Started a Popular Uprising that led to millions marching in the streets of chile. We put together a holiday cover for you. What a year. We think this is one of the biggest stories of the year. It started with we work. Earlygazine covered very on even during ipo chatter. As that developed and went on and on, there was another story that we started to think about. One of the biggest investors in work. Did talkoftbank, we about it and what i love about this story is that you guys go into the layers. The visionary at softbank, especially the vision fund. A 100 billion dollar vc fund that can do a lot of things because it has so much money. Ways it can do that is to going to some thing like we work which is a Business Model that may not have been right for the long haul. They were very aggressive. Go big or go home. Some wins, other times it doesnt. And what this revealed was the fundre within the vision where there is a lot of tension. Its a big story. Another big story is businessweek turns 90. Kim of that magazine has been around for 90 years and we honor that to look at how businessweek has covered business through the decades. Because of the equities. For a couple years afterward they looked really good. Its just an amazing accomplishment. I think it was interesting talking to some of the people who put that together. All boy back to 1929 right before the crash on we first started, but collectively, the people who worked on this essay can trace their lineage back to the people they worked with. One of the things that they are these similar moments and how businessweek in many ways tracked what was going on mother zeitgeist in economics, the board room. Women. Still an issue. There are so many tomes in the story and when you look at it shows covered it, the world and capitalism. Issues we have talked about over the decades we are still talking about today. It is amazing how much stuff that comes up that actually feels contemporary. These stories have been with us for years. Lets get back to the cover story. We work is actually a small part of the total investment portfolio. We make the point in the article that advisors were much more confident about we work. The Business Fund only committed 4. 4 billion to we work. Compared to the rest of softbank. The commitment was relatively small. Work, and theye have much Smaller Companies that have gone wrong. For example, brand list to Consumer Companies that they really only invested a few hundred Million Dollars in. Because they are highprofile, people are paying a lot of attention to those. When companies fail, they often fail pretty early on in the life of the fund. They also have a number of very that are notpanies at the points in their lives where we can point to them and say these are spectacular companies. A big retailer in south korea has a lot of promise and another one in asia is very promising. But the promise hasnt delivered yet and the disasters have. About what i said at the top is i feel like you dig into how investment , tell us are made little bit about it. Charmingu it can be extremely mood questions people with and in the leak we took in the lead, we tell the story of once on a call where he paraded an investor at softbank for not being optimistic enough. Company based in china making good and steady progress. Telling the investor, you have to figure out a way to make it grow even faster than it is now. People on the call were cringing and felt that one investor got the brunt of his iron. Particularly company ceos who go to pitch masa, if he likes your company you can walk out feeling like youre walking on air. Sometimes he tells young startup founders that you are the next feeling and they leave so good, especially if its a company that has been rejected many times before. What sets Division Fund apart from other venture capitalists, is when masa decides to be all in on it, they invest big time, and real do push the founders and the entrepreneurs to be more aggressive. They give them a kind of money where they can expand much quicker than they would have been able to do otherwise. Sometimes a Company Looking for 60 million gets several hundred Million Dollars from softbank. They give a lot of money but they want you to deliver. Say you were planning on rolling out in one state. Now they want you to do a massive rollout. Do set up for a company to grow really fast but not every company can deliver. The financein industry still dont get it. Welcome back to Bloomberg Businessweek. Catch up on our daily show and listen and subscribe to our podcast. Online on find us Bloomberg Businessweek. Com and our mobile app. They have been following this story very closely throughout the course of the year. Sobering article on how the finance industry doesnt quite get it. Sometimes in the newsroom we look at each other and we are like where is me too in the Financial Services industry. We know from years of chronicling hedge funds and banks and asset management, that wall street like lots of other industries has a profound and balances and women quietly say that they are harassed and distributed against. Butthey fear retribution, we havent seen that broad moment of change and with is about is that there is this machine of silence that explains why. In ther me too entertainment world we thought whats next and it didnt quite happen. Arbitration is one of those things that if you brought that to a half years ago i would draw a bank you draw a blank. I was on the phone with a wall street veteran who said if you want to understand why we are not seeing me too you have to look at the invisibility quote. That is the system parallel to the courts. Doors its alosed private Justice System that used to be relatively obscure and wall street helped it expand so that it now covers two out of three workers at big u. S. Companies, and wall street runs its own arbitration hearings. I love this sentence in the story but the finance industry is a master in this system meaning it has prevented the industry from touching it. If a wall street executive were here with us men and women . With humanhave dealt resource executives who are sometimes women. It was say arbitration is quieter, but just as fair. Women will say it stops us from banding together and from learning about each other and from instituting major change. The classaction lawsuits we have written about you cant have those with arbitration. The systemic about and cultural aspects as well. You dig into this as well in this piece, and the culture, a lot of these firms are set up and away structurally and eat those wise it doesnt feel like a safe place to bring these sorts of complaints, even the would be advocates within the firms that arent really on the side of the employees. They are on the side of keeping things quiet and keeping it under wraps. Our story is focused on three crystallizing moments. Fitzgerald which has to do with arbitration, and the third was lloyds of london. There is amazing stuff out of london. Whats really upsetting about it is we talked about it with its notour editor just that it paints a picture of guys behaving extremely badly, what is per family upsetting with the lloyd story and another one about the lloyd story written by gavin is it gives you a sense that these women went to hr and talked about being assaulted, and hr was like it will be bad for your career if you say anything. Dont smile around him. That was a little response from human resources, dont smile around him. Dressed differently, change your behavior to avoid these situations in the future. Plus defense bringing down the cost of eight controversial weapon. This is blumberg business. Welcome back to Bloomberg Businessweek. You can also listen on the york, wondered 6. 1 in boston. Am 960 in the denver area and in london and through the boom lit Bloomberg Business app. A controversial measure against Climate Change and some would say a necessary one. Controversial but the contest is pretty full. Sky vacuums that capture carbon from the air. Economice change is an issue. How do you solve this problem . There are some obvious things, build more windmills and solar plants. That you canlieve capture carbon directly from the air say that has to be part of. He solution as well if you have a chemical, and you run air through it. In the airdioxide binds with this chemical, forms a salt, and you put the salt through a plant and then you get a different salt and you can run that through a heater and then that splits off the Carbon Dioxide into a pure stream of Carbon Dioxide, and then you send that line which gets hydrated and put back into the process. Makes so much sense. Why arent we doing it . We are in an experimental basis. Ive worked with three companies, one is the Carbon Engineering a Company Based in manhattan and the other one is climb workspace in switzerland. The one that is out front is which is finishing up the design work on a planet will pulle year. Its a huge amount compared to what has been done before. Its a pittance compared to the size of the problem. Why not do this . It is more expensive than other solutions. The cost has come down a lot so it is no longer crazy expensive, its just on the high end, and its cheaper than other options such as batterypowered airplanes that we have talked about in a magazine. Furthermore, there will come a point where we run out our string on some of these solutions. Like putting carbon into the air. Dioxidee carbon produced by your grandparents that have been in the atmosphere all this time it has to be removed. To complementnt whats already being done in terms of combating Climate Change. Its a good point because i kinda went into this saying to me when into the same pollute all you want we will clean it up. Some people say its the wrong vestige. Dont try to tell people that we have a free ticket here to pollution. Doing everything. I like that you refer to this as the high hanging fruit. That this getst adopted in a meaningful way . I think it is very likely. I do believe we have seen the curve on solar and wind that will come way down. The cost curve on this will come down as well. Story asis another well. It is in the economic sector. Most of the coverage of these protesters focused on dissatisfaction over the economic model and how it relates to these pensions and people feeling like it is producing inequality. Looked at the backdrop of this, which is a 10 year make a drop. Thats where most of the population is. Water fightsese that have been playing out and how these protests you cannot said that theyve literally jumped from rural areas to the city, but there has definitely been this echo of unequal access to water equals unequal access to education, unequal access to opportunity. Tells about the impact it has had. To people who have long people who have lost more than half of their livestock in the past couple of years. There is an area in this valley where avocado farming has spread. O exceed this Global Demand the avocado farmers are being accused of exploiting their water rights and tapping rivers illegally. All the Small Farmers in the the rainfall the avocado farmers are fine . If you look at the photo, it is stark. The hills are all brown. Avocado is a water intensive crop. Thats one of those things. One of the issues this brings to mind is income inequality but also this notion of political and economic choices that favor business over consumers or over whatd businesses most would argue is a basic. Uman right people were initially surprised about the violence of these demonstrations in latin america. Its a model for how it enshrined the neoliberal model. The constitution dates to the time of the dictatorship. Its the water law that give people water rights in perpetuity. Companies have them forever. There was once upon a time that the thought was free markets inl help people be careful the management and use of finite resources but that has not been the case. And export oriented agriculture have the government has prioritized those kinds of uses for water, and we have hile that depend on water and when they open their faucet, nothing comes out. I do wonder what is the political backdrop here . Has beenthis unrest tied to the political system. Is there any sense that may change . The outcome may be quite and that legislators have agreed on two possible means of rewriting the constitution. The fairly large consensus is that the constitution needs to be rewritten because it enshrines this model that has caused distortion. Kim of a havent started talking about how water is going to play into that, but we could see changes in that as well. Coming up, Bloomberg Businessweek traces its origin to 1929. What a year to be born. Not an easy year to make your debut but there was so much. Oing on here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone wifi up there . Uhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your local xfinity store today. Welcome back to Bloomberg Businessweek. Im jason kelly. Im carol massar. Question of real estate arms race of sort between two suburbs just north of near city. The target is millennials. Turning 90. To celebrate how it has covered business through the decade, here we go. It is a sprawling tale. Here is a guy who knows a lot about it. It was a different magazine. We were in a different place with a different honor. There were a lot of things that were surprisingly the same. We wanted to do more than report the news, we wanted to add inside and analysis. Insight and analysis. White is important, why it matters and what might become of it in the future. Added throughlue on 90 years. Carol there is the section that covers 90 years of business week. It identifies three people who expand spend the whole lifetime of this week. What is fascinating is this idea of editors and individuals passing down history. Jim that is the nice thing about our magazine. There is a lot of continuity. I work with people i have known for the truly literally 30 years. Contacts that of we already know. We are not inventing rushing around. We are not saying what is it . The opening of disney world. I covered that. I have been a lot of things here. A lot of us can easily shift between stories. We can hopefully all at a lot add a lot when we work on the individual stories. Jason you were dealing with all of the outline bureaus. Magazinely feeds the in a lot of ways and gives it a a buncht is far beyond of people in new york. Tell us about that. Jim we have always had a Bureau System or a system of reporters around the world who are close to their companies but also picking up information that is difficult to get if youre seventime zones away. Before china was completely open , it allowed us to be early on stories like that and to understand why a lot of things happen very fast or not nearly as fast as a lot of people in new york seem to think. We benefited from having those bureaus back in the day. We are benefiting from that now. Bloomberg has a huge editorial staff. We can draw on them. Carol tell us about bringing women into the 19 and the consumer. How it evolved. It changed, Market Segmentation became a big deal. Technology was suddenly inventing new internet industries. What happened is we had to figure out ways to cover that. Also, management had to figure out ways to manage that. The idea of a professional manager came. We were early uncovering women. Whoially we covered women were a handful of maneuvers. Hazel bishop created the first n this first type of lipstick. We did not really get serious about what happens within corporations with women and the challenges for them until 1975. We get a large project, a bunch that are still great. I was surprised i still read them. I was at a lot of the things people say today. Admin says one thing and a woman says the same thing and it is considered to be shrill. Those quotes are still sent by someone in Silicon Valley this year. We are still talking about that. We started out with not much coverage of minority businesses. A lot of what we had was pretty bad. I had a chance to go back and. Ead some of the stuff right in the streets. Suddenly everyone decided we will think about that. We are talking about black empowerment in business. It was interesting to see how we took that. We got more sophisticated. The 70s came along and i came along. We were doing a lot more coverage and wondering about not just the positives of that but thatabout economic changes are starting out. We have been really good in saying this is how society goes. Business people need to know more than just the accounting. Carol we turn to paula dwyer. She joined business we back in 1985. I was going through a huge transition. There was a book that was largely covering industrial america. It was largely edited and written by men. It was a staple version of various newsletters. Over andpherd took it he really changed it. Bureaued the washington where i was located. He did a lot of things to liven it up. Carol when you think about the different sections. We were talking throughout the week about the 90th anniversary seems to beything separate politics, businesses here, technology and now it is all in for all interconnected. Paula they did not have Washington Bureau. They had evidence or from the same place. A trade mentality instead of a narrative mentality or profile mentality or even talking about how politics enters into a lot of the business stories. The Washington Bureau really changed the look and feel of business week. Jason it does feel like the late 80s and into the early 90s was this seminal moment when washington seemed to wake up and say hold on a second. There is business going on that we might need to keep an eye on. Think about the lbo era and a crevice showed up on the cover. Kravitz showed up on the cover. Paula it was people like mike milken and having crevice henry kravitz. There wer