carol: welcome to "bloomberg businessweek." i'm carol massar. jason: and i am jason kelly. carol: coming up in this week's issue, a future with robot taxies. we will introduce you to a pioneering driverless startup. jason: and how best buy is surviving and may be driving in an amazon world. carol: first, we start with a cover story. we will take a look at president trump's trade policies. jason: we look at the applications of the policies around the world and here at home. carol: and the destruction of

the trade policies and how lasting they might be. jason: we talked with taylor riggs. peter: he is making changes that are likely to endure for a couple of reasons. one is, a lot of international commerce has to do with trust. it is not just the words that are in the trade treaties. or the phrasing in the wto. it is the sense that countries have that open borders, and free trading is good from both sides. if that trust goes away, you feel like the other party is trying to hurt you, and it can cause a corrosive damage that is not reversed easily. and then you have the fact we are entering the era of nationalism, which started before trump came into office. we see it in brexit, for example, the italian elections, all around the world. trump is 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: it is interesting you use that because 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 businesses that could offset the deregulations of tax reform? peter: it was testified to senate recently that he keeps eating told by people in the trump administration, do not

worry, we are going through a rough spot, but this will work out for the best, but he isn't sure about that. he says if you start to disrupt supply chains and harm some suppliers and customers, that can cause lasting damage to your reputation. for reliability. taylor: in terms of second-order effect, we have heard early skirmishes of the deal, and early -- an early preliminary deal between japan and the e.u., potentially more of a unilateral deal that removed tariffs. the u.s. is not involved in that. how does the circle back to other countries now doing deals, and the u.s. is left behind or left out? peter: that is a good example of the long-term effects we are starting to talk about. the u.s. pulled out of the transpacific partnership is one of trump's first acts in office. it is down to 11 countries now,

not including the biggest of all, the united states. 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. the eu and japan signing a free trade deal, so the rest of the world is going ahead with free trade, and the u.s. is being left in the train station. taylor: where does the u.s. end? peter: mohamed el-erian has been arguing to me and others that the u.s. comes to a head-to-head conflict with china and "wins" because china does have more to lose, but el-erian is the first to say that 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 national reputation is at stake, china is concerned 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. taylor: your story mentions the disruption of world order, some of these bigger institutions that the u.s. may be thought about pulling out, like the wto. the imf. the world bank. if the u.s. leaves and is not there as a solid leader, what does it mean for those institutions in the u.s. may be one day will not be in those? peter: trump has been most critical of the wto, an outgrowth after world war ii --seeking 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. if trump does not let up, the appellate body will by next year not be able to do its work. that really puts a lot of sand in the gears. it would be reversed if a new president comes in or if trump changes his mind, but it feels as though it would not be a good development for the wto to have something like that happen. carol: we are here with the creative director and your task was to create the cover story on the trump trade policies and the impacts they are having globally. >> people were talking about

this could be being rattling of the global network we're kind of used to -- unraveling of the global network we are used to. jason: what else did you think? this is a hard concept to illustrate. >> the big challenge was 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 with language, so image pulls you in and the languages like, you know, think of all the consequences. jason: that next, loan sharks and gangsters. what life is 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." i'm carol massar. jason: and i am jason kelly. you can find us online at bloombergbusinessweek.com. carol: and our mobile app. jason: we look at what life is like for deportees returning to guatemala. carol: the migrants deported from the united states often have little choice but to head north. >> it was a chaotic scene outside the air force base. they are facing loan sharks, smugglers ready to take them back to the border, family members, currency exchange. many of them are not from guatemala city. the first thing they face is, where am i going to spend the night and where is my next meal going to come from? one gentleman we talked to had 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. 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.? >> it wasn't really making a difference. people were still wanting to try their luck. we are not talking about people escaping regular economic hardship, they are escaping criminal gangs. the men we talked to is a farmer that grows jalapenos. he says, i live by the machete. he was being extorted. 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 was there to receive his son who had been deported. they are making considerable investments. taylor: how does that change? how does the government step in and make changes so people can feel safe and keep the hard money they worked for? because that inevitably would solve part of the problem. are there any signs they are making progress on that? cristina: that does not seem to be a priority. honestly. this country has had high-level officers in government accused of massive corruption in its successive administrations. i don't think this is something they can get a grip on. it is so huge. in mexico, we have seen this stuff bubbling up again. these countries have these caciques, these local 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: in the politics section, what happened in helsinki this past week? jason: the summit between president trump and president putin may not have turned out 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 almost too large to measure in the median sense, but one of the concrete ones and what we wanted to do with the story is to lay out the waste

this reduces the political pressure on rod rosenstein and robert mueller to shut this thing down. jason: politically, 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 putin, at least publicly. a lot of questions about what they said privately, there have been calls for investigations and subpoenas, even from the translators in the room. >> it is unquestionable. it is not just a classic republicans like john mccain who have been critical of the president but also people at paul ryan and lamar alexander saying, even more so, we have to see this thing through.

we wanted to look at this thing through the lens of rod rosenstein, who has become this political heat shield from the mueller probe. as sessions has recused himself, that puts rosenstein as the number two at the doj in control of this. he has been the public face of this and taken a lot of key to. this is a guy no one knew about until last may, when he was used as justification to fire james comey because he wrote that memo. this also shows that he has bolstered his stance a little bit. he had this very contentious back and forth with members of the house. they were trying to get him to disclose as much information as they can about the fbi, they are trying to understand ways there might be bias in the fbi, and he has been strong to combat that. this relieves a lot of pressure

that has been on rosenstein, which is already hard job being number two at doj. carol: this is an individual can change the conversation quickly with a tweet, so do we move off of this quickly? >> i don't know if we move off of it. the intent of this was to dispel any notion that president putin might have some sway over the president. i don't see how this does any of that. it almost does the opposite. just the optics, the body language, some of the things that trump said that were not prepared were baffling. it reinforces in the minds of people who are already suspicious about this relationship that 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. this becomes something democrats start to 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. we are back with taylor riggs, who has got a different way to illustrate what was going on in the two countries. taylor: i used the bloomberg terminal to create this chart that tells an interesting story. we are talking about russia and the united states. i charted in blue the u.s. yield curve and in whites, the russia yield curve. that is the difference between the ten-year yield and two-year yield. interesting story. in blue, you have the u.s. yield curve. that has been flattening as the fed has been raising rates on the short-term because the economy is doing so well. in the white, you have the russia yield curve. which is coming up to about 124 basis points. we spoke with our chief economist and says this really

has to do a lot with the trade tariffs and the weak credit and economy of russia. we have seen the divergence that has gone into effect since june. jason: divergence is the name of the game at a time when so many people are talking about convergence. really great charts, thanks. up next, japan's lonely death industry. carol: and the little-known ceo in charge of the future of hewlett-packard enterprises. jason: this is "bloomberg businessweek." ♪

jason: welcome back to "bloomberg businessweek." i am jason kelly. carol: i am carol massar. you can listen to us on sirius xm channel 119 and a.m.1130 in new york, in boston, washington, d c, and in the bay area. jason: and in london. in the future section, we take a look at the demographic problem in japan. the population is getting older and shrinking.

carol: as a result, there is increasing demand for the services that clean out and dispose of the property the elderly leave behind. jason: it is an amazingly big business. here is jillian goodman. jillian: japan has had seven consecutive years of population decline. it creates problems in a lot of ways, but it has created a problem that has the sole industry, it is this whole industry of people who come and clean out the homes and find new homes for those goods. jason: what is it that is behind this from a japanese perspective? in terms of history, i guess. jillian: one of the things we cover in the story 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. and put two new uses. that is something in the post-world war ii economic boom seems to have been forgotten in a lot of the culture.

it is things like the collapse of the 1990's, the big earthquake and tsunami, brought that back for a lot of people. carol: there were so many passages in this story stood out. one says, what is left in the -- left is one of the world's oldest societies, millions of junk filled homes and few heirs. that is what is sad. you have an aging society. when we think of the aging of our parents, grandparents, we are there to help them go through their estates or homes, but a lot of japanese don't have that. jillian: yes, and the person we profile in this story, a clean-out professional, she was not quite in that scenario. obviously, she was a child, but when her mother died, she felt she could not count on her family to clean out her mother's effects. she thought, wouldn't it be great to have someone who could do this for me? she was having this idea in the middle of this long flight of -- long slide of population

decline. since she started the business, it has really grown. jason: a lot of this isn't about the moving of physical stuff but essentially being there for people when they have no one else. jillian: there is a lot of competition at this point. a lot of these jobs are won on how empathetic you can be with the people who have lost someone. what kind of vibe you have with that person. carol: what kind of training is there in order for someone to do this? is there any kind of training or licensing? jillian: you have to have a license to deal in 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. other than that, there isn't much. they might codify, have a licensing program starting up,

but for now, the barriers to entry are low. carol: where does this stuff go? jillian: japan has high fees for trash disposal. which makes sense for a country with a small land area. a lot of these things are reused or resold in japan, or shipped to other countries in southeast asia. japanese goods have long enjoyed a reputation for high quality, which we seeing the story has now rubbed off on used things in japan. it doesn't matter if it was made there, as long as it was used in japan, someone will want it. carol: we have a profile of hewlett-packard enterprises in the technology section this week. jason: and inside each pe, the new ceo is something of a celebrity. carol: but outside the company, the ceo is facing mounting competition. >> the ceo has been with the company for 23 years and got his first job out of school in a call center. he has risen to the top spot, seceding meg whitman six months ago. within the company, reportedly a beloved figure, a reporter went there and heard about parts of

the world tour to various hpe offices around the world, and people were waiting in line in 100 degree heat to take photos of him, which is kind of unheard-of. even in the world of trying to impress your boss. the bigger problem for hpe, the outside of the company, where the world is getting more cloud computing centric than ever. they are trying to catch up. carol: hewlett-packard was split off from hpq, the printers, and phones, and this is hpe, hewlett-packard enterprises. which he runs. >> in 2015, the best parts of the company were the consulting businesses, the enterprise, hardware, networking equipment, and left the pcs in the wilderness.

ironically, that division is doing well, comparably well with hpe earnings wise at this point and hpe hasn't struggled a bit to prove it is keeping up with times. carol: meantime, you have microsoft, google, and amazon competing in the cloud, where they're trying to go. what is their strategy? >> it revolves around the combination of services and hybrid-cloud. this idea that if there services better weather with security grounds or certain features, is better suited to a person's needs than the standard public cloud, or the old lying mainframes and servers. then, that would be an advantage for them. the results are betting big on stuff that does not exist yet. number one, this is sort of a new form of of memory-driven computing, based on new kinds of resistors that hp has been trying to develop for five years

that we know about. the other big piece is this idea of the intelligent ads, the idea 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 out lag. and that will be more efficient for people. jason: what do investors make of this guy so far? >> they have been skeptical of the long-term plan. part of that is after a couple of good quarters sales wise, he said they expected a disappointing second half. what the ceo said is he 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. -- less worried about the peanut gallery. carol: how best buy is holding off amazon. jason: and how to build a million-dollar porsche. carol: this is "bloomberg

businessweek." ♪

jason: welcome back to "bloomberg businessweek." i am jason kelly. carol: i am carol massar. coming up on this week's issue, a startup worth millions of dollars. jason: and we have a startup ceo who is crowdsourcing product design. carol: this is a retailer you thought amazon would have crushed by now. jason: the new ceo is going into homes and bringing more people into the store. carol: that new ceo has a fan in amazon's jeff bezos.

>> best buy is one of those big-box retailers of electronics, squarely in amazon's range. the last story "businessweek" wrote about them was in 2012. they were in a bad position, not only amazon, but they had a lot of inner turmoil in the executive ranks. jason: enter this outsider who comes in to run this and has taken the company and maybe even the industry by storm a bit. susan: the next step they have done is now they are going to the home of the customer. carol: talk to us about that. susan: that is what made the story interesting for us to do now. best buy spent the first five years like, let's fix up the store and the website. now, joliet, the 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. in the same way, it is like let's get people in the homes. they have a program called in-home advisors. they started testing in 2016. in september, they rolled it out nationally. it is still small, with 300-something people. jason: amazon is still hanging out there. and his approach seems to be, keep your friends close, your enemies that much closer. you have them in a little hug here. how does that work? susan: joliet likes to say, even if 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-sum game. if you ever talk to him, that is what he will say. it is not a zero-sum game. joliet feels, let's work with amazon when and where we can, let's work with everyone when and where we can to showcase technology in the stores. in-home is different. i noticed they have 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. he came in to talk to us in march. we were like, how is the

relationship with amazon? he said to us, you will not get me to say a bad thing about amazon. i was like, that is our job. [laughter] five weeks later, he and jeff bezos are having a press conference to announce a joint venture to sell tv's in this fire television in it, and it is an exclusive arrangement. carol: jeff doesn't badmouth him, either. susan: he was very competently. -- no, he was very complimentary. very. jason: we heard about this big best buy story. why now? >> it is the perfect time to do it on the heels of prime day. that is what i love this story so much. amazon is this massive juggernaut taking down everyone. anybody in retail, especially brick-and-mortar, has felt the pain. yet, in the five years since this new ceo came to best buy, stocks have three folds and they have found their way. it is a story of how companies can learn, innovate, and disrupt

themselves in the age with amazon. carol: it is fascinating now that you have them working with amazon. >> that is part of the magic. best buy realized they can rent space in their stores to companies like amazon, google, and apple. that is one of the reasons for success. the other big one being that they will come to your home and solve your tech problems. jason: the balance between technology and people is interesting amid the backdrop of the retail apocalypse. >> the bigger story is what does the future of retail look like? it is one where you cannot be cap defensive back and you have to be the aggressor. carol: the are trying to figure out what the future of self driving cars are going to be like. and we have the story this week

that would suck a new company looking at doing it differently. >> what i like about this story by ashley vance, who will always create stories like, where did this come from? zoosk is valued 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. yet, the vision of what they are creating is radical. it could very well be you go backwards at 75 miles per hour. carol: ashley did go out for a ride and was impressed. >> the magic of this is it is on the roads. they are one of the few companies letting people into the car. not everyone gets to do this. he did it in multiple situations. carol: we will hear more about it in the next block. coming to a big screen you are you are not -- near you or not, how hollywood is complicating relationships with aging. jason: this is "bloomberg businessweek." ♪ jason: welcome back to

"bloomberg businessweek." i am jason kelly. carol: i am carol massar. you can find us online at bloomberg businessweek.com. jason: and our mobile app. this was the year u.s. studios would make it big in china. carol: three policies changed all that. jason: we put together a roundtable with our reporters. here's what they have to say. >> there was the expectation that by this year, the chinese market, at the moment which restricts the number of movies that can be imported, there was the expectation that would loosen up, and more hollywood films would be able to be in chinese theaters and they would get a cut from the movies played there.

for various reasons, including the chinese and u.s. tensions over trade and the organizations within the chinese government and how so mistreated over there, has put a slowdown on any improvements happening for u.s. deals. jason: i want to bring in an expert in the area, a trustee with the u.s.-asia institute. we find ourselves in an interesting moment historically and economically between these two superpowers. what you make of it? >> this is really on a macro level, the worst i have seen in the 18 years i have worked between the two countries because not only is it negative rhetoric from politicians and potential candidates for elected official jobs and our executive branch, but there is actual real implementation of policies that are changing the dynamics of trade between the two countries.

carol: is it about chinese policies restricting hollywood studios, u.s. studios from distributing content in china? or is it also chinese consumer demand? they want more domestically made content. that is what they like to watch. >> let's face it. if you go back into the 1800s with the u.s., we were implementing similar policies toward the european countries. because 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. i feel like 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.

part of doing that is to implement things that are favorable to the industries locally in the china market. jason: you have talked to your sources in hollywood, especially at the studios. how worried are they about this? >> it did emerge that recently that for motion picture film stock, it could be subject to tariffs. the economic impact of that might be quite small. chinese imports of movies into the u.s. a pretty small, but it is more the intention of the u.s. government, and how china might react. it is creating an uncertainty and potential tension, where u.s. studios wanted the opposite. for years, 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, we have a story about another driverless car company making a name for itself as a maverick in the field. jason: zoosk is building a car from the ground up. carol: taylor riggs talked to reporter ashlee vance. >> they have a different pitch. 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. they have been around for about four 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 company standout? in your story, you describe

almost two mini-coopers merging together. that is what it looks like. ashlee: it is difficult from any vehicle people are used to. from day one, it will have no steering wheel, and has a deal of almost a london taxicab, and the 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 to crash with the car and say, you need to slow down. on the windows, it has a communication system, so unlike when you get into an uber or lyft, and they say, is this your name? it will have a picture on the window to greet you, so it has all these pieces built into this car to make it part of the self-driving age. the whole goal is not to sell them to consumers but operate a

robot taxi service. taylor: i wonder how receptive customers would be to that. i wonder if they would see it on the street and think it looks a little weird. the company has to have assurances that customers will be receptive to it. >> this is a huge gamble. we just broke the news and the story that zoox has raised $500 billion. it adds to about $300 million. there is reason to believe they might pull this off. 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. you have these very good minds. they poached people from tesla and amazon and apple and ferrari

and put together a good team. we will have to see if consumers go for this vehicle. taylor: how confident are they they can do something different than what others have been able -- what others have not been able to do, and maybe safety concerns as well? ashlee: i went on what is probably the longest drive any reporter has taken in one of these cars. we started in the heart of silicon valley, took the car to the suburbs, on to the freeway, made lane changes, drove all the way to san francisco, did dense hardest part of the task, which is the urban driving. i was in the car for about 90 minutes. we made several merges onto the freeway. we dodged a truck that pulled

right in front of us really abruptly. the car never disengaged once over those 90 minutes. it did interesting things. like at stop lights, it was very polite about how it took turns with other drivers, and it could make these left-handed turns, a big challenge with a self driving cars that have to wait for oncoming traffic. and that for pedestrians over to the side. it did those pretty flawlessly. i have been in other cars where you are on the freeway, you feel like you are hugging the lane quite precariously. this was much smoother. as far as the actual self driving technology goes, if they are not at the head of the pack, they are very close. carol: next, speaking of cars, where does the porsche family go to get theirs restored? 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. you can listen to us on the radio on sirius xm channel 119, and a.m. 1130 in new york, one of 6.1 in boston, and a.m. 960 in the bay area. carol: and in london on dab mux 3. we have the game changer this week. jason: he has managed to turn passionate fan bases into product designers. >> mousetrap is a new type -- mousedrop 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. carol: you have a few million users at this point. they are doing discussions and polls, and it is also getting noticed by brands, correct? steve: that is right. within the enthusiasts, they are knowledgeable about products, what makes them good, how they are made. rebuilt them -- we built them in a way to give brands feedback on the things they like about their products, but also to make them better and improve them. jason: where has it worked? steve: we have the largest community of headphone enthusiasts on the internet. we have about 3 million people part of that community. list that, we ended up partnering with a brand they really respect, one of the largest headphone makers in the world, sennheisers. we incorporated feedback from experts in the community, discussions, reviews, feedback,

comments, and worked with 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. ended up taking out parts of paypal's payment infrastructure because we got order so quickly. 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. jason: what is one of the more unusual enthusiast groups you have been able to form on this platform? steve: mechanical keyboards was a community we were not aware of before we started it. it is a community of people that are really passionate about their computer keyboards, gamers, programmers, they modify and upgrade them to make them more beautiful and comfortable. this massdrop community is over 2000 people.

-- over 2 million people now, and we have made dozens and dozens of product to help grow the community to a new audience. carol: what is interesting is it is not just about taking groups and sharing information with an existing brand. you are now making products, right? steve: absolutely. we started partnering with individual members of the community. users we see that are really knowledgeable and particularly 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. carol: 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. each of them will get driven by these enthusiast communities. jason: also this week, tilting the seven-figure porsche. carol: pretty impressive. where top car collectors go for restoration and a claim. -- and reclaim. >> it is this great family run the shop and durham, north carolina, that restores the million-dollar porsches of the world. we are talking the caliber of jerry seinfeld, the porsche family itself and what they own. jason: are they just known by the people who need to know these things? how did you get in there? >> 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 over a million dollars. jason: educate us about pebble beach. hanna: this is the world's most procedures car show. period. it is the end of monterey car

week. a combo of $20 million ferraris and cars owned by winston churchill. 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 materials and construct it in a different way. you are not putting it back together to look great. you are actually building up the way it was originally built. hanna: yes. for instance, rhodes scholars used paintbrushes made from horse hair like the type used to paint the cars after the war in europe. it means finding or making bolts stamped the way they were in the 1950's.

it means making the welds imperfect so it matches up exactly. carol: tell us about the porsche family. they brought a porsche there, and what happened? hannah: two members approached road scholars in 2011 and said, we have this special car and we would like you to restore it. this is unknown because 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. they spent months restoring this car. a very stressful thing. they brought it to pebble beach. the family members had not seen it, and it is the moment of you show them the car, they are walking around, there is no expression. because of course, they are german, and they are serious. at the end they said, better than we could have done. that changed everything. carol: ballast pivotal to their business. it helped them really take off. hanna: definitely.

the main figurehead for the business said, after that, everything changed. business more than doubled. he called it a marriage to the business. it is all-consuming. carol: bloomberg businessweek is available on newsstands. jason: and on businessweek.com and our mobile app. your must-read this week? carol: a couple of stories that stayed on the news, matthew philips talking about the meeting between president trump and president putin. is stirred up so much controversy. i feel we will talk about that a long time. and our cover story, taking a look at president trump's trade policies and the lasting impact of those in the u.s. and globally. jason: i liked how he spun that forward, peter, and to angles that are not as obvious and introduced a lot of complexity still to come. carol: your must-read? jason: best buy. a story that a lot of people did not anticipate. in this world of amazon. but the new ceo bringing people into stores, but sending people into folk's homes. it is a must-read.

carol: nice to hear of the story of a retailer surviving. jason: more bloomberg tv starts now. ♪ retail.

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