♪ carol: welcome to "bloomberg businessweek." jason: we are joining you from bloomberg headquarters in new york. carol: coming up, the metal that started trumps trade war. trumps aluminum tariff opposed. jason: why investors are rolling the dice on cryptocurrencies and cannabis stocks. carol: first up, we need to take a moment to focus on the story

of the week. brett kavanaugh's senate hearing has become way more than just politics. in this week's remarks section, we examined the culture that discouraged christine blasey the from speaking out in first place, and how sexual assaults can punish women through their entire careers. our editor joins us with more. this is a story we have been all talking about this week and even created a new hashtag. there were questions about why she didn't come forward sooner. >> there are a lot of reasons why she did not come forward. whatever the reasons are, two out of three sexual assaults don't make it to any official report. in the workplace three out of four people who experienced sexual harassment at work never take it through official channels. jason: you really talk about the personal and impersonal economic implications for a woman's

career that stems from this sort of situation. >> absolutely. so for victims of sexual violence, that can show up immediately in terms of days that they take off, or medical treatment, or it can manifest itself over a long time. in one survey of over 3000 participants, people who identify themselves as experiencing sexual abuse in childhood before the time that they were 18, which would include what christine blasey ford happened to her when she was in high school, two decades after the fact their health care costs were about 15% higher. jason: what are companies doing it this point? what do your reports show? are your company is beginning to take it more seriously -- are companies beginning to take it more seriously? >> i hope so. i hope we are starting to see more accountability, right. sexual harassment and sexual assault is something that maybe

20 years ago people could sort of expect to get away with because of this culture of silence, because victims did not want to come forward. the more people speak up, the more we are having to reckon as a society and culture with who we hold accountable and out. carol: thank you so much, we really appreciate it. a busy week in new york with the you when general assembly and a lot of news out of washington -- you when it -- assembly and a lot of news out of washington. on u.s. levied tariffs china. our team looked into what started this trade war. matthew philips has more. >> let's think a little bit of how you make aluminum. it is still a very energy intensive, even huber labor -- human labor intensive product

that hasn't changed all that much since when we discovered to make aluminum in the 1890's or something like that. century operates three of the five operating smelters in the u.s. about 2000, companies started to realize it made a lot more sense to stop physically making smelting the aluminum and united states and go farther afield. go to icelandic, the middle ist, russia, where energy much cheaper than in the united states. we went to the smelter in kentucky. it is 140 degrees inside. you have workers who are standing feet within this bubbling -- within proximity of this bubbling, molten metal that is electrified. that is how you get this chemical reaction to separate the aluminum from the aluminum oxide. how you realize is just

labor-intensive and energy intensive this thing is. this plant uses as much of the trinity entire city of louisville, kentucky -- as much energy as the entire city of louisville, kentucky. it makes a lot more sense to make the stuff of broad, and abroad, andoad -- import cheap aluminum to the u.s. the u.s. aluminum industry is doing quite well. they have benefited from lower-cost rock aluminum that they can fabricate test raw -- raw aluminum that they can fabricate. carol: answer glencore. let's break -- enter glencore. glencore has owned this company, although it sold it off, but

still owns a bunch of its stock. tell us what glencore has done in anticipation of what the trump administration was going to do with tariffs. >> when you saw that tariffs process get underway you saw a huge increase in the amount of foreign aluminum imported into the u.s. in anticipation that the trump administration was going to bring tariffs down. there was demand that was rising certainly, but with interesting is that a lot what was being brought into the u.s. was not being necessarily sold immediately. it was being stockpiled. the amenities tariffs went in -- the minute that these tariffs went into effect, the cheap aluminum became a lot more bible. glencore -- valuable. glencore was not the only trading company doing this, but they were among the biggest ones. while this company is the largest shareholder -- which

they are the largest shareholder lobbying, very-- quietly glencore was pushing and a lot of product that overnight immediately became a lot more valuable to the tens of test to the tune of tens of millions -- to the tune of tens of millions of dollars of profit. jason: totally legal. they profited pretty handsomely. explainslesforce ceo the responsibility that tech companies and leaders have to make their values and company mission known. affect.ollect the masa all banks lead to his vision fund. carol: this is "bloomberg businessweek." ♪

♪ carol: welcome back to "bloomberg businessweek."

i am carol massar. jason: and i'm jason kelly. you can listen to us every day on the radio from 2:00 p.m. until 5:00 p.m. wall street time. salesforce kicked off its annual dream force conference in san francisco. per usual, the company's outspoken founder, marc benioff, had a lot to talk about. bought times magazine and bought the salesforce tower. he has taken on a co-ceo. he has been busy. jason: very busy. bloomberg technology's emily chang covered all about with. marc benioff. . they discussed facebook and a new era of corporate responsibility. facebook of course purchased instagram six years ago and we now know the founders are leaving. is that a bad sign for facebook? is it a sign something has gone

wrong? sign for them and they need to start paying attention. our industry has changed, you have already seen this. every ceo needs to ask themselves, what is the most important thing to you? what is the most important thing to your company? what is your highest value? our highest value at salesforce's trust. nothing is more important than the trust we have with our partners, our customers, our top executives. when you see top executives walking doubt, customers questioning your privacy practices, how you are using or misusing their data, how you are misusing partnerships, you need to listen, wake up, ask what's going on. it's very serious. i'm not going to call that one company and say they need to change. what i am saying is that for every ceo in our industry, we see what the employees are saying. we have to operate at a higher level.

facebook is the new cigarettes. it's addictive, it's not good for you. consumers need to be aware of what could happen. that's why the government is involved and needs to be more involved in the regulation of facebook and other social media companies. and the example of companies that have questions about our their products being used ethically or humanely, they need to create structures where they are able to evaluate the ethical and humane use of the technology. technology is never good or bad. it is never good or bad. it's how you use the technology. that matters. you have to be -- that matters. you have to be crystal clear with everyone what your values are, what your practices are. if you don't, you're going to see customers leaving, or executives leaving, or employees leaving. we have examples of that throughout our industry this year.

you will see more of this until ceos change. they all need to change. that's true for me and everybody in our industry. softbanksayoshi son of has taken the industry by storm. he has been on a buying spree when it comes to technology. >> a buying spree. some of the latest deals in 2017. 2017 was a really big year. the uber of china, a ride-hailing company, and we work. you get an idea of how big these investments are. carol: it's a visual representation, right? >> come to 2018 and new companies like uber. i want to continue on the m&a spree. , it wasooking at m&a go a core function on the terminal that talks about the size of the deals. in the third quarter of 2016 there was a lot of volume of

deals but not number of deals. that starts to reverse in 2017. a lot of information. this is why i like the terminal. carol: exactly. give us some perspective of the -- gives us some perspective of the bigger picture. jason: we have been hearing a lot about softbank and its ceo, masayoshi son, known for his bonus -- boldness. nerve hashis catapulted softbank into a telecom giant across the world. carol: now he is on the lips of every venture capitalist due to his $100 billion vision fund. we see how he is reshaping startups and how they get funded. check it out. >> it's one of those classic rags to riches stories.

he grew up in japan in a poor family. he is of korean heritage and was bullied a lot as a child. p ended up going to uc berkeley for college. when he went back to japan he changed his name back to his former korean name, which was really sort of making a statement, showing yes he is an outsider but can make this work. from there he eventually built softbank into this giant telecom conglomerate, buying stakes in all sorts of companies. they have a mobile carrier unit, a big stake in sprint. they acquired a chipmaking company. he has always been known for making big bets and being an opportunistic investor. he hadthe dot-com bubble hundreds of investments and startups, but many ended up failing. with this $100 billion tech fund he actually has the capital and

team to do what he has always wanted to do. in his belief, he is not a regular venture capital investor. he is trying to accelerate the next revolution of technology. whether or not you believe that, that's what he intends to do. carol: $100 billion is a lot of money to play with. it's called the vision fund. what is his goal? is it to own the next technologies that are going to dominate the world? what is it specifically? >> that's a great question. it seems like a lot of capital, but in less than a year they have already deployed $65 billion of that. they try to invest at least $100 million and it can go up to tens of billions of dollars. we actually asked him this very question. can you articulate as if you were speaking to a young child what the vision his behind the vision fund. he wants to invest in companies that are the top leaders in their industries using cutting edge technology, including

artificial intelligence. the bigger picture is to make the world a better place, accelerate happiness, accelerate this data revolution. he believes the world is that this inflection point where his investment can really push that forward. he talks a lot about this thing called the cluster of number ones, in terms of creating this sort of family of companies that are all the leading one in their category. by all being in this group together they can sort of accelerate and drive growth off of each other. still ahead, the era of the microbubble. this year. . we will explain why this time it is different. i weighs ineo of ad onnvest -- a.c.l. weighs in on sustainability -- a ceo weighs in on sustainability and more.

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♪ jason: welcome back to "bloomberg businessweek." i am jason kelly. carol: and i'm carol massar. you can also listen to is on the radio on sirius xm radio, in new york, boston, washington, d.c. jason: and a.m. 960 in the bay area and in london on dab digital. to finance and joe weisenthal's reflection on the recent craze in sticking money -- craze of sticking money in cryptocurrencies and cannabis stocks. jason: we talked to him every day on our radio show. i have to say, he is always interesting. >> i really think that it's not an accident that we are seeing these things at the same time last year be crypto bubble, this year incredible moves and cannabis stocks -- in cannabis stocks.

what i wrote about in this these is some of the underlying technology -- psychology around both. they attract a lot of the same people. ,ort of overwhelmingly young men, millennials. they have these antiestablishment, rebellious ways to get back at the system. in this post crisis era where there's still is a lot of distrust in financial institutions, we know there has been a huge collapse in the trust in government and those things. >> it feels like the woodstock of assets. i think we constantly look at these aphids, whether it is cryptocurrencies or cap -- assets, whether it is cryptocurrency are cannabis, is it --? >> it is very different. in the 1990's there was a moment of boundless optimism.

it was beyond just the tech stocks. it was clean energy companies. people thought that was going to be addicting. everything was rallying -- to be a big thing. everything was rallying. and does not feel too many people like a time of boundless optimism. yes the market and economy are doing well, but we know it's not the same level. so you look again at what is ying.y rall it is these things that are countercultural and subversive. >> you have a few individual assets catching people's attention. >> it's like these get -- we get these microbubbles. most people we talked to don't think there is some huge bubble right now. stocks are a little expensive, but it does not feel that euphoric. you see these many bubbles, whether it's crypto last year, cannabis this year.

some recent tech ipos, chinese tech ipos. we see these rolling sort of localized euphoria's. jason: let's talk about crypto. i know that broadly within bloomberg you are right in the middle of really covering that, putting together a team, figuring out all the different angles. as you look back, what were the key moments? >> if you go back to last year, i mean, what kills bubbles? it's always the massive increase in supply. that is all this money coming in and in limited number of assets to invest in. they just create more and more -- of bitcoin until the industry is so swamped there is not a good for anymore. anymorelly -- bid for -- it anymore. that really hit a fever pitch

last december. the interesting thing this year to been if you had talked the optimists last year they would say there was a lot of institutional money coming in. a lot of it has happened. institutions have set up crypto something or other. the money just has not been there. ifwill be interesting to see either some of these things get pulled the plug on or if there is another wave of enthusiasm. right now there is this mismatch. carol: speaking of the growing cannabis industry, that's just one subject we tackled this week. jason: we were at the global business forum and i sat down invest -- ab f ad inbev. we started out talking about the company's sustainability goes -- goals. >> the last wave of commitments

we had two years ago that we announced were basically for four verticals. that is water, energy, farming, and --. water,aging -- averaging, energy, farming -- packaging, and farming. on energy, we have a commitment -- to having 100% of our amateur city from renewable fromes by energy -- energy renewable sources by 2025.

on farming, because we buy barley around the world, we have a community of farmers we have been connected to for the past 30 years. we have more than 30,000 pharmas connected to us. we would like them -- farmers connected to us. jason: how does the current trade environment play into your ability to execute some of this? and to execute your business overall? sell tended to produce and in most of the countries as a domestic process. ofexport and import lots beer. 90% of our business is done in one country than any other country. this -- these trade conversations do not affect us as much, but of course the impact does somehow. some way or another they do in

practice. jason: cannot let you go without asking about the world of cannabis. it has been dominating headlines in your business it feels like over the past. couple of months. . what is your strategy? >> we will continue to learn and observe. we are curious about the regulatory environment that will be built around cannabis. there are still in unknowns still about societal and business impacts. we are following those closely, but we are brewers and we love what we do. we are passionate about the beers. that's what i do for business. carol: it was a huge week for deals with comcast scooping up sky. jason: investors do not seem happy with the price they paid. carol:we are passionate they do. this is "bloomberg businessweek." ♪ this isn't just any moving day.

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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. carol: still ahead, there will be winners and losers when the u.s. and china put their tariffs into effect. jason: jet setting russian goal of dark roman of rum of which has a lot to -- roman -- has a lot to lose, starting with his beloved chelsea football team. jason: let's bring in --

carol: let's bring in our editor. we kick off the week with the u.s. and china putting on one another -- putting tariffs on one another. >> how did we get here? that was one of the elements we wanted to hit on the cover this week. the incredible story about an aluminum company getting its way and relieving the driving force -- really being the driving force behind the aluminum aspect of trump's tariffs policy. jason: so what does this mean? how are these tariffs going to play through? that was your assignment to peter coy? >> that's right. the econ section looks at what might be called an optimal tariff. consumers are bearing the brunt of this. all of those costs get carried through to consumers.

being one, washing machines, aluminum. arol: you would like peter, saying you are going to pay more at home depot? >> exactly. these prices are going to be passed along to consumers. we've also written about harley davidson. will actually be impacted by metal prices. carol: a busy day this week. l: the u.s. treasury department is not enforcing the rules or collecting money. we are watching this collection come down to fraction of what it was under the obama

administration. carol: i think about the sanctions. one thing that is being carried out is a lot of m&a activity. comcast is paying a big price. joel: enormous. more than analysts were expecting. the ceo of comcast really outfoxed fox and disney. they had acquired fox to actually get sky. this drove up the price and made it so that biob iger lost out on sky in the process. this is putting comcast in an interesting position. people look at cable companies -- jason: only one thing i love more than deals are media mogul s. this all comes together.

thank you. out as the big winner in a bidding war with ky.ney over s they won the battle with a $39 billion offer in a rare three round action over there in london. carol: investors do not seem to be celebrating. we talk to our reporter. felix: the head of comcast has told the story. going into all these details of sky versus virgin and what service is better. driver inking, my cab cares this much about getting this paid television, maybe we should get in there. he attributes that to his interest. he's been keeping his eye on sky, the culmination of a multiyear process. carol: he's paid a lot of money.

felix: a lot of investors are not excited. the stock took a major hit the first trading day after the deal. they will have a hundred billion dollars of debt when this gets done. there's this whole idea of having a big bundle of channels that has come under a a lot of pressure. comcast, roberts and this is the culmination of a process that goes back decades. roberts inherited this company from his father. its roots are in the most provincial american media sense, running wires out to broad -- small towns that could not get broadcast television. when he took over the company, the industry was shifting. has had a hard time shaking this reputation of being

a small town, second-tier co mpany. reed hastings dismissed it as a regional cable company. roberts took great offense to this. buying sky gives comcast, this transatlantic global club he is always wanted. -- clout he has always wanted. iger, you have murdoch, roberts, mixing it up over the past few months, culminating in this deal. how does roberts, as a media mogul, come out in all this? he has risen up on the stage. murdoch has been the globetrotting media mogul around the world. he sold a lot of assets to disney.

the chance for brian roberts and comcast to step up and claim that mantle, along with disney. brian roberts try to buy disney and that did not work out. -this is a victory. he finally wins one of these deals, but they are paying a huge amount of money. ead, sanctions only work if they are enforced. why the treasury tough talk is falling short. n: consumers may bear most of the cost of president trump's tariffs. carol: this is bloomberg businessweek. ♪

carol: welcome back. jason: join us every day for bloomberg businessweek from 2 p.m. wall street time.

carol: you can also find us online and our mobile app. jason: sanctions have become the economic weapon of choice from iran to russia. a crucial element is missing with three quarters gone, actual enforcement. the u.s. has put in place several new sanctions in the two point five months, but the actual enforcement of the decline -- of the sanctions is on the decline. he companies that have been violating sanctions, there has been less enforcement. with almost three quarters gone, only one case has been done this year. they often do dozens and sometimes hundreds of cases in a year. carol: this has to do with this

ofac office, part of the treasury department i have never heard of, the office of foreign asset control. why are you reporting this? stian: it's a big issue for banks and companies. era wheren sanctions are being used heavily as a tool in foreign policy. it's no longer okay to do business with iran and russian again. companies and banks all over the world have always had to do this dance about when it is ok to do business in certain parts of the world. we are in a time where that is getting more and more complicated. the treasuryf

department makes these orders saying, here is what you can and can't do. much does this tell us about what is plaguing this treasury division operationally? not say a lotdoes about how they do what they do. you have to infer a lot. the data is clear that enforcement is going down. the reason why is less clear. carol: to do talk to a lot of people who have worked with in this unit of the treasury department. what do they say it is happening -- is happening? many targets gun after with sanctions and it's hard to keep up? -- gone after with sanctions and it's hard to keep up? christian: there is only so much

bandwidth. the leadership at the treasury has been so focused on creating in additionnctions, to all the other stuff that is part of the regular job of the treasury. the enforcement cases are done by a particular unit. they need the attention of the council's office at a certain point. there is sentiment there is not enough capacity right now to be getting these cases over the line. carol: let's talk about the trump trade war. the president argued that foreign producer will cause the cost of tariffs to reserve u.s. market share. jason: who has power in the markets? here is peter coy.

the tariffs just started this past week. it will be a while before we feel there a fact. heir affect. deutsche bank said out of the first tariffs on china, only on products fro where china was a majority supplier. meaning, countries could go elsewhere and buy them from someone else. half our products

for which china is the majority supplier for the second billion. go somewhere else for are where80% of those china is the majority supplier. jason: it gets worse and worse. carol: because china is the only place to go. you talk about the unintended consequence that could happen in hurt if they are getting because of these new tariffs. let's say they move their labor to other, cheaper countries. i thought this was an interesting angle. peter: you are trying to punish

china. we are afraid that china is going to build of the state of china in 2025. the united states says we are going to have high tariffs on this. most of the added value comes from japan and south korea and the united states. the tariffs goes on the entire value. -- tariff goes on the entire value. china says, we're getting killed because of this. we should move this offshore to whatever other country and focus our people on doing stuff for where they are really adding more value. and they have a strong economic incentive to move out of the low value-added assembly work because the tariffs have fallen so heavily on those things. jason: we are starting to hear from executives on how this is playing through -- home depot is

being one example. told the ceoleague if they aret, constantly fielding efforts of their suppliers to raise prices to home depot, and push back if ify think it is not legit, the company got a tariff put on it, it is kind of hard to say no. hikesill accept price from suppliers to home depot. the next question is, what does home depot then do? do they pass this along to their customers? sometimes yes. jason: coming up next, being a russian oligarch isn't what it used to be. and culinary confessions,

next. peter: this is "bloomberg businessweek. carol: welcome back to

"bloomberg businessweek." jason: you can listen to us on the radio on sirius xm, new york, washington, d.c. -- >> in the bay area and in london on dab digital and the bloomberg business app. roman a promise which is the most prominent russian tycoon in britain -- roman abronovich is the most prominent russian tycoon in britain. carol: he turned and push soccer club -- an english soccer club into one of the most powerful brands at all of sports. jason: here is our senior

writer. most is one of the prominent russian billionaires in london and he had a troubles were doing his fisa in the spring despite having been invested in the u.k. for 15 years. andought chelsea in 2003 poured more than a billion pounds into the team. he changed the nature of english football in the process by setting off an arms race for the top players and coaches and other officials followed his lead. given the size of his wasstments in the u.k., it quite a surprise the british government did not renew his visa. it was due toink the growing cold war 2.0 that has been growing between london themoscow in the wake of march poisoning of a former russian spy in a small

.nglishtown then a spy was found slumped on a bench, foaming at the mouth and had been poisoned. the british government concluded that it was an attack orchestrated by the russian military intelligence. they proceeded to hit back at the kremlin, expelling 23 diplomats, boycotting the world cup in russia, and slow walking most russian visa applications, including this prominent russian billionaire with a base in london. carol: he loves the chelsea football team, but now he has hedging hit -- is hedging his bets with his investments and is putting this up for sale? stephanie: this is not something he wants. he has invested in it.

he is assessed with football in the process of -- an obsessivelyd follows all the matches. summing it is not something he selling it is- not something he wants, but maybe be safer option. bigger price tag attached. he wants 3 billion pounds for it. for ald be a record professional sports team acquisition. whether or not he can find an investor who puts that amount of money down is another question. whether or not he might lower create a partial sale to protect himself remains to be seen. carol: the really are no new ideas in food, only clever quest from old ones. -- twists on old ones. jason: top chefs around the

country confess on the tissues they wish they created. -- dishes they wish they created. >> it was a huge time for food in america. angeles andlike los san francisco are starting to discover their own voice in an exciting way. jason: wolfgang pok was up before of that -- puck wasat the -- was at the fore of that. i love the story about how his salmon pizza came to be. >> we now describe this in a million different ways. back in the day it was really only tomato sauce and mozzarella. wolfgang puck, an austrian born chef, was an up and coming

cook in the early 80's that had a celebrity clientele. joan collins walked into his putaurant one night and them fresh and smoked salmon on a pizza dough and changed everything. freic and smoked salmon on a pizza thoughhe and changed everything. it's a good time to look back at american cooking. a couple decades ago, our culinary scene was ruled by anadition, especially europe traditions. if you want for a fancy meal -- went fo ror a fancy meal, you were going to eat french.

they got inspired by these master chefs. not everyone remembers them. one of the iconic desserts is the molten chocolate cake that was created by accident. the cake forgot to calibrate the oven. he sent it out to the dining room and realized his mistake. he got called into the dining room and thought he was going to fired.d -- he walked in and there was a standing ovation. --s cake have this delicious had this delicious center. jason: it is practically a cliche. chef who idolizes the cake

says now people think applebee's invented the cake. bloomberg businessweek is available on would -- on newsstands. jason: and online and our mobile app. what was your favorite story this week? movement -- and reportdidn't movement. sometimes do not report right away because there are consequences. it is very topical what is going on in washington right now. son: i thought the story did a good job of telling the numbers on -- underneath it. very powerful. carol: what was a story that got you thinking? jason: i love the way joe weisenthal's mind works, the

connections he makes between dot-com, crypto, and cannabis. more bloomberg television starts right now.

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