We are here with megan murphy, lets start with the back of the magazine, peter metcalf. Im excited we are starting with the game changer, because we dont focus on a lot and it is focused on people doing things you should know about. A little known fact about me, i am of former big time alpine mountaineer. Are you serious . Who knew . In the mountaineering community, they are primarily known for very technical products. Peter is particularly interesting, he has used his position, he stepped down in 2016 from the company, but he used his position and the Outdoor Industry to motivate them around issues that are important. These are our Good Business issue, we want to highlight people doing things that tiein to their position in the business world, maybe it is a political point of view, things they think are worthy of society. He wanted to talk about the stripping back of federal protections for land. This is a huge industry. It cannot be understated. This is before President Trump and of the controversy we have seen about federal lands under this administration. We have talked about this before, there has been specific action by the administration to take lands that were formally federally detected around monuments, particularly in the west, causing a huge amount of controversy. Federal protections of public lands in america and in other countries around the world is a scene by many people as a natural right, they have a right to see the beauties and natural treasures. Myself included. That this is something every human should experience with their own eyes. Peter metcalf has been at the forefront. He is tied the Outdoor Industry to protecting our land. Think its another example of summary in the private sector saying government, i dont like your message and i will take care of this. He did this first in the outdoor apparel show, everyone supported this, saying this has to go into a statement that is what we believe in, access to the wilderness, these spots we want to protect. What are the plans . He was big mountain climber. Yes someone at some of the worlds biggest mountains. He does a lot of adventure activities. We talked how he has been kite surfing in greece. This is a man who has a voice and cause. I would not expect the cure from him, he will be a force i think or moralizing in terms of his space in san francisco, and a force we have yet to see, he is nowhere near done. Trying to protect another significant industry in this country. Speaking of a force for morals, from the back to the front of the magazine, a hit you so square between the eyes. Its been such a dominant thing this year. That is metoo. It is impacting Different Industries and i think how people are approaching women, the world perhaps differently. Im so glad you said the keyword, which is women. Metoo and this moment of reckoning we are seeing is really about treatment of women and how women have fared and in some cases been overly overtly assaulted, harassed, held back, and in some cases, much less quieter way that women are treated in society and industries. This takes a look at one that is fundamental, and that is the magazine culture, the sexualization of women, how women are made to feel about their bodies and how they are made to feel how they look. How women are made to feel they need to act. This National Reckoning is extending into some of these more quiet, furtive, accepted ways women are put in society. These remarks really move me. We have more on them. The Harvey Weinstein allegations started in early october, and within about a week, the Metoo Campaign has started. I remember opening facebook and twitter one day and it was this cavalcade of stories. People i knew. The woman and having reported on Sexual Harassment, before i was aware of how prevalent it was, i knew the statistics, but it is different to see it in a numerical form and then find someone you grew up with sharing the story of something that happened to them 10 years ago and you never knew. I think for women and men, it felt overwhelming for a while. It calmed down and now it is in the news every day. You wake up and people are making jokes, who is this going to be . There have been rumors about people for years. The louis c. K. Stuff was out there. There were some whispers about whether or not he was going to get caught up in this and he was. One after the other after the other. I think what has happened is this is something women have known about for a very long time. Only now do they have a platform to be able to talk about it openly and in a way they feel couple doing and actually be believed. A lot of people are wondering too, weve had discussions before, but is this time different . Is Something Different happening . I think so. I wrote a story last your best Sexual Harassment and white was so prevalent. Last year about Sexual Harassment and why it was so prevalent. What we call in media as the peg. The reason for it. Originally it was going to be about that and it turned into everywhere i turned, there were similar stories in every industry. Women working at all levels. We wrote something, and it got response, but, you know, for the most part companies were not saying oh my gosh, we had no idea, were going to change everything. It was still just sort of status quo, a lot of sort of legal checks, things employers can use to get around allegations. Arbitration, settlement clauses. All of that still exist but they are being called out on it. You are telling me that we are starting to see an evolution in terms of how people think about, men how they think about women because of the stories that have come out, but yet you still talk about hollywood, and how that if you look at the script and how they write about women characters, it still shows that that has not changed in hollywood despite all of the stuff that has happened. I find this fascinating. I do too. Before talk about hollywood, i will say that advertising has changed quite a bit. You can turn on the tv and find men in detergent commercials. There is a cute one where a man is playing fairy princess with his daughter. You named this great statistic, 40 of households and the United States have female breadwinners. You do have a significant proportion of men who are stayathome, dealing with these kind of things. Even if it is both parents work and earn equal amounts of money, not one particular parent is going to be doing the laundry. Everyone has to figure that out because they have to sell their stuff and they need you to feel like you have a relationship with this product. Hollywood does not necessarily have that. If you go to a major movie, the chances are, especially in blockbusters, it will be more stereotypical. You wrote about how in the script they described a woman. Tell us about that. Laster, there was a producer who started a twitter account, and he is a producer and he also reads scripts. He started just writing his tweets are essentially descriptions of female characters in movies. He anonymized them all as a jane so that writers are not being called out. Jane is a stunner even for her age. Jane, 13, just coming into her womanhood or Something Like that. That is quite benign. [laughter] they are just very bizarre. The description about their looks. Their looks or how you the viewer are supposed to feel about this woman. That is assuming that you the viewer are a man. It is still very common to write like that. Up next, up a two to model next, a potential model for peace in the middle east in the form of a soda factory. And the upstart selling muscles and mumbai. This is Bloomberg Businessweek. Welcome back to Bloomberg Businessweek. You can find us online at businessweek. Com. And on our mobile app. This week, a special section devoted to Good Business. Businesses mixing profits with good deeds. We talked about putting it all together. Just about anything could constitute Good Business. When you look at what a lot of companies are doing, you find that there are a lot of Companies Looking to do things like help people get more fit in india, which is a story we wrote about. Or you look at academia and higher education, not usually a place with a lot of innovation, but you have someone like Mitch Daniels at the university doing a lot of innovative things. We spent the year trying to scour for stories like that. If you like there is a theme that crosses the stories, someone going above and beyond the call of duty in many ways. They are passionate about something, they want to disrupt, they want to change, bring greater awareness. That is the biggest theme, beyond the business they are running. That is very right. We look at in india, we look at the gym chain. It is a fascinating story. India as early as the 1970s had instituted caloric minimums. People were so underweight that the government said you have to eat this many calories. An economic boom happened and now they have all the problems we have in the west of obesity, diabetes, and a quarter of all the people who have heart attacks and india, a quarter of them are younger than 40, which is insane. I find this shocking, because when i think of india, i think of yoga. I think everybody in india does it yoga. [laughter] its not a big deal. Its not. Something like 97 of india does not do yoga. It is very small. And this gym chain has recently opened Something Like 20 locations in bangalore in one day. They now have more than 200 locations. Theyre trying to bring fitness to india. Its interesting what he is doing, hes growing a lot. Hes also trying to, as you say, him they dont have physical education for kids and theyre trying to reeducate the society. And it is working. Huge growth, as i said, they opened 20 gyms in one day. For a lot of people going to the gym, theyve never seen Fitness Equipment before. The idea of this western gym experience is new. Its really strenuous. Its not coming from the government. No, this is all private. They are not putting enough. Speaking of education, lets talk about Mitch Daniels. He is a man also making a difference. Radical in the education sphere. Higher education is not a sphere where there is a ton of innovation, it moves very slowly. Mitch daniels took over, twoterm governor of indiana, known as the blade because of his cutting of budgets. He takes over at purdue and immediately does things colleges dont do. One, he froze tuition. For six straight academic years, tuition will be under 10,000. This is that a time when a lot of competitors are seeing tuitions rise and rise, primarily because of a lack of state funding. He froze tuition. Hes doing other innovative things, offering something called degree in three, which will allow you to come in, and if you are willing to stay on campus for two summers, which is not the most fun thing, but you can graduate in three years, which will save you about 10,000. Tell us about the ceo of sodastream. He is another interesting character, someone who wants to change the world. He is a really fascinating guy. Sodastream is a fascinating company. Think that the 2014, there were boycotts. A factory in the west bank, boycotts saying it was an occupied territory. His whole thing, you can call it a shtick or not, you look at the gaza strip and you have 40 unemployment. You look at mainland israel, 4. 5 unemployment. You cannot have peace in the middle east until you have economic equality. His argument is, i have a way in, we just have these factories. He moved the factory out of the west bank into the largest bedouin city in the world. He has palestinians working to israelis and jews and egyptian jews, russian jews. Peace through the workplace. Exactly. His argument is, if everybody did what he is doing, all of the tensions would go away because instead of treating people like the other, you would say, i know this guy, i work for him, he works for me, we get along great. That is what he is selling, whether it can bring along piece is another question. Gracing the cover of our Good Business issue this week is microsoft ceo satya nadella. Obviously he is a very powerful man, he runs an enormous company. We try to humanize him in this, and not put him in a formal light like youre used to seeing him. He chose his own wardrobe. This is his casual attire. He is sundrenched and leaning against the railing. He looks fairly content. We thought it was a nice feeling. And company like microsoft where you have two iconic leaders so identified with the coming, you have to make your mark, its not always easy to follow. He is making his own mark and he will be a different kind of ceo. One of the takeaways from the interview, he is very empathetic. I think there is also the fact that this issue is the good issue, and it made sense to play this up. The headline is he is the empathy officer. Up next, reasons to be optimistic about raises. And disney becoming the walmart of hollywood. This is Bloomberg Businessweek. Welcome back to Bloomberg Businessweek. You can also listen to us on radio on sirius xm 119 and on am 1130 in new york, 1061 in boston, 99. 1 fm in washington, d. C. And in the bay area. And in london and asia on the Bloomberg Radio plus app. You in the business section, a look at how big an influential disney could be after it gobbles up fox studio. Here is reporter gerry smith. Disney was already a huge force in hollywood, now youre talking about having the fox studio is part of disney, that gives them a lot more negotiating leverage with movie theaters, for example. You are talking about disney having pixar, having the star wars films, and now combined with fox, you also have a huge franchise in avatar, which has a has four sequels in the works. If are talking about numbers for the movie specifically, box office receipts. Disney, when it is negotiating for films with theater chains, there is a negotiating about revenue share, usually it is 5050. Disney now has so many successful movies like a star wars movie, it could use that leverage with theater chains and demand a higher revenue share. That is something they could potentially do with some of the fox films, as well. Whenever you see this kind of combination, you wonder about how this changes the landscape in the entertainment and media world, how it changes hollywood. Disney paid billions of dollars for the bulk of 21st century foxs efforts. It is a big deal. How does it reshape everything . Is a huge deal for hollywood. Specifically, disney is making a big bet on the future. Bob iger believes that in the future, we are not going to be signing up for as much cable tv or going to movie theaters. What he wants to do is create streaming services that go direct to consumer. You can subscribe online and never leave the couch. What this means is disney already plans to introduce a streaming service for a lot of its movies in 2019, and they could potentially use some of those fox movies for part of that, even potentially hold back some of those movies from being in the theaters and go direct to consumer as part of the Disney Streaming service. Doesnt make disney more powerful when it comes to negotiating for content . Everybody needs content on all these services. Where does that put disney in the stacking . That is interesting, because maybe five or six years ago, a deal like this be really huge for people selling their ideas in hollywood. Now, you have taken away a buyer, because fox and disney are under onerun, but you also have new buyers. Silicon valley companies, apple, facebook, amazon, netflix are all huge buyers of content right now. In some ways, it does take away a buyer of film and tv ideas, but you have something more buyers of content in hollywood than before. Productivity in the u. S. Has been depressed for a decade, but finally showed signs of life this year. We talked to our editor about what this may mean or Capital Spending but also paychecks. Its going on about 1. 5 growth, but this is after years of barely anything. It was 2. 7 per year, up to 2000 and the eve of the great recession. The highlight this year is we are seeing Services Start to pick up. Services are 64 of the economy. A big, important thing. The reason is capital expenditure. Businesses are going beyond replacing older equipment to buying new equipment, investing in r d, software and other technology. That is beginning, it is powering the uplift. We are all more productive, we are going to be kicking out more stuff. What is that mean for the economy . Hopefully some of us will get raises. Another thing we havent seen for many years. Every time the unemployment data comes out, we see that more and more people are working, you would assume of the wages would start to increase but we havent seen that. Janet yellen testified before congress of the end of november and said that productivity, she thinks that is the reason wages have not been growing. Once we see that sort of start growing more robustly, that will enable companies to thing about getting wage increases. So right. It also raises the Growth Potential of the economy. It puts us on a higher track. It would allow the fed to start lifting Interest Rates without worrying about choking off growth. That is important because when the next recession comes around, central bankers are around the world are worried about how they will fight it when Interest Rates are so low. Is a lack of ammunition there. Lets get back to what you were saying about wages. The conundrum for businesses if you dont have productivity, if you try and raise wages, you also have to raise prices for consumers. What were saying now, if we are starting to see productivity rise, they can do one without the other, which is critical. That is right. You are making more with the same number of workers. In the service sector, what is going on until now, and we think the Capital Spending increase is because people were able to hire mor