Kong should separate from china and go off on its own. It is a small movement. Than mostn more root people expected. The couple of beers ago there was a lot of protests about hong its relationship with china. People dont like that china was insisting at one point that they the nominees to be the chief executive. This is a continuation of that debate. Hong kong is very dependent on china. It is a history as being a british colony. The future of hong kong is still being hammered out. Carol the economy was doing so well, but now not so while that is making it trickier. People that live there, the economy is really in bad shape for a variety of reasons. Prices are very high. Many people who are the hong kong have dual passports because when the british were withdrawing the question was where is he going to go. There is a lot of uncertainty. You have a story but a family but there is a dispute going on spilling into the aisles of the supermarket chain. Why this battle . Itit is a private company, is a supermarket that were beginning to see some of and the u. S. The descendents of theo albright. North andt into aldi south. Now, one part of the family is fighting. The of it has to do with spending of the sisterinlaw. Carol one of the sons of the things she is spending too much. That isnt good for the empire. It isnt good for the store. Aldi is known for really strippeddown stores. Really frugal. That is the family in this sort of a frugal family. This dispute will bubble up to be who controls that company. Carol it was a push to do some modernization, correct . But the dispute is preventing that from happening. That is the question, because of her spending and the dispute will that mean there is less money for the modernization . That is important, because markets are changing rapidly. Lots of competition. The covers talk on story come all about walmart. A lot of crime going on. Who knew this was going on . I didnt, but Police Department all of the country do. Walmart is a magnet for crime. It isnt just what you would expect, people trying to steal stuff. Crime, veryiolent serious violent crime. Parkingit is in the lots because many walmart are open 24 hours. Some of it is the experts say fewer peoplert has working in storage in front of the stores. The theory goes that if you have more people out on the floor, they will be less crime. It is a huge problem most of the people who are really mad about it is, aside from the victims come our Police Departments. Carol their footing the bill to govern the walmarts. You of angry local officials and Police Departments because they are constantly running back and forth between walmart and back to headquarters. We visit one walmart where there is a Police Officer stationed there all the time. Again, it is having an impact on local budgets. Was an officer walmart. I spoke to someone about the story. Gerald rossway we spent two days running around with in tulsa its a Police Officer. Whenever showed up at the tulsa Police Department, that is what is division chief he said want to introduce you to officer walmart. He spent his entire 10 hour shift at walmart. Is employed by the Police Department. He gets called to walmart so often for so many shoplifters, up trespassers, that he ends sometimes spending his entire shift there. Sometimes the Police Department has to send a van to transport all the people who get apprehended at this one Walmart Store in tulsa either shoplifting or have warrants out for their arrest. You did to drop the long, tell me about the experience. Shannon it is interesting post of there is this room and walmart, this Asset Protection room were all the shoplifters and people they suspect of fraud to get. They get brought to this room. With its almost like this Counseling Center within this giant retailer. Who shall18 euro boy micro 18yearold boy who stole a microwave. You hear these peoples whole life stories. Kind of drug some abuse are trying to get sony gift cards. Another woman caught that there was a victim of Domestic Violence. She told a chicken with the big black eye and was stealing a bike tire and 15 sneakers. For the police, he jokes about this. All my badike having guys in one place. He can just show up at walmart and counts the timid sugar beazer, a Domestic Violence victim in a threehour span. Counseled the teenage drug abuser, Domestic Violence victim in a threehour span. Commercialbusiest district in tulsa to police and cant have one of their officers and in some cases two or three spending their whole day at walmart. One number he said to me in the story was at 5000 trips over five years to this one location. The they get calls vast majority are shoplifting. There is no shortage of Violent Crimes, shootings, fights. Two thirds of shoplifters have Drug Paraphernalia on them. Across the country, there is crime databaseal out there so we had to go city to city. The information we found it is fair to say there will be hundreds of thousands of crimes committed at walmart this year. Unbelievable. Shannon this year, there happened more than 200 Violent Crimes across the country. Those are just the ones we know about from public media reports. Each day there are some Violent Crimes happening somewhere at a walmart across the country. There are other Retail Stores across the country, what is going on a walmart specifically . Tried tothat is what i figure out. This tulsa store, the target had t4 calls last year, hundreds ar the walmart. Part of it is the nature of the walmart. There are more of them, theyre in low income neighborhoods. There are lots of things you can steal. But there was also a corporate policy that has led this crime to flourish. The past managers neglected the stores. There is aggressive costcutting. Employees perr square foot. The stores became disorganized, they moved the famous greeters and havent taken a proactive approach to crime. It has been apprehend, not deter. The company is very focused on cost cutting. They ahve neglected have neglected this. They have a big problem on their hands. There is a lot of crime at Walmart Stores, and what goes into making that cover . The photographer out of the two cities were most of the reporting happened. Ofgot a very moody shot walmart at night. See this nighttime shot there was a bunch of cars in the parking lot. Why the late night shot . It was, it had the creepy mood necessary. There, reading the story there are all these statistics which are also surprising. Scale them was a National Violent crime happens in a walmart every day. Didntght that in itself need much embellishment. Simply put it on the cover and have an arrow pointing to the sign. Knew thatds like you this was what youre going to do. Gone the past, we have conceptual and playful for Walmart Stores in the past. This one is serious. Have to much lighthearted approach about violent crime. You that we wanted basically a documentary image. Once we found a statistic that was compelling enough, it did itself. To you automatically hone in on that statistic . There was one other that referred to tulsa that was every hour a crime happens in the walmart. We were debating between those two. You want to stick to a broader trend. Up next, Insurance Companies hurting when it comes to obamacare. We will take a look at the future of the Affordable Care act. Carol welcome back to bloomberg businessweek. You can also find us on radio york and1130 in new boston, washington, dc, and the bay area. And the politics and policy section, check up on the Affordable Care act. Aboutked to zach tracer why some many Insurance Companies are backing away from obamacare. Youve seen the big u. S. Health insurer say they can make money on the Affordable Care act. Theant make money from Affordable Care act. Theyre reporting hundreds of millions of dollars of losses. What is the problem . I dont think anyone knows exactly what it is. There have been a few things. Are gettinging we people who are too sick and are charging enough money to cover the cost. They printed up people may be gaming the system, signing up for little while, getting a bunch of care, then dropping coverage. There may be some things going on like that driving up costs. Those takethrough Health Insurers and who is dropping out. Unitedhealth group of the biggest in the u. S. , has said theyre pulling out of 31 of the 34 states. That is a lot. A huge retreat. It think it will lose 850 million this year. The biggest retreat and the biggest loss. At themselves out of the Blue Cross Blue Shield brand. They have said they will have at least 300 million in losses. Aetna expecting Something Like that as well. There broadly pulling out 11 of the 15 states. What does this mean for the public looking for insurance . There will be less choice for people. Humana and exits by United Health you will see many places but theres only one or two options. Some whole states may have only one or two options. Back in the real problem. You want more choices, hopefully to get better costs. Bama does the o administration, this is the legacy of domestic policy for them. What do they say about all of these health plans backing out . Obamacare is still a healthy market. They think there will be choices for people. You have seen the president called for a public option, some sort of public government run health plan to compete with private plans, particularly in where there isas not a whole lot of choice. The president has said the may be a need to think about keeping even more subsidies to people to help them afford insurance. Silicon valley the m a world. He made his fortune betting on the collapse of the subprime mortgage market. Welcome back to bloomberg businessweek. Alex sherman profile the m a bankers many love to hate. Catalyst is a tech advisory m a firm. There for prominent in silicon valley. They do almost all sell sides. The Technology Company wants to sell they will hire catalyst to sell. A repetitionned for getting high premiums. So, most recently just a few months ago linkedin hired qatalyst to sell to microsoft. If you turn back the clock a few years, they did a number of highprofile deals selling which turned out to be a disaster. From the sell side, what a great job, of course, there may have been fraud. As i read your story, this is a company will respect the terms of how they can get great premiums for the sell of the companies but are also to be able to tick off other people. The initial lead for this story drew comparisons to the ,ew england patriots, duke manchester united. You love to hate them or hate to love them or Something Like that. They irritate a lot of people and have for many years. Hasceo, who i spoke to, irritated many people on the buy advisors that afford for him. You could argue some people say he is abrasive. Sunday was a he is aggressive and is some people say he is aggressive and just doing his job. They have some tricks up their sleeve they tend to use pitting different buyers off each other. They also have round auctions to make a decision quickly . Several people told me one of is basicallyey use say you must make your final bid today. More. Nies said on this is the time is up you to make this price or walk away. Overhas irritated buyers the years. One of the examples is silver lake which almost bought shutterfly. Someone told me that they basically put a gun to their head. They said they were out. That Company Never sold. A short seller who called the fall of the financial markets. Used to be a Hedge Fund Manager who made a big an early bet on the housing market. The mortgagesll and saw that it was going to completely collapse. Drives a smart car. He likes to watch television. He makes of these movie references. He is very funny, and has this little bush belt thing going. What is he doing right now . Now he workes at newberger and bergman, a traditional Money Management firm. Meter started doing these separately managed accounts. He will go a long stocks and short stocks doing he would if he were a Hedge Fund Manager. Hes only charging about 1. 4 . That is a lot less if you look at your traditional hedge funds. Normally, it is two and 20. It is much lower. It is more expensive than, say, a regular mutual fund. But not that much more expensive. Talk to me about the two and 20. They go back to the hedge fund guys. That has come under a lot of scrutiny in the last year or so. We havent in the performance of many Hedge Fund Managers. Have always complained about hedge fund fees. If paid them because the past they often have posted very good performances. Since the financial crisis, and a lot of funds have struggled. A lot of it has to do with low interest rates, the stock market has gone up. If you hedge, you will lose out. A very difficult environment for that to make money. A fifth of taking the money you make that is a huge headwind. Up next, what it takes to build a mosque in america. How one financial disruptor disrupted itself. It is all ahead on bloomberg businessweek. Magazinesside the headquarters, more transparency at what went down on lending club is in the issue today. Rsd, driverless uber ca could be just around the corner. It is all ahead on bloomberg businessweek. We are here with the editor bloomberg businessweek, so many must reads in this weeks issue. And theook at turkey, popularity of the countrys president. What is going on there . There was an attempted coup, the president continues to be extremely popular. He was able to put down the coup without a lot of problems. It was relatively shortlived. We talk about why he is so popular. Some of it is what is sort of retail politics. He was mayor of istanbul years ago and took care of people in dire circumstances. As replaced a dump that w legendary with real development. He made trust the city became a modern city. There is a huge segment of the population who feel he improve dtd their lives. For that reason, we raised the question is he coup proof . He may be. Back to the economy. He improve peoples lives. They become popular because they say they are better off than they were. It was the president that did that for them. Talk about the features section, going to new hampshire. Theres a group trying to build a mosque. It has been going on for years. They already have a place of worship and easter mom. It was their dream to build a real mosque. They finally found a piece of land and bought it. There have been problems of percent. Ever sense. Most of it is pure prejudice but all cloaked in other things. Permits,problems with do they have to fix a road . They had problems with the neighbors worried about parking. There was a dispute over what was called as a ghost road, a road that doesnt exist. It is one thing after another. It goes on and on. These people are not professional fundraisers. There is something poignant about the story. These are people that just want a house of worship. They have hobs jobs to do. They are physicians, and engineers. It has all been complicated by the community not being supportive of their dream. Raise moneyinue to but i still working towards it. Also in the features section there is more on lending club. Story continues to unravel. It provides more transparency about what really went on. Left. Ceo of lending club there were questions about whether a bunch of loans they had sold were dated correctly. A guy wholking to wanted to set up a Credit Rating system for lending clubs loans. They are one of these firms where you can go on and borrow money. Theytal peertopeer, were a leader in it. But there were people taking a multiple loans, then one would be rated risky and not risky but for both rated as risky. They found to some degree there was an effort to juice it by getting more loans at the end of the year. Questions about what really is in those loans. It matters, because it is securities people are buying and a registered with the fcc. The question is whether theyre being as transparent as they say they are. There are great details on the story. Got anw months back i email from someone i had known for a long time who said there is more to this lending club story. He basically is somebody interested in data science. He found a bunch of loans and looked questionable. He says it looks like maybe the ceo or somebody close was taking these out. It is just a guess. Two weeks later, lending club disclosd just that. Ofically, a bunch information cast doubt on their Business Practices over the past half decade. A company with peertopeer lending. People thought they were doing it right. Take your accolade. Out,rms of data coming does it have to do with the loans itself or transparency issues . Bloomberg had a report about a man is Company Buying its own mayonnaise. They were taking out a bunch of loans, then using the data and returns from those loans to werethe case that these good investment. When you look at their press, from a few years back they would talk about how well they had done during the recession. This new information casts doubt on that story. Seemkes the larger story problematic and led to the fact there were additional issues with the company that happened recently which ultimately lead to the departure of the ceo. What to this mean for peertopeer lending . Is it a one company thing . It is hard to know. I think the industry has done a lot of smart things. The idea of getting a loan on the internet makes a lot of sense. On the other hand, i do think dont really know how good this business is because we havent gone through a recession with these companies. That will be the ultimate test. What is next . They are trying to get past this they have done some audits. Trying torantically raise additional capital. Part of the problem i have as they were trying to disrupt the banking system. And they were. Problem list, much of their capital is not super reliable. Talking about basically hedge funds most of these investors were flighty. In the wake of the scandals, the investors flew away. Which have banks deposits that are not flighty. Theyre making the case that this is sustainable. They are making loans. It is not like this business will go away. It just may have grown too fast. Of next come with a drug that made the great northwestern university. Welcome back, you can find us on radio. Also, in new york, boston, washington, d. C. And the bay area. In our markets and finance section, how one drug was just what the doctor ordered a northwestern university. We are talking about the drug lyrica, which is pfizers bestseller today. It was developed in the Chemistry Department at northwestern more than 30 years ago. These drugs take a long time to develop. It was patented and approved by the fda in 2004. Eventually, the sales became over 5 billion. That is a blockbuster. It is. These are pretty rare to be developed at universities. Especially at research universities, andre many that it had blocked testers like this. What is the set up . If a professor develop something at a university, who gets to keep all the royalties . Is it split between the university and the professor and the drug company . After 1980, the federal law change allowing the school to keep royalties. Most schools have an agreement that they share their profits with the inventors. At northwestern, he decided it would take some risk of the table and sold that stake in the million. 2007 for 700 the other usual thing about the story, not only did they have this blockbuster but they put virtually every penny of the royalties they received into their endowment. It is now the eighth largest in the country, about 10 billion. You have money coming into the endowment annually. Usually, they grow in you have investment returns. They can to keep some of that as well as fundraising. They had this additional amount of money that kept growing. They could have taken this built a new building or done something with it. But because the put it into the endowment that is unusual. Yes. Usually when schools decide to sell and get a big chunk of money they decide to use it to build a building or higher additional professors. Northwestern made a different choice. They wanted to sustain whatever they did. Then you wouldnt have money to operate a building if he spent all of it. Or if you hire terrific faculty you need money to sustain them. Spaces are not just basis to plop down and plugin. She spent a week checking them out in new york city. Coworkinga week in spaces. There are over 100 brands throughout brooklyn and manhattan. I decided to spend a week working out of them. The pioneer started a few years ago. They are a behemoth. There was 16 billion. Those numbers have been slashed a bit recently. They have paved the way for these companies. When you talk about those of us that work for Large Companies dont do that. This is where people go to do to we aren office was used to going to north is where it is one company, sitting at desks next to the poor we know. Coworking spaces are shared office spaces. It is a lot more flexible and cheaper. For a start up, or an entrepreneur it is a much easier way to get into a space where the startup cost without the startup cost of renting an office. Yuan in two primary, that focuses on wellness. Yes, it is a brandnew space. There is green juice and healthy snacks and free yoga. It just feels very calm. They hope that will attract people to their space. Wifi, was is still great . Their password was feel great. It sort of encapsulates brooklyn. Are these neighborhoods that figure if you live in the neighborhood you like everything about your neighborhood. Isent to coworkers, which innate gentrifying neighborhood in brooklyn. It is exactly what you would think of. It has exposed beams, and cement, of course a lot of it was fashioned to be that way. There was artisan all coffee and people who worked there all look really hip. Lena dunhams newsletter runs out of there. Up next, taking a ride on the driverless side. Chickens andout sheep. Welcome back to bloomberg upinessweek, uber is revving on Driverless Cars. Uber is not first to this game. A year and half ago they went on a big hiring binge around Carnegie Mellon university. It is the center for driverless car research. They wiped out their department. On the put a hit department. I think Carnegie Mellon overall is happy with the arrangement. Everyone wondered what was going on. Theyre not profitable, theyre fighting battles with regulators. There is a lingering labor issue. Why would you take this additional challenge on . What i found out, having travel to pittsburgh see to see their operation, is that they see Driverless Cars as the critical issue for the company. If you like it is inevitable that google and tesla will competingtheir Ridesharing Services using Driverless Cars. Does not have their own technology they will go away. 80 ofou pointed out, ubers cost of the drivers. It is a huge sum of money. That is not quite true in the developing world. That even for a long trip, even in a world area, taking an uber could be cheaper than a car. Big investment. Although has a deal with volvo has a deal with uber to develop a self driving car. This is a pretty big cup for. Hem, coup for them we think this is a big deal, maybe the biggest deal in the Autonomous Vehicle industry to nail down the numbers still. It basically brings in all of these formal googleeerers into e uber program. Auto is who . Ofit is this guy who was one the key engineers of the original driver this car program. Back at google . Yeah, he was involved with those darpa challenges in the mid to thousands. He took a big team of people from google and some other Companies Including apple and tesla and started up this trucking thing. The idea is that the of driverless trucks on highways. If you are a truck driver, you drive a truck onto the highway then switch it on to robot mode and take a nap. This is a little bit different than what tesla is doing. What tesla has today is sort of advanced Cruise Control where the car steers and accelerate and brakes. Opeir technology is the h or dot you can take a nap Something Else while it is traffic. Orit isnt just about cars places to stay. Animals are also getting into the game. We know the sharing economy can help us when it comes to getting a taxi or going on vacation. It can also help you if you own interested in having a couple of chickens at your house. Oft we are seeing is a Lot Companies popping up supplying everything from sheep and goats to falcons and bees. One. Love the falcon why do you want a falcon . If you havea falcon a fruit crop. There are starlings in small birds that will try to eat that. The falcons are trained to scare them away. It is fascinating, cap at a flying weight to make julie dont actually eat the birds but just scare them off. If i want to rent a falcon, what does it cost . 65 to get started. If you do own a Blueberry Farm which is what we talk about, youll probably get four of them cheapit ends up being insurance against crop loss. I like the chicken idea. You can apparently rent it and then give it back for the winter season . Six months later they will come and fetch everything. As much as a love getting the farm fresh bigs, they developed an affinity for these chickens. They wind up taking on personalities and become kind of like pets. There are different kinds. You can also rent a goat. Great lawnmowers. They will eat and graze, talking about sheep, they will actually fertilize. If you want to go all natural, there is an easy way to do it. What does it cost . The goats are pretty cheap. They get Something Like 4000 square acres of land farmed in the seattle area. They are not expensive. This will, you would hire these because hiring people tends to be two or four times more expensive. Bloomberg businessweek is available on newsstands. See you again next week. Coming up, the stories that shape the week of business around the world. Japan is stuck in neutral. The quests to produce a self driving car accelerates. The minutes reveal what appear to be a growing and increasingly frustrated scarlet another week of earnings. Companies release their quarterly results. We are working on how we evolve our offerings to our customers. Scarlet provocative ins