glaxo welcome to bloomberg businessweek. if issuing to grow new skin. they are trying to protect germany's cautions and spaces getting closer and cheaper than you think. like all of that i had on bloomberg businessweek. that ahead on bloomberg businessweek. >> we are here with the editor-in-chief of bloomberg businessweek. artificial skin, using his skin.

>> yes, this skin is rich in materials that are very helpful in healing wounds for people who forget about the people who are appointed with persistent wound care. whether you have diabetes or a burn. they really have developed a this market with their skin. this can be used and it is testing better. i didn't know that another product being used is pig intestines. what we want to show is that the future is here. andre adopting products adopting things that we never thought was possible. it really goes into something you probably have never heard of and you should probably know. hundreds of millions of people supper from wounds around the world. this could be a breakthrough. oliver: this harkens back to

material science. it is a very specific sort of technological advance. there is a lot of interesting development happening. these ones asose being the most interesting were most compelling in terms of showing where technology has gone? >> i think we always want to bring it down to people. when we look at global tech we don't want to just do an issue. this, the story about their skin is personalized. this guy who found about this product traveled to finland. he had an issue with his job and this is really helping him. -- putsthis purpose technology in contact. it changes normal lives. it is more accessible to people.

that is why i love this issue so much, it is not just algae. -- technology. >> we think everything is happening in san francisco that it is not. we can't bring that point on to people. that is why i call it global tech. silicon valley is a microcosm, a lot of people have stereotypes of it. what i think is really important is to get the dynamic of how technology is issued globally. the centers where it is cropping german computer clubs. that is the defining thing about the technology, it is happening everywhere. oliver: speaking of berlin, this is such a bizarre story that has such meaningful impact on elections.

there is also a great look at the people here. tell is what the story is about. thanks we hear a lot in the press about russian hackers and hackers and disruption and this is the group in germany that is actually really well-liked and has been working on safeguarding the german democracy from packs for quite some time now. it is such a different tale of hackers. it is a story of love, hope and optimism. the intersection audi with hacking. this is a special one and i'm so glad we profiled it. >> and a cocktail. >> it is not rum and coke but it is something like that.

>> this has been around since the early 80's. i have been following them around for the last several years. among the thousands of members and even thousands more of them who come to their offense all throughout the year, you have people who have information security, people are just starting to hack. older generations who run the biggest tech prep -- tech companies in germany and teenagers who are interested in the trade. that is what they are trying to do. they started as a warning of the dangers of what could happen with tech -- computer technology. now that we see some of the things that are happening, we are looking at them now. the latest threat, which is the threat to democracy. >> we want to talk about that. this is more about how this

group is a guerrilla resistance against some of the things happening around the world. first tell us about where this came from. who were the founding people here and how does the composition look now? beginning there was a philosopher and he had the manifesto and started talking about hackers. through to you got the 80's and 90's they had performed some really spectacular public hacks. they found a way to set up the website and have a bank essentially pay them and automatically equip. they gathered the equivalent of $50,000. spectacularly they returned it to the bank. had the thing euros of german officials where they were promoting passports and showing

how is it was to get a minister's fingerprint off the glass. they reproduced it in their own magazine on pieces of rubber and it really be read by most readers. these restaurants that help them advertise to the german public that they should be weary about what they read in the newspapers and the promises that are made to them by banks and governments about their own personal cybersecurity. they continue to this day to do that kind of thing. is of the crucial things that 10 years ago they did a similar thing with the voting computers that could be rolled out in germany. they said that we could probably sees them how to play. within a month they had one of these rudimentary consoles, playing chess but playing chess nonetheless. badly but chess

playing chess nonetheless. terms of thinking about cyberattacks and hacking, why is the united states so far ahead of everyone else? we started looking at the data being gathered around the world about big news and other elections and one thing that we saw was the internet institute at oxford that was tracking twitter activity and what they found was much higher levels of professionally made news versus the amount of other political content on german twitter then there was in the u.s. or the u.k. in the run-up to elections. theanswers included terrible history of germany, the way they used surveillance on the people. thisp to -- right up to grassroots resistance of chaos

computer club. they are really a social activist digital rights organization. they are a hacker group but they are also a lobbying group. >> online, you will find photos of the chaos computer club. -- s >> how do you approach the pictorial elements of it? >> you want to capture the wild of this grouprgy of 800 people. next this picture certainly captures the chaos of it. >> the programming nights are actually public outreach that they do, bringing this to a wider audience. they do it with nash. -- panache. up temporary kiddie

pools and chairs and all kinds of wacky energy. >> show me some of the other pictures. >> sure. >> there are probably so many different things that you could shoot, there is a lot of activity going on. you did show the goulash. >> we did, this is a great iconic this is an hipster thing at this point. as a photographer, i am sick of looking at this. they had their shoes off and they set up these large banks of an old german factory in southwestern germany. of coding rave, in some way. >> the picture really tells it.

really anlike it is office, it is just a ton of people working on this. >> right. they are really getting into it. >> up next, nokia fights to stay relevant. china may bend missing out on a big room, we will tie you -- big boom, we will tell you which industry. this is bloomberg. ♪

♪ >> welcome back to bloomberg businessweek. catch us online at businessweek.com and on our mobile app. in the global technology section, nokia is working on making itself over. here is reported drake bennett. >> they came out of nowhere from this very small country to markete the mobile phone

for 15 years. they were the top of the market. motorola and other people like that, before falling pretty precipitously off the cliff. that's what country is finland. >> what are they doing right now? they used to be so ubiquitous. they are pretty much out of the consumer market, their clients are basically verizon, deutsche telekom, these big level providers. they sell the stuff that is the plumbing of mobile infrastructure. it is the cell towers. >> they sold some of their business to microsoft. the handset business and nokia was doing terribly and they got out of it by selling to microsoft. >> what happened to being ubiquitous, on any mobile phone

market and then all of a sudden not. >> the iphone happened to a lot of people. nokia was one of the biggest victims of it. busily made a lot of money on these phones, they made them fairly cheaply and they were .eluctant they opted for a cheaper model and people did not want the phone, even in finland. that is not good when you can't get to home base. >> now what they are doing is a are -- is it about data services? providing an essential service? >> it is all the stuff that happens between my phone and your phone. nokia provides that. transmitter, it is the radio transmitter, it is the antenna. increasingly it is the software is degree it

outweighs to more efficiently is this limited bandwidth to sabotage people's oh -- satisfy people's hungers. >> it turns your voice into a digital single and then the sound of a voice. it is all the software that keeps track of whether you are a verizon customer, can you use this, it is taking this complex choreography happen. >> they are also making a big bet on future choreography in the form of 5g. about thisthe thing business, there are long periods where people are slowly up grading or maintaining their records and every several years there is a jump to a new generation of wireless standard. 5g is the next one. it is due to start coming online in the next couple of years. >> there are a few limited,

city-based trials going on, south korea is hoping to have a system in place for the olympics. it is still a couple of years off. >> does it work so well >? >> it is complicated. the problems are solvable. the other question is whether we will need this. a lot of the stuff for you and me works pretty well for the uses we need. the argument that no kim makes is that there is this whole new generation of stuff that we will be able to do with this increased capability. >> such as? these machines talking to each other, wireless cars, automated factories. they can be much more fluid

because they are not tied to a cable. basically, all of these other things will get smarter and wired data and we will need this -- this is bloomberg businessweek. ♪.

♪ oliver: welcome back to bloomberg businessweek, i am oliver renick. in the technology section, u.s. lawmakers are blocking chinese purchases among record dealmaking in the ship industry. >> here is reported in king. >> this was unprecedented. is the history of the chip industry, it is getting together, rapid pace consolidating into a few concentrated companies that are responsible for the majority of reduction. -- production.

>> when it comes to chinese companies that want to be in that consolidation wave, they are being left out. how come? primarily a u.s. industry. china is the biggest market for ships, 59% of the overall market is sold into china but it is a u.s. industry. way to get expertise, the fastest way to get market share is obviously to go out and buy it, go out and buy companies. what we see is the u.s. government does not want that to happen. >> let's talk about one specific person in the story. i think it is an interesting antidote. -- villerback.ck tell us about his company. >> he is representative of

everything that we just talked about. it got to the point where going to that next -- from hundreds of millions of dollars in revenue, it is too much for them. they are obviously looking around and looking for a buyer, china is out there, china is a national policy. clearly, that is something that is attractive. there was a partner found and everything screeched to a halt. >> there is an interesting stat in your story that jumped out at me. the 10 largest some conductor makers control about 76% of the global market, that share is rising. none based in china, that is ironic considering that china is such a huge buyer of chips, they

buy the most of anyone else in the world. >> just to put that in perspective, they said imports of chips to china absolutely outweigh imports of oil in terms of total value. obviously, from the chinese perspective, that is a huge outflow of money. there are elements to the semi conductor industry -- >> stay focused on china, president she just made the first visit to hong kong since taking office. >> here is editor, matt phillips. >> what we know about the -- what do weng know about the current standing between president xi and hong kong? hong kong toting

mark the 20th anniversary of the hand over to the chinese from the british. it stated that china would give hong kong its freedom and authority for 50 years, there is concern increasingly over the past couple of years that beijing is encroaching on those have been a lot of protests in hong kong recently particularly among young people who want democracy and to maintain free speech. they want to maintain all the auspices of the hong kong freedom to have had for the last decade. there are worried that beijing is encroaching on that. >> i remember that. i am just curious, 20 years later, those freedoms in place and the citizens of the people of hong kong enjoying that freedom, what would be president xi jinping's message? >> it will be twofold.

i think it will be be careful what you wish for in terms of protest. he wants to be positive with his message and say there is a lot to be gained in strengthening the economic ties between hong kong -- a huge financial hub and china. >> i think there was a stronger bargaining power that existed between hong kong and china at the onset of this relationship at a timeng kong was where its economic growth and economic strength was a much bigger boom into china's overall economy. has the growth in china eroded the negotiating power? >> i think that is right. in 1997, hong kong was almost 20% of china's overall gdp. they had a lot of room to stand on and negotiate from. now it is like 3%.

china has grown tremendously over the past 20 years. they have a lot more leverage. it will not necessarily stand for some of the anti-chinese rhetoric that we have been seen recently. we have seen some crackdowns where booksellers sell anti-communist paraphernalia. they wind up apologizing on the mainland a few weeks later. there are questions about whether or not hong kong has diminished in terms of its leverage. let's also remember that it remains under common law. has a free market capitalist economy which is tricky to fit into the one party policy in china, it has been a relationship that has been fraught for years. there are massive protests,

thousands of people want to the streets. they want direct elections, they did not get them, there was a big crackdown. seem next, why india can't to kick its cash habit. >> also, why low hanging satellites are changing on earth. >> this is bloomberg. ♪

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delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. bloomberg businessweek. please how satellites are transforming space. all that is still ahead on bloomberg businessweek. oliver: we are back with bloomberg businessweek editor-in-chief megan murphy.

india has been trying to find a way to win its people off of paper currency. >> this was the shock move by prime minister. he said it was a method to corruption. this is a country where 90% of consumer transactions were done with paper. the scramble to move both of these digital payments which are -- andys from atm's allows them to make this change when physical money is john from the system. >> there is a huge trust deficit when it comes to the digital world, there were to change it is cultural. they are afraid of pushback. >> i think we see this in india and other areas where -- when

people start with mobile payments or digital payments, it becomes intrinsic to the community and they accepted and it moves forward and it becomes impartial. when you are trying to overhaul and change a culture into doing something different, that is much harder, in everyday you see huge traction because people had never done these transactions before. it is a very different thing when you are trying to tell people to use their phone for all of this. the success rate will be geometric, they have so much invested in doing it. it is challenging, it is an unwieldy place and all of its chaos and craziness to begin with, that is the best part about it but corral enough around this is quite tricky. oliver: 90% of commerce is done -- cash -- transactions transactions. are they settled on this?

has the government decided that this is what they will work towards? i think it will find a way to get there. you see people who wanted to -- all of this, by the way, there is other countries that are not india, the u.k. has recently made a shift. this is not something totally new, it is doing it on the scale. i think it is surprising people. >> a majority don't have access to the internet. that is problematic to. megan: that is the one thing across all of the economies. it is not be broadband access, is the mobile access. even where people are still have two g, they don't smart phones, they are using the phones that people used a decade ago, it is adapting that tech knowledge he -- technology.

let's bring it back to global tech and talk about the very exciting story about space. ?hat did you guys analyze megan: this is truly majestic. is one that i am really passionate about because i grew up as a kid wanting to be a national. -- an astronaut. i was obsessed with the space race. what actually goes into is how the space race is and how important it has become to our everyday lives in cataloging, surveying, and picturing what is going on on earth every single day. it is not just google maps.

it is making this technology to -- accessible to a much broader spectrum of people. carol: satellites are everywhere. they are watching us right now. >> we have one story from this reporter. >> there is this interesting moment where the cost of satellite has come down a lot. it makes much better consumer electronics, we see all of these trends throughout the technology world, the size of the satellite has come down, you have these companies that are rushing to reinvent a lot of the communications that take place in space, the imaging that takes place in space and the signs that you can do that as well. there has been this bloom of satellite startups that we have seen. into -- has this tied into the private sector? for example, in the u.s., when we make the biggest strides in

space expiration, i think about space x and elon musk. that is still happening but not quite to the extent that the previous generation would expect. >> that is right. elon musk and space ask -- space x started in 2002. that was this proving point that a private individual can start a money. build his rockets and generated a lot of interest in space. capitaleeing venture flooding into private space companies. i think that in 2016, the amount of venture capital that went into space was double what we have seen in the last 15 years. that you can do this stuff, he made investors feel a little more comfortable. about throwing all

these satellite up into space. what is this lab doing? they were based here in san francisco, they were three guys that used to work at nasa. they saw that electronics were getting so much better and cheaper and that smartphones work typing so much horsepower into this tiny package that about seven or eight years ago, they decided to rethink the satellite and they thought what if we could take other the electronics in a smart phone and base an entire satellite up of this, if you can do that, after satellite would cost about a million dollars as opposed to $300 million for a typical imaging satellite. you can put up dozens, if not hundreds and surround the earth. planet has done that, they put up 160 tiny satellites and they are the first company in history, the first organization that can take a picture of every spot on the earth every day.

not even the nsa or cia can do this. they get this daily picture of the earth. they sell the two companies and give it away to nonprofits. >> we had this was coming and we have to dive into the how i'm sure this is a tough one to walk through but give us a breakdown of how this can when i thinke about the small satellites, these shoebox sized satellites, how you control that small item in the vastness of space? >> that is a tough thing. a typical imaging satellite is the size of a bus, it has this huge lens and you do get these very high resolution images problem -- the problem is that they are not looking at earth all the time. you have to task them with looking at a certain spot. planet took another approach

where they create a shell around the earth that is constantly imaging. the satellites are smaller. the revolution -- resolution is not as good. then they place them closer to the earth to improve the picture. it is really crazy software and algorithms that manage these fleets of satellites. each one is tasked with taking a picture of an area about the size of mexico and they bring all of this data down to the stations on earth and then the software assembles this image and you can search are just like you do google earth. you fill in the dots and ultimately you get a complete picture, it is pretty amazing. i are getting to a point, don't know if we are are ready in terms of mapping every section of the earth's surface? of february, i went

there for the most recent rocket launch. satellites.88 new they joined about 60 satellites that were already flying. it takes them a while to spread out. right now, as we are talking, they are able to get this daily image of every square inch of the earth. giovanni -- chobani re-thinks it's yogurt recipe. this is bloomberg. ♪

♪ welcome back to bloomberg businessweek, i am oliver renick. carol: i am carol massar. you can find us online at businessweek.com and on our mobile app. oliver: in the business section, this your company is known for

its yogurt. >> 10 years ago, americans did not eat greek yogurt. they come in and they basically -- built thismmigrants company and introduced americans to greek yogurt. they hit a billion dollars in their first year. it is a window into wife big food has problems. denon and you play at the same old, same old. and yoplait had the same old same old. they ran it is some trouble, they both a massive new plant in idaho. there trouble filling orders.

they thought they would have to get a new ceo. they have rebounded in a big way. now we get the news that they are going to be taking on dimensional yogurt which is interesting because they have their company around the idea that greek is better. their argument was that traditional yogurt is overly sweet. eat greek. and now they say we have our great problems -- greek products. now they're coming into the bigger market. oliver: you mentioned that chobani zoomed to the front of the pack. who are the competitors and what have they done differently? >> chobani is the top-selling brand in the u.s.. dan is still the top -- dannon is still the biggest selling brand overall.

yoplait controlled around 20% of the market. people are still buying a lot of yoplait. there have been a lot of other greek companies coming into the market. there is a lot of smaller brands are coming in. it is very competitive. >> has chobani said they are going to do something different in the conventional market? >> greek yogurt sales are down over 3%. a lot of that is yoplait. the sales have been a disaster. they have really struggled with yoplait. is argument is that chobani weighing it down.

isis right that yoplait weighing down the numbers. the other thing is that greek has slowed down. it has been around for 10 years. it is plateauing. is greekani sees yogurt plateauing. --chobani wants to take over. they want to pass yoplait and dannon. shortage ofa huge skilled laborers and america. fill guys are trying to manager-trainee jobs. they had factories where they built roof trusses and wall panels. there are that many people out with the skills to do the

job. >> what kind of jobs are they looking for? >> manager-trainee. this could be someone out of high school. they start out at about $40,000 and they can make a million. they have a bunch of people that make $200,000. these are store managers. i would say that most of them are making about 100,000. oliver: i wonder if you can place where 84 lumber and this project -- are they speaking to the larger problem which is trying to get employees for these more sophisticated jobs that are not the old school industrial roles? how does it fit into the overall effort for u.s. copies to bring

these employees in? >> it is this educational vocation that has gone out of fashion. in america we had a track system until the 80's. if you are not as academically inclined you can learn how to be a plumber or fix cars and you would be ready for a job out of high school. we don't really have that anymore. in a very limited way we have it. a lot of people are pushed toward for your college, most people have of those drop out. haven't prepared for the kind of jobs that these companies try to fill. >> up next, one iphone designer sees a future without screens. >>ks the digital activist -- the digital activist trying to

merge humans and machines. this is bloomberg. ♪

♪ welcome back to bloomberg businessweek. you can catch us on the radio at sirius xm channel 119 and on 30 in newa.m. 11 york. and 960 washington dc in the bay area.

>> on businessweek.com, here is the iphone prototype. tony fidel is one of the most important and hard-working designers today. he worked at apple and was a key then on on the ipod and the iphone, he built early prototypes, both devices and then he started nest which is this smart thermostat. really, nest pioneered the idea for smart home devices. he left last year and is taking a bit of a rest. he is working on something when he wants say what it is. >> basically, this is a guy that we should listen to when we

assess where technological trends are going. >> yes, that is why i wanted to talk to him. we had a nice conversation about the iphone celebrating its 10th anniversary right now. it came out june 29 of 2007. what the next iphone is going to look like, will it be a phone? no, he thingss that these connected devices are going to be the future of the way that we get information. he told me that in his house on sundays they don't use screens, his vision of the future -- no one will look at a screen in their house. you will be talking to alexa or what ever the alexa equivalent is. >> weight, iphones are not important? phonehink he is a big than -- fan of phones.

he said that the phone has become a game of inches were companies are trying to tweak on it, improve it, apple will have a big launch in september and maybe that new phone will have a screen that goes all the way to the edges and it will blow people's minds but his thought is that the most interesting innovation is happening in other areas of the system. is interesting, you walk in and talk to something. >> the internet is still at your voice.ips or your necessarily have to be looking at your screen all the time, you can be moving around, talking to people, being present. section, aursuit digital activist joined us. >> she is on a mission to be

president of algorithms. >> these are people that are changing the field that they are working in and this woman is running initiatives at m.i.t. media labs where she is identifying subtle bias in machines. something that you wouldn't necessarily think about where either computers that use facial recognition or using data like the code to decide whether or not you get a mortgage, stuff in it.at has bias she is trying to fix it. there are algorithms that these computers need. they are showing hundreds of thousands of pictures of faces and most of them will be white and then people of color will have trouble using these algorithms and these computers because they won't recognize their faces. >> hence the machine bias. she is doing this initiative to change that, she is trying to lobby different companies to use different algorithms so that

people of color are more included within this. it is an interesting initiative that she is doing. >> i like the name of the group which is the out rhythmic -- how the rhythm -- algorithmic justic e leage. ue. >> she has given a 10 talk on this particular subject. it is really popular. it is one of these things that when she got into the industry, she thought that nobody is talking about this. i need to take charge. >> it is so wild that we are starting to use facial analysis, racial recognition that it is important that we are diverse-inclusive. she said that zip codes are sometimes used in the outset of when people are getting approved mortgages or credit cards in

something that you would necessarily know. that plays into different racial biases of where people live and she is trying to fix that as well. >> bloomberg businessweek is available on newsstands now. a lot of good stuff, what is your favorite story? satellite companies are making smaller, less expensive satellite. -- satellites. it is creating a more transparent earth. who knows where it will take us? oliver: also, technology-related, i like the material science behind the facial skin. dos computer club -- das computer club.

more bloomberg television starts right now. ♪

♪ "bloombergp on best," the stories that shaped the world in business. the g-20 summit began and it final of uncertainty for the world's most powerful nation, while a missile launch in north korea throws another wrench into the years of diplomacy. >> they are without question going to try to continue to pressure china to put more economic pressure on north korea. >> a new trading link provides access to china's markets. investors wonder what to make of june's u.s. jobs report. >> the bad news is this doesn't do a whole lot for wages. >> the leader of the left in britain explains his stance on brexit. >>