jonathan: welcome to "bloomberg businessweek." -- oliver: welcome to "bloomberg businessweek." i'm oliver renick and we are inside the magazine's headquarters in new york. this week we are focusing on the technological advancements that are much closer than you think. we're talking about virtual assistants and brain controlled exoskeletons that in a year might be as commonplace as your smart phone. that's all right here ahead on "bloomberg businessweek." ♪

withr: we are here megan-in-chief murphy to talk about the special theme, sooner than you think. megan: sooner than you think has been a core where think you may not even be thinking about now but are actually coming up much closer and much faster and you expect. a lot of times we talk about a.i. and tech, but we want to talk about the lesser-known trends. we talk about china and live streaming, how you go about with urban -- the challenges facing the urban centers, mapping where tech is really exhilarating. you are not here in as much about them. taking them to the next level into spaces where we know it is happening. it was did not think happening so fast. oliver: yeah, i have to be honest.

reading through the content this week i feel it goes possibly going back and forth between this is exciting and this is absolutely terrifying. megan: one of the covers will be look at a.i., i have a two and a half-year-old so i see a baby younger than that. an artificial baby mapping the human brain and learning emotion and responsibility that is developing is a little frightening. they should give us hope in terms of only look at the profound social-political disruption. it is the story of optimism and hope in truth that communities are banding together and galvanizing with the tech community and other traditional sectors of the economy to push new innovative solutions. that is why i think we really love staring at in the face. oliver: let's talk about one of the more positive thematic ones, the combination between technology and society. that is what is happening in china as young people and all kinds of people are streaming more and live streaming more. they are doing so in the face of opposition. megan: this is a phenomenon we see worldwide, but in china takes on a special dimension. the government controls the internet to such an extreme. what has sprouted up are these live streaming people who bring people into their bedrooms, bring people into their dorms, into their lives the film everyday communities and

everyday interactions. at a very base level you have gay men and women showing people what it's like to live the lifestyle, something you don't read or see much in china. you also have brands using this phenomenon. how can we get the more exclusive and more authentic experiences by focusing on a group of influential livestreamers and see we can gain share in china? it's a fascinating experience we are seeing play out. it is also big business. credit suisse estimates it will be worth $5 billion. compare that to other parts of the economy, it's a big chunk of is happening in the tech sector. oliver: yeah, i thought it was very fascinating because there

is obviously a big push toward streaming and blogs online. a lot of times i find myself being cynical about it. how many makeup tutorials can you have or prints can you do and put it online? in china, you guys detail for these people a lot of times they are offering escape. there are so many different parts of the community that are marginalized in china. megan: completely. and that is sort of an issue i think people have sort of not to get up. as they look to monetize this, they will try to figure it out. but there is a sense of community you cannot get it hinges on but authenticity. will the government tried to crack down on his further just because it is introducing more marginalized group that they do not really talk about into a wider audience. or as he gets broader and more diverse and saturated will some of the authenticity be stripped away? i think that is the most fascinating part of this. i think only of her time and over decades will we really

understand this sort of profound change that this phenomenon has introduced into society where you can feel just as connected to someone in a dorm room who is a lone person as you can to some of the new across the table. youer: a really great story mentioned is the sole machine. it is such a bizarre concept. at what a cool look interesting technology. specifically, what here struck you as being the most kind of interesting thing about this story? megan: how fast ai is happening in mapping human emotion and development. it is not just about getting someone to do the right thing or the wrong thing. it is also about grafting in natural responses, humanistic responses. that will be the key to a.i. and transformative as it moves forward. oliver: we have the details from our editor, jeff. jeff: reporter ashlee vance want to check out the lap of soul

machines, the brainchild of a former university of auckland researcher. for quite a time, a star in hollywood. he was the head of cgi developments for the characters in "avatar" and "king kong." oliver: a few of the big movies that really push forward cgi and health faces are shown in movies. jeff: that's right. he spent decades trying to figure out how to make virtual faces look as human as they possibly can and he has gotten a soleegrees closer with machine and has already pushed its way into artificial intelligence operative make the creatures behind these faces possible.umanly as oliver: all right, sole machine is kind of a scary title. is -- that it is basically his way of sort of communicating very much so that you can re-create the human experience and human emotion through systems of algorithms

and basically inputs that can affect how we react to things. what is his technology he is using? jeff: you're right, it is not the most intuitive way to sort of human eyes ai, which is a big part of this project here. but he has constructed virtual chatbots that look more human than most. that is sort of the near-term plan for the company, to sell them. they are already jeff: it is not contracted with jeff: it is not about 10 companies, including airlines and elsewhere to put these virtual chatbots on company websites to make their interactions with people in the customer service world feel a little better than just straight text. oliver: we always think about artificial intelligence and also the ways it is overlaid on sort of big data or artificial intelligence in terms of robots. it seems like we have expanded the reference point for artificial intelligence, what it actually refers to. for him it seems like he is concentrating on the human face

and how important that is in terms of communicating and making artificial intelligence seem real. jeff: absolutely. they focus a lot of their energy on kind of the micro- expressions, musculature, things that conventional avatars don't really manage to mail. they have really shot their way up and out of the uncanny valley to a place where you have seen the photos or videos attached. the ai baby he is teaching to think as much like a human as is physically possible at this point. as youmost as well wanted to. oliver: a disparate crazy. just the photos from the story. we are looking at a baby the look so real it looks like it could be your kid. the are very real, it has blushed cheeks. where is he sort of sourcing the data from. tell us about his first project here because it seems like the interactive baby is sort of the brainchild of him right now. geoff: absolutely.

baby x was sort of the and simple -- absolutely. the principalt of a.i. creation is based initially on photos from 18 months of his own daughter. from then he managed to get to the point where when a reporter took a look at his lab about a year ago, the baby was still a disembodied head or was already amazingly lifelike and could sort of follow your eye line and learn to recognize words and shapes and objects based on you holding a book up to the computer screen. it was already astonishingly emotionally reactive in terms of responding to you saying "good job, you got the word 'apple' didn'tor no, you

get this one." oliver: we have done traditionally with the past issues, we try to find one image. in this case we had three images would really like. we just ran with it. >> the first one is about artificial intelligence. this guy has light, in my view, a very creepy, very realistic digital baby he has been working on. we took a picture of him interacting with the baby on the screen. that we have this guy who looks like he sort of one's to be a pioneer of sort of deep-sea tourism. he is popping his head out of like this submarine. oliver: like was let your. oliver: like buzz light year.

>> right. and vertical farms. it is a woman in a big vertical farm facility, picking vegetables or whatever. oliver: kind of the soylent green vibe. i think this will not resonate the most clearly with people. from a accretive and photography perspective, it is hard to tell it is not even real. >> on the inside we have close-ups of the baby. you really have to do a double take to realize it is actually a computer. oliver: up next, booking your trip for the titanic. and growing whole foods produce at walmart prices. this is "bloomberg businessweek."

♪ oliver: welcome back to "bloomberg businessweek." i'm oliver rennick. you can also catch us online at

bloomberg.com. and the sooner than you think section, how to book a trip for the bottom of the ocean. we talked about josh's profile. josh: this is a seattle area entrepreneur who founded a company called ocean gate. he always wanted to be an astronaut, and realizes editions to go find the world and see crazy potential life forms just was not a reality. that is not what astronauts are doing. maybe is what will happen, but he started looking at the oceans and realized there is this vast unexplored universe on our planet that we know very little about. below scuba diving depth, we have submarines for military use. there are a few experimental submarines. jonathan: it seems like such a limited number of these devices that provide us with a wealth of knowledge. josh: there are literally four submarines i can go to the average depth of the ocean. exploration, there is not a lot of funding for it. i don't know why. space seems more compelling. hollywood has always per trade space as this romantic thing, and the ocean is this scary thing. it is a dangerous, formidable

place. crushing pressures and claustrophobia. a lot of things people just don't feel comfortable getting inside of and going underwater. jonathan: who is this guy? why is he the one to lead the exploration into the deep? why do we trust this guy? josh: he would say it's because no one else is. nobody was doing it. each of those subs are run by a government for national purposes. there are a few subs, one-off building engineers. jonathan: a lot of them are very old.

josh: you are starting to see a little bubbling up but he was like, i will have to build my own. there is a need for research and oil platform repair. he has a whole list of things he can tell you he will be able to do want to build his sub, but tourism is his sort of gateway drug. jonathan: looking at the business aspect, he came into some money. he grew up comfortably. he also worked. he was also driven by this and refurbished some old subs. the bottom line is he has some money to spend. he is able to put the capital and with some assistance, but largely he is finding it himself. from this he is saying i'm willing to do this because i see a market that just right now is not being serviced. that was amazing to me. why does he feel like there is such a demand for people to go deep underwater and pay to do it? josh: the original idea was over the need for scientific institutions and oil companies

and he thought that oil companies would be dying for a summary that would help them prepare a platform. they were sort of like, who are you and why would he give you money? he was like, ok, i will build it anyway. then he realized there had been a company that leased two russian submersibles into people to the titanic. in the early 21st century. and he thought, nobody wins to go to titanic but it turns out a lot of people want to go to titanic. so he started putting the word out. how about if i effort towards of the titanic in my new sub? and he sold the thing out before announced. was even he says the guy who ran because back in 2004 or 2005, don't know what it was, told me the problem demand, it was supply. the russians had these subs they

leased out then they took them away and there was no way to get there. they could have sold thousands of seats. oliver: a vertical farming company, plenty, just got the biggest tech investment in history. i talked to selina wang. selena: this is a massive indoor farm. the difference between the traditional idea vertical farming, these horizontal shelves stacked on top of each other, is that with plenty, the plants grow out of vertical poles stacked next to each other. it looks like there are these enormous, 20 foot tall walls of plants stretching as far as the eye can see. the plan is to build these gigantic indoor farms outside of every major metropolitan city around the world. this ceo and his chief science officer, the way they designed the system is a growth to 350 times more yields than a traditional outdoor field, and use 1% of the water. jonathan: we have basically got giant indoor farms, not to be -- well, ok. so, we have basically got giant

indoor farms, not to be called labs. let's talk about where plenty exists now. where did you go to visit their farming unit and what exactly did you see? selena: i went to their first farming site in south san francisco. it was quite a process to get into the unit. i had to go into the cleaning room, put on a full white onesie suit. i had the gloves on, put my feet in sterile water. the reason get to take such for caution about the way you protect yourself before going into these farms is that each of these gigantic rooms is a perfectly controlled environment. everything in there is made for that plant. so it is at the utmost deke conditions. that means the temperature, the oxygen level, the type of light being sent to the plant. everything is timed perfectly. the plan is to take each of these growing rooms and be able to build them in less than 30 days around the world. they are targeting every city with more than one million people, and there are 500 cities

that they can run the world. -- of that size around the world. oliver: big aspirations here. let's talk about who is in charge. to describe where you went, i was vacillating between seeing the farms and the labs. it is a little hard to wrap your head around if you have not seen a. the chief executive officer when should you call it something specific. tell us why. selena: definitely. the chief science officer and ceo have a history rooted in traditional farming. matt barnard grew up on a farm in wisconsin. this is really about completely radically changing the way we eat our food and where it is grown and how we consume it. he was this to be as normal as a public utility, the idea that food is grown indoors. it is pesticide-free, much more environmentally friendly. he wants to make sure consumers see this as something normal and that governments are also supportive of this new way of farming. by calling it a lab or a warehouse, he is worried consumers will be really turned off by the idea of eating food that comes from this indoor room where there is no soil or

sunlight. that is the main concern. jonathan: colombians yank out the welcome mat, at least for some oil producers. this is "bloomberg businessweek." ♪

♪ oliver: welcome back to "bloomberg businessweek." i'm oliver renick. you can also catch us on the

radio at sirius xm channel 119, a.m. 1330 in boston, 99.1 fm in washington, d.c. and in london on nux 3, and in asia on the bloomberg radio plus app. small towns in colombia are exercising their right to block oil and mining products, endangering the country's status as a major petroleum exporter. christine: in this town in july, the community held a referendum to decide whether a toronto listed company would be able to come in and drill exploratory wells to a lot they had acquired. they voted massively against the project. the company is now stuck. there is nothing they can do. oliver: by massively, 6000 to 76. no. spentina: eight reporter eight time in town trying to for a doubt the no votes. oliver: what exactly are the details? relationship between

a toronto-based driller and an obviously south american, very different sort of population, how did this population come to -- how did this partnership come to be? christina: this country has all its assets in latin america. it is listed in toronto. the ceo is a fluent spanish speaker and operated in the region for a long time. columbia has traditionally been very friendly towards foreign investors. that has been a shock. you know. oliver: i guess what i'm trying to figure out is the relationship sort of between locals and the corporation. that is what is really at the heart of the story. christina: nobody ever thought they had to go into a community and lobby the local people about their projects. i mean, the idea was that, you know, you bought a parcel, you are allowed to like explorer on it and you were just going to carry on. but all of a sudden -- and the only exception to that has been

in a indigenous territory where the constitution specifies there is a mechanism for local people to be able to reject projects. in colombia, the mining code did not allow for any before. but then the constitutional court ruled recently that that provision was unconstitutional. that the mining code contradicted the constitution -- the constitution was oliver: that opened the door to this pushback. christina: it started with local projects. there is a south african company that poured over $350 million into a mine they are trying to develop. in western columbia. and, in march there was a vote and they also next the project. oliver: why the pushback from the locals? because they have constitutional

authority and sort of clearance to be able to do this now that there is sort of a shift in the actual legality of the scenario? or is it, we don't want this in our backyard. we did not expect this in a particular town. christina: there is a bit of nimby. right? but then there was a change in the way royalties are apportioned from projects. right? so they tweaked the formula so local towns are getting less money. the reason is because during the commodity boom there was a lot of money flowing to local coffers. the government felt it was squandered and it was stolen. they said we will spread more evenly across the whole country. more will come to the national government and we will give it back out. people said we are getting less, so what is the incentive for us to vote yes on these projects? a farming community, there was a lot of concern about what was going to happen to the water. oliver: how to move an entire town all in the name of business. and how north korea would use

its nukes? this is "bloomberg businessweek." ♪ oliver: welcome back.

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across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. ♪ oliver: welcome back to "bloomberg businessweek ♪ i'm a oliver renick. still ahead in our sooner than you think section, what to do when your entire town is sinking into an iron ore mine? brain controlled computers, and north korea's dangerous insurance policy against regime change. all that ahead on "bloomberg businessweek." ♪

♪ oliver: we're back with "bloomberg businessweek" editor-in-chief megan murphy to talk about more must-read stories. let's go with the remarks section and talk about a big issue everybody has been thinking about more than they want, north korea and the threat the regime poses. megan: we have seen a dramatic escalation of them continuing to do missile tests and also a frustration at the lack of any coordinated foreign policy response, coordinated diplomatic response, and talk of a military response. which is somewhere no one wants to see. this piece is focused on resetting this and making people realized heart of this, at a huge part of what is driving this aggression in terms of increasing their military nuclear program and ballistic missiles, is the desire to save the regime which no one expected to still be standing.

kim jong-un is frequently depicted as a madman and not knowing what he is doing. what if the reverse is true? the steps he is taking response to acceleration of the country's nuclear program is what he thinks are best to save himself and his regime and the ruling elite in north korea. we have to remember this is a country devastatingly poor outside the elite. gdp has increased as much as 4% this year, the median income is still below $6,000 per citizen that is facing extreme poverty. there is continued economic sanctions, which is in the primary diplomatic response. they only have so much they can go because so much is already reigned in. they will no longer be able to defend under allies russia and china. this is moving against them. if a look at it through that lens of how protected they are and see this program has potentially the only thing that can really protect them. how much other options or really limited when dealing with that kind of situation. oliver: essentially an insurance

policy is a view it. only onehand in the they have. there is no other military, economic, or political response they see that will as effective to keeping their standing in the world. oliver: there are certainly going to be whites was of people who sort of recoil at essentially trusting the survival instinct of somebody who has been very ruthless. somebody who has killed people in his own family. how do you think this sort of approach can sort of us wage some of the concerns or get people to start thinking about this in a more constructive way? can you think of kim jong-un as -- person?part megan: is a hugely important point that so much of this discussion, and particularly how the trump administration has thought to characterize him as someone who is not capable of rational behavior and operating as a lone wolf in a region that is very unstable. however, if we tried to imply a

method to the madness, perhaps that will allow us to shift from focusing so much on economic sanctions which are extreme and have not been able to clamp down on their ambitions, on a military response in particular which is something no one was dizzy and talk about again what michael discusses, which is really acknowledging and accepting them as a nuclear power or an inspiring nuclear power. this summer has been catastrophic for our civility in that region. threat if youest talk to anyone in washington. existing thinking is not making any progress. this is potentially a way forward if we begin to view the problem in a different way. oliver: let's go back to the sooner than you think thematic. there is an interesting story in sweden. it is about moving a town basically. megan: this has been talked about before. this is a town that has the

largest deposits of eleanor. it reduces a special kind of magnet takes you -- magnet that production. over time as they dig deeper and minds to excavate this they have basically made huge parts of town unstable. is theis town, this mine town. a present of the people worked there in they are used to being displaced. oliver: they'll work there or atir family members worked one time. megan: this is talking about the development that has gone on this. bymove the town section section as well as businesses to new places that will still be stable in a part of sweden. the man who has been the biggest protester is a champion dogs letter who sells dogsled material. it is not a business you think market.e but it is a really fascinating way of how urban planners have thought about what it takes to

move an entire town in sweden that is totally dependent on this mine still. inver: swedes are definitely sports. such a good story. >> the town is the northernmost city in sweden. sort of the gateway to the swedish wild north. i mean, this is mostly unpopulated country. 18,000 thatwn of exists because of the world's largest underground iran or mine. that might is causing the town --sink so if the town wants has to move. there's no town without the mine. oliver: the town is there because the hour and or has broadened sort of the small economy for this town and then now because the miners are pushing further to get to that resource, it is actually changing the' of the land and now they are having to move. >> exactly. the mine opened in 1890.

it was a mining camp to grow into a down. the mind is of vast and lucrative. -- if they a very want to stay, they have to move. the need for iron ore increases, they exhaust a level and go deeper and then undercuts another section of town. they have now reached a point where they are going to have to move the entire center of town including 5000 people and businesses. >> is a government-sponsored? is a private? who has the power to move immunities. i would assume they are probably involved from the government at a federal level. >> it is a state owned mine lkeb. the company operates on its own. it is quite a profitable entity. they are responsible by swedish

law for taking care -- if a community is affected in an adverse way, if they want to continue mining they have to address the problem. so in this case because they are degrading the land, they call it the deformation zone. that's him keeps growing. every time it grows, anyone who is there they have to pay for the move for relocation. they are just embarking on a huge and complicated move that will require -- no one really knows. and 10-15 years. certainly by 2035 after be done because they think that part of town will sink. oliver: what exactly was he get between expectation and reality in terms of the effects of the actual mining process benchmark i mean, i would think if you know this thing is there that maybe they would build around it. well, wea matter of need to did different than we thought. where is the change that came about? >> it is the world's largest body of iron ore at least that

we know of and it is a solid peace. they describe it like a visa host and it is at an angle running under the town. it started as an open pit, they went a little deeper. they went underground. i think no one anticipated they would be mining this on. at some point the mining will become a profitable and at that point. mining that they have not reached that stage it. everyone knew that some people would have to move and already some people of move because the lake has been dammed or the lake would be gone. no one realized i think how long they would continue mining, how deep do ago but now that they're profitable and i are at a deep death already there thinking, maybe we can go further and to do that with the move everybody and just deal with the problem with grated. this is supply and demand. if people what does or, right, they are going to minute. oliver: up next, why elon musk more than one gig

of factory". this is "bloomberg businessweek "bloomberg is this week." tokyo

♪ oliver: welcome back to "bloomberg businessweek." i'm oliver rennick. "bloomberg busineweek" is available online at businessweek.com. the business that keeps elon musk up at night may seem far off, but it's already here.

>> in some ways it is closer that we think. it's actually now possible when people are connected via their brains to a computer. people are moving cursors around on a screen. even able to sense objects in the outside world through wires connected to their brain. that is more possible than maybe many of us would have imagined. the really hard stuff like doing a robocop, or you just plug a brain into a matrix and they can sense and act upon the world fluidly, that is still a long way off. oliver: we are talking about specific technology you profile, braingate. it has been around for sometime time, it has made a lot of project will stop tallest is exactly what this project does

-- it has been around for quite some time. it has made a lot of progress. tell us what this project does. >> this is really a wide reaching consortium of researchers at a number of different universities who are working together to probe the question of how can we connect the human brain to the outside world? both to sense the outside world and act upon the outside world. and also to reconnect connections that have been may be severed. if someone is quadriplegic. i talk about a fellow who had fallen, broken his neck and was paralyzed and it was assumed that was it. because that is what doctors have been saying for generations now that we cannot cure this kind of paralysis. but now thanks to some research that has been done at stanford, if you are mansions, for instance moving his hand, he cannot actually moved his hand but the part of his motor cortex generatingdo that is these signals that can be picked up and transmitted and interpreted by m peters & now

acres or can move on the screen and he can potentially type out words. veryr: all right, so it is complex science. i will not make you dive into it but give is the overview. this is basically a chip that is sort of implanted into the human brain and connected. some pretty word stuff going on. >> and puts bullet is very simple. you're just plugging something into -- you know, the brain is essentially a very complicated electrical circuit in a sense. and principle it is very simple but to actually get it to work, it turns out to be really, really hard. oliver: it is great technology. it is interesting to me personally. my brother worked at brown. was a student in 2008. they were basically still in the very early stages of this. what has been need drive for the progress that is bed made? is a big demand from sort of a market respective? has there been funding from a federal level?

what is an enabling them to bring this technology forward so quickly? >> it is technology that in his senses very easy to grasp. anybody on the street can understand, connecting rains to computers. telepathy. artificial communication and rubber cup and all these things are very easy to understand but at the same time it is very point.esearch at this some animal subjects. this is not something you are going to be able to walk into your drugstore anytime soon and say, give me one of those brain interfaces, went to plug into it. at the day probably will come where the technology well, you know, the way that all kind of information technologies progressing these days, who knows how quickly things will develop? we're going to need a lot more lithium and we are going to need it fast. we talk about the need for

battery production. >> we were interested in what goes on inside and electric car. a lithium battery is a key component. interestingly, the lithium-ion battery is only made up of 15% lithium. [laughter] so, there have been a lot of questions about whether there is enough lithium on the planet for the boom in electric cars. by 2040, one third of the vehicles on the road will come with a plug. is there going to be enough lithium in the world? two years ago there was a huge spike in the price of lithium because traders were worried there was not enough. actually analysts found even if we meet the ambitious forecasts for those vehicles, they will meet less than 1% of the lithium reserve around the world. oliver: that that's the question right off the bat, how do you go from thinking there is a shorting to thinking you'll have only mined 1/100th of it? jess: you will think it is made up mostly of lithium. it's really a small amount,

something like 15% or less. elon musk called it the salt and -- the salt on the sald. it is crucial to making a battery work, but you don't need that much of it. you need nickel, cobalt, manganese. these will not run out either. oliver: we talk about lithium and some of the viewers might have seen some bloomberg programming which we have gone to some of these lithium plants in latin america and south america. there are big, big fields of aren't we also going to be mining this? how difficult is it to get to that 1%? jess: it is mined all over the world. you can find it here in southern england, or on the atacama plains.

when you look at something like a bolt, it is a bit more rare. if you will have one country mining it, it could easy get squeezed. but there is still the question about whether we are going to be able to get it on the ground. so, what we need to do and this is where the bottleneck could come, the forecasters at bloomberg new energy finance think we're going to need about 35 factories producing batteries the same size as elon musk's factory in nevada by 2030. so, the miners are buying up the land but we need to get a out of the ground, get factories, get it made into better he that is where some of the bottleneck could come. oliver: up next, why more people are going to medical school but choosing not to practice medicine. plus, white diamonds are not man's best friend. this is "bloomberg businessweek."

♪

♪ oliver: welcome back to "bloomberg businessweek." i'm oliver rennick. you can catch us on the radio at sirius xm 119, a.m. 1330 in , a.m. 1330 in boston, 99.1 fm in washington dc and in radio plus bloomberg app. in the economic section, growing number of people are going into business after medical school will stop we got the scoop. >> the physicians foundation and doctors organization did a annual survey. that 13.5% of medical school graduates are considering nonclinical work. they are seeking it. more and more ceos i

interviewed, have just gotten out of medical school and they are starting companies. drug companies, medical device companies, consulting, running hedge funds, things like that. oliver: i feel like they're somebody potential explanations for this. i am thinking about the complexities of insurance. especially when health insurance is constantly and battled between political sites. there seems to be a very booming aisle tech. private equity. is it coming from a demand-side? from a supply side? what exactly is behind the trend? >> it is a good question. there's so many things behind this trend. a number of doctors are frustrated by the amount of paperwork. they are seeing other doctors having to do lots of paperwork. they look at ahead at a career that is not paying as well as it used to. they are having to deal with third-party payers and health insurance uncertainty right now. a lot of them are designed to

use other skills. l into business or go into law or other fields. the business folks i talked to are the ones i focus on. they felt they could in many ways to cure more illness by going into medical device or biotech fields and developing drugs that would be able to treat a number of patients rather than just sing one patient at a time each day and feeling the stress of being a day-to-day doctor. world's dominant diamond finance ea is a cautionary tale for any bank. >> the diamond mining side of the industry is dominated by two companies. diamonds the rough they produce into what is called the midstream. this is dominated by family-run companies. namely ndn and jewish sort of back was. based in antwerp, tel aviv, and also in new york. polish, and cut,

trade those rough diamonds before selling them to retailers like signet and tiffany. they are often quite large businesses, but family-run. incredibly capital-intensive. and because they are family-run, you don't have the transparency that you see in many other sectors. they have lots of interdependent bodies. margins are quite thin. volume is what you send going. every step of the way they are utterly dependent on bank financing. oliver: the capital intensive middlemen that need these loans at the onset to get their operations running, those loans i imagine probably have a little more -- a little less clarity to them in terms of who you are dealing with. is that what came home to roost here for the bank? tom: the difficulty is what you exactly are lending against.

you know, if you loan money to a cement company or steal plant and he goes belly up, there is a clear asset you can then go and reclaim things go wrong. with the diamond industry that is not the case. the collateral is the diamonds themselves or receivables, ious for diamonds it up and not paid for yet. try to claim those back is very, very difficult. diamonds, maybe there is no other commodity in the world where so much money can be transferred in your pocket so quickly. and so it is automatically a risky thing to lend against. of the very nature business, the diamonds are constantly being moved. a parcel of diamonds in antwerp and they can move to dubai and then they can go to mumbai hand then new york and tel aviv. it is incredibly hard to follow the signal path they take. oliver: how big is standard chartered into diamond-related lending? tom: maybe $5 billion at its peak level. for a bank of their size it was never going to break the bank, but it was a significant amount

of money. oliver: some of the default start to happen. how much default was there? how bad did this problem get for the bank? what are they doing now? tom: so far they provisioned about $400 million for losses and loans they don't ask that to reclaim. they still have $1.7 million in this industry. they said they want to leave. they want to either sell or that money but it is difficult to do. a lot of these businesses are very, very stretch. they have not made much money for the last six or seven years. a lot of companies are not in a position to repay these on some less replacement financing comes in. there's not a huge amount of people lining up and wanting to come in and replace those lines. they have this question of how much, how, and when they are going to get this 1.7 wayne -- billion dollars back.

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♪ emily: i am emily chang, and this is the "best of bloomberg technology," where we bring all our top interviews from the week in tech. coming up, it has been a year since dell completed its tie up. we will talk to michael dell about the partnership and the bigger m&a landscape. the divide deepens between the president and tech. as a growing number of ceo's speak out on daca. more than 400 business leaders signed a letter on behalf of 800,000 people whose american drms