Transcripts For BLOOMBERG Bloomberg BusinessWeek 20171007

We are here with editorinchief megan murphy. Lets start with economics and canada. We are tired of malls here but let us talk about a mall that is popular. Megan its a larger story about canada and what is happening with indigenous people. It has been a big issue in terms of giving his group of people, giving the same Economic Opportunities and bringing them up the economic ladder. A policy issue for justin trudeau, the boy wonder of canada and how to develop this. This is an example of something where, largely through this woman who went door to door to door, kim, and redeveloped how this community negotiated its deal with local promises and local governments to redevelop what the community is doing. Now it is a community was almost full employment, a dramatic change from 10 years ago. It is an encouraging story. Julia how did she do it . How did she prove that the community is open for business essentially . Megan she is only 28. That is exactly as what youre talking about, being seen as open for business, being seen as probusiness, encouraging investment, development, relocating the jobs that are sustainable over time. We may be said of malls over here but it attracts people in. That is a virtuous circle. Julia talking about boston for things know what to take across to the cover story this week which is basically about one lawyers crusade against the opioid epidemic. Megan this is a lawyer that crusaded earlier in the last decade, decades ago now, to create the tobacco litigation which ended up in this record settlement, over 250 billion. Still is used to fund antitobacco campaigns. What he is doing is rolling out the same way that he did it again, stitching together various different communities to really take this fight to the opioid industry and really take some of the tactics he used in securing a settlement from tobacco manufacturers and bringing this into what we know is such a project, escalating almost daily crisis in this country. Carol it is a personal story. We have more on this from the reporter. Mike moore played himself. He held the position in the 1990s and the reason why he was in that movie is that he was the architect of this untested legal strategy as at the time to sue Big Tobacco Companies and hold them accountable for a lot about dutch for lying for lying about the risks of nicotine addictions and to help states and cities pay the cost to care for sick smokers. He was the architect behind that new legal strategy that ended federal sleep well it ended in victory in the 50 state 450 billion settlement which is the largest in corporate history. What he is trying to do is to apply that to the opioid epidemic. Carol talk to us about that and specifically he is going after. And where is he in that process . This is really about a war, this is about a war brewing between the states and companies primarily that manufacture opioids. 10 states and dozens of cities and counties have filed lawsuits against Companies Like purdue, johnson and johnson. They are trying to hold them liable, responsible for the opioid epidemic. The lawsuits say that the only way that they could have created the market for opioids where people are being prescribed for chronic back pain and arthritis is that it had to lie about the addiction risks that opioid posed. This crisis is incredibly lethal, killing more than 90 people a day. It has also been incredibly expensive. State governments and local governments are paying billions of dollars each year on things like increased law enforcement, health care, treatment, incarceration. What these suits say is that it is not fair for taxpayers to foot the bill for all that stuff. Who should be accountable are the companies who in essence created this crisis. It is those companies who should pay to clean up the mess we are seeing today. Julia it is not just about the manufacturers of these pills. It is also about the distributors, he is trying to clear this up to get as many people involved in providing these drugs accountable. Right, it is primarily opioid manufacturers targeted right now, but he says that by the time this is done, every Company Related to the epidemic will be sued. So the more states that he can get on board and the more companies that are being sued, the bigger headache it becomes for these companies. It becomes an economic problem. Do we risk going to court and risk fighting each one or do we come to some National Settlement between companies and states . That is of the goal. Mike moore and his allies are preparing to go to trial but the idea is to get a National Settlement like the tobacco era. That would really go towards paying for treatment and prevention education. That is the main goal, to get a lot of money to clean up this mess, to stop the epidemic by really getting addicts treatment and preventing new addicts from being created. Carol imagining his fight against the opioid industry as a cover was the job of the creative director. We managed to get a photo shoot with him. We were not expecting this, but he looks mean and imposing and, i dont know carol like a western wanted. That sound in the background. He is not a mean guy but he certainly has this certainly aggressive presence in the photos. Julia you make the claim as well, opioid avenger. It is personal. It is obviously a huge fight because the Pharma Industry is huge and they have their own massive legal teams. It is like one man against, yet again, these massive corporations. We play to that with the headline opioid avenger. And this photo of him that matches the tone of the headline. Carol it is blackandwhite like a wanted poster. Was that the plan . Not that he was wanted . That was not totally intentional. We had a few versions and color and a few in black and white and it seemed more graphic. Julia up next, the tension building between the white houses top lawyers and how to deal with special counsel Robert Mueller. Carol and what happened in the equifax hack. Julia this is Bloomberg Businessweek. Carol welcome back to Bloomberg Businessweek. Julia you can find us online at businessweek. Com. Carol and on the mobile app. In the finance section, the Bloomberg Technology Team Investigates how the equifax pack unfolded. Julia to what might be the true intentions and here is reporter mike riley. Mike we tried to take what we knew about the timeline which was not very much and add to it i reporting that included people involved in the investigation, and the investigation the u. S. Government is doing. It is clear that the timeline starts in early march. That is when a cybersecurity researcher named zane identified a vulnerability in a widely used software that helps build databases or web applications that connect to databases. He publishes this, he gives the information to apache, which is the company that makes it, and they send it out in early march. Saying this is a really big deal, people should fix it, and they offered a six for it at this point. Almost immediately, and this is the way that hackers work, they pay a lot of attention to this and they start looking around the internet using sophisticated scanners and other methods to find what websites might be vulnerable to it and they get a hit in atlanta, which is one of equifaxs servers. At that point they put in a piece of software which is a backdoor. Even if equifax fixed the vulnerability, which they had not, it would have been too late. And beginning around may and continuing through july, there was a very expensive brief that goes on one of the hackers spend a lot of time where the hackers spend a lot of time analyzing the data inside of equifax, querying them into smaller bits so they can get them out unnoticed. The customized tools so they work better. In other words, they have a lot of time to operate in this network completely undetected and the result is one of the most significant data breaches we have seen in the u. S. Julia the speed at which the hackers identified vulnerability in equifax, and you say it in the story, the hackers handed off to more sophisticated hackers very quickly. What extent do we see statesponsored hacking . And my second question would be equifax did get help. They went to a company to tackle some of the Cyber Security issues. That also did not have the effect they were hoping for. Just explore those 2 issues. Michael to begin with, in terms of who is behind the hack, one of the places where attribution for Something Like this is typically difficult, but it is even more difficult in this case because the hackers did not go into what is called the enterprise network, the thing that controls in your desktop or the laptop. They basically stayed in the zone where websites are connected to the databases. They used easily available but pretty sophisticated tools. Again, they tweaked some of the tools so they worked better. There are signs of a Sophisticated Group at work. One of those is that the initial hackers who got in and found the vulnerability were having some problems in terms of their ability to get through firewalls and twitter had the databases. And to effect the databases. At some point, the data shows a significantly more advanced group gives access and starts with much greater success. And that is not a smoking gun for a nationstate but it is certainly one of the indicators that a nationstate might be involved. Julia and the politics section, the Russian Investigation is causing the pressure investigation is causing conflict in the white house. Carol two lawyers cannot seem to agree on how to comply with requests from Robert Mueller. Julia we talked to our editor. Our lead this week is a look inside the White House Office and the fight that is brewing and has been for months now between white House Counsel Donald Mcgann who represents the office of the presidency and ty cobbs was brought in to handle the Robert Mueller investigation. These are the two guys in charge of defending the president from the Russian Investigation and they are at each others throats about how much to share and how quickly to go. And that is really the heart of the piece we are doing this week. Julia cobbs said we would have this wrapped up by christmas. Donald victim seems more reticent. Why would he be reticent . What does he know . Is not so much what he knows, but it is how much he might be exposed personally. Mcgann as a front row seat, he was the lawyer on the campaign, he was brought in on the transition, he was brought in and he was present for the transition from a day one, she has had a front row seat for a lot of things that mueller is interested in. One the Michael Flynn situation, the firing of james comey. He is exposed in a way that ty cobbs is not. He will probably be a key witness for Robert Mueller. He will be a witness. Mcgann needs to be careful with how quickly they go. The heart of the tension is that cobb wants to be as quick as possible while mcgann has a lot of other considerations to weigh, including setting some sort of precedent that conflicts future white houses but also the future of this presidency as well. Carol matt, lets talk about that a little bit because you dig into attorneyclient privilege. You give us a History Lesson to remind us it does not always hold between a president and his counsel. Matt that is right. In a normal situation, Donald Mcgann would have at his disposal two Legal Protections that allow him to claim confidentiality for dealings. One, executive privilege that the white house extends around these kinds of conversations and your basic attorneyclient privilege. But because of the last two big white house investigations, namely watergate and whitewater, rulings were set that allow investigators to reach into the white house and grab as evidence things that would normally be hidden. So mcgann, because of the failures of the Nixon Administration and the failures of the Clinton Administration to protect these things, is exposed in a way that he would not otherwise be. So he needs to tread very carefully. Carol up next, how apple is fighting a socalled qualcomm attack. Julia video visiting between prisoners and their families. Carol this is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. Carol you can also listen to us on radio on sirius fm channel 119 on am 11 300 in new york, and 1061 fm in boston. And a. M. 960 in the bay area. Julia and in london on dba mux 3 and in asia on the Bloomberg Radio plus app. In the features section, the battle between apple and qualcomm. Carol the fight is around a Key Technology in the iphone, the cellular modem. Julia here is our reporter. Max the way that we are able to watch movies online, the way that you are able to talk on your phone, it all goes through a baseband processor, also known as a modem. Qualcomm makes of those, it is one of Six Companies that does, it is probably the most successful. It owns the technology and oversees the giant of patents that is needed to move data through the air. They have made it central to their identity. There is this thing called the patent wall. It has hundreds of them. In total, qualcomm has 130,000 of patents. From qualcomms point, this is a testament to research. This is one of the few Big American Companies that is doing a ton of fundamental research into the wireless industry. They spend about billion a year basically on Wireless Research alone. Come and they do it inhouse, so it is theirs. Max it is theirs, but the way it works with cell phones is want to invent something and it gets into the wireless standards, 3g, the next thing, probably 5g. If your patents go in there, you basically a great to give it away to everyone at a set price. And so a lot of qualcomms patents or standard essential, meaning that any cell phone manufacturer can license them. And the licensing is set and the prices are high. Carol it is 30. Max it is a fixed royalty of the price of the phone. Carol a percentage of the phone . Max it can be up to as we understand 5 of the price of the phone. If you buy a 650 phone, which would not be that expensive, qualcomm might get 30 out of that. And that is before the price of the modem. Carol apple and samsung are working together against qualcomm . Max that is the allegation. This lawsuit and we talk about it in the story contains an explosive allegation, which is that qualcomm believes that apple and samsung sort of conspired to get the south korean regulatory body to fine qualcomm and put an end to the qualcomm tax as it is known. Basically, both Companies Deny this and it is hard to go but qualcomm believes that apple has gone around the world trying to get regulators to crack down on qualcomm. Qualcomm is not sure that it has happened but regulators have indeed been cracking down. Carol are they allowed to do that . Is that something they can do because i thought they had to back off . Max that is part of the way that qualcomm basically gave these better deals is that it said to these cell phone carriers, look, you pay us a little bit less but you agree not to challenge our patents. What qualcomm alleges happens is that at a conference in idaho in the summer, which is all likelihood the sun valley conference, two Senior Executives at apple and samsung talked it out and came out with a plan to have the regulatory body call apple as a witness. Once apple is called as a witness, they can say whatever they want. And so they were allowed to testify. But what basically, what qualcomm alleges is that once they show up in south korea, they misled regulators. That caused qualcomm to promptly cancel the sweetheart deals which caused apple to sue and here we are. Carol in the technology section, video visiting is a lucrative business for prison phone companies. Julia but the benefit might not be so great for prisoners and their families. Let us start by talking about Barbara Hughes and the fact that she drove three hours to visit her son in jail but never saw him. For the first nine months or so of 2016, barbaras son was in jail across state lines. She would drive back and forth between illinois. While she was allowed one, free, in person, 20 minute visiting session with her son per week, inperson is sort of a relative term here because the jail had abolished actual face to face visiting hours. You could only sort of visit electronically via video screen. Julia you said free . 20 minutes free . That is another big part of this story. About 650 other jails in the country, mostly county jails, that have started introducing video visiting, or a video screen visiting, which can be done remotely. More than three quarters of these facilities unfortunately for many of the friends and loved ones of inmates, have eliminated in person fully face to face visiting entirely. And the companies that they have contracted out to set up the video visiting systems, they get to more or less right the terms of how these visits were to have been able to extract significant profits from that. Carol why our prisons doing this . As you said, more and more prisons are doing this. Why . Partly so that they can automate the process. Even contracting out to a thirdparty, that gives them more budget flexibility. It means they do not have to deal with administering the visits themselves, which some arguments means that it makes it harder for friends and loved ones to smuggle in contraband to prisoners. But critics, prisoners rights advocates would charge that it is making it easier for private companies to profit off of for the most part people earning less than 12,000 a year. Carol one company in particular seems to dominate. You talk about it in the story. The reporter victoria and the editor focused largely on securus, which controls about a third of this emerging market and has been sort of a bete noir for prisoners rights advocates for years. Julie the states that made modi could break camp. Julia and schools ask, where is the money . Julia this is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. Carol still ahead in this issue, catalonias Movement Towards independence. Carol and why one of the most prestigious schools in america finds itself struggling to raise money. Julia all of that ahead on Bloomberg Businessweek. Julia we are back with editorinchief megan murphy and we are focusing on the politics section. And the region of india that made Prime Minister modi famous as a reformist. Things are slightly different now that he is at the helm of the country. Megan this is indias westernmost state and is where he comes from and where his sort of probusiness agenda really took off and really solidified his rise to the top of indian politics. And now it is quite different in terms of, still Economic Growth but not as fast as it was. People complaining about the National Sales tax that has been put in. Modi faces a lot of controversy for taking back a lot of indian currency in a bid to take those bills back and whether the country was ready for that as well. And this state actually is emblematic of those challenges he faces on the economic front about maintaining growth, maintaining indias probusiness stance. A lot of protests in cracking down on people marching in favor of the opposing party. That is what is going to be interesting to see. It is not that they are going to lose their grip, but it is emblematic of the broader challenges he faces in india right now. Carol there is an election coming up, the big National Election in a couple of years, but there is another election. Is this going to be a political liability for him or a litmus test to see how much pushback he will get . Megan a litmus test is a good word for it, to see where things stand. His party is expected to maintain their hold on this state, but again, when you go from 7. 9 annual growth rate, to 5. 6 , that sounds great, but a dramatic slowdown in where things are going. The broader question of india, the reason it has been so successful in maintaining, the recent Economic Growth has been so strong is it has been able to take lower skilled workers and upskill them. Attract foreign business. Take the lowest learning component of society and move them up the ladder. But that growth needs to be brought back. It needs to continue to attract foreign investment. It needs to focus on further upskilling the population. For the lessening that huge a divide between the highly skilled a lower skilled and that is the challenge that he faces. If you correct for the lowest hanging fruit, that is the next hurdle of the Economic Growth. Julia part of it is the decentralized power structure. You can be operating at a regional level and you become the Prime Minister of our country and you cannot control the guy who is beneath you. What are they saying about the policy changes that he is making at the top level and whether he has forgotten them in a sense . Because this is a big manufacturing exporting region. As you said, with the currency to the bounce, it really hit them hard. Megan it hit them hard and the sales tax hit the mark. The thing that is interesting, we forget in america how different the system is and how incredibly localized and regionalized it was and is and how these factions can develop and how it changes from state to state to state. On the ground, people are upset they have not seen the same kind of growth and they do not see the resurgence that they did. This is supposed to be the model. It is interesting to see. I think india is fascinating because it was such a different era in terms of when he rose to power and now we are caught up in this populism, this surge in western democracies, and that almost seems of a different era, how he rose up in this platform and how striking it was in india when he came. I think most people know that the longer term structure is a good one for india. It has done relatively well. Changing the economy and the workforce for the new kind of economy we are in. Carol also in the magazine this week is a look at catalonias unofficial vote to secede from spain. Julia we talked about what it could mean for spain and the euro zone. The Global Crisis shook spain deeply. The unemployment in catalonia was 24 . They had to cut back services. Catalonia is a net contributor to the government of the country as a whole. And that hurt. It always hurts but it hurts more when you are having to cut back at home. I think that force has not gone away. Even though things have gotten better since then, it affected catalonia in an enduring way. Carol it is not dissimilar from german the european union. Are they right in their feeling . Mathematically, they are certainly right. Like i said, connecticut is a net contributor to the united states, but connecticut is not trying to secede. Connecticut does not have a separate language. Catalonia does. It has its own tradition, architecture. You can see the pride. And they have a long history of tension with madrid. September 11, it means something very different in spain, in catalonia from what it means in the u. S. It is a national day and it commemorates when barcelona fell in the war of spanish secession. In the 20th century, Francisco Francos fascist forces conquered barcelonas Republican Forces in 1939. And then as recently as 2010, the Constitutional Court of spain revoked some of a legislative deal of that intended to increase the autonomy of catalonia. So this is just a repeated history with them of give and give and get, give and get. So you combine the ethnic and cultural pride and desire for autonomy and it is a potent combination. Julia the government, they have an existing government that they believe would work independently. Pride is a perfect word in this case. I think what happened is that spain really made a huge mistake. Rajoy coming in, the heavy hand, thinking he could suppress this legally. It backfired because it engendered more nationalism in catalonia. Julia go back to 2014, because i was there for that unofficial referendum. The secretary did not get a vote. They simply did not. They cannot leave in the constitution, it is not allowed, but the Central Government reacted differently and they did not get the separatist vote. Fast forward to what we saw last weekend, and yes, it was messy because they prevented people from voting, but according to the catalonia government, 90 of people voted to separate here. A strong response from the Central Government in spain brought up the pride in that people who might not have voted to separate actually did. The 90 , that is misleading, the 90 obeyed the government and stayed away from the polls. Carol only about half voted. The significant number, if the catalonia government is correct, over 2 Million People voted to secede in the face of strong opposition from the spanish government. That means something. That is very telling. An economist i spoke to in a piece a few years ago, likened it to a marriage. Lets say the wife says she wants a divorce. That can be an opening and the husband can try to win her back by doing the dishes, whatever. Carol picking up clothes. Julia doing the laundry. Is instead the husband reacts by disparaging the wife and says you cannot make it on your own and you do not have a transform it, he is going to drive for away. Carol we turned the catalonia vote into a cover image. Julia the cover focuses on the battle between the catalonian and the spanish government. And the 2 flags you have chosen main so much to me. This is an image that we found. You see both but one is torn up. Julia what were you trying to illustrate with this divide . I think part of it is that we look at a lot of photos and people have seen a lot coming out of catalonia. Protesters and Police Officers and people waving flags. We wanted to find something that felt able original. We thought that not only putting the image of the flag but that had been torn up get the attention and aggression that has been happening there. Carol up next, while the drama in spain made headlines this week. Julia there may be a bigger story unfolding in europe. This is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. Carol you can also find us online at businessweek. Com. Julia and on the mobile app. We go beyond the headlines on catalonia and brexit to what may be another potential crisis on the continent. Carol john says that this brewing storm might be driven by a combination of anger and shortterm political maneuvering. John this is a week where catalonia is at the front of everybodys minds and in britain we have all of the pleasures of the tory conference. There is Something Else happening in europe and it has some of the same mixture of brexit. If you think back to brexit, back then when David Cameron called the referendum, most people, especially businesspeople, thought this will be ok. Most people see the economic logic in remaining a part of europe. But a variety of things went wrong with that. There were people who felt very differently about globalization and immigration then Business Leaders it did. There were shortterm political decisions that cause problems. Angela merkel, i think she regrets not giving David Cameron a little bit more to bring back to voters. You apply that logic to Eastern Europe and you see something similar emerging. You have now got two authoritarians and their views of the western leaders in poland and in hungary. And you have the prospect of another authoritarian, perhaps unfairly being labeled that way, Andrea Babich being elected in the Czech Republic next month. All of these people are to some extent in opposition to europe, especially over migration, and they are getting increasingly bellicose. What is interesting is that western european leaders, particularly emmanuel marcon, they do not mind having a go at them as well. Carol how popular are these political candidates in poland and the Czech Republic . John one thing about populists is that they do tend to be popular. If you go to budapest at the moment, you will discover that the opposition has got fairly large posters trying to make the leader look like a string of gangsters with the inference that he is surrounded by businesspeople and corruption. Pretty much everybody expects him to win the election next year. Go to the Czech Republic and babich has had arguments with other members of the Coalition Government that they used to be a part of. Everyone express of this man, who is a billionaire, the second richest man in the Czech Republic, to go through. Meanwhile, in poland, there is a regime led by a man who is not not actually either president or Prime Minister but pulls the strings. Once again, the ruling party is very popular, no matter what he says about europe, to a large extent because of what he says about europe. Julia what do we know about the more deeply about babich in the Czech Republic . You have called him trumpian in terms of his background. What does he bring to the table and what are the risks that he gets lumped in with the polish leader . John that is a very perceptive question because there is that risk. Babich is trumpian in that his main thing is to say that he does not want more arabic immigrants coming in he would rather send them back. And he goes on about his ability to apply methods that worked in his visits to politics. I tend to see him as less off then somebody who is an out and out right winger than somebody who rightly or wrongly thinks that he can apply business skills to these things. He tends to fume about erstwhile Coalition Members during cabinet meetings. He wants to get a move on. He is a subtler figure, certainly than what is going on in poland. In poland, it is a more reactionary thing where people are complaining about democratic rights being trampled on. But he is very firmly imposed to deeper integration inside the european union. He says that macron should sort out his problems in france first. There is built up tension within him and the rest of europe. Carol up next, paying it forward at the best school on the globe. Julia the brains of the next generation of lamborghini. Carol this is Bloomberg Businessweek. Carol welcome back to Bloomberg Businessweek. Julia you can also listen to us on the radio on sirius fm channel 119 and on a. M. 11 30 in new york, and 1061 fm in boston. In washington, d. C. , and a. M. 960 in the bay area. Carol and in london dab mux 3 and in asia on the Bloomberg Radio plus app. A lengthy list of powerful alums. Julia nobel prize winners, and billionaires. Carol but despite producing successful students, raising money might be something that they fail at. It is the hardest one to get into and for decades has been the most competitive, both on getting and once you are in the inside, 3 of the test takers, who are mostly eight graders and some ninth graders compete and once they get in for just a few spots, about 800 kids per grade. Also get inside, another what race starts. The test is in english and math test, and when they get in, it is a grade grubbing test. Julia you talk about being 30,000 students a year winding up and waiting to go in for the entrance exams. 24 go to ivy leagues. They produce oscar winners and Silicon Valley stars. In my mind, i think the endowment of the school must be overflowing with all of the money from these donors. And yet it is not. Why . This is the interesting thing. You would think that a school with thousands of students, kids on an upward trajectory, some of them immigrants, children of immigrants would be lining up to give money. It turns out they do not. Some other private schools have billiondollar endowments. As some state schools have in the tens of millions. At best, iversen has 2. 5 million through Alumni Association groups. The problem is the competition that started in school continues after they graduate. In some cases, you have three groups competing to raise money. Carol the head of research and development at lamborghini. Julia we spoke with anna elliott about why he is considered such a game changer in the industry. Hannah he is credited with basically taking lamborghini from kind of a sleepy italian, exotic manufacturer, wellknown brand, but giving them broader appeal. He is the head of r d. He has developed several key things that have made lamborghini a modern company. We all the lamborghini from back in the day when they had these bullish cars that were loud and raw. He has moved it into the 21st century. Julia give a sense of the increase in business he has generated. Hannah he came to prominence when he first started in 2011 and since then has created the hurricane and his current project will double production volume. We have gone from 3000 to 4000 and it will double. Carol i love the suv and lamborghini and these highend automakers making them. Go back to something you said. There are a couple of things that he did at lamborghini that really made a difference at the company. Hannah that was the first car that had a body made from one piece of carbon fiber. That was important because it made the car so much lighter. Which helps performance and efficiency and that became a platform for where we have gone with the hurrican and the suv. All of this is going in the same direction and he has been at the forefront of that. Julia talk about the inspiration for this because you mentioned snakes and sharks. [laughter] hannah what i really like about him is that he is someone who lives in the world and loves life and appreciates all components of life. A lot of times with these car executives, they are very singleminded. They are in these blinders to the world. He is different. He takes inspiration from everywhere. He is an avid skier, he loves music and wine. When you talk to him, he really engages. You can see from his drawings and from the development that he is really pulling from the world. He is so engaged. Julia you call him this mechanical wizard but at the same time there is this explosion of creativity. You are lighting up when you talk about him. Hannah he is really fun to talk about. He wants to do what is doing with students. He is working at m. I. T. And in seattle with r d students, pulling on crazy components from nature to develop things that he will say we are going to do in 100 years. He is already thinking that far ahead. Carol talk about the future because everybody is moving to, you see more and more electric vehicles. What does he think about the future of the Auto Industry . Hannah he is thinking about it constantly and if you ask him, he will say there will always be cars that people want to drive. The big hot topic right now is Economic Driving and he says that there will be a component but he does believe that there will always be a place for cars that are drivable. What he is really excited about is this nanotechnology and that gets back to the Carbon Fibers that he developed. He is developing for carbon fiber components that can heal themselves, quote unquote heal themselves. We are talking about if you get edit accident, it can close over it self. They are working on it. He is right in the mix. He is working with students at m. I. T. And boeing in seattle. Carol Bloomberg Businessweek is available on newsstands now. Julia and on the mobile app. What was your favorite story . Carol the domestic cover story, talked about what is going on in the opioid problem. What is a looks at is one lawyer who led the way, a group effort and going after the Tobacco Industry that led to the massive settlement. He is trying to do the same thing, going after pharmaceutical companies and distributors involved in the opioid industry. It is a professional pursuits and also a personal story and we will see how the outcome of the litigation that is pending. How about you . Julia he is a hero. The first story that is a must read is catalonia. Talking about how did we get here and why the tensions . And for me, the history. Also equifax, getting into the details of who are the hackers, who are the sophisticated guys that got involved and not just why did they not get caught but why has the data not come to light . More Bloomberg Television starts now. Who knew that phones would start doing everything . Entertaining us, getting us back on track, and finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing xfinity mobile. 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