theyresting part is began to do that, they pushed up pretty quickly against checks and balances that are in the democratic process. .hat has led to a big fight carol: talk to us about that fight. where is it going? >> we have a big moment right on december 19, the head of the court -- his term expired. he has been blocking a bunch of changes that law and justice has

been tried to make the last year. first of all, they try to put an extra three judges on to the court who were not really entitled to be put on. there are 15. they were not the first to do this. government tried to two. next her -- an extra that was extinguished. to and justice is trying .5 instead of the 2-d should be. they have resisted that. the government put through six this pieces of legislation determining how the court should run and the upshot of the legislation is the court -- it is harder for the court to scrutinize legislation, declare it constitutional. it is neutering the court. andl: if we look at poland

try to understand for those folks in the u.s. what might happen as our president-elect donald trump talks about draining the swamp, what are the lessons learned in poland? >> ending the primary lesson is that when you want to do , thating really radical is not the question. largeou want to move -- ins of people out order to make sure a majority area and government doesn't just run over the rights of the minorities who did not vote for them or example. that is the lesson in poland.

it is a mean you start a tradition on what will happen in the u.s., but things have changed enough over the recent years that we can no longer say, look, those countries in eastern europe, they are completely different. they get more radical government. we are getting pretty radical government and decisions now in the west. the point of this is to understand where the pressures will come. midas next, the seemingly touch goldman sachs has. oliver: how some colleges tap into their connections in wall street to deliver top return. ♪ touch goldman sachs has. oliver:

oliver: welcome back. carol: you can also listen to us

on radio on channel 119 on s iriusxm. 9.1 fm in washington, d.c. and area. in the bay in the markets and finance section, how goldman sachs comes out on top in the incoming donald trump administration even though candidate donald trump target of the banks in the campaign trail. >> it has been quite remarkable. the stock is up something like 39% since donald trump won the u.s. presidential election. some of that, a lot of that has to do with donald trump's policies and the fact that a lot of people think he will roll back regulations on wall street. he talked about repealing dodd-frank. it is unlikely that all of that is going to get rolled back but

some things will be first in line. ker has to do with hedge funds nad private equities -- and private equities. >> it is a ban on prop trading and the other is a limitation on steaks and hedge funds. goldman very big for before the financial crisis and stakes in hedge funds and private equity funds remains big for goldman. they have roughly 7 billion left that they have been working to sell down but have not been sold yet. the prop trading have been subject to the ban as well. it is not clear to us how tightly that dan has been enforced in the last couple of years. you have after the

donald trump election, all these financial companies leading the market but then leading into the election, they were portrayed in the best light not only by the public but donald trump specifically. they endorsed hillary clinton. they came out and said she would be a good president. specifically at goldman, there is a relationship between clinton speaking and trump supporters put out in the limelight. how does it happen the other guy gets elected -- where heump did an ad specifically targeted goldman sachs and said how terrible they are. want wantd wall street donald trump to win on the long? >> i wish i had all the answers for you. i am surprised as you guys are, as a lot of our viewers and listeners are. i think some of it has to do with the fact that a lot of

donald trump supporters are not that who the appointment are. is -- i just had a conversation with somebody at see who has been watching this closely. the point is the goldman guys at the top of the administration creates jobs, brings manufacturing back, nobody will care they are goldman guys. they want their economic livelihoods restored and brought back. you have a president-elect was making appointments, it is during the holiday season. maybe the people who voted for him are not watching really closely and then come january into february, the rubber will that the road. let's see what they can do for

me. oliver: as a reporter, i cannot think of anyone more ingrained with your sources. you have been on this beat for a while. the way theirtion own sector has been so favorable to investors? dost has been amazingly i'll. it was hours after the donald trump election and the election results came in and we were already talking to people who were saying this could be good for us. we could get behind this guy. the ability for them to quickly switch and get behind the winner , even though i have been doing it a while, was pretty remarkable. oliver: they may not be ivy league but small liberal arts colleges in the northeast have big wall street connections. >> and sometimes that is good for their endowment . >> there is this unofficial

designation that a lot of people have. northeast liberal arts schools are the ones if you and been able to get into harvard, maybe you can go to coby instead. still a great school. northeast liberal arts [laughter] but, they don't have that same intensely competitive application process. they have double-digit acceptance rates. ander: how does notoriety the acceptance rate translate into endowment? on a very simple bases, it is funny because if you have more applicants will probably have a larger class so for these schools they are much smaller.

kind of what their alumni base will eventually look like. carol: endowment returns. we have seen that from a lot of universities. it has not been an easy year. what about the ivies? >> we need to look at a natural -- national average which was a bad year objective. for the little ivs, he was even worse. it was -3.5%. it is about 18 schools we looked at so it was worse than the national average which is why we really wanted to look into it because you have these procedures institutions with these investment committees that are full of these wall street or's. yet, they were not able to cash in on that to produce the same returns as the ivies because the other interesting thing is the a similars, who have

type of alumni base -- wealthy, wall street, a lot of investment expertise -- they returned a 0.8%. the big difference between the little ids. you usually track the same in terms of performance ?uestion >> i think we were the first people to ever trac the ivies. typically, they do if you look at the numbers. they do track pretty similarly and that is because this push towards the yield model of investing, the diversified funds , instead of doing stocks and bonds, that you hedge funds, private equity. they do all sorts of, almost like strangely unique rings for a fund that the purpose of it is to be forever. this year did not pay off. carol:

one of the worlds most powerful fashion companies is turning his supply chain great. oliver: what may have contributed to accompany living diamonds guard. ♪

oliver: welcome back. carol: still ahead, the men behind gucci doubling down on being environmentally friendly. oliver: investors are lining up to get behind green infrastructure products. we will tell you about the man behind the trend. all of that is ahead on bloomberg businessweek. ♪ oliver: we are with megan murphy to talk about more important issues in the magazine. let's are with the markets and finance section which is about

litigating in germany. >> this is quite common across western europe and the difficulty of pushing forward and it goes into the impediment that you face and run that kind of litigation in germany. consumers and emissions. this guy running this case and trying to generate more money, one of the biggest impediments is that the lawyers do not think that. there is no incentive for them to get this huge slice of the settlement fees. we saw the lawyers take 175 million cut. that is not to say they are profiteering, it is just that s consumer incentivize harm. carol: if you lose, you have to pay the court costs spirit.

>> it is a big deal. carol: the currency has collapsed and created problems in the country. >> there is a nice chart that talks about hyperinflation in venezuela. other countries are countries like zimbabwe, germany. and by our ranking, then as well as the 12th most severe of how much of the currency has deflated overtime. to 1795. goes back oliver: that is incredible. let's talk about the story in the business section which is focused on industry not having good sustainability. >> we look across the high super luxury brands and there is a section that talks about they are looking at how to make tight

bonds in their fashion more istainable and part of that if you are going to grow or source. a sustainable this is important stuff. fashion is one of the industries we look at. think of leather, access and luxury. and youacross brands can look at where you can change this, make an impact. everything from driving workers some wages up and a less permanent environmental damage which is something that is very important that other companies have realized is a real example. carol: we spoke with the conversation. >> caring has put out on the sustainability front. a lot of fashion companies think about it but i don't know if they go forward with enough. enough changes to what they are doing on the backend. carol: you have talk about what

caring is because i didn't realize they changed the name. it is a very well-known company. >> the biggest brand is gucci. bunch of have puma, a other stuff. they are a company that runs these luxury brands. in order to get big, they have to have multiple brands. carol: formally ppr. pino is now the ceo. oliver: about four years ago, they said we will do x, y ,z z measures to be more sustainable. where are they now? >> in 2012, it looked at everything in their supply chain. where they get their precious skins and furs from, from the

sources of the other raw materials. how much plastics they have going into what they are doing. tofar they have managed reach a lot of those targets. carol: i love the detail you go into but you talk about they created a sustainability committee at the board level and some of the conversation is tied into sustainability and the success of his inability. >> everybody has targets. every brand within his company has to be on board. he forced them to be on board. if they don't do it, it will cost them. oliver: what is it about the fashion industry in terms of where the materials come from, related to animals, related to labor. is this an industry where this is particularly in focus and

important to assess? >> fashion is one of the most polluting industries in the world. people do not think of that because it is really opaque. the sublime chains at most of these companies are really overtake and you don't know where your clothing is coming from. sometimes the companies do not know because they subcontract out to smaller factories and so on and don't even know where their own things are being made. it is about margins and a large extent. labor is very cheap and very .asy to move a person sitting at a desk with a sewing machine. we are not walking into factories in bangladesh. carol: the man who pioneered the no money down formula now wants to spread it to other high-tech industries. oliver: we spoke to chris martin about it.

>> it was sounded about two years ago by the founder of another company. carol: we have heard of that. >> interesting guy. that we neede idea to work faster to avoid the worst parts of climate change. and to wean the world off using that are causing the climate to warm. he sold the business, edison and that was back in 2007. he was wondering what to do next even as his company was taking off. he hooked up with a couple of buddies and they formed this company called generate which is designed to accelerate he sold theinvestments that wile of fossil fuels.

carol: smaller investments? >> yes, what big banks do not care about because they are too small. and there is a lot of due diligence because these are new technologies that he people know about. carol: i love what you said in your story to win the world off also feels is one million-dollar projects rather than 1000 $1 billion projects. >> right. like i said, these technologies are being nor by the general banking industry. they started looking into what types of technologies would do the most for the least amount of money. one of the early ones was installer.igner and they had been getting some success applying this no money down leasing model.

battery systems for hotel chains in california. they helped lower their .lectricity bills another one they started with brand.n was this it came out of m.i.t. -- a technology using electric ride microbes that take water waste and convert it to basically clean it by eating what is in the wastewater and converting it to methane to produce power. oliver: what makes it advantageous to use this program instead of saying this is a technology we will buy and implement it. is there risk associated with

it? >> a lot of reasons. the first one is cost. they don't typically have a lot of cash lineit? >> a lot of reasons. the first one is cost. they don't typically have a lot of cash line around to invest in something they don't know a lot about which is wastewater treatment plant. it? yet, they needed one so they agreed to set aside some money for this technology, to try this .echnology it is a simple process. you don't have to build this plant. it comes on a truck, a container. using that single container, .hey can expand oliver: what was going inside yahoo! when hackers stole information. carol: european e-commerce site struggling to fight back competition fromoliver: amazon. this is bloomberg. ♪

oliver: welcome back. sector,n the technology the yahoo! hack was worse than it sounded. oliver: it included victims from the cia and white house staffers. >> back in september, as yahoo! was just announcing they were going to be acquired by verizon, yahoo! announced a really big breach. 500 million user accounts -- half their user base. by any standard, that is a really big deal and kicks off a round of conversations with verizon on whether that price should be negotiated down because of the liability of that breach. come lastly, yahoo! announces an even bigger breach which is one billion user accounts. that's how many users they have. that is basically the entire

company. that kicked off a round of furious negotiations about liability basically and what should the final price to verizon be for a company that will face years of lawsuits. carol: this was another hack that was a few years ago. it was interesting it did not come out sooner. what was also interesting what it was military employees, government employees, intelligence commitment -- employees. it was too got cap into which makes this a more serious story. >> an interesting back story. yahoo! announced its first breach in september. it was from 2014. a researcher actually acquired the database. the leaked information did not match up. it included backup utility

dresses they gave to the company. the story we were preparing was how many u.s. government and military employees gave their official work addresses. for criminal hackers, that is a bonanza because you are able to identify people with very little work who worked for military intelligence. the nsa, cia, dob. that is the story we were preparing. in the course of asking yahoo! about that discrepancy, something nobody saw coming, yahoo! disclose the second breach of that data involving one billion accounts which is a huge deal. oliver: when we talk about the deal here between yahoo! and verizon, why did they raise the price of yahoo!? i can think of one reason people might leave. my dad might freak out.

people will leave and lose eyeballs on their advertising -- what will drive the price down question? >> one concern, of course, if yahoo! users start fleeing in droves, that will be a problem for verizon but that is not the primary problem. this data looking at breach lawsuits could be very expensive, especially when you are talking about loss on the skill of yahoo!. there is an interesting angle. when the vast majority companies that are breached today, the first thing the general counsel tells them to do is to issue and pay for identity theft protection services for all their users. this not out of the goodwill of their hearts. this is because it is an insulation against future lawsuits. the second reason is potentially more distressing for verizon --

if there was theft of intellectual property from yahoo!. that is a big deal because the rival is buying the user base and the advertising technology, client that yahoo! has for their banner ads. both of those things take a serious hit. oliver: one european e-commerce website is struggling to keep up with amazon. carol: that is not stopping them from trying. german --mpany, a they wanted to be like zappos. the shoe retailer. they started as that but moved very heavily into fashion and have done a really good job. they have got 6% of the market across europe. amazonblem is they have in the rearview mirror and it does not look pretty. amazon moved up to 5.7%. they behind one slightly larger player but it is a larger older

one called auto. they will likely get ahead of auto in the next couple of orders. carol: is it high fashion? for those of us not familiar with this online fashion site. >> it is high-ish fashion. stuff, butot nice not super high-end. it is not one of the luxury houses. they have good stuff. they tend to have more up-to-date fashion than amazon. we got a report from bernstein that talks about the relative penetration of the brands they have got and you see they have something like half of the top 20 fashion brands on the u.k., whereas amazon has about four of them. also, it has quite a bit more up-to-date stuff.

stuff, most of their tends to be kind of last season things so they discount it. it is more like a full price store. carol: when i think about amazon, i think about a lot of things, but i don't think about high fashion -- is that a new area they're going into? >> they are definitely trying to get there. the head of amazon's fashion push in europe who just moved from seattle to london, she tells us she was meeting with the ceo of hugo boss, trying to get them sort to -- trying to help them sort through whittling the brand. they are trying to move upscale. they say they don't want to be the place you go for cheap fashion online. they are trying to be a place where you go for trendy stuff. they hired some models and .ooked an italian blogger

they are trying to become hit and cool. carol: amazon is nipping at their heels over in europe. ndo, i assume, is not taking this lying down. >> not at all. they have worked on shoring up the relations with the companies they have got. they are kind of improving the quality of their photos on their the appealincrease of the merchandise they have got. carol: why one company things it's robot babies will prevent teen pregnancy. oliver: this is bloomberg. ♪

oliver: you can catch us on the radio on sirius xm channel 119. on am 1130 in new york. 1200 in boston. am 960 in the bay area. and in asia.ndon oliver: in the good business section, a company in wisconsin says it's almost the $700 robotic baby can teach kids not to be pregnant. carol: here is our reporter. >> they focus on reality works. a private company in wisconsin. they make these robotic simulators. they meant them in 1992 and has become a staple of american education. the problem for the company came in august when this prominent british medical journal put out a study that showed they

surveyed girls in australia that have taken these babies home as part of the teen pregnancy prevention curriculum. they took the babies home and the girls who took the babies home actually were twice as .ikely to get pregnant there were negative headlines around the world that really wrap onto this title because it shows that part of a whole idea of these babies is they will freak kids out into becoming parents. they will not become parents after taking this baby home because it is so exhausting. for the study to show the exact opposite really close a real threat to the bottom line. those first of all, for that might not know about these robotic babies -- i was shocked to find out they were in two thirds of schools which blew my mind. how do they work? tell us a bit about them because you tag along with one student who was babysitting, if you

will. >> i did. the babies looks as real as they can. they are seven pounds. a variety of skin tones. they cried, need to have their diaper changed, they need to be fed. the sophisticated networks. i went to south dakota and followed along a girl, she was 15 and she went to rapid city central high school and had to take the baby home for her child developing class. that was the assignment for the weekend. i just hung out with her as she went about her daily life. we went to her grandfather's house for dinner, we went to walmart for christmas shopping because it was just this month. she is had to take care of the baby as if it were a newborn baby. the cries are actual recordings of real babies.

schedules. the company tries to make it as realistic as possible. carol: when the baby cries or needs a diaper schedules. change, they have to actually do something with the baby? the all that information goes back to the school. >> exactly. it is not as girls by the way. i followed along with a girl because it is with a story but boys doing that well. the students where a bracelet. they cannot take it off. it has a sensor in it so they have two minutes -- and the baby starts crying and you were in the middle of walmart shopping, you have to stop what you are doing -- you have to swipe your bracelet over the baby's stomach and let them know you are responding. you have to figure out what it needs. does it just me to be held? sometimes the baby needs to be rocked like a real baby. thenn, th, the babies are very

technologically advanced. they store all the data in their bodies, in their circuit boards and at the end of the weekend, the teacher downloads the data to assess how a student did. carol: bloomberg businessweek is available on newsstands now. oliver: what is your favorite story? carol: i love the story about robot babies. i had no idea how the company was doing it. they pretty much on the market and these robotic babies are used in about two thirds of school districts across the country. the whole idea is hoping to prevent teenage pregnancy. a study cannot saying, maybe they are not working. companies fighting back. i found out a lot about a company. oliver: i liked the goldman story because i think it is one of the most interesting stories of the year surrounding the election. you obviously have very vocal support for secretary clinton from goldman but then donald

trump has their stocks popping. i think it will be interesting story. more bloomberg television starts right now. ♪ . .

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