Transcripts For BLOOMBERG Bloomberg BusinessWeek 20171118

Chief megan murphy. Lets begin with the european cover story. Perhaps the safest women in european politics right now because no one wants to replace her and they dont know the replacer with, theresa may. Megan this is the story that keeps on giving. You really do have some sympathy for the woman who has not only faced an extreme series of internal political challenges, including sexualharassment scandal in parliament, ministers leaving, but also overshadowing all of this is not only her own inability to lurch from crisis to crisis to crisis, but this fixed timetable on brexit and all the challenges they face over that in terms of securing a deal with the eu that is refusing to budge on so many issues about single market, timing, compensation. It is the worst of all worlds for her right now. Julia some people dont have sympathy. Why did you cause an election . Why did you squander the lead you had over that period when you went into this election . Some of the comparisons are john major in 1997 and the catastrophic loss we saw in that election. Megan you and i are both british citizens and watching it has an unbelievable to watch. When she first called the election, it is hard for us to go back to where we were. People thought she was going to win an overwhelming majority. She was revealed to be a spectacularly incapable candidate. She had no real candidate. She seemed to be robotic which gave her the nickname maybot. Very different to john major in terms of how he has emerged as a man of the people. She has proven herself to be unable to really get in the consciousness of the british voter. Every time she turns to her same, wornout phrases of taking britain forward, forward together, and the thing people dont spend enough time talking about is theresa may was a remainer. She was a remainer, the leading voice on the remain campaign. What i have found athlete and perplexing is to be this full throated advocate for brexit is not how she felt, is not which he ran on. The british people simply do not believe her and a lot of what she is saying about the benefits that brexit will bring. We have to look at the u. K. The economy is starting to suffer. It is growing at a slower rate than european rivals. The pound is getting weaker. Inflation is hitting home on food prices. People look forward to brexit, lack of a plan, how they are going to remain investment, let alone attracted businesses active britain. Julia from a manmade or woman made crisis, the impact of Hurricane Harvey in houston and to what extent that was a natural catastrophe and contributed by the actions of man or woman. Megan this is our domestic cover. This story is powerful and deeply reported. We are so proud to publish it because it looks at you look at Hurricane Harvey versus katrina and new orleans, there has been so much talk about how the response was very prepared, planned, we perhaps saved many lives and how immediate the planning was. Forcing people to evacuate as floodwaters rose. But there was an area around houston that was intentionally flooded where a reservoir they were concerned when flood and cause immense distraction was actually intentionally flooded in the waters released. It was a relatively wealthy area. This goes into the detail of what happened to those people, their homes, their lives and was it the right choice to make for everyone and where do we go from here. Planned, we perhaps saved many lives and how immediate the planning was. Forcing people to evacuate as floodwaters rose. But there was an area around houston that was intentionally flooded where a reservoir they were concerned when flood and cause immense distraction was actually intentionally flooded in the waters released. It was a relatively wealthy area. This goes into the detail of what happened to those people, their homes, their lives and was it the right choice to make for everyone and where do we go from here. Julia the legal consequences. Here is shannon sims with that story. Shannon a lot of people think harvey was just a hurricane, it rained in the water subsided. Large portions of houston had a secondary disaster happened to them. That is the federal government had two reservoirs blocking the water from west houston and central houston from flooding even more catastrophically than it did. However, the water was so immense. 51 inches fell across houston. 60 normally falls in the year. The army corps of engineers had to make a tough call in opening the floodgates and actually flood neighborhoods near the floodgates, including my parents neighborhood. The results are thousands of homes flooded, and as a result the litigation is beginning now. That is the next chapter of the story. Julia they sacrificed a piece of houston to save everyone else. Or seemingly . Shannon i would say factually. It is a tough call to make. It is a disaster and nobody really knows the right thing. It is unprecedented. The potential damage the Houston Chronicle ran a chilling article about a week afterwards and that if the reservoir walls had broken, it wouldve left west houston with corpses by the miles or Something Like that. we were talking about the risks were huge, totally unprecedented. It was a tough call. Now it is going into litigation to see exactly what happens after you make a tough call. Julia talk about some of the individuals and families involved. Angie and josh moore, a couple with a child in the area. Shannon a lot of people my family is from there. We are used to hurricanes. Nobody was freaking out. This was different because we did not know they would open the reservoir gates. Julia they open them in the middle of the night when everyone was sleeping. They said they would do it later in the day they made a snap decision earlier and got slammed. Shannon when i spoke with residents, that is what a lot of them were upset about. They did not have enough warning. Angie, for example, told her Wedding Dress was ruined. All these things you dont think of because you would never imagine your home with six feet of water in it. Julia some people said they could tell he was a difference in the water coming in versus the water that was coming down, rainfall versus the water released from the dam. Shannon the water released from the dams have been accumulated in the dams and then was released into buffalo bayou, a stinky bayou and the best of days. That funk was overflowing into peopleshomes. Julia they could tell a difference. Shannon it was mixing with sewage, whatever chemicals people have in their garages that were now flooding out. Julia what keeps these homes from flooding anyway if the dams had not been released . Shannon that is exactly what a lot of the litigation is about. This is an unprecedented rainfall. How did we know who was going to flood . Julia the biggest one in 100 years or more. Shannon we only have so many forms of guidance. These homes should flood once every 500 years, for a 1 chance of flooding every year. With climate change, more severe storms julia what about insurance in this case. I was shocked at how few people actually had Home Insurance protection. Shannon from the outside, have the do not have insurance . You live in houston, you have hurricanes all the time. But this area never flooded. Keep paying hundreds and hundreds of dollars for 30 years in your home never floods and you wonder why you havent. Julia lets go to the litigation. There are similarities between this and katrina in new orleans. You have a government willing to sacrifice the federal government releasing the dams, sacrificing property. Legally is this Eminent Domain . What is the legal or the law behind this . Shannon what happened in katrina is that the government was not maintaining their infrastructure properly. This is not the case. The government was maintaining infrastructure properly, they will argue they were using the effort structure properly. Do they take the lands away echo away . This is the legal argument. Thehe consultation, in fifth amendment, there is a clause that says the government cannot take your property. If they do they have to pay you back. Whether this was the right call or the wrong call, it was an extreme situation. On the cover of Bloomberg Businessweek. The United States has had more than its fair share of natural catastrophes this year. Never more so the flooding we saw in houston. This week we turn the spotlight on the u. S. Cover, a different angle in this story. We report when it first happens. We were shooting some of the scenes, which were incredible. Something i wasnt aware of was u. S. Of the flooding, the government making the decision to flood certain areas to save others. Powerful quotes on the front cover. This actually gave me goosebumps. This is one of the people affected by this, putting it in the story same this isnt an act of god, this is an act of man. The flooding in certain neighborhoods was an act of man. The Health Insurance company that sees opportunity in the uncertainty surrounding obamacare. And the fight over who gets to mine your data and sell it to your boss. This is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. You can find us online at businessweek. Com, and our mobile app. In the features section, Health Insurance Company Centene is taking its carefully crafted Business Plan national. That could mean fewer choices for customers. Carol it is a public the health company. If you look at the stock, it has shot up this year. It is helping out the folks in georgia when is coming to Health Insurance. Brian they go back to 1984 when it was founded in the basement of a hospital in milwaukee. In 1996, the ceo came in. He had 40 million in revenue, 40,000 customers and a couple of counties in wisconsin and part of one in indiana. Now its over 40 billion in revenue. They are doing quite well, but they are not terribly wellknown in part because when they sell their medicaid and their obamacare plans in various states, they frequently sell them by different brands. For instance, in georgia it is ambetter. That is how most customers recognize them. Julia explain why centene can get into these marketplaces an offer options to people when others cant do it anymore. Bryan centene has been doing this for a long time. Centene is a longtime provider of primarily medicaid coverage. When you are offering medicaid coverage, you dont have the luxury of saying, our population is really thick. We will just raise premiums or raise copays or deductibles. They dont have those. You are at the mercy of the federal and state governments. You really need to focus on how much your population costs. They have been focused on this for a long time. They have gotten really good at keeping those costs down. Carol what is fascinating is you put this statistic. 5 can account for 50 of the cost. Centene is collecting a lot of data to understand the population they are ensuring and trying to make sure they are doing health care or suggesting health care to their subscribers before they get really sick. Bryan thats right. They use publicly available data and our own claims data to figure out who are the people who have small problems that could quickly become big problems, expensive problems for centene. Then they focus on these people. They have algorithms that churn through data every 24 hours. A Software Program delivers a patient to do list to one of centenes 3000 case managers for these particular people. The case manager says i see this small problem could get big. They reach out to the people and say, you need to go to the doctor, take your meds, do a and b and helps of heading off major surgery or major problems with their heart, kidneys, etc. Julia a look at some of the Smaller Technology companies that have been feeding up the information we put on social networks and the fight that is brewing over the control of that data. We speak to drake bennett. Drake hiq is a take data and crunch it to make these predictions about peoples behavior. Linkedin data. The vast majority of data they use is linkedin data. Linkedin is the only game in town for this kind of workplace information. Linkedin is saying they sent them a ceaseanddesist letter in may saying you cant do this. You are not allowed to use our data. Stop visiting our website and copying the data, which wouldve been going out of business. They have sued. The argument is this is public data. Im on linkedin. You can decide the information, do it is available to, how widely it is disseminated. Hiq is only taking the most public data. If you selectively say this person can see this and this person cant, it is like putting a billboard on your office and saying you cant look at this billboard. Linkedins response is its on our servers and you are trespassing by coming in a copying it. More fundamentally, this is the kind of thing our members might not be comparable with. You are basically using this information to discover things about them they might not want their employers to know. It is kind of incumbent on us to prevent you from doing it. Julia people can make that information private. It defeats the purpose of linkedin, but there is a choice. This is part of the issue. Hiq says if they dont want to be delving into the stuff, they can julia control it. But that cuts to the big issue of whether is a legal battle. It is about speech and competition on the internet. It has attracted some pretty big legal names to have views on the subject. Lawrence tribe, a constitutional scholar, is arguing for hiq. His interest is he sees it as a free speech issue. When youre talking about public data and who gets control, and especially in an environment we have a smaller and smaller number of the companies controlling the collection and analysis of that data, he is uncomfortable with there being more restrictions put on who gets to do stuff with the information. Julia up next, the company the pentagon uses to stop cyberattacks from spreading. This is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. Im julia chatterley. You can listen on the radio at sirius xm channel 119, 106. 1 in boston, am 960 in the bay area. In london on mux 3, and in asia on the Bloomberg Radio plus app. They may not be the biggest Cybersecurity Firm in the market, but it is the pentagons favorite. I spoke to the ceo, nate fick. Nate endgame builds a protection platform. We protect customers data from attack by preventing breaches on the endpoint and by detecting and responding to breaches and automating the hunt for attackers that may already be inside our customers networks. Julia how do you stop it spreading . Nate there is an enormous amount of math behind it. Algorithms involved in the detection process. This is a credit market. We have to put a lot of emphasis on independent thirdparty validation. Not us saying how good our stuff is, but others who are seen as credible and independent verifiers in a market where there are Many Companies claiming to be the same thing. Julia what about your model making you different . Hackers change. They know he were on to them and they learn and do Something Different and they adapt. Can you adapt quick enough for the changes that hackers make in order to attack something slightly differently . Nate that is the key. The cybersecurity. This is not a machine to machine problem. It is people on people. You put your finger right on it. We started by taking the best attackers from places like the nsa and the air force and other parts of the government and gathered them together and said, ok, lets built the defense you never wanted to run into when you are on the attacker side. We have to continually replenish that talent with people who are uptodate on the latest hacker techniques and procedures from around the world. And then marry them up to people who built and shipped scalable enterprise software, and then a University Math department of data scientists. Julia the problem is the person operating this, while trying to work out what went wrong equifax was a great system. One unnamed person did not do an i. T. Update. How you make the application of this search in the end indication of a hack simple to operate . Nate that is one of the hallmarks we do, build a product that is incredibly easy to use. We cut our teeth in the u. S. Government where our endusers are often operating under pressure. They are pretty young generally. They might be changing jobs every 18 to 24 months. They are incredible capable but operating under difficult conditions. The central challenge for us was building a product that is easy to use. That needs a user interface that is intuitive and simple, and some other innovations. We have an ai powered chatbots, a natural language chatbots that allows very junior analysts to use natural language in order to stop very advanced attacks. Julia make that simple for me. If i say to the system, find exploited software and shut it down, would react to that . Nate it would do exactly that. Julia is that unique to your system . You have big competitors out there. Nate we have many large and wellfunded competitors. Introducing that natural language interface to our product is unique. We are the first and so far the only wants to do it. Julia talk to me about this sphere. We have seen a lot of headlines written about the breaches at the nsa and the shadow brokers and the comments they have made effectively auctioning off the information they allegedly hacked and stolen from the nsa. With the you think when you look at this . With you think is going on . Nate we all live in a world where it is increasingly hard to keep secrets. There are secrets that for reasons of National Security are very much worth keeping, but technology is going to make it harder and harder to keep those secrets. The shadow brokers attacks and other attacks over the last year have ushered in a new era in cyberspace security were now we all live in a world, all of us individuals, all of us as companies, live in a world where Cyber Weapons that were developed with nationstate resources have been released into the wild. It is as if there are a million boomerangs spinning and all coming back, we just dont know when or where. Julia how californias housing policy is holding back its climate policy. And what is next for zimbabwe after its military seizes power. This is Bloomberg Businessweek. Still ahead in this weeks issue, sim bob way after mu gabi. And the best Business Schools for lending the highestpaid jobs. All that still to, Bloomberg Businessweek. Lindsey moore must reads in the magazine that plenty more must reads in the magazine this week. Were talking about the climate. As someone who used to live in San Francisco, this is on the knock on effect of housing prices in california. Its a state that is really grappling with that. Furthere are pushed out and further in the main metro area, los angeles, San Francisco, and have these extraordinarily long commutes, they can afford to rent or buy a home, that is causing the climate problems because people are driving their cars for their gas prices remaining low. You are seeing their having a direct effect. Housing affordability in these metro areas whether it is in San Francisco or from l. A. , a bigger inspection of tech and more wealth pouring into that city, people who have middleclass workingclass jobs can no longer for to live in those areas. The anyway many of them can get a high density commuter, either that is shared commuting or train travel is not there. We see this problem where them nota are seeing dropped because they need to drop. Some of the numbers are quite shocking. 635 thousand people commute 90 plus minutes or more in 2015. That is a 40 jump in five years. It is so normal there, too. It is normal to look at these epic commutes and spend is many as three or four hours in their car every day to get to these places. To really address how people are going to move. Throughout uncommon where people have jobs, affordable houses to support them. Its not whether or not you could afford to own a home, its whether or not you can afford to rent a home. Jerry brown has been one of the fiercest advocates to really change this. Its this interesting fact that we dont connect sometimes. Building enough houses or numbers on this as well. 100,000 being built. This is an increasingly painful problem. Whether or not it is going to be tax reform, that is politically on popular right now, the transfer of wealth and housing manufacturing sector. Julia from the california climate to this story that opens up the magazine, what is going on in zimbabwe. It looks like the end of power, military power taking control. Placing him under house arrest. We are seeing what seems like a dramatic shift in terms of who is going to be in charge of the government. Julia lets take a step back and set the scene. President mugabe has been dominant in the political scene in zimbabwe since 1980. He is 93 years old. We cannot underestimate the power and influence this man has had for decades. Megan 37 years of rule, many people in zimbabwe only associate him with. You are exactly right, and there are so many people who have fought the extreme decimation of that economy, hyperinflation we have never seen, becoming an international pariah, watching his people starve in front of him, what was once a breadbasket of africa, thought he would be forced out at some point. He has proven his resiliency. This is a part of a wider political machinations. He has essentially anointed his wife as his successor, the leader of the youth faction and that has caused tremendous consternation with both his rivals and his fiercest rival, supported by the military which has now rolled tanks into the streets this week. Julia are we calling this a coup . It is very difficult to see what is going on. The military suggests that they are tackling corruption and corrupt individuals surrounding the president , but as you pointed out according to the south african president the is we do see the mugabe under house arrest at this point. Megan they are not calling you calling it a coup. There is no question that what we are seeing right now was a transition of power. It looks like as we speak at this time. What this piece is so elegant in describing is do not mistake this for a popular political uprising where people are forcing the transition themselves. This is part of a political machinations and who eventually picks up the role of leader in zimbabwe. It is not as if this was forced by the will of the people. This is not a country that has democracy, Democratic Institutions that have been bred by robert mugabe. This is going to be perhaps a series of leaders before it settles. A series of transitions before the International Community knows what to expect. We could be in for a rocky ride in determining who eventually wins what looks like it is going to be a power struggle. Julia the days leading up to the move by the military, we saw the Vice President actually fired from his role. Weave that into the story as we look ahead to what may happen. Megan he was too close and forced out. He was a close ally of the general who was in charge. He was deposed and forced out. He was a close ally of the general who is in charge. People are going to compare this to the arab spring. We have to remember what happened when those things happened. You and i both remember the arab spring and the disasters in egypt with the Muslim Brotherhood and how that led to a military takeover in egypt. These transitions when they happen in this fashion are rarely simple. They are rarely one chess piece. It is usually several. Zimbabwe is a country that people have looked at and said it is a true tragedy given their Natural Resources and history. Is this a new opportunity . Perhaps. But there is pessimism. Julia what role does the International Community play . Megan that is such a great question. I think the International Community has rounded against mugabe for human rights abuses and again economic decimation. It is really going to be china, which is usually important in terms of investment, and how they settle on this. I am sure that the Trump Administration and germany, england will be watching very carefully to see whether this is going to descend into any violence. It does not look like that right now, but we will keep close tabs on what is happening with this transition and see if it will be a true transition of power. Julia where do we go from here . Do we have to see what happens and wait for the International Community with how this plays out . As you mentioned, this is early days, and we do not have clarity or information from any places as to what is going on. Megan in the next few days you will see so many obituaries of move got these mugabes political life and there will be tremendous transformation and thought about what this means for this country and what this means for whether or not it is going to get finally an opportunity to rebuild itself in a way that makes sense. Lets not forget the people in that country and lets not forget who they are going to cast their allegiance behind. These are people who have suffered to a degree under this rule that is extraordinary and that we cannot really even imagine deprivation in that country. There will be many people who look at his removal of power as something to celebrate and people will be cautiously optimistic. We would warn people to look at the examples that are similar to this which are not great. The International Community should be forceful and have a voice in the future of zimbabwe. Julia up next, we throw the spotlight on europes incredible economic turnaround. Julia welcome back to Bloomberg Businessweek. I am julia chatterley. You can find us online at businessweek. Com and on our mobile app. In the economics section, posting the strongest growth in a decade, europe is no longer the sick man of the world economy. Carol massar and i caught up. Europe for a long time has had a Bad Reputation in the world economy. There are signs now that it is not just recovering from the Global Financial crisis, but it is actually doing pretty well. There is data showing how strong germany is. We are looking at the best growth this year for the euro area in a decade. It is turning from recovery to expansion. At the same time, a lot of economists are lining up to say this is the start of a golden period, which is something we have never heard really discussed in the context of the euro area. Carol for people who have been asleep for the last 10 years, they have missed so much. That includes the Global Financial crisis and the sovereign debt crisis in the eurozone. They had to recover the euro zone from a lot. Absolutely. While some economies rebounded, perhaps did not create the jobs some would have hoped in the early days and subsequently the wages, have had a pretty standard recovery from that financial crisis and recession, europe bellyflopped into the debt crisis. Greece at the center, a flirtation with deflation. It is pretty much the work of the European Central bank in providing a lot of mandatory stimulus, even more so in the euro area. That is finally starting to take effect. I felt like the greek crisis was the greek crisis that kept on giving for so long. Kept coming back again. We never moved on. But for me, quite interestingly, the ecb saying that this is the best the eurozone has been since the formation in 1999. That is a pretty bold call, simon. To go to your point, how much is this recovery and how much is stimulus driven . There are signs companies and consumers are taking that stimulus and putting it to work. A lot of it is improvements from trade. Europe is a big trader. They are benefiting from previous week this weakness in the euro. Look at the region politically as well. Look at macron in france, spain, putting catalonia aside. Countries that were stuck in the financial crisis are picking up. Even italy is performing better than their longterm trend. There are a lot of things pointing out the longterm argument but it does seem that there is a more robust economic backdrop for the euro area. Julia also in the economics section, it is not all rosy in europe on the doorstep of the eastern border. Bellarussa is building a Nuclear Reactor without international oversight. Here is our editor, christina lindblad. It is the first soviet republic to break away in 1990 and it proceeded to orient its whole economy and politics towards western europe. Now 30 miles from the capital, this gigantic twin tower Nuclear Plant is going up on the other side of belarus. Basically it has completely made them crazy on several fronts. Carol is this fear of just the russian influence, being reminded for that region and it is in their face . Lithuanians say this is a simple of the past. Then there is all of the legacy of chernobyl. Carol terrible disaster. Back in the late 80s. These countries, people were recruited to help with the cleanup. We spoke to somebody whos neighbor was taken away to help and died shortly thereafter. Julia the russians are financing this powerplant. It is russian built. And building it. The stateowned company is supporting it. What is interesting is how close it is to lithuania. There are more lithuanians near the plant than from belarus. That is one of the main objections. In belarus, they have said that the decision was made because of considerations of topography. You cannot have Water Supplies too close to a plant in the event of an explosion. Julia talk about why they see it as such a threat. Is it because of the russian influence . Is it the fact that they have worked so hard to remove themselves from being so dependent on energy from russia in particular . Because this is a factor for the whole of europe. Cristina russia has a history of using energy as a geopolitical tool. They did it in the ukraine, where they basically threatened to freeze people in the winter. In belarus, 95 of electricity is generated from russian gas. So lithuania has been trying to sort of ease the grip on the region for itself. 26 of electricity in lithuania is generated from renewables, but more importantly they have built this lmg terminal which began the summer to take shipments from the u. S. From the plant in texas. They took their first shipment in august, and that is seen as an important milestone for the region. A bridge to the west. So those terminals that are being built in parts of the baltic are basically countering the historic lng and Gas Pipelines that go through from russia to the region. Julia up next, venture capitalist justin price for a comeback after his harassment scandal. And Business Owners are tailoring programs based on a new type of job market. This is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. I am julia chatterley. You can listen to us on the radio on sirius xm channel 119, 1130 am in new york, 106. 1, am 1330 in boston, am 99. 1 in washington, d. C. , and am 960 in the bay area, and in london on dab mux 3, and in asia on the Bloomberg Radio plus app. In the technology section, venture capitalist justin kobeck resigned in disgrace from Binary Capital after six women accused him of making unwanted sexual advances. Now he is working to end the socalled bro code in silicon valley. Here is our reporter. He is a venture capitalist who used to run Binary Capital, and he resigned in june after a story came out that said he had six women, three named, and they came forward and said that he had made unwanted sexual advances while they were pursuing business relationships. This was from making suggestive latenight texts, in one case, he groped the leg of a Woman Entrepreneur under the table at a business meeting. These were things that crossed the line. They were all in business settings. When the story came out, it was a huge deal, and he resigned a few days later. Julia he admitted it, too, didnt he . He said, not all of the women that he has hurt in the past and that have come forward, and as you have pointed out, these people may not have worked for him but they were in positions where they needed something from him and he abused that. He has been open about that fact. We met with him, and he talked about how in the months since he has been time at home, doing a lot of reflecting and he said that his main takeaway was that he was not aware, and many people agree that this is not an excuse, he was not aware of the position of authority and power that he had over these women who were in many cases looking to him to invest in companies. That is a huge lifeline for them, their Companies Looking for money and he has the power to give it to them and he makes a sexual advance. It puts them in an uncomfortable situation. He says that he is more aware now and was less aware before but it is a gray area where it is not an employee but there is power and money and authority. Julia no he has become so aware of the situation that he is making a comeback. He wants to educate men about what he calls the bro culture. Explain what he is doing. There is a big presentation about how people should react and behave. In his thinking, he has now realized, at least he told us that he thinks the beginning of the behavior that he had came from his time in college. He went to duke university, was a basketball player. He says he was taught there that dating a lot of women was a good thing. No one told them that if you take that same behavior to the workplace could be seen as sexual harassment. He wants to educate young men around collegeage as a cautionary tale. Dont do what i did. Be sure to stay very careful on this side of the line when you are interacting with women in the workplace. A lot of people think that he is not qualified to give advice to college students, but he thinks this is the best way that he can do it. He has prepared a 51 slide powerpoint presentation. He gave the first iteration to finance class at duke last week. His goal is to in his words eradicate bro culture. Julia i spoke to our editor about Business School rankings. Harvard for a few years in a row has been our number one. It is the oldest Business School program for a masters of business administration. I believe they created that in 1908. Historically important name in the world of Business Schools. There is a lot of appeal and as we know in this world that can carry a lot of weight area. Julia reputation. When you are polling students and alums, those rankings are coming in high and that is what we see over the last couple of years. Consistently in the categories, whether talking to employers or students or alums, how it affected salaries and other factors, it is coming out ahead on all of these. There are small differentials for the rest of the top 10, but there is a solid, i think it is a roughly 10 point lead, if not just under that, between number one and number two, university of pennsylvania wharton. It has all of that combined in the right place. It is maintaining that. Julia talk about number two because they are a full spot riser. Dimitra they got high marks from students. Julia also placement in this case. Dimitra indeed, you see this in more and more schools, job placement is important. The economy is stronger now, but consistently you are going to these schools to get a degree to come out with an awesome job and a great salary that will only grow from there. Julia and a lot of debt. That is certainly a lot a factor. One thing that we covered in our story is that you are seeing dips in applications over the last few years. The economy is contributing to that. Debt loads are contributing to that somewhat because employers that sometimes finance employees who go back for degrees are somewhat less willing to contribute to that. Julia Bloomberg Businessweek is available on newsstands right now and also online and on our mobile app. That is all for this week. Thank you for watching. We will see you next time. More Bloomberg Television begins now. The following is an important paid program about humana medicare program. Announcer welcome to your medicare, your decision, the program that guides you through the Medicare Options available from humana. There are many different medicare choices available today. But are you sure you have the right medicare plan . Are you with the right company . Do you wonder if you could save money with a different plan . No matter what Medicare Coverage you have now, this program will give you the information and