tv Bloomberg Business Week Bloomberg November 5, 2016 7:00am-8:01am EDT
oliver: we are coming you from new york. the nflelection eight tv ratings. carol: he is trying to get republicans to look at climate policies. oliver: this might be the world's most ambitious cryonics company. bloomberg businessweek starts now. carol: we are here with the editor in chief. in write about sam's club
china. it's not the sam's club we know here in the united states. >> they have repositioned sam's club. they mostly target small businesses. it's known for both purchases and discounts. in china, it's about high-end alex to affluent consumers who are willing to pay for luxury products and even walmart products that are priced higher in china than they are in other markets. carol: we are talking about $3000 for a rice cooker. ellen: my favorite is there's an ironing system that cost $4000 and comes with hours of instructions in your home. oliver: let's talk about this break down of the deal between get that and tronc.
ellen: it was an unsolicited offer. it has fallen apart before. this time it fell big-time. ett is the biggest newspaper chain in the country. they want to build a huge chain of newspapers. tronc is the old tribune a company. they own the los angeles times. he wants to help save journalism. he did not want to give it up. the price was good. it dragged on for so long that the financing fell through. story is in the features section. it has to do with what's going on with the nfl and people aren't watching as much. ellen: they are having problems on tv and nobody expected it.
for broadcasters, it was a bright spot. people are cord cutting. they are streaming video on their devices. the nfl was a dependable source of revenue. now it looks like fewer people are tuning in this season. it has a lot of people worried and trying to figure out why. carol: we got all of the details. felix: the nfl ratings are way down. for years, the nfl has been the biggest thing on television. the ratings for primetime games have been down 19 or 20%. about 1/5 of the audience disappeared. it's a huge deal for the nfl and its media partners. carol: you quote a sports agent. he talks about the money machine. felix: it's all dependent on
television. the business model, the reason the nfl franchises are worth so the stars ofd football make these big contracts, it's all based on the success of televised football. weakening,rts everyone is left wondering what next for the nfl? carol: you mean merchandise? felix: all of it. it's a symbiotic relationship between the big media conglomerates. what's so particular is about what's happening right now. it's not like this has been a long trend. it's happened a very's precisely this season. do they know why? carol: everyone is trying to throw out a hundred different explanations and theories and hypotheses. felix: the biggest thing and what the nfl says is we are in a
huge presidential election. there's a lot of interest in that. the cable news networks ratings are up. once the campaign is over, our ratings will come back. that's probably partially true. in the past, ratings have gone down, but not by anything close to what we are seeing this fall. carol: the big game was the sunday or monday night football. now the have thursday night for all, there are a lot of college games. felix: it used to be scarce and people look forward to it. once a week the teams played. there is a sense of anticipation that built up. over time, they have eaten up more and more airtime. it's not just sunday afternoon, it's sunday night, it's monday night, it's thursday night. they have games in london that air early in the morning. maybe it's too much.
they've gotten a little too greedy and there is over saturation. the coverning in image was a job for rob barton. rob: a lot of times when we do sports stories, they are very specific. this is about many different things. it's hard to represent that visually. we did little bit of research about football watchers. i am not a football watcher. every sunday night, they have games apparently. they have a very specific look to the graphics. we took one of those graphics and we listed all of the reasons why the story says they are not doing so great. oliver: i feel like that is a significant departure from what the cover is. it's normally very simple and gets its point across. there is a lot going on here.
rob: there are so many things and they are so everywhere, everything from millennials two concussions. we are jamming them altogether. carol: there is so much going on. it's like the graphics of a football game. rob: there are robots. it's a very bizarre world for me. what earlynext, voting actually looks like. we sent photographers to battleground states and -- states. learns how little $175 million and buy. ♪
oliver: welcome back. section, the feature and advocate for progressive issues inside republican conserver -- conservative circles. a political rookie. he was a successful business guy, he sold the company for $200 million. he decides to devote everything, all his time and money to getting the republicans to shift on climate change. he shows up in washington last summer and starts spending money and trying to move the party. about all the
obstacles he faced and how much he had to change to find a way to make it work. carol: he went in with a mission t on theg to get i republican platform. >> he wants to change the party. let's start with the grassroots and let's -- maybe the problem are not hearing it conservative voices talking about this issue. let's try to reach out to them through a digital ad campaign, facebook and google and try to get their attention and tell them about the science. it did not work. people did not pay attention to it. start as a he staunch climate supporter and an advocate of these ideas? did he start as a republican mary the ideas with that? supporter was a big
in republican circles in north carolina. up and his experience in the business world confirmed his idea. he is a small government probe business guy. about 15 years ago, he started to get interested in climate change and he goes and reads all the research. he firstt sounds like had to convince himself through various means. he heard from business who were concerned and he did his own research. he was able to bring himself over to this knowledge. what were the impasses that he found within the republican party? was it strictly ideology? why was it so difficult to get other people to have the same experience? >> that's a great question. why is it when you put ads on facebook about climate change that liberal people agree with it and conservatives shut down,
even if it's coming from a conservative voice and above the fray?an freight? -- when it comes to these issues that are also remote from our daily lives, there's nothing you can do today. simon change or not. it's all kind of abstract. on issues like this, when people think about the science, they are trying to present a version of their identity that is acceptable to the people around them. are just as guilty of this where they reject the scientific consensus if it's on the other side. when it comes to the storage of nuclear waste, there is a consensus that it's not that scary. liberals think it is.
it's the same thing on climate change for conservatives. we deployed a team photographers to swing states. carol: this is editor allison hoffman. allison: we wanted to do a spread with voters. we realize we could do it before the election. it's been happening since october. early voting starts in early to mid october. at this point, 22 million people have already voted. photographers to five swing states, for swing states and one newly contested state. we went to utah. it's a republican state, but voters there are having a tough time with donald trump. it's a state that ted cruz one in the primary. we sent a photographer to provo, utah.
it has the lowest percentage of trump and clinton voters. oliver: in such a contentious election, how difficult is it to find people on the street to let you take their photograph. allison: it varied. our photographers were very sweet about it. we set up a north carolina race. black churches have been running a sunday march. they take everybody out of the church use and marched to the nearest polling station. we went to charlotte and the photographer went to services and marched with that group. it was heavily clinton supporters. he did talk to some other people who did not come with that church group. he found some he was very proud that she was a jill stein voter. we had a mix.
carol: what about nevada? allison: they voted for president obama twice. they have a democratic senator who is retiring. that state has been the scene of incredible spending in the senate race. republicans really want to grab that senate seat. you have a mix of people coming out of their and we went to voters all over las vegas and even there, we had one woman who had retired to las vegas from new york and she voted for reagan and republicans in the past. she was voting for hillary. it's interesting to see people who were proud to tell us who. they voted early and did not want to get stuck in alliance. carol: a trip to a mexican supermarket proves all of trump may be right about one thing and oliver: we talked to the
reporter. moreere are more and products in american stores here every year. all i have seen is growth in this area. starbucks, red lobster, everything you need in the u.s. you can certainly find here in mexico. we decided to chronicle that .hrough the shelves that is a supermarket here in mexico right outside mexico city. shelves that is are stocked with american goods. oliver: what process brought these american foods into mexico? was it about factories there? was it preference? what drives it?
>> that's a good question. all of these foods, the point is they warrant made by an american factory. they were made in the united states and they were imported to mexico. imports food from all of the world. 80% comes from the united states. ofs is clearly a product nafta clearing has both ways. that's one part. another is cultural sharing between the two countries. carol: it's in informational he's -- peace. what you have shown is there is a lot of u.s. goods going into mexico and that has resulted in the u.s.ted both on side as well as the mexican side. >> exactly.
to make a lot of the finished products that are eventually they will cross the border several times, as much as eight times, creating jobs on both sides. is data point from mexico 40% of all finished products for expert, 40% are made in the u.s.. that is a lot of jobs. carol: the product of the heroes of the economy. there is a silver lining.
in london as well and asia on the bloomberg app. productivity has been growing at a slower pace. oliver: we found at least one number that coincides with that trend. peter: an economist noticed something that's kind of strange. countries,mber of when you have a higher proportion of 40 something's in the workforce, you get higher activity growth. the most important thing in the world's productivity growth. of news.kind it was also weird. why? people, the national research council took a look at it. they didn't buy it. the president's council of
economic advisers looked into it and they said research has said they were right. there is something going on here. what's interesting is at the time he did his work, a decade ago, the percentage was kind of falling. that was a drag on u.s. activity growth. back then. now, we are getting to the bottom of that. the share of 40 something workforce is in up way up. carol: we are trying to figure out what's going on with the economy. it feels like we can't get the engine going. does this explain it? >> it explains some of it. i would've not thought this myself. that's what the number show. your next question is why would that be.
i asked jason furman, he is president obama's chief economic advisor. he's 46. peter: right in the sweet spot. it's a combination apparently of the experience you get after couple of decades in the workforce being positive and you are still vibrant. i am out of that age group. i can say that without any accusation of tilted it. you have the sweet spot of the best of both worlds is the theory. oliver: in the markets and finance section, americans are dying faster. then: i looked at a study and actuaries are a profession that this is what they do. this is their main thing. they came out with a new study.
the estimates of life expectancy are basically about six much order then a year ago. that doesn't seem to make sense. we would all think that health care is getting better and we know what to eat and what not to eat. the research says something different. on here is theng health of a certain segment of americans is deteriorating. white non-hispanics in america have had a lot of problems with drug overdoses and suicides. this is not uplifting at all. their life expectancy has gone down a little bit. what's really going on here is the actuaries are predicting the future and they have always assumed in the last decade that life expectancy would be good. american started living longer
and longer and that slowed down. it's not that people are dying off, it's the improvement is not as fast in the future. oliver: here's what i found fascinating. you mentioned some of the identifiable causes behind the trend. they could be controlled or have a choice. you mentioned suicide and liver problems. we think of that being tied to alcohol. intou think the study gets those issues are cropping up? what we see isis the inequality story. it's translating into health. if you look at high school graduates versus college graduates, college graduates can live 10 years longer. live 141% in income can years longer. can expect to live
10 more years, this is a very interesting math. if you look to a certain point, you can expect to ask and beyond. good point.a when we talk about life expectancy, we look at life expectancy at birth. statistics, i the am only going to live to my late 70's. actually, if you are 65, you have a chance of living to 86. you have 50% chance of living longer than that. it's important not to get too bogged down in what the birth life expectancy is. we will introduce you to one company that wants to help you live forever. carol: a license to print plastic that could be the future of global currency. ♪
story looking at how china make it to the slowdown of stagnation we've seen in japan. >> obviously, china's growth has slowed, but it is still pretty substantial. we look at is what has happened to japan and what it is similar to what can happen in china. not that many years ago, japan was considered to be growing very fast, catching up with the u.s. and everything looked rosy. been a total, it's fog and there has been deflation. fix andn very hard to they been trying for a long time. the sameee some of patterns. in japan, there was a lot of cooperation between the government and big businesses and favoritism for big businesses, etc. the same kind of thing happens in china. whether they are replicating various problems, including that kind of
cooperation, whether they are -- what we companies are now calling zombie companies. ,hether there is too much money and that is a huge problem in china. the question is whether they realize that these are all stumbling blocks that could lead to someplace they don't want to go. oliver: shifting to a story here in the global economy section about russia, and specifically, vladimir putin in the kremlin. they have a bit of a leak in their own sort of data, and there is a lot of tension right now within the kremlin. tell us about the story. kremlin, it's kremlinesque, there are a lot of people with diverting interests and they are fighting each other, etc. this opposition leader who is posting high-level gossip on his
website, which points to access excess and- mismanagement, etc. is perceived that one party got favoritism over another. -- it's things like carol: the show dogs. on planes, flying paid for by companies. just incredible access -- excedss. oliver: this is the candidate that may be coming up against putin. planes, paid for by companies. for mayor of moscow did not succeed. this is riling up a lot of accusations of mismanagement of money, etc. and yes, there is a dog angle. carol: we don't normally hear
about the private dealing with the kremlin. in features as well, you have a russia, checking out firmics berm -- cryonics that is doing great things. ellen: there were lots of stories about freezing bodies with the hopes that later, people would be revived. diseases would be cured, a baseball player ted williams was one of them. this was also developing in a big way in russia, through this one company we write about. as part of a trans-humanist is to see if idea you can live forever or a very long time. the thought is they are going to freeze bodies, sometimes just head, with the hope that people can survive in their brains can be downloaded into computers. this is getting some traction, these people are really serious. one of the big problems is how to unfreeze.
they are using a chemical process that they actually do not know how to reverse yet. can you revive people, it's how do you undo what you've done to preserve the brain. oliver: it's almost something you have to see to believe. we spoke to josh, who saw the facility for himself. about this company based in moscow, one of only three cryonics companies in the world. two of them really united states, one arizona, when michigan. what exactly are they doing? josh: most basically, they are freezing people after they die. visible more obligated than that, it's not like they throw them in a freezer and that's the end of it. when you freeze tissue, it causes damage. there is water in our cells that expands. whatever has killed you, perhaps sometimes down the line, the
disease will be curable or nanotechnology will allow reconstruction of cells. the unbelief is that something called the singer larry or brain -- the singularity, or brain uploads will be possible. whatever constitutes our personality, which is memories and we don't even really know, it's all stored in the brain. at some point, the brain, which is some kind of hard drive, will be able to upload onto the machine. so then he can live forever virtually. isol: or someone who brilliant, like a scientist, the thinking is bring back their brain. josh: they essentially turned tissue into glass. tank andget put in a you are cooled with dry ice. how closely paralleled is this what we see in science fiction movies or, to movies? how about "austin powers," cultural examples where this kind of things exist.
how much science is there being done here? movies, they always wake up. at the moment, they gotten pretty good at preserving people. not good at all about thawing people. the most basic problem is you can reverse -- you can't reverse this easily. it's considered toxic. the answer they will give you is we realize there are flaws and the right now, we can bring you back. but technology is advancing at an expert rate, so down the line, we going to figure it out. typically, the answer is we will figure it out. but if you don't do this, you won't have a chance. section,e technology we investigate the company world'saking 99% of the plastic cash. >> they started making cellophane, but over the years, it expanded and now a corner the
market on plastic banknotes. plastic cash is becoming much more popular around the world. mexico, canada, australia and now the u.k. are adopting it more durable and harder to counterfeit. with the history and plastic, they've been able to carve out a niche for themselves. oliver: run us through who is leading the front on this type of currency right now. adam: australia was the first to do it. 1980's,e ago, in the and the result of that was they needed something that was more durable than paper bills that could withstand the heat, and so they went to know via and created these bills. more and more companies -- country seven adopting a. oliver: what -- carol: what is a plastic note? what is the science behind it?
what is it made of? it looks like a regular bill, but it feels a bit like wax paper and has a bit of machine -- of a sheen to it. some people have shown you can use it like a vinyl record needle. but the way that it is made is really interesting. we went up to northern england to see how it's done. it starts out as these little popcorn kernels of plastic. the 10 story building and at the top, they put in this plastic that is heated and melted. it comes down into the sheets of plastic, where does melted down incredibly flat. as it moves down the factory, it becomes thinner and thinner come until the end, it flattens out even more and they had holograms and the ink in its cut into
>> the flagship part of amazon has very low margins. it's a very competitive business. the cloud business has a much richer margin. comment that this startup made a conference saying look, you're giving these guys business and helping them subsidize the e-commerce part of the business with the cloud business. you are fortifying a competitor, you should look elsewhere for cloud services. carol: that leads us to the next part. there are others doing this. amazon is one of the major players, but microsoft is doing something. sor a few other companies. -- and so are a few other companies. >> the choices are more reasons. amazon web services still has more than 40% of the market. peopleingly what you see doing is divvying up little parts and giving it to different companies and not putting all
their eggs in one basket, which is what people are scared about. after we heard this comments, we went around and talked to the i.t. executives of major companies and we found that did resonate. home depot, for example, said it was absolutely a consideration when they were weighing who to give some of their cloud business too. they said, for example, if we said tomorrow that we were renting server capacity from lowe's, people would laugh. for that reason, we went with somebody else besides amazon web services. the technology section, the nba is setting the record as the first professional sports digger shot of virtual reality. a weeka little more than ago, something happened at an nba game and you were there. >> it was a vr broadcast. carol: meeting virtual reality. jargon.the it's not the first time it happened at an nba game, but this year, the league is
committing to do one a week for 25 weeks. andtarted with sacramento their brand-new arena against the spurs on thursday the 27th. oliver: who's is going to have access to this program? how do they get involved and pick the games? ira: you have to be a league pass subscriber. $200 for the season. if you have that, you can do the vr at no additional charge. you then have to have it this point, a gear vr headset, compatible samsung phone, a pretty good wi-fi connection, and then it added on. you go through, working with a company called next vr, which specializes in live streaming sports and events to produce these. use your league pass login at app to watchut -- the game.
they are hoping to expand. oliver: there are few moving parts. carol: and if you hundred dollars involved. you actually went to the game and got to put on the headset and experience the game, even though the real game was -- ira: a couple hundred feet away. carol: what was that like? ira: i had only seen a couple of about. of vr, not mask but delivers on the immersive experience, and you forget where you are. they are working out the kinks. in this particular case, they are trying to do a tv style broadcast. stationedeight rigs around the station. they move you around with these three are cameras that give you 180 degree views. announcers and graphics on screen, so if you want to see the score, you look down and it seems to be below you. this is the first time they've done it that way. for best ballgame. so when they whip from one
camera to another, you are disoriented and don't know where to look. can't quite focus in the way or i can, what's far away and what's close, with your eyes, you automatically refocus. in vr, they are still dealing with that problem. what's far away can be fuzzy. it's fascinating. you find yourself twisting your head to look over at the coach while the action is going on and he seems to be right there. at one point, i'm seeing the referee walk right up to the scorer's table where they have the cameras set up and he is standing right next to you. it's a novelty at this point, but you can see the promise of what this could be. the replays are fascinating. a greatoing to be feature, watching the play again in immersive perspective. andl: in the markets finance section, money managers are pitching a new type of portfolio run by a committee of robots. oliver: here's reporter dani burger. dani: it's looking at characteristics of stocks,
rather than companies are fundamentals. theyer they are peak, don't swing very much, or whether they have momentum. you can already buy etf's that isolate those single factors. what multifactor does is takes all of those and steps as many as they can into one etf wrapper. you buy one product that is low volatility and quality stocks, all those together. oliver: that sounds like a lot of things to fit into one cohesive strategy. what makes it appealing? is appealing because first of all, there are the tax reasons. the classic etf, that they are cheaper. investors want these four core product, at least, that's what they are billed for. rather than owning the s&p 500 is your main core thing you hold on for a while, you will him to this. you don't need to buy a bunch of different etf's. carol: it controls are for polio automatically. dani: it's almost geared to a
retail lot he ends, it's like hey, don't worry about it. we have this math builds portfolio for you. oliver: why are we talking about multifactor strategy right now? is it because it's been a difficult market the past 12 months for active managers to make money in? is it a trend to passive investing? what is making it right now? dani: all the points you raised are valid. be due to the general flow from active to passive right now. another trend that's going on is the idea that because active managers are having a tough time, perhaps more mathematically-based investors can do this better. you put those two things , it's definitely an idea whose time is come. oliver: what is so cool about the skim, and why it's a
oliver: you can also listen to us on sirius xm, channel 119. and on a.m. 1130 in new york, am 1200 and boston, and a.m. 960 in the bay area. >>ol: in london on da bmu three and on asia on the bloomberg west app. if you are a millennial, chances are you are aware of the skins. oliver: why do so popular among readers and investors. roommates, in their mid-20's at the time, former nbc producers who basically were
trying to start a newsletter that would summarize the news for their friends. whileea that millennials, they are not huge consumers of newspapers or network news are in fact, contrary to popular belief, they want to do with going on. it's a straightforward summary, compared it to the original time magazine. it's very broad it doesn't go into a lot of depth. he gives you a good foundational knowledge of what's happening. and it's written in snappy millennial a witch. -- language. carol: what do you mean? on overot of jokes go my head. l,uses acronyms like ir etc., etc.. carol: they are having some fun with it. max: it's useful. -- useful. oliver: i was on the subway
looking over the shoulder of the person next to me and i saw the headline, a major news event. i was like what is this? i said in reading more and the content when you got past the snark was very straightforward and very objective, which surprised me. we are having an editorial meeting the other day, i it brought up like six stories in the regular business meeting. three of them were in the skin this morning. this morning. it makes you feel old. it is the news. it isetty amazing about its growing really quickly. we have 4 million subscribers, 24 century fox with a $.5 million investment and the new york times company. it's a weird niche thing that
might ask attorney to something big. carol: a new healthy weight need a whole pint of ice cream. count me in. oliver: as long as you give me ask you. -- a scoop. >> you can a pint of this ice cream anywhere between 240 and 280 calories, which to give you some perspective, ben & jerry's chunky monkey, which is amazing is 1200 calories for a pint. oliver: it also has the added benefits of full protein. what exactly is going into this so-called ice cream? >> they replaced all the bad things with things that taste pretty good, that aren't as bad for you. there is no proteins to make up for the lack of fat. they are using a no calorie sweetener in stevia. and there's a sugar alcohol, which sounds, located in gross, but it will not get you drunk and tastes fine. carol: this was created by a
lawyer who had concerns and health problems. 2011, he buys an ice cream maker off amazon. he tinkers with a recipe and finally get something to taste good. by 2014, it's in kroger and whole foods, everywhere. stumbles on a recipe that works and brings it to big retailers. who is investing in this and where's the money coming from to keep this going? bret: they are disclosing a lot of the nitty-gritty financial stuff. they don't like to talk about the process. one of the really interesting things early on they were basically told my people buying it at the ice cream tasted chalking. -- chalkey. when it freezes and re-freezes during this duration, develops a chalky texture. they have figured out a fix that. carol: "bloomberg businessweek," is on newsstands now. oliver: and online.
carol: i love the story of sam's club in china, it's different in terms of product mix. a $3000 rice cooker, a $28,000 curved tv. you can buy pricey red wine. interesting in terms of the strategy in china. they're going after the aspirational shopper and the shopper in china likes these imported goods. it seems to be a good strategy for sam's club. oliver: they are all really expensive. there was a surprise element that we are talking about chinese economic growth, it's getting weaker, but you think about the actual consumer, they are willing to turn on some bucks. carol: especially the growing middle class. your favorite story? ofver: the two stories longevity in life after death, the story about how americans are dying younger, which is an it's notng economic -- too bad. there's this idea that maybe we are not medicating properly.
juliette: coming up on "bloomberg best," stores the at shape the week in business around the world. the bank of japan, the fed, the bank of england all come out with policy decisions. >> the bank has set very ambitious targets for for inflation for quite some time to . >> they don't want to make waves before the election. and they didn't. >> there try to reassure people that will do whatever is necessary. juliette: from tech giants to big banks to oil mergers, and media companies, it's another huge week for earnings reports. cory: by any reasonable measure, it's a fantastic quarter. >> seeing triple digit growth. >> is not everyday you can be