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tv   Bloomberg Business Week  Bloomberg  May 14, 2017 4:00pm-5:01pm EDT

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oliver: welcome to bloomberg businessweek. i am oliver renick. we will talk about cyprus. the hotbed for laundering. not just money, people as well. and by 2017 is shaping up to be the biggest year yet for the u.s. heroin industry. and finally, what a murder in kansas tells us about race, immigration, and the future of america. all of that is right ahead on bloomberg business week. ♪ >> we are here with megan murphy and i want to start by talking about the cover story.
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this is a sad but important story in which you guys loop in a lot of stuff. tell us about what happened in kansas and why this is such an important event to put in perspective right now? >> we are proud of the story and the journalism at the heart of it and reporting. we have gone back to a community in olathe, kansas where two indian born engineers who worked for a company called garmin were shot, one of them was killed. one was shot in the leg in february this year by men who yelled, get out of my country. oliver: what happened that night in the bar? >> they were just drinking at the bar, like they do. we sent photographers to this bar, it is not unusual to see a mixed-race group of people having beers. sharing stories with colleagues.
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just like everyone does. the only thing that is a little bit interesting about this is just how mixed this community was. the people don't know the investment these companies are making. this is a town that has a hindu temple. there were cricket leaks. leagues.were cricket there are areas where there are indian born families having celebrations of the community. it was disrupted by a man who came in and shot and killed and opened fire in this bar. we tell the story of people who work and have been in this town who came here from california and the east coast, who said we came here for the great schools and peaceful life. oliver: the american dream. >> this is a story of america's america. not trumps america. and it is how this has happened among rising rhetoric, limiting h-1b visas. which is particularly how indians have got access into
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this country and how it makes people feel so deeply unsettled and fearful for their family's future and for the first time looking over your shoulder as they walked down the street in kansas, and how disruptive that can be. we really need these kind of models and skills training for our workers. this is the workforce we are looking for that will be the next generation workforce. not the workforce in 10 years but the workforce of tomorrow. working for these companies in this kind of town. they're worried about whether or not they will be able to stay in this country and if this violence is isolated or will be more prevalent -- the very fabric of the community starts to peel away. oliver: at the local level, what is the government and local communities doing to try -- there is also a big cost economically at stake because people have built up this area? >> completely. we spoke to the head of police about responsibility in there was almost a disbelief among so many officials.
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this is not a town -- have you ever heard of olathe, kansas? i can be honest and say that i hadn't. this is a microcosm of america that works in a way of providing opportunity and building an economic infrastructure. developing products people consume in use. in a part of the world a lot of people would not know this is happening. it is happening in parts of india, is happening in japan and south korea. there are communities like this all over the world we don't know about. this is a community that now is under threat, and i think officials feel very responsible looking at their demographic breakdown, looking at what they have built, and realizing the fragility of that. they need to make this community feel safe. you mentioned crimes against muslims, these are hindus and sheiks confused with isis recruits. it is unacceptable in a democracy and i think by bringing the stories to people's
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attention, they will understand these struggles the people face and also their successes. oliver: that is what you have done here. thank you so much. i spoke with ron bartus on the challenges of putting such a sad story on the cover of business week. >> we have this headline, and it does sort of get to the fact that this is something, this is a crime that happens in a state in the u.s. but has larger implications. we got the most appropriate way to show that was a public memorial for the tech worker who was murdered. we got that worked. oliver: there are two things i noticed. the photo of the victim is not large. it is small relative to the amount of space and the text is very straightforward. it used the standard bloomberg font. it does not draw away. it is a colorful. it is just very to the point. >> you don't want to distract
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from the point. you want people to have a sense of what the story is about right away and on the inside, we have a good shoot of the town itself. for the cover, i think you want to see the victim first. oliver: up next, the refugee modernizing the way money is sent back to home countries. as venezuela descends into chaos, more and more citizens are packing their bags for the united states. this is bloomberg businessweek. ♪
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♪ oliver: welcome back to bloomberg businessweek. in the global economic section, a growing number of middle-class that is willing citizens are fleeing to the u.s., specifically miami. we talked to reporter margaret newkirk.
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>> you have a crisis that is getting worse and worse in venezuela. the economic level, i think 5100 boulevards is one dollar. people with good salaries are now earning $50 per month. food, medicine, everything is in short supply. they were coming with very little money. that is different from earlier generations of venezuelans that first started coming here after chavez took power. oliver: for a long time, venezuela was a place where people came to. after the rule of chavez, people -- it is a different picture. do they think there is hope or there a life to create here? >> they miss venezuela, but most the people we talked to do not want to return. they are making a life here. they are applying for political asylum. most of them probably will not get it.
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that would mean deportations possibly in two years or three years. oliver: and looking at numbers from your story you'd there is estimated 3 million venezuelans by 2013. -- 300,000 venezuelans. these are numbers that keep adding up. how is this shaping the culture? i thought it was interesting that it has shaped miami. where you have a venezuelan demographic that is booming. >> you see the little restaurants that sell venezuelan sandwiches over the place and the skyline has new venezuelan designs on the high-rises. then you also have lots of venezuelans looking for help. something kind of knew. oliver: is the entire families coming over? is a young folks working to send money back to their country? is the wave of immigration out of venezuela something that will
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continue? >> it is both. it is both a young, single people and families. i did not talk to anyone who was sending money back other than a guy who was trying to help his mother get medicine for cancer. a couple of numbers are pretty interesting. you had 14,000 political asylum requests in the fiscal year that ended last year, that ended in october. so far this fiscal year, 14,000 already. that is six months. it is on a pace to double. oliver: speaking of refugees, in the markets and finance section, once a somali refugee, he is working hard to make it easier to send money back home. this month, his online money transfer program is connecting to android pay. i talked with reporter edward robertson. >> kenya was the first country where you saw really widespread
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dissemination of mobile money. that is 10 years old and it is long enough to look at the impact. a study m.i.t. professors did last year showed it had listed about 140,000 households out of poverty. it has done so because it provided them with a way to pay their bills, save money, collect money, not get robbed, which is a factor in many of these rural communities. kenya is the place where you can really start to see economic impacts from mobile money. now remittances are affecting that, and increasingly as flows from families in the u k, the united states, japan start to go to africa, india, southeast asia, you will probably see more economic influence as that kind of ratchets up the volume of hard currency that goes to those
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markets. oliver: prior to this, was it cash and envelopes? what was the method for remitting money back to the home country? >> it was anything and everything. it was going to remittance outfits that set up shop on main street and newsstands, it is going to western union, which is the number one money transfer player worldwide both to developing countries and the developed world. it is using ancient networks. they have been going for centuries and transfer money through systems based on trust, like community trust. this has gone on since the beginning of civilization, people have moved money around. now with the advent of the smartphone, that is why you are starting to see this big change. oliver: when it is happening in the realm of the electronic, i imagine there are also legal hurdles that have to be crossed.
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what does this open up in terms of who is sending money, what the money is for, and is that potentially going to throw a wrench into applications like world remit? >> there are a lot of rules and regulations to come in to play since 9/11 and trying to counter terrorist finance networks. there is also a lot of rules of -- rules that have come into play to fight money-laundering and other illicit activities. those systems pose a challenge for those digital remittance outfits because they have to ensure they comply with them. increasingly, they have turned to software that basically surveilled all of the transactions that run across the platforms and tries to fly -- tries to flag anomalous or abnormal behavior that may indicate that there is something illicit going on.
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these platforms are really depending on other software providers to help them flag suspicious activity. that also poses internal challenge for regulators because they have to make sure they are monitoring all of the extra volume that is coming on through these online players in addition to the traditional banking. oliver: in the global economic session, cyprus has been known as a hub for russian finance. now they are finding new and sophisticated ways to camouflage what is happening. >> even the u.s. get you residency, a lot of european countries do it, too. all the small islands in the caribbean do it. cyprus has perfected in the last two years because cyprus relies on foreign investments.
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everybody i met over there told me that. officials, businessmen, bankers. when foreign investment dried up after their crisis, they needed to find new ways to attract that. they thought, ok, we can speed up how we get passport for foreigners. it is really fast, it can be as fast as three months. a russian guy and met while i was there, over dinner and drinks, he got it in five months. he bought two villas, and by december, his passport was in the mail. he got it. it is faster than any other place than you can get it and it is easy. you don't even have to live in the houses. you can rent them out
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immediately. it is an investment. oliver: why do russians in particular want this? >> they have multiple reasons. russians have been trying to get their money out of russia for a long time because it is a scary, unstable country. politically, you're in one day and out the next day. one morning you wake up with cops at the door with all of your assets seized and you are in jail. you want to keep some of that out for safety. a passport helps you with the safety of little bit, especially if you get it for your family, it helps to get passports for all your family very easily. if you keep some of your investments in shell companies in countries like cyprus then the russians cannot see them easily. oliver: russians have been doing this through different countries
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but because cyprus had a need as well, it is supplied meeting demand. cyprus gains from this and that in order to get this passport, russians have to invest in something. what exactly are they investing in? >> all kinds of things. real estate is a top choice. you can just buy houses or commercial real estate like a hotel in trouble, or even government bonds. government bond prices have been doing well in the last couple of years because people have been buying them. just last year they got 4 billion euros of investment. for such a small country, that is one quarter of their economic output. oliver: coming next, james comey out of the fbi. and the return of black-market heroin. we talk about how it is spreading across the united states. this is bloomberg businessweek. ♪
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♪ oliver: welcome back to bloomberg businessweek. you can catch us on the radio on sirius xm and in new york, boston, washington, d.c. and in the bay area. and in london and in asia. in the politics and policy section, this week, president donald trump fired fbi director james comey. the move raises more questions than it provides answers. why was he like go and ultimately, what does it mean for the white house ties with russia? we talked with editor matt phillips. >> the story the white house is telling is that the president received two letters from the department of justice. one written by the deputy attorney general rod rosenstein,
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who was just confirmed two weeks ago, laying out the case against jim comey. arguing that he had lost the credibility and faith of career staffers inside the fbi. as evidence, they pointed almost exclusively to his handling of the hillary clinton probe. specifically they were angry about the press conference he gave his last july in which he came out and criticize clinton but said no prosecution was warranted. these were all facts that were well known for months and months. on the campaign trail, then candidate trump praised comey by and large for reopening the investigation just 10 days before the election. trump then took those letters, acted on them, sent a messenger
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to the fbi, his longtime bodyguard, to deliver a letter to director comey, who was in fact in los angeles giving a speech to fbi staff out there. he, as it turns out, found out about his own firing from the news. oliver: what can we read between the lines in terms of why they decided to revisit the situation of james comey and the investigation? >> timing is the question everyone has. the timing is very bizarre. these are all facts that the -- that have been known for months and months. the president has actually on a number of occasions praised director comey, even since he is taken office. so even republicans are scratching their heads on the timing of this. the elephant in the room is really the russia question, and that the fbi was conducting its own investigation into trump's campaign. and what, if any, collusion or coordination existed between his
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campaign and the russian government. so now the president will be in charge of nominating and fbi director, who will be leading an investigation into his own campaign. it is very strange. there is no real historical precedents for this. oliver: also on the politics and policy section, 2017 shaping up to be a record-breaking year for the heroin business. on top of that, the product is more dangerous than ever. >> i have been reporting on the heroin epidemic off and on, and one thing i was noticing is when you talk to police officers, first responders, people who are dealing with dealers and addicts on the ground, the market dynamics of heroin are shaping up to make 2017 probably the worst year ever in terms of overdose and profit motive for dealers. that was what i was really after with the story.
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what is the supply and demand dynamics as a traitor like? oliver: where did that taken you? regionally, we know there are hotspots around the country. what area did you look at? >> i was interested in cincinnati in particular. the reason cincinnati piqued my interest is because they have seen an influx of some of the most dangerous synthetics. they are really potent and toxic, and the backside of that is it kills customers. if you are a heroin dealer and you cut it into your product, you're risking causing overdoses which doesn't make a lot of sense if you're trying to make money off these people. but the reason they do it is because it increases the margin so dramatically because it is cut so many times before you sell it because it is so potent. it is also a marketing device. if you have it in the drug, everybody knows it is the most potent thing out there and people are chasing bigger and
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better highs then fentanyl, it is a really strong way to say, i have the strongest heroin. oliver: as you point out in the story, one is an elephant tranquilizer. >> it is not approved for human consumption. it is approved for use by veterinarians to tranquilize large animals. it is actually called rhino on the street, i found out while reporting on this, which harkens back to the fact that it is a tranquilizer and not meant for people. oliver: this has been a focal point in the past year or so on the campaign trail. president trump along the campaign talked about drugs coming from mexico. he also talked about the opioid epidemic and what he would do to stop it. how well are those promises holding up in early signs from the administration of what they're going to be doing to combat it? >> i had one person who researches this describe to me the situation the federal level as chaos. we don't know what it is going to look at yet.
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on one hand we have president trump clearly speak out about the opioid crisis. he obviously is aware it is happening, he obviously has made a lot of promises about helping to deal with it. at the same time, we have the republican health care bill that would reduce medicaid substantially and reduce treatment. we've also seen the draft budget from the white house suggest they might be cutting one of the major offices that deals with the opioid crisis, a 95% funding cut. if that comes to be, that is a dramatic move. at the same time, they could be reshuffling that money elsewhere. we don't know all the details. at this time is not totally clear what the administration's response will be. oliver: up next, the eu watchdog investigating apple and google. and why cruise line operators believe their industry is the best position to profit from cuba. this is bloomberg businessweek. ♪
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oliver: welcome back to "bloomberg businessweek." i'm oliver renick. still ahead, can a single powerful personality solve the positions that institutions cannot? and there is one you official that wants to make sure they play by the rules. then hours my vacation guide that could literally save your life. all that ahead on "bloomberg businessweek." ♪ betty: -- oliver i am back with megan : murphy to talk about some must reads in this edition. let's talk about strongmen and the change we've seen in
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politics around the world. megan: this opens the book and is a strong read because it comes out of the french election, what we saw with emmanuel macron taking a commanding win over le pen, but it is actually talking about how the trend of strongmen rulers is either at its beginning and is going to roll out in a mini way, what is referred to as many trump, in places -- referred to trump in places like indonesia in turkey and the netherlands. or could we be at the end a strong man politics? if trump, given everything that goes on around him, really fails in this dysfunctional political environment, we might be at the apex of this trend. it is a fascinating look at places around the world, where you don't know where strongmen are in place to bring back -- no other word for it -- authoritarian forms of government. oliver: that is a big question after france, is it is a turning
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point or a blip on the trend. we talk about strong women in the features section, but not in the same sense. this is about cracking down on corporations and one person leading the charge. megan: the danish politician has carved out a reputation for herself as taking on big companies, whether it is google famously demanding $14 billion in back taxes from apple. has also looked at some other bigwigs. caused a lot of controversy, but the reason why i love the profile, you really get a glimpse of someone who keeps a big sculpture of an outstretched finger -- i will not say which -- and refers to it as a statue that she learned that you are not going to please people all the time. she is not doing that, making waves but taking prisoners. oliver: it is a great corporate story and a great look at the person. we got those details from editor jeremy keane. >> she is the danish politician that is the commissioner for the european union. she has come to prominence by
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, most notably in the last year or so, levying a decision against apple for state aid in ireland of more than $14 billion. oliver: that came as a big surprise. >> i think it did. they knew she was pursuing the case vigorously, but the amount definitely got attention. i believe it is the largest such decision ever levied against the company. oliver: it seems like, when you are an individual able to lobby $14 million fine on apple, that is a big feat of power. tell us about how the competition commission works? >> i believe her office -- i think it is 900 people. it is definitely hundreds of people, a large research staff that kind of goes in, makes these decisions. the eu famously loves its rules. there are certainly differences in the way they go about it, particularly where
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state aid and tax incentives are concerned. by and large, the spirit of the laws are similar to here. you do not want to create monopoly capitalism and have an imbalanced market. she has the full force of the eu behind her in making those determinations. oliver: there is a line in the story that encompasses why what she is doing so unique. large american multinationals are not used to being stymied overseas. it is very simply put, because -- take apple for example. we always talk about these companies that do inversions, or companies that put their cash overseas. places where they have big cash, like ireland. they go to countries in the eu that are more favorable. this is sort of a push in the opposite direction. she is looking at google right now, facing several different inquiries. this is not something that american companies necessarily -- they obviously don't want it. to a certain extent, are they maybe suprised by what is happening? jeremy: i think so.
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bloomberg news did a really good in-depth look at how the apple case went down and the different -- and the extent to which it was a surprise to the company. from their perspective, i think the idea is -- what the math points out is the jobs these companies bring in, the innovation, are ordinarily very welcome. that is the assumption, they job creators, we want them there. i think i am sort of channeling the logic here, but i think it would be that by making sure the rules are fair, it opens up the possibility for if somebody else has a great gadget they want to introduce, they can ensure they can still compete with google or apple. there is certainly a disagreement among the companies and the competition commission over the interpretation of those rules. oliver: up next, business week's
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interview with craft ceo and owner of the new england patriots robert kraft. he talks about president trump and why he doesn't always mean everything he says. and then a soap opera in silicon valley. we will show you why it does not pay to expose your employers' alleges candle. this is "bloomberg businessweek." ♪
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oliver: welcome back to "bloomberg businessweek." i'm oliver renick. craft's ceo and founder robert kraft sat down with bloomberg businessweek and opened up about his relationship with the president. here is editor in chief megan murphy. megan: megan craft, the billionaire best known for ownership of the patriots, one of the most successful franchise in any sport over the past two decades. we sat down with him and talked about what it takes to build a
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successful franchise. what it means to maintain that level of success. he is known as being a very personal owner. bill belichick and tom brady , both have been there 17 years in a business that sees incredibly high turnover. we talked about his personal relationship with president trump, who has known for a long time. he sees a different side that a lot of people see. oliver: let's talk about sports. get the fun stuff out of the way first. he talks about his first foray into sports ownership, which was in tennis. this is fascinating, i had never heard it. it is interesting how many times he went to that to draw on that. megan: his first franchise, which i loved as well, was the boston lobsters. it was professional tennis. he explained it to me that it was lobsters for new england, but also "lob." what he learned from that -- when he first bought the lobsters, they were good, but they had a coach. what they did not have was a star. he realized that in any
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franchise -- he got martina navritalova. he realized going forward that he always needed a star. the other thing he realized was that most of the money you could make was own things that make revenue other than ticket sales, which is parking and concessions. he brought that with him when he built gillette stadium. the only privately funded sports stadium, finished it after 9/11. took out a personal loan, his businesses, to find the construction -- to fund the construction of the $300 million stadium. he knew that the key was going to be owning the parking, concessions, and everything that goes around a successful business. he learned and modeled them and that's a big part of what has made the patriots such a financial juggernaut. oliver: let's talk about politics. when i think about a guy who only wants to win -- who is driven by winning and has that attitude where people can hate us, but we are still winning. there i say, it seems like there is a bridge to the persona of
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his friend donald trump. megan: whenever he talks about his wife, he literally looked skyward and put his hand to his heart, referred to her as sweetheart. she passed away. he said in the interview that donald trump called him every week for a year. he says in this interview, which i have not heard him say before -- if he was so down after myra passed away, he thought he was going to die. he was having the darkest of dark thoughts. he said there were four or five people around him that got him up every day, got him going. one of those was the president. what i find fascinating about that is that this is a side of the president that a lot of people don't see, but it is something that you hear from some of his closest, long-term friends. that he is a listener, loyal, incredibly loyal friend, and that he values that. the other thing he said about the president is that, i know him closely enough to not
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believe everything he says. and he does not believe everything he says. the day we did this interview, he had gotten a call from the president, talking about the air force academy and asking for advice. they have a very close relationship and a very different relationship than people see of donald trump. it is critically important, particularly in the toppled of these first 110 days now, that we see a different side of donald trump. oliver: characteristics will does he think those translate well into the presidency? megan: i think he thinks he is finding his way, learning the hard way, a little bit like bob kraft did with the lobsters. he will have to change. he will have to pivot more quickly and, frankly, learn to get along in washington. i know and you know that is a tough town and you better be willing to compromise. he will not get anything done. he will not escape the total partisan blockade unless you can learn to go along and get along. oliver: in the technology section, turmoil at rothenberg ventures shows why silicon
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valley doesn't exactly breed whistleblowers. we talked to reporter adam satariano. adam: mike rothenberg, who was in his 30's, started a venture capital fund after getting out of stanford. he is kind of a contemporary in stanford around the same time as mark zuckerberg and the guy from instagram. but he has created this venture capital fund that he says is sort of a venture capital fund for millenials. he got known for throwing elaborate events around san francisco and the bay area. he was renting out luxury boxes at sporting events. he rented out at&t park in san francisco where the baseball posts this where he big event called founders field day. he did this other one that i thought was funny that was called puppy parties, where they would rent puppies and people could come pet them. all of this over-the-top stuff going on around. oliver: that is when the
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chickens come home to roost in the form of francisco yourdon. tell us how he became the centerpiece of this investigation story that you write? mark: he joined the company at the beginning of 2016 to work on part of the company's website, and to run its i.t., which he -- but he was also having concerns about where the money was coming from and how it was being managed. rothenberg set up these other entities, which he controlled more. and money from all of these different things were being commingled in a way that investors were not aware of. he went to the securities and exchange commission and voiced his concerns, and began sharing information and documents with them, while also working at the company. so he became a whistleblower. oliver: so riordan began working on the website. how long? kind of give us the timeframe. how quickly was he able to find this stuff out? was it pretty clear, pretty
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obvious in the sense that it did not take years at the company? it did not take a long time for him to sniff this out? mark: no, he found it pretty quickly. he worked there may be six months. he went to the securities and exchange commission and had some meetings with them, and then he learned that rothenberg, in adjusting their i.t. system, was deleting email accounts. the sec sent a note to rothenberg, don't delete anything, hold onto your records in case we want to look at them. oliver: to the employees at rothenberg? mark: right, to the fund itself. a weekafter that, about later, francisco riordan was terminated. he was fired. there is some dispute there. rothenberg said he had already given notice before this, and that this basically accelerated his exit. he says that is not true. he is sort of this rare whistleblower who has come forward and gone public with
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what he has done in silicon valley. stuff happens behind the scenes a lot of the time, but he was going to tell his story. oliver: that cuts to the crops of the story, the idea that this type of stuff is happening, but a lot of people don't come out and talk about it. why is this particular story taken hold within the culture? what about it resonates so much? mark: the thing with rothenberg ventures that resonated is it is kind of a soap opera. over the past year, there was as -- this big rise were they were holding these big events getting a lot of publicity. then there was this dramatic fall. there were a lot of stories about the mismanagement of funds. things like that, but it was not clear. the sec began to investigate. people were following this saga. know who theed to people were behind some of this information and what was leading to the investigations and the stories being done. francisco riordan was one of the people who was instrumental in
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all of that. oliver: what happens to riordan at this point? what is the future of a silicon valley whistleblower? mark: he is an sort of uncharted territory. it is unclear what will happen. to a certain extent, he has already had some trouble looking for work. he has gone on some interviews. rothenberg ventures is already a ding on your resume, but to add onto that, he has made the decision to go public with his role as a whistleblower. there sometimes can be a stigma associated with that. and how companies will see that is whether or not they see it as him being an ethical person, that he did the right thing, or it makes them concerned that he is going to turn around and do the same thing against them. it just makes his career prospects a bit more complicated than your average software engineer in san francisco. oliver: to be fair, what has rothenberg himself said against the claims? mark: rothenberg has said they
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are cooperating with the sec and they think they will be able to reach a conclusion with it. he also did a facebook live video in which he blamed a lot of the problems on sensationalist media coverage. he said that he had not done some of the co-mingling of funds. i tried to interview him and he declined. oliver: up next, the company that is providing night visions to satellites, and why cruising to cuba might be a better option than flying there. finally, a vacation guide for those of us suffering from insomnia and stress. this is "bloomberg businessweek." ♪
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oliver: welcome back to "bloomberg businessweek." i'm oliver renick. you can also catch us on the radio on sirius xm channel 119, a.m. 11 30 in new york, 1200 and
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boston, a.m. 960 in the bay area. and in london on the abm ux three and in asia on the bloomberg radio app. in the technology section, new generation of satellites that have night vision and can see down to the millimeter. jeff: the most interesting thing to me is the baselines of this thing called synthetic aperture radar. raised about $12 million to fund further development and says it can transform what is called sar from the realm of military and spy service satellites to the realm of hedge funds, managers, that kind of thing. oliver: this is synthetic aperture radar. tell us exactly what this is and how it works? jeff: basically, these satellites that have traditionally been the sort of province of the pentagon or governments around the world. they are about the size of a
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school bus and weigh 2500 pounds and have giant antennas on them. the reason is because they have to beam radar 300 miles down to the surface of the earth from space. the idea being that the radar kind of bounces off the earth itself and will travel back to the sensors on the satellite, which then kind of reconstitute the image, interpret the data so they can build. as far as we can tell, the most accurate or beautiful images known to man -- spoiler. oliver: speaking of accurate, it clearlike it is pretty why the government likes this technology. as you point out, the accuracy is such that you can see trademarks from a car or truck -- that you can see tread marks from a car or truck that has driven over sand or dirt in an area. that's pretty incredible. jeff: the millimeter resolution level. historically, the big advantage that sar has over
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conventional telescopes is that it can both see through clouds and work at night, which a lot of satellites cannot. oliver: cuba is opening itself up to tourism, but the island's infrastructure leaves travelers wanting. cruise lines say, no problem. we got the scoop from chris paul mary. chris: they had a big bump in tourism last year, which is the first one that americans were allowed. about a 70% increase. in the first quarter, 17%, 16%. most of those people are flying, but the cruise industry is kicking into gear just now and overg a huge bump, well 100,000 passengers last year and growing this year even more dramatically. in cruises growth versus airlines, it is definitely in favor of the cruise ships at this point, is it not? chris: overall, more people are flying, but what happened was, there are limited number of
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flights, landing slots, allowed, and all the airlines jumped in last year and overestimated demand and had to cut back on flights and flights smaller planes as well. the cruise lines are taking it a little slower. there was a big increase this year. they do have advantages in the sense that, one of cuba's problems is that it does not have a tourism infrastructure. a lot of countries, particularly the ones americans like to, have that. they do not have quite the level of hotels and restaurants. the ships have an advantage where you can always come back to the ship and sleep and eat if you don't see what you like on the island. oliver: you did a lot of research into the different lines going. are they competing for a time and passageway there, or is this a big market for all of them? chris: we will see how big a market it becomes. right now, nobody of the u.s. carriers are stealing their two years ago, and now there is nine different lines. it is a big jump.
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they all have different approaches. carnival was the first one last year, with this new cruise line called fathom. it was designed to be a sort of evolving tourism, you could work while you were taking a vacation. it did not quite take off as much as carnival hoped. they are now going to start service next month with a traditional carnival ship. all of the cruise lines are taking their own approaches. some are just making it one stop out of part of a two week caribbean cruise. norwegian, whose ceo was born in cuba, taking a more specific cuba approach. one of the shortest trips, just four days, an overnight stay in havana on the ship. norwegiansa boat the god that offers free drinks as part of the package, so it will be a real festive atmosphere for folks. oliver: if cuba isn't your destination of choices, don't
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worry. the etc. section has a more transformative guide to vacation. i will let bread begin walk you through it. >> we took this approach saying we have things during the year we want to work on, whether it is reducing our stress or generally feeling better, or being a good samaritan, or repairing the relationship that is not going as well as you would like it to. we picked 12 locations in total, two for each of the things we are trying to fix, so you can look through this and say i want to work on this, i will go here. oliver: it is a pretty constructive way to approach vacation. chris: a lot of the times, vacation is just, i got to get out of the office, and you choose somewhere you can get somebody to go with you, or it is a default beach. but this is specific to what you want. how did you guys dig up all of these ideas? because i haven't heard of a lot of them before. chris: there is a ton of hotels now -- a lot of places trying to cater to very specific niche needs. in the dominican republic, there
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is a place called the extreme hotel. basically, you talk to them before you get there about your weight and fitness goals. by the time you land, there are people ready to set in motion a week of exercise and healthy eating to help you achieve those goals. you do have to think about these vacations before. you cannot just pick up and go that weekend. when you get there, hopefully they are more productive. oliver: in that same vein, you guys take a pretty holistic approach to it, where you also indicate some activities you can do while you are there. maybe it is reading a book on that topic, or maybe an activity. chris: we made six extracurricular recommendations, day trips you can take. talking about places like arizona, india, indonesia, berlin, and portugal are actually great places to learn how to sleep. i know you would not think of berlin as a great place to learn to sleep, but the swissotel actually has a somnologist on staff who will help you with
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that. oliver: "bloomberg businessweek" is available on stands right now. and also online at bloomberg.com. more bloomberg television starts right now. ♪
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>> coming up on "bloomberg best," the stories that shaped the week in business around the world. decisive days in politics, from paris to the soul to washington, -- with new faces entering the spotlight and familiar figures leaving the stage. >> he has to govern mainly to the right. he definitely has pushed the softer line toward north korea. >> different times for different reasons, people asked for an fbi -- for a new fbi director. now they're going to get one. >> in the midst of these storms, markets stay mostly calm while leaders look ahead to gauge what is on the horizon. >> i am worried about european banks. >> markets are really no good

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