tv Bloomberg Business Week Bloomberg November 12, 2016 3:00pm-4:01pm EST
this week's issue has a major focus on donald trump's historic victory. carol: we will also talk about policy. oliver: and also who he will bring to the white house. carol: it's all a part of numbered business week's election issue. we are here with ellen pollock, thea huge portion of magazine's stead a kid it to the story of the election. what went into getting it altogether?
ellen: obviously like a lot of people we thought it might go to clinton. we were prepared for trump and switched gears in the middle of the night. one thing that a special about the issue is we had photographers at both evening and events. and we got to tell the story of the victory of trump and defeat of clinton in photos as well as words. it's just a different kind of storytelling. oliver: one thing that was a great way to bring color to donald trump was your wall of trump which is a visual but also about the things he said in the past. ellen: the issue has a lot of stories about the election but one thing we did is we went through all of his promises or many of them in his own words and we had a full page of the many promises involving immigration, taxes, involving a
whole set of policy initiatives that he promised during the course of the campaign. carol: i feel like it led the coverage. it reminded me how many different promises he made about so many different things. and there has been so much attention to his style, his issues with women, etc. and this was a back to basics and this is what he has promised. in the end, that's what the presidency will be about. carol: and getting responses the morning after, you tapped into the global response. ellen we did, throughout the : sections on the election, we have quotes from world leaders and business leaders about their response to the election. we have the heads of states of russia and france and business
leaders like mr. dimon of j.p. morgan chase and others. oliver: you did a great job dissecting how we got to this point and what happens and you look at what's coming and have good analysis on what we can expect next. you approached how to look forward. >> we divided the 20 pages into politics and policy. when we got to policy, we were looking at what president tromp trump will confront as he tries to get his policies through. we looked at how it was possible to change the course on crime -- on climate, how it was possible to change trade and how it will not be so easy to do what he has been planning to do and what it will take to get those initiatives through. carol: there has been up pushback against wealthy people in the country. that's who donald trump is but the people who supported him saw him differently.
>> they see trump as somebody who built real things. he did not do something you can explain to your mother-in-law. he built a building and you can see it. you can buy the tie or the cologne or the golf course, you can see it as tangible and that is easier to get your head around than people in lower manhattan jockeying numbers and that's part of it. i think there is also people looking at the clintons and you are talking to people who look at the clintons and say those people are not me. me.hose people armare
what did they do to deserve their hundreds of millions of dollars and they drove that point home. the idea of something for nothing and someone else is getting something for nothing and somehow these people could not share in that and that resonated. stephen bannon was passing around a note saying this is not the french revolution. we're not going to burn the whole thing down, but we are going to make sure our voters can share. oliver: this was a follow-up to the story you did a few weeks back, looking at the internals of the trump campaign. can you shed some light on what it was like to be there, even when their numbers were better, they were way off. ellen: i think they benefited from being an insurgency. we saw it in 2008 with obama. the reporters said we are going to go down to san antonio. it's far away from where everyone else is.
i think that bought of the trump -- bought the trump team license to focus on what they were doing and not buy into the same scenario being spun in washington and new york. carol: now we have to see whether the group trump has appealed to, he can put the policies into place to benefit them. >> and we will see who we bring to the white house. carol: turning the selection -- turning this unprecedented election into a cover story was the job of created director bob farkas. bob: we decided to go with three different covers. we had two photographers in hillary's camp and in trumps cap -- trump's camp photographing the night. we did not know how it would go. regardless of what happened, we wanted to shoot the supporters celebrating or morning. they shot late in so the night and we saw the pictures the next morning and we found a couple we really liked that we thought
encapsulated the enthusiasm of the trump supporters and the concern of the hillary supporters. oliver: you were able to pick just one person from each group. what you focus on individuals? bob: you see a lot of crowd shots and we wanted to do something that did not feel like everything else. there were shots of trump and hillary and we wanted to take an approach and focus on a supporter that conveyed the feeling of the entire group. when we found these, we think it accomplished that. carol: it grabs your attention. and they will be surprised to seeing their faces on the cover. talk about the international cover. i love what you guys did this week. bob: we thought this might be abstract for overseas so we wanted to aim more directly at donald trump.
we knew there would be of billion photographs of donald trump the next day so we wanted to show him but also not show him. a photographer saw they brought out this cake for him. it's bizarre. oliver: it might be one of the most tweeted photos. carol: that's actually donald trump. bob: we thought it was a fun way to show him without actually showing his face and get straight to the point. carol: up next, the donald trump overthrow of the elite. oliver: and what happens to donald trump businesses when he is in the white house. carol: and other conflicts of interest, that's next on bloomberg businessweek. ♪
carol: welcome back. in the special election section, how donald trump plans to run the country without the people who know how to run a country. peter this is not a normal : election. this is more like a regime change. out with the old, in with the new in a big way. donald trump made his whole campaign out of condemning the behavior of the leads. -- the elites. carol: what is an elite? peter new york, l.a., the : bicoastal people in prestigious jobs which includes the news media very much. we can talk about that more later. his campaign was raised on the that theon the idea
elite failed america and that resonated with a lot of people. if you are a member of one of these elites, you have to be quaking in your boots a little bit now that he will be in the oval office. carol: there is such an infrastructure in washington, people who have been there for years and usually can go from one administration to the next. what happens to them? peter: it's like the tide coming in and out. the democratic appointees come out of the woodwork and out of the think tanks and so on come out of universities into the administration and then republicans slide back. it is the concept of a loyal opposition. washington is a company town. everybody knows each other and they may take opposite points of
view on the issue of the way but ofissue of the day, but some them will go to the same cocktail parties and send their kids to the same schools. it's not like america matt in that sense. america overall is more geographically divided. what donald trump is saying is that game is over, the game with a wink and a nod, we are playing for the same team. business as usual is gone now. oliver: who exactly might donald trump bring to washington? max: earlier this year, -- was producing movies about batman and tarzan. anthony scaramouche he was working on a tv show to bring back wall street from the 1970's. tom barrick was putting together sell miramax and less
than a year later, those things, these guys are part of the group of the financiers and investors who are now perched in a position to have great power. these are the people who could become treasury secretary or the national economic council. these are people who will have immense power and the reality is america knows very little about them. minutian comes from goldman sachs. carol: we think about the folks that end up being treasury secretary and they are traditional big bankers and wall street. when you think about hillary clinton, maybe they were associated with her. guest: hillary clinton was so famous and probably so hated for ties to wall street. at the end of the day, i'm not sure clinton would have been able to put in one of her friends from wall street and she has many. i'm not sure she would have been
able to put in one of her friends, though i'm sure a lot of them thought they were options but here we are with donald trump winning and it looks like the lead contender is stephen minutian and he was not schlub at goldman sachs. his dad is a legend that goldman sachs and he became a partner. he had a title like chief administrative officer. he had a senior title. he also worked for george soros and lloyd blankfein's face were flashed on the final donald trump add. he is strongly affiliated with these guys. if he were in the room, i think he would say he is less interested in catering to what they think then spreading the donald trump populist message. carol: big questions remain about what will happen to donald trump's businesses.
we spoke to reporter -- caleb we can safely say it's an : unprecedented level of conflict of interest. when we think about the donald trump assets, there are three big things to think about. the first is his international licensing agreements. he has licensing and management deals with developers in uruguay, the philippines, south korea and that can obviously influence things. there is his new hotel in washington. he is a licensee to the federal government there. he pays rent to them to run that hotel. that's a big one and the third one is deutsche bank which is currently in negotiations with the department of justice and has other settlement discussions coming down the pipeline. that was originally going to be $14 billion and donald trump has $630,000,000 of debt and half of that is with deutsche bank. >> do we know what he has to put in a trust or what access his family can have?
do we know what he has to put into a trust? how does -- how do we parse this out? caleb: this truly is unprecedented. the closest comparison is nelson rockefeller. the newest laws to deal with this sort of thing came after he served as vice president in 1978 which has a whole bunch of conflict of interest rules for everybody in the executive branch except for the president and vice president where they said it could prevent them from making hard decisions they have to make. there are very few conflict of interest rules that apply to him and anything he does in terms of trying to distance himself from his businesses will be of his own volition. carol: up next, will donald trump really try to build the wall? >> will he continue to deny climate change? ♪
oliver: welcome back. carol: you can also listen to us on radio on sirius channel 119. in the bay area. oliver: in london as well and in asia. carol: in the election section, what donald trump says about immigration reform. josh: what donald trump can do through executive authority even with congress.
immigration is an area where the president of the united states has the most authority to act alone. donald trump, if he chooses to, can make good on some of the promises that have excited some of his supporters and alarmed many immigrants and immigrant advocates in the united states. he could very quickly cancel actions taken by president obama that provided relief from deportation and the opportunity to work for hundreds of thousands of undocumented immigrants including those who came here younger and do not have criminal records, the actions that obama attempted to take that have been blocked in a texas court that would have expanded that protection to larger groups. he can cancel those which means we could have hundreds of thousands of people who came out of the shadows, so to speak, who have been able to work and start businesses and hire other people to work for them, who have been able to buy homes and are faced
with difficult decisions once that protection is revoked. carol: you are talking about president obama expanded the daca programs. those are the programs you are talking about? >> yes, those are programs that donald trump has said he would get rid of any could do it quickly. the irony is that obama was reluctant to go as far as he did to use administrative action and he took pressure from activists and the failure of comprehensive immigration reform in congress to get him to move more aggressively. there are many reasons to think that donald trump will not show hesitation about using the full powers of that office to make immigration reform, immigration policy look the way he and his supporters want it to.
that goes beyond daca. donald trump could adjust or get rid of the instructions that ice has who is a priority for deportation. people who might have seen as de-prioritized could be seen as priorities or there could be more confusion and ambiguity a about who agents will go after with their resources that are below the amount to deport everyone undocumented. advocates say you can see fear and chaos. oliver: the donald trump stance on energy is starkly different from president obama. matt: all bets are off. the amount of political capital and the time and effort that president obama has spent during his second term to focus on climate and the environment and energy, his signature initiative, the clean power plant is in limbo.
it's being challenged by west virginia particular and a number of industries. this is the rule that directs states to lower the carbon emissions from their power sector. that will almost certainly not come into being even if the d.c. court approves the plan, the trump administration is unlikely to implement it and can forget about it. they could implement a weaker version of it but it seems likely that the signature initiative a president obama is dead on climate. carol: i think about harold hamm who is well-known when it comes to fracking and oklahoma and elsewhere. i have spent time with him and seeing what they are doing. he has aligned him so what donald trump so what does this mean for the fracking industry, the big oil giants and the big energy players?
matt: if we see a secretary hamm take charge of the department of energy, we could completely change what we thought would be happening in the next few years. this is an industry that has been under pressure from low oil prices. the administration was trying to squeeze down on them and cleanup things like methane omissions and their ability to frack and explore for fossil fuels on federal lands. this is a shot in the arm for the fossil industry. it seems like a president trump will basically implement the agenda of fracking led by harold hamm. oliver: when we look at a big tot -- look at expectations figure out these offhand comments the donald trump has made about climate and energy,
is it clear what he wants to target in terms of regions or specific energy sources? we know about the specifics of what's important to him? matt: we don't, the calculation they were making over the summer was that every barrel of oil produced in the u.s. is a barrel of oil produced overseas and gets imported and that's money out of the pocket of people in texas and oklahoma. this is going to be as robust an administration that has existed for fossil fuels since the bush administration. they might be more in favor of fossil fuels than the george w. bush administration. it calls into question the u.s. commitment to the paris accords on climate. we cannot pull out of that for a number of years but we seem to have ceded the leadership role that was important to present obama in securing and the handing off the regulatory rules.
he set the table with an aggressive climate agenda. his hope was to pass the baton to hillary and it was going to be all she could do to implement those initiatives. now that is all done. like so much else, we really don't know, we realize how much we really don't know about what resident trump intends to do on energy and climate. carol: up next, beyond the u.s. election. the mexico city neighborhood where life revolves around e-waste from america. ♪
carol: this week's issue takes a focus on the u.s. election and what pending before the u.s. supreme court. oliver: we will show you how a neighborhood in mexico revolves around electronic waste from america. carol: the christmasification of hallmark. carol: we are back with the editor in chief. staying with the elections, you guys take a look at what's headed for the supreme court potentially.
ellen: there is a vacancy on the court an appointee by president tromp will be a conservative justice. that will change the balance of the court which is now split 4-4. one of our staff reporter's to cover the supreme court full-time went through the business cases that are likely to be confronted either court and that may be affected by whatever they decide. oliver: there are many cases hanging out there. another important part of the story is how donald trump will implement the policies and you took a magnifying glass to the things he said in the past. : we did and one of the issues is will he have the money to do what he wants to do. that's a big question because he talked about cutting taxes
and seems interested in cutting taxes. do the numbers add up? at the moment, it looks like they won't but he is a flexible guy and we will see how it works out. we spotlighted that. carol: you spent a lot of time on the election but you have other regular features. you take a look at a cigarette maker called american spirit. you guys go into their history but they talk about how they are headed to court. ellen court. -- it's been around for a long time. they always build them selves as the purveyor of natural cigarettes. they say if you have to smoke, we are healthier because we don't have additives and our tobacco is organic. they've managed to go through a lot of the controversies. they have had some very effective marketing. now they are being sued by the government like so many other tobacco companies. they are now owned by a big
tobacco company. that will change the way they are viewed. carol: we have seen this movie before. ellen we have but they have : managed to skip the litigation in the cigarette business. oliver: a story i never heard about that is incredible outside politics is looking at this market that exist in mexico for discarded elect tronic -- discarded electronic equipment. ellen: most of the time, we don't think about what we do when we discard our computers but it's a big issue for tech companies. they have responsibilities in some states to provide an outlet for these used products. these products have a lot of substances in them that are toxic. a lot of them and up in mexico. we go to a neighborhood in mexico where the business is stripping down these computers. they do it with hammers and in the open air sometimes but they do it under very unsanitary conditions. carol: mike smith is the reporter who went to mexico.
>> if you can imagine a city, the fourth-largest city in the world which is mexico city, bigger than new york and there is an entire neighborhood that is basically nothing but piles and piles of old junked electronics. you go in there and every street, you see big piles of junk electronics and people smashing them apart with hammers and carrying them in stacks on their backs, burning stuff to get to the metal inside and ripping stuff out of the inside of these devices. they are trying to get what they can as far as a value out of it and throwing the rest of it in holes of the ground. it's a place where you can smell and hear what it takes to get rid of these things that we use every day.
oliver: that gets to the core of the story, this secondary market that has appeared in this city. why does it end up there? is it part of a disposal area or is it because this is where the secondary market has cropped up and it's become the focal point for this trade? >> it gets there from places in the world that basically don't have any other way to does those -- way to dispose cheaply and economically these devices that we buy every year. these devices are filled with toxic heavy metals with plastics and all kinds of stuff and it's difficult to dispose of them properly and expensive. in the united states, about half of the states in the country have e-waste. they have programs to properly dispose of these things and
recycle but it depends on the price of commodities. that means the metals and things of value you can salvage out of an electronic device have gone down dramatically in the last couple of years. instead of being a profitable business to recycle this stuff, it costs money. all around america, new york, new jersey, california, this has become a costly business to properly dispose of these things. people just cannot afford it or don't want to pay for it. a lot of it is migrating to places in the world where this can be done illegally without controls or proper safeguards for the people doing it or the environment. that's what's happening. this toxic material ends up in places where people are able to do it without taking the proper precautions. carol: the multilayered
controversy that broke apart one of the nation's leading law firms. paul: the reason we are interested in these guys they came from nowhere. they came together with their employees, one of the most feared tort law firms in new york or anywhere in the country. they were fabulously successful in a firm called napoli burns and 1 billions of dollars in settlements and verdict. that resulted in tens of millions of dollars of these for themselves. the cases range from the litigation in the late 1990's over the fen fen diet drug to subsequent litigation more recently over first responders who went to ground zero after 9/11 and came away sick and sued
over that situation. oliver: they had a tendency toward health-care related cases? >> they did a lot of pharmaceutical cases but also cases in other areas. the common theme was a big event or a single product that affected a lot of people and therefore the damages can be large. they are very successful at what they do. they file a lot of lawsuits and have a close personal relationship and one of them gets very sick in 2014, paul napoli, diagnosed with leukemia and that's were things begin to unravel. carol: how do they begin to unravel? >> his partner mark bern who have been more of the front man suddenly was forced into the position of running the firm. he says he found untoward rings that have been going on in the firm, unpaid debts, other financial shenanigans that he was troubled by and that caused him to reorganize the firm. napoli says that while he was on his bed, he was administered last rites but he subsequently
recovered. he says that bern was trying to take over the firm. that led to litigation between the two of them and lead to the mayhem i described in the article. everyone was suing everyone in every direction. carol: up next, overdose antidotes and how one company may be cornering the market. oliver: how instagram tends to ease their users into e-commerce. ♪
carol: welcome back. in the companies and industries section, drug overdose has become the leading cause of accidental death in the united states. oliver: narcan has become necessary for first responders. >> people call it the opioid antidote. it is a treatment when people are overdosing from an opioid. it basically arrest all the effects of the opioid overdose and brings people back. very quickly. oliver: what's the time frame? >> ideally within minutes. it's a little bit variable
depending on the person. carol: it is increasingly being used by law enforcement. >> once upon a time, narcan has been around since 1971. for years, it was something that existed in emergency rooms or with emts and ambulances. in recent years, the opioid epidemic has spread across the country. drug overdoses have passed car accidents in the united states of the leading cause of accidental death. carol: that shocked me. >> now overdoses are happening so much more often with opioids whether its heroine or prescription pain killers that it makes sense to have some form of this around wherever and overdose could be reversed. police officers in particular, there is a crucial window before an ambulance shows up at the
scene. in the past, police officer officers would stand around and could not do anything which is frustrating. now they have narcan of -- on them and they can revive the person. there is the generic and there is the branded, where does the market breakdown? >> i read about this company adapt which has a new product which is a nasal spray which is the first version to get fda approval. it has been on sale in the united states since february. the advantage of having a nasal spray, the generic, was a shot. there is a famous scene in pulp fiction where he has a huge needle. the advantage of a nasal spray is it's easier to use and you don't need medical training. you could be shy around needles
so it's not a problem. adapt as marketing the narcan nasal spray and is only been on the market since february and is already 1/3 of sales in the united states. oliver: how instagram is laying the groundwork for e-commerce. sara: >> instagram has had advertising for more than a year now. it has become very popular. this move is taking it in a different direction. the pictures that people post are aspirational. people are already using instagram to shop in unconventional ways. they are taking screenshots of something they like and saving it for later and sending it to themselves. now instagram is announcing an update that lets people shop directly from posts. brands can tag products the way
users tag their friends in photos. it's going to open up more possibility for instagram. instagram is not really making money off this as of yet but it's something that shows that they are trying other things than facebook would do. carol: you have to figure out how to monetize it. you tell in your story about a meeting they had early this year and they were trying to come up with ideas on how to monetize. this is what they will do but that challenge as you write your story is how to do this without the coming a digital sears catalog. >> one of the biggest problems with a lot of the e-commerce initiatives that have happened on social media busbar is people use social media and they want to see what's happening with their friends and family and the people they care about. i have heard that brands have
explained it's like trying to sell stuff in a bar. somebody comes up and tries to sell you something. that is exactly how e-commerce on social media has done which is not well. people don't like to be sold when they are hanging out. what's interesting about this tactic as we have these designers and engineers and product managers who rented this house in half moon bay on the california coast. they just tried to think, if we were instagram users, how could we find a way to shop without a completely overtaking our feed and we like about the product and make it feel like we are being sold to all the time. yes, people are using instagram already to shop but they are doing it of their own accord. they wanted to implement this product that felt very natural like it was meant to be.
the bloomberg for the next generation of podcasts. lucas gimlet was founded in 2014 : by two guys. alex was a producer at npr. he worked on shows like this american life. matt had also produced radio shows but joined gimlet and the two of them got together and decided that podcasting was a medium of the future and they started by documenting their own efforts to build their company in a podcast called startup which is the most famous one. it's one that is being adapted into a fiction tv show at abc and is just about to enter its fourth season. since then, they have put out half a dozen podcasts and this fall, there are in the midst of releasing their most ambitious slate yet which is maybe five podcasts in total over four or five months. oliver: you point out that roughly 20% of people have listened to podcasts. i'm not one of them so i will play devil's advocate.
when i think of a podcast, i think of someone talking and putting it on youtube but this is more organized. explain what a podcast network is. lucas a network is a : confederation of podcasts they put out. gimlet is based in brooklyn and they have 60 different employees because they raise money last year because some investors really believe in podcasting. they have their own team of producers and writers that put together a bunch of original podcasts and why they are different from other networks is someone just as turbid and sell ads for pot tasks for his by other people but gimlet produces its own podcasts in house. carol: i think about podcasts in general.
take a step back and i think it was serial that got all of our in terms of the power of podcasts. there were millions of downloads and i feel this changed how we look at podcasts. lucas serial was a galvanizing : moment which came out in late 2014 after these guys founded gimlet. it was the most popular podcast at its time, maybe 5 million downloads before the finale of the episode and it inspired a loved the mess -- a lot of investors and people to spark -- to start new companies. a senior executive at 20th century fox decided to leave it to start a podcasting company because he believed in the potential of the medium. you have seen certain individuals really become famous or build a following because of their podcast.
how big is this industry going to get? even though there are good number of people listening to it, there's not that much money in podcasting. oliver: the hallmark channel doubled down, tripled down on its holiday programming. carol: we spoke to the editor. brett christmas officially began : on october 29 and it extends through january 1. that is how long the hallmark channel christmas movie schedule goes. they have been wildly successful with this. they will have 19 new movies just this year alone. carol: every variation of christmas -- they have a formula that seems to work. >> not that many variations, all of these movies are pretty much the same plot. either you're about to fall in love or you are about to discover the true meaning of christmas. while this sounds formulaic and
it is, people like to be home on a saturday night with a box of tissues knowing exactly what they will get. oliver: this appeals to a specific demographic. when you talk about the business aspect, they are doing very well with this. is there any concern or are they confident this will work going forward and they don't need to worry about branching out. >> it's working so well now that they are not concerned about it and they keep adding more movie to the schedule. the movies keep premiering with more and more viewership. that's not really a concern and there are other network should did lifetime free form which used to be abc family and there seems to be an insatiable appetite for these kind of movies. we can have multiple other networks doing the same thing. brexit carol: they have been doing it for 14 years. you've got the hallmark channel
and him got broadcast networks that have multiple channels. do they have to be worried about being mimicked and squeezed out? >> they don't have the ability to do cross-platform content. they don't seem that worried about it. they feel their formula at hallmark channel is better than the other formulas and they can leverage that in different ways from everything from greeting cards to the movies. carol: bloomberg businessweek is available on stands now. i love the election issue and they had to tackle the election outcome from so many different issues and what it will mean in terms of immigration and energy policy and who might he in a donald trump administration and the reporters were scrambling to write the stories and we talked to them as they were writing the stories so i thought that was fulfilling. oliver: also some great photography as well.
carol: what is your favorite story? oliver i will say the american : trash that wound up in mexico because there is an incredible visual of all the garbage. really sues our phones. -- we always lose our phones. i lost my phone four times in the past year and it's ending up in the city of mexico. it's a pretty incredible example of bizarre economy. carol: lots of great stories. more bloomberg television starts right now. ♪
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