taylor: welcome to "bloomberg businessweek." i'm taylor riggs come in for carol massar. jason: i'm jason kelly. we are here at bloomberg headquarters in new york. taylor: this week, the costly farewell brexit is having on business. jason: also, the price of all the wrong bets that a u.s.-china trade war would be short. taylor: and the global cover story, we work is expanding.

joel weber is here. great to have you. there's a lot of talk around unicorns, and one of those happens to be uber, which went public and things didn't go so well. we work has confidentially filed ipo paperwork so that might be still to come this year. in the meantime, they are trying to figure out, how can we continue to grow and come up with a way of funding that growth in a different way that we've been doing. jason: what comes out very clearly in this story, is this is a cult of personality. joel big time. : ceo adam newman is larger-than-life, incredibly idiosyncratic, but has built his company from nothing to something. his character is the force that has driven that, but it also leads to some interesting exchanges with our reporter. jason: it does, indeed. we got more from ellen. here she is. ellen the cover story is about : we work and addresses, i

think, a few major questions many people have about we work, which is can it make it work? as part of exploring that, we talked about this new fund we work is raising, called arc. part of their needs -- this is an office rental company, so they take long leases from landlords and rent out to smaller businesses, or even enterprise businesses. this new thing they are talking about is arc, an outside real estate fund with outside investors, raising money to buy buildings that they will then be a major tenant in. this is a set of financial gymnastics i believe we call it, , to give them access to more money and more space, which are things that the ceo told me it needs to grow. taylor: who was the founder and leader of we work that drives the culture of that company? ellen: they have two cofounders, but the ceo, adam newman, is by

far the big personality. he's the person people think of, the face of the company, and it is for a good reason. he has a big personality. he is very gregarious, very charming. he is known as this fierce negotiator. he also has this kumbaya spirit around him of wanting to help people connect to their purpose, help people live better together, help people do. one of the slogans that represents what they are going for is "making a life, not just a living." adam newman, he is someone who has 65% voting control of the company, so like these other companies he has super voting shares. it is very clear that he is a driving force behind a lot of decisions at the company, and in the story we try to explore his personality. i think he's just a little brash, but also very smart, and a very interesting figure. jason: you do such a good job of capturing who he is through his own words, and he seems to just

sort of float through life in many ways, yet he's a tough negotiator, a savvy business person, and that mode of living and working and leading has led him to some places where people have raised their eyebrows around his relationship to the company and some of its investments and its real estate. tell us about that. ellen yeah. : he has definitely courted controversy over the course of we work's nine years of existence. there are plenty of lend more to will privately tell you that he has cut them out of deals or just been generally a menace to the traditional real estate industry. i think that's good. this is a stodgy industry that is looking to benefit from having something new, but he also has brought i think criticism onto we work for the choices he has made. he has also owned stakes in buildings that have been leased by we work, personal stakes. this came to light last year.

it has been a note of criticism against the company for a long time, that this is a self-dealing set up, and i think in the real estate industry, that's kind of par for the course. it seemed to raise fewer eyebrows. but it also wants to be seen as a tech company, and the expectations are different. that was definitely something that stuck with the company, and it is something that arc, this new fund, is hoping to address. the fund is run by the company, which is the new term for we work but it is separate. the plan is for adam to sell his stakes in these we work rented buildings at cost. he emphasizes in our story that this will mean a personal loss for his personal investment, but he thinks it's the right thing to do, and that hopefully this will put his holdings at more of an arm's-length so that it doesn't seem like the company is renting from its ceo as a landlord.

taylor: doesn't this also come down to, at the end of the day -- they have a problem getting loans from banks as well, right? ellen specifically buildings : with we work as a major tenant have sometimes had troubles getting loans from banks, because those lenders believe we work is too risky. let's say you have a building with a lot of we workspace in it. that might end up flagging something at your lender, if you were trying to get a loan with the building. you are starting to see that the more that we work grows big, the more that -- it is the biggest landlord, sorry, the biggest tenant in manhattan, london, and washington, d.c. the more it spreads, the more people are starting to think this is becoming a huge entity within real estate, and they are trying to get their grips on whether this is a good idea, to continue having such consolidation in tenancy, and whether in a downturn there might be repercussions that we haven't seen yet. taylor: jason, i was able to use

the terminal and get all the data we need for the valuation of we work. come inside with me and take a look at the valuation. it has really exploded. most recently in the first quarter of 2019, now valued at $47 billion. jason as you know, so much of , the talk about heightened valuation, some of these unicorns, because of uber -- you wonder what this means for we work. jason: right. does that chart start to level out or even come down once it gets to the public market? great stuff. up next, speaking of startups with big ambitions, how box wooed silicon valley with e-commerce. it did not seem exciting to investors. taylor: and uber shares tumble in the first two days of trading. jason: this is "bloomberg businessweek." ♪

taylor: welcome back to "bloomberg businessweek." i'm taylor riggs, in for carol massar. jason: i'm jason kelly. join us every day on the radio from 2:00 to 5:00 p.m. wall street time. listen and subscribe to our podcast. taylor: and you can find is online, of course, at businessweek.com and on our mobile app. jason: in the finance action, uber shares tumbling since they released after making their debut on wall street. jason: and we have a great -- taylor: and we have a great chart, of course, which tells the story. we are looking at how much these companies raised. uber raised about $8 billion, take a look at both lyft and uber, declining since they went public. it speaks to the lack of profitability. jason: absolutely. everybody wants to be beyond t, the meatless burger.

it is really catching on with investors. back to some investors are blaming morgan stanley as how the bank handled that ipo. >> i was at the stock exchange the morning of the listing, and it was rising, until all of a sudden it wasn't. you looked around and everyone was looking at each other, like what's going on? what do we do? now what happens -- in some ways, this ipo was considered a success in the sense that they raised $45 per share. wars -- more than $8 billion and for the company that was a great thing. the company had something to be happy about. but since the stock has been falling after, usually the ipo was supposed to pop, there are a lot of questions about whether it was overpriced, and investors have clearly lost some faith in the near-term. taylor: i want to go back to that feeling on the ground, on the floor of the stock exchange. we were all watching it as you saw it fall. what was the feeling on the ground?

sonali: there was uber eats all over the place, being delivered, and all of a sudden i remember listening as the stock was starting to drop. it was up all morning. it was over the ipo price. when it started to drop, i heard a trader say, that's what you get when you don't turn a profit. it is something where all of the sentiment turned. it didn't matter before. obviously the stock was rising, there was so much money pouring into this company for so many years. per member how many pre-ipo rounds there were? this was supposed to be one of the biggest listings ever. certainly something we will be looking to to prop up the ipo market moving forward. jason: the size and scope of this is one of the reasons it was so competitive, to get this assignment from the perspective of big wall street banks. they live for this, for the cachet, also for the fees. morgan stanley led the deal. what are they saying? publicly, and what are people saying behind closed doors? sonali: publicly, they are saying nothing. but behind-the-scenes -- uber hasn't blamed morgan stanley for anything.

we have a number of investors who are upset because they felt the price should have been lower. maybe the bankers overhyped the company. last year morgan stanley wanted $120 billion valuation. obviously that was rosy. there's a lot of pressure to please the company to win the deal and keep the value up. behind the scenes, people are blaming the market, and that is certainly true, and this is why the long-term is going to matter. this past week has been bad. morgan stanley's own clients, who bought in in 2016, are almost $10 in the red. obviously this week is bad, but morgan stanley has said this could be a stock that could be one of the next things. the next facebook. jason: like you said, who were the company is happy being priced at four dollars per share, but what does this mean for the bankers' relationship with investors? these are investors they will have to tap again five or 10 years down the road for the next ipo.

sonali: this is a really complicated question. for uber, one of the big problems was fidelity, wellington, a lot of high net worth individuals, were already investors in uber. even tapping them in the first place was a little bit challenging, and honestly these retail investors want a chance to invest in this great new -- i met a guy at business school over the weekend who said he bought one share, just to have one share. again facebook was also a flop. ,i don't know if everyone remembers. it fell in the later days of trading, and i was talking to a business school professor at the university of florida, and he was saying he sold his stock. when he looks back at it, he wishes he had kept it. it is really hard to tell right now whether this is going to be seen as one of the worst ipos in history or one of the great tech stories of all time. jason: in our businessweek extra podcast this week, box founder and ceo tells us how he convinced skeptical venture capitalists to back his fledgling e-commerce idea.

>> that faith was shaken in the beginning. you can imagine 2013, when we were going kind of tin cup in hand, rattling it in front of all the big vc's in palo alto, a sand hill road, a lot of them are like "you are pitching , e-commerce? and grocery e-commerce? talk about a boring industry." ofk about one that is kind outdated by 13 years. a lot of folks would say, we made our last e-commerce investment in 1999, you are a little late here buddy. but i think, over time, the dearth of e-commerce investment in that phase allowed us to thrive because as you look at folks in our "class" of companies, there's not a lot around. not a lot got funded back in 2013, 2014. jason: is that because so many of the early e-commerce internet

-- back to like the web vans -- was there a little bit of vc ptsd going on, that maybe we can't actually do this? >> in their defense, i would see a every single vc firm could show very real and deep scars on how they got burned by e-commerce in web 1.0. they all had those names in their portfolio, and most outside of amazon did not do well from that. jason: i think of cosmo.com, all these names, that transition was going to be -- people will go to stores, they will buy online on this new internet thing, and it is going to be great and we will make a lot of money, but we will have to spend a ton to build that underlying infrastructure. >> you know what's really interesting, in a recent shareholder day, softbank is not an investor in box but i read the transcript at a recent

investor date. masayoshi son apologized to everyone that believed the internet was going to be big 20 years ago. we didn't make money for you then. but now it is really starting to happen. we are going to make money for you now. i think back in 1999 and 2000, it was a false start. all the things that were pitched to investors, people in general, didn't really happen over the next five years, but over the next 20, most of it came true. taylor: and for more of our interview with the box founder, check out our "bloomberg businessweek" extra podcast. download the podcast at bloomberg.com/podcast. jason: traders rethink their , trade war investing strategy as washington and beijing dig in. taylor: plus, why a chinese think tank is struggling to survive. jason: this is "bloomberg businessweek." ♪

jason: welcome back to "bloomberg businessweek." i'm jason kelly. taylor: i'm taylor riggs, in for carol massar. you can also listen to us on the radio upon sirius xm channel 99.1nam 11 30 in new york, fm and washington, d.c. area: am 960 in the bay and through the bloomberg business app. over in the economics section, markets had priced in a short u.s.-china trade skirmish, war, whatever. taylor: but now they are bracing for a much longer, bruising, drawn out fight. jason: senior markets editor michael regan joins us. you have been talking to our colleagues on the desk and also talking to investors who got this wrong. michael there's a consensus : coming intimate that the equity market was ripping higher, and the consensus was that, ok, the trade conflict with china is nearing an end, they would reach a deal soon.

obviously that got ripped up when president trump tweeted earlier this month that he was going to increase tariffs on existing imports, and then came the threats of another set of tariffs on $300 billion more in chinese imports at 25%. like i said, it was a consensus, and whenever you hear that word, i think it naturally should make people worry on wall street what , if the consensus is wrong? it turns out they were. taylor: we talk about scenario analysis. what are you learning about the downside risks we could see on the equities side? michael a lot of people are : talking about a 10% drop, which would take the s&p to the 2600 neighborhood. i think that is just a nice round number where you would get people talking about correction mode again. one policy analyst from raymond james said that he thought that

is the level that would possibly cause president trump to blink. the china and u.s. seem to be at loggerheads on this issue. what side is going to blink? many people are thinking that china may want to wait out president trump's first term in office and see if he's only a one-term president, whereas everyone else thinks president trump -- he obviously doesn't want to go into the election season with a weak stock market. a lot of different scenario analysis going on. jason: if there's one thing i've learned from taylor riggs, it is that you have to look beyond the equities markets. treasuries is a place you dig into as well. if you look at this chart, here are the holders of u.s. treasury securities. china is number one. that complicates this further. michael it really does. : everyone talks about the so-called nuclear option, which would be if china were to

aggressively unload that $1.1 trillion in treasuries, what it could do to interest rates in the u.s. cause a real surge in interest rates. there's a lot of reasons to believe they won't go through with that. namely that effect would cause a , risk-off mood in markets, which would get people to buy treasuries and counteract the effect they would have. also china has ambitions to be a global financial hub, and that would do a lot of damage to that. we talked with alan ruskin at deutsche bank, he thinks this is very far down on their list. taylor: what else does it mean for the bond markets? we think of jay powell, the fed chair, and how he is data dependent, not market dependent. at what point what all of this volatility make the fed more interested in what's going on? michael: that's a great question, and there are two sides to the coin. if we do implement these tariffs on the other $300 billion in

goods, a lot of people think that will finally cause inflation to pick up. pricing pressures have not been great enough to see a big uptick in cpi and pce, which the fed looks at, because inflation has been so tame in the rest of the country. but should we tariff this $300 billion? there is a chance we could pick -- we could see a pickup in inflation, which makes it a more difficult decision for the fed. if inflation is picking up above their target, it is not necessarily something that will want to make them cut rates, even if there is volatility in markets. it is something for the fed to really chew on. jason: mike regan, so smart as always, thank you so much. taylor: another look at china in the features section. beijing's latest crackdown targets the country's liberal economists. jason: we spoke to mark campbell about how president xi is reasserting the state's economic role.

mark: what has been going on with this think tank is something that has been known about among people in the economics community in china, among china watchers in the west. what has been happening to these guys is not a secret. they were and are quite prominent among the more influential of the think tank community in china, very rare, independent economic policy voice. they are silencing, or near silencing, which was something that was really noted among those who care about what's going on in the chinese economy. taylor: talk to me about the transformation of universal -- uniroll from how it was a decade ago to in the most recent years under president xi jinping, and how that has changed. mark: well, taylor, this is an organization that came to sort of mainstream status for quite a while as china opened up in the 1990's and remained open

in the 2000s. they were a part of the intellectual conversation around economics. they also had a consulting business that had clients who included government ministries. this is a group who had every expectation that they had attained a centrality to this discussion in china, a certain protection from the vagaries of political repression, and found that very rapidly taken away. jason: matt, as you so well described in your story, well regarded in china, and also very well-connected throughout the rest of the world, the central figure who you spoke with, he was a visiting scholar at harvard, i believe, and a well-known name among economic circles. what have people outside of china said as this rapid fall

from grace has happened? mark: well, jason, as you mentioned, one of the cofounders, now 90 years old, had something of a following in china and the west. in 2012, he was given an award by the cato institute, a prominent libertarian think tank in washington, and among the libertarian, center-right economics community, he's quite well known. as you can imagine, there's a lot of distress at what has happened in the economics world. scholars who study the chinese economy are very upset at this voice potentially going quiet, and also concerned about what it means and what it signals about the scope for a rational and factual economic debate within china and the ability to do so in a way that is not vetted by the government. taylor: up next brexit politics , may grab the headline, but the

toll on business is grim. jason: plus, experiencing the monaco grand prix like a pro. taylor: this is "bloomberg businessweek." ♪ ♪

jason: welcome back to "bloomberg: businessweek." taylor: still ahead, an express t's guide to real estate in monaco. jason: and where guyana becomes a testing ground to save the world. taylor: and in the politics section, brexit's toll on britain. joel weber joins us now, what is the latest?

we have covered this for three years. what is the latest? joel: we always talk about it from a politics perspective, but we wanted to use a politics moment to talk about a business moment. that is an underlying thing with us, and we look at the data and talked to business owners. these effects, long before we have any form of resolution, are being dramatically felt on the strength of the british economy. jason: and it speaks to the strength of the british pound. that has an effect on what things cost for companies. joel: you can see what has happened in the pound, gdp growth is another. 600 million pounds per week have since the referendum basically disappeared. it is about 2.4% smaller than projections would have otherwise been for gdp. so it is like an incredible shrinking economy. taylor: and you wonder how

anyone can cope with the uncertainty and what that brings. joel: companies like airbus, who employ hundreds of thousands of people, they can't figure out what they are supposed to do about this. and on the other side of the water in europe, the continent does not know what to make of it. all of that adds up to being not a great thing for the uk's economy. jason: and to your point, while politicians figure out what is next, businesses have to make a decisions. i cut up -- cop up with our reporter about this story. >> there are two ways of going about it. one is to look at the macro data and see what the impacts have been. the messages have been pretty clear, growth is lower than it otherwise might have been. about 2% of gdp, but goldman sachs said in a report. inflation is up, the pound has gone down, import costs are rising for firms. that macroeconomic picture is one of difficulty for britain since it voted for brexit. the other way to view it is looking at a firm level, what are companies specifically facing.

again, the picture is somewhat grim. having to prepare for a no deal brexit, we saw lots of firms having to stockpile goods, for example, which meant tying up cash they could use for investments. you have seen companies having orders canceled by european buyers who are worried about new friction in trade because of brexit. it's a difficult picture for britain. jason: let's get down into it and talk about some examples. you talk about some carmakers, nissan is one, how does that play out? >> the nissan case is one where they were planning to build a new sports utility vehicle at its major plant in sunderland, northeast england. they canceled that. and while they have cited multiple factors, one is clearly ast of brexit, insofar potential trade barriers might

emerge means it is much harder for nissan to export those cars to the continent. so when nissan is deciding where they want to build their rexit thecle post-b town. -- the irony, the town, sunderland where nissan is based is the town's biggest employer. and yet sunderland voted for brexit, and quite overwhelmingly. so it can be quite damaging for that town when that plays out. jason: it is fascinating to see that nexus of politics and economics, for sure. we are bloomberg, after all, so let's talk about the city of london, let's talk about wall street banks and how they are dealing with this. i feel like every quarterly earnings call, we hear a question posed to the big bank ceos about what they are doing. they have made some actual moves so far? >> yes, exactly. taking hsbc about for example, enormous bank.

they have had to move subsidiaries and new units into the eu. because after brexit, they would not have the same market access from the u.k. they would have had th before. they have had to spend money on that to the tune of hundreds of millions of pounds. but it goes further than that. the likes of deutsche bank and citigroup, they are shifting billions in assets to the continent to meet regulatory requirements. you also have staff moving as well. you have seen employees from jpmorgan going from london to the likes of frankfurt and paris. there have been multiple effects on the city of london and it has been negative as a whole. jason: money and people moving, who are the big winners in terms of where they are moving? you talked about paris, frankfurt, i feel like dublin comes up in a lot of conversations. you get a sense of kind of where the positives are? >> completely right. the biggest beneficiaries are

three the likes of paris, frankfurt, and dublin. we should mention amsterdam as well because they have seen foreign-exchange and debt markets moving there, too. basically, the other major capitals in europe, berlin is another one that comes to mind. it is those cities that are benefiting at the expense of london. jason: one thing you point out when talking about the banks is that this is not something you can flip the switch and say just kidding, come on back. the u.k. isn't actually going to leave after all, so just pretend it never happened. these are long-term changes, right? >> for sure. and there's costs associated with moving and hassle as well. there is a view that if you have gone to those efforts to make the moves, why would you bring it back? if you have new operations, you can continue as you want. why would you undo that process? that is something the u.k. will have to face up to and it is likely this will go on for years to come.

as the effects of brexit are seen, it could be a continuing trickle of impacts like this. which won't be great for the u.k. taylor: we talk about the cost of brexit, there is no better way than to come to my terminal at tv . looking at home prices in london. and in yellow you have some of the north, year-over-year. take a look. ever since the brexit vote, home prices in london are down almost 5%. rexity showing the cost b had on london specifically as a financial capital. jason: that is exactly right. this is largely about the need for financial services and their appetite to live in london. many of them going to dublin, frankfurt, paris, and elsewhere. up next, a veteran of nasa and google unleashes global surveillance for the masses. taylor: and startups making robots you just might trust. jason: this is "bloomberg: businessweek." ♪

jason: welcome back to "bloomberg: businessweek." taylor: join us for bloomberg businessweek everyday on the radio from 2:00 p.m.-5 p.m. wall street time. the can also catch up on our daily show on itunes, soundcloud, and bloomberg.com. jason: find us online and through our mobile app. in the technology section, orbital insight is opening its satellite network to anyone. taylor: that means you can monitor whatever you want anywhere you want. jason: we talk to reporter ashlee vance. >> orbital insight is a startup founded in 2013. the founder, this guy named james crawford, he used to work at google on a lot of ai stuff at nasa.

he got this insight that a lot of cheap, small satellites were starting to be launched that would surround the earth and start taking a lot more pictures. traditionally, pictures of the earth are rare and expensive and he saw this day coming. that they would be tons of them. and that if you apply some ai software and some analysis to all of these pictures, you could start to learn some interesting things about how the planet operates. jason: tell us about how and what the data are that are being collected? >> it is interesting. there are a couple companies doing this, orbital insight seems to be the leader in this nascent market. but as you mentioned, they use these satellite images to look down on the earth and count things like the number of cars in a walmart parking lot to see

how busy the back-to-school shopping is. they can look at crops to see how healthy the corn is and to predict the yield. over the years, they have added a ton of stuff they count. they can track oil being stored in china. these days, they add gps data gathered from smartphones to know how many people are working inside of a factory, how many people are visiting a mall. they take all of this information and make economic predictions about the health of the worldwide economy. taylor: i love that you can make financial insight into this. who knew that being able to take photographs of a car could give you insight into the health of a company, et cetera. you also mention a subsector called orbital go which is where personal users can go in as a self-service application. describe that to us as well. >> that is what the company is launching this month.

traditionally, this stuff has been pretty hard to use. and if you wanted to run analysis on the images they gather, you are working hand in hand with orbital to code this thing up. you tell them a specific problem and they are almost like a consulting firm. so this product, orbital go, has taken a few years to develop. but it is much more like what you would think of when you hop on to google, google maps, or google earth. where you get this console and you can count how many houses are going up in houston and i want it to be from january to june and in just this part of houston. you literally circle the map of where you are looking at and click enter. now, the software just runs the analysis and spits the answer back to you. this technology, it has taken a while for people to know it even exists and it was hard to use.

so this is a step towards regular people hopping on and seeing if there is anything useful in this type of data. taylor: also in the technology section, south korea's transition to 5g could usher in a new era of interactive robots. jason: that could bring it ai into our lives in all kinds of ways, big and small. >> south korea is where 5g is being rolled out nationwide. there are mobile carriers in april setting target dates and it has happened in the last couple of weeks. 5g is happening, but south korea is where it is everywhere. and it is all about speed, these speeds are like a gazillion times faster and it is an enabling us to do something we never saw before. the speed is enabling the creation of robots and machines that will make lives so much

easier. jason: i have to say, i am having a hard time getting my head around how much faster it is. 3g to 4g, it is like yeah, it's a little faster. but this? >> this is a substantial jump, something like 20 times faster. you could download an entire movie in the span of two seconds. we are talking about quite a difference from 4g. when you think about how recently we were at 3g, it is really groundbreaking. you have companies like samsung, lg, hyundai going beyond what they are traditionally creating. we are seeing robots designed for use in autonomous cars. beyond the autonomy of the driving itself. robots that will interact with humans. this is a big focus, this idea that it is something you can interact with. you should be able to have an

emotional connection with your robot. [laughter] >> that sounds insane, by the way. talk to me more about that. we talked about increased speed and then you bring in robots, how does this all connect? >> for example, let's move away from autos and think about how robots might be useful in helping the elderly. or people with certain health needs. ai is being brought into the mix so that a robot can really come to understand the particulars of the individual it is serving. and vice versa. so that it can pick up on voice changes and body changes in a way that can be useful to deliver medicine more immediately, let's say. our step in and do something. this is happening in cars, too. we talk about how these robots being developed are going to be very useful for example to detect whether a driver has fallen asleep. the drivers that are the ones

who are supposed to be monitoring what is going on. with the autonomous driving. but there are many different ways. is not just like i want to like my robot, but it is training over time this bot and machine to be able to pick up on signals and cues and to be more responsive in whatever the situation is. taylor: up next, paying to keep rain forests intact. jason: and watching the monaco grand prix like a business tycoon. taylor: this is "bloomberg: businessweek." ♪

taylor: welcome back to "bloomberg: businessweek." i am taylor riggs in for carol massar. jason: and i am jason kelly. you can also listen to us on the radio on sirius xm channel 119, and on a.m. 1130 in new york, 106.1 in boston, 99.1 f.m. in washington, d.c. taylor: a.m. 960 in the bay area, london on dab digital, and through the bloomberg business app. jason: over in the features section, a photo essay about a new effort to save guyana's rainforest. >> guyana is a small country east of venezuela. it has 45 million acres of the amazon rain forest. that is a forest about as big as washington state. the country had argued to the world that forest has value before it is cut down. the trees in the forest take carbon dioxide out of the air, they store the carbon in wood and release oxygen. in 2009, norway, a country that made its money from pumping oil

out of the north sea, offered them $250 million, a lot of money for a country that is 750,000 people, to limit its deforestation and to maintain one of the lowest deforestation rates. guyana has taken that model and ran with it and now it is at a crossroads. because pretty soon, exxon will pump more oil off its shore than venezuela pumps. taylor: talk to us about those crossroads. because it does feel like a very sad story when you think about climate change. but of course, a big company like exxon we know investing money that could help the country as well. take us through this crossroads. >> so guyana represents a very positive model. in that they have worked with international scientists to

develop a system to know exactly how much carbon is stored in their trees. they allow a local population, most of whom are living on less than eight thousand dollars a year, to make a living relatively sustainably by cutting down trees and mining, but to do so in a very regulated way. those systems of regulation have allowed guyana to maintain one of the lowest deforestation rates in south america. it is a remarkable story of a small government doing a really good job. taylor: and in "pursuits," a guide to the monaco grand prix. jason: each may, many of the world's wealthiest people go to monaco to watch the massive formula one race. taylor: our reporter told us what to expect. >> fast cars. fast people. the monaco grand prix started in 1929 and has been running every year since 1955.

i have never been, but our car columnist has been. i said to her, people want to know. this is a crazy, intense experience of cars racing through the streets of monaco. what is it like, how much does it cost? she gave us the rundown, it is really cool. jason: i'm sure you really had to twist her arm, please write the story and tell us what you see in monaco. [laughter] it actually is a nice story, you get a sense of the scale and the highness of it all. >> this is a place with lots of people who have outward facing wealth getting together. it is not a subtle environment. huge yachts, $10,000 to get into nightclubs, $8,000 a night hotel rooms. these people, it is famous people, drake, elton john, it is billionaires, all coming to watch this race which is a real adrenaline rush.

because it is right through the 160ets, lap after lap, miles. it is just a thrill. taylor: put this into perspective about how this sort of compares to other races we have seen in terms of the money and what else is involved. >> this brings in about $100 million. there are races all over the world and some very cool ones. a night race in singapore. but this is the one, this is the most ritzy in terms of who goes. most cities have to pay formula one for the benefit of having it come to their city. [laughter] because everybody makes money off of it. but monaco does not have to pay anywhere, $30 million they don't have to pay. jason: i love that element. monaco is like oh, others have to pay? we aren't going to do that. and it is not like they don't have the money. sitting untaxed in monaco's bank $1 trillion account. my god. >> sitting there. that is why people want to visit and then go live there. jason: let's talk about that,

because real estate in monaco is a whole different ballgame, to say the least. what do we need to know? let's say taylor is in the market. [laughter] >> real estate has gone bananas in monaco for a lot of different reasons. partially it is brexit, the u.k. wealthy just don't know what is happening, so they are moving. but it is also a very light tax regime. there is very low inheritance tax. no income tax, no capital gains. a lot of people are moving there and it is becoming the most expensive place to buy real estate, beating hong kong which forever was number one. taylor: take us through these apartments. there are these incredible photos as we talk about these new, modern condos. but they are pricey. like you say. >> we focus on one development in particular, want to monte carlo, which is actually a rental building, more of a complex. if you rent there and meet the

other residency requirements, which is having a certain amount of money on land in monaco, you get the benefits of residency and you get to be in that tax regime. so this is a huge new development, 37 apartments and annual rent is from 250,000 euros a year to 3 million euros a year. that is rent. the average price per square meter in monaco is 48,800 euros. yeah, so that is like $4500 per square foot. if you think about new york, which is very expensive. i live in brooklyn, probably like a thousand dollars per square foot, it is more than four times that. it is crazy. taylor: you talk about the differences as well, the requirements to go there as a u.s. citizen versus french citizen. there is a difference in monetary value in terms of your bank account. >> yeah. if you are american, you pay taxes wherever you are.

and if you are french, they don't make it easy. you don't really get the benefits moving to monaco. so you don't see a lot of americans and french people, but it is the global wealthy that are going. taylor: "bloomberg: businessweek" is available on newsstands now. jason: what is your must-read? taylor: i really liked ashlee vance's story on orbital insight, a company taking satellite images of what is going on. you can see how any cars are in a parking lot to see if you are bullish or bearish. jason: i love this, too. it has moved from hedge funds and big companies to our smartphones in many ways. i have to say, i love the cover story. wework, one of these companies that we know, we walk by their offices every day. all over the world. what is underneath it, the cult of personality, fascinating. taylor: and are they a tech company or real estate company? and you can find all of these stories on businessweek.com over the weekend. jason: and check out our podcast

available on itunes, soundcloud, and bloomberg.com. taylor: more bloomberg television starts now. ♪

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