♪ him >> welcome to this is "bloomberg: daybreak europe." welcome to "bloomberg businessweek." a future with robot taxies. a pioneering driverless startup. jason: and how best buy may be thriving. atwe will take a look president trump's trade policies.

>> we look at the applications of the policies around the world and here at home. and how lasting they might be. jason: we talked with taylor riggs. >> these changes are likely to winter for a couple of reasons. -- endure for a couple of reasons. flood of international commerce has to do with trust. it is not just the words that are in the trade treaties. the countries have open borders, and free trading is good from both sides. feel like the other party is trying to hurt you if trust goes away. damagecause a corrosive that can't be reversed easily. the era ofring

nationalism, which started before trump came into office. rolling a boulder downhill. it is quite easy to do. pushing that boulder back up the hill toward a more globalist world, much harder. taylor: we talk a lot about tailwinds and headwinds. when trump was elected, there was excitement about deregulation and tax reform. some of the headwinds were ignored, may be the trade policy. what do you hear about how big those headwinds really are in terms of having an impact on offsetting deep regulations or -- d regulations or tax reform? eter: there was an account to the senate recently.

the trump administration says, don't worry, we are going through a rough spot, but this will work out. -- but if you start to disrupt supply chains and harm some suppliers and customers, that can cause lasting damage to your reputation. this was interesting over the last few weeks. we have heard early skirmishes of a deal, and early preliminary ,eal between japan and the e.u. potentially more of a unilateral deal that removed tariffs. how does the circle back to other countries? and the u.s. is left behind were left out? -- or left out? peter: that is a good example of the long-term effects we are starting to talk about. of the. pulling out

transpacific partnership is one of trump's first acts in office. there is a door being left open if the u.s. wants to come back in, but that would be a long negotiating process. the european union and china are looking at deals. japan, the signing of the free trade deal. the u.s. has had a going ahead with free trade and the u.s. is being left in the trade station. taylor: where does the u.s. end? peter: the u.s. comes to a winningt with china -- " because china does have more to lose. doesnmean't -- doesn't mean it makes sense to try to push

china to the wall. china has a lot of ways to hurt the u.s.. when a national reputation is at stake, china is about saving face, facing down the imperialists, and they are not going to let the united states get off scott free. everybody loses in a trade war. your story mentions the disruption of world order, some of these bigger institutions that the u.s. and thought about pulling out, like the wto your e disruption of world. if the united states leaves and is not there as a solid leader, what does it mean for those institutions when the united states maybe one day moved -- won't be in those? peter: trump has been most critical of the wto, an outgrowth after world war ii -- it sought to knit countries back together. trump regards it as unfair to u.s. interests.

the u.s. is already taking action to block appointees to the appellate body of the wto, which handles violations of free trade by all countries. up, the does not let appellate body will buy next year not be able to do its work . that puts a lot of sand in the years -- gears. it would be reversed if a new president comes in or if trump , but it feelsnd as though it would not be a good development for the wto. carol: we're here with the story about how the trump trade

policies are having an impact globally. people were talking about this could be being rattling of the global network we're kind of ing of the unravel global network we are used to. jason: what else did you think? this is hard to illustrate. jason: we wanted this to feel new. this was a case where the idea of unraveling globalism is not new, but we wanted to tell you the story behind that. think of all the consequences. carol: up next -- what life ist, like for migrants expelled from the united states, and deported to guatemala. carol: and what trump cannot shake. jason: this is "bloomberg businessweek.". ♪ carol: welcome back to

"bloomberg businessweek." jason: you can find us online. carol: and our mobile app. what life isk at like for deportees returning to guatemala. migrants to ported from the united states often have little choice but to head north. >> it was a chaotic scene outside the air force base. smugglersloan sharks, ready to take them back to the border, family members, currency exchange. many of them are not from guatemala city. the first thing they think, where am i going to spend the night and where is my next meal going to come from? hadgentleman we talked to been separated from his grandson. they may be trip together and they were apprehended crossing the border in texas.

they were separated at that point. the trump order was still enforced, forced separation. he says, i want to find my grandson, i want to wait. >> how does that impact people and their decisions? has that changed anything for people trying to come to the u.s.? >> people were still wanting to try their luck. are not talking about people escaping regular economic hardship, they are escaping criminal gangs. we talked to a farmer that grows jalapenos. he says, i live by the machete. his whole family was being extorted to the tune of $300-$500 a month by criminal gangs. that is a lot of money. people like that are going to pay $3000 to a smuggler.

we are talking about $3000 with interest rates. we talked to one person that said, i am going to pay something like $12,000 back for my son. he went there to receive his son who had been deported. they are making considerable investments. taylor: how does the government step in and make changes so people can feel safe and keep the hard money they worked for? are there any signs they are making progress on that? >> that does not seem to be a priority. this country has had high-level officers in government accused of massive corruption in its successive administrations. this is something they are getting on, it is so huge. we have seen this stuff bubbling up again. these localies had

overlords that served the function of elected governments. in mexico, some of that stuff has come back. people feel like they are being extorted by the drug gangs. they have created their own systems of protection that have nothing to do with electing people to serve these roles. i don't know that guatemala alone, the government there can get a grip on this problem. carol: what happened in helsinki this past week? betweenhe summit president trump and president putin may not have turned up the way the white house wanted it. carol: especially since the press conference at that meeting may have actually helped robert mueller's investigation. >> the effects of this performance are far-reaching. they are ominous. it is hard to measure in the immediate sense.

one of the things we wanted to do in the story is layout all waysays -- lay out all the this puts pressure on roberts miller to shut this thing down. >> this was unbelievable to watch in the sense of how ferociously members of the president's own party on capitol hill and elsewhere came out condemning his approach, if you can call it that, to prune at putin atlicly -- least publicly. a lot of questions about what they said privately, there have been calls for subpoenas, even from the interpreters in the room. -- even for the interpreters in the room. >> it is not just from people who were critical of the president. even people like lamar alexander are saying, even more so, we

have to see this thing through. we wanted to look at this thing through the lens of rob rosenstein, who has become this political heat shield from the popular probe -- mueller probe. jeff sessions has accused himself, so rob rosenstein has been the public pace of this -- face of this. this is a guy no one knew about untold last may, -- until last may, when he was used as justification to fire james comey because he wrote that memo. this bolsters his stance able but. he had this very contentious back and forth with members of the house. get him torying to disclose as much information as try tould about the fbi, understand ways there might be bias in the fbi, and it is very strong to combat that.

this relieves a lot of pressure that has been on rob rosenstein, which is already a hard job, being second at the doj. >> what is the long-term impact on trump? do we move off of this pretty quickly? that we move off of it. the intention was to dispel any notion that president putin might have some sway over the president. i think it might have done the opposite, the body language, things that trump said that were not prepared were baffling. it reinforces in the minds of people who are already suspicious about this relationship there might be something there. the big question we try to tackle at the end of this is whether this starts to become a liability for the broader gop. democratses something

run on harder in november, and whether trump's core supporters start to pay more attention to this outside of the issues of trade and taxes and the economy. jason: so much about u.s. and russia relations this week. taylor riggs got a different way to illustrate what was going on in 22 countries. taylor: the bloomberg terminal tells an interesting story. we are talking about russia and the united states. yieldted in blue the u.s. curve and the russia yield curve in white. that is the difference between the ten-year yield and two-year yield. in blue, you have the u.s. yield curve. that has been flattening. the fed has been raising rates on the short-term because the economy is doing so well. yield. in the white, you have the russia yield curve. we spoke with our chief economist.

he says, this really has to do a lot with the trade tariffs and the weak credit profile of russia. divergence is the name of the game at a time when so many people are talking about convergence. up next, the lonely death industry. the little-known ceo in charge of the future of hewlett-packard enterprises. ♪

jason: welcome back to "bloomberg businessweek." i am jason kelly. carol: i am carol massar. you can listen to us on sirius satellite radio and in boston, washington, dc, and in the bay area. jason: and in london. in the future section, we take a demographic problem

in japan. the population is getting older and shrinking. carol: there are increasing demands for the services that clean out and dispose of the property the elderly leave behind. japan has had seven consecutive years of population decline. created as it has this whole industry -- is this whole industry of people who come and clean up the homes and find new homes for those goods. that is behind this from a japanese perspective? jillian: one of the things we cover is this japanese concept that is basically about the idea that things have a life beyond the life you have with them. things are reused. that is something in the post-world war ii economic boom seems to have been forgotten in

a lot of the culture. thegs like the collapse of 1990's, the big earthquake and tsunami, brought that back for a lot of people. >> so many passages in this story stood out. one says, what is left in the world's oldest societies, millions of junk filled homes and few heirs. the aging of our parents, grandparents, we are help them to go through there a stator homes. a lot of japanese don't have that. >> the person we profile in this story, a clean-out professional, she was not quite in that scenario, but she said she felt she could not count on her family to clean out her mother's effects. she said, wouldn't it be great

to have someone who could do this for me? she was having this idea in the midst of this long flight of population decline. she started this business, and it has really grown. jason: a lot of this is about essentially being there for people when they have no one else. jillian: there is a lot of competition at this point. one criteria is how empathetic you can be with the people who have lost someone. >> what kind of training is there in order for someone to do this? jillian: you have to have a license to deal with used goods, but other than that, not much. the person we profiled said she has had training to deal with remains. she does not remove bodies, but has to deal with whatever is left behind. have aght codify, licensing program starting up,

but for now, the barriers to entry are low. >> where does this stuff go? : japan has high fees for trash disposal. a lot of these things are abused or resold in japan, or shipped -- reused or resold in japan, or shipped to other countries in southeast asia. as long as it was used in japan, someone will want it. we have a profile of hewlett-packard enterprises in the technology section this week. jason: the new ceo is something of a celebrity. company,t outside the the ceo is facing mounting competition. the ceo has been with the company for 23 years and got his first job out of a call center. he got to that decision x month

ago. within the company, a reporter went there, he heard about his world poorer to various hp offices around the world. people were waiting in line in 100 degree heat to take photos of him, which is kind of unheard-of. the bigger problem for hpe, the world is getting more cloud computing centric than ever. they are trying to catch up. carol: hewlett-packard was split off from hpq, associated with the printers. this is hewlett-packard enterprises. in 2015, the best parts of the company were hard -- carved up, hardware, networking equipment,'s servers. and servers were spawned

out into the wilderness. they are doing pretty well. the rest has been spun out into the wild. carol: google and microsoft are competing in the cloud. what is hp's strategy? >> a combination of services and the hyper-cloud. -- hybrid-cloud. there could be certain features for particular customers. suited than the standard public cloud. the results are betting big on stuff that does not exist yet. form of a new memory-driven computing, based on new kinds of resistors that

hp has been trying to develop four years -- for years. ideather big piece is this form that if you gather data from sensors and cameras and stuff in the internet of things, and analyze it closer to the point of origin, that will speed up your analysis time and cut out black. -- out lag. \ jason: what do investors make of the so far? -- this so far? >> they have been skeptical of the long-term plan. the ceo is trying not to think about what analysts are worried about quarter to quarter, but he recognizes that he has to make money in the long term, even if he is less worried. carol: how best buy is holding

off amazon. jason: and how to build a million-dollar porch. carol: this is "bloomberg businessweek.". this isn't just any moving day.

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businessweek." -- welcome back to "bloomberg businessweek." we have a startup ceo who is crowdsourcing product design. carol: this is a retailer you thought amazon would have crushed by now. the new ceo is going into

homes and bringing more people into the store. carol: he has a fan in amazon's jeff bezos. >> best buy is one of those big-box retailers of electronics, squarely in amazon's range. week"st story "business wrote about them was in 2012. position, not bad only amazon, but they had a lot of inner turmoil in the executive ranks. enter this outsider who comes in to run this and has taken the company and maybe even the industry by storm a bit. >> now they are going to the home of the customer. carol: talk to us about that. made the story interesting for us to do now. best buy spent the first five years, let's fix up the store and the website.

kind of consultant , says we have a pretty well-trained staff now. we need to go to the next place customers are, their homes. best buy is not the only one doing this. starting with the devices in your homes, all of those are there already. it is like, let's get people in the homes. they have in-home advisors. they started testing in 2016. they rolled it out nationally in september. it is still small, with 300-something people. jason: amazon is still hanging out there. keeppproach seems to be, your friends close, your enemies that much closer. how does that work? say, even ifes to you look at all the sales amazon

gets, and everything best buy gets, it is still only a quarter of all consumer spending on electronics. why does everyone think we have to be competing with one another? it is not a zero-some game. zero-sum game. joliet feels, let's work with we cane when and where add to showcase the technology in stores. in-home is different. they started to make a few little arrangements, so if you call out to alexa and say, alexa, give me the best buy deals of the day, or something, then you will get them, and only if you have the echo. they are trying to do exclusive things. they came to talk to us in march.

we were like, how is the relationship with amazon? you will not get me to say a bad thing about amazon. i was like, that is our job. [laughter] he andn weeks later, jeff bezos are having a press conference to announce a joint venture to sell tv's in this exclusive arrangement/ jeff doesn't badmouth him, either. susan: he was very competently. jason: we heard about this big best buy story. why now? >> is the perfect time. amazon is this massive juggernaut taking down everyone. retail has felt the pain. indy five years since this new -- in theo best buy,

five years since this new ceo came to best buy, they have found their way. buy workingbest with amazon. >> that is part of the magic. they can writeed space in their stores to companies like google and apple. -- rent space in their stores to companies like google and apple. they can also come to your home and solve your tech problems. jason: the balance between technology and people is interesting amid the backdrop of the recent apocalypse. >> the big story is the future of retail. you have to be the aggressor. to heare're all trying exactly what the future of self driving cars are going to be like. one company is looking at doing it differently. >> what i like about ashley

vance, who will always create stories like, where did this come from? at $3.2 billion. they said, we have this idea about what a car should look like. what if we start over? they built this thing that looks more like a thing than a car. the vision they are creating is radical. you god very well be backwards at 75 miles per hour. ride and go out for a seemed impressive. >> they are one of the few companies letting people into the car. he did in multiple situations. >> wield your more about this from ashlee vance in the next blacock. carol: how trade competitions ark, locating hollywood's

relationship with beijing. jason: this is "bloomberg businessweek.". ♪

jason: welcome back. carol: you can find us online at businessweek.com. jason: and our mobile app. this was the year u.s. studios will make it big in china -- would make it big in china. carol: three policies changed all that. to our reporters. >> there was the expectation that by this year, with the chinese market restricting the number of movies that could be imported, there was the expectation that would loosen up, and more hollywood films would be able to be getting

chinese businesses and hollywood could be getting a cut from the movies played there. but this has not worked with chinese tensions over trade and we are positioned in the chinese government and how the film industry is over there. there has been a slowdown on any improvements happening for u.s. studios. carol: i want to bring -- jason: i want to bring in an expert in this area. we find an interesting moment historically and economically between these two superpowers. what you make of it? >> this is the worst that i have in the 18 years between the two countries. it is not only negative rhetoric from politicians and our executive branch, but there is

actual implementation of policies that are changing the dynamics of trade between the two countries. carol: is it about chinese policies restricting hollywood and u.s. studios from distributing content in china? chinese and consumer demand -- they want more domestically made content. that is what they like to watch. back into the 1800s with the united states, we were implementing similar policies toward the european countries. we wanted to get our own infrastructure and industries up to speed and catch up with the rest of the world. china is doing the same thing. with 1.4 billion people there, the bureau, the standing committee, president xi would love to have a completely self-sufficient economy that did not need the outside world to work. we are facing a challenge where

china wants to get up to world-class speed in all industries. is tof doing that implement things that are favorable to the industries locally there. to yourou have talked sources in hollywood, especially at the studios. how worried are they about this? motion picture film stock could be subject to that tariff. the economic impact of that might be quite small. chinese imports moving into the united states are pretty small. more the intention of the u.s. government, and how china might react. it is creating uncertainty and potential tension, where u.s. studios wanted the opposite. they have been cultivating closer relationships with

chinese media companies and the chinese government, learning how to better cater to those audiences. carol: in the futures section, carhave a story about a company making a name for itself. jason: zoox is building a car from the ground up. carol: taylor riggs talked to reporter ashlee vance. as>> they have a different pitc. instead of taking existing cars and putting sensors onto those, they want to build a robot from the ground up that is purpose-built to be a self driving vehicle. for aboutbeen around four been years and has been super secretive. for years and been super secretive and this was the first time we had any look at this company.

taylor: is that what has made this story standout? you describe the vehicle as too many coopers merging together. mini-coopers merging together. ashlee: it is difficult from any vehicle. wheel, theteering car makes all these strange noises. it has speakers on the outside to talk to pedestrians and say, i see you, or to talk to a driver who might be coming in t o crash. will have your picture on the window and greet you if you do a rideshare. there are all these pieces built into this car to make it part of the self-driving age. the goal is to operate a robot

taxi service. ylor: i wonder how receptive customers would be to that. i wonder if they would see it on the street and it looks a little weird. the company has to have assurances that customers will be receptive to it. we just broke the news and raisedry that zoox has $500 billion. it as to about $300 million -- adds to about $300 million. they have a pretty interesting team. the ceo is actually a designer from australia. he was in the advertising business and was a superstar. he came to silicon valley and found his cofounder, who was one of the biggest deals on stanford's self driving car team that won a bunch of

competitions. teslaoached people from and amazon and apple and for ari and put together a good team -- ferrari and put together a good team. we will have to see if consumers go for this vehicle. theyr: how confident are they can do something different than what others have been able to do, and maybe be safety concerns -- the safety concerns as well? on what isent probably the longest drive any reporter has taken in one of these cars. we went from the suburbs, onto the freeway, made lane changes, drove all the way to san francisco, did dense urban driving. i was in the car for about 90 minutes. we made several merges onto the freeway. truck that pulled

right in front of us really abruptly. the car never disengaged once over those 90 minutes. it did interesting things. at stop lights, it was very , ande about how it turns can make these left-handed turns, a big challenge with a self driving cars that have to wait for oncoming traffic. i have been in other cars where you are on the freeway, you feel like you are hunting the lane quite precariously. this was much smoother. as far as the actual self if theytechnology goes, are not at the head of the pack, they are very close. carol: where does the porschef family go? jason: and an innovative business model. carol: this is "bloomberg businessweek.".

carol: welcome back to "bloomberg businessweek." i am carol massar. jason: i am jason kelly. on the listen to us radio. carol: and in london. we have the game changer this week. jason: he has managed to turn passionate fan bases into product designers. this is a new type of online community for enthusiasts, people that are really knowledgeable and passionate about their interests, or hobbies. what we built for these people is a way for them to connect with each other, by what they

care about and work together to make new things. >> you have a few million users at this point. it is also getting noticed by brands, correct? >> that is right. they are knowledgeable about products, what makes them good, how they are made. can give brands feedback on the things they like about their products, but also to make them better and improve them. jason: how does it work? we have the largest community of headphone enthusiasts on the internet. 3 million people are part of that community. we ended up partnering with a expect, one ofly the largest headphone makers in the world, sennheisers.

we incorporated feedback from experts in the community, comments, and worked wtiith sennheiser to make improvements on one of their most popular headphones. we launched them on massdrop to huge success. we sold out in the first five minutes. overall, the reviews were fantastic. carol: how do you make money? steve: by taking a percentage of sales from the brands we worked with and it ended up being our revenue model. what is one of the more unusual enthusiast groups you have been able to form on this platform? : there is a community of people that are really passionate about their computer programmers,mers, they modify and upgrade them to make them more beautiful and comfortable. massdrop -- this

massdrop community is over 2000 people. carol: this is not just about taking groups and sharing information with an existing brand. you are making products, right? steve: we started partnering with individual members of the community. users we see that are really particularly and insightful in terms of what products should be made. we provide those users full access to our manufacturing infrastructure. we take ideas and designs and partner with them and work with individuals in the community to make new products. we have about 200 factories around the world and have made dozens of products with dozens of users. >> tell me what kind of products you are making. steve: headphones, computer

parts, camping equipment, denim jeans, dress shoes. we are launching a line of watches later this year. get driven byill these enthusiast communities. jason: a seven-figure porsche. car collectorsp go for restoration and a claim. >> it is this great family run the shop and durham, north carolina, that restores the million-dollar porsches of the world. jason: are they just known by the people who need to know these things? >> the right people know about them. i heard from my best source. these people are the ones you want to talk to if you have a serious car that could win pebble beach or you might want to sell for a million dollars. jason: educate us about pebble beach. >> this is the world's most

procedures car show. it is the end of monterey car week. ferrarisf $20 million and cars owned high church. the best cars in the world go to pebble beach. to win, you have to be the best in your class. that doesn't mean necessarily perfect, it means the truest to the era the car first came from. jason: i love that detail. that is difficult. you have to source different material and constructed in a different way. you are actually building up the way it was originally built. hannah: rose colors used holarsrushes -- road sc used paintbrushes made from horse hair like the type used to paint the cars after the war in europe.

it means making the belt imperfect so it matches up exactly. carol: tell us about the porsche family. >> two members approached road and said, we011 have this special car and we would like you to restore it. that family has access to anyone, so it is highly irregular they would contact this north carolina company. it speaks to how well this company is respected and the work they do. restoring thishs car. it is a stressful thing. they brought it to pebble beach. the family members haven't seen it. you show them the car, they are walking restoring this around, there is no expression. at the end they said, better than we could have done. that changed everything. carol: it helped them really

take off. main figurehead for the business said, after that, business more than doubled. he called it a marriage to the business. it is all-consuming. bloomberg businessweek is available on newsstands. jason: and on businessweek.com and our mobile app. carol: we were talking about president trump and president putin's summit. so much controversy. story, taking a look at president trump's trade policies and the lasting impact of those in the u.s. and globally. took some author angles that are not as obvious and introduced a lot of complexity still to come. buy -- a story that a lot of people did not anticipate. this world of amazon, the new

ceo bringing people into stores, but sending people into full's homes. -- folk's homes. or bloomberg tv starts now. ♪ emily: i'm emily chang and this

is "the best of bloomberg technology." coming up, our exclusive interview with president trump's campaign manager, also known as the secret weapon who ran 5.9 billion eight look at in 2016. amidst swirling concerns of russian meddling. plus, google slapped with a $5 billion fine. by eu antitrust enforcers.