carol: welcome to "bloomberg businessweek." i am carol massar. this week's special issue focuses on businesses and workings and industries on improving what they do. and it is the end of an era at goldman sachs. we take a look at the legacy. but we start in the economic section this week. many experts are predicting a

global growth slowdown in the coming year. that did not deter simon kennedy case for 20a bowl -- bull case for 2019. he joins us now in london. let's first start, it is a pretty depressing environment. that is the psychology out there right now. simon: it is important to differentiate between bull and bear cases. if i could make market calls, i would be a rich man somewhere else. but this is not the core of the market. it is a case for the defense, the global economy. the market seems to be testing that case as we enter the new year. in some ways, the global economy is slowing. it is perhaps more cresting than slumping. there are some good points to make when arguing on our economy. it is looking fairly robust into the new year.

carol: let's make the case. you point out in your story about the imf forecasting decent global growth. we haven't seen a lot of reduction in terms of growth estimates. have we? then: the imf is at 3.7%, third year in a row that we have had growth at that strength. the markets lately have been worried about what the federal reserve is going to do. the fed now signaling it might even cause -- pause rate hikes in 2019. there is a level of support from the central banks. hashave seen donald trump led tax cuts in the u.s., but other governments are releasing fiscal stimuli. you have oil price down to $50, so there are lots of areas of support for the world economy going forward. i think if those props can

remain in place, the world gets a healthier expansion next year. one, increasingly led by the emerging markets, which had a bit of a rough year this year. they: the fed reminded us are data dependent and they are watching everything closely, but we do feel like we are hearing more people talk about the potential for a recession. but we are not hearing people talk about a global recession for 2019, are we? simon: no. even talking a u.s. recession, sort of on the fact that this sluggishsluggish expansion and s going to write home about how great the expansion has been, and there is some fatigue out there. when the wall street banks look at it, they are most optimistic at a 30% chance of a recession for the united states. for it to be a global recession, you need the u.s. to be slumping. in a years time, we could be

joking about this story and how wrong it was, but i think there is a case to be made that certainly there is some support in 2019. at the end of the day, the unemployment rate is really low globally. it is its lowest since 1980. people are employed and people feel wages growing in their ocket. that is something that has been missing. if unemployment stays solid. that is a pretty robust indicator for the overall strength of the economy. carol: simon, thank you. he is our executive editor for economics. now for some insight in 2019, and hindsight in 2018. we talk about what the investing landscape was like this year with a visit to the imaginary hedge fund, hindsight capital. jason kelly and i spoke about

the speculative journey. >> hindsight capital llc is a fund, which i've been visiting every year for the last 10 years. since before i arrived at bloomberg. which has the huge advantage that it invests with the benefit of hindsight's, i.e., it puts on the trades at the beginning of the year if you have had perfect knowledge of how the year was going to work out. i put some limits on it, like obviously, if it was going to leverage up or just returns would be infinite every year. the rules are that it can only go in relatively broad asset classes, no individual stocks or bonds. and he cannot leverage up, and also, critically, it has to show that you did not need that hindsight to make the trade at the beginning. that there was a justification for doing that trade at the beginning of the year, and i will mention just this once

because some people to get disappointed, this hedge fund is imaginary. it is the figment of my imagination. carol: we are having fun. john: and we will talk about my friends at hindsight capital. jason: if you are listening or watching, stop googling now. john: this fund has beaten all others every year. carol: cap at some of the traits that made some sense and that should have known about. john: exactly. the big theme people should have latched onto was america first. necessarily the america first policy is going to mean american assets did fantastically because they generally did not. thatugh, some did ok, but is not just the trump administration but the fed becoming the first to tighten. it would hurt everyone else.

for example, if you wanted, you could see that this would be the year trump would go hard on trade, and also a year when he moved on from his failure to repeal obamacare. you buy managed-care funds, which were up at this point something like 7% or 8%. and then, if you want to big -- buy something that will get it in the neck from the trade war, japanese marine trade has -ish% --n for the year 40% and you have something in the region of 60%. carol: i love this.

short chinese tech along u.s. shorting u.s. homebuilders, you mentioned health care, and the world mining sector, and you can bet on volatility, right? that was a good john: there were one. two bubbles last year. one was in lack of volatility. the way the markets went up in a straight line last year was more or less unprecedented. adapted to volatility, there has never been a better year than last year. and then of course there was one bubble, bitcoin, and of the most one blatant in the history of mankind. might have conceivably made money was the shortage of bitcoin. you borrowed some bitcoin and sold it and put proceeds into the vix. jason: the trade of the year. john: the problem is, when i wrote this because it was for

business week magazine, before the deadline, it was below an 800% level for the year. as we record this, it's gone up to about 830%. endnding on how scary the of the year is, unfortunately, hindsight capital, even though they know did not tell me, we could get to 1000%, depending on how silly the week between christmas and new year's is. any sensible person, any bloomberg employee, anyone working in finance, could have told you -- they may not have wanted to put their life savings on it -- but long vix was going to work this year. did it ever. carol: this week, as he mentioned, it is a special issue focused on good business. we have joel weber here to talk more about it. we always hear about that business.

it always gets that bad rap, and we wanted to use this opportunity to talk about places that are doing good. five things stood out to us. one was the environment. we have this great story in west virginia about the lavender. it is being planted on mountains that are basically gutted in search of cool. as horrible -- search up coal. as horrible as that is, there is another great story about the lavender being planted. and that transcends throughout the issue. there is another great story about the diamond industry. there is an attempt to transform what the model looks like, or too?bout me this massive movements, and yet, from an organization intimately affected by it, and the woman who has led the charge and transformed that. and how about with food? we know that there is a whole opportunity to build a whole new

business empire based on plants rather than animals with veganism. that is a great entrepreneur story. and then last -- carol: i like this story a lot. joel: what do you like about it the most? carol: well, women led businesses, there are not enough. joel: there is not enough. there is a co-working space to help more female vendors. this is a startup co-working space to help amplify more female run businesses. carol: definitely stuff to watch a 2019. thanks. coming up, investing for good. are rtf's aims to better the world holding up their bargain? -- there end of the bargain? and amazon has a problem of too few people to deliver their packages. how they are tackling the problem. this is "bloomberg businessweek." ♪

carol: welcome back to "bloomberg businessweek."

i am carol massar. joining jason kelly and me for bloomberg businessweek every day on the radio. you can also catch up on our daily show on our podcast on itunes soundcloud and bloomberg.com. this week's special focuses on good business. the story in the finance section dives deep into an investing trend that claims to be doing good. it stands for environmental and social governance, in other words, funds that promote a better world. in fact, they are often not what they are cracked up to be. we spoke with rachel evans. find that some of these things are not as much oriented with of environmental and social items as you think. one fund had put exxon mobil as its largest holding. sued byso the one being

the new york regulators for lying to shareholders about climate change costs, so it has a few issues on the environment and govern in size -- government side. exxon mobil and phillip morris is mixed in there, as well, and what we look at in this story is for an average retail investor that wants to do good with their money, is this really what they expect to be buying? carol: and to be fair, they might be moving forward on sustainability issues, you would not normally think of these companies when it comes to investing and that is part of the problem. how you define est. there's no -- esg. rachel: there is no true north for esg. and it is how people look at esg and sustainability. it is good for people to be thinking about it and what constitutes esg. with the way this inevitably evolves, you have some products that are high esg and others that are low esg.

when you talk to index providers, they are aware that some products are more dialed up or dial down. jason: if you look at this , which the lens of etf is how so many people are investing now, etf's seem to be a set it and forget it strategy. a lot of investors trust their providers to pick the right stocks. they feel good about the idea that this is an esd friendly investment. yet, here we are. how does this happen where the blackrock's end up with these baskets of stocks that don't pass the smell test? rachel: looking at the evolution more broadly over the years, we have seen this race to the bottom of fees. fees have gotten so low. fidelity came out with an index -- with a no fee index tracker and that is incredible. rockeds to compete -- like needs -- blackrock needs to

compete with this. there may be some slicing and dicing of the market in a slightly different way. in that context, you can really see the growth in esg funds with that context. you see the products grow significantly. i believe more than three quarters of products have been launched in the etf world, so it is a new phenomenon, and assets are starting to gather to the funds, which encourages more product creation and innovation, and hope that some bring in fees. carol: esg assets are kind of small compared to all the assets under management, but the higher fees make it lucrative for financial firms offering them. the cheapestu have stock etf you could find, you 3000 fornerating about every 10 million that you have invested in the fund. for an esg fund charging 45

basis points, about 15 times more. jason: one of the trickiest things, as carol alluded to, how do you measure and track it? governance is easier to get it feels likegovernance is easier to get your head around and measure than maybe the ea and s. why is that? rachel: that is very challenging. how do you tally up social benefits? you could look at pollutants and that kind of thing, but governance comes easier to look how manyfice and see minority and women are on the board and look at it in that respect. there is also an argument that governance is the first issue that should start with esg. and from that, everything else flows. that it's one of the more measurable things and the larger things that investors actually care about. you may have to retail looking at the environmental side with low emissions, but on the institutional side, they are still thinking about their

bottom line at the end of the day. they want something that matches the benchmark and they can see the value from a well governed company. carol: here is one more point of global esg from the kkr head of impact ken millman. he told jason his company is committed to investing in good. and they anticipate good returns from that strategy. ken: we are focused on things like how we help the world mitigate and adapt to climate change? how do we harness the industrial fourth revolution, which can make us smarter and more mobile and make our operations more sustainable and safer? but it is going to require hundreds of millions of people to be re-trained throughout their lives. there is critical needs like those needs. how do we create a way to reduce the amount of waste we generate and the food we eat? or in other ways we live? there is a huge amount of capital needed to address these challenges.

i think one of the things that is really important is for lots of folks to invest behind impact -- in our case, we define it as focusing on companies either core business model, what they sell, their products, their service -- is addressing one of the united nations' sustainable development goals. those goals were developed in a way designed to mobilize governments, mobilize the social sector, mobilize the private sector, and mobilize investors. we hope to learn, not just from the folks you mentioned, but from people that have been investing for years around impact and adjusting these critical needs. carol: coming up, amazon success brings unintended consequences. enoughy packages and not drivers to deliver them. this is "bloomberg businessweek." ♪

carol: welcome back to "bloomberg businessweek."

i and carol massar. you can also listen to our daily program on sirius xm and in new , boston, washington, d.c., and in the bay area and in london. and of course on the bloomberg business app. app. amazon's rapid growth has changed the face of retail and created a trillion dollar empire. building a one-of-a-kind company comes with one-of-a-kind challenges. bloomberg's taylor riggs takes a distributionn's centers. they are all over the place. theor: this is what i love bloomberg terminal because you can pull up the share price but this is about the distribution centers. we have the function here, like we have everything here in blue, distribution and warehousing. amazon, acidw it expansion. how do you get packages from point a to point b?

interestingly enough, shipping and they areost trying to take the playbook out of fedex's playbook by hiring couriers. there is a driver shortage. this is an issue that amazon is really going to have to contend with area carol: it is a big deal -- contend with. carol: it is a big deal. thank you. we just saw where the company's warehouse centers are located. this brings us to another story in our technology section on amazon this week. it is about getting packages from point a to b. >> what jumped out to us was it was five years ago where jeff bezos was on cbs 60 minutes and envisioned this future and gave a prediction of maybe five years, where drones would be delivering packages from the sky. we are at that five-year mark, and this past summer, amazon issued this call to arms to entrepreneurs, encouraging them

vans and create small businesses delivering amazon packages. so amazon is copying the fedex model of creating this nationwide network of independent couriers counting on amazon packages to make money for their businesses. what jumped out at us is, yes years after this big prediction , five of making delivery drivers obsolete, we have this world's biggest e-commerce delivery company needing thousands and thousands of more drivers, like pizza hut and the post office. jason: it is so interesting because this story really reminds us about the business model that exists. fedex and ups are taking different approaches. remind us how those companies work and what may amazon do going forward? amazon and fedex

have a more asset-lite model. amazon does not want to hire the people directly or buy the vans. it is relying on this network of entrepreneurs. keep them kind of small so it has rice negotiating power over them, and that them do the dirty recruiting, hiring and retaining, which can be costly, and also maintaining the fleet of vehicles. the alternative would be a ups, which employs all of its drivers, and buys the vans, owns the fleet and maintains it and takes those costs on itself. the big differentiation we are seeing is how much drivers earn. ups has many union drivers that could earn $40 an hour, not including overtime, whereas the makes service median $8,000 a year.0

these carriers for amazon will make anywhere between $15-$20 an hour. carol: is this a reminder that we think about amazon and increasingly talk about going high-tech with cloud business and so on and so forth, but in order for them to do what they need to do, their bread and butter, they have to have people deliver packages. spencer: their business has grown so much, and faster than technology has advanced. they need to rely on the old guard model because it is the only thing they have right now. whether the technology is in place with drone deliveries, the regulations are not there, so there are speed bumps to keep pace with the man's in the moment. they need a lot of delivery people. the fact they are recruiting businesses and enticing people to invest money makes this like it is not a short-term situation. carol: coming up, lloyd blankfein taking the bow for leaving goldman sachs instead taking heat due to scandal. also, the dallas mavericks,

cleaning up the organization's front office culture. this is "bloomberg businessweek." ♪

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.

carol: welcome back to "bloomberg businessweek." i'm carol massar. still ahead, a pair of new ceos. one trying to redefine an iconic watch brand, and another cleaning up the dallas mavericks. we kick it off in the finance section. 2018 is wrapping up on a negative note from goldman sachs. the bank is facing investigation over its role in the scandal involving charges of

embezzlement and money laundering in a malaysian state investment fund. lloyd blankfein stepping down at the end of september. he will retire as chairman of the company at the end of the year and the controversy is casting a cloud over his legacy. abelson told us more. max: i would not have thought we would be sitting at this table as lloyd blankfein leaves the firm, talking about this huge scandal that's dented his reputation on wall street. this is heavy stuff. it's a story about malaysia and investment banking and a legend -- and alleged bribery but also a story about the things we care about the most in bloomberg, which is money and power. it comes down to how wall street makes money and how they wield it. carol: governments often raise investment funds. this is not a surprise or usual, but tell us about this fund. the origins of it. max: definitely. we can go a step further back

and talk about how goldman sachs, lloyd blankfein says we beat goldman sachs in more places. and the former prime minister of malaysia was rising to power, tim weiser was this young, handsome german banker married to a former model, apparently teasedikable, sort of because he apparently had a phd from a fly-by-night school, we think, and he was rising in asia, specifically in malaysia. he was making friends with billionaires, getting on deals, at the same time najib was rising as prime minister. najib basically said to goldman, gave them thumbs up to become a more powerful wall street entity in malaysia. happens, tim wisner

threw these connections. they got a state fund to give them a ton of money to raise bonds, known as 1mdb. millions ofed dollars, and goldman got $600 million, which is a lot more than what you normally make from a deal like this, to help the fund raise that money. that's where the trouble starts. does it get more fees? max: goldman would say it's more than just fees. it's also commissions. that's the rub. tim leistner isn't a random guy. he was a partner at goldman sachs. to briberyged fealty charges and has told the federal government, basically said that this was a bribery scheme. jason: what becomes clear, as the story has evolved --

because it went away for a while. we weren't paying that much attention. you wrote about tim leistner a long time ago. it's only been the past few months and during this management transition at goldman sachs, where lloyd blankfein is standing aside, and solomon becomes the ceo, and this scandal comes back in force and we see it reaching the highest levels. talk about blankfein's role. max: that is an important point. what is happening here really does feel like something different. timing is one of the reasons why. lloyd blankfein said to his colleagues when things are good, you don't want to leave. and when things are bad, you cannot leave. but he said, it feels like the right time. that's what his memo said. now it's fair to say things are going wrong. if your lloyd blankfein, this is what you do not want.

you had his own fellow partners questioning. what is interesting is they seem to talk about it not as this funny soap opera in malaysia but something that has to do with new york. how high up did the involvement go? what were the reservations? why were reservations ignored? is this symptomatic of the way goldman made record profits? those questions are coming from inside the house and that's got to be nerve-racking. carol: and outside, you have u.s. regulators and prosecutors. you have the sec continuing to ramp up their investigation into goldman and what happened. max: listen, if goldman sachs can end up paying $550 million, which was a record find, and that's all that happens, lloyd blankfein will be so happy. and let's not forget, by the way, lloyd blankfein's successor is a man named david solomon. he comes from investment banking. he was the cohead of global

investment banking when this happened, so i think there's nervousness that this not only will color lloyd blankfein's entire legacy. and when you look at the goldman stock price from when he started to now, it does not look fantastic. carol: what does goldman say about this? max: goldman sachs has said the whole way through that it is a rogue employee. they're going to vigorously contest the charges. when we asked the goldman sachs spokesman for comments, he said, standing oust got a from other corporate executives from a cloud that includes mike bloomberg that owns bloomberg lp, and says that's more meaningful than backbiting and second-guessing from former employees. carol: while lloyd blankfein heads out as his company faces controversy, this week's cover story highlights the ceo taking charge of an nba organization dealing with fallout of its own. they have a me too mess to mop

up in the front office. she comes from at&t with a mandate to change a toxic culture. we talked to jim ailey, who put together this special section. jim: we do this every year for five or six years. the idea is, after 11.5 months of finding badness -- [laughter] carol: it's kind of everywhere. jim: yeah, the world is full of it. we want a reminder that people try to do well by doing good. the idea is to try to have as much sweep as we can of these basic businesses that try to do something right. carol: the first one is a great one. this is the cover story this week. you take a look at cynthia marshall at the dallas mavericks. tell us about this story. jim: as you probably know, the mavericks had a very big scandal that broke last february when it broke sports illustrated. it showed how toxic the culture was.

months later, the owner of the mavericks, mark cuban, who has admitted he was a participant in creating the culture of the place that was toxic, we realized when they hired a former at&t executive, who was the chief executive, she just retired, highly respected and in a situation like this, you wonder if they are serious about performing. they conducted their own internal investigation. the team decided to pay $10 million in restitution on their own to domestic violence programs, prevention programs. jason: as you point out, usually the cap is $2.5 million. jim: that's a fine. they voluntarily decide to do this. it was a sign of seriousness. the fact that they got a really accomplish executive to take

over the ceo was something. the ceo's name is cynthia marshall. she took over after that story came out and when the place was in full crisis mode, and has had a huge impact. carol: what is the impact? what is she still hoping to do? jim: the main thing is people feel comfortable, according to our interviews. people aren't embarrassed to say s.ey work with the mav briefly, i think they were. there was a woman we quoted who said, after the stories came out, she said she worked for the dallas mavericks. you're a woman and you work for the mavs? ugh. there was an attitude there, and one of the hardest things she had to do was shift the culture. there was an attitude there, with something along the lines of there are 10,000 people who would take this job, so don't complain. her response to that was, there are not 10,000 people that want to take this job. if anything, it's like a thousand. and by the way, who cares? let's focus on the 140 people

that work here. carol: coming up, an inspiring startup story, door dash. it was at death's door when you ago, and now it's thriving. we will talk about the company's turnaround. this is "bloomberg businessweek." ♪

carol: welcome back to "bloomberg businessweek." i'm carol massar. join jason kelly and meet for -- me for bloomberg businessweek every day on the radio. from 2:00 to 5:00 p.m. wall street time. you can also catch us on our show by listening to our podcast on itunes, soundcloud, and bloomberg.com. you can also find us online at bloomberg businessweek.com and our mobile app. in the technology section, couple of stories featuring names looking to do things differently. dreamworks founder jeffrey katzenberg and tesla's elon musk. we caught up with our tech editor. jeff: over the handful of years

that i have been talking about this, growth in urban areas in the u.s. has fallen in half while growth to suburban areas quadrupled. carol: is that wild? we keep hearing people want to major cities and that is not the case. jeff: research now says even millennials that are having kids are looking to move out into more of a yard and fence situation, not just because they are priced out of cities, but they want to live further away from everybody. jason: and so what did we take away from the little tour that elon gave? we felt like there were mixed reviews, what people saw in los angeles. jeff: there were really setbacks. this was originally supposed to be a week ago, but they had to hold it off because the stuff was not ready yet, and what was supposed to be a much more ambitious look at how the los angeles hyperloop could work, became more of a tour of the equipment they've got available

so far as they build the tunnel. it's something that's in the ground, something they didn't have a year ago. jason: the tunnel is there and the technology exists. we don't know what it's going to do. staying in los angeles, jeffrey katzenberg, well-known figure in entertainment, he has a new company, wonder co. is 08, there are no vowels. it's a hybrid type shop. jeff: that is right. with the assistance from meg whitman and other folks from the tech industry, it is katzenberg's big shot to make it his sphere of influence. his startup accelerator of sorts about $800 million now to sort of plunge into various, mostly entertainment related, tech initiatives. one of the biggest is his own startup, focused on short form

video that's bonanza on the internet now. all of that is expensive to produce, the content the levels he wants. he tells people it has a shot at competing with longer form like netflix. carol: another company and our technology section is door dash, a delivery startup that turned its fortunes around. the ceo was a guest on bloomberg television this week, and he told emily chang about his company's soaring revenue. >> business is on fire. we have tripled sales in a year. --are north of 1,000,000,250

1,250,000,000 in revenue. in the restaurant delivery business, we are getting shares faster than everyone, growing faster than everyone, and on track to be the largest in the space. emily: how do you translate that into profit, including overhead? tony: we are profitable. we had a playbook of turning businesses from investment mode into growth mode into cash flow positive. and it's only after that playbook was developed that we decided to raise financing in march and later in august. emily: we had the head of uber eats on earlier, who also said business is growing faster than they expected. they are doubling down, exploring groceries delivery. they have deep pockets now, too. how do you stand up to the competition? tony: we already have. emily: what are you doing to differentiate yourself? tony: a lot of the work that led to the results in 2018 were on track to be the largest delivery space, and that happened before 2018. since day one, we have focused on the merchants by building

more services like door dash drive, which allows merchants to deliver their own orders, we signed more merchants than anyone else. including the most amended once. we have 90% of the top merchants signed, more than all of our peers combined. we are also delivering other types of meals. we started with food, which is the hardest in terms of parish perishability. but our partnership with walmart started in april and reached over 500 stores, and we deliver the vast majority of walmart's groceries. carol: straightahead, breitling is under new ownership and the ceo is making changes. and luxury consciousness. pursuing good is the theme of this week's pursuit section. this is bloomberg businessweek." ♪

carol: welcome back to "bloomberg businessweek." i'm carol massar. you can also listen to our program on the radio and on a.m. 1130 in new york, 106.1 in boston, 99.1 fm in washington, d.c., a.m. 960 in the bay area, in london on dab digital, and of course on the bloomberg business app. in the business section this week, when a private equity firm cvc bought breitling, it raised eyebrows in the industry. the company is profitable, but sales were stagnant. under the new ceo, it is reshaping its brand and retail strategy. the managing editor for business is telling us what makes

breitling tick. >> george, he has french answer street -- ancestry, he was at richemont and was there for 17 years and rose to the ranks. everyone thought the top job of richemont is within his grasp. then a year after cbc bought the brand, they started talking and started asking him, what do you make of this brand? where would you take it? what does it need? what does it lack? and then one thing led to another. he said, why don't i do it myself? one big reason for him to make that transition was that he owns equity, about 5% of the company. for him, that was a great incentive because he can the -- he can be entrepreneurial about it. he can watch the company grow, ideally, under his stewardship. and that to him, after 17 years at richemont, seemed like a new step to take.

he is in his 50's now. that seemed like the right move. carol: when i started reading this story, all i could think of was the old breitling adds. i went on google and pulled up some and it was like women in tight clothes, scantily clad, guys really macho, driving planes. all that kind of things, or flying planes. you are laughing, but that's what it was. they've got to change their image, don't they? or they are changing their image. benedikt: that's one of the first things you notice. it's a well-known brand, but it is well known and for all the wrong reasons. it's known for chunky, fairly busy watches, the kind of watches favored by the top gun guy, someone who socialized in the 1980's and 1990's, someone who might not be immune to the lures of objectified women. and that is not the time we live in anymore. people look at these adverts and

the kind of image and think that's not really the kind of product i want to get behind. he noticed that and realized this is something we need to do. you can see it in the kind of people he recruited for his advertising campaigns, the sexist ads are out. they are gone. he's brought on a fresh crop of people. brad pitt is one of them. he's a brand ambassador. charlize theron is another one. adam driver for the younger generation of people. that's what they call the sinema -- cinema squad of their brand ambassadors. they try to be sort of younger, outdoorsy, digital, not sort of your dad's watch kind of company anymore. carol: earlier, we looked at this week's special issue on good business. in the pursuits section, we returned to social responsibility and ethical business practices. jason kelly and i spoke with chris rouser about luxury brands

and experiences that make a positive impact. chris: increasing priority for travelers, especially millennial travelers, is to do good while you are doing it or not have a huge footprint. what we did is look through a range of products and experiences that are run by companies were consciousness is a key part of the business. we started with travel. we found six resorts. we did not find them, but we've known about them for a while. it's not just a resort where they make charitable donations. it is people making an investment in the communities around them, and making serious efforts to be carbon neutral or have a low footprint, environmentally. carol: take us to, i don't know, indonesia. chris: the resort is one of the reasons why we wanted to do this piece because it has been around for a decade now. it's just really a

standardbearer in this sort of field of really environmentally thoughtful resorts. it's brought the area of indonesia that it is in to the luxury map. it's one of those places where i try to find it on google maps, i had to zoom in and zoom out. carol: you say it is four hour flight from jakarta, and then a four hour long boat ride, as well. it's a long trip. jason: you are committed. chris: you are committed, and it is one of those places where you feel like you are in the middle of nowhere, which you are. carol: which i love. chris: surrounded by a marine reserve. you can see gigantic seahorses. you can see manta rays wrap their fins around a volkswagen beetle. part of the reason they do that is because they protected the ecosystem by investing so much. it's a cool place to go. carol: i've gone on trips to costa rica, and you plant a tree when you're done, but this is taking it to a higher level, the

kind of trips in terms of their impact on the environment. chris: yeah, so around there, the biomass increased 60%. they are making a big difference. it's mostly ecological stuff, but in some places, it is workplace training. these resorts are training people in the hospitality industry so they have jobs. it helps the resort because it's staff for them, but it gives people lasting jobs they can teach and take elsewhere. jason: a little closer to home in new york, churchill wild in canada was one that jumps out at me, in part because of the 100% success rate at seeing a polar bear. that's amazing. chris: do we need to fact check this? do i need to call this week? carol: bob jones going to call? jason: can you promise me you'll see one tomorrow? chris: churchill wild is on the hudson bay in arctic canada, and it's a small resort.

it's got amazing trips where you can trek out, you seek polar bears, and they do donations to local charities. they pick three initiatives every year, and that could he anything from local girl scouts to making itself fossil fuels free, so what they do every year is a big part of how they operate. carol: "bloomberg businessweek" is available on newsstands, online at bloomberg.com, and our mobile app. and you can find more stories combloombergbusinessweek. over the weekend. check that out and check out the daily business week podcast with jason kelly and myself is available on itunes, soundcloud, and bloomberg.com. this past week, we spoke with crystal rose. she's using blockchain for messaging. next week on bloomberg's "bloomberg businessweek," tv and

radio, we revisit the bloomberg annual summit, conversations about what to expect in 2019 business, finance, politics, and luxury. for jason kelly, i am carol massar, for more bloomberg television starts right now. ♪ ♪ there's no place like home ♪

argh! i'm trying... ♪ yippiekiyay. ♪

mom. ♪ david: you met your wife in high school? michael: we met in seventh grade. david: so you didn't date around in the seventh grade? [laughter] david: can you explain how you kind of invented high real bonds -- high-yield bonds? michael: to de-risk america, you don't want to be dependent on a handful of banks. david: you came down with prostate cancer? michael: i have lost 10 relatives. david: what is it you did that helped change the way finance things? michael: we collect data. david: do you have regrets in your financial career? michael: sure. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪