They doubled the price of it. There was a lot of attention brought to it. They reduced the price and brought out a generic. It has made everybody take a look at the industry of drug pricing. They do a good job of sort of explaining just how crazy drug pricing has become and how hard it is to fix the problem. Of course, epipens, it is widely used with people with terrible allergies, including myself. And it is necessary. It is also especially necessary for kids who have a lot of allergies. It used to be that you could get two epipens for 100 apiece. Now, 600 is a lot. What peter shows in the story is just how hard it would be to fix this. Which is sort of the excuse that the ceo of mylan made. What she was saying, the ceo was saying, you cannot they did not expect regular people to be paying 600. It was sort of the price that they were charging insurers and drug benefit managers. And the idea was that there would be negotiations. If you dont have insurance, or if you had a height inevitable Insurance Plan a high deductable Insurance Plan, you could shell that yourself. Carol you take a look at what is going on in brazil. The official impeachment of the president , or former president. Brazil, their economy has been in recession for the last two years. Ellen it has been in incredibly bad shape. Oddly, or maybe not so oddly, the stocks are going up in the up and the currency has gotten stronger because people think any change will be good change. The new president has brought in more typical economists, more orthodox economists, and the idea is that it has to get better now. Carol right. There are concerns that there could be watered down economic reforms, that would not be great for the country . Ellen the idea is can they get all of the reforms through. The economy was so based on subsidies, can you take them all away . And so the question is can he do what he says he is going to do and will be economy will back . Carol lets talk about the cover story. I love this color cover sto ry. It is all about amazon and their move to control that last mile of shipping. They are going after ups and fedex it sounds like. Ellen anyone who orders from amazon wonders how did it get here . If you are a prime member, how did it get here so quickly . The question is, how is it possible to do it when their number of packages keeps going up and up and ups and fedex can handle only so much . We go behind the scenes and looks at amazons plans for the future, and how they are gearing up to deliver packages. Carol right, and it all starts in a town in ohio. This company has been quiet moving into the Delivery Area in terms of planes and buying into companies. Talk to us about what they have been doing . They are very secretive. They are very quiet. And so, they have been as quiet as a big company can be. Initially, the place where i started to pay attention, they were building these stations around the country starting in 2013 feeding packages into the Postal Service to get away from ups and amazon. Once they have the fulfillment centers, from there they were able to create these delivery stations where they feed packages and hand them off to these local carriers. In they created these prime now hubs where they have all the stuff like they do it by at walgreens or at 7eleven. In a lot of places you can get things in two hours for nothing. Carol that is so cool about prime. Amazon prime is today delivery or something . Free delivery. But if you live in certain parts of new york, seattle, you can get things in two hours for free and you can get it and an hour for 7. 99. Web, it is this happening in the u. K. In germany and it is much bigger than a lot of people realize. When i started leasing the planes, thats when the lightbulb went off. David what is going in wilmington, ohio . They are so secretive i did not think they would talk. I want to just go out and talk to people out there. You have this little town. It is about 35 miles southeast of dayton. For many years, it was the hub for airborne express and then dhl bought airborne express and they ran a hub out of there. In 2008, dhl decided they were not going to compete with ups and fedex in the united states. A lot of people lost their jobs. Last fall, a rumor started going around there was another company out of the airport and they were wrapping their packages and in black plastic so people could not see them. And they were referring to it as project archangel. [laughter] but it was a small town and the rumors got around and became a big story. Everybody got really excited because they had not been doing all that well out there. That is going to be the hub for amazon. Carol when does everything kind of start going up and running in wilmington, ohio . It is already happening. David jeff bezos who founded the company has been obsessed from the very beginning and he cares a lot about the delivery side of things. He said, you know, on a number of occasions, he could never imagine a customer wanting fewer products and less selection, higher prices, or slower delivery. I think he flips it around. [laughter] not wanting faster delivery. That has been something he has been thinking about for a long time. It took them awhile early on, they had issues during the holidays getting packages out of the door out of their fulfillment centers. In the last couple of years, that is what they have been thinking about. They are concerned about the system not being able to support their volume. So they have to take matters into their own hands. So, this year, they are expected to ship seven billion packages. In four years, it will be nearly 13 billion. How are they going to get all those boxes to peoples homes . If they cannot count on ups, they will do it themselves. Carol i asked about his take on prime air. We sent a photographer to shoot this big event amazon was having to show off their new planes. We saw the new planes, they look exactly how you would expect. They have a big amazon prime logo on the side. It did not seem like an interesting way to go for the cover. So we came up with a silly concept, which is jeff bezos making a plane out of the box like a child would. Carol he did not actually crawl into the box . No, he did not. That is the beauty of photoshop. When we dont get cooperation from our subjects carol you can do what you want. Tell us about the cover, where did you get this shot . It was him onstage at some conference. Maybe somebody cracked a joke, but when we saw it, we had to use it. Carol any other ideas in terms of this . A couple others. There was a plane made out of an amazon box. Something to have jeff bezos animated special. Carol up next, how an m. I. T. Professor is helping wall street traders control their emotions. Plus, the former Goldman Sachs banker who is betting his career on donald trump. That is ahead on Bloomberg Businessweek. Carol welcome back to Bloomberg Businessweek. Im carol massar. You can also find us on radio on sirius xm channel 119 and on am 1130 in new york. Am 1200 in boston. Am 960 in the bay area. In the markets and finance section, banks are storing the use of data from body sensors, phone calls and emails to identify top traders. It is a strategy developed by a professor at m. I. T. For at least 15 years, angelo has been studying the connection between physiology and risktaking. And in this case, he was giving a talk at a major wall street firm. He would not say which one. After that talk, they invited him in and said, i want you to test your studies with our risk takers, our traders. And he did that in 2014. What did he find when he did that . He set up a simulation. He found that there really is a physiological and emotional signature to people who are the best risktakers. Their bodies ramped up to volatility when it was occurring, but swiftly relaxed when the volatility was over. People who were unexperienced or bad risktakers, they experienced market volatility, unexpected things that their emotional response was all over the map and elevated. Carol and the best traders are able to regulate themselves . Kind of ramp up when needed, but calm down again. That is a great way of thinking about it. They are the most in control their emotions. The father of a value investing, benjamin gramm, had a quote decades ago, the people who cannot master their emotions are not set up well for success in investing. That is the case. David you think of this as an academic exercise. But there are Companies Working on this right now. You talk about humanizing in the piece. Humanize is one example and have workplace badges that are at companies. They have a pair of microphones that tells you how fast you are going. A couple of other sensors, like bluetooth, they use that to create data that essentially tells the employer how you are behaving during the day. And importantly, stress levels. When youre stressed out, your speech patterns are totally different. You are not as in control of your verbal ability. That is one of the aspects of gathered. Carol a profile of steve minutia. He wants to be his treasury secretary. Here are the reporters. Stephen is Donald Trumps top fundraiser and his job is to raise all the money that trump needs to beat Hillary Clinton in the general election this fall. Carol did they know each other . He will not say. Just like if you ask me, i will not reveal. They Work Together on deals. One of those deals ended up in a lawsuit. But he says he is an old friend. Donald trump actually says he really does not have friends. Suffice to say, stephen got an invitation to trump tower to celebrate Donald Trumps New York Primary win. And even though he was headed to a dinner downtown, he said he will stop off. When he was there at this cocktail party, he could not find donald trump, so he waited and finally saw donald trump and he beckoned toward him, and he joined him for this ride up in an escalator. Then he was on stage with donald trump at the rally. The next day, donald trump invited him to be his finance chairman. Carol go figure. What is his background . This is a guy who has quite a pedigree, correct . Quite a pedigree. Literally. His dad was a monster, huge trader a Goldman Sachs. People called him coach. [laughter] he followed his father to yale. He had internships at Salomon Brothers in the 1980s. He went to goldman. He worked for soros. He was a big hollywood investor. He literally invested in avatar, the most successful film of all time. And bought a bank on top of that. Carol i think what is interesting about your story that you guys right is that the people who know him are kind of surprised he took this position. Why is that . Here is a guy that has had no background in politics whatsoever. He has given a little money over the years because he is a wealthy guy. Most of it he said was favors to friends was raising money for clinton or obama or whatever. Carol a lot to democrats, right . More democrats than republicans. He represents a lot of these elite institutions that donald trump fans are opposed to. Goldman sachs, which trump makes a lot of noise about on the campaign trail. A lot of people were surprised to see that all of a sudden, he showed up, not just as a trump supporter, but as a key person who is helping him to get elected. Carol next, the hurdles elon musk is facing for testing for tesla. And how one Company Successfully fought back competition overseas. Carol welcome back to Bloomberg Businessweek. Im carol massar. July 1, 2017 is an important date for tesla. What happens . That is the date when elon musk says suppliers and the teams need to begin volume production of the model 3, which is the more affordable sedan. David the company is banking so much here on the success of the model 3. Remind us of the demand essentially the company says pony up 1000 to get on the list to get one. What was the response to that . The response was extraordinary. You had hundreds of people lining up at stores around the world. 373,000 take in mat, people had preordered the model 3. Obviously, some people will cancel and some others will sign up. 373,000 for a car that is not in production isnt heard of in the auto industry. Where this is a company they keep making forecasts and estimates and you have elon musk reigning them in. I dont know, what are the expectations . Tesla has a history of overpromising and underdelivering, especially when it comes to production and a sales targets. What is interesting is there is public demand for the model 3. Everyone a super excited about a highly styled electric car that is more affordable. The big question is can tesla make it on time . July 1, 2017 is 10 months away. Not a lot of time. David we talked to devon who wrote a piece about amazon on how quickly they are trying to build up their delivery system. Tesla is doing the same thing, starting from scratch if you years ago and built a company that can manufacture cars. That is a difficult process. How being able to do that is hard. I think the hat trick here is launching a new car or model is difficult for any auto company. Tesla is trying to vastly increase its volume production. They only delivered 50,000 cars last year. They are talking about building 500,000 by 2018. They both have to launch a new model and scale it and doing that requires retooling their factory in fremont with new equipment. That is all in process, too. They are building the machine that will build the machine at the same time. Carol also, reporter Brendan Greeley took a trip. We spoke to brendan. How did this company come to your attention . I was looking for people who had been displaced by trade. This database is run by the Labor Department of people who have applied for compensation from the Labor Department for having lost their jobs to trade. I called 50 people in rhode island trying to find one person. I got one call back from a guy named mel. He called back and said i cannot help your story. I just wanted to call back and tell you. We were going to lose 20 employees to trade, but we got the company restarted and we kept all 20 positions. I said that sounds like a much more interesting story. [laughter] this was at the new england paper tube company. They are exactly as the name implies. Based in new england. Pawtucket. And they make paper tubes. So the thing that you find in the middle of your paper towel roll is made by Companies Like new england paper to. Pawtucket is really the cradle of american manufacturing. A couple of things happened. The first thing, technology changes. Providence in general was one of the hardest hit areas in america through Foreign Trade after nafta and after chinas secession to the two in the early 2000s. In 2014, the company was a 12 billion company. All of a sudden it is a 1. 3 Million Company employing 20 people. It finally goes into receivership. It is a prebankruptcy step. It has been owned by a family, these are the grandchildren of the founder. When i talked to them, they said these are things that are beyond our control. And that is mostly true. It is beyond the control of any one family. But there was one person who decided the plant has to keep going and i know how to do it. And this was the person who returned my call six months ago and said, i had an idea, i knew how i was going to save the plant. Carol and he was the plant manager, correct . Correct. He thought, this is crazy. I think we are losing money on these products. And we are making money on others. He built his own spreadsheet. He figured it out. There was one cardboard tube that they paid 9 a unit to make and sold for . 40. This is the stasis that happens when a Family Company sort of does what it does, stops examining the books, has its customers, has had it for decades and keeps selling. He went to the family and said, i have a plan. Lets just focus on these few things that we make really well that we make money on. Lets get rid of the things we dont make money on. The difference turned out to be spiral tubes is that they can make them faster and cheaper in china. The former plant manager went to the receiving lawyer and said, you have a choice. You can take this company and it can become spoils. You can scrap the machines and sell the building and not make much out of it. I think i have an asset that will continue to perform. And so that is what they did. They restarted the company with a focus on just the things they made better than anybody else. Carol up next, while the u. S. Has failed so badly in preventing the zika virus from spreading. Also, the unlikely bet making one brewer big bucks. That is ahead on Bloomberg Businessweek. David welcome to Bloomberg Businessweek. I am david gura. Carol i am carol massar. David still to come, why the u. S. Is ignoring signs of the zika virus and having a hard time controlling the outbreak. Carol also, a team of professional hackers. David and creating a premium market for rye whiskey. Carol it is all ahead on Bloomberg Businessweek. Carol i am here with editor ellen pollack, there are so many more mustreads in the magazine, and in the markets and finance section, i love the story. Oakland, california, i had no idea was a pricier Real Estate Market than San Francisco and the silicon valley. Ellen it is wellknown that high prices for housing is everywhere, and especially in San Francisco, but it turns out that oakland prices are going up faster now them San Francisco, certain parts are more expensive than San Francisco. People were thinking they would move to oakland because it was cheaper, and the prices are going up so fast, that people are sometimes spending 36 premiums over asking prices. There suddenly realizing they have to ask her more than stated asking price. Again, the it is people who thought they were going to escape the high prices of San Francisco. Carol it is crazy, doesnt the oakland area have a high crime rate . Ellen it is. There has been a lot of political activity, in certain parts of oakland, there has been a lot of crime, that people do not care because it is cheaper, and it is not preventing prices from going up. Carol you guys do a story on monsanto, and it has to do with a pesticide, developing a new soybean seed. What is going on . Ellen they want to introduce a new insecticide called dicamba, which already exists. They came up with new seats that are resistant to it, to grow these plants, and it would take care of the bugs, etc. Carol it sounds like a good plan. Ellen it does, but it is that for other plants, so they come up with a formula that would to stick to the plant. It has not been approved, but it is ending up on other crops and so farmers are finding huge crops of soybean being destroyed. Carol theyre making a dicambaresistant soybean seed, right . Ellen yes, and farmers feel like they have to switch otherwise their crops will be ruined. Carol the fight against zika, ground zero as florida, the Miamidade County area. It is a political battle. A a why cant we get money from the federal government to help in the fight . Ellen president obama addressed this issue how congress did not allocate funds to battle zika, and ended up in gridlock. Him it wasnt passed. What has ended up this there are only four people from the cdc or other agencies working with local officials, trying to fight mosquitoes, which cause zika in miamidade. It is a miniscule amount of the resources that miamidade would like to have, and the federal government, to the extent that they are able to support the efforts, are sort of taking money from other projects, money from cancer, they are using money from other diseases to try to support the efforts in florida, but meanwhile, it is for people. Carol david gura and i spoke to a specialist. Caroline they are pulling out all the stops. You can see people going around spraying. Theyre trying to get rid of any standing water. The other is tracking the women, particularly pregnant women who may be infected, so that involved, you know, testing people, people who have traveled back to places that have zika, might be infected. Also now we know there is local transmission from the mosquitoes in florida. Half of it is trying to stop the mosquitoes, and half of it is trying to stop it from spreading. David we have talked about how this is really county by county. I wonder, caroline, who is running this . How much of it is a local effort versus a state effort versus a National Effort . Caroline i think it is a bit of everything that you said. I think that in some ways is what makes it tricky to respond because the cdc is the Government Agency that is ultimately responsible for the u. S. Being prepared, but they are only advising. So they can suggest to the state what they should do, or if a local counties of pay, can we send some cdc has to calm in and help us out, they will send experts onto the ground, but they cannot be like, everybody has to deal with Mosquito Control right now. They just do not have that control. It is a mix right now where county by county people are coming up with plans, the state is trying to get them funds, the cdc is try to back them up with experts. Carol why isnt the government more sensitive, the federal government, that helping out florida . Caroline well, this is where it gets tricky with politics, right . Back in february so now this is months ago president obama asked congress for 1. 9 billion for a zika response, and i think most of bluegreen us some funds are needed, but where congress is deadlocked is where that money comes from, is that new money, is that money we shuffle over from other places . And then the House Republicans wrote up a version of legislation that included some other provisions that Senate Democrats basically said is a poison pill, they cannot pass the bill as it is. It is the process of creating legislation that is holding it up right now. It is not that the federal government it is not that lawmakers do not realize it is a problem. It is that they cannot agree on the specifics and details of what is going to go in that bill to fund the response. Carol often the politics and policy section look at the rise in the automatic Voter Registration. Josh, what exactly is it . Josh automatic Voter Registration is a policy where rather than someone having to opt in and affirmatively make a certain amount of effort to register themselves to vote, when it is possible, using existing Government Agencies who have the information, people by default are registered and less they choose to opt out, so when you go, for example, to the dmv, because you are sharing the information that is necessary for Voter Registration with the dmv, the dmv, in some states now, would automatically add you to the voter rolls once automatic registration is up and running, and lets you choose not to be added. David what is the argument against this . We have heard, especially on the republican side, worries about allegations of voter fraud. What is the argument for having a process in place . Yes, i am going to the dmv. I am presenting these official documents. Why not do that . Josh some of the republican governors or state legislators who have opposed it have argued that it could lead to increased fraud or that it is a solution in search of a problem, that is one of them put it to me, it is a great privilege to get to vote, and what is the problem with asking people to make an effort in order to be able to do it . Carol you talk about different states. Talk about oregon and what they are doing. Josh sure. So oregon was the first around a year and a half ago to actually take this concept, which had been kicked around by some of the progressive Voting Rights advocates for a while, and actually put into lockard oregon find it into law and has it up and running, and has a couple hundred thousand automatic registrations that have already taken place. Since oregon did that, the policy has also been taken out and supported and made law in four more states. Three of them, like oregon, states where democrats have both the governorship and both houses of the legislature. Carol up next, hackers target pacemakers and enter into a short sell. And forget bug repellent how about drone repellent . The technology that could protect you from snooping drones. That is next. Carol welcome back to Bloomberg Businessweek. I am carol massar. You can also find us on radio and sirius xm channel 119, a. M. 1130 in new york, and 1200 in boston, 91. 1 fm in washington, d. C. , and a. M. 960 in the bay area. In the technology section, a researcher brought information to a short seller. David gura and i spoke to reporter jordan robertson. Jordan this is a completely unprecedented thing we saw with saint jude, medsec, and muddy waters. Typically, maybe Companies Collect a small bug bounty and move on. Researchers have lots of problems with certain medical device makers, and what medsec decided to do was publish their research in concert with a short seller, and that happens to be a company who has a large of influence over the other direction of company stock. And lots of questions about is that ethical . A Cyber Company makes a pretty compelling argument that what happens unfortunately sometimes when researchers bring vulnerabilities to companies as they get sued. Companies do not want to hear this tough. It is a legal liability, so they have a business interest in this, and they also have an idea that by disclosing vulnerabilities in this way, they will draw an unprecedented level of attention to this issue and forced the company to make changes. Lets tackle the first part of that. David they have a business interest here. What is the Business Model . How is the Company Going to make money off of this . Jordan sure. Again, this is a completely unprecedented Business Model. The company was split up month ago, and they started exclusively researching medical device Cyber Security, and they had researchers trying to find vulnerabilities. Their first product, if you want to call it that, is this trade. The companys ceo justine bone is a very respected Cyber Security researcher, very well regarded in the industry, and she has stressed that shortselling or seemingly shortselling is not the companys only Business Model. The companys first product is this trade, muddy waters has a short position in saint jude, and medsec gets paid. Carol drone repellent. David gura and i spoke to a reporter. David that leads to a lot of innovation in the antidrone space. Max yeah, as we write in businessweek, bar refaeli saw an opportunity. We thought, if bar refaeli needs this, maybe other people will need it. Carol so they created a Company Called apolloshield. How does it work . Max it basically broadcast radio signals that allow you to detect consumer drones, basically between 500 and 2000 devices that you can purchase on amazon turn without using what the army called the kinetic solution, that is to say, without blowing it up. David what is the market for things like this . Yes, if you are a famous person getting married is there a bigger market . Max there are lots of stadiums, particularly stadiums in the u. S. , this is seen as an opportunity, also local law enforcement. If you have a printer or essentially a suspected terrorist or a drum that looks scary, their theory is that every Police Department and that he will need one of these. If everything plays out the way they think it will play out, something in the billions of dollars, but again, it is a speculative because the rules around us are not totally figured out. It is not clear what you are allowed to do as far as trying to stop a drone. Carol there are different approaches as far as how to stop a drone. Max yes. Competing solutions are little idiosyncratic. You have a bazookalooking thing that has a net with a parachute that snatches the drone, and then there are eagles. A company in the netherlands called guard from above trains eagles to snatch drones out of carol that is my favorite approach. [laughter] max apparently it works very well. They say it never failed. It is totally real but totally weird. David 30,000 for one of these things entry level seems pretty steep. Max and i do not know how much the falcon cost. I would imagine it is on the order of the 30,000 apolloshield, if not more, and you need more than one of these devices to defend your venue. Carol whiskey making rye cool again. The success of whistlepig just ahead. Carol welcome back to Bloomberg Businessweek. I am carol massar. In the features section, we spoke with whistlepig ceo raj bhakta. He ordered a glass. They have a very big following. Sam they have a very big premium. Whistlepig has created an ultra premium rye market. We have seen it happen with scotch, vodka, certainly bourbon. Well, it is ryes turn. This bottle, whistlepig, basically invented a section of the market. Carol who is whistlepig . Sam it is a Company Founded by raj bhakta. If the name sounds familiar, he appeared on the apprentice, ran for public office, and with whistlepig, he has found the next big thing. David what is the company up to right now . It is having wild success, yet it is finding is up in the midst of a legal pursuit. Sam correct. When they did was a consultant to whistlepig, a man by the name of Dave Pickerell a sort of Living Legend advised them what to do. He identified a source of aged canadian rye that had not been used as anything more than a flavoring agent for other blended whiskeys, however, the original rye itself he found was of high quality, so they started buying that rye from a different facility, then they started buying it in vermont, now theyre trying to grow rye on their property, distill it on their property, and aged in barrels made from wood from their own property, so they have this sort of backlist of rye whiskey that they are continuing to sell as 10yearold, 11yearold, 12yearold, and now they are try to develop their own stock as well. Carol which kind of has original investors are saying, wait a minute. Sam correct. Raj bhakta sought investors to get himself started, including some former colleagues of his, people he had worked with an previous jobs, as well as representatives from the Santo Domingo family from columbia, columbias richest family and the secondlargest holder in sab miller. They put money into whistlepig with their understanding, as they put it and this is currently being disputed and will be settled in court in october that they invested in this event there would originally be an exit, that whistlepig would be sold to another distiller, there would be an ipo, something of that nature. Raj bhakta at this point is saying no, no, i intend to run this as an ongoing, multigenerational family concern here does is cause his partners to say, had we known that, perhaps we would not have invested as much or at all or under the same terms. Carol Bloomberg Businessweek is available on newsstands now. David an online. What is your favorite this week . Carol i love the cover story on amazon. We know they control the retail environment. Now they want to control the last mile of getting the package to your home. They want to control the world. David yeah. I love sam grobarts piece. Doing hardship duty, going to vermont, going to whistlepig distillery, trying all of these rye whiskeys out. There are brands that he sampled and liked. I did not know the back story. Carol have you tried him whistlepig . Him david i have not. I will try it for sure. We will see you back here next week. Nejra coming up on bloomberg best, the stories that shaped the weekend business around the world. The eu slapped apple with an immense tax bill, drawing reaction from all corners. We do not expect that they did anything improper. We criticize europe, but we should look at ourselves. Nejra it bank of japan hints at more stimulus while things are looking up and china, and the u. S. Jobs report could be critical for the fed. I do think there is enough here to raise rates by the end of the year. Nejra Central Banks are a topic of conversation with prominent