>> welcome to bloomberg businessweek, i'm carol massar. turnseek, businessweek 90. >> women on wall street. manyweek, me too and why financial firms still don't get it. >> and how climate change

started a popular uprising that led to millions marching in the streets of chile. >> we put together a holiday cover for you. >> what a year. >> we think this is one of the biggest stories of the year. it started with we work. earlygazine covered very on even during ipo chatter. as that developed and went on and on, there was another story that we started to think about. one of the biggest investors in work. did talkoftbank, we about it and what i love about this story is that you guys go into the layers. the visionary at softbank, especially the vision fund.

a 100 billion dollar vc fund that can do a lot of things because it has so much money. ways it can do that is to going to some thing like we work which is a business model that may not have been right for the long haul. >> they were very aggressive. >> go big or go home. some wins, other times it doesn't. and what this revealed was the fundre within the vision where there is a lot of tension. >> it's a big story. another big story is businessweek turns 90. kim of that magazine has been around for 90 years and we honor that to look at how businessweek has covered business through the

decades. because of the equities. for a couple years afterward they looked really good. it's just an amazing accomplishment. i think it was interesting talking to some of the people who put that together. all boy back to 1929 right before the crash on we first started, but collectively, the people who worked on this essay can trace their lineage back to the people they worked with. >> one of the things that they are these similar

moments and how businessweek in many ways tracked what was going on mother zeitgeist in economics, the board room. >> women. >> still an issue. >> there are so many tomes in the story and when you look at it shows covered it, the world and capitalism. issues we have talked about over the decades we are still talking about today. >> it is amazing how much stuff that comes up that actually feels contemporary. these stories have been with us for years. >> let's get back to the cover story. >> we work is actually a small part of the total investment

portfolio. we make the point in the article that advisors were much more confident about we work. the business fund only committed $4.4 billion to we work. compared to the rest of softbank . the commitment was relatively small. work, and theye have much smaller companies that have gone wrong. for example, brand list to consumer companies that they really only invested a few hundred million dollars in. because they are high-profile, people are paying a lot of

attention to those. when companies fail, they often fail pretty early on in the life of the fund. they also have a number of very that are notpanies at the points in their lives where we can point to them and say these are spectacular companies. a big retailer in south korea has a lot of promise and another one in asia is very promising. but the promise hasn't delivered yet and the disasters have. about what i said at the top is i feel like you dig into how investment , tell us are made little bit about it. charmingu>> it can be extremely

mood questions people with and in the leak we took -- in the lead, we tell the story of once on a call where he paraded an investor at softbank for not being optimistic enough. company based in china making good and steady progress. telling the investor, you have to figure out a way to make it grow even faster than it is now. people on the call were cringing and felt that one investor got the brunt of his iron. particularly

company ceos who go to pitch masa, if he likes your company you can walk out feeling like you're walking on air. sometimes he tells young startup founders that you are the next feeling and they leave so good, especially if it's a company that has been rejected many times before. >> what sets division fund apart from other venture capitalists, is when masa decides to be all in on it, they invest big time, and real do push the founders and the entrepreneurs to be more aggressive. >> they give them a kind of money where they can expand much quicker than they would have been able to do otherwise. sometimes a company looking for

$60 million gets several hundred million dollars from softbank. they give a lot of money but they want you to deliver. say you were planning on rolling out in one state. now they want you to do a massive rollout. do set up for a company to grow really fast but not every company can deliver. the financein industry still don't get it. ♪

>> welcome back to bloomberg businessweek. >> catch up on our daily show and listen and subscribe to our podcast.

online on find us bloomberg businessweek.com and our mobile app. >> they have been following this story very closely throughout the course of the year. sobering article on how the finance industry doesn't quite get it. >> sometimes in the newsroom we look at each other and we are like where is me too in the financial services industry. we know from years of chronicling hedge funds and banks and asset management, that wall street like lots of other industries has a profound and balances and women quietly say that they are harassed and distributed against. butthey fear retribution, we haven't seen that broad moment of change and with is about is that there is this

machine of silence that explains why. in ther me too entertainment world we thought what's next and it didn't quite happen. >> arbitration is one of those things that if you brought that to a half years ago i would draw a bank -- you draw a blank. i was on the phone with a wall street veteran who said if you want to understand why we are not seeing me too you have to look at the invisibility quote. that is the system parallel to the courts. doors it's alosed private justice system that used to be relatively obscure and wall street helped it expand so that it now covers two out of three workers at big u.s. companies, and wall street runs its own arbitration hearings.

>> i love this sentence in the story but the finance industry is a master in this system meaning it has prevented the industry from touching it. >> if a wall street executive were here with us -- >> men and women? with humanhave dealt resource executives who are sometimes women. it was say arbitration is quieter, but just as fair. women will say it stops us from banding together and from learning about each other and from instituting major change. the class-action lawsuits we have written about -- you can't have those with arbitration. the systemic about

and cultural aspects as well. you dig into this as well in this piece, and the culture, a lot of these firms are set up and away structurally and eat those wise it doesn't feel like a safe place to bring these sorts of complaints, even the would be advocates within the firms that aren't really on the side of the employees. they are on the side of keeping things quiet and keeping it under wraps. >> our story is focused on three crystallizing moments. fitzgerald which has to do with arbitration, and the third was lloyd's of london. there is amazing stuff out of london. what's really upsetting about it is we talked about it with it's notour editor

just that it paints a picture of guys behaving extremely badly, what is per family upsetting with the lloyd story and another one about the lloyd story written by gavin is it gives you a sense that these women went to hr and talked about being assaulted, and hr was like it will be bad for your career if you say anything. don't smile around him. that was a little response from human resources, don't smile around him. >> dressed differently, change your behavior to avoid these situations in the future. >> plus defense bringing down the cost of eight controversial weapon. this is blumberg business. ♪

>> welcome back to bloomberg businessweek. >> you can also listen on the york, wondered 6.1 in boston. >> am 960 in the denver area and in london and through the boom lit -- bloomberg business app. >> a controversial measure against climate change and some would say a necessary one. >> controversial but the contest is pretty full. sky vacuums that capture carbon from the air. economice change is an issue. how do you solve this problem? there are some obvious things, build more windmills and solar plants. that you canlieve capture carbon directly from the

air say that has to be part of .he solution as well if you have a chemical, and you run air through it. in the airdioxide binds with this chemical, forms a salt, and you put the salt through a plant and then you get a different salt and you can run that through a heater and then that splits off the carbon dioxide into a pure stream of carbon dioxide, and then you send that line which gets hydrated and put back into the process. makes so much sense. why aren't we doing it?

>> we are in an experimental basis. i've worked with three companies, one is the carbon engineering a company based in manhattan and the other one is climb workspace in switzerland. the one that is out front is which is finishing up the design work on a planet will pulle year. >> it's a huge amount compared to what has been done before. it's a pittance compared to the size of the problem. >> why not do this? >> it is more expensive than other solutions. the cost has come down a lot so it is no longer crazy expensive, it's just on the high end, and it's cheaper than other options such as battery-powered airplanes that we have talked

about in a magazine. furthermore, there will come a point where we run out our string on some of these solutions. like putting carbon into the air. dioxidee carbon produced by your grandparents that have been in the atmosphere all this time it has to be removed. to complementnt what's already being done in terms of combating climate change. >> it's a good point because i kinda went into this saying to me when into the same pollute all you want we will clean it up. some people say it's the wrong vestige. don't try to tell people that we have a free ticket here to pollution. doing everything. >> i like that you refer to this

as the high hanging fruit. that this getst adopted in a meaningful way? >> i think it is very likely. i do believe we have seen the curve on solar and wind that will come way down. the cost curve on this will come down as well. story asis another well. >> it is in the economic sector. >> most of the coverage of these protesters focused on dissatisfaction over the economic model and how it relates to these pensions and people feeling like it is producing inequality. looked at the backdrop of this, which is a 10 year make a drop.

that's where most of the population is. water fightsese that have been playing out and how these protests -- you cannot said that they've literally jumped from rural areas to the city, but there has definitely been this echo of unequal access to water equals unequal access to education, unequal access to opportunity. >> tells about the impact it has had. to people who have long -- people who have lost more than half of their livestock in the past couple of years. there is an area in this valley where avocado farming has spread .o exceed this global demand

the avocado farmers are being accused of exploiting their water rights and tapping rivers illegally. all the small farmers in the the rainfall -- >> the avocado farmers are fine? >> if you look at the photo, it is stark. the hills are all brown. avocado is a water intensive crop. that's one of those things. one of the issues this brings to mind is income inequality but also this notion of political and economic choices that favor business over consumers or over whatd businesses most would argue is a basic .uman right

>> people were initially surprised about the violence of these demonstrations in latin america. it's a model for how it enshrined the neoliberal model. the constitution dates to the time of the dictatorship. it's the water law that give people water rights in perpetuity. companies have them forever. there was once upon a time that the thought was free markets inl help people be careful the management and use of finite resources but that has not been the case. and export oriented agriculture have the government has prioritized those kinds of uses for water, and we have hile that depend on water and when they open

their faucet, nothing comes out. >> i do wonder what is the political backdrop here? has beenthis unrest tied to the political system. is there any sense that may change? >> the outcome may be quite and that legislators have agreed on two possible means of rewriting the constitution. the fairly large consensus is that the constitution needs to be rewritten because it enshrines this model that has caused distortion. kim of a haven't started talking about how water is going to play into that, but we could see changes in that as well.

>> coming up, bloomberg businessweek traces its origin to 1929. what a year to be born. >> not an easy year to make your debut but there was so much .oing on

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welcome back to bloomberg businessweek. i'm jason kelly. >> i'm carol massar. question of real estate arms race of sort between two suburbs just north of near city. the target is millennials. turning 90. to celebrate how it has covered

business through the decade, here we go. >> it is a sprawling tale. here is a guy who knows a lot about it. it was a different magazine. we were in a different place with a different honor. there were a lot of things that were surprisingly the same. we wanted to do more than report the news, we wanted to add inside and analysis. -- insight and analysis. white is important, why it matters and what might become of it in the future. added throughlue on 90 years. carol: there is the section that covers 90 years of business week. it identifies three people who expand -- spend the whole lifetime of this week. what is fascinating is this idea of editors and individuals passing down history.

jim: that is the nice thing about our magazine. there is a lot of continuity. i work with people i have known for the truly -- literally 30 years. contacts that of we already know. we are not inventing -- rushing around. we are not saying what is it? the opening of disney world. i covered that. i have been a lot of things here. a lot of us can easily shift between stories. we can hopefully all at a lot add a lot when we work on the individual stories. jason: you were dealing with all of the outline bureaus. magazinely feeds the in a lot of ways and gives it a

a buncht is far beyond of people in new york. tell us about that. jim: we have always had a bureau system or a system of reporters around the world who are close to their companies but also picking up information that is difficult to get if you're seven-time zones away. before china was completely open , it allowed us to be early on stories like that and to understand why a lot of things happen very fast or not nearly as fast as a lot of people in new york seem to think. we benefited from having those bureaus back in the day. we are benefiting from that now. bloomberg has a huge editorial staff. we can draw on them. carol: tell us about bringing women into the 19 and the

consumer. how it evolved. >> it changed, market segmentation became a big deal. technology was suddenly inventing new internet -- industries. what happened is we had to figure out ways to cover that. also, management had to figure out ways to manage that. the idea of a professional manager came. we were early uncovering women. whoially we covered women were a handful of maneuvers. hazel bishop created the first --n- this first type of lipstick. we did not really get serious about what happens within corporations with women and the challenges for them until 1975. we get a large project, a bunch

that are still great. i was surprised i still read them. i was at a lot of the things people say today. admin says one thing and a woman says the same thing and it is considered to be shrill. those quotes are still sent by someone in silicon valley this year. we are still talking about that. we started out with not much coverage of minority businesses. a lot of what we had was pretty bad. i had a chance to go back and .ead some of the stuff right in the streets. suddenly everyone decided we will think about that. we are talking about black empowerment in business. it was interesting to see how we took that.

we got more sophisticated. the 70's came along and i came along. we were doing a lot more coverage and wondering about not just the positives of that but thatabout economic changes are starting out. we have been really good in saying this is how society goes. business people need to know more than just the accounting. carol: we turn to paula dwyer. she joined business we back in 1985. >> i was going through a huge transition. there was a book that was largely covering industrial america. it was largely edited and written by men. it was a staple version of various newsletters. over andpherd took it he really changed it. bureaued the washington where i was located.

he did a lot of things to liven it up. carol: when you think about the different sections. we were talking throughout the week about the 90th anniversary seems to beything separate politics, businesses here, technology and now it is all in for -- all interconnected. paula: they did not have washington bureau. they had evidence or from the same place. a trade mentality instead of a narrative mentality or profile mentality or even talking about how politics enters into a lot of the business stories. the washington bureau really changed the look and feel of business week. jason: it does feel like the late 80's and into the early 90's was this seminal moment

when washington seemed to wake up and say hold on a second. there is business going on that we might need to keep an eye on. . think about the lbo era and a crevice showed up on the cover. kravitz showed up on the cover. paula: it was people like mike milken and having crevice -- henry kravitz. there were a lot of ceos who had an imperialistic viewpoint about themselves and they were using shareholder money for fleets of airplanes. some of them had many air forces. there were some takeover battles. they were emblematic of the era. you have these people like mike cover innded on the

1988 as can henry -- king henry. he upset all of that and shook up the ceo world. it went a little too far. mike milken ended up in jail. henry kravitz is going strong. some of these people involved were shady characters. carol: many were involved with sewer consumer advocacy groups. paula: i think a lot of big developed. you have consumer advocacy that came off of ralph nader's 1960's book. he birthed a whole generation of people who would run advocacy organizations for agencies and washington. it was the era where corporate governance came into being.

where shareholders got a voice and could vote on resolutions and could turn out ceos or approval or not approve mergers. where also the era consumerism broke up. you finally had an investor democratization going -- thing going on. jason: the latest from peter thiel's institute. carol: plus, new york's commuter town. jason: this is bloomberg businessweek. ♪

jason: welcome back to bloomberg businessweek, and jason kelly. carol: i am carol massar.

join us on the radio starting at 2:00 p.m. eastern time. you can listen to our podcast at apple podcast and bloomberg.com. jason: you can find us online at bloomberg.com an error mobile app. -- our mobile app. this is a real thing. carol: it is definitely a real thing. >> have you heard of see teading? -- sea-s many -- many -- .ini floating fortresses >> tax haven. >> that is not the biggest part

of what patrick is after. >> tell us about him. steadingounded the sea institute with money from peter thiel. the conservative billionaire. carol: the silicon valley guy who is also friendly with president trump. hethis was a while before forged that relationship. when they tried to get se asteading of the ground, they thought they could set up these little island fortresses up the coast of wherever. they could let libertarian tax havens bloom. that did not go well. it attracted charges of colonialism and tax avoidance from global authorities. also, people who were not psyched to have these

seasteadings pop up by their home. the private companies organize it with the seasteading institute of the coast of tahiti. they rejected it by saying this would be pretty disruptive. carol: let's make the case for it. what is good about doing this? >> this is a prelude to his new venture. not checked it. it is on his unofficial do not talk with. organization that started a venture fund is very much on the donor list.

carol: who wants this? is there a demand for this? some of the people that are working with friedman say there organizations.m whether it is economic element groups or interested billionaires who want to set up mini city-states. directlynot working with any of the vocal governments. -- local government. it is british, adjudicated by retired judges who they would

hire to run things. ben they would essentially --==0000 -- they would a sensibly -- essentially be immune to look a lot. they wouldk about -- essentially be immune to local law. >> they said let's create these, there will be some law but i guess it will be economically really successful. >> the rule of law is the most important thing. also, the british common law system is adjudicated by retired british judges. that is the ideal model over any other. why that as opposed to any other code of laws or ethics?

they do not have the best answer for those involved. carol: he said we can sell property. >> -- poverty. >> that is one of the loftier sales pitches. carol: you mentioned peter thiel and other people in the tech industry. of the coin advocates. they are very into the idea of building their own system separate from government. jason: coming up, new york city suburbs. they have their own eyes on your professionals right down to manhattan and brooklyn. >> plus, luxury watches. this is bloomberg businessweek. ♪

carol: welcome back to bloomberg

businessweek. i am carol massar. jason: i'm jason kelly. you can listen to us on the radio. real estate arms race of sorts is heating up between two suburbs in new york city. we are talking about new rochelle and yuppies. carol: they are trying tocarol: lure affluent seven nights were tired of being poor in the big apple. >> they are not very cool but they are in an arms race competing for new millennials and younger professionals who are looking around and finding they can't afford to live in places like manhattan and brooklyn and jersey city and have broken anymore. what they're doing is spearheading a number of new developments.

unitsng thousands of new in the de-risk i was buildings and helping people start to move and start new units building a family in new rochelle. real estate and the amenities, is there hatchet throwing? are they pulling out all stops? they're trying to do things that appeal to younger generation. >> both cities are opening or would like to open asked throwing bars. axe is something -- throwing bars. they think that would be attractive to people moving from manhattan. jason: i live in the burbs north of where we are talking about. as everyone can be as hip living close to the city. the reality is it has always been very binary.

city or goe in the to the burbs. they are trying to find that middle ground and they are expanding the footprint in many ways of new york city. >> yes and the join point for both of them. they are 25 or 30 minutes from midtown manhattan and you can be at work just as fast or maybe faster than living in brooklyn. >> i think that is a very important distinction. i talk about this with someone who works with us who lives in brooklyn. it is little more civilized on the commuter train. brooklyn and queens have really pushed further and further out in many ways. >> that is what they are betting on. hope they will be a mass migration of people moving in. their tax bases are hollowed out in the 70's and 80's. they need to reinvigorate and

bring new people and if they want to stay relevant. a fair amount of time in new rochelle on the water. yougov and the cities. they are huge. you can to the streets that are troubled. you can see the results from the decades back in the 70's when things were doing well. they are trying to reinvent themselves. i don't think it will be easy. >> it will not. there are some risks. one is they will have so many new units that there will be a huge amount of inventory that they may not be able to fill. walkingr thing is around the streets and talking to people who live in yonkers and new rochelle, they are afraid that their landlords will look around and say maybe i can do some minor renovations in the building that i currently on and i can hike up rent. are fearfulidents

that their cost of living will have to go up over the next couple of months or years and they will be driven out of those areas. to luxuryxury housing housing we go -- washing we go. jason: here is the interview with the ceo of the 150-year-old luxury watchmaker. >> the young generation is interested in mechanical watchmaking. were not wearing of march -- a watch. watches are having a moment. people are rediscovering the artisan nature. back awayle pivoting from the smart watch? >> i think we live in such a fast world between internet and social media. the mechanical watch is one of the few objects that will last

forever. if you can put some oil and it after hundreds of years, it will still work. a smart watch that you buy or a smart watch, the minute you buy it, it is already obsolete. i think people need to attach themselves to something that will last forever. >> we keep having conversations about the fashion pushback and this disposable society that we are into. our dad used to fix something that broke. what are you seeing about the younger consumer? what does the younger consumer want? >> they buy history and authenticity. that is what they want. ,e are bombarded by marketing communication, publicity everywhere. they want to buy something with substance. they ask us questions about how

it is made, how long it takes, manyis behind the brand them hw hours a watchmaker is working on a watch. that is important. we need to show them innovation. jason: bloomberg businessweek is available on newsstands now. carol: your must-read? jason: the anniversary. i loved talking to the guys there about the 90th anniversary. the magazine had a huge amount of influence on issues of the day. they are still the issues of the day. carol: whether it is about racial issues, women's issues, we were talking about them decades ago and we are still talking about them today. this is the word of record when it comes to business. jason: it continues to be. that is why we love it.

check out our podcast. it is available on apple, soundcloud and bloomberg.com. carol: more bloomberg television starts now. ♪ what are you doing back there, junior?

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>> welcome to daybreak australia. i am paul allen in sydney. >> i am shery ahn. sophie: i am sophie kamaruddin. we are counting down. twice here are the top stories we are covering. volumes are low but sentiment seems high. the yield teicher continues this week --