>> carol: welcome to bloomberg businessweek. i'm carol massar. julia: i'm julia chatterley and we are in new york. gets rampednology up. that maylaws at intel chip away at the company. julia: that is ahead on bloomberg businessweek. ♪ carol: we are here with the assistant managing editor at

bloomberg businessweek jim ellis. i want to start at the business, because there is a fascinating story. we had the auto show underway in detroit. when we think of self driving, we think of the auto manufacturers, but you also have to think about the paint manufacturers. we think this technology is all about sensors and high-tech things and now some of the most ,ld-school companies around paint manufacturers are key to the new technology. it turns out that for all the sensors we are equipping newfangled cars with, autonomous vehicles need to be able to bounce off another oncoming vehicle or vehicles around and they judge the distance between them, they do -- crucial to make this work. problem is, there is a blind spot these cars -- these sensors can'tnd that his people read very well cars that are

black or dark colored. carol: and there are a lot out there. james: that is it, the bouncing needed to determine distance between things doesn't happen with black. paint manufacturers are coming up with new ways to how to make things about back. they have taken inspiration from an unusual place. julia: eggplants. james: the eggplant, which is dark but grows in the sun and stays cool when it is picked. an engineer at ppg figured out that is because the near ultraviolet rays go through the dark skin and bounce off of the white underside and come back. what they discovered is you can do paint that goes through the dark outside, goes to a white undercoat and bounces back to the sensor and therefore, it can be used for autonomous vehicles. julia: i wonder what the

challenge would be if you have autonomous technology, electric vehicles, does that mean less vehicles on the road, the amount of paint is higher. you have autonomous and more shared vehicles, there are fewer cars and if i make paint, i will lose business. this is great because of need lots of, they paint in coatings. all of the batteries and there are lots of batteries. all of them have to be wrapped in paint and coating. carol: what is fun about this is already paint high-tech. it controls temperature and so much. i didn't know that. james: we have so many smart features built into the new cars now. cars that can park themselves, cars that have the distance determination within the car, all those things require sensors and a lot of those sensors work better if they can either have

special paints that are round -- around the electronics or around the bumpers to allow the waves to go in and out. julia: ppg is working on barcodes to allow cars to identify -- i want to move over and talks. cover story about who would love to paint over the cracks. travis kalanick. james: it is quite a story. we have got a look at the year-long fall of bloomberg's ceogoing from the -- uber's to the one who couldn't do any wrong, to the company everyone hated. it is an interesting tale because it is a tale of hubris, overreach, stubbornness and it says so much about silicon valley and so much about american business. carol: and it is a great thing travis kalanick crawling

on all fours. i won't give it away. this is an update to that story, we talk to brad. was: one year ago, uber flying high. it was valued at almost $70 billion. unimaginable success story that transformed transportation around the world, but that was the public perception. there was a little bit of early worry that this company had gone too hard too fast for too long. did, they things they took the first step toward hiring a professional manager, jeff jones, who came in as the president. he was a former target marketing guy. he only lasted a couple of months at uber, but he decided to do some marketing surveys to see what the perception of the company was. carol: uber had never done this. brad: of course not, that was

way too conventional. julia: some voiced some concerns. others had no concerns. brad: travis kalanick, the cofounder and ceo felt pretty aggressiveis approach, but jeff conducted some polling research and they found that the more people knew about uber, about how it was run and who was running it, the less favorable a perception they had. where eric and i start our story in business week this week is all about the talkingwhere they were about this. the question is, did uber have a pr problem or did it have a how the company was run problem? julia: a culture problem. brad: exactly, and he for this happened they were debating that. , erically, bloomberg news posted a video of the dashcam footage of travis kalanick over super bowl weekend berating a driver. talk about timing.

so he looks at the video and goes back to this meeting and starts crawling around on all fours. brad: this is when he saw the video. he is on his knees and is saying, i'm terrible, i'm horrible. because that meeting had big ramifications and report on this in our story, the unraveling of uber. travis went and entered into a thencial arrangement with driver that really alienated some of his colleagues at uber. another thing that happened is he didn't really address the core problem. he continued to think it was a pr problem. julia: even at that point, he was like, we need new pr strategies? want you to explain more about that financial arrangement with this driver, because you point out this was meant to be a conversation. he was going to go apologize and it seemed to get heated again and he said he would write a check to the guy. he ever -- other member of uber

that was there was like, hold on a second. what is going on here? and athat is one element previously unreported element of the saga, travis went to the driver. to spend a couple of minutes in the room with him, apologize and leave and said he debated him for an hour and agreed to give him uber stock. up making a private payment when his lawyers objected. ceo he had got removed as but was still actively involved in the company, there was some sense the media would report on this and from afar, when he asked uber's global head of security to see if he could look at the emails of people who might be leaking this story, and now we are six or seven months later, a precipitating event to the entirert

14-member executive leadership team writing a member to the , but asking board members travis in particular, to step out of the day today. carol: turning the trouble into a cover image was the job of a design director. chris: there are no photos of him doing any of these things, so we hired this illustrator to do kind of a couple different scenes. this is definitely the most visually impactful one of him on his knees after he has watched this video arguing with the supervisor. -- uber driver. carol: it feels like such a different cover for you guys. there was a lot of white space. chris: we wanted it to be arresting and we used the typography to zero in on him. carol: interesting that you say that, because is it the company's problems and ultimately, it turned out to be the ceo who was the problem.

chris: exactly, he is falling and falling. carol: kentucky's experiment with medicaid next. plus, gerrymandering gets its day in court. this is "bloomberg businessweek." ♪

♪ carol: welcome back to bloomberg businessweek. i'm carol massar. julia: i'm julia chatterley and you can find us on bloombergbusinessweek.com. summer will begin requiring medicare recipients to show they are working. julia: we spoke to matthew philips about how the plan may unfold and what might be the outcome. matt: this is something conservatives have long wanted to do in their idea to shrink eligibility for medicaid and make it harder to qualify for a lot of the social safety net that exists for the poor and low

income americans. trump gave president states the ability to experiment with medicaid however they want. they have to apply for waivers, but that will require -- mean adding work requirements to that. the next day, they approved a kentucky request to do just that, which had been pending since 2016, so starting this coming summer in july, kentucky will be the union to require medicaid recipients to prove that they are working and if not, that they are disabled or pregnant or volunteering or in school. julia: very briefly, who does this actually apply to then and who would be excluded? medicaid ise, so the 53-year-old federal and state program that is aimed at

foriding insurance low-income americans. right now, 72 million americans are enrolled in medicaid. that spending is just shy of $700 billion and accounts for about 20% of total health care spending in the united states. it is a massive social safety and right now, your income threshold, depending on where you are in the country, is about 138% of the poverty line, which amounts to about $16,000. under thexpanded affordable care act under president obama and about 30 states, including kentucky, chose to expand medicaid. those numbers went up starting about 2014. what we are seeing now is, on top of the gop effort in congress to undercut and repeal obamacare, chip away at it, now the battle has moved to the

state level. kentucky is the first state to do this. there are nine other states that have similar waivers pending in front of the federal government that will probably be approved sometime in the next few months. for the next few years, we will see this social experiment conservatives have been wanting to do to raise the eligibility for medicaid to save money and get people back to work. julia: two redistricting cases are raising the odds at the supreme court may define some voting maps violate the constitution. we got more from peter coy. peter: gerrymandering is when you either pack all the voters from the other party into a certain district where they will be harmless, because you put them all in one place, or you will try to spread them out very thinly, but always in the minority so they can't win. basically, it is a way of making

sure your party gets more seats than the other one disproportionate to the actual support for the party in the state. julia: where were these cases and what will be heard this year? peter: they have already heard one case involving wisconsin and it was republicans that did it and the democrats objected. the case in the spring's maryland, the opposite. one single congressional district, a democrat districts where the republicans are complaining. julia: when these districts are redrawn, what is the excuse given if not for political reasons? carol: and it is done every 10 years, isn't it? the state level, for congressional redistricting, it is related to the census. to reason you draw lines is make sure you have the same number of people in each district. one person, one vote role. -- rule. you have to do that anyway. it comes down to where do you draw the line?

there are many ways to get the same number of people in the district, and you can see some i believe it was massachusetts where the word gerrymandering came from. it was the shape of a dragon. with modern software, they are getting more creative in finding ways to pack and crack. to get maximum advantage. carol: who is in charge of drawing the lines? and ageike in this day with computers and algorithms, you could let a computer decide. julia: meeting all the requirements. it.r: state legislatures do here is the case. john roberts, supreme court chief justice, is very strong on the idea that he does not want the court to be politicized. or even to be perceived as political. he wants to keep his hands clean

because the credibility of the supreme court is very important and has to be preserved. julia: bipartisan. peter: yeah, and he is afraid if they allow the redistricting, allowing that one, inevitably people will say they are being partisan. up next, political instability is leading some bankers to seek friends in unusual places. carol: and silicon valley sees a brain drain to china. julia: this is "bloomberg businessweek." ♪

♪ welcome back to bloomberg businessweek. julia: i'm julia chatterley. carol: i'm carol massar.

julia: in the economic section, the u k's opposition party, the labour party, has been socked out by fund managers, ceos and bankers over the past six months. the prospect of labor winning power is starting to overshadow brexit as the biggest wildcard for investors. julia: here is christina with more. mcdonnell is not your typical politician. he has been a veteran of labor and is a man who has waived the red book in debate in parliament and lists one of his interests as fermenting the overthrow of capitalism. >> that will sit well with everybody. talk about that, because

business people, investors are more concerned about labor winning in the next election than they are about brexit. cristina: the parties performance in the snap election was a wake-up call to britain. carol: 40% of the vote. cristina: that's right, a high water mark that goes up to the 2000's. is theythe expectation have a good shot of winning the next election, whenever that happens. one is not scheduled for years, but government is very troubled -- may's government is very troubled so it could come sooner. feel is a moment, let's each other out, where we stand. it is an opportunity perhaps for business to go in and say these are parts of your agenda that make us really uncomfortable. is there any room for flexibility in these areas? but i think one of the big issues is that the party stands

-- stance on brexit has been more flexible than may's conservatives. i think businesses and the banking sector are attracted to that since they overwhelmingly opposed brexit. julia: traditionally, the labour party would have been pro-europe, there is the debate on exit that jeremy corbyn has taken a strong stance and we wouldn't be here in the first place. there is some strange irony. to what extent our business courting him, approaching him, trying to talk to him? policies,concerning whether it is raising corporate taxes or reversing that corporate tax cuts we have seen, raising the level of personal taxes quite dramatically. it is very labor. cristina: it harkens back. people are actively seeking audiences with corbyn and mcdonnell. more people have been talking with mcdonnell.

a strange situation because lobbyists and some advisor firms don't have contacts into labor. they date back into new labour, so they are having to scramble a bit. some people have resorted to the get a seating to next to mcdonnell at events. carol: i love that. goldman just sort of walked up to him at conference and said we would like to have a meeting, and they are working on scheduling something. carol: chinese engineers in silicon valley are moving back home in record numbers. >> they are getting tired of a bamboo ceiling, this idea there are two leadership roles available to them in the major silicon valley companies. or at the least, that it is taking them too long to rise above the level of engineering and deal with the kinds of grander problems that they see

friends and colleagues back in china wrestling with. julia: and now jet -- tech has taken over finance as the most popular reason for these guys to go back home. to a recenting survey, it accounts for one in six. julia: at a time when xi jinping is cracking down on internet privacy and the approach for these companies, why is it so easy for these guys to start up their own companies? jeff: according to the headhunters, a big piece of it is beginning with -- piece of that, beginning with the ipo of alibaba in 2014, there is more money than ever flowing through chinese venture capital funds. there was more, chinese vc money than american vc money. getting back to the bamboo

ceiling question, chinese engineers seem to have a much better time raising money if they are in china. you do talk about the vc money flowing into china. carol: three of the next five biggest startups -- that gives a credibility when it comes to the startup world. absolutely, and the other piece of this opportunity question aside from the money, one engineer, according to our reporters, received $30 million in compensation for a four-year deal. my mind.at blew $30 million for a four-year deal for an engineer. jeff: it really is pro athlete money. or ceo. carol: like a sports contract, yeah. jeff: but the other piece to it according to who we spoke to has to do with the looser privacy the 700is idea that million chinese internet users

privacy and data is much more accessible and usable than those of americans. makes total sense. when does this become a problem for silicon valley that they are losing all this talent to places like china and other countries too? jeff: the thing silicon valley has to worry about in the long run is losing ai related engineers who, at the moment, are the most in demand of anybody in the valley or elsewhere around the world. by the same token, that could 850,000 aie of the engineers or ai related workers in the u.s. right now. but one in 12 have chinese heritage of some kind. up next, the latest cosmetic innovation in china doesn't come in a tube or compact, it is found in a petri dish. julia: plus, intel's ceo at the

cef conference, but the problems persist. this is "bloomberg businessweek." ♪

julia: welcome back to "bloomberg businessweek." carol: still ahead in this weeks's issue, fixing intel's chips. fortune from a mexican drug balance. that is still to come on bloomberg businessweek. ♪ julia: we are back with assistant managing editor jim ellis and the editor of the

business section here. beauty may be skin deep, but that skin matters. matters quite a lot. it turns out that humans all epidermis, butar beneath that, there are lots of differences. lots of ways that individual cells react differently depending on the race or nationality or locality of the the french l'oreal, cosmetics company, is doing interesting work with that, looking at how it can tailor make cosmetics for chinese skin, and to do that, it has gone to the lab and is making chinese skin, growing it there. is how they can play around with products, adaptation product so they work well on chinese skin. james: it turns out that when even the product -- if the product have the same name, they can have big differences for the

chinese market or u.s. market. revival lift in the u.s. market and europe, it goes through getting rid of wrinkles. but the wayper, chinese skin ages, it tends to plump up as women age. instead, they are looking for flexibility and the ability to get rid of this -- discolorations, but the name stays the same. you discovered this when you grow skin and then test it and see how it reacts versus skin they have are giving growing for europeans for years. carol: what is interesting is the skin they are developing, they are selling it to other cosmetics companies to do their own testing. donating it to academic researchers, but selling it to other cosmetics companies. it is a double business. julia: the other challenge is the chinese demand products tested on animals.

their brand is based on that soto. they don't want to do that. james: this is the possibility of allowing companies like body shop who currently don't sell directly in china, to enter those markets because once you skin, youat truly is can test on that skin and don't have to test on animals. so we have already seen lots of companies getting excited about that and this is the wave of the future for skin care. carol: talking about futures, let's see what the future of intel is. i feel like this will end up being the big stories of 2018. a group of researchers discovered a major flaw in intel chips. interestingis so about this is not the fact that we found a flop. we find flaws in technology a is aand in some ways, that

good thing. you are constantly trying to tighten things up, but the issue here was -- a google researcher discovered this flaw in intel's chips. it is in the chips used in most pcs and most devices around the world. the sheer scale of this is what makes it so phenomenal, that all and also what-- it involves. it involves the section of a chip where you -- >> like your passwords. here information. james: the information is there and they figured out a way to access that, things like passports, security codes and that is a problem, especially a problem that intel new for six months and never said anything about. julia: and there are whopping share sales in that time. here is reporter max eskin. max: cef was about a week and a half ago, it is the big gadget

extravaganza and then brian intel ands the ceo of for a short amount of time says something very serious, which is not quite an apology, but an explanation of this terrible security flaw that had been discovered days earlier. it was an awkward situation and the security flaw -- you could make an argument it is the first secure -- worst security flaw in the history of computer chips. julia: what exactly did he say on that stage? this is huge. max: that is where the story didn't quite he apologize, which was surprising because this is so bad. he thanked intel's partners for standing with the company in the face of this security flaw and then basically tried to say -- change the subject. what my cowriter and i get into in the story is this isn't going to be neg subject to change -- an easy subject to change.

at the beginning of the year, flawsdisclosed these two and what they amount to is the most secure part of your computer, the part that basically everyone thought was uncrackable, is in fact, crack of all. it gets really technical really quickly, but it is the memory access by the operating system on your computer and a group of security researchers, led by somebody at google but also working people all around the world, figured out how to get into it. it was floating out there that there may be a way to get in and no, intel could never have left a hole like this to get in, but they did. those oness one of where people were talking about it in theoretical terms and as we say in the story, and as bloomberg has reported previously, security researchers looked past this because they

assumed no one would miss this. the accusation is they put speed before security here and as you mentioned at the beginning, most of their clients, their partners have been pretty tightlipped over the subject. microsoft would be the one i would point to and came out and said fixing these flaws could mean delays. max: and it is important to remember -- one thing that happened is you have this bad flaw and then most of intel's partners, with the exception of microsoft, publicly come out and stand arm in arm with intel. they are notound, also happy, but one reason we haven't seen more stuff out in the open is because intel has a virtual monopoly on server chips. server chips are the chips that basically run the internet. it is not the biggest, but probably the most important line of intel's business. forill sell tons of cpus personal computers, but they are basically the only game in town

in server chips at the moment. amazon, microsoft, apple, all these companies that buy a lot of these chips, dell, hewlett-packard, they cannot just break with intel. they have to work with this company because there is nobody else. the problem is -- one of these sort of, buthable, it will really slow down the chips. the other flaw is not really patch of all and in any case, the only way we get past this is with a full chip redesign. that is going to take a long time. it is not the kind of thing they can just fix overnight. that is why you are seeing these big cloud providers publicly try to put on the brakes -- a brave face, privately saying whoa, this is really bad. julia: next, on the lookout for -- bitcoincoin bubble and what might cause it to pop. carol: plus, what might give

high school and college a bad grade.

♪ julia: welcome back to "bloomberg businessweek i'm julia chatterley. carol: i'm carol massar. in the finance section, the big bitcoin question. 20,000, to 900 to 10,000. what would it take for more of a selloff? >> you have seen incredible thee movement in bitcoin in past year. a year ago, it was under 1000 dollars. it went over $20,000 briefly last month and is now back at 12,000. it is not often you can see an asset that sees a bubble and a crash at the same time but what we are looking at in this article is, what are the kind of things that could dent that confidence in bitcoin, because we are making the case that bitcoin is a belief.

people believe in it, it is the first digital currency that can't be stopped by governments or corporations and that is appealing to a lot of people. that is what got us from 2009 to last year. with bitcoin, you have seen exchanges, hundreds of millions of dollars stolen, governments try to ban it. there has been a civil war going on among the developers who are essential to this for years and yet, none of that has stopped this incredible upward momentum. one thing you do say is a risk would be the underlying technology of bitcoin, and that is blockchain. they be having problems with that, because so far, we haven't seen problems. >> that is the thing that makes bitcoin possible, the blockchain. it is a time ordered sequence of every transaction that has ever been done with a bitcoin. canknow everything -- you trace back the history of the bitcoin you just bought.

why the digital currency works. for the first time, that was the main breakthrough. possible to go in and overwhelmed that network of computers all around the world and try to change that history forou can pay for a yacht $10 million of your bitcoin and hacked the network and take the bitcoin back and you still have your yacht. that is a silly example, but what is so interesting about this is if you can take over the network and have that much computing power, you might as well sit there and earn bitcoin for the transactions you verify. you get free bitcoin for everyone you do, so the incentive -- it is fascinating that there is not an insensitive -- an incentive to hack it, unless like from the batman movie, some joker type who wants to sow chaos in the world. that is possible, but it is interesting that every but we

get to has a strong counter argument in my opinion. carol: now, the cost and benefits of education. julia: peter coy considers the controversial thing of a new book. carol: "the case against education: why the widget -- education system is a waste of time and money." peter: it is a theory that has produced a bunch of nobel prizes that signals education, having a degree, walking into a employment office with a diploma says stuff to an employer about , yourevel of intelligence willingness to work hard and complete the four-year degree and your degree of conformity in that you managed to work through a rigid system and comply with all -- >> the boring classes, perhaps. it is about this signaling effect and what you learned. peter: the core idea is that if

you believe in signaling, you could study anything. , and it will be perfectly fine as far as the employers are concerned because they are not paying you for what you learned in college, but the very fact that you have that degree. julia: he believes only 5% of americans should actually get a college education. peter: that is pretty extreme. think,t of people, i will read this book and be with him on a lot of his points and yeah, i went to college and spent a lot of time throwing frisbees around and don't know how much i really learned. how much of what i learned in history class or quadrilaterals -- whatever that stuff is, i don't remember. square of the hypotenuse. carol: right, or algebra towards g -- or geometry, how much do we

use it on a daily basis? he says only 5% of people should go to school and you take away a lot of funding and support, college loans, who gets to go to school? ultimately, the wealthy. peter: that is where i come to at the end of the piece. as a libertarian who is very focused on how -- getting government out of the picture and the free market will sort things out for the best, the people who should go to college will go to college because it will be worth it to them, but what i am afraid about is the people whose parents have the money will still see the benefit of college as a signal and their kids go to school and you have lost the potential benefits of college for equalizing society. but he does make the distinction between a vocational qualification and a degree. evidence suggest about

getting a college education and your earning power going forward? we did this in the u k and people do things like beyonce -- ies as a college course exaggerate, but they didn't get a job afterward. strongthat is a point of his argument. if you are academically inclined, and you can learn a lot and do get that human capital benefit, but for people who aren't, they actually could be better off learning a productive trade, heating ventilating and air conditioning, name it. and they will be happier. they will probably work harder because it will be something they have a genuine interest in, and their lifelong earnings could end up being higher than if they go into some liberal arts problem -- program and don't learn anything. star earningcan

fame singing about the drug trade. plus, charles king on getting black people seen and heard in hollywood. carol: this is "bloomberg businessweek." ♪

♪ welcome back to "bloomberg businessweek." i'm carol massar. julia: i'm julia chatterley. you can listen to us on xm radio and in new york, boston, washington, d.c. and the bay area. carol: and in london on dab and in asia on the bloomberg radio plus app. in the futures section, a look at the semi official -- of drug cartels. julia: record label twins music group has made this pretty dark

genre its speciality. carol: here is reporter david peiser. de -- del rios has become a popstar. his claim to fame is singing narco mexicanlent drug ballads. he sings song about mexican drug -- cartels, activity among other things, and sings traditional romantic love songs, as well. i guess his big claim to fame is these songsly -- have existed in mexican music for decades, but he really upped the ante and made them more violent, more graphic, and that is what made him famous. of theyou included some

lyrics in your reporting and it is pretty interesting. i didn't realize this was such a popular mode of music. mean -- like any kind of music, it goes in and out of popularity or in cycles, but it is very popular. it has a huge following. even shows in california, atlanta -- these guys play all around the u.s. and they play to 5000, 10,000 people in mexico, some places in central america, 10 thousand, 15,000 people. and millions of views on youtube. people are watching what he is doing. david: it is a big market and youtube has been a huge part of it. very elaborate videos and make their videos into five-minute movies and they

are very savvy about that. heartbreaking, i have to say. they are glamorizing something that has huge implications for the country. we have seen the mexican government cracked down on this in the past couple of years. last year was the deadliest year for drug-related killings we have seen in many years. talk to us about the record label that he is actually signed to and what kind of pushback have they received on the music they are making? isid: the name of the label twins and it was run by two guys who are twins. one of them now lives outside of l.a. and has an office in burbank. the other one has an office south. but as far big star, is not as much

as you might think. the best analogy is if you think yes, gangster rap here, there are people who are upset about it but for the most part, it has become part of the musical landscape and i think partcorridos have become of the mexican musical landscape, with tradition going back quite a ways. julia: focusing on the entertainment business now, and this week's game changer is charles king. the first black partner at william morris endeavor. here is reporter lucas shaw. atlantae is a guy from who went to vanderbilt and then howard long -- law school and then worked in the mailroom of one of the oldest agencies in hollywood. he was inspired by a couple of moguls who took the same path. agencies have been the way to

rise in hollywood, and he became the first black partner at the morrison never after it emerged -- merged. dreamsfinally filled his of starting his own company and specifically, bankrolling filmmakers of color. hollywood had a reputation of this very progressive place, primarily has white directors, white male directors and charles has set out, both as an agent representing the likes of tyler perry, and now a company macro of black directors behind the camera. he still believes casting in hollywood is about appeasement when people of color are hired rather than being fundamental change. how'd you think he thinks he can change that specifically? lucas: i think he is hoping macro, his company, by selecting directors of color to make movies, those directors will have a crew that is more diverse

and a cast that is more diverse. if you look at hollywood right now, there are a handful of ors, the direct director of selma made a show for oprah's tv network, where most of the writers and people on the crew were people of color. charles is trying to do that not with just one director and project, but with almost everything he does. while that is just a handful of project in a town of hundreds of projects, every small company makes a big difference. what does he say about his path to where he is today? how hard was it for him to work up the ranks? he, like a lot of people in their 20's, had to toure out where he wanted go. he was in college, made money by modeling and acting, but always had this sense that he was good at identifying talent and making

deals for them behind the scenes and he seems like one of those people who was very driven and had a clear sense of where he wanted to get from an early age. he made the decision to move to hollywood and working at halogen -- talent agency mailroom. he rose there reasonably quickly and when he had the opportunity to start his own company, he did so. i imagine he faced his challenges like anyone else, but he was someone with a clear goal and focus early on. "bloomberg businessweek" is available on newsstands now. we have to talk about the cover story. it is all about the trials and tribulations and downfall of the company's cofounder travel -- travis kalanick and how you ,ltimately see investors employers behind him are not talking him anymore. julia: we talk a lot about this story, but this tracks the path before the media got hold of what was going on.

at the core of it, perhaps a lesson to be learned about management structure, as well. it was a tough year in 2017 for uber and this story breaks it down. more bloomberg television up next. ♪ we use our phones and computers the same way these days.

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>> i'm selina wang denver emily chang, and this is the "best of bloomberg technology." big tech spec on top of the hill, and this time, it is all about fighting online extreme wisdom -- online extremism. of where it will build its headquarters.