♪ carol: welcome to bloomberg businessweek. jason: we're here in new york. carol: bloomberg businessweek is releasing its 30th annual ranking of the best schools in the united states. stick around for the winner. serioushe search for returns in the decade since the financial crisis. carol: u.s. midterms.

,emocrats taking the house republicans increasing their senate majority. how will this impact president trump? jason: josh green joins us. thank you for being with us. help us understand. what changes? h: as crazy as the first two years of trump presidency have been, democrats have not had any recourse. now they do. winning back the house gives them oversight power. it gives them subpoena power. trump is going to have a real adversary. -- haveemocrats habit it? josh: yes. the majority party in congress has always had subpoena power. usually it was a bipartisan affair.

subpoenas were used sparingly. that changed when republicans decided they wanted to go after bill clinton and gave the chairman of the oversight committee unilateral subpoena power. it was expanded to go after president obama. republicans wanted to bolster their arsenal. democrats.ngs to you can bet they will use it to go after president trump. jason: you talked to steve bannon in your must-read book. what did he have to say? this is taking a bit of a turn. worried, like most trump supporters. he says he will have subpoenas flying and all of these people in the administration were -- protected by republican control will have to answer. this will be a real thorn in the

side of the trump administration. whither it is microsoft border or the firing of jeff sessions, this is now something democrats will have the power to investigate. carol: are the subpoenas going to make a difference? sh: congressional subpoenas have traditionally been powerful. but democrats and republicans have stonewalled them in the past. that is why progressives have set up outside groups like judicial watch, which made a name for itself filing lawsuits. democrats now have their own groups, american oversight, who were going to try and bolster the strength of the subpoenas by using the power of an outside court to try to compel the white to have officials come and

testify. ason: we were talking about this massive shift in the suburbs away from the republicans and to the democrats. that was a huge stronghold in 2016 and helped trump get elected. we saw a big shift. what were the locations -- implications? josh: this used to be the republican stronghold. these were white-collar, educated people who sent a steady stream of republicans to the white house. all of the suburbs are now democratic territory. trump has forced that change. areas, which are important in congressional have moved closer to republicans.

democrats won a fairly sizable majority in the house. side, you havete greater republican strength than ever. you will have a republican caucus in the senate and the house even trumpier than before. all the moderates have retired. the screaming headline in the new issue of businessweek is that things get even crazier from here. now that democrats have that subpoena power, it is all but guaranteed. trump started out by saying, maybe this is good. in the next breath he said, if they investigate, it's war. i would bet on war. most on capitol hill are. was this exchange

house, followed by nancy pelosi, followed by jeff sessions resigning. that was day one. josh: imagine what happens when democrats try to get trumps tax returns? carol: you said the last two years we have had will be the smoothest of the trump presidency. josh: it's almost inevitable. there are areas of policy, infrastructure, border security. you can see the two parties coming together on those. you just have to look at the democrats thirst for vengeance and trump's frustration and anger at the outcome of the election and ask if there will really be bipartisan cooperation.

carol: do democrats have to be careful about anger? democrats have traditionally used it for checks and balances. recenthave seen republican chairman use this for political theater. some of these things got very extreme. a danger for democrats to abuse this subpoena power to embarrass or humiliate trump officials, it could cost them the 2020 election. jason: 20 was exactly where i was going next. all of this happens as we move toward the reelect. josh: it started yesterday. we are already in the middle of the cycle. you were going to have this fighting in congress, more contention. it will be a heck of an election. rol: there are so many

political stories in the magazine. let's bring in the editor of bloomberg businessweek, joel weber. you covered this story a bot of different ways. -- a lot of different ways. joel: you had a josh green writing that. carol: it will be a heck of a few years. joel: what does this all mean? we will watch this unfold beginning in january. between now and then, we want to also talk about other implications, one big one of the election being trade. this is something we cannot take our eyes off of. way this came up in this week's issue was about lobster. there is this iconic maine industry that's been affected

because of the growing appetite for lobster. when trump announced the tariffs, china put tariffs on mobsters. -- lobsters. china is not buying them from maine anymore. carol: the other focus is about mba schools. joel: we've ranked business holes for 30 years. -- schools for thirty years. we wanted to make it extra special. thousands of people were surveyed. we did frankie's differently and we are very excited. -- rankings differently and we are very excited. joason: we will get to that later. our coverage of the midterms continues with some thoughts on what they mean for president trump. win a record number

of seats in the house. jason: this is "bloomberg businessweek." ♪

carol: welcome back. jason: join us on the radio every day from 2 p.m. to 5 p.m. wall street time. carol: and on her mobile apps. mobile app. jason: president trump will soon be on the receiving end of some pointed questions. carol: it will be a different environment. 30 could be subpoenas for officials to answer on controversial policies. here is our congressional reporter. congress has had subpoena power dating from the teapot dome scandal.

carol: this got ramped up? additional powers were ,dded for the chairman in 2015 without consultation with the other party. hmm.rats are saying now, useful.his could be there wasn't so much a speculation about what democrats would do if they won the house so much a speculation about what democrats would do if they won the house. illy: this was from republicans. democrats ever peter b said republicans -- repeatedly said republicans have not use their

subpoena power very often on scandals with cabinet officers, or looking at the trump policies. democrats have said that is a responsibility of congress. carol: is it looking into the president's taxes? what are some of the top things? schiff suggested we should look at to the syrian ties with the trump family, from khashoggi's slaying. seems muted.ponse or the alleged caravan that's going to attack the u.s. at anyp point. what are trump's motivations?

aspectand teh financial -- the financial aspect. democratically controlled house, do they pursue this? billy: absolutely. the incoming chairwoman has tried to get subpoenas for two y head of thethe financial services committee. waste no time launching that. she has said it is payback time for banks and wall street in it -- and insurance companies. it should be a lot of fireworks. women one more seats than ever before after a record number aof ballots across the

country. jason: but is this symbolic, or bullet impact policymaking? -- will it impact policymaking? still, 75% of the power will be held by men. carol: perspective is important. >> it is important to reelect people and keep the moment going if you want parity. that is why we have to keep getting people elected. what were the driving factors that got so many women running this time around? becca: a lot of people pointed to the election of donald trump as a catalyst, and the loss of hillary clinton. you have a woman who a lot of

people thought was qualified, and a man who has said things sexist, or that they don't like, which galvanized women to run. there are a lot of people who disagree with that. i?he can do it, why can't #metoo movement had to play as a backdrop. some even said that the movement came out of donald trump a little bit, with the access hollywood tape. when women do not have power, it is not coming out that while. -- that well. jason: with the house turning to you were going to have a number of prominent women in leadership roles.

-- nancyosi, == nancy pelosi, obviously. for long-term change, you have to hang around. who aren't the gainingd new people are significant power. a women will chair the appropriations committee, how the budget is doled out. that will be an important way the democrats get anything they want. for people who have been in congress for decades, getting reelected, having the right relationships, that is how women are going to make their mark. the company's

controversial plan to bring its search engine to china again. jason: and the recent silicon valley selloffs. is this the new state of the tech market? carol: this is "bloomberg businessweek." ♪

jason: welcome back to "bloomberg businessweek." you can also listen to was on the radio, in new york, boston, washington, dc -- >> in the bay area and in london. google and the great firewall of china, in the feature section this week. google is blocked by the great

firewall of china. it decided that having to edit controversial links was unacceptable. jason: has google now reconsidered? was they were going to make a series of compromises with the chinese government. the chinese internet is very different from our internet. there, youusiness have to deal with the government on a continuing basis. you will have to make sure that various stories told the party line, -- toe the party line, as it were. the government really increased company.ure on the they were censoring 100 or so words. tens of thousands of

source.s -- of sources. to the source code of google? max: the chinese intelligence agencies were looking for information about dissidents. there was a secret meeting in a place known as helm's deep. you will get the reference as a lord of the rings fan. jason: where the eye of sauron cannot reach. carol: you guys are such nerds. by: ericide was led schmidt, in favor of google in gauging globally. the other side was sergey brin.

he was born in the soviet union. he had very strong feelings about censorship. his position won out. google left china. that is where things have stood for the last eight years. rol: 2016 they start trickling back in? ax: lots of little attempts were happening even before that. the big effort included this 2016.called dragonfly, in the big thing in this story is the current ceo. there had been6, teams in china. one arrieta he was involved in -- area he was involved in with android.

androids are even in china. google started paying attention to their usage. there was an effort to develop a chinese android app store. that is something that apple had, but google did not. the was the hope this would be a side door into china. it did not pan out. rol: is this months past selloff a sign of a new era for the tech market? jason: here is michael regan. michael: in caddy shack, april girl throws a baby ruth candy bar into the pool that's mistaken for something else. there is a mad rush to the exit. these tech stocks, especially cks, they have

trade, andowded there has been this panic exit from the trade. to go back and explain how it became so crowded, these are the main influences on the stock market. goldman sachs has a list of hedge funds. they are more heavily weighted than their weight in the s&p 500. these are key stocks for hedge funds. factor investing has become super popular. -- it is about building a better mousetrap when it comes to picking stocks. gains in much of the the rise of the market had to do

with a few big tech names. there were a few chinese companies. michael: they have followed the same trajectory, like alibaba and tencent. they sort of have their own idiosyncratic issues in china. it is kind of the same story, to some degree. we saw this meltdown in tech names, close to a trillion dollars. in some cases, facebook, down more than 30%. that is apparel of a crowded trade. -- the peril of a crowded trade. we have our 30th annual ranking of the best business

schools. gloucester's seem to be trapped in the trade war. --on: this is michael: "bloomberg businessweek." ♪

jason: welcome back. wall: still ahead, street's new risk machine. jason: and trump tariffs have inflicted economic pain on maine's most iconic industry, the lobster. carol: first up, bloomberg

businessweek releasing its 30th annual rankings of the best business schools. over 20,000 students, alumni, and recruiters were interviewed. jason: there is a new methodology looking at networking and entrepreneurship. with the best drinking, stanford university -- stanfording, university. -- it is great to be ranked number one. yossi: this is something that captures the mindset of creating new values. this is what we teach.

graduates will go on and create these two values. -- new values. carol: everyone at bloomberg has been talking about the world being disrupted. that includes education. you had to adapt and change programs. yossi: absolutely. it's not only traditional industries being disrupted. if the rate of disruption that accelerating -- it's the rate of disruption that is accelerating. carol: what have you had to change in the last couple of years? yossi: there are certain things you want to keep. you want to have a rigorous basis for everything you teach. ensure that as analytics become more central, there are students with new

skills. you have to constantly change the curriculum in that way. >> we're here, at the heart of entrepreneurship, innovation. people have this romantic view of two guys in a garage, creating something. you focus a lot on corporate entrepreneurship as well. how do you train someone to be an entrepreneur within a big organization? yossi: its openness to new ideas and the drive to create new values. you think about the leaders that have to strive to create new values. that is central. to be a leader that has empathy and compassion and , so that values become even more important as

technology evolves. jason: we spend so much time talking about think attack. how thisthink about environment has changed, and the thequestions we are facing, leaders of technology companies are based miles from here. as they come here, personal development and the , it is being part of a community that strives to do well, and do better for the world, not only for themselves. >> thinking about the whole world at large, diversity is always important. students are very important to stanford.

tougher forg corporate visas to be processed for some foreign students. yossi: the global trend in is --ations carol: slowing down? yossi: something we see. the opportunities graduates have are still fantastic. the industry is still looking for amazing talent. the other part of it, opportunities globally are increasing all the time. we talk about edge of ownership -- entreprenuership. the accelerated pace of change. stanford is followed by

the wharton school, harvard, ndi.t.-sloane, adn chicago's booth school. jason: taylor riggs helps us break down the scores. taylor: let's do this live in real time. see the compensation you get when you graduate, the learning experience, entrepreneurship, so when you get out, you can start euro and company -- your own company. harvard has the largest endowment. dig in deeper. you can see how they rank relative to all of the other business schools.

andyone should go online check this out. carol: there are all these different metrics. jason: and you can compare and contrast. thanks. carol: for more, we have our bloomberg senior editor. caleb: we did something completely different. most entities that frank business schools go, this and this and this is important -- link business schools go, this and this and this is important. alumni who has been out of school a couple of years and corporate recruiters, what is most important to you. compensation was overwhelmingly the most important thing. rated toare mostly

compensation. what are you earning when you get out of school? do you get a bonus? carol: what are the other indices you looked at? >> networking is linked to compensation. how close are the alumni to you? lumnus, is the alumni network a real thing, or just this myth? halo impact of one degree versus another? that was the networking index. the other two are leaning. -- learning. -- for alumni, how was valuable was what you learned in school?

jason: the pitch for private deb, ahea and cracking opend. carol: and cracking open the impact on the lobster industry. jason: "bloomberg businessweek." this is ♪ carol: welcome back.

join us every day for bloomberg businessweek on the radio from 2:00 p.m.-5 p.m., wall street time. carol: you can also join us on the mobile app. it might gets worse -- get worse, before it gets better. the way this trade issue will be resolved are difficult. there are not that many usual channels we can use. think there is an

instant remedy for the trade issue. i wish i could say, after the the white house understands they have to seoul trade issues -- salt trade issues -- salt trade issues. making china comrades again. this is a bot how moscow and beijing are as close as any time in their 400 years in their shared history. on and offn an relationship for centuries. since 1972, when nixon famously the u.s. and,

china have had a very good working relationship, very engaged. they were ideological opposites, but they always had a good relationship. that was directed really at the soviet union. the time, there was a chinese port of war in 1969, around the with theth a soviet -- soviet union. it was a massive change and anna nordqvist when for the united states. noticing,hout us russia and china have now reversed that. , in whichof triangle the soviet union was so far that is not the same.

sanctions are now on both countries. you have a trade war with china. there is a big discussion now in washington about how bad news is this for the united states? carol: help us understand the role the current u.s. administration has played as a catalyst. it feels like a new development. >> there are two things to say. it is not all president trump's fault. that beganething under mikael gorbachev. a long time ago. it did not really amount to a great deal until around 2014. crisis betweenis the west and russia ukraine.

russia, very consciously, tried to pivot to china. they started negotiating to build a gas pipeline. sense, but they had been negotiating for decades. they could not agree on price. thethen there was annexation of crimea. they could not come to an agreement with the chinese. there, they were gradually building more pipelines. the russia in 2015 overtook saudi arabia. these are really big changes, geopolitical changes. ite you build that pipeline, takes a long time.

this is true with both of the oil pipelines and the gas pipelines that it takes 30 years or more to build. there has been some unintended consequences with president trump's economic relationships in the united states. carol: private exports -- bourbon, motorcycles, and maine lobsters has become retaliatory targets. do not happen in isolation. they happen in conjunction with other forces. learning,i started this has only scratched the surface in terms of the lobster industry. while are things really good in the lobster industry? carol: slow down. i've had no idea about any of this.

>> if you look at lobster production in maine, it's about 20 million pounds a year. then what happens, the golf starts to warm up. you get this kind of lobster temperature, in terms of reproduction, that hits really productive fisheries, in the population just starts to boom. 2016, that 20 million pounds you , you are seeing 120 million pounds of lobster. jason: what are the trade war is

doing to this business? -- trade wars doing to this business? >> that population surge has coincided with big export markets in china. exporting something like $30 billion worth of lobsters to china. is $100 million in the first nine months of this year. then it took a dive. are classic collateral damage products when it comes to the trade wars. 25%a started imposing a tariffs on lobsters from the u.s.. they immediately raised prices chinese.

now china has said, "cheaper from canada. -- we can get this cheaper from canada. money tonding businesses directly is having consequences. carol: and the holiday gift guide. jason: this is "bloomberg businessweek." ♪

jason: welcome back. carol: you can also listen to us on the radio on sirius xm, and in new york, boston, washington, d.c. -- >> in the bay area and in london, and the act -- the app. big banks have been pulling back on one's. -- loans.

funds have plenty of money to play with. funds not lend money to businesses directly? carol: jumping in to fill the gap. here is our editor. pat: they run business development corporations. it's often a kind of stock. what you were really getting is a portfolio of investments. it is primarily in corporate debt. debt to theate kinds of companies that might not be able to get it from a bank. you are looking at riskier debt and midmarket companies. a lot of institutions may be invest in this kind of thing.

a lot of private equity funds are getting into this. investors could buy a publicly traded bdc. jason: this has long been considered the holy grail on both sides. retail investors somehow of access to these great returns. the private equity guys and other investment managers get access to a much bigger pool of investors. but it is not without some significant risk. pat: things have really enticing yields. yield, youe a big should ask yourself about the kind of risk you are taking. at there has always been month -- market among high-yielding investments.

they don't pay as much attention to, how is my principal eroding? making investments in riskier, smaller companies. they are lending money to them. you as an investor are participating. jason: it is that time of the year. the holiday gift guide. carol: we caught up with our editor to take luxury to a higher level. theme is "leveling up." if you have a pair of gloves, we want to give you the perfect gloves. it was really fun to put together. jason: what's your favorite? he -- it's this bke bike helmet connected to your

phone and remote on dollar -- your handlebars. it can give you turn by turn directions and light up signals on either side so cars driving in the dark can see which way you are going to turn. you can answer phone calls. carol: do you still here with going on around you? chris: yes. it goes for $169. carol: another one? chris: it's called mr. black. coffee liqueur. i'm a huge cold brew person. queur that tastes like

cold brew coffee, with a rich flavor. they recommended cocktails with it. they said have it with mescal, but it's actually really good. the flavors really work together. this is really versatile. everyone we've given it to really likes it. it goes for $40. --on: you are levelling up leveling up your liqueur? chris: coffee. carol has a new christmas present. this is a $670 ultraluxury cream. bathrooming up your was one of my favorite sections. i am wearing the claim he

recommended right now -- clay we recommended right now. carol: bloomberg businessweek is available on newsstands. jason: and online and the mobile app. carol: the must read was max's story. google was in china a while ago, backed out of it, and they've been working their way back in. a lot of conversation around it. tightly, especially given questions around the big tech stocks -- timely, especially given questions around the big tech stocks. green is taking us into the implications of the midterms. he examines the trump administration as it heads toward a potential reelection. it is bananas. you can find more stories

on businessweek.com over the weekend. ason: more bloomberg television starts right now. ♪

♪ emily: i am emily chang. this is the best of bloomberg technology, where we will bring you the best of our interviews. coming elections worldwide, where despite the meddling outcry, facebook and google are the big winners of the night. and the most influential tech investor from russia is not overly concerned about facebook and election meddling. wer