this is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek."ason kelly. carol: i'm carol massar. you can listen to us on the radio in new york, one of 6.1 in boston, 91 fm and washington, d.c. jason: a.m. 960 in the bay area, on london in dab digital radio, and on the bloomberg radio app. carol: we caught up with delta, and it's been outperforming its peers and doing deals. we'll hear from him in a moment. jason: let's hear from someone who will talk to us about one region were delta was doing great, and now may need to make moves. kailey: and delta is making moves, $2.25 billion investment, the biggest carrier in latin america. take a look at how delta has performed. it is a higher growth area and at one point earlier, it's all double-digit sales growth. but the pace has slowed to one put 5% year on year in 2018. now the deal may make delta the largest carrier in south america, replacing them to capitalize on higher growth and see sales growth start to improve. carol: and expand their growth. thank you. delta is among the world's biggest airli

this is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek."'m jason kelly. carol: and i'm carol massar. join us for "bloomberg businessweek" every day on the radio starting at 2:00 p.m. wall street time. you can also catch up on our daily show by listening to our podcast on apple podcast, soundcloud, and bloomberg.com. jason: and find us online at businessweek.com and through our mobile app. carol: turning now to teen vaping. this week, school districts across the u.s. sued juul in federal courts. jason: and walgreens and kroger also announced they will stop selling e-cigarettes, making them the latest retailers to take action in the outbreak of vaping-related injuries. carol: and jason, those injuries have not been directly linked to juul, but the company is caught in the middle. here is this week's businessweek explainer on how juul took on big tobacco. juul hit the market with its fruit-flavored nicotine in 2015. not long afterward, it was being called the iphone of e-cigarettes, the keurig of vaping. the company had a valuation of $38 bill

this is "bloomberg businessweek." ♪ kailey: welcome back to "bloomberg businessweek."ol: join us every day on the radio starting at 2 p.m. wall street time. you can also catch up on our daily show by listening to our podcast on apple podcast, soundcloud, and bloomberg.com. kailey: and find is online and on our mobile app. carol: for better or worse , markets have become entwined with american politics ever since the 2016 residential campaign. -- presidential campaign. kailey: that shows no signs of changing in 2020. >> it is an awkward position investors have been thrust into. now they have to have a sideline as a political scientist and gauge where the politics world are headed. it is turning into a market of its own. there are these prediction sites where you can track where the betting community believes the horse race lies in politics. carol: tell us about a strategist you visited. you start off your story with that. >> it's funny, a woman at rbc wrote how she looks at these political polling charts almost like stock charts. she is looking at elizabeth warren as a

this is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek."ly. carol: and i'm carol massar. join us for "bloomberg businessweek" every day on the radio starting at 2:00 p.m. wall street time. you can catch up on our daily show by listening to our podcast on apple podcast, soundcloud, and at bloomberg.com. jason: and you can also find us online at businessweek.com, as well as through our mobile app. carol: we turn to a businessweek debrief. andrea illy is leading the s grandfather 86 years ago in italy. jason: what a history. well, he wants to double illycaffe's revenue in 10 years, but do it sustainably. he sat down with "bloomberg" editor joel weber in london. >> all business more or less starts with family. it depends on if you stay family or you go public. you typically go public one day, either because the family wants to withdraw or because you need to raise liquidity, or something went wrong in the company has been sold. so, i think that the family is good at managing the business. we can preserve control of the company forever, possibly

jason: this is bloomberg businessweek. ♪ carol: welcome back to bloomberg businessweek. carol massar. jason: i'm jason kelly. join us every day on the radio. carol: you can also find us online and on our mobile app. in our politics section, president trump's attorney rudy giuliani has not been charged with any wrongdoing. his actions are at the heart of the impeachment inquiry. jason: stephanie baker has been following this story closely. she joined us from london. stephanie: this how subpoena for communications and documents from rudy giuliani will be central to the impeachment inquiry. they have asked for documents and communications related to a long list of the ukrainian heiticians and businessmen has done consulting contracts with, as well as politicians he has met with up to the crucial call between trump and the ukrainian president, volodymyr zelensky, which is at the heart of the impeachment inquiry. he has resisted, or he seems to discloseing efforts to those communications. he hasn't said officially whether or not he will comply with the subpoena, but he has in

this is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek."join us every day on the radio starting at 2 p.m. wall street time. you can also catch up on our daily show by listening to our podcast. jason: and find us online at businessweek.com and through our mobile app. carol: we continue with our takeover of the finance section. jason: speaking of takeover, those in the industry amount to a small group of the economic elite. carol: and they are mostly men. we asked the question, where are the women? >> i looked at the top 10 ferns -- firms by assets and tried to look at the number of women making these investments. what i found is there are very few women and most only have one or two on these teams made up of dozens of investment professionals. carol: we need to talk about the financial community overall. are they kind of the same or is it worse? >> according to a study earlier this year, it was mostly asset managers. i don't think they included banks them but they compared -- but they compared private equity to hedge funds and looks like the

jason: this is bloomberg businessweek. ♪ jason: welcome back to "bloomberg businessweek."m jason kelly. carol: join us every day on the radio at 2:00 wall street time. you can catch up on our daily show by checking out our podcast and you can find us on bloomberg.com. jason: you can find us online at businessweek.com and the mobile app. carol: to the economics section, the question of recession. when will it arrive and how bad will it be? jason: there are signs this long expansion may be starting to lose steam. economists are not seeing the fundamental indicators that predict the downturn. carol: instead, it seems to be all about sentiment. we spoke to our editor about what makes this different. >> usually, from history, we know they are triggered by a spike in inflation, followed spike in interest rates as the fed intervenes, and that causes an unwinding of either economic successes or financial excesses. this time inflation is low, the fed is cutting, and we don't see any bubbles. stock prices don't seem to be out of sync considering rates are still low. so what is going

this is "bloomberg businessweek." jason: welcome back to "bloomberg businessweek."in us every day on the radio starting at 2 p.m. wall street time. you can also catch up on our daily show by listening to our podcast. jason: and find us online at businessweek.com or through our mobile app. carol: the ongoing trade war has put a spotlight on competition. recently, beijing skirmished with the nba and cause a cold war in sports. jason: one chinese brand that dropped its sponsorship deal was company.ts the ceo will be the first global consumer mega company. here is a look at the nike of time -- of china. carol: the biggest brand you never heard of them and they have a 14% market share of the billion-dollar sports apparel market. it is not that far behind nike and adidas. its goal is to be number one by 2025. it is raising its profile outside of china. they gave clay thompson -- klay millions and his latest bread comes out this month. they are combining growth in china with acquisitions overseas. they spent millions to buy a finish sports brand. they also have a licensing

isomberg businessweek focusing on the world of a private market. auity has portfolio amassed at $4 trillion, emerging as a force of how business plays out around the world. the capital partners announced it raised $1 million for the private orchids -- private markets. thank you for being here. >> thank you for having me. who would be your competitors when you think about the kinds of investments you make? >> private equity, we occupy what is the midmarket. it means businesses that have fouresses that have up to million. the biggerbelow pools that people go after. amanda: with the hunt for yield, how are you with assets? stewart: it is competitive. the focus on the mid market has been a sustainable market for us. they have tended to congregate in small number in very large rules. we want to be below the radar. shery: where are you finding those opportunities in terms of regions? stuart: it depends on the asset class. for private equity, we invest globally. ar infrastructure, it is relative value approach across different markets. it is the common th

also with me, "bloomberg businessweek" columnist max chafkin.ust wonder as you sit here and reflect, what has your experience been like? >> it has been intense. i'm not going to lie. writing a book actually helped me really reflect on everything that happened. i talk about my journey from getting recruited at a military contractor to working on modeling and data work that helps identify people who are more prone to paranoid ideation and extremism with the idea of trying to mitigate that problem to having that work completely inverted after an outright billionaire named steve bannon acquired our company to in effect the same thing in america, targeting people who are more prone to radicalization, but in this case, for the alt-right. max: coming forward the way you did, blowing the whistle on facebook, which as we have set on this program many times, and incredibly powerful media company, maybe the most powerful media company in history, what was that like? did you get any pushback, any threats? as you moved to publish the book and tell the story

joining us is silvia killingsworth of "bloomberg businessweek."la story is a fascinating take for the magazine. basically, people need to die in learn.r the computer to silvia: this is a classic ethics trolley problem. is it more ethical to say five people and kill one person? it is that kind of math that once you translate to the real world becomes really distasteful. we talk about these electric vehicles, people who are really into this autopilot feature, which is essentially a souped-up version of cruise control. it allows the car to keep driving on its own. it is software. right now, you can think of it as a sort of beta stage that gets updated every weeks. it is getting better the more it practices. that is how machine learning works. these cars need to be on the roads to learn real-world obstacles, but there have been a handful of deaths and there probably will continue to be because that is the nature of driving, but then again, computers are probably more reliable than humans. they don't get tired, they don't get drunk. alix: longer-term i

he joined us wednesday from new york along with bloomberg businessweek columnist max chafkin.er: writing a book actually helped me reflect on everything that happened. i talk about my journey from getting recruited at a military contractor to working on modeling and data work that helps identify people more prone to paranoid ideation and extremism with the idea of trying to mitigate that problem to having that work completely inverted, after an alt-right billionaire in stephen bannon acquired our company. trying to do the same thing in america, targeting people who are more prone toward radicalization, in this case, for the alt-right. max: coming forward the way you did, blowing the whistle on facebook, maybe the most powerful media company in like? , what was that did you get pushback from facebook, any threats? as you moved to tell the story in full, have you heard from the them -- from them at all? christopher: where do i begin? before the story even emerged i was working with law enforcement and regulatory agencies months and months and months before the story broke. when

wanting to avoid worker and consumer protections is so notorious that a headline in a bloomberg businessweek profile and scalia read suing the government called school . and given his reputation that was a missed opportunity for eugene schoolie is law firm to use that as an add on the back of d.c. city buses what also isn't a surprise is why president trump chose eugene scalia or anyone in his cabinet because ever since trump enter the white house he's been the rapper who hooks up all his friends after he makes a big. except that he'd probably use a hard r. for the n. word in his songs but trump will continue to fill white house vacancies with people like scalia whose only purpose is to destroy the office they were sworn to protect like former e.p.a. head scott pruitt who sued the e.p.a. over a dozen times as oklahoma's attorney general and took hundreds of thousands of dollars from the oil and gas industry and education secretary pepsi the vos a woman who thinks you can ride a syllabus yet who's privatizing education at the expense of funding public schools and then there's rex tillerson he

carol: welcome to "bloomberg businessweek." i'm carol massar. jason: and i'm jason kelly.here inside bloomberg headquarters in new york. carol: this week, turkey launches a major offensive in syria, and president trump says the united states will not stand in the way. the surprise announcement heard around the world, and the not so surprising winner in all of this. jason: plus, vaping closer to home. how juul took on big tobacco and is caught in the middle of a

we turn to our weekly "bloomberg businessweek."ance, now getting into every corner of corporate america and the world. next, warnings from unicorn vigilantes. the herd is thinning after the latest ipo setbacks. and where all of the women in pe? the glass ceiling in the pe world is thick. joining me is silvia killingsworth and sonali basak. this feature was really great. it was about private equities taking over the planet. i want to hear what you guys discovered. world: it is not just the of finance, but also things like real estate, consumer stuff. basically, one of the things about private equity, it's very hard to see into it. we did a lot of breaking down how they've been working in d.c. , how they've been financing. they are taking on a lot of debt. they are taking off some of the manchester -- some of the mystery around private equity. alix: and they are like asset managers now. they are not really private equity. sonali: exactly. private equity now is kind of a misnomer. it is not just private equity. it is venture capital.

bloomberg businessweek spoke to inventor palmer lucky about what his business is doing to rekindle then between the u.s. military and silicon valley. >> this is the interceptor. it is the creation of palmer lucky, who might be the world's most unlikely weapons mogul. he is the founder of a multibillion-dollar virtual-reality company. he is also a polarizing figure in silicon valley, known for his support of the trump administration, including immigration policies that opponents have branded as cruel and racist. >> i want to build a big company or the billions of dollars. i want to become one of the major defense contractors building technology for the united states government. i am proud to say that. i hope we get there. >> his previous company, the virtual headset maker oculus rift, lucky decided to build a device with low cost components and high tech software. just a monther, before the 2016 residential election, the daily beast reported he had given $10,000 to a group of trump supporters to fund boards featuring insulting messages about hillary clinton. >> lock her up! >> in 2017,

joining us is joe weber, "bloomberg businessweek" editor. the first story is fascinating. company is captain america. joe: when you have captain america in china right now, that is not going to go over so well. it speaks to a bigger interesting global dynamic. the two countries have been intertwined for so long. you can always use americans to represent those brands in china come about now we are seeing a greater decoupling with the whole rethinking of those relationships. it speaks to where we can go from here. alix: and you already saw this happening it certain companies. they are trying to make lower end machinery so they don't have to rely on imports. but this is a branding thing. so how much money can these companies lose for that? joe: it remains to be determined because we are just at the beginning of what we think this could play out as. ,ut you see homegrown brands like one that is huge and sports apparel, already number three in china. they have grown so tremendously. do they even need the nikes and adidas of the world? is not just hollywood or auto or anything e

let's welcome in max chafkin who covers technology for bloomberg businessweek.is was announced, there were like 27 companies on board, david marcus told us it would rise to 100. we are moving in the wrong direction. max: i think they said they want to launch in 2020, it feels like .here is a lot to figure out facebook basically minting its own currency. pressureregulatory brought to bear on these partners, the partners that have decided that it is not worth the trouble. joe: does this represent a seachange in silicon valley and how it operates> for so long, it was like, just launch the thing, then you get back lash. in this case, the backlash came very fast. the regulatory, political anger came very fast. surprisingk it is for a lot of people who follow facebook closely that they did this at all. is thatfor of facebook it is operating like a private empire. maybe they are more powerful than even a country, they have too much power, and you wouldn't -- a currency that would one day replace the u.s. dollar. that was strange. you kind of look at it is facebook thro

. ♪ carol: welcome to "bloomberg businessweek." i'm carol massar. jason: i'm jason kelly and we are

carol: welcome to "bloomberg businessweek." >> we are inside bloomberg headquarters in new york.is week, a special look at the year ahead. this is the issue with everything you need to know for 2020. from politics and the global economy to technology and trends in the luxury space. >> coming up, we hear that the

bloomberg businessweek anchor jason kelly is in the studio with aries manager cofounder and ceo michaelti. jason: michael arougheti is with me, as guy said he has 140 2 billion give or take in assets. what is the feel in the world right now? guys in europe, recessionary fears right that -- right now, brexit is a fear on the rise in -- not on the horizon, right in front of us. got back from an european off-site last week. surprisingly optimistic over there. i think for a while, everybody looked at the u.s. as the hot head of uncertainty. you had a safe haven where people were bringing capital. but when you look across europe and the markets that we play in, we are still finding ample things to invest in in the real estate market, the private markets are healthy. i think some of it is the central bank is very accommodative. people feel there is an ecb put which is allowing people to be more active with the economic backdrop. jason: brexit's a pacific -- brexit, specifically, and you get into investment committee, how do you model that out? 12 years ago when we set the business up, we saw

. ♪ carol: welcome to "bloomberg businessweek." i am carol massar. >> i am kailey leinz.berg headquarters in new york. carol: this week, a special look at the year ahead. this is the issue with everything you need to know for 2020. from politics, power, to the global economy to technology and trends in the luxury space. kaylee coming up, we hear that :re

she wrote about this in the latest issue of "bloomberg businessweek."u for joining me, and for the classic bloomberg size and scope, tell me of the importance of brazil and sÃo paulo to uber? reporter: actually, sÃo paulo is brazil's largest market, and they also told me that two other large cities, mexico city and rio de janeiro, are among their top five, so it is a very significant market for uber. taylor: fabiola, this is not uber's first attempt to go into the favelas. tell me about the difference with years ago. in 2014, they were very aggressive, expanding all over the city, and a couple of years later, a wave of violence against their drivers led to at uber does uber does not confirm those numbers. they are pretty scary, right? and this time around, they decided to partner with local entities that foster development inside the poor neighborhoods, and assess the whole region, and design pickup points to make sure drivers and riders are safer around the favelas and not necessarily getting into sidestreets, areas that are poorly lighted. taylor: is

's carolg businessweek pos massar sat down with lyne for a wide-ranging conversation on the upcomingng wars, big tech antitrust, and investing in female founding startups. take a listen. susan: i do believe there is too much power in too few platforms at this moment. that is always dangerous. whether they get regulated, whether they get broken up, that is for other people to decide, but i don't think you could leave things the way they are where a single platform like facebook has the power that it does. carol: bbg ventures, are you finding all the opportunities you want? we talked before we got started about there is so much capital out there with private equity. are you finding enough opportunities? susan: my gosh. we absolutely are. we have seen 5000 companies with a female founder since we launched bbg ventures five years ago. carol: this is what you do. there has to be at least one female founder. susan: exactly. we do that not to be a do-good organization, but because we think there is a real competitive advantage to having a founder who intuitively understands the end-user. wo

carol: welcome to "bloomberg businessweek." i'm carol massar. jason: and i'm jason kelly.nside bloomberg headquarters in new york. carol: this week, turkey launches a major offensive in syria, and president trump says the united states will not stand in the way. the surprise announcement heard around the world, and the not so surprising winner in all of this.

chappatta giving us his wisdom and may i also point to his bloomberg businessweek story on millennialschief operating officer of credit suisse has resigned in the wake of the spying scandal. he resumed -- he assumed responsibility for the scandal. maria tadeo is outside the banks headquarters in zurich good this is 8 -- outside the banks headquarters in zurich. obviously this is a tragic story. there was a suicide. the contractor that order the spying. it is very sad and very strange. there are some loose ends here. maria: there is many and credit suisse is almost scrambling to contain the scandal. the chairman said the surveillance operation was wrong and disproportionate. this is something the bank should simply not do going forward. he presented this as a rogue operation led by the global head of security. both men have now resigned. the chairman set their investigation found no indication the ceo new or approved any of this. the obvious question is how can you be a ceeo and not aware this is have -- be a ceo and not aware this is happening, how can you be oblivious? credit suisse a

. ♪ carol: welcome to "bloomberg businessweek." i am carol massar. jason: i'm jason kelly.bloomberg's headquarters in new york. carol: we look at president trump and what it may mean for the 2020 election. jason: how the company's culture caused it to stumble. carol: keeps climbing. jason: first up, a private

. ♪ carol: welcome to "bloomberg businessweek." carol massar. jason: i'm jason kelly.bloomberg's headquarters in new york. carol: we look at president trump and what it may mean for the 2020 election. jason: how the company's culture caused it to stumble. carol: keeps climbing. jason: first up, a private

a photographer and videographer on twitter at bloomberg businessweek just took in images of a fairlyhere. do these protests begin tonight or do they await saturday? tom, they are underway and actually began while carrie lam was still speaking here this afternoon. people are starting to gather in the city center close to our offices. they've occupied a couple of streets near us already. these protests are expected to go on into the night. i expect they will get bigger. people have called for a show of defiance over the weekend, number of protest plan including one that is masked. we thought for a couple of days this might be announced today. if it was, it would serve to fuel protester anger despite the fact the government thinks it will quell protest. we will be watching to see what kind of turnout we get from if this is something that will fuel people's anger enough to keep -- get them out or keep them home. , morere these younger organized protesters or are the protesters the people of hong kong? >> this has been student-led so far. we have seen these figure protests where one milli