carol: welcome to "bloomberg businessweek." julia: we are inside the headquarters in new york. carol: wells fargo's ceo is done apologizing. julia: the ford office is getting a little too serious for some. carol: how defective guns became the one product that cannot be recalled in the united states. julia: all of that and more to come on "bloomberg businessweek." ♪ julia: i am here with joel

webber, businessweek editor in chief. ,he cover story is wells fargo one of the biggest banks in the united states, the biggest home lender. had a pretty challenging year, a scandal that dates back a decade , concerns over incentive structures, bank accounts being created. joel: this all came to a head about 16 months ago with a sham account story. they were cross-selling and basically driving up the number of products that people had and in many cases, people did not know. two years ago, if you would have asked anyone in banking who was number one, they probably would've said jpmorgan and wells fargo is a send in, and that story has changed. it almost felt like every wrong wells fargo could've hit on the way down, they hit. julia: everyone was outraged,

regulators and politicians were outraged. into the breach. joel: now the question -- and we had an exclusive interview with the ceo and said, what is the plan? it is a fascinating question, is just a couple weeks ago, as outgoing fed chair janet yellen's final act, somewhat unexpectedly put handcuffs on the bank and said, you cannot grow your assets anymore. that is a major strategic challenge for an institution might wells fargo, and mr. sloan's reality that he will have to wrestle with is, how do you make this business make sense? julia: a lot of people are looking at this and saying, this will be a huge challenge, they will lose market share. joel: the competitors are like shocks -- sharks in the water. julia: legacy issues, and one of

the interesting things that came out is this idea that they want to change the narrative. they are done apologizing. have you balance those? joel: one thing that was interesting was the idea that this is an insanely profitable company. 2010,mpanies since publicly traded companies, have made more than $10 billion in profit a year and wells fargo is one of them. for all its flaws, they have some deep strengths to play from. as you start looking forward, they are known as a consumer brand and they do have opportunity in places like banking to somewhat underserved markets like hispanic and black communities, and that is seen as a major advantage. you will see them moving into a credit card space, and going to consumers and customers they have never gone to before. we talked about a lot of analysts and investors, you get both sides of the coin.

everyone is waiting to see how this plays out, but the idea of where does this bank go from here is the idea we wanted to explore. julia: this could be a $400 million chop to profits this year, was tim sloan daunted or up for the challenge? joel: they basically apologized. julia: since coming, 15 months. joel: said, i am sorry, i am sorry, and i do not know if he can say that enough, to get over some of the cultural things they have had to wrestle with. to some extent, they are over apologizing and need to move on. he has to find his way. julia: from the u.s. cover to the european cover, a body that tackles challenges like this is the ffo in the u.k. joel: this is a fascinating organization, and the theme that viewers and readers should know is it is a serious times moment at the fraud office.

it is responsible for basically looking at u.k. businesses and making sure that things are not corrupt. brexit, whereof the u.k. is actually trying to retain as much business as they can, stunning enough, this organization is somewhat in the crosshairs because they are doing their jobs almost too well. they are going, after white-collar criminals and the government is looking at them, and there is a lot of speculation that maybe this organization as it exists right now, will not exist going forward because they have done too good of a job at cracking down on business crimes. julia: certainly if this prime minister remains in her seat. this serious fraud office is an agency in the u.k. that is been around for about 30 years and is our main criminal prosecutor, particularly focused on fraud and bribery.

it will be the prosecutor behind most white-collar criminal cases , roughly equivalent to the u.s. department of justice fraud section. the agency was at an all-time low and just managed being wrapped into another agency called the national crime agency. theresa may being home secretary, was keen for it to be joined with other prosecutors and regulators into one agency, focused on a wide variety of things. morale at the time was low. a lot of staff had left. it had just botched a prosecution in two the tank as , and being derided in court as having acted extremely recklessly. david greene joined an agency at an all-time low i needed to develop it from there. he had come in with the background as a barrister, trial lawyer in london having prosecuted cases like this for 30 years, and also had government experience so he knew

what the past of a single settlement was like. he was starting from a low base, but decided he wanted to put the agency back on track doing what it was supposed to do, prosecuting top-tier cases of white-collar crime. julia: his successor was appointed by may's attorney general. she has already tried to fold this agency into a second one. where does the future lie for the sfo? suzi: this is a really key moment. a year away from now, leaving the european union, there is a lot of stake -- a lot at stake. vote, everything should be focused on brexit, theresa may put in the manifesto to close the serious fraud office, which brought a lot of questions as to why that was such a focus for her.

that was absolutely nothing to do with brexit and where her focus should be, and it raised questions around, that was the third time we had seen threats, even after having such a successful run under david greene. what does that mean for a post-brexit future when the u.k. is looking for investment from other countries outside the e.u.? are we trying to send the message we will not be tough on correct -- corruption? what is made trying to achieve? will be aimately, it big message sent to the u.k. and the world, depending on what happens after his term ends. suzi: we are waiting to see who his successor will be. we should find out around the end of march. what happens from that point, david green has had a good and successful run over the last six years. he has left the agency in a very good state for someone to take it forward. it will be interesting to see who was appointed to take over

that role, and what kind of briefing they are given as to how the agency should be going forward. julia: the u.k. is desperate to make sure post-brexit they still get increased investment, so you can understand the concern and thinking, that is the message here that the uk's ability to fight corporate crime will be seriously diminished if the sfo is not a stand-alone agency as it is today? suzi: that is the view by most people in the agency, because the sfo has achieved so much. if the sfo is wrapped into another agency, which would inevitably come with problems and put off focus for a while. what message would that send to people who want to invest in the u.k., not through transparent means, not through the correct processes? is that going to get rid of all the work that greene has done that london does not tolerate

corruption, and open up opportunities to investors we do not want investing in our country? consequencesadly of having zero government oversight of defective firearms. julia: why sonoma, california should not rebuild after those devastating fires. carol: this is "bloomberg businessweek." ♪

carol: welcome back to bloomberg businessweek, i am carol massar. julia: i am julia chatterley. you can find us online at businessweek.com. carol: tourist handguns are being accidentally blamed us blamed for accidentally killing people. julia: will the government and the national rifle association do anything? carol: we talked to mike smith. julia: talk about bud brown and the day his son was shot. eve, andwas new year's

they live in a rural area of georgia, south of atlanta. , was going out to do some shooting early in the morning, some hunting with his best friend, and he really wanted to use his dad's relatively new pistol. made by arearm brazilian firearm maker, who exports to a lot of different countries. populare of the most selling handgun makers in the united states. 45 pistol, which has a clip. it is not a revolver, and it is a very popular gun, or was for a long time. so this gun is the gun that one off without apparently anyone touching it, while it was in the holster, and after this tragedy, jerry brown's friends started googling this gone, as they

could not believe their friend had pulled the trigger. what he found was a notice from the company saying that they reached a class action settlement and had agreed to fix , repair, or replace this gun model and several other ones because of potential defects. carol: that is key, fix or replace. it was not a recall. it seems there was something faulty with the safety mechanisms of this gun, so they said they would fix it but not recall it. julia: nine others as well. michael: that is correct it is nine different models of taurus .uns covered by this litigation the company was very careful and adamant about not being forced to call this a recall in its settlement with victims of misfires that had sued. what they call it is an offer to , if you send in your gun, if

you want to, if it is one of these models, we will fix it or make sure it is working properly , or we will give you some money to buy a new one, or we will replace it. that is basically what you might want to call a recall, but it is not really a recall in essence, because no one is telling them they have to do it. they are only doing it because they got sued and lost. julia: the crux of this is who polices that? you have companies with lawsuits, 16 cases against it. which bureau or commission in the united states forces them to recall faulty weapons? michael: the simple answer is no government entity has the power or the right, if you will, he stowed upon them to force a gun maker -- bestowed upon them to force a gun maker to recall. carol: cars, food, teddy bears

are overseen by a government agency for safety concerns in this country, but nobody overseas guns? michael: that is correct, not even the atf. they do not either. they do not have the power. that is a result of an explicit effort by congress, supported by the gun lobby, if you will, to make it that way. julia: in the politics section, it seemed that it is been five months since record-breaking wildfires in california. carol: local and state officials seem set to repeat those mistakes that put homeowners at risk. 2000 five, california just had one of its most expensive wildfire seasons. lawmakers are saying, how are we going to pay for this? a policy analyst at the california legislator -- legislature wrote a report that was incredibly precedent. we have a situation where local

governments in these beautiful areas, pristine, edge of the forest areas are building homes and doing it in part because they know the california will step in and pay the cost of fighting fires that are almost inevitable. worldy this part of the works, it is an "mediterranean climate." they have fires all the time. the question is, who will pay for it? a policy makers said, change these policies or we will have much more expensive fires to come. fast-forward 13 years, and she was exactly right. california seems to be doubling down on the same policies that encourage building, perhaps with not much attention to the future risk of more wildfires. have got hisou local governments building houses in highly fire prone areas, rebuilding where we have seen fires, and you are saying

fast-forward several years and everything she predicted happened. talk about the costs we are now seeing, compared to what she was talking about. chris: the state of california just finished its most expensive fire season ever, in terms of state spending on wildfire fighting. they topped $700 billion in the first seven months of this fiscal year. the previous record was in the $600 billion range, and this year is not done yet. notes, there used to be seasons with wildfires and now it is almost constant. wanteal challenge, i don't to give the impression that local officials are making decisions recklessly, i think they are aware of the risk that if you read in the fire area, these homes could burn again. i think they are struggling with how to balance that future risk against the very real and current need for more housing, there is a housing shortage, and

you have people that were burned out and want their homes back. next, white fcc chairman ajit pai is not afraid of congress. plan to shutping's down virtual, private networks in china. julia: this is "bloomberg businessweek." ♪

julia: welcome back to "bloomberg businessweek." i am julia chatterley. carol: i am carol massar. you can also join us on radio. boston, 99.1 in washington, d.c. julia: and in london and asia. game changer is ajit pai. carol: he is the anti-regulation regulator at the federal

communications commission. >> he would not say he is against net neutrality. he is against rules placed during the democratic administration that will diminish company's role and put government on top of them. that consumers will have a better internet experience and competition will and sure the precept of net neutrality, no blocking, no -- clean flowing traffic. julia: the democrats will fight. he has a core base to battle on that front. he is systematically reversing president obama's decisions. what is the endgame? what is he trying to achieve? from what i can see in his biography, and i've had the chance to interview him and watch him, he sincerely believes , so far as we can tell, that a problem with the communication sector is government intrusion.

old ruse in place -- rules in place for decade need to be loosened, and the experience will be better for both companies and consumers. others say as he loosens those roles, companies will move to take advantage to consumers' detriment. now that the net neutrality battle is out of the fcc's hands , another contested arena is media lower ship -- ownership, where he is diminishing ownership, and sinclair broadcasting is looking to buy that broadcast to two thirds of the united states. the sec says our rules are being written for companies -- fcc -- carol: he was appointed by president obama and yet he is overturning the net neutrality role. tell us about his background. what makes him tick? todd: he is a small-town success

story. he grew up in parsons, kansas, made his way to harvard and university of chicago law, then became a federal judge and onto the justice department where he worked in the antitrust department. he did time on capitol hill dealing with competition and companies. then he did also some time at verizon communications is a lawyer before mr. obama selected him as a minority member of the fcc. the fcc has three seats in the in thent's party, two minority party, so it was a republican's open seat and mr. trump elevated him to chairman. carol: on the opposite side of deregulation. julia: virtual, private networks, a centerpiece of chinese president xi jinping's crackdown on internet freedom. carol: we talked to editor jeff

muska's. networkstual private which you have probably heard to privacyh relates related scandals in the u.s., are ways to disguise encryption to your electronic communications. although you can set up a vpn yourself, it is expensive and tough to do. most people typically do a six dollars, $12 a month to have another company route their electronic communications or internet traffic through another virtualized software created private server, generally created on a cloud network. carol: how is that different from other internet service providers? jeff: it is virtualized, which is to say the traffic is disguised as though it is coming from another source, or routed around the world so that when you are visiting your gmail

the traffic is disguised to look as though you are not visiting email at all and you are operating from somewhere other than the u.s. i could go in china, i could be using my gmail or trying to access my gmail, but someone outside looking at me, i may not be in china. i may not be looking at gmail. is that right? jeff: right. this is been away for the past decade that millions of people in china have been able to circumvent, to some degree, what is known as the great firewall, this level of surveillance and censorship. carol: how many vpn's are out there? jeff: there are thousands, but china is in the middle of an enormous internet crackdown that partly is blocking or outright banning hundreds of vpn's over the past year. julia: explain what fiber vpn

is, and at a time -- viper vpn, and how they have been able to survive. step trying to get one ahead, either by renting additional servers from amazon or other clients, when three years ago the chinese government engaged in the first effort, according to viper's president, to shut them down by finding their servers and blocking them. the solution is to rent more , and theto some degree other solution they have tried to hit on is to develop software in-house that can disguise traffic from their vpn servers as more legitimate chinese excepted traffic, or as though it is coming from channels the government has proved. julia: up next, what extending xi jinping's presidency means for china and the world. carol: how china is helping

ethiopia reinvent itself as a manufacturing mecca. julia: this is "bloomberg businessweek." ♪

julia: welcome back, i am julia chatterley. carol: i am carol massar. the deepening cult of xi in china. julia: check your labels for made in ethiopia. carol: dubai is headed up. julia: all of that on "bloomberg businessweek." ♪ julia: we are back with "bloomberg businessweek" editor john weber. plenty of must reads, but i want

to help in on the remarks section, and some moves we saw from the chinese president in his ongoing consolidation of power. john: what has happened is china has removed term limits for its president. basically, we have a president who is extremely powerful, has done some amazing things from a reforms dan point, and you will see him as the face of the company for potentially years. julia: xi jinping could be president for many years if this goes through. joel: a lifetime. julia: in terms of democracy and economic reforms, he has been trying to make changes. joel: it does not feel like democracy, but it does speak to a lot of the reform he has been able to pull off, and his consolidation of power will probably help him continue to do that. it provides stability.

that is a theme in global politics right now, strongman motif that becomes as democracy seems to have scaled back, we see a strong men enter. we have seen that in russia and china. julia: i believe he has visited russia more than any other country in the world. the aircraft and down on some of the big chinese corporate's. they also want to introduce that into the financial sector to a greater degree. what can we learn from the crackdown on anbang? joel: that anbang moment is interesting, because the company got way out over its skis and the state has stepped in and taken control of it. there is other conglomerates in china that all eyes are on them to see how the state reacts to them now. this is really a moment of that stability. , which is sort of

what the world sees in him and the chinese see in him, this is an example of how this is playing out. does this mean for the relationship with the president of the united states and u.s. administration? does it change the relationship with the united states, given the ongoing discussions, tensions? joel: the takeaway is that china has a much longer trajectory. ,hey think in centuries decades, centuries, millennia to some extent. in the u.s., we think in four-year election cycles. their trajectory is a much longer trajectory, which to some extent provides advantages. julia: do you think it buys xi jinping some latitude to negotiate on the economic front if he wants to give something away as far as some of the trade restrictions the president is complaining about? joel: the trade thing is a really interesting dynamic,

because this will not be something the trump administration, whether it is for years or eight years, will be riffing with. this is potentially longer term than that, so i think the chinese ability to get what they want out of this equation is stacked more in their favor. julia: china is also a very important theme in our asia cover story this week. that is where we are looking at ethiopia, what is going on there. joel: ethiopia has become a new version of what southeast asia looked like not so long ago, where the apparel industry opened up a bunch of factories. the cheapest apparel came from and all the world basically outsourced it apparel. becomeglow run has ethiopia. an industrial park that did not exist two years ago. it was farming.

chinese money poured in and built a ton of facilities, and that is where all of the world's cotton goods are coming from. it is changing is the opiate, and ethiopia might have a chance at a middle-class it might not -- ethiopia, and ethiopia might have a chance at a middle-class it might not otherwise. >> the government of ethiopia is making a concerted effort to industrialize the country. they have taken about 10 billion in loans from chinese central banks. carol: that is a lot of money. number wehat is the have until 2015, and that is a number that suggests it is only been increasing. companies have built a

parks forindustrial apparel, which our story focuses on. julia: let's go there, because it is fascinating. an industrial park, where exactly is it, and talk about the company you focus on? miranda: the industrial park is in central ethiopia, in what is actually the outskirts of a resort city. , and there is a little resort city nearby where ethiopians go to get away. like palmy, not beach. is subsistence farming. this industrial park was built on what was a series of small plots of land for farming.

carol: that must have ticked off the farmers. miranda: yeah. a lot of the farmers spoke about feeling tricked. because they were offered a certain amount of money and they signed contracts, but they did not actually -- they do not speak the main ethiopian language. there are 70 ethnic groups in ethiopia, and the farmers in --s region were largely sit, and they signed contracts not being able to read the writing. many of them have second grade educations. they are farming, they are not highly educated in academic institutions. they could not read the contracts. julia: up next, look to the

stars for the hunt on its next big thing. carol: the grand plan meets grand delays in paris. julia: this is "bloomberg businessweek." ♪

julia: welcome back to "bloomberg businessweek." i am julia chatterley. carol: i am carol massar. you can find us online at businessweek.com. .ulia: and on our mobile app as dubai comes of age, a key challenge is how to keep growing. carol: the key could be a trip to mars. linda: they have come to a crossroads and want to reclaim the status of being a city of first, so they will launch a probe to the red planet with the help of some u.s. universities. julia: you have students changing degree courses to focus

on spain. basically, what is going on, this is a part of the world which loves to draw these big, ambitious blueprints. carol: and big buildings. cristina: lavish spending of all sorts. dubai is basically looking at transforming itself into a sort of digital hub. it wants to run the city on blockchain, the same that underpins bitcoin. it wants to launch a fleet of driverless air taxis. julia: drone taxis. cristina: when you go to dubai at the airport, your uber is more likely to be a tesla than any other vehicle. they also want their police force to ride these hover bikes that will be in the air. julia: back to the future. carol: we are having fun, but

this is a place that has reinvented itself when many people thought it could not before. take us back. cristina: 50 years ago, it was a sleepy little port, very poor. it just started climbing to disguise. -- itstill the world still has the world's charges building. oil production pete around 1991 and has been declining, so they said, let's be a place that still attracts oil money from the region. the morals are looser. it is a place where literally the rest of the gulf goes to let its hair down. restaurants and nightclubs. carol: shopping. cristina: and many people have second homes there. something like 80% of the population is foreign. julia: how are they financing, and what risks mitigation efforts are they taking to not have the debt fuel that we saw?

cristina: they have not released any figures of how much this is going to cost. what we were able to find out is for example, they are doing a lot around the world expo 2020. this is the first country in the middle east to be able to hold this event. the budget for that is 6.5 billion. we do not know how much the mars program is costing, or some of the other initiatives, but we know this is a place that had a near-death experience with debt and needed a bailout from other emirates. section, the focus on emmanuel macron wants to leave his mark on the paris metro. julia: his grand plan has faced plenty of criticism. >> it is a massive plan to expand the paris metro system, which currently, mainly serves the city of paris itself. and pushed it way out into the

suburbs and almost double the number of kilometers. terms of vision, it sounds like a great thing to do. . the execution has been somewhat of a struggle. talk about the cost of execution. carol m.: the project has been talked about for quite a number of years, and it is only been the last few years when i have started to do the engineering and let the initial construction contract that the price tag has just started to balloon, and they are now talking about 35 billion euro construction costs, which is about twice what the estimates were just a few years ago, i think as recently as 2010. to put that in perspective, in today's dollars, that would be more than half of what it cost to tunnel under the english tunnel to build the chunnel. julia: that is a great

comparison to make at this stage. clearly, we have a problem with this project and they are having to prioritize perhaps where they go first, in terms of the transport links. talk about what they are prioritizing, because the president is getting pushed back and that he is favoring tourists rather than french men and women, and commuters. carol m.: the context of this is that paris is preparing in 2024 to host the olympic games, which is something the city has wanted to do for a long time. , and huge cost overruns just the difficulty of building some 200 kilometers of new track and dozens of new metro stations, has meant the initial timetable, which called for finishing everything pretty much by the time of the 2024 olympics, cannot be met.

so what they have done is prioritized and said they will 2024,primarily by projects that will go to the key olympic sites, but they are going to put off some other lines that would serve for example, a big research center that the government is trying to develop south of the city. on the other side of paris, there is a plan for a very large leisure development called europa city that would cost over 3 billion euros, and that line has been delayed. i think the underlying controversy in all this is that paris commuters have been waiting a very long time for this project, not so much the people living in paris. there is about 2.2 million people in the city. they have pretty good service.

if you have ever ridden the paris metro, you can get to a metro station and a couple minutes, no matter where you are in the city, and it is quite efficient. as soon as you get outside the city limits, that is where most of the population now lives. the metro area of paris is over 10 million. the service is much worse. julia: up next, a #kfc crisis in britain. carol: australians have cabo tourists catch them waves. julia: this is "bloomberg businessweek." ♪

carol: welcome back to "bloomberg businessweek." i am carol massar. julia: i am julia chatterley. you can listen to us on the york, 99.1380 in new

fm in washington, d.c., and am960 in the bay area. carol: in the business section, kfc restaurants had a major problem in the u.k. julia: some thought it was a real crisis. they ran out of chicken. carol: we got to the bottom of the problem. chris: ksc went through the better part of the week with a severe chicken shortage that caused them to close 600 out of 900 u.k. outlook test outlets. -- outlets. we had some people calling local police stations on advice for where to go for kfc. queues outside shops people

thought might open, and a crisis as brits wondered where their next bucket would come from. carol: it became #kfc crisis. what went wrong? i am going to try and hold back on the puns, because there are so many. julia: please, do not hold back. chris: you might say ultimately, and they were probably guilty of putting all their eggs in one basket. carol: nicely done. chris: they went from a more traditional distribution system for their chicken, which used a south african company, the world's largest food distributor outside the u.s., which ran five depots across the u.k. and then moved to just one mega-hub in central england, operated by dhl, who are more familiar as a parcel delivery firm rather than a food supplier.

in the very first week of operation, the system went into meltdown. ksc has not said exactly what went wrong, but the understanding was that there was a software glitch, as there is so often these days. dhl was twinned with another german company that provided the stop management, and suddenly they were getting chicken in but not getting it out again. there were problems of both oflorries snarled at day itot, and within a became apparent they were not going to be able to supply all of those 900 outlets, and they pulled the plug. at one point, two thirds of the system was closed down. julia: to what attempt -- extent was this attempt to centralize their system about cutting cost, by how was it exacerbated

the fact that we are dealing with fresh chickens and not frozen? chris: that is the crucial thing. if an office gets a dhl package a day late, it may be a problem, a major problem for one company. but if an entire business is unable to get chicken when that is what it sells, and the only thing it really sells, that obviously translates into something more serious for that customer. the chicken and the food service industry sort of revolves around getting a product from the farm through the processing plant to the kfc shop in a matter of days. in fact, kfc uses fresh chicken that is processed in a fairly rudimentary way and delivered fresh to the outlets. that is where it is dumped into the secret formula and fried off, on premises. no frozen chicken is used, so

they did not have anything stored away. because they only have this one huge hub, there was no fallback in terms of distribution. when the lorries stopped moving and the chicken was eaten, there was no way of getting it to those outlets. there is one in northern scotland and at the tip of cornwall. each of those are several hundred miles from this distribution center, so they became completely cut off. love: a story about both and australian style surfing. carol: both work well in cabo, sam lucas. here is chris rosner. chris: the heart of this story is surfing, and we sent a writer to cabo, san lucas to learn how to surf. there is a rigorous, 10 step course to learn how to surf. there are surfing classes all over the world, but not a lot of

curriculum and written roles, and this is one of the first systems. it is in nicaragua and is now in cabo. julia: i want to take into the surfing and how it went, but first we have to talk about the code message to make sure he did the deed. chris: our writer jim told his friend he had a ring in his backpack, and he told his friend, keep texting me, but you cannot say, did you ask her? say, catch anyways? the whole week, he was getting texts, catch any waves? julia: and he struggled. chris: he was really bad. julia: the teaching was good but he was rubbish. chris: the teaching was good. carol: there really is not a book you can pick up and learn how to surf. you just have to do it over and

over again. chris: you spend a lot of time paddling, and before you get in the water you have to do drills on the sand and learn to get up on the board, the hardest part. this guy who works out of a resort in cabo costs about $400 a day, and will get you to the place where you can jump up in one day. julia: this is a huge, growing industry. the size of this is pretty incredible. one million in 2017, and more and more luxury resorts are adding classes like this. they do not need amenities anymore, they want to get out and do something. carol: you can in a lesson get up on a board and feel pretty cool. i have done it. chris: that is what the writer said. he has a quote from some famous surfer, and the story says, what is your favorite wave? the next one. i am obsessed. carol: we said this was about

romance. did he popped the question? chris: she said yes. carol: "bloomberg businessweek" is on newsstands now. julia: and online and on our mobile app. matter wherete, no you stand, on the issue of gun control. carol: we have been talking about this story all week long, a gun maker, taurus, and their line that has been killing and wounding people, the gun going off by mistake. what is fascinating and eye-opening for me, we have government agencies overseeing asd, teddy bears, things simple as that, but not overseeing problems and flaws in guns. julia: you can recall all the simple products, but you cannot do it for guns in the united states. so many issues here, ridiculously in a week where we

have heard the president -- particularly in a week where we have heard the president talking about taking action. carol: an interesting overseas element as well. julia: more bloomberg television next. ♪

♪ david: what would you say are the greatest pleasures you have received? or what you are most proud of? >> ok. this is good. thank you. this is good. [laughter] david: well, i watch your interview shows. i know how to do some interviewing. >> i was really busy. i was into building this company. >> if all the diseases have been taken, why shouldn't i? i will take a tax. >> hello, general powell. this is ronald reagan. yes, sir. [laughter] >> and actually i think it was my husband who set the interview up, to be honest with you. david: did he get a finder's fee or anything from you? >> i am still paying that finders fee. >> no one plays a song when you walk into the room anymore. [laughter] >> laura didn't bring the coffee. [laughter]