>> to bloomberg businessweek, i'm oliver renick. at 66, $1 billion question surrounding industrial giant monsanto. ahead on it had -- bloomberg. ♪ >> we are here with the editor-in-chief of bloomberg businessweek, megan murphy.

he does look at oil and a discussion of peak oil center than we thought. >> we converted this part of peak oil. it was focused on peak oil supply and what this talks about is that while the man speaking a oil demandshan -- peaking a lot sooner. there has been pushed back on missions and cleaning up the environment. that has led to a quicker slowdown in the demand for oil. that is really pressing on the demand side of that equation. when you think about potential peak demand for oil, there is a lot of cataclysmic things that you can come up with. so many of the world's biggest powers rely on that as a source of their biggest income them --

as one of the biggest sources of income. they are trying to reinvent deal with whato is going to be the decline of oil which has always been predicted but does not this rapidly. obviously, this has the biggest ramifications for the middle east. in the u.s., we remember talking about oil and dependence for the u.s. where we had fracking, national -- natural gas. had dependency on foreign oil. this is a big economic development but it is a huge political development and how it reshapes this power structures between china and the middle east as well. we need moreng is

oil. some areas will never get drilled. we are looking at areas in the arctic. the cement and protected waters, that is changing, what will be interesting to see is how these companies diversify. to they move their companies deal with the rise of solar and exploit those as well. oliver: let's move to the cover story which is profiling somebody that everyone knows which is lloyd. >> this is a story that is close to my heart. if you look across the entire lloyd andank ceo's, jamie dimon are the only ones left standing. what is great about this story

is lloyd had been behind this. gone to the place where so many of us go to air our public opinions. twitter. he has been critiquing donald trump's decision to take us out of the paris accord. he is having a public role in that way. he is trying to reshape the bank. we see a tremendous shape up -- check up in trading -- shake up and training. trading. he has come back from a cancel scare -- cancer scare. lloyd 3.0.initely as lloyd'seeing this

third act. if you think about 2006 when he became ceo of goldman sachs until the crisis, that was the first act, that act was very successful for them, they avoided defeat of some of the chief rivals. incredible out profits for wall street. it has been the reputational damage, the congressional testimony that lloyd had to do. now we are calling the third act came backof after he from cancer 18 months ago, now he has reinvigorated. -- he is reinvigorated. oliver: does he see it that way as well? does he view it as a new beginning as well? >> he laughs at my construction

of the third act. he wonders what happened at the end of the third act. >> tragedy? comedy? where are we? >> certainly, he recognizes there is a challenge and a lot of people are questioning the business model that goldman is wedded to at this point. >> all of the big banks have come through a comeuppance and are rethinking their strategies. what is different about goldman? crisis, into the goldman was about investment banking and trading. they had a smaller asset management arm and a principal investing arm. other banks did too. but other banks have done is they changed that makes you substantially.

of their people. they took a hard look at the new environment and they said the trading that we used to know and love is not coming back and we need to right size our business. the difference is that lloyd has taking a look at these environment and said a lot of this is probably cyclical. if we waited out, we will be the big winners. as the morgan stanley's of the world pullback and reduce their commitment to certain markets, when those coming -- those markets come roaring back to life, goldman will be there. they will be rewarded for that. a bifurcated is approach. there are a lot of new things happening at goldman. consumer lending, asset management in that way.

on the other hand, there is in a against the grain sense, sticking with higher risk stuff. is that where he is? is he breaking from the pack in a sense? is he expanding in different areas? >> the approach that i took in this story is that he is staying more true to his business model than others. lloyd is a student of history. time, he reads a lot of books about history. i think that in the people that i talked to in reporting this story, a lot of them brought that up. he sees a lot of these things as cycles. asreas others may see them structural changes and it is his that theto history great depression took a decade to get over. in the depths of the oppression,

you may not have thought it would ever and but it did and things got better. if you could just look at the cycle from a long enough view or a long enough lens, you would realize things do come back. oliver: turning lloyd blankfein into the cover model was the work of this writer. shot, we got exactly what we needed with him at the goldman offices. we had some great options. oliver: he is a busy guy but in the end, the pictures look fantastic. they show a character that a lot of people don't often associate with lloyd blankfein. >> right, he had his very positive energy, we were smiling, laughing, it was great. oliver: he still has the beard. we are about to talk with john

micklethwait. >> the store is more largely about the eurozone and how they were doing well after brexit. you can see the flag but all of the stories are about holding kumbaya. some by a -- there is a degree of unison coming out of it at the end of the day. up next, the bureaucrats get a second win. how companies are using raids and electronic dancing to reach consumers and pakistan. this is bloomberg businessweek. ♪

♪ oliver: welcome back to bloomberg businessweek, i am oliver renick.

section, john micklethwait talks about how brexit and the menu macron -- emmanuel macron are leading to a new -- >> god knows, it is the best with the british. that was part one. the second thing that is very important is the arrival of emmanuel macron. that began that process. what if france reforms, what if this is -- >> he said that he wanted to do these reforms. >> that is the problem, brussels and now it-- dead seems strangely alive. the elements of life are partly

brexit. power also shows how much is left in it. the british are running into this, having pontificated. they have arrived to negotiate in brussels. encountered the obvious. the rules ofally the european are very simple, when you lead it, most of the advantages over the club that remains, not the one that is trying to quit. basically, in the end, it is far more essential for the british in the european single markets than the other way around. there is a limit the other way. what is happening is that brussels has been enjoying all the reasons why they got that wrong.

they have increased that pleasure, to be fair, they have some respect for the main negotiation today. want are the people that this to be a painless process. it is not. oliver: a second chance, a lot of things have to fall into place. >> you are right. --rything in a sense sense,ing, in a everything is happening. it, theing side of phoenician banks being tied up in it. all the things that american businesses from particular scorn brussels for.

everything in this narrative gradually,ually -- things start to happen again, there will be much more integration, maybe we can get integration in the euros. underneath the surface, nobody expects the european union to reemerge as this force for union. hopee are beginning to that what will happen is that they will be greater integration in the eurozone. a lot of premarket economists say that it definitely makes sense because it is very hard to have a currency union that has some kind of thinking union which they still haven't got. you'll get the risksharing that you get in the world of lawns. -- bonds.

those sort of things give hope to that. there is a deal to be done here. the rest of your all to germany, it is in germany's interest to support them. that would be the logical economic thing to do. that is all great. macron -- on the menu emmanuel macron succeeding. if you are german taxpayer, you may be forcing yourself into a position where you might trust macron and little bit. have debt.ou you have the possibility of the satellite coming in. there is very little evidence of italy's reform at all. why would you write a blank check to that?

that is the problem of what they are thinking about in hamburg right now. the fundamental reason is that europe has to think about how -- not it should be everything, the british said was wrong. oliver: up next, donald trump emails and what is next. this is bloomberg. ♪

♪ oliver: welcome back. you can catch us on sirius xm channel 119. a.m.13:30 a.m. 960 in the bay area.

in asia on the bloomberg radio plus atpp. >is are the legal ramifications of donald trump jr.'s meeting and emails between a russian lawyer. advertised to was donald trump jr. as one where he would encounter a kremlin connected lawyer who was ready to convey some kind of derogatory information about hillary clinton. that was coming from the russian government. all of this was part of a russian government effort to help donald trump. that is what we know so far. because we see that in these females. >> released by him because he he saw the new york times

threatening to publish a story that would have included all of the information. it's not like he was doing this with a real sense of transparency. oliver: what does donald trump jr. or donald trump senior have --do -- worried about this have to worry about this? >> there are several problems here. you have a question of credibility. denyingps have been that they had any contact with the russians in connection with the campaign. now that looks like a series of lies. as a political matter, you have the president potentially further weakened by this scandal continuing to gain momentum rather than being sidetracked and eventually resolved. i think it will be very difficult for the president to get anything accomplished in washington.

boiling it down to the actual potentiall, the liability that is created here is the potential to violate u.s. election law. it provides that foreign nationals are not allowed to make contributions or donations or provide a thing of value -- that is key language to u.s. politicians. to solicitillegal national,eign something of value. donald trump jr. was eager to receive or was soliciting information that was a thing of value, information that would hurt hillary clinton and help his father's candidacy.

that is not a conservative or safe. , it is a aggressive theory for a prosecutor. it rests on how far the definition of thing of value stretches. likes i think the word stretches is the right one. it does stretch the election law some. i think it is not something that is laughable. i think it is something that is serious and something that robert mueller, the special counsel and his staff of prosecutors will consider. trumps,ng focused on joshua green is out with a new book detailing how the president went from running in liberal circles to courting far right ideals and conservative principles in his run for the white house. we talked to editor matt phillips. josh green has had a front row seat to trump's evolution from reality tv start into presidential candidate, into president.

he is told that there a series of interviews over the last few years with steve bannon's political strategist. what this book does is go back to the root of the bannon-trump relationship. it reminds us that even though it was not that long ago, trump was multicultural and a pop icon 10 years ago. the apprentice was getting all kinds of great ratings and he is very popular among minority voters. he burnt that to the ground and embrace this birther movement and embraced this native populism that steve bannon has pushed him towards. >> take a step back. i watched the apprentice and it was a diverse group of contestants, young, old, black and white. celebrity, noncelebrity. talk to us about that.

i forgot that he did appeal to minorities. how popular was he because of the apprentice? the show was seen as this multicultural phenomenon that took everybody by surprise. nbcebuted in 2004, just as 's friends franchise was going away. it came out with a bang, corporate america loved it because of how well it drew audiences.e uses -- he was more popular among black people and hispanics than he was caucasian viewers. advertisers loved it because you could get a wide swath of the american landscape by advertising on it and they did a very good job of presenting a americaof minorities to that really appealed to a lot of

black people and hispanic people. as we sit here and look back at this, 13 years ago, it seems crazy, that was donald trump in the mid-arts. mid-oughts. this was something that the republican party craved desperately. he had the one thing the republican party had been going away from since george w. bush which was losing popularity among minorities, especially hispanics. he had the potential to bridge this gap that they had been looking for. story that josh green tells his have he sacrificed that to embrace this much more populist,

native narrative. oliver: a game changing court monsanto's most popular product. that is next on bloomberg businessweek. ♪

oliver: monsanto has a big day in court. one of the world's largest cybersecurity firms is connected to the kremlin. the pakistani are finding a new way to express themselves through partying. that, i had on bloomberg businessweek -- ahead on bloomberg businessweek. ♪ >> we are back with bloomberg

businessweek's editor in chief megan murphy. oliver: an interesting story that you guys have on the impact of infertility in china. are awareot of people of the one child policy and now couples are free to have more, what they're discovering is that some of the environmental factors in china, some of the extra activities that are common with chinese men, some of the environmental conditions have not made it ideal to start a family, there is a heavy emphasis on having your own children as opposed to adopting. a lot of couples are turning to fertility specialist. business here, a hughes medical base. in china, this is predicted to be a $1.5 billion business. you said that they are not getting this from chinese

companies, they are going all over. we have doctors in california, australia, this will be interesting to watch. see, china going to is already focused on building up its health care center and using property incentives to encourage the rise of a stronger domestic health care system, certainly, fertility, given the number of couples affected and the people want to expand their families. >> it is interesting because a lot of it is ironically tied to the chinese economic boom and lifestyle. when you push off marriage until later. than the average salary. for middle and upper income earners, that is very achievable. this is something that they have the same issues in america,

women are working more, men are working more. i think it will be very interesting for people to realize that it is not just what you traditionally thought your mind as a one child policy. it is the same factors that have led to declining birth rates. >> let's talk about another bright future story. megan: this is about monsanto and this decade-long issue over roundup, particularly a chemical and whether orte not that is a carcinogen. this has always been a long-running issue for monsanto. they do believe in that to their cancer. on the far more unexplored side of it, the relationship the company had with the epa, the

protection agency and the people who oversaw pesticides and how the government regulators's response for keeping pesticides may have not been fully in the dangers of this figure pesticides involved. >> this has to be weighted through a lot of stuff. >> this active ingredient is the most widely sold chemical in the world. there is merely a pound of it on every single acre of cultivated land locally. there is a large selling chemical that now, since 2000, when monsanto lost patent protection for, the chinese have inn manufacturing glyphosate prodigious quantities.

market in5% of the terms of volume and a much higher percentage, maybe around 40% of the market in terms of revenue. product,heir roundup this is for the herbicide that they sell. it is a very widely selling one and it demands a premium. monsanto developed the chemical and it is a linchpin of the genetically modified seeds sales that monsanto pioneered back in the 90's. if you don't know anything about monsanto or genetically modified organisms, you need to know that this is very simply that monsanto modified the dna, they reengineered the dna of content soybeans and other commodity crops so that they would be resistant.

this allows farmers to apply copious amounts of this we weedicide. they have enjoyed great cost benefits. great savings from the backbreaking tillage. this doesn't have to a core when you can -- occur when you can kill the weeds with chemicals. >> the relationship between monsanto and government regulators in the epa, when you point out that the opp does have the final say on pesticides, it relies on data from the pesticide manufacturers and making health decisions and that they get 30% of the operating budget from the industry.

that is awfully cozy to me. >> this is a problem that transcends monsanto. pesticideeven the manufacturer's fault. they did not believe that allocating funds for the epa to do its own research on these compounds was necessary. they could rely on the chemical manufacturers to do the research, higher the scientists, bring the data to the epa for analysis, they also said that is an expensive undertaking for the epa to analyze it. they're going to take fees to the epa to do that. that is right at this 30% budget being taken by the chemical producers, writing checks to the epa. >> you lay all this out and what is interesting is that you have lawsuits out there and farmers -- they have lymphoma.

how much this play out? -- how might this play out? >> there was a prominent cancer assessment agency. it is basically a u.n. agency and it is based in france, it acronym -- they found that there was an association between glyphosate exposure and non-hodgkin's lymphoma. and who lived near a farm applied pesticides for a living are suing monsanto. up next, an unprecedented war on airbnb.

that is ahead on bloomberg businessweek. ♪

♪ oliver: welcome back to bloomberg businessweek. you can see us online at is this week.com. businessweek.com. for several years, there has been a struggle between airbnb and its allies. housing groups have argued that airbnb represents unfair competition. it is taking housing stock away from new york is and turning them into de facto hotels. someb says is up against powerful entrenched interests.

as we report in businessweek, the hotel association is the main funders of this group called share better which is going to some new and previously unreported likes to try to eat footprint inb's new york. they are paying private investors to do undercover york. on airbnbs in new twoalk us through these couples that had to new york and had for the same airbnb listing. -- areport on private private investigator that checked into a room using an identity. these investigators have things like out-of-state ids, entire social media histories they created to keep their cover stories intact and have the host

except them. in this case, the investigator is brought in by the agent of the host, the host was reportedly in israel at the time. after this investigator claimant to be part of a couple that will weekend,for the several things contradict what is on the book. and the other member of the couple and who shows up but a different couple that has come over from britain that has to the same room. the one couple was checked in, the other one those that that room was the room that they were supposed to be in.

the host has a whole sheet to look through of what is happening in each of the units in that building. all of which help substantiate the case that is made by people paying for this thing, this is an example of commercial de facto hotels, not some hobby of someone trying to make a little extra money. oliver: also in the technology section, why one of the biggest cybersecurity companies is coming under fire for its connections with the kremlin. >> this is an antivirus software company. its founder's name is eugene kaspersky. has been dogged by allegations of ties to the russian government. i should note that they make in antivirus product that is objectively very high quality. it makes very highly on a lot of

independent tests. it has a lot of fans here in the u.s. and abroad. these questions about business ties to the russian government are really what is hanging this company up and is potentially a major threat to them here in the u.s.. >> what do we know about the ties to russia? there has been dialogue about this and bloomberg businessweek has added that conversation. >> i should start this by saying that if you operate a company, you have to comply with the local laws of that home ifernment, that means that the government asks you for data, you have to give it to them. this is the nature of business and legal requirements, what we discovered is that for many years, we found females from 2009.

as 2009, there developing software in secret which is the russian government's made intelligence service, that is nothing very unusual. cybersecurity companies do hundreds of millions of dollars of business. there is one key difference, u.s. companies don't go out of their way to deny that they work for the u.s. government. eugene chris christie -- eugene and the lab have ties deeper connected to the russian lab than kaspersky has ever acknowledged. apparently they go on by the lungs with russian police -- ridealongs with russian

police. it is for technical analysis. it is highly illegal. >> we are watching the story and thinking, why do i care about this company? are they doing business with the u.s. government? that is what is interesting. the lab claims to have 400 million customers around the world. that potentially half of that amount don't know that they are being protected by kaspersky software. hasproblem is this, eugene offered to get the source code to the u.s. government for review. no one has alleged that there is some kind of secret backdoor in

the actual code itself. the concern is that security software is updated all the time, daily, weekly, monthly. we had no evidence this has happened but they'll be no way to detect that. >> up next, turning a dance floor into an advertisement in pakistan. that is next on bloomberg businessweek. ♪

♪ oliver: welcome back to bloomberg businessweek. you can see us on sirius xm channel 119.

in the economic section, multinational companies like coke and pepsi are planning a curious way to tap into the massive under 30 population in pakistan through frames. >> -- raves. >> a lot of brands are using tohnology is a, house music advertise to people under 30. this is how they are trying to reach them. coca-cola is doing a lot of marketing around music area there are raves we found, cellular carriers are a big sponsor of these things. pepsico is in the game as well. oliver: how do big corporations go from their main products to

putting on event in places like this? what is the corporate strategy? >> if you're talking about a market in which gdp per capita is under $6,000 per year, you reach a stratum. a lot of the kids that are attending them studied in in the u.s. or the u.k. and that is where they picked up the taste for this music. twice it is brilliant for the brands. gdp is a big contributor to and pakistan. this is a percent of gdp and the global average is under 60. the economy is growing at over 5% per year.

this is a big market. at the same time you have security issues, -- through being off incognito. the event ond social media is before they take place. -- guests have been that it vetted by promoters. oliver: it is a very western type of thing. security a lot of concerns, there are terrorist incidents regularly. it doesn't strike you as a place that people will party and have a good time. what does it look like inside? i'm curious, i can't conjure up

a good image. one of our intrepid bloomberg people were there. the writer has attended several. we are using some of his photos from the events in the magazine story. they look like you would expect any london rave to look. some people dress up, there are strobe lights, all of that. >> and the pursuit section, -- year-old and thed to editor rosenbloom. -- m a rosenbloom. -- emma rosenbloom. they are actually making a big move, they are opening up a showroom in new york. that is unheard of.

nobody else has done it. they think that by opening up this space, they will be able to attract more customers and they won't have to go over to england to get their suits made. >> this is a company with a great pedigree and a great history. place it is inspired by equestrian shootings, there is something very specific about the cut of the jacket. if anyone sees a huntsman jacket, they know it is a huntsman jacket and they have the best cutters and taylor's. through a change of ownership in 2013. >> what is the customer base that they want to get from new york? where are they going to be drawing there client base from? >> these start at around $5,500 and go up from there.

this is specifically made for your party -- your body by the cutter. they are hoping to attract men who are ready go too high and brands. they go by off the rack at tom ford or gucci. it is that very high and customer they are trying to siphon off a few of. it is not the guy going into suit supply. those are shooting companies that target millennial men and start at a much lower price point. that is not who they are after, they are after the rich guys. >> you remind us about the people they make suits for. >> from winston churchill, all of this is basically every british celebrity. gregory peck, a lot of all-time in movie stars used to wear huntsman. we had a party go to huntsman. with zacharyzing

peck and his grandson and talking about how he and his friends are into huntsman. it is that kind of crowd. it has a really good pedigree. they also make suits for women. oliver: bloomberg businessweek is available on newsstands right now. 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. an email trail raises questions for the white house. janet yellen takes questions on capitol hill. date banks answer investor questions -- big banks answer investor questions with earnings reports. >> it is almost an embarrassment being an american citizen traveling around the world and listening to the stupid -- we have to deal with in this country. >> exclusive insight into monetary policy. >> at that low level you would have historically seen more inflation pressures. we are not. >> big names in finance tell us where they see markets moving. >> w