They make you drinks. It is mammoth and it competes with other jumbo jets like the 747. But big airplanes are not as an fashion as they once were. Everyone is looking for fuel efficiency. And the main customers turned out to the emirates and a lot of their other orders are not coming through. What airlines are looking for now are the small jets of a hold smaller numbers of people, that are more flexible, work with the hub system better, more fuelefficient. I mean, it is a big plane that was envisioned 20 years ago by people no longer there. Carol its in some years and money developing these planes. Airbus is kind of stuck with it and they are trying to make their money back. Ellen they are stuck because at this point if they say they are going to stop, they have plans in light of bill these things. They have employees building these things and they have orders outstanding. And the resale value of the planes already sold would go way down. So, they are kind of stuck. Carol its also a big problem in italy. This is in the Global Economic section, the International Cover story. You look at the amount of debt in the city of rome and italy overall. Ellen its an enormous amount of debt. You think about greece. They are overwhelmed with debt. Really italy is right behind. And of course, in the last few weeks people and been talking about brexit. But italy is coming up as the next headache for europe. Carol the debt has been around for decades. So it is funny you say the next decade. Ellen it has been around for so long that some of because all the way back to the 1960s. The new mayor of rome, she is from this new party called the fivestar movement. She made the debt a big issue. She is saying, why hasnt this been restructured . They are paying much higher Interest Rates than they would if they restructured. The party is using this as a weapon against the prime minister. Carol its interesting to see a newer party coming in a power in gaining momentum. Ellen and basically gaining more and more support as it looks like the old establishment has not been able to do anything with the economy and there is big unemployment and people are fed up. Carol speaking of figuring out how to do something, target on the cover story this week. They have got to figure out how to bring back that target that was around years ago. They are targeting Kids Clothing to do that. Ellen they have figured out that they need several areas if they are going to focus to keep profits up and keep the momentum going. They have lost a lot of their cool during the recession when they were trying to cut prices and focusing on that because people did not have as much money they were competing with walmart and amazon, etc. They realized they needed some of that cool back. Carol i spoke to susan burke field about this. The Kids Clothing business is important to target for sure. You know it has been a very, stable business, kind of a multibilliondollar all told. And, you know, it wasnt a business that was broken, but it was a business they thought had a lot more potential. Its true, people come in. You are going to buy granola bars and juice boxes and you might the running couple of tshirts for your kids because they cost less than five dollars. What target is hoping to do with this new kids line is you know, they say, the new line is called cat jack. We got an inside look over the past few months and how they have designed it. It is with the intent of making target a place for you actually go for the kids close as opposed to something you kind of toss in the cart for doing your shopping. What is interesting is, and i love this story because i feel like toymakers do this all the time. They put toys in front of kids to figure out what works. Target went to kids to figure out what designs made sense. Instead of just asking kids do you like this are like this, they said why you like it . Beyond that, they did a lot of research with a lot of kids. And they have come to an understanding that as parents you might not be too surprised to hear things like girls like science, interested in outer space. Come on, barbie he geared that out. It doesnt have to be all parts and butterflies and rainbows and eiffel tower. In some ways target was getting up to where probably even designers were as parents, but where it as a Mass Merchant was not. They are modernizing in that sense. They are trying to break down the gender barriers that they had. You know. There can be dinosaur tshirts with sequins. And you know, boys might wear colors other than red and blue. So, in terms of their graphic tees, they have made a big effort. And kids nowadays are not really as competitive, there were more collaborative. So they are considering that. Carol and they want their close to reflect that. Susan and slogans on the tshirts which will be a big part of the business. Carol for those that follow the consumer area in the retail area, do they think target is on the right track . Susan i think its always a risk when you change something that is doing ok. Circo and cherokee are the brands that are being phased out and will be replaced by cat and jack. Right, so those lines sold. What target is hoping this would do and will sell better. They have said they want it to grow twice as fast as the industry average. It will be a kind of billiondollar brand from the start just by virtue of what it is replacing. That is pretty big. But yeah, you know, they are involving kids a lot more. They are taking a few risks and they have got to put it in the stores and see what people say. Carol are retailers looking at what target is doing . It is such a competitive landscape. Im curious if other folks are kind of watching the target is doing. Susan i think for walmart apparel remains they have tried in the past and decided that is not really where they are going to stand out. Target has a history of kind of understanding fashion trends. They are trying to a play the highlevel thinking to the level of kids. Sorry kids. I saw it. Like, to me some of it looked like j. Crew crew cuts but cheaper. That is good. Carol look at how the magazine created this weeks cover, i spoke to robert vargas. Robert they are known for you know, their cool designer collaborations. Into that business has fallen off. They are trying to give back to that place by now consulting actual kids about what they should do with their kids lines. Kids were doing they would call kids in and have them take everything from color swatches to designs to patterns. Sort of like the kind of things that someone in fashion would do, like a professional fashion person would do. So we had this idea of taking iconic fashion person that we can think of. Carol thats what i said. Thats anna wintour. Of vogue. Robert from there we incorporated tshirts in the target line and header sort of motioning as if she was taking her favorite one. Carol kids rule target. That is part of the cover, right . Robert we embraced the kitty theme. There are a lot of lego themes and a stuffed bunny. So we just went full child. Carol what is it like working with kids in doing this . Robert fortunately or unfortunately was not at the shoot. But she is a professional. They went to a casting agency and found her. From what i heard from the photo editor she was very great. Carol there is a lot of white. I think if you go to a fashion shoot or something, that is what you see so much. Robert we even took inspiration from the devil wears product prada, the furniture was very sleek and mirrored the effect. Carol up next the mystery behind the murder of a Bank Executive in puerto rico. And how staples may bring home the olympic gold from rio. And why Bernie Sanders seems unwilling and unable to end his failed campaign for the democratic nomination. All that ahead on bloomberg businessweek. Carol welcome back to bloomberg businessweek. You can find us on radio on sirius xm channel 119. In the features section a story that resided telenovella. A Bank Executive gunned down on a bridge. Rumors of pagan ritual and secret payments. You write about memories. Who is he. He is a banker from new jersey. He had a spirited regional banks across united states. In 2011 he was found by headhunters and went to work at a bank in puerto rico as its number two executive. Carol this was a troubled bank . Zeke they had been battered by the decline of the puerto rican economy. They were just four years removed from being bailed out by a group of wall street investors. Maurice was there to try to turn things around, get the operations in puerto rico in order. Carol he uncovered some things and he questioned him was going on. Zeke he, according to lawsuits filed later, he has some disputes with other people at at the bank and he thought there were inflated payments to contractors. But he did not have it chance to pursue this because after just a few months of working there he was murdered. Carol driving home one day. Zeke he was driving on a busy highway, rushhour. Someone pulled up alongside his lexus and fired at least nine shots. Hit him and he died. Carol the investigation is still ongoing. I mean, what are they thinking about what happened to him . Zeke the fbi has not said. They said they are close to solving the case but they want a will not say exactly which way they are leaning. What i investigated was his widow, marissa, a few years ago filed a lawsuit claiming his death was connected to fraud he uncovered at the bank. What i found was people involved in the investigation say maybe there was something to her theory. And that what maurice discovered may have led to his death. Carol in terms of after his death, there were investigations and things came to light, including an interesting religion followed by a lot of folks in puerto rico. It seemed to have maybe a little bit of a role here. Zeke after dural went bankrupt last year and were reports in the local papers saying people have practiced santeria at the bank and conducted rituals to try to bring the bank good luck. Santeria is a popular religion in puerto rico. One of the main powerful rituals you can do is sacrifice an animal to the gods. I found this at first a little farfetched this would happen of the bank, but after talking to a bunch of exemployees they are adamant it did happen. Carol there was a ceo at the time who was obviously his boss. Zeke the next ceo that came from ge had dabbled in santeria. He says this is not true, but the exemployees say his secretary was the one who kind of introduced the religion to others at the bank. Carol and religion not a bad thing, but there were some interesting rituals that might have happened at the company. Zeke the strangest part is that apparently, at least according to one exemployee, some of the banks employees brought a kamen, a mini alligator into the boardroom and conducted a ritual to ensure that the bank would get a bailout it was looking for at that time from wall street investors. And apparently whatever they did worked, because the money did come through. Carol there are a lot of interesting moving parts to this story and we are waiting to figure out what happened. Zeke i hope the fbi solve the. Case soon. Carol and they are looking into it . Right . Zeke they are looking for clues. Maurices widow marissa has announced a reward. The fbi is also getting a reward for information that leads to an arrest. Carol staples makes a successful olympic bid. Carol welcome back. David gura is on assignment this week. How staples may end up bringing home olympic gold this summer. I spoke to evan about the companys road to rio. Evan staples is an underground juggernaut to india olympic merchandise and apparel world. They are one of two companies that essentially has exclusive rights to make all the cobranded olympic apparel for sponsors. We are talking about tshirts that visa gives its employers employees with the Olympic Rings and visa logo. Sponsored athletes from hersheys is wearing a shirt. All that stuff is made by staples. It gets weirder. There are water bottles, hats. Visa is making a six foot surfboard provided by staples. They do the entire back and for this stuff. Carol there are a ton of a big sponsors. Staples is responsible for all that merchandise connected with it. Evan there are 40 u. S. Olympic sponsors. Staples and bda are the only two big ones in this space. For olympics, they are the only two. Carol how is it different . Im thinking about the opening ceremonies and they were in ralph lauren. That is different . Evan ralph lauren and 90 our exclusive sponsors. They are paying a lot for the athletes to whether things at the opening ceremony. Nike is paying a lot for them to where the loungewear, etc. , in the olympic village. You will see it everywhere around the games, leading up to the games, and on the ground there are huge delegations from all these sponsors. They use it as an opportunity to reward employees. They will do sweepstakes, they will bring down vips and clients. Staples handles all that stuff they will be wearing. They handle the signage that has both logos on it. It is a huge business. They will make over 20 million over 20 million pieces of a of olympic merchandise in this cycle. This is a huge part of what staples does now. Almost 40 of their business. Staples did 20 billion in business last year, sales. The b to b part was 8. 6 billion. So 40 of the overall business. Injured her. I think of them as filofaxs and desk chairs. Carol right. The eye need a ream of paper kind of thing. When did they get into this business . Evan they acquired corporate express about 10 years ago. 4. 3 billion acquisition. That really kind of vault of them into this world. Now they are the bullet biggest Promotional Company in the world. They deal with half of the fortune 1000 companies. 24 hour fitness, another u. S. Olympic sponsor, staples makes all their employee clothing. They supply all the supplies for the janitors. There is obviously Printing Supplies and things like that. The gyms have day care centers. All the toys are provided by staples. Carol coming up, a setback for the white house when it comes to unions and why Bernie Sanders is not throwing in the towel. Carol welcome back. We are inside the magazines headquarters in new york city. Still ahead, Bernie Sanders just will not quit. Who owns your fingerprints . And even the wealthiest families sometimes cant hide for the tax man. Thats all ahead on bloomberg businessweek. Carol im here with editor ellen pollack. There are many more must reads this week. In the markets and finance section you talk about a company thats going after highfrequency traders and using interesting techniques to do so. Ellen its called renaissance technologies. They are a successful trading firm. They actually patented a new way of treating really quickly. Trading really quickly. It is unusual for one of these firms to patent something because it means they are going public with it, but they decided its more important to protect it they and to hide it. It involves algorithms and atomic clocks. Its really, really complex and technical. Carol we care about it because in terms of the volume on wall street, it is a lot. Ellen it is half of the trading in u. S. Stocks is highfrequency traders. There is a lot of competition. It is controversial because some people think it means that Retail Investors and others who lets talk about the policy section. There is a fight going on with the chamber of commerce because it is Business People who usually support republican candidates. It is unusual. Trump has been very vocal about the trade deals in place. He doesnt like tpp. He thinks he could negotiate them better. He thinks there should be more trade litigation. He thinks they are not taking care of business. There should be penalties when people do not abide by the rules. Whether that will work is sort of questionable. Even after litigation, it is often more advantageous. Lets talk about the opening remarks. He cannot seem to walk away. We call it burnout. We basically talk about why Bernie Sanders cannot bring himself to admit defeat and in brace the democratic party. Raised her asbeen the way the runnerup usually does. Only has he declined to endorse her. Sent maytacked her and mixed signals. The front runner kind of passes the torch. And can kind of use that positioning. Sanders is just wiping his hands with that. What is wrong with Bernie Sanders . Why cant he and his campaign in a grateful way . What everyone in washington is asking. If you look at his personal history and political style it should not be that much of a surprise. Sanders has been in congress for 25 years and has very few tangible achieve achievements. He has always stood outside the party system. Independent until the ease of the campaign. The only registered to become a democrat because he brought it gave him a good shot at the white house. Is problem that sanders has that the ordinary enticements that are offered to a runnerup like sanders. They do not have any poll on sanders because he views himself as an independent. That is why he has been so appealing. Not just unwinding himself but being able to use the substantial Political Capital that he won during the primaries. One 22 states and got over 12 million votes. Powerin out of nowhere who couldve used that position. Tohe had been willing endorse her on the eve of the california primary. The clinton folks were worried. Usually you can get those kinds of concessions if you are willing to negotiate. It is thrilling for those who vote for him but it makes him ineffective as a policy tuition at this stage we are in right now. Dois no accident that he fewer congressional endorsements. Gives you put some perspective here. What sanders did for 25 years is he was an independent, he was a demo was not a democrat. He got senior positions even though he was not technically a democrat, but he did not what it raise money for the party and do the sorts of things that ordinary democrats and republicans do. I think that spread a little bit of the reasons meant. But the style of politics was not the kind of buckled down and negotiate to get incremental advances on bills and laws he wanted past. It was to stand apart from the system and criticize everybody from a position of moral righteousness and say you guys, you know, are all corrupt. The same speech we heard him give on the campaign trail. That does not really endear you to the democratic colleagues. If that is the basis of your run for president. Carol courts deal a setback to president obama and unions. I spoke with allison hoffman. The labor secretary announced a new regulation that would require companies to disclose any time they hire consultants to advise them on strategies for blocking unionization efforts. The regulation was set to go into effect but a group of consultants and business groups and ten states have sued to block it. A judge in texas issued an injunction nationwide. Carol this ruling by the Obama Administration seems prounion. Is it . How do people see it . Its an extraordinary step in many ways. There has been a law on the books that requires companies to disclose when they actually bring consultants into the building to be directly with workers who are being lobbied by a union and organized by a union. What companies dont have to do right now is disclose when they are just paying advisors. But those advisors can give specific strategy talks and coach supervisors who then in turn meet with employees directly. What the Obama Administration says is that is not fair and the unions say that is not fair. We want to be on and equal footing. We have to disclose our spending so the company should too. Carol what is the argument against it . What they are saying is this is not speech you are treating equally. This is an infringement of our First Amendment rights. We are allowed to talk about whatever we want behind closed doors. And if we want to spend this money, we should be allowed to. They are not meeting directly with the workers so why should anybody know what we are spending. Where do we stand . Carol there is some litigation going on . There is litigation in three different states. One in texas, one in minnesota, and one in arkansas. The texas case is the one out front. The judge has frozen the entire program, which because we are in the last few months of the administration is putting it in great danger of never being activated. There was another judge in minnesota that said i would not put an injunction on this but i really think it is a nonsense regulation. He actually used the word incoherent in one of his rulings. It is not looking good. They have not said whether they will challenge the injunction yet, but they only have until august to do that and even then it is not clear whether they will have enough time to see it all through before january. Carol why pandora may hold the key to winning over hispanic voters. And how Silicon Valley is fighting to own your retina scan. All that ahead on bloomberg businessweek. Carol welcome back to bloomberg businessweek. You can find us on radio on sirious xm channel 119, a. M. 1130 in new york, 1200 in boston, 99. 1 fm in washington. And, a. M. 960 in the bay area. And the politics and fully section why Hillary Clinton and , donald trump need pandoras listeners. Tim this election will be very important to reach latino voters and pandora is an important way to do that. One in four of their customers are latino. Its an important and useful tool to reach that audience. Carol and they have a whole what . Political Division Within pandora that is targeting latinos and africanamericans . Tim they have a political sales team that can help the Campaign Reach various demographics around the country. Latinos are part of that. I look at a campaign that was in 2014 and they used pandora data to target various communities in florida. In that campaign it was helpful in turning out victory for them. Carol its important when you look at the latino voters, right . Because i think they are expecting a Record Number of latino eligible voters this time around. And in some cases in swing states its really important. Tim a lot of those new voters will be millennials. And the data would show that the millennials among the hispanic communities are more likely than other groups to be using their mobile phones to consume media. And so, this is a good way to reach them. Pandora is a perfect accommodation because the Latino Community in general is a big user of radio and in a consumer of music. The kind of combination of streaming radio on those mobile devices is really hitting a sweet spot in the community. Carol and pandora has been targeting the Latin Community for four or five years. Hillary clinton, donald trump. Trump not doing a lot of ad spend when it comes to traditional media. But hillary you is making use of pandora . Tim priorities usa already has ads often places like florida. Up in june hitting donald trump for comments he made about a judge with mexican heritage. And so we are kind of expecting to see more of that. The indication is that they will be hitting the Hispanic Community very hard. They have 35 million budgeted for digital ads and its going after the spanishspeaking voting population. Carol and the technology section, a look at the fight to control biometric information. I spoke with jim lawrence. What is this act . June its one of the few laws that deals with how private companies can use biometric information. Its an illinois law passed in 2008. It seems like a long time ago. It basically says you have to tell consumers when youre going to collective biometric information, tell them how you will use it. You cant sell it and you have to tell them when he will destroy it. Carol is that a crazy document thats really fine print, that what i am putting my fingerprint i have no idea what i just agreed to . Dune i think its still in development. The idea is you get more explicit consent they and than just signing off on some huge amount of small print. Carol how do Companies Want to use this biometric information . Whether its your fingerprint, or retinal screening. Dune a lot of the pushes for security reasons because there have been so many problems with stolen identity. Biometrics are more secure. But then that raises its own security issue. Once your fingerprint is stolen or your voice print or your iris scan, its hard to change. We know how hard it is secure this information. Any kind of financial or valuable data from identity thieves. Carol the big worry is what . What a consumer groups worried about . Dune the big worry is the security issue. Once it is stolen, you were kind of screwed. Privacy groups are just generally saying this is very intimate information and when he to be very careful with it and no one is watching out for this. Carol and there are several lawsuits brought against wellknown tech companies. We were talking about google and facebook or shutterfly. There are a lot of companies. This is the first test of that illinois law. One of just two or three laws that look at this issue and try to safeguard the consumer privacy. It is very untested. But so far these lawsuits have held up pretty well. They have survived motions to dismiss, the first step. Carol what do regulators say . Why isnt there some bigger, broader measure coming out of lawmakers in congress . Dune part of it is that the government sees a lot of value in being able to connect collect biometric data for security purposes. The whole privacy issue, on the government side they dont it be with the privacy issue. It complicates their efforts to use this how they want to use this. Carol and companies dont want to have their hands tied too much . Dune it is a pain. It would require them to do more than they do now. Right now our data is money in the bank for them. Carol just another example if you like where the Regulatory Environment is like keeping up with technology. Dune it is hard to keep up with technology. Carol the art world dynasty fighting for a half 1 billion tax bill. And a Global Fitness empire. Carol welcome back tok bloomberg businessweek. An expose of a legendary art dealer and their ongoing fight with french tax authorities. They are an art dealing dynasty thats been around for over a century. Carol and they are huge . Right . Him arguably the most famous art dealers in western europe and the united states. They have locations in the work new york and paris. They used to have one in london and buenos aires. They are everywhere. Carol if you are wealthy and wanted to buy art, he often went through them. Your story says how did this get so ugly . I mean, what happened . James the patriarchs died and his sons claimed their entire net worth was around 45 million. A huge amount except for the fact that a suit by their stepmother uncovered the fact that instead of being worth 45 million the family was worth billions of dollars. A big difference. And senate having a tax bill around 17 million euros, they are now facing a tax bill of around 445 million euros. They have to pay the french government. Carol how did they think they were going to cover this and keep this all hidden . Didnt they think you would eventually come out . James the amazing thing is they got away with it. Only after they paid their taxes by giving a sculpture to the french government did then they have to kind of go back to trial because their stepmother opened a criminal investigation against them. It is not how do they think they were going to get away with this, its they got away with it and then they got screwed later. Its a carol its a much bigger financial empire. James they have a 75,000 acre ranch in kenya. They have a townhouse in new york worth around 100 million. They have a mansion in central paris. They used to be the owners of the largest private home in metropolitan paris. These are people of extraordinary wealth. Carol and then there is the art. James as part of this lawsuit or criminal prosecution against the family a 1. 1 billion trust comprised of paintings and other artworks wasnt covered. These are kind of hidden away in various parts of the world. Most of it is in switzerland and the u. S. Carol what was the most interesting part of doing this story . James it was the history of it. We try to find the sources of the familys wealth. All you have to do is look on the walls of the metropolitan museum of art to see how much money these people made. They sold the painting in 1918 for 226,000. Adjust that, thats worth 2 billion alone today. Carol what may be the beginning of a fitness empire. Im talking about kayla and her bikini boot camp. She is basically building a Global Fitness empire, one burpie at a time. She is a 25yearold from australia and has 5. 3 million instagram followers. Eight times more than jillian michaels. A tv fitness celebrity you might know. She basically built this empire recommending that women exercise really hard, work out really hard, and she basically says riding the elliptical and reading People Magazine is not going to cut it. What is happening is she is very smart and gotten a lot of clients in these before and after photos on instagram. Women spend weeks and weeks working on these photos, posting them, and they are building kaylas army. About 150,000 women in it. Carol her fitness app has generated more revenue than any other out there . Its beating nike, under armour. It is huge. She has been able to generate this tremendous following, incredible loyalty for the real message of positivity which is everyone looks great. You are beautiful, doing a great job. That kale salad, you might want to eat it but it will make you look beautiful. Carol and she doesnt leave her native australia often . When she does, she goes to cities like l. A. She was recently in new york. There were 4000 women in new york. Some fluid from places like toronto, washington, d. C. Just to attend this workout. Carol but she does not believe in drinking wine . She does a fitness guide and a food guide. People that worked in the food guide sent the one fight they have of her was about alcohol. He says if you are trying to get a better body and work out, he cant drink any alcohol. People doing the fitness guide said lets be realistic. Bloomberg businessweek is available on newsstands now. Carol we will see you back here next week. Coming up on bloomberg best. Aftershocks continue to make markets queasy. Meanwhile in the u. S. , italian banks struggle with stability. It may be too big to fail. And the
comparemela.com © 2020. All Rights Reserved.