♪ host 1l welcome to bloomberg business week. i am carol massar. >> and i'm jason kelly. we have a business exclusive on an army of 16,000. -- in a subversive side five sci-fi movie, it is like the united states. it turns out women are not the play it safe investors that they

have always been presumed to be. >> bloomberg businessweek has uncovered the most significant supply chain attack. >> the stunning discoveries are ace -- the subject of an investigation involving 30 companies including government contractors. >> and china is behind it. let us get to jordan robertson from washington. reporter: a special unit from -- ahina liberation army malicious microchip. inc. about it as a permanent infection in the hardware of a computer. this is the ultimate hack. an ideal hack. every time the servers boot up, the hardware, the malware loaded in this malicious chip injects itself into the operating system

every time the computer is turned on. it is the ultimate attack. it was found inside computers used by dozens of companies. host 2: once they are in a computer like that, what can happen? reporter: our first tip came during the obama administration. both the obama and trump administration have been deeply concerned about this issue of supply chain security. computer,et inside a we thought it must be about affecting consumer data. china must want siri user data. we were quickly corrected. the reason china would go through the trouble, the expense come of the time of engineering these motherboards in this way is for long-term access to sensitive networks. it is about corporate intellectual property. the theft of military secrets. that struck meng

in your reporting is that it is the scale and ambition of these news that make it unlike any other chinese hacking that has gone him before. reporter: this is super complicated tech. i have covered cyber security for decades. this is the cutting edge of the cutting edge. to manipulate computer hardware and this way is so much harder then doing a software-based attack. you can teach yourself how to be a software hacker at home. you can teach yourself how to be a hardware attacker as well, but it is so much more difficult. of sophistication, ingenuity, and resources that these hackers had and were willing to deploy to get inside apple and government contractors was extraordinary. it is like science fiction. host 2: this has opened up a whole new french. talk about the broader vulnerability that it exposes your. reporter: we -- that it exposes

here. reporter: large companies like apple or amazon, banks, government contractors. certainly they would be looking at their hardware in the same way that they look at their software. tools.they have security we found that they do not exist. ae cyber security industry is 100 billion dollar industry. almost none of that goes toward hardware security. industry has built up around software security and network security, but hardware security is the thing that is been overlooked. is hard tois that it do. it is hard to inspect hardware. ands expensive time-consuming and people have not thought about it in realistic ways as a threat to their networks. as result, computer tools have not been developed. and computers -- and companies do not look at their hardware in

the same way that they do other parts of their security -- computer security. host 1: speaking of the organizations or companies cited, what did apple or amazon say? what did the chinese government say? reporter: this is really important. and on the website, we include full denials from amazon, apple, and supermicro, the service supplier. these are full, robust and unambiguous denials. there are a lot of reasons to deny a story like this. the calculus we had to undertake was as we say in the story, we had 17 different sources with direct knowledge of these incidents. people insideor apple, inside amazon and across branches of government. when you take a look at the

story in the constellation of sources, their seniority and access to information and the reason they would know this thef -- way that against company denials and what you're left with is a powerful picture of an attack that happened but the companies are denying that. that influenced howard decision -- that influenced our decision to publish. host 1: for more on the big hack, let us get to tool weber. this is an amazing cover story. heard about the detail. not the usual is kind of software hack. this is about hardware. that is what makes the story that much more fascinating and troubling. it exposes this hardware supply chain that we have. a great conveyor belt from china.

that is beenay compromised because of this. it happened in 20 14 and 2015 but the investigation remains ongoing because it is such a great concern. host 2: as editor of the magazine, you're looking around the corner. where do you take this from here? reporter: this does not affect every company that has used supermicro before. according to that our sources, almost 30 companies were impacted. a small fraction of the bigger number. this does expose this vulnerability that can affect so many different industries in a place that no one has been looking before. what can we do about this? the story explains, there are not a lot of great commercial options for doing this. x-ray machines where you're looking for a chip the size of a grain of rice, most companies are not going to be able to do that. it turns to if there is a network solution.

i imagine that bloomberg and other outlets will continue to mom -- monitor this story. host 1: this comes at an interesting time. and-china negotiations trade going to the next level. reporter: the trump administration has talked a lot about china and how tariffs have been directed toward computers and networking. what this is about, it explains some of the bigger backdrop. it has not been disclosed to the public. that is why we decided to publish. host 2: while we have you, we have to talk about the other block esther piece. -- blockbuster piece. josh green on a secret resistance. reporter: you have to love josh green, right? the school -- the story about john burton who most recently

has been working for jp morgan bubble for that he did opposition research. didut before that he osition research. he has galvanized grassroots supporters. host 1: they are gathering tons of information. reporter: they're looking to target very specific winnable races with opposition research. ist 1: this whole magazine must-read. jewel weber, thank you. -- joel webber, thank you. liberal16,000 resistance volunteers secretly recruited to fight for the democrats in the upcoming november elections. host 1: plus, we follow the brain drain. host 2: we want to bring you a quick peek on how this week's

cover -- how do you illustrate the big hack? we illustrated it with a tiny chip. trying to show it to scale. we played with a lot of different things to show the comparison. the image of a penny or a pencil tip. we used the finger. once we had the image, we figured out how to do the type and a way that was brief and hit you right away. final result is impactful and clean and concise. ♪

carol: welcome back to "bloomberg daybreak: australia." jason: join us every day. carol: you can also find us online at bloomberg businessweek.com.

jason: a few things going on may play a big role in the upcoming midterm elections. about a month away. creation spotlight the of a quiet army of 16,000 liberal resistance volunteers. you heard that right -- 16,000. they have been secretly recruited by a smart former hatchet man for president obama. jason: we caught up with the author of devil for the details. reporter: he is a dork underbelly -- what these people do is dig for dirt on political opponents and then surreptitiously try to get that into the press as a way of shaping a negative story line that will impugn a political candidate. and we can voter support. what we have here is an enormous and secretive dark money group reading funded by mysterious democratic donors that has

marshaled a huge army of thousands of volunteers to dig into the background of dozens and dozens of republican incumbents in hopes of unleashing this negative information over the next couple of weeks and trying to get them to lose their elections. carol: you talk about the resistance and how it is led by a former jp morgan come it john burton. tell us about him. on barackhe worked obama's campaign in the opposition research department. as a young, college graduate in the 2008 campaign. he worked briefly in the treasury but he left and went banking.reer of he was not planning to politics. but like a lot of democrats, his life was turned upside down by the trump election. he decided to start a resistance group. we have seen these groups at marches, doorknocking or fundraising. many resistance people run for

office. what he recognized though is that this kind of volunteer energy we have seen crop up all across the country could at least in theory be harnessed to do what he used to do which is investigate the background of a lot of republicans. he said up this group to try to marshal this army of amateur investigators to look through everything from republicans' social media posts, old newspaper clippings, to arrest records and property records to try to unearth negative information that could be weaponize against these candidates. carol: it sounds so cold war when you talk about resistance movements. you mentioned john burton. he did it for the obama administration. this is kind of normal politics -- digging for dirt on your opponent. reporter: this is part of the ordinary tradecraft of politics that the public does not often

get a look at or know much about but there are paid researchers in both republican and democratic campaigns that are now very sophisticated. -- there are sophisticated outside groups. the former steele, mi six spy that produced the so-called steele dossier date for by democrats -- paid for by democrats. all of this tends to happen away from public view and below the radar. in order for these attacks to be effective, it is better for the campaigns if it does not look like they are partisan attacks. if you can take some of this information, give it to a reporter and say -- hey, i have a story about so-and-so's drunk driving arrest or messy arrest -- or messy divorce, and get a reporter to agree that it is

legitimate information. that is something both sides try very hard to do. jason: another major factor in the november elections? carol: women. to a new book, there has been an aggregation of rage over the past two years from the 2016 election to the need to movement and happening right now with brett kavanaugh. jason: here is bloomberg's rebecca greenfield with another misconception when it comes to women. the pointshe makes that women should be proud of their anger and society and men should be proud of women's anger. i thought i would come out on top and say -- i am angry about a lot of things going on. jason: in addition to being angry, you are also prolific. the piece in the magazine is very bloomberg-y because it talks about gender stereotypes

when it comes to investing. we think of women being risk adverse. the numbers say otherwise. reporter: we think women are risk averse, and women think they are risk-averse. there are other data however. data, amillion people's company found that women fell really evenly along the risk spectrum. there are the same number of -- that are high risk takers versus low risk takers versus medium. do fall found that men a little more on the high risk side. ir behavior is exactly the same. , even even the perception

women's perceptions of themselves does not match up with their actual actions, right? reporter: women perceive themselves as risk-averse. we internalize this thinking that we do not like to take risks and we are conservative. and the story.n she comes in and says she is risk-averse and her husband is the maverick. it turned out to be the opposite. if a woman comes in and works with a financial planner. we will put her in safe and stodgy investments. she might impact herself financially if she is not put in more aggressive investments which she really could deal with. reporter: there is a big investing app. when fewer women have invested, and those that have invested in best less money. it could be because of these myths being pushed on women.

carol: still ahead, a main headline from the week -- the north american trade deal done, finally. jason: where does the u.s. it in trade in the world? we take a look at that next on "bloomberg daybreak: australia --

jason: welcome back to "bloomberg businessweek." carol: you can also listen to us in new york and boston. and washington, d.c. jason: in the bay area and in london and on the bloomberg business after. after months of dramatic negotiations, president trump and the leaders of canada and mexico marked a new free trade agreement meant to pull the three economies together. carol: it finally got done and

winquickly recognized as a for the white house. it also served as a bit of a warning for china. with withry kudlow spoke alix steel in washington, d.c. >> regarding china, we have made it clear, the president has made it clear that china has got to trade -- change its ways. unfair trade practices. high nontariff barriers and tariff barriers are not acceptable. jointve to go through ventures with the chinese -- where they on the majority. that is where the technology is stolen and transferred right there. that puts us at a big disadvantage. they are stealing our family jewels if you well. we are the greatest technology producer and applicant in the world. that has got to change.

the president has been tough on this. one tor: on a scale of 10 -- zero is no communication. >> we are talking. with respect, i am not going to go there. talking is better than not talking. we have made our asks. they know perfectly well. as the president has said, their responses have not been satisfactory but that does not mean that they always will be unsatisfactory. the president has a good relationship with the chinese president. perhaps they will meet at the g 20. and we will see how it goes. shocker, it is about politics. not long ago, entrepreneurs around the world thought of america's first as a place to build their businesses but then the trump administration cracked down on immigration.

now, we see foreign entrepreneurs who may have chosen to base their companies in the united states are being pursued big-time i other countries. reporter: it is very much a little-known program called the international entrepreneur role. to allowadopted immigrants, particularly foreign entrepreneurs, to come into the u.s. and launch their own companies here. it was specifically targeting tose that would come here silicon valley or boston or chicago to launch their companies and higher american people. the obama administration had created the program and it was scheduled to go live in june of last year. a week before the trump administration rescinded it claiming the company was bad for u.s. workers. american, kind of buy

theyamerican program, discouraged entrepreneurs from founding their companies here. jason: the rest of the world looked up and said ok, we will get in there. and the response has been incredibly fast from countries, neighboring and others around the world including new zealand where you are from. reporter: exactly. the most interesting part for me internal domestic dispute rages in the u.s., the industry is saying this will be bad for the u.s. economy. and the trump administration pushing back and tightening immigration, you have seen a really swift response internationally from at least one dozen international -- industrialized countries.

thinking this is the chance for them to jump in. now, they are going elsewhere. we have seen canada, estonia, japan, israel, the u.k., germany, france, new zealand, and australia. everyone jumping on the bandwagon. thinking this is the chance for them to be the next key location. jason: what are they providing? what are the perks? reporter: israel has one of the most interesting programs. $20,000 relocation bonuses. free hebrew classes. accountants. free cell phones. and a six-day visa. -- and a six-day visa application program. jason: can cadillac make a comeback? carol: it rolls the dice again

about bringing back the ban -- the brand. this is "bloomberg businessweek ." ♪

jason: welcome back to "bloomberg businessweek." i'm jason kelly. carol: i'm carol massar. the. the of the u.s. dollar. is it time for regime change? jason: speaking of regime change, how amazon and netflix are raising the stakes against traditional tv studios. carol: the first, general motors

and honda are teaming up to promote self driving cars. will take a 6% stake in gm's self driving unit, another $2n spend billion on deploying autonomous vehicles with jim. with: gm's president spoke bloomberg's david westin. thisr mission is to deploy technology safely on a massive scale and having another partner on board that brings tremendous resources is another big step in that direction. point $25nvested two billion, honda is bringing $2.75 billion to the table and huge amount of resources. talked after the softbank investment, you set your goal was to have a real autonomous vehicle deployed in calendar year 2019. what does this deal due to that date? does it move it up at all? dan: that remains the goal. we are working as fast as we can

to get to that point. the main item to deployment will be whether we are operating at the right level of safety and as soon as we are, we will be ready to deploy. this partnership with honda really accelerates some of the effort that will come after that and in particular, we are going to work together on a jointly developed purposeful autonomous vehicle itch will roll out in the next stage of scaling after initial deployment. david: you talked about the purpose built. what is the purpose for autonomous driving? we won't have a steering will? dan: -- wheel? of the constraints we are able to releases we won't have a driver in the car, we won't have driver in trolls. it redesigns how the car can be used and how efficient it can be. this is the first time anyone will be doing that. a vehicle ready to be deployed

on a massive scale. carol: we will stick with general motors. here is the bureau chief. latest push for another cadillac rebuild -- reboot. >> general motors has talked about itself driving car as an advantage over competitors, and what did they do this week? they decided to sell a nearly 6% stake in its crews llc unit. billion.al for $2.75 it means that companies will jointly develop a self driving car and deploy it for different uses, robotech, you name it, all around the globe. they didn't really tell us when, but they are basically sharing their prized technology with a direct competitor. jason: it feels like general motors is all of a sudden putting the pedal to the floor at this point in terms of moving forward on self driving vehicles.

this is the second major investment in a month. jason: is that a car pun? >> be careful, there might not a inpetals -- be pedea cars anymore. automationght cruise for about $1.5 billion and softbank invested $2.25 billion in may, and that valued the company at 11.5 billion and this puts it at $14.5 billion. gm is planning to deploy a robo service in san francisco next year. they will be among the first to do it. maybe out a bunt -- out of it or google will be empty market -- each them to market. you will see robo testing from those cities in the next year. jason: let's talk about a well-known brand in the car business, and a car that for the moment still has a steering

wheel and gas pedal and break. cadillac. you had a story in the magazine this week that really tracks the history of this brand and gets to the point that this is another shot cadillac is taking to try and stay cool. tell us about it. >> i started the story with the sentence "there we go again," and for good reason. cadillac has been a hobby horse of mine over the years. this started over 20 years ago. cadillac had a president named john smith who later ran gm john showed off this art and science design at pebbles beach -- pebble beach in 1999. bring meant to really cadillac back, make it look modern, give it a new look and get some attention. carol: david: that was in david: 1998. david: i did a cover for business week asking can gm save

an icon? they were trying to bring it back back then and it had its fits and starts. in the early 2000's, it -- the escalade was a huge hit, they had a sedan that was popular and then they got into financial trouble and went bankrupt. now, gm only has one crossover suv -- two, just going on sale. cadillac was always kind of a low priority, even though you make a lot of money in luxury because when the company was in financial trouble that they needed to generate cash and the way to do that was to sell pickup trucks and suvs under the chevy name. now they are putting real money into cadillac. carol: still ahead, fed appearances. we hear from charles evans and patrick harker. jason: the u.s. dollar has been the international currency for decades. time for a change? carol: this is "bloomberg businessweek."

♪

carol: welcome back to "bloomberg businessweek." jason: you can join us every day for "bloomberg businessweek" on the radio. carol: you can phone -- also find us online at businessweek.com. had a busy week of fed appearances as jay powell spoke in boston and washington and bloomberg sat down with charles evans and philadelphia fed chief patrick harker. carol: they agreed to further

rate hikes, but different needs on further rate increases this year. was would you rate hikes this year, and that within the a high likelihood of one more area i am quite comfortable with the expect a path embedded in the median seps. >> my forecast right now, three this year, to next year, two that hereafter. -- the year after. i haven't seen acceleration of inflation. we have seen good job numbers. i don't think we have to rush the normalization process going back to neutral. >> this historically rare pairing of steady low inflation and low unemployment is the testament to the fact that we remain in extraordinary times. our ongoing policy of gradual interest rate normalization reflects our efforts to balance the inevitable risks that come with extraordinary times. jason: chairman powell went on

to reiterate plans to keep raising rates at a gradual pace. thatts are responding to rosy economic outlook, but some are issuing a warning. carol: this week in the economics section, the chief economic advisor at allianz and bloomberg's opinion columnist, he wrote about the fed's plans for interest-rate hikes. >> should be concerned about excessive promises given about liquidity, especially in liquid asset classes. they should be concerned about our high-yield bonds are trading and what that tells you about risk-taking, and the question is, is it enough to rely just on macro and micro potential policies? most people tell you that is necessary, but not sufficient and that monetary policy has a role to play. this led seems to be a little more comfortable with that notion, but we have yet to see how far they are willing to go with it.

>> you and i have had a discussion on what should guide the fed. what do you think is guiding the federal reserve right here, right now? mohamed: a very strong u.s. economy and because of that, both elements of the dual mandates are either met or will be met soon and if it weren't for the rest of the world, they would see a clear path to the same rate as is implied in the dots, if not more. theink it is the rest of world that makes them a little more cautious, but of course, they are not going to express that loudly. , itd: what you have said makes me think the tension after 2019, 2020 between market expectations lower than federal reserve expectations, does it reconcile with a market coming up towards the fed? mohamed: yes, absolutely. jonathan: how are they going to engineer that change and when do they need to make that

communication shift to get the markets to come with them? mohamed: they are doing it gradually. you have seen the market edge closer to the fed and the last two years, that has been the story. earlier, it was the fed coming down to the markets, but we have seen a change in regime. they do it carefully because they don't want to derail economic growth and they won't -- don't want to disrupt markets too much. it is very gradual, but ultimately, the converters will happen from markets going up to what the fed has re: signaled. jason: in his column, he asks a key question. will u.s. economic growth dip or will the rest of the world start to catch up? carol: taylor riggs has a bloomberg terminal chart to help us. taylor: always a terminal chart to help us out. i am looking at u.s. indices versus industries -- indices of the rest of the world.

we have normalized it back to the election, a key date and a correlation run-up, look at this. that was tax reform, when the u.s. started to outperform other countries. as you know, even higher interest rates, the strong dollar and economy, third quarter earnings off to a strong season, all of this pushing the u.s. equities higher, creating the divergence we are seeing relative to the rest of the world. jason: very start. -- stark. that brings us to another paradox, the dominance of the u.s. dollar. u.s. share of the world economy has drifted lower for decades, yet the dollar remains almighty. businessis chart in week, america makes up two thirds of international debt and a global share of reserve holdings. oil and gold are priced in dollars, not euros or yen and somalia pirates are holding up ships at sea for dollars. jason: is the dollar dominance unraveling?

peter: the u.s. share of world gdp has fallen since world war ii when it was skyhigh in a roller coaster kind of way. yet, the dollar's role some -- just as important as when brett wins was being formed. it is used in transactions, european company might buy a european product come yet price in dollars. oil and gold are priced in dollars. most countries have the majority of their reserves to foreign currency in u.s. dollars. ours is in gold. overall, the dollar is the currency everybody links to, even russia, when it is figuring out its exchange rate, tries to stay in line with the dollar, and the chinese yuan. carol: the big question here is, the almighty dollar? to not being the

almighty dollar and what are the consequences of the united states as a result? peter: that would be a very long, slow process just because in this path dependence, it is hard to dislodge a currency. but jack lew warned in a speech that you don't want to overuse sanctions. be, first of to all, everybody is in this together and second, if there is evidence if a country subject to sanctions has not mended its ways, you want to remove -- has mended their ways, you want to remove those sanctions. iran was the implication, and trump seems to be violating those principles. in a way, this gets the back of the rest of the world up and they say, we really want to disentangle ourselves from the dollar. even if it might not happen quickly, it could happen.

jason: if not the dollar, what? peter: that is one of the reasons -- the euro doesn't even real have a bash have a real government behind it. no fiscal taxing authority, and the chinese government doesn't seem to be willing to have the openness that would be required of a country with a reserve currency, so the u.s. is by default the world's reserve currency. carol: coming up, traditional studios tired of being outmaneuvered by netflix are fighting back. jason: and we hear about the rise of streaming services. carol: plus come up for one flower business, it is definitely blooming. jason: this is "bloomberg businessweek." ♪

jason: welcome back to "bloomberg businessweek." i'm jason kelly. carol: i'm carol massar.

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. jason: in london on dab mux 3 and in asia on the bloomberg radio plus app. it is hard to count all the ways netflix and amazon have disrupted the entertainment industry. carol: and threatened. in the latest episode of "the david rubenstein show: peer-to-peer conversations," there are -- is a discussion about how the giant could overtake the movie and tv industry. movie and expect television companies to be bought by these tech companies? >> i think they will supersede them. the two companies that are really dominating right now are netflix, run totally outside of the infrastructure of the entertainment business, and

model ishose business absolutely antithetical in a way to what the business model of entertainment has been, which is you put on a show and people like it and the audience comes and they pay you. their business model is to sell subscriptions to prime. as a subsidiary, they give you good stuff on the side. david: worked out pretty well. jason: let's stay with netflix's threat to the industry. has netflix commits to spending more money on country -- content, it is draining talent from the network and studios that used to dominate hollywood. carol: established companies are having to draw battle plans to keep their stars in the fold. lucas shaw sets the scene. lucas: netflix put out the first couple of shots last year, signing chandra rimes and producer ryan murphy, the producers of gray's anatomy and

american horror story. two of the most prestigious show runners in hollywood. down so muchgh money and got so much -- many headlines for those deals, it sent shockwaves through the entertainment industry and forced other tv studios to reassess how they are making deals with high-end talent. so we started to see over the last few months some of the other studios adjust the types of deals they offer and how they are approaching their talent. the most notable example being a producer. with that produces 15 shows on the air right now, the most of anybody ever. >> you are talking about big money, 240 million dollars for ryan murphy, chandra arrive was about $150 million. do they have a preference or will they go where they get the big bucks? lucas: it depends on who the person is. in the case of chandra rimes, she was pretty unhappy at disney

and abc. disney only provided one outlet for her, abc which is broadcast tv, which is you have a lot of rules about what you can and can't do. cursing, no nudity, you can't take a lot of political stances. chandra rimes is pretty evocative in her work and can push the boundaries of limitation -- entertainment and wanted to make shows you might see on an or netflix that wouldn't work at abc. summary like greg bramante is happy in his lane. they all want the most money they can get, and the dirty secret of those big numbers, the rsg $juicy you see -- dollas you see netflix shelling out, it is a lot of money in the front-end and very little money in the backend. it is not clear if they will make more money or less money than they would have. carol: that is 80 key point. that backend is how you that producers used to get money.

whether it was reruns for years and years later, you think about tom warner in your story behind the cosby show and others. he made an awful lot of money that way. lucas: yeah. list of famous tv producers and show runners who ofe hundreds of millions dollars and in a couple of cases, more than that because of make ation, where you show for cbs, nbc, a main network come and it gets reruns and vhs tapes and dvds, and you get paid for the next 40 years. that market for syndication has started to dry up in large part because of netflix. you don't see a lot of shows getting sold for multiple million dollars in reruns and those types of deals. so you are having to accept more money up front. however, in the rare case you have a huge hit on a broadcast network, there is still a lot of money in that back end. shonda rimes, i'm sure, still gets paid a lot of money for

reruns of gray's anatomy and she made a populated choice it was worth it to her to have the creative freedom at netflix and get all the money up front, and sacrifice maybe a little money on the backend. netflix,nd works in a amazon, hulu world, we are still working out. jason: in the pursuit section, also a hollywood angle. carol: everybody needs a flower guy. here is editor chris rouser on the floors to hollywood royalty and real royalty. >> for the cover story this week, we looked at the flower industry, which tends to be a coincident index of the economy. in boom times, people are spending more money on flowers. people right now are spending a lot of money on flowers. one of the guys doing really well is jeff flake him in l.a. --latham in l.a.. he is the florist to royalty and hollywood royalty. jason: he got his start in saudi arabia.

spans the prince and kris jenner has got to be doing something big. >> he became the florist in residence in paris and turned the lobby into a tourist destination. spends more than $1 million a year on the flowers and met a lot of celebrities coming through the hotel. he befriended the kardashians and did kim and kanye's wedding and this has made him very famous. carol: the lobby is how he met the clintons, opera, and ended up doing flowers with them. was an assistant job at the hotel and it skyrocketed into this other business. propelled by been social media in many ways because now, the world sees this and they want even a small version of these hundred thousand dollar, multi-hundred thousand dollar, million dollar arrangements. to call them an arrangement is to understate what they are. >> he has 900,000 followers on

the internet and he says brides will spend more money on one big statement piece people will take pictures of than the rest of the flowers at the wedding. "arol: "bloomberg businessweek is available on business stands now. jason: and online and on the mobile app. must read this week? carol: the first two stories we covered. the big hack, our cover story this week. incredible implications. it is an investigation that has been going on for several years. he still don't quite know how it will all play out, but we also talk about software. this one is about hardware and the implications are darker and deeper. i feel you have to sit and digest this, because there are some of the about investing, running a business as well. also, sit and read josh green. this is really a different take, taking you into the underbelly of politics where 30 days out

from the midterms, a lot at stake. carol: exclusive stories, lots of details. jason: more bloomberg television starts right now. ♪

♪ emily: i'm emily chang and this is "the best of bloomberg technology." coming up, china's big hardware hack. bloomberg reports that china may chips to embed in companies, creating a self store way any networks that use these machine. ambitions, we care from the ceo on their plans for