♪ taylor: welcome to "bloomberg businessweek." i am taylor riggs. jason: i am jason kelly period headquarters in new york. taylor: a lot going on in the magazine. tyson wants to be your one-stop shop for all things protein. jason: we look at tmz's shift from hollywood to washington as it tries to break into celebrity politics. taylor: first we look at turkey.

a lot going on with threats of their financial crisis and any contagion effects it might have. jason: we talked to our economics editor about what was going on there. peter: turkey's market caps was less than the value of procter and gamble or mcdonald's. so, it is not big in that respect. it happens to owe a bunch of money to european banks, unicredit in italy, b.n.p. paribas in france. to me, the impact is more symbolic. people look at turkey and say, who is next? they right away look at argentina, which is vulnerable. it has a big history of poor economic management, even though the current president has done a pretty good job. they look to south africa. ramaphosa is pursuing economic

afteroxy, but he comes jacob zuma. people worry the good policies could go away. the rupee of india fell. we saw pressure on italy, with its new populist government, is another country people worry -- people are worried things could get worse. can are ok now but you imagine a downward spiral. you have risk on and risk off, and suddenly, the world is in a very risk off kind of mood. taylor: we talk about not only the volatility of the leaders, but then a strong dollar and how that weighs on emerging market countries and the pressure that is putting on, not only the lira but turkey's internal economy. how bad are things? how is their economic situation right now? peter: one of the reasons turkey did hold up so well is its banks

seem to be in fairly good shape. the gdp was growing at a good clip, over 7%. it seemed a lot of things were going their way, but as we know, emerging markets -- they have a lot of debt allergy. they cannot handle debt as well as japan or a u.s., because investors get nervous. the fact they ran this chronic current account deficit, ever since 2002, they have had only one quarter of a positive current account balance. that, coupled with the dependence on borrowing in hard currencies like the dollar and the euro weighed really heavily. investors changed their attitude. one of the lessons of this, and

it is a lesson we learned and unlearned many times over the years. if you are running a small country, you don't want to be depending on the kindness of strangers. jason: and i wanted to talk more about that because one of the big questions that has been looming out there is, is this greece? ece alllooking at gre over again? are we looking at another situation where the imf, eurozone, whoever, has to come in or the ecb, i guess, has to figure out a way to directly or indirectly get involved here? peter: there are two obstacles to that. one, erdogan has said he does not want the imf to come in or anything that smacks of the united states. another is a lot of the debts are owed by corporations and banks. the imf is geared toward lending to sovereigns.

they would have to come up with some mechanism where they lend to the sovereigns, the sovereign lens to the corporates. it is not what the imf is designed to do. taylor: we talked with a lot of em investors and they would like to see a $600,000 basis point rate hike to stem the high inflation and they are not. how concerned should we be that not central bank is independent from erdogan? peter: it is not independent. something has got to give and we are wondering what it is going to be. one possibility is they reluctantly embrace economic orthodoxy, raise rates -- which will cause a recession which is a bad thing but it is the lesser , of two evils possibly. jason: recession versus deep financial crisis? peter: yeah, and another is capital controls where you can't take your money out.

jason: which erdogan has been to date very reluctant to -- peter: right, because it is an admission of defeat. jason: we talked a lot about turkey so far, but i would love to get a sense of how investors are viewing this crisis. taylor: we have a bloomberg terminal function for that. what where looking at is the five-year cvs. it is a credit default swap, a way of buying insurance against a default or protecting yourself. what you can see here is the cost of buying that insurance is now up to its highest since 2008. this comes on the heels of everything we have learned this week about the economy, the depreciation of the lira, and for the people on the ground who probably can't afford a lot of things given the hyperinflation. jason: it feels like a key indicator to watch going forward. thanks, taylor. next, turkey's president has built his career on taking advantage of crises. will this prove too big for the

strongman? taylor: this is "bloomberg businessweek." ♪

taylor: welcome back to "bloomberg businessweek."

i am taylor riggs. jason: you can also find us online at businessweek.com. taylor: and on our mobile app. in the politics section, a nice profile of the turkish president. jason: he has been elected twice and never let a good crisis go to waste. taylor: this time, we wonder if they are too big for erdogan to handle. jason: here is matthew philips with more. matthew: this is a guy on tv every day a couple times a day and if you listen to the tone, he is giving these wartime addresses to his people and the way he is selling this is we are under attack. this is something that has been foisted upon us by not even our traditional enemies. by our allies and specifically, the u.s. there is this political calculation that is very interesting to watch him make, which is, he is trying to take what is a self-made crisis and tell his people that this is something being pushed against us from outside forces and it is us versus them. it is difficult to see how he continues to sell that as the economy continues to collapse. jason: we have seen pictures and

video, even over the past few months, of these two world leaders having a pretty good rapport in the face of donald trump not having a great rapport with some of his other traditional allies or some of the u.s.'s traditional allies. matthew: a month ago, they were in brussels and trump was pointing his finger at almost every other nato leader, calling them out, disparaging them, saying they are basically freeloaders and worked paying their -- weren't paying their fair share for security. the one person he didn't layer that criticism toward is erdogan. in a lot of ways, they are similar. erdogan is a kind of leader we know that trump admires. he is strong, he projects strength. he has amassed a ton of power. that works when you are on the same side. when you suddenly find yourself opposed to each other, it falls apart immediately because they don't want -- the last thing they want to see in each other

is weakness, so when you have these two guys want to project strength at odds with each other, there is this game of chicken and it is unclear who is willing to blink. taylor: when you talk about projecting strength and you mentioned president erdogan goes on tv a couple of times a week and gives big speeches, i wonder what that means for people on the ground there. we talked about how he said they should convert the currency into lira but they are seeing record high inflation, they probably can't even afford basic supplies. are they still rallying around him? matthew: if you are to have taken his advice and converted your dollars, or whatever foreign currency you have into lira the past few months, you would have lost a ton of money. that is coming home to roost in the minds of a lot of people. we did a lot of reporting on the ground in turkey for this piece and we went to the markets in istanbul and talked to merchants

and jewelers, and they are saying we have lost a lot of money and the economy is in worse shape than in 2001 probably, which is the crisis erdogan took advantage of to bring his party to power to begin with. jason: where does the rest of the world play into this? china, russia, iran? what role do they play? matthew: the big picture is whether erdogan wants to move turkey from west to east. toward more authoritarian regimes like russia, iran, and china. that is what he wants the world to think he is willing to do. he is willing to sacrifice his military and economic alliance with the west and trade it for a closer deal with russia and china. what do those three countries have to offer? it is not clear. turkey is going to need financial assistance. the russian economy is not in good shape. the chinese have on their books a long history of bad loans,

whether to the venezuelans or brazilians. it is not clear that is a solution, either. iran is a longtime rival of turkey in the middle east. they have found some common ground around the conflict in syria, but again, it is not clear that is a natural alliance and the question is whether erdogan thinks there is more to be gained by moving toward those countries. jason: beyond those three, it be lookingan may elsewhere for some new friends? matthew: there are reports that qatar has come in with $15 billion of direct investment. meetings have been reported between qatar's leader who met with erdogan. that, on its face, complicates things even more. on one front, it shows erdogan is even more willing to walk away from the west.

the traditional bailout -- western bailout institution is the imf. we don't know the terms of the deal he's getting with qatar, but what it does show is he is willing to make some new friends. jason: we are here with our creative director. we have heard a lot about turkey. how do you illustrate everything that is going on? >> we have a shoot from him that we did in may. i like to go through stuff we shop before. we went to those photos and found a good outtake where he is looking more off-camera, a little more pensive and we zoomed in on the shot and really cropped it and used the typography to get this tension going on and give you a feeling of what is going on with crisis. taylor: the thing that stuck out to me is his face is the center of it and the words are so small. you almost can't read the words so much. the focus is on him and the profile of what is going on with him and the economy. >> that is a thing we will play

with is the difference of scale and it draws your eye into the cover. it gives you a little time to sit with it. jason: u.s. readers see a chicken, illustrating the tyson story. >> tyson is moving away from chickens and more into protein products. we thought it would be funny to show the chicken's reaction. jason: a very happy chicken. i heard initially, the chicken had some teeth. >> the first sketch the art director was working on was a goofy, photoshop teeth and it was really funny, but kind of creepy. so we scaled it back and actually ended up with a little smile that worked perfectly. it is one of those examples where you're trying to do something that is not real and working with this being too creepy. taylor: next, why europe doesn't have any tech giants to compete with silicon valley. jason: and a big threat to china's startups. taylor: this is "bloomberg

businessweek." ♪

jason: welcome back to "bloomberg businessweek." i'm jason kelly. taylor: i'm taylor riggs. you can listen to us on radio on sirius xm channel 119, and on am 1130 in new york, 106.1 in boston, 99.1 fm in washington, d.c. and am 960 in the bay area. london on dab digital. when will we see a big tech giant like an alibaba come out of europe? taylor: we see these companies

in europe cashing out before they get the chance to become big enough to compete in the u.s. and china. jason: we go on a tour of the contenders. >> you haven't had a company reach escape velocity to get north of $50 billion in market evaluation and until a company does that, there will be doubters who think europe can't produce a tech company of that size. i think you still have some venture capitalists in europe who when they get a decent buyout offer from a company, may be a billion or even a few billion, they put some pressure on company founders to take that money because it looks like a good offer. really, if europe is going to produce a company with a market value north of $50 billion, it is going to have to say no to a lot of those offers to keep growing independently. people are hopeful of what has happened with recent ipos like spotify, which is worth about $30 billion.

people are saying maybe that is the company that is the breakout success out of europe. jason: from a tech perspective, if you talk to people in silicon valley, is seen as more of a scold. they're trying to clampdown on privacy. vestager has gone after the global tech names. how helpful or hurtful has that been from the perspective of building companies? jeremy: this is a bit of a double-edged sword. people have looked at this and said if europe had produced some great big tech companies, you would not see the european commission acting the way it has and using its regulatory muscle in the way it has to crack down on google, and amazon. on the other hand, i think your opinions are -- i think

europeans are concerned about data privacy and privacy rights. they are genuinely concerned about anti-competitive behavior and actually, europe, by creating some of these draconian regulations, they have shifted the playing field a bit and that has created space for european companies, which have been more used to playing with these kinds of rules already. in a way, it could give an advantage to european players coming along now. they are more used to the regulatory environment and you have a backlash even in the west against some of these big tech companies and excesses we have seen. again, that is an opportunity for a newer european company to come along and say we are different. we are not like silicon valley. we are going to respect user data in a way they have not in the past. they can build a big business out of that model. taylor: i love how you compare and contrast the difference between the american culture and european culture.

you do talk about how it is a cultural difference, as well and you feel the europeans are more humble, they don't produce these outlines for future growth and in some ways, they are a little more concerned about privacy. it is also cultural, as well, right? jeremy: often, silicon valley has grand vision statements. google wants to organize the world's information. facebook saying it is about building community across the globe. you rarely see a european founder express those kinds of grandiose mission statements. i talked to the ceo of a company called supercell which did well before it sold to softbank and then tencent, but he is still in charge of that company which is still very independent. he said do not mistake the fact inhat europeans do not speak these grand terms for a lack of ambition. there is as much ambition but culturally, it is not the thing to express it in these grandiose statements.

taylor: sticking with technology companies, china has two of the largest ones, tencent and alibaba and they are investing a lot in smaller startups. at first glance, it seems like a good idea. jason: seems like it would be an amazing thing for a startup to get that kind of cash, but it is posing a problem in real risks. >> a reporter and couple of other reporters in beijing and hong kong took a look at the various ipos filed by chinese companies, including the u.s., and found in dozens of cases, they were surprised to find that the companies had not just warned investors about conventional risks like near-term profitability, but in many cases, there are -- one or two largest investors, alibaba and tencent, were exerting a level of control that might depress long-term profitability.

jason: the ownership and the risk associated with the ownership really could have a much broader affect on the chinese tech economy than anyone really understands. i mean, these guys are really entrenched in a lot of these firms. >> absolutely. you hear a lot of talk about the degree to which softbank vision fund can distort markets single-handedly by going to a given company in the tech space and saying you can either take , our ridiculous amount of money and do what we will with it, or we can go next door. alibaba and tencent compound that in the sense that these are companies that may well be direct competitors of the companies they are investing in. taylor: what type of controls are we talking about, because they are not buying these smaller companies outright?

jeff: the big difference is unlike apple or amazon.com in the u.s., where they tend to buy the smaller companies outright and absorb them. google, in many cases, quietly shutters them and lets them go away. these are businesses that alibaba and tencent are counting on to dominate a new market whether the food delivery or social shopping and they say, we can hook into the wechat messaging app or if you are alibaba, our amazon style shopping site and the two companies are partnered in a way that makes them linked. it is a way to build market share and move more money in a way that doesn't necessarily raise antitrust tackles or worries about concentration of power. jason: if those relationships go away, the company is in potentially big trouble. jeff: that is what the startups keep warning about.

in the case of china's number two largest search engine, 52% of their traffic is coming from alibaba and tencent firehose. they cannot extricate themselves from the partnerships they have developed. companieshen the would comment to our reporters, they said we are deepening our partnership. taylor: when you were looking through the filings, how far back did it go? is this a recent trend and are the numbers getting bigger overtime? jeff: it has definitely taken off over the last few years. google is the best example in the u.s. of a giant tech company that tends to see a lot of relatively young startups through its venture capital arm. the tencent blows google out of the water. jason: tyson's race toward a meatless future.

taylor: plus, an industry rocked by job cuts. jason: this is "bloomberg businessweek." ♪ xfinity mobile is a new wireless network

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included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. jason: welcome back to "bloomberg businessweek." i'm jason kelly. taylor: i am taylor riggs. we are looking at electric clouds over japan's auto industry. jason: we also look at the data goldmine in big banks. it is personal data. taylor: i want to look at the cover story. it is all things tyson foods. jason: the ceo is a renegade in food processing.

taylor: he is talking about more sustainable ways to make foods. taylor: good news -- jason: good news for chicken, he is going from meat to meatless. here is carol massar and die. -- and i. >> we think of tyson foods as a chicken company. i didn't know tyson foods was actually a big producer of beef and pork, as well. they are the biggest meat company in the u.s., possibly the world. they do $15 billion of meat production a year, $11 billion of chicken, $5 billion of pork and have direct consumer plans and are mammoth. i heard they were investing in alternative meat, plant-based meats and these lab grown meats. i thought, does this mean they are really accelerating the growth of these plant-based competitors? we talked to the ceo, tom heyes, who has been there about a

year-and-a-half at this point. he is setting out a new mission for this company, or is he? amanda: that was the question. he is a really interesting character. he is from the northeast, which is unusual for tyson because most of their previous ceos have been southern born and bred and have risen up through the ranks of tyson. he is a younger guy, 53. he came to tyson with his brick -- background in directed consumer brands and they were interested in his relationship to the consumer and his intimacy with meeting consumer needs and understanding the evolving consumer. i think he sees significant opportunities for self disruption in his industry. jason: part of what he has to do is convince the carnivores they are doing business in a sustainable or at least more humane way. that is the criticism that has been leveled against them and their competitors, right? amanda: that is an important

point. these investments in non-meats are part of this bigger sustainability plan and vision that tom hayes has advanced since he came into the ceo role, and it should be said that just before he was appointed first president and then ceo in late 2016, tyson had been the subject of a lot of criticism about inhumane animal treatment, about workplace conditions, there were some antitrust lawsuits. they were dealing with some bad pr and tom hayes is a friendly , charismatic, affable guy. he was a good guy to put on the front lines. he brought in all his critics on -- in the first couple of months

on the job and he rolled out a big bash to have a conversation about sustainability broadly. he rolled out a big plan and the plan included a lot of, yes, goals that would relate to more humane and sustainable meat production. he said, we are going to cut our carbon emissions 30% by 3030. not just in the company but throughout the supply chain and that is a big deal because they have a carbon footprint on par with the whole of ireland. they are going to do less water use, better energy usage, removing antibiotics from all of their chicken production. it was part of this suite of sustainability goals they rolled out and along with it, we're going to start investing in alternative products. as we begin to accelerate and elevate this new paradigm of meat, we're also going to do conventional meat production better.

jason: we are here with editor-in-chief joel weber. we just heard from amanda little, an amazing story about tyson. what was the idea behind that? joel: this is a company going through a transformation. they sell billions of dollars of meat. chicken, pork, beef. they are not known as being a great company for animals, animal welfare, or on the environmental front. they are a huge pollution creator and generator of greenhouse gases. yet here is a new ceo who inherits this legacy. what is his game plan? jason: with big ideas. joel: that is this whole pivot to what does this company look like in a post-meat future. seo grappling with changes, consumer preferences. jason: best news for chickens in a long time. turkey, obviously the big story of the week. you come at it from multiple angles. we heard from peter coy and matthew philips.

we saw a chart from taylor. wrap it up for us. why is turkey so important? joel: it has emerged as the most vulnerable emerging-market. we do not know where it is going to go. right now, it is a currency crisis. will it spread? is there the risk of contagion? economists think not yet, but , there is always the risk for it and one we will have to keep watching. that was why it was such a theme of this weekend what does erdogan do with power he has a -- has accumulated? jason: bloomberg opinion coming into the fold. joel: this is a new presence. we brought bloomberg opinion, we will have a new columnist every week. this week, lawsuits. this week, he picked out ibm versus groupon, a case that ibm won and groupon's appeal. it turns out ibm has a , billion-dollar business in just protecting patents. jason: why the auto industry fears the rise of electric cars. taylor: how banks are

encouraging customers to buy more things with their credit cards. jason: this is "bloomberg businessweek." ♪

jason: welcome back to "bloomberg businessweek." i'm jason kelly. taylor: i'm taylor riggs. you can find us online. jason: and on our mobile app. moving to the section driverless , car's, electric vehicles, it could all mean the end of the combustion engine.

taylor: we go to japan, where auto suppliers are nervous about the industry's survival. cristina: took a little trip to a company that employs 310,000 auto workers. this is where toyota is based. all its suppliers are in this area. toyota's ceo has been warning of this once in a century of people -- century upheaval that is coming from this triple threat of electric vehicles, ridesharing, and driverless cars, which reduce demand for autos but particularly electric vehicles, because it is a whole different car in many ways. there are many many parts that go into a combustion engine that are not found in electric cars. jason: i want to read something from the story near the top. it says "here is a sample of , what you won't find in an electric vehicle -- catalytic converters." that is a lot of stuff. cristina: that list is half the

story coming in. i had never stopped to think about it, either. it was interesting to look at and in japan, there haven't been studies yet about the size of the impact, but in germany already, carmakers have been sponsoring research into what could happen. there was a study by the fry hoffer institute that if just 25% of cars were electric vehicles 90% of auto jobs in , germany would be at risk. taylor: that is a lot. you have a lot of stories about companies in the supply chain where maybe toyota was the biggest customer and small business owners who were supplying parts to toyota who were really concerned that if electric vehicles were going to be the focus, they wouldn't be able to keep up and have that investment into making the parts that go into electric vehicles. you also get sad stories on the ground, as well. cristina: the company we

profiled has workers in the hundreds range. they have been trying to invest, to create more digital services technology, but there are a lot of companies in iag that have 30 workers or so. they are struggling to make a profit. in 2017, 40% of manufacturers in toyota city, 30% of workers, didn't make any money. they don't have the money to pump into r&d, to extend their future into new areas. taylor: what is the upside here, because we hear it is tough for the supply chain and toyota, but if we go to electric vehicles, and it has been a push in china, who would stand to benefit from that? cristina: these disruptions sometimes create industries in different places. i think we are going to see china become a much bigger player in autos when we shift to electric vehicles. it is a big question about how

quickly japan can make the transition. taylor: we go over to the finance section. we take a look at a company called cardlytics. jason: they're working with some of the biggest banks in the world to mine some of our personal data. taylor: that is how we use our credit cards. >> they are able to look at what banks call purchase data, which is exactly what it is. what are you doing with your it is credit card, what are you , doing with your debit card? and banks are working with this company to analyze that data. they look at about a trillion and a half dollars worth of transactions per year. as they do that, they are trying to get a read on your spending habits, what you are doing with your money and what you then might like to do with your money. if you get an offer or a coupon or some cash back rebate. taylor: what are they using that

data for? are you selling it, are their privacy concerns? pat: they are analyzing the data and going back and working with the advertisers, but also the banks and the banks are the ones offering the coupons and the sales offers on their own banking platforms. what is interesting about this is this is something banks have been a little slow to catch on to. we think of banks as custodians of our money, and it isn't necessarily the most obvious thing in the world, as valuable data might be, how a bank is going to use it without upsetting me as a customer. jason: the ceo of cardlytics apparently told us "customers in many ways expect banks to use their data to provide more value." react to that.

pat: spoken like someone who has a company. [laughter] jason: someone who has a company who is selling data. pat: that's right. obviously, they think they have a value proposition, but it is true that banks look around at the landscape and say, there are other people figuring out ways to use data in new ways. we had a wave of tech companies that are using data we hand over to these companies. you set up an app, they set up a budget, what are they doing? they scrape data from your bank site and people build businesses off of this and banks sometimes look at that and say, well, are we missing a step? taylor: and to take the banking side, there are data privacy concerns, but if you want to targeted coupon that is relevant. we hear this from facebook all the time. people don't like ads, but prefer ads that are targeted to them.

what is the case that this may meet my need and make it easier for me to be a recurring customer. pat: that is where the rubber meets the road. are you offering something people want to use? a lot of this is happening inside the environment of a bank's mobile app. is my bank a place where i am doing that kind of commerce? that may differ from customer to customer. jason: next, the founder of tmz wants to find the next celebrity president. taylor: and what amazon is doing about its youtube envy. jason: this is "bloomberg businessweek."

taylor: welcome back. i am taylor riggs. jason: i'm jason kelly. you can listen to us on radio on sirius xm channel 119, and on am 1130 in new york, 106.1 in boston, 99.1 fm in washington, d.c. and am 960 in the bay area. taylor: and in london on dab digital. we go over to the features section. we are starting with tmz, they are plotting their second revival in the age of trump. jason: they are going from hollywood to washington, d.c., planting their flag in politics. taylor: here is our reporter. >> in the early 2000's, when time warner and aol were famously trying to make something work between these companies, one of the ideas for synergy, they came up with an idea. maybe we will use aol technology

and warner brothers' library of celebrity interviews to create this website. as they were trying to figure out what that would look like, harvey levin's show got canceled. harvey, you know l.a., you know celebrities, why don't you run this new thing? it was very vague what it was going to be. harvey levin took it, he set it up, he made the smart decision initially not to do it from the warner bros. tv lot. he moved it elsewhere into glendale, and instead of doing soft celebrity coverage, he used his expertise -- which is really, he knew every single lawyer in los angeles, and he knew that there was a lot of juicy stories half buried in the los angeles legal system if you knew how to get it. taylor: talk to us about his relationship with trump, some of the interviews they have done. >> donald trump was a minor figure in the tmz world because

he was on the miss usa pageant. over the time, harvey befriended donald trump's lawyer michael cohen and he would occasionally go on tmz shows and all of a sudden, when trump runs for president, harvey levin finds himself in this unique position where he has close connections to this candidate, and there seemed to be a lot of pro trump stories that ended up on tmz. they did a lot of stories playing down some of the scandals breaking around the candidate. at some point in the fall of 2016, harvey levin sat down with trump and got this incredible access for an hour-long interview, one-on-one with trump in trump tower, in his home. that interview ended up airing on fox news. harvey turned around and sold a show based on interviewing celebrities based on that interview with trump.

they had a good relationship, but suddenly, that started to change around the start of this year and now if you look at tmz's site, there are tons of stories -- everyday, new stories of some celebrity outside a nightclub hitting trump for one thing or another. jason: what accounts for that? felix: part of it is, for whatever reason, harvey levin has had a falling out with donald trump. it is unclear. one source told us part of that had to do with trump's efforts to ban transgender military service, and that was one of the things harvey levin disagreed with and they had some falling out. for whatever reason, they don't talk anymore and what is interesting now, they have pivoted. we did the trump thing in 2016. what is next? when you look at hollywood these days, there are all these

candidates thinking about, maybe we could do that. maybe we could get into politics. for harvey levin, the number one front runner in this whole thing is the whole kardashian-jenner clan. you can see every time levin is on tv talking about this topic, he always brings up this issue. this family has 700 million social media followers, why can't they do it? why can't they influence politics? why can't they run? in some ways, it seems crazy but in the world we live now, it is like maybe the , kardashian-jenners will. from their perspective, you can see that they were the most famous family in the world and then the kushner-trump's came along. jason: in the business section, amazon's live streaming wants to give youtube a run from its money. taylor: twitch is an online

hangout for video gamers, but with bigger plans. jason: carol massar set down and got more. lucas: twitch is the destination for people who like to watch other people play video games, which sounds strange to a large segment of the population, but there are 15 million people who come to the site everyday to watch videos. it ranges from people watching people playing video games, people talking about videogames but in recent years, the site has tried to broaden what it offers and the types of people it brings in. they have made deals for korean dramas. they will have livestreaming of julia child. they have nfl games, nba minor leagues. all part of this effort to make it the place for watching live video on the internet. jason: suddenly, it starts to feel a little more like youtube. youtube, obviously, is the 800 pound gorilla in this space. put them next to each other and help us understand how they may interplay.

lucas: youtube is the place for on-demand video. if you want to look up something whether a late-night clip or a music video, you will probably find it on youtube. youtube is the common language of video on the internet. it is the video that gets embedded. twitch has grown because of its emphasis on live. if you think about it a lot of , the tv we watched historically has been live and that is really appealing to advertisers and to some viewers. so that is the competitive advantage twitch has. twitch is significantly smaller than youtube. it is not as global, and the video it has is not as diverse, but they are trying to change that and the gamer demographic which is so strong in is also very popular on youtube. some of the most popular youtube stars over the years, household names that people between 12 and 34, are gamers. youtube has started to get nervous about this competition from twitch.

you have seen the make deals to deter twitch. carol: tell me about the personalities twitch is trying to attract. why would they want to go to twitch? it is a smaller audience versus youtube. lucas: twitch has gone after everyone from hollywood a blister's who post a lot on youtube. they wondered if someone like will smith would want to post on there, to a more traditional youtube style influencer, whether it is the fine brothers who write and produce shows for youtube or a famous lifestyle influencer. they would go to twitch because they can't rely on youtube for all their money. obviously, will smith makes plenty of money doing various things, but if you are an influencer, you may have built your business on youtube, but youtube is a somewhat unreliable partner and there is only so much money you can make at a low margin advertising. you go to twitch because you can sell subscriptions. one of the most common ways for people to make money there is getting your fans to pay five dollars, $25 a month to

subscribe to your channel. that subscription feature is not nearly as common on youtube as on twitch. taylor: "bloomberg businessweek" is available on newsstands now. jason: and online and on our app. what was your favorite story? taylor: the chinese tech companies, the big ones like tencent and alibaba, making really big investments in small companies, but it turns out there are strings attached. jason: you would think this would be the biggest day of your life if you've got money from one of these guys. it apparently comes with a lot of risk and investors are concerned. taylor: what was your favorite? jason: i loved the tyson story. the ceo and his renegade view and the idea that we could be headed toward tysons food, a meatless world and i loved the chicken cover. taylor: i did too, and more bloomberg television starts right now. ♪

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♪ i'm thinking i should ride 200 week. david: what i look like you if i could drink diet mountain dew? collects short. david: you grew up in iowa.