♪ >> welcome to "bloomberg businessweek." i'm taylor riggs in for carol massar.

>> i'm jason kelly. we are here at bloomberg headquarters in new york. taylor: and in this week's issue 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: in the global story -- the cover story, we work is expanding. our editor, joel, is here. great to have you. joel: 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. wework has confidentially filed 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 the 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.

: the 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 wework, 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 then rent out parcels 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 in the story, to give them access to more money and more space, which are things that the ceo told me it needs to grow. >> who was the founder and leader of we work that drives the culture of that company? has twoework cofounders, 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 is very gregarious, very charming. he is known as this fierce negotiator. he also has this sort of kumbaya spirit around him, of wanting to help people connect to their purpose, help people live better together, help people do. and one of the slogans that is going what wework 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, as well. i think he's just a little brash, but also very smart, and a very interesting figure. >> 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, and yet, as you say, he is a tough negotiator. he is 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 wework's nine years of existence. there or -- there are plenty of landlords will privately tell you that he has cut them out of deals or been generally a menace to the traditional real estate

industry. i think that is good. this is a stodgy industry that is looking to benefit from having something new, but he also has brought i think criticism onto wework for the choices he has made. he has also owned stakes in buildings that have been leased by wework, 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 or 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 we company, it is part of wework but it is separate. the plan is for adam to sell his stakes in these wework rented buildings at cost.

he emphasizes in our story that this will mean a personal loss for his personal investments, 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. >> right. 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 wework 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 wework 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 if in a downturn, there might be repercussions that we haven't seen yet. taylor: now, jason, i was able to use the terminal and get all the data we need for the valuation of wework. come inside with me and take a look at how the valuation has exploded. wework 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 evaluation, 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, no longer so

exciting. taylor: and the blame game begins on wall street after uber shares tumble in the first two days of trading. >> 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 for "bloomberg businessweek" every day on the radio from 2:00 to 5:00 p.m. london time, and catch up on our daily show. listen and subscribe to our podcast, including at itunes. 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. 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, and take a look at both lyft and uber, both declining since they went public. i think this speaks to, jason, the lack of profitability. jason exactly. : the maker of the meatless burger that is catching on across the country. it is really catching on with investors. back to some investors are blaming morgan stanley as how the bank handled that ipo. taylor: here is our reporter. >> 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. more than eight billion dollars for uber, and that is a great thing. they have a lot 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 in the first

place, and investors have lost some faith, especially in the near term. >> 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. then when it started to drop, i heard a trader say, that's what you get when you don't turn a profit. right? so it is something where all of the sentiment turned. it didn't matter before. right? obviously, the stock was rising. there was so much money pouring into this company for so many years. this was supposed to be one of the biggest listings ever. and, certainly, it is something we will be looking forward to to prop up the ipo market moving forward. >> 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. of course 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. a number of investors are upset because they felt the price should have been lower, maybe the bankers overhyped the company. there was a point last year where morgan stanley and all of the other lead anchors wanted $120 billion valuation. obviously, that was rosy. there's a lot of pressure to keep the value up. behind the scenes, people are blaming the market, and that is certainly true, right, and this is why the long-term is going to matter. this past week has been bad. morgan stanley's own clients, who brought in in 2016, are almost $10 in the red. and so, obviously, this week is bad, but morgan stanley has said this could be. that could be one of the next things.

it could be like the next facebook. >> 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. 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. i met a guy at business school over the weekend who said he bought one share, just to have one share. right? facebook was also a flop. i do not 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, who is saying that he sold his stock. when he looks back at it, he wishes he had kept it. >> yes. sonali: so it is really hard to

tell right now whether this is going to be seen as one of the worst ipo's in history r1 of the greatest 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 we were going kind of tin cup in hand, rattling it in front of all the big vc's in palo alto, a lot of them were like, "you are pitching e-commerce? grocery e-commerce? talk about a boring industry." and talk about one that is kind of outdated by 13 years. and so, a lot of folks would say, "wait a minute." "we made our last e-commerce investment in 1990 nine, so you are a little late, buddy."

but i think, over time, the dearth of e-commerce investment in that phase allowed us to thrive, because you look around at those in the class of our companies, there are not a lot around. >> it is that because so many of the early -- i'm going way back to 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 -- i would say every single vc firm could show very real scars on how they got burned by e-commerce and web 1.0. they all had those names in their portfolio, and most outside of amazon did not do well from that. >> i think of cosmo.com, all these names, that transition was going to be, all right, people are going to 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. >> yes, you know what's really interesting, in a recent shareholder day, so, softbank is not an investor inbox but i read the transcript at a recent investor day, masayoshi son apologize 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, and we are going to make money for you now, and 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, the irony is that most of it came true. taylor: and for more of our interview with the boxed founder, check out our "bloomberg businessweek" extra podcast. you can download your podcast at bloomberg.com/podcast.

jason: up next 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." ♪

>> welcome back to "bloomberg businessweek." i'm jason kelly. >> i'm taylor riggs, in for carol massar. remember, you can watch us on sirius xm channel 119, and new york. jason: and also through the bloomberg business cap. so over in the economics section, markets had priced in a short u.s.-china trade skirmish, war, whatever you want to call it, taylor. taylor: but now they are bracing , for a much longer, bruising, drawn out fight.

jason: michael regan joins us. you have been following this closely. 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 in to the equity market, 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 that are already being tariff, -- then, 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, it should make people worry on wall street, what if the consensus is wrong? it turns out they were on this one. taylor we talk about scenario : analysis, sort of the what if's, 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. that's just a nice, round number where you would get people talking about correction mode. one policy analyst from raymond james who talked to my colleague, emily, for the story said that he thought that is the level that would possibly cause president trump to blink. 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. so, like you said a lot of , different scenario analysis. jason: if there's one thing i've

learned from taylor riggs, it is that you have to look beyond the equities market. treasuries is a place you dig into as well. if you look at this chart, here are the holders of u.s. treasuries, 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 potentially do to interest rates in the u.s., because 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, and 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, one of the currency strategists. he thinks this is very far down on their list.

taylor: what 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 would all this volatility make the fed more interested in what's going on? michael: it'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 believe that will finally cause inflation to pick up, and the pricing pressures haven't 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, then there is a chance we could pick up in inflation, which makes it a more difficult decision for the fed. if inflation is picking up above their target, it is not necessarily the type of thing that is going to make them want to cut rates even if there is , volatility in markets. so i think it is something for

the fed to chew on. jason mike regan, so smart as : always, thank you so much. taylor: another look at china in these section -- beijing's latest crackdown targets the economists. jason: we spoke to reporter mark campbell about how president xi is reasserting the states economic role. matt: what has been going on with this think tank is something that has been known about among people in the economics community and china, among china watchers in the west, so 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. and so, they are silencing, or near silencing, which was something that was really noticed among those who care about what's going on in the chinese economy. >> talk to me about the transformation of this, from how

it was a decade ago to in the most recent years under president xi jinping, and how that has changed. matt: well, taylor, this is an organization that attained sort of a mainstream status for quite a while, as china opened up in the 1990's and remained open in the 2000's. they were a part of the intellectual conversation around economics. they also had a consulting business that had a clients who included government ministries. so this is a group who had every expectation that they had attained a sort of centrality to this discussion in china, a certain protection from the vagaries of political repression, and found it very rapidly taken away over the last few years. >> matt, as you so well described in your story, well seemingly, 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. as you said at the top. what have people outside of china said as this rapid fall from grace has happened? matt: well, jason, as you mentioned, one of the cofounders, now 90 years old, has something of a following, both in china and the west. in 2012, he was given an award by the cato institute, a very prominent libertarian think tank in washington, and among the sort of libertarian, center-right economics community, he's quite well known. as you can imagine, there's a lot of distress at what has happened there 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: and 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." i am jason kelly. taylor: and i am taylor riggs,

in for carol massar. still ahead, an express guide to real estate in monaco. jason: and where guyana becomes a testing ground to save the world to save rain forests. taylor: and in the politics section, brexit's toll on britain. editor joel weber joins us. you have been covering this for three years. what is the latest? joel: we always talk about it from a politics perspective, but we actually wanted to use a moment to talk about a is this moment, which is really an underlying thing with this. data andooked at the talk to business owners, these effects, long before we have any form of a resolution in terms of what brexit will look like are , being dramatically felt on 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

basically disappeared since the referendum. it is about 2.4% smaller than the projections would have otherwise been from a gdp perspective, so it is like an incredible shrinking economy at this point. taylor: and then, you wonder how anyone can cope with the uncertainty and what that brings. joel: what really comes through in this story is companies like airbus, who employ thousands of people, who cannot figure out what to do about this and on the , other side of the water, 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 -- make some decisions. i caught up with reporter joe about this. joe: >> 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. 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, and again, the message and it sure is somewhat grim. we saw lots of firms having to stockpile goods, for example, which meant tying up cash that would otherwise been used for investment. you have seen companies having orders canceled a european buyers, because those european buyers are worried about the friction in trade due to brexit. on those two ways of looking at it, it is 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, for instance? joe: the nissan case is one where they were planning to

build a new sports utility england atnortheast its major plant in sunderland. they have canceled that plant, and while they have cited multiple factors, one is clearly that of brexit. potential trade barriers might emerge means it is much harder for nissan to export those vehicles. britain makes less sense. and the town where it is based, it is the biggest employer. and the irony, where sunderland they 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. well, 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 ceo's about what they are doing. they have made some actual moves. joe: yes, exactly. taking hsbc about for example, an enormous bank, they have had to move subsidiaries and new units into the eu. after brexit, they would not have the same market access from the u.k. that they would've had before, so 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 in the process of shifting billions in assets to the continent to meet regulatory requirements there, and you also have staff moving as well. you have seen employees from jpmorgan going from london to the likes of frankfurt and paris. so there have been multiple effects on the city of london and it has been negative as a whole.

jason: what is interesting is you are talking about money moving and people moving. what are the big winners in terms of where they are moving? you talked about paris, frankfurt, i feel like dublin comes up. do you get a sense of where the net positives are? joe: the biggest beneficiaries are the likes of paris, frankfurt, and dublin. i think you should mention amsterdam as well because they have seen foreign-exchange markets and that markets move there. debt markets, too. 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 of the things 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. is not going to leave after all," and these are long-term changes, right? costs associated

with moving and a lot of hassle as well. there is a view that if you have got to the efforts to make the moves, why would you bring it back necessarily? if you have new operations in the eu 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. that would not 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 . take a look, ever since the brexit vote, home prices in london are down almost 5%. really showing the signs of the cost that brexit has had on london, given that it is the 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. well, up next, a veteran of nasa and google unleashes global surveillance for the masses. taylor: plus, the startups making robots you just might trust. jason: this is "bloomberg: businessweek." ♪

jason: welcome back to "bloomberg: businessweek." taylor: i am taylor riggs, in for carol massar. join us for bloomberg businessweek everyday on the radio from 2:00 p.m. to 5:00 p.m. wall street on. the can also catch up on our daily show, and catch our podcast 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. all of us. taylor: that means you can monitor whatever you want

anywhere you want to across the planet. 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 of it. traditionally, pictures of the earth are rare and expensive and he saw this day coming. when there 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 peer down, so they can count things like the number of cars in walmart parking lot. they can look at crops to see how healthy the corn is and to predict what the yield would be, and over the years they have , added a ton of stuff they count and track, all of the oil being stored in china. these days, they had gps data they have gathered from people's smartphones to know how many people are working inside of a factory, how many people are visiting a mall, and so they , take all of this information and make basically economic predictions about the health of the worldwide economy. taylor: i love that you can make financial insight into this. right? i mean who knew that being able , to take photographs of a car could indicate the health of a

company, of that parking lot, et cetera you also mention a subsector called orbital go which is where users can go in as a self-service application. describe that to us as well. ashlee: that is what the company is launching this month. traditionally, the stock has been hard to use. if you wanted to use analysis on the images they gather, you are working hand in hand to code this thing up. you tell them a specific problem , and they were almost like a consulting firm, where they were walking you through what to do. 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 consul, and you say, "i want to count how many houses are going up in houston, and i want it to be from january to june, and i

want it to be in just this part of houston," and 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 exist, it was hard to use, so this is a step towards regular people being able to hop on and see if there's 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 different ways, big and small. here is our editor. reporter: south korea is where 5g is being rolled out nationwide, right? dates,re a set target and 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. it is all about speed. these 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 life so much easier. jason: i have to say, i am having a hard time getting my head around how much faster it is, because 3g to 4g, it is like yeah, it's a little faster. but this is a quantum leap. reporter: this is a substantial jump, something like 20 times faster. you can download an entire movie in the span of a second or two seconds, something like that. we are talking about quite a difference from 4g. when you think about how recently we were at 3g, it is really groundbreaking. so you have companies like samsung, lg, hyundai going to look at the opportunities here to go beyond what they are traditionally creating.

robots beingw see 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, that you should be able to have an emotional connection with your robot. taylor: that sounds insane, by the way. so talk to me more about that. because we talked about increased speed, and then we bring in robots, so what do we want them to be doing? reporter: 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 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, or 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 to detect whether a driver has fallen asleep. you know? 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, so it is not just like i want to like my robot and be friends with 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 that it is being placed in. taylor: up next, paying to keep rain forests intact. jason: and watching the monaco grand prix like a globetrotting 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, also 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, in london on dab digital, and on the bloomberg business app. jason: over in the features section, a photo essay about a new effort to save guyana's rain forests. taylor: here is our reporter. >> guyana is a small country east of venezuela. it has 45 million acres of the amazon rain forest.

that is about as big as washington state. they have argued to the world that force has value for it is cut down. the trees in the forest take carbon dioxide out of the air. they store the carbon and , and theyr wood release oxygen. in 2009, norway, a country that made its money from pumping oil out of the north sea, offered guyana $250 million, a lot of money that is a batch for a country that is 75,000 people, to limit its deforestation and to maintain one of the lowest deforestation rates in south america. 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: yes, so talk to was a little bit more about those crossroads, because it does seem like a very sad story when you change and climate

all of the serious discussions we are having about that, but, with exxon investing money, which could also help the country. take us through this crossroads. guyana represents a very positive model. they have worked with international scientists from one group and others 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 $8,000 a year, to make a living relatively sustainably by cutting down trees and mining. but to do so in a very regulated way. so 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 made many of the

world's wealthiest people had to -- head to monaco to watch this race. taylor: our reporter told us what to expect. reporter: fast cars, fast people. the monaco grand prix started in 1929 and has been running every year since 1955. i have never been, our car columnist has been. this is a crazy, intense experience of cars racing through the streets of monaco. what is it like? how much does it cost? gave us the rundown. it is really cool. jason: i'm sure you really had to twist her arm. please go to monaco and tell me everything that you see. it is a nice story. you get a sense of the scale and s of it all.ton-nes chris: this is a place where

people with outward facing wealth get together. it is not a subtle environment. it is huge yachts. $8,000 a night hotel rooms. it is famous people, drake, elton john, billionaires, all coming to watch this race which is a real adrenaline rush. it is right through the streets. laps, lapse -- laps, and and laps. 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. chris: yes. so this brings in about $100 million. there are races all over the world and some very cool ones. there is like a night race in singapore, but but this is the most ritzy in terms of who goes. monaco, most cities have to pay formula one for the benefit of having formula one come to their city because they make money off of it, but monaco does not have to pay anywhere, $30 million they don't have to pay. that element that

monaco is like, "oh, others have to pay? we do not have to do that." have not like they do not the money. $1 trillion sitting in untaxed in monaco's bank account. $1 trillion, 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? taylor is in the market. taylor: [chuckles] chris: real estate has gone bananas in monaco for a lot of different reasons. part of it is brexit, the wealthy just don't know what is happening, so they are moving. but it is also a very light tax regime. so there is very low in inheritance tax no income tax, , no capital gains. so a lot of people are moving there and it is becoming the most expensive place to buy real estate. it used to be hong kong, which was number taylor: there are

one. incredible photographs in the magazine this week, as we talk about these new, modern condos. but they are pricey. >> we focus on one development monteticular, called one carlo, a rental building, more of a complex, and if you rent there and meet the other residents, the requirement is having a certain amount of money on land in monaco, and you get the benefits of residency and you get to be in that tax regime. so the one monte carlo is a huge, new development. 37 apartments and annual rent goes from 250,000 euros a year eru -- euros a year. that is rent. chris -- jason the average price : per square meter in monaco is 48,800 euros. chris: yeah, so that is like $4500 per square foot. if you think about new york, which is very expensive. so i live in brooklyn, probably

like $1000 per square foot. it is more than four times that. taylor: you talk about the well, like being a u.s. citizen, the requirements going there, being a 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. if you are french, they don't make it easy. if you are french, you do not really get the benefits of moving to monaco, so it is the global wealthy that are going. taylor: "bloomberg: businessweek" is available on newsstands now. jason: also available on bloomberg.com and on our mobile app. ok, so 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. for example you can see how any , cars are in a parking lot to see if you are bullish or bearish on the consumer. jason: i love this, too. it is moving to our smartphones in many ways. i have to say, i loved the cover story, wework.

it is one of those companies we all know, we walk by their offices every day. 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 and more 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. ♪

carol: i'm carol massar in boston, in for emily chang. this is the "best of bloomberg technology." we bring you all of our top interviews from this week in technology. coming up, we highlight our coverage from boston, including the innovations and industries that are driving the city. we have got guests leading the way in biotech, academia, and sports. plus, we sit down with steve pagliuca, getting his thoughts on the trade war, volatility, and the future of professional sports. and turbulence a