carol: welcome to "bloomberg businessweek." i'm carol massar. julia: i'm julia chatterley. we are inside the magazine's headquarters in new york. carol: in this week's issue, in the year of the dog, beijing continues to feel the bites of deleveraging. julia: a hub for moving chinese cash. carol: steve bannon has another warning for the white house. julia: all that ahead on "bloomberg businessweek." ♪ carol: we are here with the editor-in-chief of "bloomberg

businessweek" joel weber. let's start with remarks in asia, that bears close watching. "businessweek" has been writing about the debt pile up in china. china has been doing something to get rid of that. joel: this is called the year the dog. what we will be talking about is deleveraging. the debt pile up in china is enormous. there's been a number of people -- the further away you get from china, the more bearish you get on china, apparently, but for years, people have been calling for something is going to give. it will be bad for the global economy. all eyes on this in general. where our story picks up on that is talking about, the number is $30 trillion. that's how much we are talking about here. it's massive. the number people pick up on is 2.5% gdp. what do you do about that? president xi -- this year will be about deleveraging, which is what this is about. julia: still providing credit to

companies that they are not concerned about, but they are also cracking down on big corporates that have been spending. joel: it's not even called corporate anymore. it's conglomerate. a 10 day is one that's making a lot of news right now. -- age and a is one it's making a lot of news right now. &a is one that's making a lot of news right now. real estate from years ago, they're selling it off and doing it the big way, $4 billion. that's part of the story, cracking down on these conglomerates that may be overreached, bringing them back in. it's also cracking down on provinces and state-backed companies who, that is the number one place it gets linked to. carroll: this is the conundrum, right? it starts in china and works its way down. the chinese central government sense economic targets. they will wait on politicians to make sure they have those targets. it is key to the communist

party, keeping xi in power, keeping the economy going in terms of staying in power. joel: that's where the balancing act comes in. can they pull it off is the question. that will be something we are all going to be continuing to watch. the ramifications for the global economy, because of the size of china's economy are massive. julia: china has made it one of the three priorities, poverty, pollution, debt. you see what they are attempting. carol: priority is the right word. joel: i don't want to get out of of his bad graces. [laughter] julia: chinese workers are operating in a place which is one of the -- can we say -- the largest washing machine operation, perhaps? [laughter] joel: you can, i'm not going to say that. carol: we can allege. julia: we can allege. joel: so this story is amazing. it is about an island called saipan. this place is on u.s. soil. you get on a plane, flight to hawaii, do that again.

it puts it right over in asia, and it's a little bit closer to asia than the u.s. it is guam's neighbor. the story centers on the chinese casino that opens on japan. it's a little fuzzy. julia: it's a lot fuzzy. let's be clear. it's way more financially superior than anything in vegas. joel: macau dwarfs vegas in size of per table numbers. casinos in japan dwarf that with fewer tables. [laughter] carol: right. that alone and the relationship between the company and the u.s. and government officials would be super interesting. matt campbell went there. we got more from him. matt: saipan is the capital of a pretty obscure american territory called the commonwealth of northern mariana -- casinos in japan dwarf that with fewer tables. [laughter] carol: right. that alone and the relationship between the company and the u.s. and government officials would be super interesting. matt campbell went there. we got more from him.

matt: saipan is the capital of a pretty obscure american territory called the commonwealth of northern mariana islands. if you want to see it on a map, you've got to look for guam, then go up to the right. it's an impossibly remote part of the world, 14 time zones from washington. the quickest way to get there is to fly to tokyo, then double back. it has been since the 1970's american soil. it is a place where they use the u.s. dollar, u.s. mail, federal law extends there. this is, for all intents and purposes, part of america. carol: talk to us about 2014. matt: the biggest issue in the mariana islands since the second world war has been finding an economic purpose. this part of the world has no industrial base, natural resources. nothing to sustain its economy. there was a garment industry in the 1980's really, which became enormous in the 1990's and 2000's, that eventually collapsed. but that meant was the marianas

were desperate for cash, they were in a serious financial crisis. what they did is what a lot of out-of-options jurisdictions have done over the years. they looked for a casino. carol: economic answer, isn't it? [laughter] matt: it's all about the money. carol: right. matt: the casino led to unusual events which are still unfolding. julia: talk to us about those events, and the company imperial pacific international. matt: imperial pacific international was called "first natural foods." they were in the frozen food business. they've recently got into the casino business. they were controlled by a mother and son from mainland china. they have certain connections in macau, which is of course the gambling capital of the world. they turned up on saipan in 2014

with amounts of money that this place had never seen before. this is an island where the best hotel is a hyatt from the 1970's. the airport. it's tiny. 50,000 people if that. all of a sudden, you have billionaires from china spending large amounts from the island economy. carol: they have billions of dollars in terms of development. matt: they promised to spend up to $3 billion for now, in terms of development. what is remarkable is as soon as gambling began, a temporary facility, not the casino, the numbers were astounding, the likes of which, when you speak to gaming experts in macau, they've never seen them before. julia: the financials here are incredible. you say it is past the generation capacity of casinos in macau, way bigger than anything vegas has ever seen.

matt: if you look at the comparative numbers here, they do it able to -- her --per table. that's the important metric. this is a place that's turning over, by some measures, six times more than casinos in macau per table. at one point, this temporary casino, which is about the size of an olive garden, was doing something like 1/3 of the volume of the wynn macau, which is one of the biggest casinos in the world. it raised some eyebrows in the industry. julia: could this be done legitimately, if you're talking about chinese billionaires coming to this remote location? what have people said to you about the possibility that this could be legitimate? matt: i spoke to a number of gaming experts and executives. all of them with a lot of experience in asia. they were all deeply, deeply skeptical -- to say the least -- of any legitimate explanation for funds like this. carol: what is a legitimate

explanation of what's going on? matt: i should say, first of all, imperial pacific is complying with all laws. they do not view their volumes as excessive, and there is an entirely above board gaming option. one explanation, macau is a huge center for flight. some of that capital is something that any law firm has done business, they will tell you macau is a significant venue for money laundering. one of the largest in the world. that's because there's a lot of money trying to get out of china. a lot of the money is proceeds of corruption, bribery, and it has historically tended to flow in large part through macau. whether that's going on in saipan, i think, needs to be left to others. carol: why isn't it going to saipan? matt: president xi jinping has been tough on this sort of thing.

if you look at the result of macau casino operators over the past few years, they are all the way down from the boom years, which were 2012, 2013. it has gotten tougher to move large amounts of money money through macau. as a result, that money is popping up elsewhere. julia: as you've pointed out, this is u.s. territory. could you explain how this effective money washing is working in practice, and does the fact that it is a u.s. territory aid but the problem is right now for money and macau? matt: well, when you want to get money out of china, the goal is to get it is safe. julia: yeah. matt: or there are property rights. there's no better place than the united states for property rights. that's a valuable thing potentially to be able to offer. there's also a question of, look, banks in asia are really, really, really terrified of being sanctioned by the u.s.

treasury, of ending up on a blacklist. that's not a fear that is quite so pronounced within the united states, of course. this is all speaking generally, not necessarily about saipan. carol: up next, a wall street titan makes a new bet on banking and italy. julia: an american chef cashing in in copenhagen. carol: this is "bloomberg businessweek." ♪

♪ carol: welcome back to "bloomberg businessweek." i am carol massar. julia: i'm julia chatterley. you can find us online on businessweek.com. carol: and on our mobile up. former barclays chief bob diamond is taking on a risky bet. julia: an opportunity for small business lending in italy.

here's our reporter, elisa martinuzzi, from milan. elisa: this is with barclays, investment banking powerhouse. he has been tiptoeing another business areas. he tried africa in the not so distant past, tried to replicate banking, but it did not quite go according to plan. it's the turn of italy and southern europe. what he sees is the opportunity to fund a business that has been the backbone of italian economy, which is bank lending to small- and medium-sized companies. julia: when you think about italy, you think about the struggles of the banking sector. set the scene for us -- is this situation improving here for nonperforming loans in italy? elisa: i think what's interesting is the timing. for the last couple of years, the focus has been on that banks have built up.

as far as investment firms, people coming from outside, the equity funds, the trust funds, they have all been focusing on purchasing some of these bad debts, prices in the hope of being able to sell those and the assets behind them for profit. now, suddenly, as the economy starts to turn, investors are seeing the opportunity to make money by lending. it is sort of a positive story, very different to the ones that focus on bad loans we have had so far. julia: we can imagine good companies there have been starved of credit due to debt. talk to me about the plan. what has bob diamond invested, and what did he hope to do? elisa: that's exactly it. taking advantage of the big banks, established players, dealing with a bad loan debt,

and are unable to grow their lending book. what he's doing here is investing in a company founded by a former ceo of one of italy's biggest banks, who was also a foreign minister, who is going to be buying a bank, and they are in a discussion now to purchase that license. they injected 600 million euros of capital into that, to try to extend credit, to become a challenger bank to mainstream vendors. julia: this is interesting. he has the political leverage here, but he was the former head of a company, and is combining his political knowledge and expertise with banking sector expertise in the partner he is choosing here. elisa: absolutely. he's witnessed coming up from behind, run one of the bigger banks.

he was able to cross that bridge and presumably have backing for this venture, and will be negotiating with regulators, for example, in terms of the license purchase. julia: in europe, a profile of rodeo sanchez. carol: she's american chef with a taste of mexican cuisine. julia: here's our editor chris rovzar. chris: rocio sanchez is a young woman who is opening restaurants in copenhagen. maybe that's something i won't not be familiar with soon, but she's got this incredible career. she's 32 years old, she has cooked in some of the most incredible kitchens around the world. julia: incredible, at the fat

duck, in london, at noma, in denmark, the denmark connection. chris: exactly. she worked for several years at a place, widely regarded the best restaurant in the world. she took that knowledge and brought it to her own place. she's causing a sensation. julia: i mean, this is a strange path she's taken. she was a daughter of mexican immigrants, grew up in chicago. she now finds herself in copenhagen with three restaurants at 32. chris: it wasn't something she imagined as a little kid. she's very funny, no-nonsense. when she was talking to a reporter, she said "i never thought i would be a chef, i was just a fat girl. i liked cake." julia: [laughs] chris: she went to a vocational school outside of chicago, learned how to cook, she learned pastry making. she started interning around the world at some places, then she got a call from noma, and said it was like getting the call to tour with beyonce.

she said that's what i'm doing all right, that's what she was doing, and she worked there for several years. julia: one thing that stood out was the chocolate chili, obviously. chris: yes, the chili-chocolate popsicles. one of my coworkers had them, it's amazing. she did a pop up at shake shack in new york. i went down and had a breakfast taco she made with cured bacon and egg yolks, which sounds weird. julia: yes. chris: -- but was really delicious. they did a pop up, and were selling at 7:30, and they were sold out a 9:00 a.m. julia: this is very unique here, with -- it's also it takes something getting used to, i think. the flavors seem to be going well with people. chris: the fried pork skins is a mexican, traditional food.

when she is in copenhagen, she can't get tomatillos or some of the traditional ingredients she would use if she was here. she uses gooseberries, and that adds a danish spin on the mexican dishes. julia: so what does the future hold? chris: she has also become a sensation, because she hires a lot of women chefs. julia: yeah. chris: she got a lot of attention for that. when she started her first taqueria, she hired all women chefs. she didn't want to get into a whole thing about women in kitchens, and you know, any of the controversy there. she's just trying to hire women chefs. she found women she liked and hired them. now, she's got a mix. she's got a little crazy. [laughter] chris: she's hired a lot more women in her kitchen than a lot of other european kitchens. carol: up next, steve bannon finds reason to address the #metoo movement. julia: this is "bloomberg businessweek." ♪

julia: welcome back to

"bloomberg businessweek." i'm julia chatterley. carol: i'm carol massar. you can also listen to us on radio on sirius xm channel 119, and on and a.m. 1130 in new york, 106.1 in boston, 91 fm and washington, d.c., and a.m. 960 on the bay area. julia: and in london on dmu x3, and on bloomberg on the radio plus. ex-house adviser steve bannon sees a problem on the horizon for president trump. carol: we are not talking about russia, we are talking about the #metoo movement. matthew: it's the night of january 7. he's at the back room of the townhouse, where he lives near capitol hill. we are only a few days after the publication of michael wolff's book, in which steve bannon rips apart the white house, and the president gets publicly excommunicated, not just by the white house, but eventually loses his ties to breitbart. he is sitting in the aftermath of this, watches the golden

globes. he watches the ceremony of all the women's power movement, and the backlash, an embodiment of the #metoo movement. he has this "oh, my gosh" moment. this is the next political backlash that is going to, you know, sweep washington and away the institutions. of course, he's the guy who harnessed the last one, the populist kind of nationalist movement. he's telling josh, who, you know, as they are watching this, this is a seminal moment. the irony of course is this is coming just as bannon has been exiled out of the white house. this could do potential damage for the republicans in 2018. julia: he declared it's a

cromwell moment, we're talking oliver cromwell. puritan, 17th century u.k. what did he mean by that, and where does he see the danger? matthew: he sees this as an anti-patriarchy movement thousands of years in the making. the irony, perhaps the power of this, he sees donald trump as the embodiment that so much of the #metoo movement is aimed against, this anti-male establishment. as he tells josh, donald trump the perfect villain. he really sees this in broad, historical sweep. he's never short for a way to look at a historical moment and find some random theme. in this case, the puritanical movement of cromwell.

these women in black dresses, all my god, this is anti-patriarchy, anti-male. it's big and it's, you know, hundreds of years in the making, and there's no stopping it. julia: for a lot of people, that night, natalie portman it was quite jarring. she made it more than the me too -- she made it anti-male. then, you tie that to rob porter, and what we've seen over the last few weeks. you feel like that's a fuel on the fire moment for the administration. matthew: that's right. after the golden globes, you have the rob porter scandal, allegations of domestic violence with rob porter. the white house handled that, it was bad on every front. they seem to have known for quite a while this was an issue in his past. they held up his security clearance. the fbi had flagged it, too. a number of people, including chief of staff john kelly.

the initial reaction was these are allegations that are not founded in reality. this is exactly what bannon is talking about, which is this white house in particular seems ill-equipped to deal with this movement, in particular. and look, it is kind of a chicken and egg thing about which came first, whether the women's march that happened the week after the inauguration last year would happen without donald trump, we are not sure. but we are in a moment here that has momentum, probably poses some serious problems for republicans in the midterm. a record number of women are running as candidates for congress, the vast majority of them are running as democrats. carol: next, the #metoo movement moves to europe's sports leagues. julia: and angela merkel pays a high price to stay in power.

carol: this is "bloomberg businessweek." ♪ ♪

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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. julia: welcome back to "bloomberg businessweek." carol: still ahead, angela merkel gets downsized. julia: european sports clubs cry foul when it comes to eye candy. all that still ahead on "bloomberg businessweek." ♪ julia: there is still so much more to read in the magazine. let us hone in on the business section. we see the me too movement in focus once again and it is going to european sports sector.

carol: so much conversation in the u.s. about this. now we're seeing it take up on the other side of the atlantic. one of the most interesting things about this is the shift in sports. that is where the story hits. you can think about all of the gorgeous, scantily clad women you think about on the podium at the tour de france. formula one. julia: formula one for me put be the one. joel: even darts which has an audience. all of them have changed their tune and said this could project a different view of the world in sports than we want to project. in the last month we have seen major change. julia: are they coming under pressure as a result of declining viewership? is there a backlash of some sort or a choice they have made? joel: it was on the heels of some stuff that happened in london.

and, i think they used that moment to look at themselves, look in the mirror and say -- you know what? nothing has happened. there has been no allegations of sexual harassment or abuse, or just merely saying projections. carol: the event that brought the attention to the folks in europe was this london charity event. all male. women working at the event. and there were allegations of sexual harassment and inappropriate conduct. that really kind of changed the conversation perhaps. joel: in europe especially. it had been primarily a u.s. conversation. i think this became a wildfire moment. probably bad actors. what the sports community realized was that there have not been any allegations yet but the objects are bad and we need to change this narrative sooner rather than later. strategically they have done that. instead of scantily clad women, you are seeing more elegantly dressed men and women.

julia: is it going to work? i'm just trying to think about formula one. joel: not everyone has gone along. one of the people who says this is part of our sport is boxing. carol: the women holding the signs. joel: in boxing at least, in europe for a little bit longer. carol: what was interesting is that there were women models who were in europe saying i make great money doing this and did not have a problem with it. joel: that is an interesting nuance. even though it is a great job, the sports leagues saying that they need to change the optics. that is what is happening. carol: speaking of women defending their position, there is the european cover story on angela merkel. go back a year ago and the german chancellor was in a strong position, not just in her

country but globally. she was looked at as a beacon of moving everyone forward. joel: no doubt, the most powerful woman in the world. carol: and has been for a while. joel: and probably still is but what has happened in germany is that her power has been somewhat diminished by a coalition she had to form. that coalition -- that's a constant theme in german politics. it is often called a grand coalition. this one has the chance to not be so grand because it diminishes her power. if the power is diminished within germany, it is potentially diminished on a world scale. julia: she has been in this coalition a number of times before. but this one is a game changer. joel: it is a different mix of coalitions. julia: unprecedented. we pick up the story with david. david: it has an agreement for a coalition government, but that agreement still needs to be approved by the 460,000 members of the social democratic party. that is where the rub comes in. in order to get a deal with the social democrats, she had to give up a lot. carol: your story talks about how she has been in the past a really good negotiator.

she does not blink but this time she blinked. what is different? julia: and what does she give up? david: the social democrats, they walked into the negotiations over the last couple of weeks and culminating about a week ago. they said -- ok, we want three ministries. they said we want finance, foreign, and labor at a minimum. normally in german politics what happens is the social democrats say they want one thing and the christian democrats want another and other parties. it goes round robin. this time they said no, take it or leave it. she had to take it. although neither party could afford to walk out of the room without a coalition agreement, she would have been in far worse shape had she done so. julia: why? david: because she has been chancellor for so long. she said this reputation of

being the leader of the free world. which she kind of hates, but it is a moniker that has stuck. she had so much more to lose because she is the chancellor effectively. she would've been falling from a higher place. the social democrats had nothing to lose. they have been junior partners in this coalition for the last four years and they got nothing out of it. they were always sort of perceived as the secondary elements. they could have walked away. there was a lot of pressure within their party to go into opposition and not be in a coalition government with her again. julia: they didn't nothing out of becoming a coalition with angela merkel. they got pummeled in the last election. a shocking showing. and angela merkel struggled as a result of the rise of the afd party. was she afraid to go to fresh

elections in case they increased their support further? david: yeah, neither side could afford to go into new elections because of the rise of the right wing party, called an alternative for germany. it is kind of anti-immigrant, populist group. they were fearful of the rise of this party. carol: where is she today? your story does talk. if you go back a year ago, that she was in a very different position. how weakened is she today? david: she has probably never been more vulnerable. she has been a strong chancellor for this country. she is very popular. they call her mother. now she is seeing as vulnerable. there are some conservative members of her party taking potshots at her saying the coalition will never last for

four years. she does not have that stature on the world stage that she did a year ago. she has kind of ceded that to the fresh face of macron in paris and other leaders. she does not look quite as all-powerful in europe and in the world as she did. carol: up next, working for a start up turned out to be extra hard in india. julia: singularity university looks for a second chance. carol: this is "bloomberg businessweek." ♪

♪ julia: welcome back to "bloomberg businessweek." i'm julia chatterley. carol: i am carol massar. you can also find us online at businessweek.com. in the economic section, why some parents in india are encouraging their children not to pursue careers in technology.

carol: it's an interesting story. christina: about 1000 new tech companies were born last year according to the trade group that keeps track of this stuff, and increasing valuations and we are having international investors make big bets on indian companies. including softbank last year. little unicorns being born. it is not all working out for people who are in the rank-and-file. julia: why? cristina: because stock option programs, the way that silicon valley companies, tools they pioneered in a way to attract and retain the best and the brightest are not working out in india so well. because either the programs are badly designed or because founders frankly are cheating their employees out of their rightful payouts. julia: in silicon valley, you hire great talent, you offer

them stock options, you hope at some point you ipo or ultimately you get bought out by somebody. you make hay because you own the stock options worth significantly more. did it work in silicon valley and why is it not working in india? cristina: it didn't work. think of paypal. there is an in-house masseuse at google who is now a millionaire. julia: good for her. carol: for him. cristina: it helps create the next generation of investors and it keeps the ecosystem robust. julia: he keeps the talent there. cristina: one problem in india -- beside the bad design is that there have not been as many ipos or big buyouts. but still we have seen, since 2013, the first high-profile case popped up. kind of a steady trickle of lawsuits and complaints.

we talked to law firms saying they are getting a lot of calls from disgruntled employees. carol: tell me about these disgruntled employee's. are they promised options? are they promised in the company goes public they will get something and then all of a sudden when that happens they just don't? cristina: that's right. they are brought on. the company says they have a plan. that was drafted and codified but some did not read the fine print. there was an instance where a company was acquired and the founders and the original investors got a payout but the employees said, what about us? when they had lawyers go with a fine tooth comb through the plan it said that stock options -- that there was no accelerated

investing in a takeover. carol: in the technology section, similarity university was once looked at as a blueprint for the education of the future. julia: but first, it had to reconcile a pretty dark past. here is sarah mcbride. sarah: singularity university was not founded as a university but more as a place where people could go think about big ideas that could change society. really big ideas like solving hunger and poverty and rethinking government and think about how to make that happen. when it was founded, this guy, ray kurzwell, a big thinker in silicon valley who wrote a book about this concept, the singularity, which basically means that machines are getting smarter and smarter and overtaking human intelligence. one day, we may merge with machines. so, he is the cofounder. the man who started the x prize, peter diamandis is also a

cofounder and they attracted all of these big thinkers in silicon valley around them. it was a pretty -- and it is a very exciting place where students would come and spend the summer at singularity university thinking about these problems and hearing from these big thinkers. julia: you have given us the good news. let us look at some downsides. talk to me about astronaut dan barry and his involvement with the program. sarah: the cofounder, peter diamondis is really interested in space. he also helped start international space university and he knows a lot of astronauts. he was able to attract astronauts to come teach at singularity university, including this guy dan barry who is really influential and

students often cited the talk he gave at the beginning of the summer program as the best of the programs. people like them and looked up to him and thought of him as a mentor. and then one year, he was in france and looked up a former student. this was in 2013 that he looked up the student that had been in the program a couple of years earlier. and there was an incident in paris where he ended up giving her a massage for her aching back and she says he touched her inappropriately. she fled and filed reports with police and other authorities in france. she reported the incident to singularity university and just thought that the outcome was not what she would've wanted to see. he left the summer program but he is still affiliated with singularity university and still teaches at their executive programs which are a little bit

different. obviously there are two sides to every story, so i have not heard back from the astronaut at the time of this taping but perhaps he disagrees with her account of the story. julia: of course. there were allegations made of sexual assault in this case. talk about some of the financial irregularities because this to me is also quite fascinating. we had a financial controller arrested, alecia isaac, for misuse of the company's funds. talk about that. sara: when it was starting, it was a little bit chaotic and she was the controller at another organization here in the bay area. this concept of man merging with machines. she was also at singularity university. it was getting off the ground. their controller too. she was able to do things like

issue cashier's checks that she cashed and was working with the president of this other organization. they took singularity university's credit card and racked up all sorts of personal charges. the director of this other institute bought a motorcycle fraudulently. finally, other people realized what was going on and both were arrested and ultimately pleaded guilty to felony charges. julia: up next, the global battle for artificial intelligence experts. carol: and luxury carmakers finally put females in the driver's seat. julia: this is "bloomberg businessweek." ♪

♪

carol: welcome back to "bloomberg businessweek." carol massar. julia: you are julia chatterley. you can listen to us online and also on am 1130. and on a.m. 960 in the bay area. carol: and in london and in asia on the bloomberg radio plus app. in the technology section, silicon valley is looking for a few good ai experts. julia: tens of thousands. carol: what is an ai expert. >> someone big tech companies are looking for them to help them with driverless cars or to upgrade face recognition software. that sort of thing. now there is a pretty wide range of industries interested in ai. julia: what qualifications do i need? i think that is the critical point here. i have a masters degree.

could i qualify? >> the baseline requirements tend to be high-level math and statistical understanding. you need a sort of grounding in key programming languages including python. they generally underlie most misting -- machine learning systems. carol: what is interesting about the story is you talk about wanting a seven-figure salary which you can get if you are an ai expert. why is that? is it just a supply and demand question? >> in fact it is hard for people to figure out probably because no one is tracking it holistically how many ai experts there are. a company called element ai in montreal has released a report suggesting that there are at most 22,000 experts around the world who are really capable of building the kind of ai systems that these tech companies and banks and drug companies are looking for. whereas there are 10,000 open positions for that kind of work in the u.s. alone.

according to element there are only about 3000 people looking for that kind of work. carol: a supply and demand issue. julia: what else do you need to be considered an ai expert? to be a leading figure in this versus summit with coding, mathematics, statistics? >> leading figure is a different question. even entry-level, you have phds in data science or machine learning that command salaries of $300,000 and up from a google or facebook. julia: starting salary? >> exactly. it is more common typically for companies to require the kinds of people who can dominate or lead a particular subfield. they tend to be much fewer. element admits its methodology was searching just based on linkedin profiles. people with certain skills listings, the kind of language

we talked about a minute ago. julia: they could have missed people or they could just have gotten the creme de la creme of the individuals we are talking about here. >> even if you just have a linkedin file, you may not have been caught in this. carol: if you are in the upper tier, i am sure you are very well-known in the industry and probably really sought-after. >> the other three godfathers of contemporary ai, that is facebook, google, and the third works for element ai. even they say they are having trouble recruiting because there is a shortage of talent. julia: luxury carmakers are finally realizing the sheer scale of female buying power. carol: it is about time. here is editor chris rovzar. chris: we thought it would be a great time to check in on how super luxury car companies are addressing women and attracting this growing audience. especially in saudi arabia, it is a totally new audience.

julia: and a high-end audience. let's be clear. chris: a popular car there is the rolls-royce phantom with the 20-foot wheelbase. for a very practical reason. women who are being driven around by men who are not related to them want to be at a distance from those men. now, women will be in the driver seat. they will be buying more fun cars. maybe the rolls-royce rage. it has two doors of a more sporty. julia: it is cheaper, kind of. chris: it is still over $300,000. no one expects these women to scrimp. when the announcement happened last year they would allow women to drive, overnight almost people started marketing cars to women because people know how powerful women are in that marketplace. julia: ken aston martin, ferrari, lamborghini. it is not just rolls-royce. they have all been thinking about this.

chris: they created a panel of women to figure out what women want. they have not been great in figuring this out in the past. mclaren started making a sports series for a broader audience. lamborghini will be making an suv based on the female audience. you see these companies that would never even consider making an suv. ferrari will call it the ferrari utility vehicle here because women are this missing segment for them. and in the lower tiers of the market -- julia: these are huge, and audi, mercedes, bmw. you can get the marketing pretty wrong. audi had a very embarrassing mishap in china. chris: car companies have gotten a lot better in the last decades but they are not perfect. audi had an ad in china last year where there was a bride and groom at the altar. the future mother-in-law was pinching and poking the bride

like you would test a horse. audi had to apologize and take the ad down because it was gross. you watch it and you can't believe it. julia: i'm sure it was for humor. chris: those things can go so wrong so easily. carol: "bloomberg businessweek" is available on newsstands now. julia: and online and on our mobile lab. your favorite story? carol: the story from matt campbell. he takes us to a specific part of the pacific, called saipan. a company that has built this tremendous gambling company where we are seeing an unbelievable amount of gambling volume that rivals macau. julia: it is bigger than anything produced in vegas also. the problem is we think it is money laundering. carol: they look at the relationships and everything going on. julia: where are the authorities

.julia: where are the authorities in this case? he dives into the family relationships in the region. unbelievable. carol: an intricate story. julia: and a u.s. territory. more bloomberg television is coming up next. ♪

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