♪ carol: welcome to "bloomberg businessweek." i'm carol massar. jason: i am jason kelly. we are here at bloomberg's global headquarters in new york. carol: in this week's issue, the predatory lending machine crushing small businesses in the united states. jason: the shocking downfall of auto executive ghosn. carol: some stocks have lost over $800 billion since the end of august. jason: that is amazing.

putting silicon valley on edge. raising concerns, have we reached peak tech? here is our reporter. joshua: these companies have insinuated themselves so far into our lives, that there is not that much more of a place for them to go. with apple, they cell phones. ir main business. people do not buy phones as frequently anymore, and there is no reason to buy the new one, because they have gotten so good. jason: and one of the signs that apple may not be as enthusiastic about their phones they are not , going to give unit growth numbers. when you tell investors we're not going to give you growth numbers that is a signal to , investors, we don't think we will be selling quite as many phones. jason: you don't usually hold

back good news. carol: we are trying to reconcile that earnings for all these companies, even though they are different stories we , are seeing this dramatic slowdown, with so many of these names. we have been here before. people have said big tech, they are over. shame on us. we have been fault where they rallied again. we are trying to make sense of where we are. joshua: before you write a story about how big tech is troubled, you want to go back and look. from 2012, 2014, and last year talking about how we are in a bubble. because she just when you say these companies are about to fall off on a cliff but there is a slowing and it is difficult to avoid. carol: we talk about google. they are not just a young startup. they are acting like a more traditional company. we are seeing that with a lot of big tech names.

they have been around. joshua: exactly. this is the maturing of an industry that has been revolutionary over the past decade. it was inevitable. people said, everybody knew these companies were going to slow down. they could not grow forever. it is the nature of public markets. you get too excited when things are good and pessimistic when things are bad. jason: how much of that plays into -- the stock market is measuring enthusiasm more than anything else. joshua: part of that is coincidence. when you have companies that make products that are such a big part of our lives, everyone will have an opinion. there is a connection. the interesting thing will be, as these companies start to hit leaner times, they will have to squeeze profits in ways they have not had to do before. jason: the other thing -- carol: the other thing, as you get to

be more dominant, everyone you and your power. i feel like that's been true with social media because of the meddling into elections and privacy issues. then comes the regulators. that can change an industry. joshua: that is one of the things going on. investors and the companies, really there is an anticipation something will change. they don't know what, but that some regulation will come. is it antitrust? new privacy rules? there is a fear that is going to make these companies less profitable. also, some uncertainty about what that will look like. carol: we turn to the cover, a story on how your legal documents a high-speed debt collection machine is chewing up small businesses across america. jason: the shocking arrest of a larger-than-life figure in the world of business. here is businessweek editor joel weber. joel: he had a bit of

compensation that wasn't accounted for, to the tune of $44 billion. a lot of this story we do not know but this was a global executive for the globalist era, mr. davos was one of his many nicknames. mr. fix it. he was felled by this massive company he had built. it seems to have been one of the things that came back to undo him. it is almost like he has met his maker. and that tension is between japan, where nissan is based, and renault, which is based in france. the structure of that seems to be unfolding and unraveling. jason: turning to the u.s. cover, a compelling story, in-depth investigation, not an upper. ael: this is a story about small business loan cash advances that have come to their own after the financial crisis.

when small businesses could not get loans from places like banks so they were getting cash advances from various companies. when you sign a contract, there is something that is known as a confession of judgment. in most places, this is it illegal. they have outlawed it. it happens that new york state still recognizes it. so what we're seeing happen is, basically, these small business loans have been weaponized and this confession of judgment statement can be used against you. the moment there is any lapse in seize assets can and put you into bankruptcy. carol: even if there is not a lapse in payment, they could say something is wrong with the loan and there might not be. joel: that is the frightening

part, how shady the underbelly of this industry is. there were cases that they dug into where there were wholesale changes after the fact. someone signed something, and lo and behold, the documents get changed and it gets rubberstamped in the court. it's a frightening story, one of those ones we wanted to look at. jason: coming up, more on how lenders are using that document to seize assets from small businesses across america. carol: is it the end of the cult of carlos ghosn? jason: this is "bloomberg businessweek."

carol: welcome back. i am carol massar. jason: i am jason kelly. join us every day on the radio. find usou can also

online and on our mobile app. jason: we continue with our international cover story, the end of the cult of ghosn. carlos ghosn was arrested over financial misconduct allegations. it sends politicians and executives scrambling to figure out the future of the world's largest car alliance. carol: we have what it all means for nissan. >> this guy is larger than life. this is a corporate executive that has been a subject of a comic book series in japan for the superman of saving the auto industry in japan. in the 1990's, nissan was failing and ghosn took this moribund automaker and turned it into a competitor.

jason: remind us who he is and where he came from. he came up through michelin. as you say, he becomes this messianic figure in the car industry which, at the time, was facing a crisis. even bigger than that. >> he came up through michelin and got hired by renault. he worked there for a couple of years, and then they sent him to japan to try and fix nissan. he, at the time, gave himself a 50-50 chance of succeeding. he succeeded amazingly. nissan has grown dramatically. it now sells more cars than renault. its market cap is almost twice the size. he has flipped this thing on its head. renault came in as the savior. nissan is kind of a bigger

company in this alliance. jason: even the alliance was a novel concept. he came into it when it was early on. and yet, he became the primary architect of its success. what was different about this tie up? david: they are aligned, not merged. they cooperate, work together, and develop models together. but they still have two distinct corporate cultures and stocks. there is a lot of separation. ghosn sat at the top of this whole thing. he has been chairman of the companies as well as chairman of mitsubishi at various times over the years. he was always the guy who held the reins of power. in this alliance, there is very little in the way of real structure. it is these corporate

cross holdings, which are murky. ghosn sits on top of the whole thing. jason: he was the structure. carol: that was where i was going to go. you spoke with an analyst in commerce bank and he said this alliance is heavily bound up in the personality. there are a lot of these companies that are identified with an entrepreneur. this guy put together this partnership and made it work, to make it something significant. now he is not going to be there. i am curious about where this goes, especially at a time when the global auto world is changing and being tested by electric vehicles. david: the ceo of nissan is kind of trying to rewrite the script. at his press conference monday, he said, you know, this alliance is bigger than one person. it is due to the heroic efforts

of many people at this company. without specifically naming ghosn, he said, it is not just carlos. jason: we put the story to bed as events were unfolding. head to businessweek.com for the latest updates. carol: from cars to confessions we go. this cover story has to do with the confession of judgment, helping debt collectors shore up small businesses across america. jason: it is an ominous term with big consequences. here is our reporter. >> if you are a small business owner, like a contractor, you own a restaurant, you probably get calls all the time from people offering you loans. these guys, they are running companies -- the loans come from companies called merchant cash advance companies. carol: a mouthful. zeke: these guys can get you $50,000 at a very high interest

rate. in the loan application, you may not notice this but there is a page can called -- called the confession of judgment. you have to sign this and what you're saying is in the future, if there is some sort of legal dispute, you will lose automatically. it is like when you sign an arbitration agreement as part of your cell phone plan. you are not even saying, we want -- we will not go to court. you are saying the lender can go to court secretly, no need to tell you no need for you to have , a lawyer. show this confession of judgment and the borrower loses. jason: how did this become a thing a lender can do? zeke: these have been around hundreds of years and they as are used in less abusive context s, like if there is a legal

sediment -- settlement and you have already negotiated. you might have one of the parties assign one of these. it is easier to settle. but these cash advantage companies realize our wars were defaulting and they had trouble collecting. borrowers were defaulting and they had trouble collecting. once you get this signed, you can win automatically and you bankeize the borrower's accounts and have their money sent to you directly. jason: there is no judgment. as you say, the judgment has already happened. it has been processed by a clerk. zeke: there is no judge, no need for proof. basically what happens is, the lender sends you the money. these guys require daily payments. you get your $50,000 and you start paying back $800 a day. missedlender decides you too many payments or even, it

does not matter they can go to , court. carol: they can even make stuff up. zeke: we found abuses. once they have got this power it , is pretty tempting to say, to go to court and file this. you can get all your money back with interest, immediately. carol: i love that you say that. the courts become a high-speed debt collector for these merchant owners of capital. zeke: the courts may not even realize the role they are playing in this. it has gotten huge. there have been 25,000 of these cases filed. carol: coming up, why the new nafta has a long road. jason: the democrats top election lawyer gearing up for 2020. carol: this is "bloomberg businessweek." ♪

♪ jason: welcome back.

i'm jason kelly. carol: i am carol massar. you can listen to us on the radio in new york, boston, and washington, d.c. jason: in the bay area and in london and our app. in this week's politics section, the new nafta is scheduled to be signed at the g20 conference at the end of this month. not about to be become law. house appearstile reluctant to give president trump the win he craves. we look into the long road ahead. >> we're hearing from house john the kratz they don't -- house democrats they do not like what they see, the enforcement measures. for the labor provisions there are new requirements that mexico allow the creation of independent unions.

basically, a dress what has been one of the bigger concerns for democrats and labor unions in the u.s., which is the wage gap between mexico and the u.s. the labor unions here argued that if you have more active mexico, they will push for higher wages in mexico and that will close that gap. the second thing is a bigger fight over trade. if you remember back to 2016, donald trump stole the democratic thunder in rust belt states by arguing against trade pacts like nafta. carol: talk about bob lighthizer. he is donald trump's trade czar. tell me about his role in all of this and the mission he is on. lighthizer is perfectly suited for the job. he served in the reagan

administration but has been one of the rare, protectionist voices in the republican party. newas also argued with this nafta that we should be trying to remake the politics of trade agreements in washington. he has tried very hard to solicit democratic support and the support of unions for this deal. his argument is, if we can get a new paradigm on trade that will be better for the politics of trade in the long run and perhaps get a less toxic environment. carol: you have a quote in your story this week. it is from the new jersey democrat. my home state. he made a statement. he is going to be in charge of a house ways and means trade subcommittee. he said the deal was not a deal. i do wonder about the balance

democrats have to take in moving forward that if they push too hard and push the president into a corner, we know the president has pushed back already on trade. might he just walk away from the deal altogether? shawn: thanks to pressure from the business community and capitol hill republicans and others, he has moved to renegotiate instead. but he probably wants to pull out and do something big and dramatic. if democrats keep pushing too hard for changes he doesn't like, may trigger that instinct in him. the big question is as to what that would mean politically. if you look ahead to 2019, people are worrying about the economy and arguing growth may have eked. -- may have peaked. if we get a withdrawal from nafta, that would prompt a serious reaction in financial markets and economic damage. carol: a profile of a democratic go to lawyer in election

trumpts or as president labeled him, the democrats best election stealing lawyer. jason: he suffered a rare loss in bill nelson's florida recount battle. he said a president that may boost his party's chances in 2020. >> he is an election lawyer. he deals with all kinds of things that come up in elections, everything from how campaigns raise money to how you count the votes. he is at a very prominent law firm called perkins-cooley. he has been a key figure in recounts going all the way back to 1996. he was the general counsel of hillary clinton's campaign and he kind of figures in a lot of the different controversies we have had in elections and governments over the last 20 years. jason: we talk about following the money. and man, the money is glowing. -- is flowing to him. i mean, by one estimate, $90

million has gone to his firm from various national committees? >> going back to 2007. the firm shows up in records going back and long before that. they represented -- the firm handled barack obama's 2008 and 2012 campaigns. they represented the democratic national committee the super pac , committees. this is a firm that does a lot of work for political committees. carol: and more recently, for bill nelson. tell us what he was doing. bill: he tweeted he was going to go down to florida and look at this close result. he filed a number of lawsuits down there, trying to overturn

how local officials were interpreting election law. in other cases, it was the laws. he had one major victory, which is how they evaluate whether or not an absentee ballot and a provisional ballot is cast and should be counted, in terms of matching signatures between what the voter registration looks like compared to what is on the ballot. that will probably result in a change in florida election law. carol: you write that this man boosted his party's election chances in 2020. everyone is looking ahead to the presidential election in a couple of years. bill: after 2016, democrats put a lot of emphasis on things like redistricting fights, challenging voter id laws. mark elias has been involved in a number of those suits. the idea is to get more democrats to the polls and get more votes counted.

it was interesting to talk to opposites on the gop side. they think he is a good practitioner. beyond that, they feel like this has become the new walking around money in the sense that how do you boost turnout on election day? they are putting all their emphasis on things like absentee ballots and early voting and you have the polls and this battle between the parties over, how do we count the votes? and on the democrat side, mark elias is among the lawyers who are battling this. jason: coming up, inside tesla's forgotten gigafactory. carol: unsheltered in the land of plenty. how thousands are living in the streets of america's richest cities. jason: this is bloomberg businessweek. ♪

♪ jason: welcome back to "bloomberg businessweek." i am jason kelly. carol: i am carol massar. facebook's profit margin is shrinking. social network is spending on security, way more than anything else. jason: plus, why not travel smart with travel hacks from a to z. carol: first, we need to talk about tesla's forgotten gaia factory in new york.

ago,: -- jason: two years elon musk took his playbook to the rust belt. $750 million in subsidies. years of delays. he hasn't even shown up to the factory. we got a peek inside. >> this is the biggest trend one , of the biggest trends in the tech industry is the sort of subsidy deals. not just with amazon and their headquarters to. also with foxconn in wisconsin, scott walker there agreed to a deal of $3 billion in incentives to get foxconn to come to the state. big question is whether these live up to potential. people talk about job creation, the metric everyone looks set. the big thing that is missing in all these arguments is whether or not this creates an economic ripple effect. , itl: it is not just jobs

is about the second and third levels, about businesses to support. you were there. you visited. i am assuming it was not buzzing with activity. >> we did get to see the tesla side. it is one production line. it was supposed to be multiple lines. it is not fully automated. there were maybe a couple of dozen people on the line. tesla say they employed 380 people at the factory. we did not see all employees. we did not see the rest of the factory which has been empty. this is a space that is roughly 10 times the size of the walmart supercenter. it should fed more than one production line. there is a lot of empty areas. carol: what do the locals say about this factory and the promises made? >> i have spent a lot of time in

buffalo. there has been an evolution in what they think of tesla and elon musk. they were so excited for this guy who was famous in california and in terms of his companies brings a lot of innovation to , industry. he has never visited buffalo which is insane for the state to give $750 million, for him not to go, that is one of the big things that everyone seems to know. they are up to date on what is going on with the factory. at what point are they going to start living up to their promises? they have heard since 2014 this thing would be ramping up. year after year, they have said it will be next year. even today, they are saying 2019. carol: what does tesla say? >> they are making progress. this is a complex product to make and they are trying to grow the business sustainably and

they are being conscious about how they grow their factory so elon hasot enter what described as production hell. they got really distracted with car manufacturing. they don't want to enter that same type of attention on the factory. they don't want to run into the same types of issues with manufacturing. jason: ongoing heated debate local governments lure big tech companies with tax breaks and incentives. is the economic payoff worth it? carol: that is a question we are thinking about. there are unintended consequences as well, like skyrocketing rents and lower wage growth is putting housing out of reach for people. we explain why economic circumstances are making homelessness worse in rich cities. >> a lot of homelessness in the u.s. right now is being caused by economic circumstances. a lot of the times, when we talk

about this, we hear things like drug abuse and we talk about mental illness. there is this other dimension that seems to be driving the crisis, especially in west coast cities like los angeles and seattle. carol: how do we make sense of a lot of wealth being created and the economy continuing to grow, , the number of homelessness we are seeing grow around the country. we're talking about people who or who areto work working multiple jobs, but still cannot afford a home. noah: which we think is driving the crisis is this combo of low-wage growth and skyrocketing rent. in places up and down the west coast, where job growth has been so strong, you have seen housing costs go through the roof. as a result you have this wider , housing affordability crisis.

taken to its extreme, it is a continuum. when you have a widespread housing affordability crisis, inevitably, some people, that is going to impact in a way they can no longer stay in housing. the question becomes, how do nonprofits and the public sector in general respond? what i found interesting is how wide those reactions have varied. we do have cities in the u.s. that have made measurable and large progress on their homelessness challenges. houston is a great example. since 2011, the homeless population in houston has been cut in half. it went up a little bit last year during the annual census, but they also had hurricane harvey blow through. was on its amazon quest for its second headquarter, it said it wanted

to avoid some of the same mistakes it made when it developed in seattle. what are these companies doing anything, whether it is amazon, google, apple, to help the situation ease the problem of homelessness? noah: here in seattle, earlier this year they fought a modest tax on employers that would have raised $50 million a year for homeless services. a couple of months later, jeff bezos turned around and said he was going to make this $2 billion pledge, part of which he earmarked for homeless services. amazon has also given to a local nonprofit that helps with homelessness. but i think the broader point is that these companies are waking up somewhat belatedly to their impact on their communities and in a place like seattle, amazon

had political capital here they seemed to not use over the past many years that they could have marshaled to push through zoning changes that would have allowed for more housing and the kind of density that would have helped our affordable housing crisis and with our homelessness. jason: still ahead, facebook's profit margin is shrinking. not for the reason you may think. carol: the woman behind women's entrepreneurship day. jason: this is "bloomberg businessweek."

jason: welcome back. i am jason kelly. carol: i'm carol massar. join us on the radio every day from 2:00 p.m. to 5:00 p.m. wall street time. you can check out our daily show. jason: you can find us online at businessweek.com. we are everywhere. mark zuckerberg has repeatedly told investors and congress

facebook will spend so much to safeguard its network against foreign propaganda. carol: we have heard that. issue, we hear that facebook's profit margin is shrinking, but not for the reason you think. >> their employee base wintel. -- base went up. it is technical hires. they have vr products and this video calling hardware you might see advertised during the holiday season. they are building data centers to support their business there. they are spending money on programming to build out these web video portals they started. facebook is spending more on everything, not just the billions they are spending on safety issues. you talk about cost of

revenue. what is that? >> it is the biggest bucket that has gone up this year. facebook's overall spending is up by $7 billion. 40% of that is in that cost of revenue bucket which has nothing to do with preventing russian style propaganda or weeding out hate speech. cost of revenue is things like the cost to build computer data centers and buy equipment. carol: capital expenditures? >> capital expenditures. it is things like developing new advertising products and headsets. it is not this kind of social goods spending facebook would like us to talk about. carol: it is important to break it down. we like to dig through a and getl spreadsheet away from those numbers and understand what the company is spending on. especially in this era, where facebook is under a lot of

scrutiny for kind of bad practices. >> it is true. my issue is that facebook likes to talk about those spending initiatives they are doing to protect elections and to prevent hate speech and other kinds of abuses. they, at least, to audiences like congress, they do not talk about this other stuff, the cost of hiring technical talent. they talk about that with investors but not with the audience on facebook every day, preventing these kinds of abuses. carol: there is a face play. we have had very prominent executives at facebook over the last year. sheryl sandberg and mark zuckerberg saying, we are going to spend money and fix it. i think about users, they have faith. as you say, when you break it

down, they are spending money, but not as much as everybody thinks. >> the thing that has gone wrong is the nature of facebook itself. this no longer looks like a fortress business model. facebook has acknowledged they where this weird period , growth is slowing and some of their promising businesses have not yet filled their potential. facebook messenger and these video and photo diaries. the big question is not just about these kinds of social and political issues that have plagued the companies. it is now about business issues. that is a real change for facebook. a company that looked like this inevitable winner and a fortress company. carol: we had a big story from " questioning times where they are focusing on. how does this add another layer of problems? >> that is interesting.

it seemed that facebook's leadership team was one of the best in technology. in the last few months, there have been questions about their ability to lead, and the new york times pointed out they have been more interested in obfuscating the truth then doing the right thing. this has been a leadership failure from the very beginning. the leadership failures were not as obvious until all of these problems started to come to a head. jason: another issue facing management in silicon valley and around the world is gender inequality. carol: we have heard a lot about it. trying to change that is the women's entrepreneur day. there is a mission to empower women across the globe. the group hosts events around the world, including an annual summit in new york and the united nations. here is the ceo and founder.

>> the idea for this is that all the people that are part of our movement are really looking at this as a ground-up approach and helping to alleviate poverty. if we empower women in business, they are dedicating their money to educate and provide for their families. when women are educated and they earn money, they have self-confidence and dignity. they do not allow human rights violations. when you look at the world, it is a capitalist society, we need a hand up, not a handout. carol: and you see a difference? >> 100%. in jordan, we funded refugees to go to school in jordan. arabia, our program and team created a program this past year and educated and supported

60,000 women with a entrepreneurship program and funded 50 of them. carol: great stuff. i talked with someone who talked about the importance of having entrepreneurship taught in schools, so that all kids are taught they can be entrepreneurs from an early age. it is a different way of thinking. >> everyone needs to have that mindset. no one is working at factories for 30 years anymore. it is different. you need to be proactive and be able to contribute to what ever you are doing in this world. carol: what is the importance of functions like yours, especially in an environment where we are still seeking parity for women and men, for equality in the workplace? we talk about the financial community that women are having a tough time getting to higher

positions. you have got to push from the bottom. understood why it is so important to empower women, when you put women on boards, they are 30% more profitable. when we think about the world today, and have days like this more people are going to realize , and start talking about the importance and the success of why it is great to empower women in business and give women positions and so forth. jason: coming up, travel hacks. celebrities, industry insiders, and million-milers share their tricks. carol: plus, the future of auction houses. jason: this is "bloomberg businessweek."

carol: welcome back.

i'm carol massar. jason: i am jason kelly. you can also listen to us on the radio on sirius xm, in new york, boston, washington, dc. carol: in the bay area and in london and on the bloomberg business app. section, pursue auction houses hoping to scale are facing the fact that masterpieces are limited in quantity. furniture, not so much. carol: more on why the future of art is decorative. chris: there are pursuits about all of the interesting things that came out of auction week in new york. carol: a big week? chris: there were not that many surprises. not a lot of weird, record breakages. big but itngs were was like everything you expected happened. that is not interesting.

our editor said this is a problem auction houses are facing. there are a finite number of masterpieces. we are not making more of them. how these auction houses hope to scale and grow is to find other revenue streams. one of them is decorative arts. carol: what is that? chris: it is a broad term. it can be furniture, it can be prints. it can be drawings by artists. it can be anything from a meteor to an urn that is 1000 years old. these alternate revenue streams are becoming increasingly important. carol: talk to us about the different auction houses getting involved. it is the traditional mainstays of the art world. chris: heritage auction house quadruple the amount of prince

and sales -- prints and sales. now, there are online salespeople. sotheby's acquired a company that sells home goods. now, you can go online and shop for home so. this is something they never would have done before. carol: is there demand? chris: yes. everybody has a house. you put a poster on the wall. auction houses are looking at that wall space and saying, why can't we own that? we do not need to sell $1 million. maybe we can sell $250. that space is an opportunity. now people have more money because of the economy. people are spending more on stuff like this. jason: stay with pursuits as we kick off the holiday season and millions get ready for their planes, trains, automobiles this holiday season. carol: we have just what you

need. >> travel hacks a-z is a really fun concept that is connected to other fun news which is that we have a podcast which launched last week. aery week, we are bringing on whoicular guest, people travel in their jobs more than i , do. they are coming to share all of their favorite hacks and secrets and best travel stories. carol: you did an alphabetical list. let us talk about this and tell me your favorites. of my favorite tips, i do not have children. brown, the travel channel host, told me when she is traveling with her kids, she splits up with her husband at the gate. he will take all the luggage onto the plane first.

he will leave her with the kids so they can run around and tire themselves out before they get on the plane. they skip the stressful part of being stuck. they go straight to their seats and they fall asleep. carol: you say you can use a fanny pack? >> this is a great one. this comes from an actress. if she says it, i buy it. airlines, budget carriers, that will weigh your carry-on to make sure it is not only dimensions but of proper weight standard. if you know you're flying one of those and you need to check your luggage, this is hack for bringing a third bag on the plane. carol: and you can get away with it? >> all of the big brands are making them. carol: i have seen designer. >> like $800 ones.

carol: tell me another one. google map your way to goodies? what do you mean? >> i am a big google user. i use it for everything. i like this tip. it comes from a food writer who taught me something i did not know about google maps. you can use filters when you search the nearby area to screen for things -- like, i don't want chain restaurants. i don't want anything less than four stars. i do not want sushi. whatever filters you want to apply can help you hone in on exactly the right restaurant. carol: bloomberg businessweek is available on newsstands. jason: and online and our mobile app. what is your must-read? carol: the giga factory. who knew elon musk had another facility in buffalo? lots of promises to the community. they got some tax breaks and

incentives to build their facility. elon musk has never been there. jason: austin carr takes us inside. it is a different look and feel them what is happening out west. carol: this is a story everyone should check out. your must-read? jason: i loved the profile of mark elias. marc elias is one of the most powerful forces in the democratic party. he even earned a tweet from the president. carol: and helping to shape what we might see in 2020. you can find more stories at businessweek.com over the weekend. jason: check out our daily businessweek podcast. this past week, we talked with the president and ceo of the 9/11 memorial and museum. we were at the memorial and museum summit on security. carol: thoughtful conversations. we also caught up with the chief security officer at bridgewater deputytes, former

commissioner of counterterrorism. we talked all things security. jason: more bloomberg television starts right now. ♪

♪ guy: bracing for brexit -- as britain prepares to leave the eu, we look at what a no deal outcome would mean for the insurance industry. planning ahead. could 2018 be a record year for bulk annuities? we will speak about demand for the policy. and sanctions crunch. penalties for violating u.s. trade restrictions approach new highs. what are the implications for european businesses? welcome to "bloomberg markets: rules and returns." i'm guy johnson in london. now, "rul