off, we will see. troubling next, a reality at victoria's secret. jason: raising capital and standards. this is "bloomberg businessweek ." ♪ >> welcome to "bloomberg businessweek." i am jason kelly. >> i am taylor riggs. of democratichts debates with the crowded field of candidates. >> bloomberg's exclusive interview with mexican president lopez over door. -- lopez obrador. in his first interview with an

international news outlet since taking office. jason: the brewing battle for dominance in the video industry. why 2020 will be the hunger games of the media industry. we began with joel weber. how do you put an issue like this together? to programoal was conversations at backyard barbecues. streaming will be a conversation that unfolds over the next year. goia and tech companies will to the mattresses and spend billions warring with each other. story, walkher big me through that. joel: victoria's secret, a huge business rising for years, and now it is starting to fall. the jeffrey epstein scandal continues to unfold, so we step aside, this epstein business is about to go through a lot of changes. jason: lance armstrong is back.

joel: this inspired me for the tour de france season. lance is not a name we hear much anymore, he was brought down by another scandal. is there a chance at redemption? he has amassed a huge audience in podcasts. happens ton is, what a name that gets tarnished, and i is there a chance at a second act? jason: lance took us inside his jason: welcome back to "bloomberg businessweek." head, and interesting place. i am jason kelly. i am taylor riggs. joel weber, thank you so much. taylor: i want to take a look at the democratic debates. you can also listen to us on the radio. politics editor joins us. in london on dab digital. give us your key takeaway. >> we saw both ninths tuesday taylor: time is not being kind and wednesday, it was the moderates versus the progressives. to victoria's secret. the progressives getting more jason: jeffrey epstein's decade-long relationship is attention in the election cycle, and some folks making a last weighing on the company, but not

ditch attempt to get into the race. jason: the first night it was the only issue for the lingerie brand. victoria secret has struggled in aggressive's, progressives, a changing consumer environment. progressives. taylor: that is exactly what i everybody else on the wings wanted to look at, taking a look trying to get the attention away from bernie sanders and elizabeth warren. >> they were together in the at annual revenue. there are two ways to look at middle of the stage, they are this. each other's chief rivals. they teamed up and beat back it is off its highs from 2017. it is still above $7 billion in these moderate arguments against what some would say are their annual revenue. extreme policies. they have a dominant market joe biden, all eyes were position. on him, but then he said take it some of the worries are melting. easy on me, kid. taylor: here is bloomberg retail what was that? >> that was an eyebrow raiser. reporter. >> is not a great moment for victoria's secret. things he has going against him, race relations. their ceo, who also runs bath , is a class woman. and body works, he has a long harris, it did not time friendship with jeffrey look at for him to say that right away. by josh great story epstein. at one point jeffrey epstein was the power of attorney for him. green online that everyone should check out. they severed ties a dozen years ago, but the skeletons in that

thank you so much. president trump's current policy closet caused more issues for the company in terms of their is hard to get a handle on. taylor: sending mixed messages modeling agencies and responding to consumer demand. on a strong dollar policy last week, president trump told jason: beyond the relationship reporters is a beautiful thing, between these two men, it is but he would not rule out taking safe to say, more to come on action to weaken the currency. president trump: the dollar is that. it feels like there is more to strong, the country is strong. the dollar makes it harder to be revealed. this is coming at a time when compete. victoria's secret does not i did not say i would not do something. taylor: he did not get what he wanted after jay powell sent the very 2019. .> not at all dollar stronger on wednesday. jason: we were watching it on real-time. victoria's secret has gotten a lot of criticism for not being what trump wants for the dollar. bdy positive. >> mixed signals is how i would describe it. the past few weeks he has had they have had a lot of secretary mnuchin say we have a competitors come into the space and say, we want to make strong dollar policy. lingerie for women and not just larry kudlow said we will not men to look at. intervene. trump said he had not ruled out victoria's secret has not quickly shifted to that trend. that option. jason: it is fair to say, no one

it is a confusing time, a lot of sex andntially used people are raising the question, is the u.s. committed to the more specifically sexiness to better effect or more profitable strong dollar policy. taylor: to understand why this effect than victoria's secret. is so important, take us back to the 1990's where this began when intoord sexy finds itself we instituted a strong dollar policy? >> the u.s. is unique in that it the names of the products. >> literally dozens of products with the name sexy in it. is the only nation that prefers to have its currency be strong. ory, it was that was the policy put in place in 1995 by then secretary treasury rubin. founded by a man who went into a store to buy lingerie, did not love the experience, and said, i the dollar policy has been left are create a store were men to the treasury. that is not the case now. comfortable buying women's it was introduced as a underwear. they were founded with men in commitment that the u.s. would mind. taylor: it is not just not devalue its currency, and businesses behind the time. that in turn boosted demand for u.s. treasuries, which has been we turned to venture capital in silicon valley. had itsequoia capital important the way the u.s. finances itself. jason: also important to the first female partner, she had a reputation for a superstar. rest of the world. she knew how to close a deal, but still faced challenges. something the rest of the world she is the first u.s.

can look to, that investors can look to, an area of certainty in investing partner at sequoia a volatile world. >> absolutely. capital who is a woman. the firm was founded in 1972, we have a deep liquid bond and four decades were no women market where foreign investors can rest assured that the partners in the u.s. country is not going to dbase then a couple of years ago the its currency. -- debase its cvurrency. firm hired the former product manager at google, and ceo of a that is why we have seen the dollar emerges the haven startup. currency of choice and is the it was a big deal, and everybody world's haven asset. taylor: we talk about dollar was looking to see how she did, especially since sequoia had policy, rates, and then you fall that over into a much discussed been in the news a couple times topic, foreign inflows, and how over things partners had done a strong dollar does attract that people thought were not female friendly. foreign inflows. there was a lot riding on her title dynamics together for us. everyone iftime for shoulders. jason: specifically on this network, i am quoting here, he the u.s. shifts away from a strong dollar policy. said, we are not prepared to you have the u.s. borrowing a lower our standards, when asked record amount of treasuries to plug its deficit. for investors, in a world where about bringing in women

partners. she persevered, takes a 13 trillion of debt is negative partnership, what has her experience been like? > yielding, they do not have a lot of options. foreign holdings are at a record >> a lot of people thought she high. we have not seen demand yet. was brought in as a direct result of those comments. the u.s. is more dependent than they had been trying to recruit her before that, but the timing ever on foreign inflows, it is a was unfortunate. crucial time. taylor: up next, bloombergs this crazy exclusive interview with mexican experience she had after she president lopez-obrador. joined sequoia. normally partners from big down with john prestigious firm have to be careful when they go out into micklethwait for his first the world, they get mobbed. interview with an international news outfit since taking office. taylor: this is "bloomberg businessweek." every on-chip in error wants to ♪ pitch them there startup idea. -- every entrepreneur wants to pitch them thier startup idea. there were lots of entrepreneurs and people who normally would have getting their eye teeth to talk to sequoia capital.

people did not know who she was, but she described walking around her,oom and people look at saw a young face, an asian woman , and did not look at her name tag to see who she was. they assumed she was in marketing or not an important person. they did not need to look at her name tag. that would not happen now because she is a more recognizable figure. anecdotea devastating that shows the subconscious mindset that people in technology have. taylor: ahead on "bloomberg taking on netflix and why try 20 will be "the hunger games" in the tech industry. this is "bloomberg businessweek ." ♪

taylor: welcome back to "bloomberg businessweek." i am taylor riggs. jason: i am jason kelly. join us every day on the radio and catch up on our daily show

on podcast, get that at itunes or soundcloud. taylor: you can find us online at business week.com. now bloombergs exclusive interview with mexico's president andres manuel lopez obrador. jason: he set down with editor-in-chief john micklethwait in mexico city, his first interview with an international news outlet since taking office. they began with a discussion about their neighbor to the north. president lopez obrador: we are neighbors, and this neighbor makes it mandatory for us to understand each other. agreed tow, guatemala a third country agreement to do what you were talking about.

they have to seek asylum in guatemala rather than going to america. would you let mexico agreed to the same? president lopez obrador: we would not. we are enforcing a program to reduce the number of migrants. with protection to those coming into mexico, migrants have been murdered. we have had some cases like that. jason: welcome back to "bloomberg businessweek." that is something we do not taylor: still ahead, the hottest want, and yet we have mobilized the national guard because it podcast during the year and in was a necessity. all of sports from a former cyclist lance armstrong. he is the comeback kid. jason: plus, our interview with we already had that plan since nasdaq ceo unmoving company and before the threat of tariffs, and the results have been good. beyond trading. taylor: and the $20 million car best is toinsist the for sale. jason: but first, joel weber is

back with us with this week's look into the causes of this. interviewedou were global cover story. i've got to say, i love this cover. joel: this is a really expensive by bloomberg in 2017, you , theed donald trump war that is about to unfold. quotation was, having a campaign we will have a lot of different streaming platforms act by the of hatred against immigrants. biggest media and tech companies he does not want mexican immigrants in america. out there. do you still believe that? disneyetflix, hulu, i thinkt lopez obrador: apple, everybody is in this game. , you have expensive as we normally say, he has been doing a lot less of that now. netflix alone spending 4-5,000,000,000 dollars waiting states,as in the united for these old media titans to this was a different discourse. catch up. are they willing to spend that much as well? of an anti-mexican joel: they kind of have to come discourse, but now president and that is the takeaway. nobody is going to walk out of trump is more moderate. this whole. my favorite netflix takeaway is mexicanre moderate with that the marketing budget is as big as hbo's programming budget. roots? president lopez obrador: yes, we are talking lots of money. jason: and there are great this is something noteworthy. details in the interview and the

we are grateful to him for that. story about how they are john: when we look at the spending that money. joel weber, thank you so much. mexican economy, you are hoping more on theser for it to grow 4%, and this week there are worries it may go into services, here is the reporter who wrote this week's remarks. recession. >> it is this incredible showdown. consumer spending is not high next year, it is going to get and industrial output is not high. do you think mexico will go into even more fierce and brutal for recession this year? president lopez obrador: no, no. all of these tech and media we are doing fine. companies. youn: we have talked to we are doing fine and doing well. the economy is not growing as we before about this collision course these companies have been would want it to grow, but on on. it has been looming for a while, the other hand, there are no but this is where it comes to bear. risks of recession. netflix does not have this to 4% in thisng themselves anymore. and disney seems to be -- >> disney is leading the charge. six-year administration. disney plus arrives in november say, how canns may and will be huge. next spring, we will have hbo you go from 2% to 4% in mexico? max. nbc is putting together their before the neoliberal. streaming subscription service. iod, before 1983, since the

for a long time, it was netflix, a little amazon, maybe check out cbs. all of a sudden, it is this wide mexican revolution, until 1983 open field. .e grew 6% per year taylor: and you have to hand it to netflix. they really paved the way and it growthas a period which feels like everyone else is playing catch-up. how worried is netflix? >> i don't think they are too was 6% with no devaluation, worried in the sense that they without inflation. have a little bit of a buffer. they have the rights for a lot the mexican miracle in the of the shows. economy, that is what we want. some of them are coming to an end and there has been a lot of john: can you have a mexican news about at&t paying money to miracle with interest rates at get friends back, one of netflix's most popular shows. 8.25%? i know you have been good at not that will cost $100 million or interfering in the central bank. whatever they were getting. president lopez obrador: it is important to lower the rates to you give up that money to bring encourage growth. it over to hbo max and hope that this is an issue i am leaving friends fans will come over. for the central bank to decide. but it kind of gets to what is not juste trust we are so daunting about this

competition. going to be able to grow, but years, as dvdor also to develop. jason: for more on that sales were declining, they made interview, behind the scenes, we of money by licensing their shows and it was easy money. caught up with john micklethwait while he was in mexico. john: the last time we spoke to you did not have do much, you already made the shows. him in 2017, he complained that and now that is part of the difficult decision. trump was creating an atmosphere we give up that easy money and bring those shows back. of hatred towards mexicans. the big question is how many of ever since he has become those subscribers can you bring back? jason: staying in the media president, he has been remarkably calm no matter what trump says. he sometimes stands up to trump, world, lance armstrong has got himself a hit podcast. but even in our studio he talked byned from sports, dropped about trump becoming more moderate, which i am relatively surprised. sponsors, he is making fans forget a little bit about that scandal, rebuilding his brand. he sits there and takes it. he does fight back on some things. taylor: here is max chafkin and san francisco. >> he was banned from sports, totally disgraced, according to he probably will not agree to do

the safe third country status, the u.s. anti-doping agency. he was like the worst doper in anyones where you say, history and part of a team that did something unprecedented. looking for asylum has to get asylum from me first. the rhetoric is incredibly calm. the government sued him for $100 million. whether that survives the issue you would think this guy is never coming back from this. of the free-trade bill, someone and the story is about the way lance armstrong sort of plowed on the horizon, there is comebacksly built this a possibility the democrats might hold that up, and mexico , beginning with a podcast in 2016. is counting on that going it was this confessional through. jason: he notably did not attend podcast. the story talks about while he the g20 summit, and has not been as engaged with the broader was doing that it looks like cadre of world leaders. this total vanity project, but he was putting the pieces in what do you make of that, and what does that say about his place to rebuild his business empire. jason: and what to capture so stature in the world? well is what made him so john: he is clear he wants to focus on mexico and does not want to travel. successful, whether it was if he would meet whatever he does, he will do it and do it. trump, but he would rather trump and that is what he has done here. goes to meet him. help us understand what he is

he has told the mexican people doing. he will spend the year here he's got a podcast, but there is merchandise, and event series -- focusing on what he needs to do for the country. an event series, what is he up that is his style. you could see from the interview that he talks slowly and to? delivery lead. on the campaign trail he does >> the best way to think about it is as a you to start or media rallies a little like trump but influencer. with a different style. he has got a platform with a sizable audience. he goes to all corners of mexico during the tour de france, which and says he is fighting for them. just wrapped up, this podcast it is a big change from his was near the top of the itunes charts. predecessor, a much more he is using the community of and moretic person, fans that, as he pointed out, they never went away. figured every authority involved in the corruption and say lance armstrong is bad scandals circling his regime. jason: put him in the pantheon but there is a sizable chunk of of world leaders that you have sports fandom that will love him talked to over the last couple the matter what. of years, putin, erdogan, may, in?el --where does he fit and what he figured out is that if you have a new media platform, you can bring those people to you once a week or how does he compare to his peers around the world? john: he has one similarity with every day or what have you. then you can send them to

erdogan, he believes in events. armstrong has these, not races, unorthodox economics. he has a theory everything will because he is banned from be fine. there are bits where he lashes sanctioned races, but they are out at neoliberals. rides. he does point out that the gdp and that he has an athletic brand called we do. number is not what he helped. cycling selling kits, -- not what he hoped. it is a different style than gear, water bottles, the kind of erreerdogan, more subtle. stuff that apparel companies have sold. he has kind of got the band back together. i was listening to the podcast lifene you spent all your during the tour de france, it was exciting. waiting to become prime minister you have got lance armstrong the disgraced cyclist, george, his of ireland or president of america, and through that time , thent on the left-wing teammate who was a helper cyclist on the great u.s. postal come into power and do the opposite. you clamp down on spending team's of late 90's, and then another part of the because you think there is too much corruption, and you want to be clear mexico will not be alleged doping conspiracy. badly run. so it is all of these guys that that is a novel keep pulling it the cycling authority has said

to get out, they are back in them altogether, and doing what they have always done. jason: up next, our exclusive interview with nasdaq ceo -- the nasdaq ceo. she started as an intern in 1993. we talk about the changes she has seen over her career. taylor: this is "bloomberg businessweek."

jason: welcome back to "bloomberg businessweek." taylor: join us for bloomberg businessweek everyday on the 5 p.m. wall p.m. to street time or listen to our podcast. jason: and find us online on businessweek.com and through our mobile app. this week, we caught up with nasdaq ceo adena friedman. adena: we are providing the

technology to a company called the football index, a u.k. firm, meaning soccer. it allows people to bet on certain players. it is almost like fantasy football in a betting context. have created a marketplace that allows people to buy interest in a player and then watch the players performance and understand the returns. jason: more deals like that coming in different sports? adena: we are already in the horseracing business. , as an industry, that is very relevant to real-time price discovery and high transaction processing capacity. as well as the potential for more advanced surveillance technology. taylor: meaning what? adena: we have technology we provide to the industry with regulators, exchanges, and market participants that help them monitor the markets. you can use that same technology

in a betting context and we have a module we created for sports betting that would allow you to monitor the behaviors of different people on the platform. we would not have thought the nasdaq or any exchanges would be getting into this, it is a different environment. does that become a much more of the business? these new platforms versus the core trading? adena: today, our trading overall.s about 25% of streams,ring revenue the 75%, that comes from data and analytics, from corporate services, and market technology. , wek of us like switzerland can provide that technology to other exchanges or our competitors. we provide the technology to markets in very different spaces, not just the traditional

capital markets. carol: we talk so often about whether it is the private equity space, how much money is out there to fund startup companies that allows them to stay private? how is that impacting you guys? there is a lot of private money out there and companies have a lot of choice. they can choose to stay private longer they can choose to tap more investors than they ever have before. theave something called nasdaq private market that helps manage liquidity in a private context. we would much rather than cap markets as soon as they feel ready. in the private markets, it is a concentrated investor base that tends to focus on the top of the economic scale. where is if you bring them to the public markets, you are getting everyone access to be an investor. if you look at the stats, over 50% are invested in equities

directly or indirectly. more of those companies to come out and allow those hard-working people in america to invest in these companies. carol: you were at the nasdaq, started as an intern. there for 17, 18? back so when you were an intern and what has changed. adena: a lot. [laughter] adena: -- carol: still paper, right? adena: we have always been electronic. i looked at trading as technology, i was a product manager. it was trading products that we were delivering to our clients. of some verycharge small sidelined trading and data projects. i was able to make the most of them and show that if we could

apply new technologies, we could do great things. that gave me the opportunity to run the business. but at the time, we were just a equities market. now we are a technology company but also anmarkets options, futures, and treasuries market and a european market. so we have expanded dramatically. jason: if you were not doing this, what would you be doing? adena: i had a child ambition to be an astronaut. whether or not i would be is a different question, but i did get to meet an astronaut. i asked how you got into being an astronaut, and she gave me the answer that would be the heart. -- hard one. physics and a phd in aerospace." [laughter] but it is exciting to think about what he graham is doing these days. what the space is doing these

days. jason: i also sat down with the managing partner of an investment firm. he is a name known infant tech -- in fin-tech. >> it is a continuation of what we saw five years ago. idead a very specific which was we would just focus on fin tech. we occupied is that we are good at helping entrepreneurs figure out the financial system, which is quite daunting. idea, how mucht capital, the process, have you plug in? -- how do you plug in? we found that entrepreneurs value at -- that and other firms value that. we can help a company be more successful. fintech has gone

from a tiny portion of the venture community to a big portion. when i started i wrote a blog post in 2014 and there were a few hundred in tech companies -- fintech companies, a dozen with vc funding. 15,000 firmsbout have gotten funding around the world. jason: what was the catalyst to give it that acceleration? hans: a big part is that technology changed. and what was important, the big drivers, certainly the fact that you can say your phone is now a supercomputer. you don't need to have that inside the bank, that was a big change. similarly, the advent of the cloud, aws dramatically cut down the infrastructure requirements. it would not cost tens of millions of dollars, you could

do it by the drink. i think the financial crisis had bi out all of their idea labs. all of that got eliminated. major,the focus was on a global regulation cycle. analogous to the 1930's. this happens in waves, i think. meanwhile, you have big changes in technology. a key thing, something that is not as well understood, and i think this is an open question, i think the nature of trust has changed. ,f you think about this issue on theou give some app internet the login credentials to your bank account? jason: no. hans: tens of millions of people do just that.

it used to be it would take tremendous infrastructure to build that brand to be trusted. is of anxpectation now experience that you expect. and if you do not get that and you are answering the same password or it is too frustrating or is redundant, that reduces your trust. and yet that experience characterizes many of the legacy companies. but it is hard. meanwhile, they come up with these fantastic experiences. trust which would have taken a decade to do 20 years ago. jason: and you can listen to more of my interview with hans morris on this week's fed cup -- extra podcast. a $20 million portion that promises to be the most controversial car to go to auction in years. jason: is it even a porsche? and a subversion of the word american coming up on "bloomberg businessweek."

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taylor: welcome back to "bloomberg businessweek." jason: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. moving to the pursuits section, pebble beach is the world's most prestigious car show and this car is expected to sell for $20 million. it promises to be the most controversial sale of the year. jason: and not because of the price tag, some say it is not even a porsche. >> this is the type 64, a car from 1939 made by ferdinand porsche himself. heby's is -- sot

64, however,pe porsche was not start until 10 years after this car was made. the car was made mostly with vw parts or parts he built himself. it has been augmented with parts from fiat and a bunch of other obscure parts makers. so is it a porsche or isn't it? it depends on who you ask and that is part of the controversy. jason: the heritage of this car, to say the least, is complicated even beyond the timing. 1939, we are talking about the nazis in germany. porsche himself served time in jail for war crimes. he was more than associated with the nazis. but even the car, as you've mentioned, is cobbled together

with different parts and away we are not used to seeing. >> that is again part of the controversy. this car was owned for over 40 years by the same man who had it until he died. he raced the car and it got crashed, as happens, it has been painted a bunch of colors, the engine has been switched out multiple times, the brakes, the transmission, it has been a lot of things. some of the original parts are still with it, but they are not in the car. so it is really getting to the not of what is original -- nut of what is original? but it has never been restored, people are saying it is in pristine condition. what you see is what you get. others say it hardly has any of the original parts put in. again, it is really controversial. pursuits,aying with

pinning the word american to the title of your novel can be seen as pedestrian. jason: that is right, yet for a handful of critically acclaimed books documenting the african-american experience, the decision has been nothing short of radical. our reporter has a story on who gets to be american. >> one of the conversations is who is an american, what makes you authentic? as i have been mulling this, i have been reading a lot. you have an american summer, and american marriage, and american son, and all of them deal with the black experience, which is shocking, because that is not what comes to mind when people talk about who is real america. so i wanted to explore that this , saying i subversion will show you a very specific story about an african-american and that is authentic america.

jason: you quote the author of "an american marriage" who told her editor it sounded like a novel about some white people in connecticut, experiencing feelings. captured it so perfectly because that is not what it is about. >> not about -- not at all. it is a new york times best-selling book about a couple in atlanta. you are looking at what life is like when you have an incarcerated partner. so i love that quote that she said as well. even as african-americans, we have been so inundated. america is white america. so even pushing that and making it reality, that's amazing. oprah said "that's why picked up that book." taylor: bloomberg businessweek is available on newsstands now. jason: and online. carol: and you can find more

issues from this week's issue, including china's generations he, hooked on credit. jason: and a minneapolis plan to make housing affordable. what was your must read? taylor: i like the story on the dollar. we knew dollar policy was important, we were reminded again how important it was when we heard from jay powell. what about you? jason: i like how you and katie brought it to an understandable way of how this affects us as consumers and investors. for me, it was the cover story. i love felix, he takes us inside something we haven't thinking would happen. now it is actually happening -- we have been thinking what happened. now it is actually happening. taylor: check us out online. jason: and our podcast. taylor: more bloomberg television starts now. ♪ hey! i'm bill slowsky jr.,

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emily: coming up, wall street breathes a size of -- a sigh of relief as apple reports were not as bad as some thought. we breakdown latest earnings including iphone sales services, and wearables. plus, while way -- h