jason: i am jason kelly. in us for "bloomberg business week on the radio every day from 2:00 to 5:00 p.m. carol: you can also find us online at bloombergbusinessweek.com. jason: a few things going on may and play a big role in the in play a big role in the upcoming midterm elections. about a month away. carol: we spotlight the creation of a quiet army of 16,000 liberal resistance volunteers. you heard that right -- 16,000. they have been secretly recruited into a democratic dirt an you digging operation run by a smart former hatchet man for president obama. jason: we caught up with the we hope you author of devil for you will andill will and you and the details. reporter: he is a dork underbelly. basically what these people do is dig for dirt on political opponents and then surreptitiously try to get that into the press as a way of shaping a negative story line that will impugn a political candidate. and weaken voters support. we have this enormous and secretive dark money group being funded by mysterious demo

i am jason kelly. carol: i'm carol massar. listen to us on the radio on siriux xm, channel 119. also on a.m. 1130 in new york, 106.1 in boston, 99.1 f.m. in washington, d.c. jason: and a.m. 960 in the bay area, as well as in london on dab digital, and the bloomberg business app. in the features section, miuccia prada and her husband patrizio bertelli oversaw prada's rise as a global luxury powerhouse. now, struggling to turn the company around after three years of declining profits. carol: i spoke to stephanie baker in london, and she told us how the brand is making a comeback on instagram. stephanie: they had a perfect storm. in 2015, the slowdown in china hit, partly driven by a crackdown on corruption and lavish gift giving, which impacted a lot of luxury companies. that was the same time i think the luxury fashion industry really changed. instagram took over as the main trendsetter in terms of determining what is fashionable, taking over a role held by "vogue" and "elle" for many years. it was at this point that prada thou

i'm jason kelly. are joining you from bloomberg headquarters in new york. taylor: how technology is changing the most basic component of business and finance. that is money itself. jason: cannabis used to be illegal. now it is investable. taylor: first, we have a bloomberg exclusive. steve bannon slams nikki haley's decision to announce her resignation earlier this week. jason: and specifically, her timing ahead of the midterm elections. steve bannon sat down in london. i was in the room what john micklethwait. here is what he had to say. steve: i think the timing of it is very suspect. i have been out with these congressional house races. if president trump -- i've called this for many months for this to be his first reelect. if he loses the house of representatives, he will be impeached. they will bring impeachment hearings immediately. it is imperative that we keep the house. john: virtually every pollster would tell you that looks highly unlikely. steve: we went from 60 seats down to 30. now i thi

. >> and i'm jason kelly. we have a business exclusive on an army of 16,000. -- in a subversive side five sci-fi movie, it is like the united states. it turns out women are not the play it safe investors that they have always been presumed to be. >> bloomberg businessweek has uncovered the most significant supply chain attack. >> the stunning discoveries are ace -- the subject of an investigation involving 30 companies including government contractors. >> and china is behind it. let us get to jordan robertson from washington. reporter: a special unit from -- ahina liberation army

jason: i'm jason kelly. we're joining you from headquarters in new york. carol: this week, the future of retail. e-commerce giants amazon and walmart are after global expansion. next stop on the battleground, india. jason: plus, sears files for bankruptcy. why eddie lampert couldn't keep the retail giant afloat. carol: first, to the politics section. it is a story that has dominated the conversation this weekend that is disappearance and the suspected killing of a journalist in istanbul, which has set off a geopolitical reaction as governments are looking for answers from riyadh. jason: it is a fast-moving story. reporters on the ground throughout the region. the story is titled "damage control in the kingdom." riad hamade was here in new york this week and helped us put into perspective. riad: right now, i think it is in limbo in the sense of the plan, vision 2030, that the prince has espoused. he wanted to transform the country economically and

i'm jason kelly. s on the radio from 2:00 to 5:00 p.m. eastern time. taylor: and online at businessweek.com. jason: this week's business section is a pot takeover, and investment guide to the cannabis craze. taylor: along with canada legalizing cannabis sales next week, companies are seeking exposure to the budding marijuana industry. here is editor silvia killingsworth on turning pot into gold. lot that has is a to happen. it is complicated to trade between the u.s. and canada because there are a lot of regulations and roles about, is there going to list on certain stock exchanges. if you want to list on the toronto stock exchange, you cannot have cannabis holdings. another roadblock is getting banks to invest and finance. carol: that is a huge one. if this has got banks scared to get involved. silvia: there is reputational risks, the risk in investing in no one knows how it will perform. it is hard even in canada, where it is legal and becoming more so to get the biggest banks in canada to invest. ca

. >> and i'm jason kelly.e have a business exclusive on an army of 16,000. -- in a subversive side five sci-fi movie, it is like the united states. it turns out women are not the play it safe investors that they have always been presumed to be. >> bloomberg businessweek has uncovered the most significant supply chain attack. >> the stunning discoveries are ace -- the subject of an investigation involving 30 companies including government contractors. >> and china is behind it. let us get to jordan robertson from washington. reporter: a special unit from -- ahina liberation army malicious microchip. inc. about it as a permanent infection in the hardware of a computer. this is the ultimate hack. an ideal hack. every time the servers boot up, the hardware, the malware loaded in this malicious chip injects itself into the operating system every time the computer is turned on. it is the ultimate attack. it was found inside computers used by dozens of companies. host 2: once they are in a computer like that, what ca

jason: i am jason kelly. carol: as donald trump criticizes the u.s. ntral bank again, here help paul volcker dealt with presidential pressure. jason: tom barrack went all in for donald trump's campaign but now he has been shut out of the white house. carol: the investigation into the death of a saudi arabia journalist continues to stir up international outrage. the crisis has gone beyond the single incident, now impacting the political order. the senior reporter for europe and middle east wrote about it. he joined us from london to talk about it. >> he was the president of turkey, a country that has more journalists in jail than any other, which articulated this. it was not as one might have expected, the president of the united states and the white house making this kind of statement about the "washington post" columnist that was killed in what is still unclear but rather grim circumstances. carol: what are people saying about that flip of the role, the u.s. speaking up for human rights and then to have turkey having so many journalists in jail and th

jason: i'm jason kelly. carol: the future of retail. commerce giants amazon and walmart are after global expansion. next stop on the battleground, india. jason: plus, sears files for bankruptcy. why eddie lampert couldn't keep the retail giant of load. the politicsto section. it has dominated the conversation this week, the disappearance and the suspected killing of a journalist in istanbul, which has set off a geopolitical reaction as governments are looking for answers from ray at. story -- the story is titled damage control in the kingdom. riad hamade was here in new york this week and helped us put into perspective. riad: right now, i think it is in limbo and the sense of the plan, vision 2030, that the prince has espoused. he wanted to transform the country economically and socially. people aret a lot of now questioning whether he is going to be able to push through with that. you see efforts also by the u.s. and you see the trip from pompeo. you get the sense that one aim behind all that is to ensure that it does not derail complet

this is jason kelly. it jason kelly. carol: i'm so sorry. i'm going to get so much flak.you spend three hours a day together. you can tune in on business week on bloomberg radio everyday day from 2 p.m. to 5 p.m. eastern time. the rich get richer. to a newghs, according report. we will tell you who is leading the way. and if you have a bloomberg terminal, check out tv . watch us online and go to tv on your terminal. this is bloomberg. ♪ david: every year, a billionaire's report is issued. billionaires around the world get a sense of what they are doing with their money. this report is hot off the presses. with us is head of ultra high net worth. it's good to have you back, john. take us through this. we put up a chart showing there is pretty substantial growth in the total value of billionaires. john: you said the rich are getting richer and faster. that is the reality. we had unprecedented growth this year in billionaire wealth, up 19%. absolute percentage terms, it is the largest growth we have seen and all driven by innovation. we had a really cool chart. and

jason: i'm jason kelly. we are joining you from bloomberg headquarters in new york. chnology is changing the most basic component of business and finance. that is money itself. jason: cannabis used to be illegal. now it is investable. taylor: first, we have a bloomberg exclusive. steve bannon slams nikki haley's decision to announce her

. >> and i'm jason kelly. business exclusive on an army of 16,000. -- in a subversive side five sci-fi movie, it is like the united states. it turns out women are not the play it

jason: and i'm jason kelly. we are joining you from bloomberg headquarters. a businessweek exclusive on an army of 16,000 and no, this is not a subversive sci-fi movie, it is the state of politics in the united states. jason: it turns out women are not the play it safe investors that they have always been presumed to be.

jason: i'm jason kelly. we're joining you from bloomberg headquarters in new york. his week, the future of retail. e-commerce giants amazon and walmart are after global expansion. next stop on the battleground, india. jason: plus, sears files for bankruptcy. why ceo eddie lampert couldn't keep the retail giant afloat. carol: first, to the politics section. it is a story that has dominated

jason: i'm jason kelly. we're joining you from bloomberg headquarters in new york. his week, the future of retail. e-commerce giants amazon and walmart are after global expansion. next stop on the battleground, india. jason: plus, sears files for bankruptcy.

i live with roland north of kelly and jason. they are asking us to make decisions with long-term implications and to make those decisions at a moment's notice. there is so much at stake. we need to be thoughtful and thorough. based on first impressions, this offer does not eliminate our concerns. we more fully address our concerns in our letter in the packages that you have. therefore, i ask you to deny this appeal. thank you. >> thank you. >> good afternoon, mr. president, commissioners. my name is norma garcia. i am a homeowner. i live at 329 monthhom street. i share a fence line with my neighbors, kelly and jason. their project is due west of my home's garden. let me just set something straight here for the record. our opposition is not based on housing discrimination. i've spent my entire legal career fighting housing discrimination. this was not housing discrimination. i'm alsohe

david: thank you to jason kelly. nto jason every day on bloomberg radio from 2:00 to 5:00 eastern time. coming up, another bruising showdown ahead for theresa may. more on what i'm watching next. alix: you can check out tv . watches online and interact with us directly. this is bloomberg. ♪ david: what i am watching is theresa may and her cabinet. she apparently little overnight and said we will have to extend this time we are in. the thing that struck me is her deputy said we are chartering a bunch of big ships to bring in food and medicine in case of a hard brexit. the cabinet said, what? alix: they could stay in the customs union for a longer period of time and you don't have a say in the rules, which is the opposite of brexit. seven numbers were like no dice. david: there are six. senior members were giving her a tough time. she is fighting it out right now. the problem is the reason they want to extend it is they don't to confirm what to do about ireland. they have a real problem with the irish border. -pound

jason kelly brings us through it. this is another piece to the european bank puzzle. barclays in one direction, now we have bnp. jason: it doesn't feel like a happy puzzle. it feels like a sad puzzle. that and people saw solid they've been able to accomplish, things are going great. it's not so great. ap feels like it's not compliment, more like deutsche bank. the revenue growth is not there. david: we talked to the chief financial officer. this is the spin he put on it. >> this is basically what we go for, we are well-positioned. there is some lackluster environments in europe. deploying ourby resources efficiently. europe is lackluster. jason: he is not wrong. when you see a competitor being able to do well, you think maybe this is an execution problem rather than just a macro problem. alix: let's talk about how everyone is equal. black rock is leading the plunge. you don't see the inflows. at the end of the day, that's what it is. whatsoever to stay in his we haven't tested this at any kind of downturn. jason: if you go back to the crisis, these guys were not anythi

tune into jason kelly. bloomberg radio from 2:00 to 5:00 eastern time.the big hack, infiltration of u.s. companies. this is bloomberg. ♪ ♪ the bloomberg report of chinese hardware infiltration of u.s. companies. joel webber, the editor in charge. give us the high points. takeaway,the main when we talk about hacking, most of the time you talking about software. this is different. we are not aware of it. hardware hacking. the story details how china spies infiltrated what is effectively the u.s. technology supply chain, the conveyor belt that brings us to from china to that was compromised. all of this is based on reporting with events in 2014 and 2015. david: what is the practical distinction between hardware and software hacking? reporter: hardware hacking is incredibly rare. we have never seen anything like this before. it is about access. access to corporate secrets, sensitive government information. it is almost like an invisible doorway that can allow further entrance. firstas perhaps the foray. according to sources, amazon and apple, companies affec

david: joining us now is jason kelly, the new york bloomberg business cheap. nk has had a couple of weeks you would not want to have. jason: people may not know, saudi arabia is the biggest outside investor. david: it was a big who when they announced that. jason: this is the biggest pot of money and i think we will be talking more about why the who are supposed to be going aren't going now, but speaking specifically of softbank, this is the big patron and he is already announcing that he wants presumably mbs with them in their. --x: an elon musk was like cool, they didn't want to take me private. jason: right, elon musk, feeling better. [laughter] alix: maybe? david: just this morning with larry inc.. all falling out. jason: it is safe to say a lot of emails were going back and forth over the weekend. remember, a lot of these people, thanks to schwartzman, they were there in many cases not once, but twice last year, first with the president, remember president trump as you talked about on your show, went there? david: his first big foreign trip, right. jason:

many thanks to jason kelly.an listen to him on business week on bloomberg radio from 2:00 until 5:00 eastern time. while peoplerrives pull out of davos in the desert. this is bloomberg. ♪ david: breaking news from the wall street journal. morgan stanley and goldman of they proposals to take the public for $120 billion. it's an ipo proposal for uber. alix: we happened to get those underwriting numbers from goldman sachs. they did particularly well. they are obviously competing for business. why would they want to go public? david: they will sooner or later. wantly, it's because they to cash out. alix: that makes a good point. softbank'snked by $100 billion, which is backed by saudi arabia. david: well done. let's turn to saudi arabia. i didn't know where you were going. joined by the projects for middle east and south africa. aslain what playing out secretary mike pompeo is over there. he is trying to find a diplomatic solution to the crisis so the u.s. and saudi arabia relationship does not move in a direction n

any thanks to jason kelly. ant to june into jason every day from 2:00 until 5:00 eastern time. coming up, general electric shares are surging in premarket as the company names lawrence culp as a chairman and ceo. i'm watching whatever but else's. this is bloomberg. ♪ david: this is what i'm watching. general electric. there shares are searching in the premarket after the company blamed lawrence culp to be the ceo. brooke sutherland come up bloomberg columnist. you surprised? >> i was. there have long been questions about john flannery, but i think people thought he had a little more time. i certainly was not expect them to wake up to this announcement today. he is a 30 year veteran of the company appeared when he was brought in, people wondered, did he have what it takes to totally revamp this company that fostered his career where he has all of these friends and colleagues. a loyalty to some of these businesses that he previously ran. he is taken decisive steps. he is undertaken a breakup of ge, spinning off th

of money.ot jason kelly, bloomberg's bureau chief. listen to him every day on bloomberg businessweek. time for the balance of power newsletter at bloomberg.com/politics. get the latest on global politics in your inbox every single day. british prime minister theresa may has been taking questions from lawmakers in parliament. europes she guarantees will leave the european -- britain will leave the european union by march of next year. this is bloomberg. ♪ mark: i am mark crumpton with first word news. president trump warning a caravan of central american theants headed toward united states constitutes a national emergency. he says the group includes criminals and quote i will middle east owners" although he did not offer any proof. the president announced he will cut off aid to latin american countries not being able to stop the migrants. trump met with emmanuel macron. the president says that russia is breaching an agreement. mr. trump intends to pull the u.s. out of it. several powers are calling on saudi arabia. hinted toment positi

jason: and i'm jason kelly. we are joining you from bloomberg headquarters. inessweek exclusive on an army of 16,000 and no, this is not a subversive sci-fi movie, it is the state of politics in the united states. jason: it turns out women are

jason: i am jason kelly. carol: as donald trump criticizes the u.s. in, here help paul volcker dealt with presidential pressure. jason: tom barrack went all in for donald trump's campaign but now

jason: i'm jason kelly. we're joining you from headquarters in new york. azon and walmart are after global expansion. next stop on the battleground, india. jason: plus, sears files for bankruptcy. why eddie lampert couldn't keep the retail giant afloat. carol: first, to the politics section.

jason: i'm jason kelly. we're joining you from bloomberg headquarters in new york. ek, the future of retail. e-commerce giants amazon and walmart are after global expansion. next stop on the battleground, india. jason: plus, sears files for bankruptcy. why ceo eddie lampert couldn't keep the one-time retail giant afloat. carol: first, to the politics section.

so like what was just said, i feel that kelly and jason and their team have been very forth coming. i have been living over seas, and they reached out and were able to share the plans, talk to me, answer all of my questions about the project. i think that the design and the scope of this project fit well into our neighborhood? we have, i guess what i'd call an eclectic mix of homes. i have seen a lot of changes in the neighborhood in the 12 years that i've been there. some are changes to homes that families who own them and lived in them did themselves, some homes were bought and flipped by developers, but i would say that for the most part, these changes have been great for the neighborhood. all of us have seen our property values go up, and it's a different place than it was 12 years ago, and i feel that this property will continue that trend. i understand, you know, for all of us, our home is a big financial asset, and we want to protect what we have. we want to protect the benefits and the things that we feel that we have in our property. i know that there's some concerns about

jason: i'm jason kelly. we are joining you from bloomberg headquarters in new york.is week's issue, the death of cash. how technology is changing the most basic component of business and finance. that is money itself. jason: cannabis used to be illegal. now it is investable. taylor: first, we have a bloomberg exclusive. donald trump's former steve strategist steve bannon slams nikki haley's decision to

jason: and i'm jason kelly. we are joining you from bloomberg headquarters.week exclusive on an army of 16,000 and no, this is not a subversive sci-fi movie, it is the state of politics in the united states. jason: it turns out women are not the play it safe investors that th

jason: i'm jason kelly. we are joining you from bloomberg headquarters in new york.issue, the death of cash. how technology is changing the most basic component of business and finance. that is money itself. jason: cannabis used to be illegal. now it is investable. taylor: first, we have a bloomberg exclusive. donald

david: many thanks to jason kelly. to jason on business week on bloomberg radio every single day from to talk to 5:00 eastern time. this is more of what i'm watching next. directly.ith us this is bloomberg. ♪ david: amazon came out with an announced that really caught my eye. as for everybody. part-time and temporary during the season. 250,000 employees to benefit from this and you get a sense of $15 an hour, california is not going to go to $15 an hour minimum wage until 2022. they're really getting ahead of the pack here. >> what is interesting to me is what kind of treasure it puts on retailers. it is thought to pay their workers more and the actual labor shortage and when they build out and have bigger distribution enters. people from move retailers and for them away from other industries. when walmart did something like this, we talked to the ceo who said they also purchased things from us. maybe amazon employs no more. alix: also true and who cares about profit margins for amazon? coming up, sara malik will be joi

david: many thanks to jason kelly, thank you.mberg radio every day from 2:00 to 5:00 eastern time. the taxman cometh, tax authorities are looking into how a geisha and the president trump and his family building a real estate empire from instances of outright fraud. more on what we're watching next. alix: check out tv , and watch us online. interact with us directly and go to tv on your terminal. this is bloomberg. ♪ david: this is what i'm watching, and i'm not the only one watching. the new york times came out with this big investigation into how president trump got the wealthy got, because he said my father gave me a million dollars at one point and i built it into a multibillion-dollar empire. the new york times reports that that is not what happened, his dad over the years gave him over $400 million worth of money. but more to the point, it's not just how it got made, but the way that they gave it to him through tax issues, mainly taking positions, at one point his lawyer said that these allegations of fraud and tax

david: joining us is jason kelly. we talked about this before. like a slow-moving train wreck. jason: basically, assets are fleeing this fund. is this is a tough time to be an asset manager generally. these are going down, volatility is up. unless you have a good take on the market, you're struggling overall. thing, a lot of money managers have gone public in the past few years. everything is that much more in the open. you wonder whether that element plagues. david: is that because of mr. heywood himself? are there questions about irregularities? it wasn't anything illegal. jason: it doesn't fall him. the question in any firm like this,if he was able to do how good are your controls? how good is your compliance? alix: what do you do? it's a really competitive industry to begin with. goldman sachs, this came out yesterday. they are moving the markets division into the wealth management business rather than where it was before. it was more of a consumer. why? do they want to cross sell that product to less rich people? jason: not fewer rich people

alix: joining us is jason kelly.one landed at $20 billion from sally's. -- from the saudi's. what did they give up? >> they gave up a lot of the fees they would normally get to get this massive commitment. equity fund private is roughly give or take $20 billion. this was one commitment from one investor. wow.it back and think, then you realize that a $40 billion fund would be the biggest of its kind. it is not actually surprising. david: it is a fascinating report. it is kind of like a volume discount. they said we want to cut the fees. >> it is not that surprising. the scope of everything about it is a little bit surprising. we do not usually get a look behind the curtain. also, it is a reminder that the saudi's given everything else going on, are a massive economic force. we talk about them in the oil business. just in the money business, they are a massive player. blackstone, i saw last week about elon musk taking a private with the saudi's. musk andntioned elon softbank. softbank got $45 billion committed from th

thank you to jason kelly. canabis becoming legal in canada.k with the green holdings dutchman ceo. this is bloomberg. ♪ ♪ alix: marijuana going mainstream in canada. some analysts see the market reaching $3.2 billion next year and will lead the global are opod opportunity to t $200 billion. joining us is brian athaide, the green organic restaurant is an afghan it cannabis company with operations focus on medical cannabis markets in canada, europe and latin america. brian: thank you for having me. alix: the legalization. what does that mean for your business? brian: it is like the end of prohibition for alcohol. it is a huge market. the lowest estimate is about $6.5 billion. it could grow to $10 billion in canada with legalization. that is across all different types of product forums. it will take time for the black market to convert to legal but it's an incredible day. david: an interesting analogy, prohibition. is for altering your mind as opposed to medicinal? brian: the legal market has been all medicinal higher to this. as country is rolli