Ellen so there are people who think hong kong should separate from china and go off on its own. It is a small movement. But it has taken more root than most people expected. A couple of years ago, there was a lot of protests about hong kongs role and its relationship with china. And people dont like that china was insisting at one point that they come up with the nominees to be the chief executive. Anyway, this is a continuation of that debate. Hong kong is very dependent on china for water, food, lots of things. Of course, it has a history as being a british colony. And sort of 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. Ellen it is making it trickier for the chinese and the people who live there. The economy is really in bad shape for a variety of reasons. Housing prices are very high. There are a lot of people who live in hong kong who have dual passports because when the british were withdrawing, the question was where they were going to go. There is a lot of uncertainty. Carol you have a story about the aldi family. There is quite a dispute going on spilling into the aisles of the supermarket chain. Why this battle . Ellen so, aldi is a private company. It is a supermarket that were beginning to see some in the u. S. It is run by the descendents of theo albright. His fortune was worth something 50 billion. It is split into aldi north and south. Now, one part of the family is fighting. Most of it has to do with the spending of the sisterinlaw. Carol it is always an inlaw. One of the sons thinks she is spending too much. That isnt good for the empire. That isnt good for the store. Aldi is known for really strippeddown stores. Really frugal. This family is 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. Ellen well, that is the question, because of her spending and the dispute will that mean they will have less money for the modernization . That is important, because food markets are changing rapidly. Lots of competition. Carol lets talk on the cover story. It is all about walmart. What a great story, a lot of crime going on. Who knew this was going on . Ellen i didnt, but Police Departments all over the country do know. It turns out, walmart is a magnet for crime. It isnt just what you would expect, people trying to steal stuff. Like a microwave or put some stuff in their bag. It is also Violent Crime, very serious Violent Crime. Some of it is in the parking lots because a lot of walmarts are open 24 hours. You can camp out in the parking lots. Some of it is, the experts, say because walmart has fewer people working in the stores, in the front of the stores. The theory goes that if you have more people out on the floor, there will be less crime. It is a deterrent to crime. But it is a huge problem. The people who are really mad about it, aside from the victims, is Police Departments. Carol they are footing the bill to govern the walmarts. Ellen and you have 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. Carol there was an officer walmart. I spoke to Shannon Pettypiece about the story. Gerald rossway, we spent two days running around with him in tulsa as a Police Officer. When we showed up at the tulsa Police Department, his division chief said i want to introduce you to officer walmart. Some days, he spends almost his entire 10hour shift at walmart. He is employed by the Police Department. He gets called to walmart so often for so many shoplifters, or trespassers, that he ends up some days 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. All sorts of things. Carol you did the drivealong. You are a reporter and a good journalist. So tell me what the experience was like. Shannon it is interesting because there is this room in walmart, this Asset Protection room where all the shoplifters and people they suspect of fraud get taken. They get brought to this room. It is almost like this Counseling Center within this giant retailer. We had an 18yearold boy who stole a microwave. He said he stole it because his moms microwave broke. You hear these peoples whole life stories. One woman was some kind of drug abuser trying to use phony gift cards. Another woman we caught there was a victim of Domestic Violence. She came in with a big black eye and was stealing a bike tire and 15 sneakers. And the employees caught her. Into the Police Officer, he kind of in a way jokes about this. He says, i like having all my bad guys in one place. He can just show up at walmart and counsels a teenager and a Domestic Violence victim in a threehour span. In the bigger scheme, he is employed by the tulsa Police Department. The division chief is furious about this because the chief has the busiest commercial district in tulsa to police and cant have one of their officers, and in some cases two or three officers, spending their whole day at walmart. Carol one number you said in the story was over 5000 trips over five years to this one location because of crimes of some sort. Shannon they get calls the vast majority are shoplifting. There is no shortage of Violent Crimes, shootings, fights. About 2 3 of shoplifters have drugs or Drug Paraphernalia on them. I am talking about this one specific store. Across the country, there is no Great National crime database out there so we had to go city by city. Requesting public records on police calls to different walmarts across the country. So, based on the information we found it is fair to say there will be hundreds of thousands of crimes committed at walmart this year. Carol unbelievable. Shannon this year, there have been more than 200 Violent Crimes across the country. That is just the ones we know about from public media reports. Each day, there is some Violent Crime happening somewhere at a walmart across the country. Carol what is the thinking . There are other retailers, other Big Box Stores across the country. What is going on at walmart specifically . Shannon that is what i tried to figure out. Why walmart, because this tulsa store we talking about, the target store had 44 calls last year, hundreds at the walmart. I think part of it is the nature of the walmart. There are more of them, theyre in low income neighborhoods. They have lots of merchandise. You can steal anything in the world from a walmart. That is part of the nature. But there is also a corporate policy that has led this crime to flourish. The past managers neglected the stores. There is aggressive costcutting. The stores went downhill. There are fewer employees per square foot. The stores became disorganized, they moved the famous greeters away from the entrance, and havent taken a proactive approach to crime. It has been apprehend, not deter. Not prevent. The company is very focused on cost, very focused on cost cutting. They have neglected this. They say they are trying to clean it up now, but they have a big problem on their hands. It is going to be an expensive task to get under control. Carol there is a lot of crime at Walmart Stores around the country. What goes into making that cover . We asked the creative director, robert. We sent the photographer out to two of the cities where most of the reporting happened. One of them was tulsa. News to me, open 24 hours a day. He got a very moody shot of walmart at night. You can see this nighttime shot. There was a bunch of cars in the parking lot. It had the creepy mood appropriate for the story. From there, reading the story, there are all these statistics which are surprising. Very ominous looking, very dark. Yes. From there, reading the story, there are all these statistics which are surprising. One of them was on a national scale, a Violent Crime happens in a walmart every day. We thought that in itself didnt need much embellishment. We simply put it on the cover and have an arrow pointing to the sign. Carol it sounds like you knew that this was what you were going to do. You werent stewing or debating over what to do. In the past when we have done walmart stories, we have gone conceptual and playful for walmart stories. This one is serious. You cant have too much of a lighthearted approach about Violent Crime. We knew that we wanted a documentary image. Once we found a statistic that was compelling enough, it did itself. Carol did you automatically hone in on that statistic . There was one other that referred to tulsa. That was that every 8 hours, a crime happens in the walmart. We were debating between those two. We want to speak to a broader trend. We decided to go with the national one. Carol up next, Insurance Companies are hurting when it comes to obamacare. We will take a look at the future of the Affordable Care act. That is all ahead of on Bloomberg Businessweek. Carol welcome back to Bloomberg Businessweek. I am carol massar. You can also find us on radio and on am1130 in new york and am1200 boston, washington, d. C. , and the bay area. In the politics and policy section, a checkup on the Affordable Care act. We talked to zach tracer about why so many Insurance Companies are backing away from obamacare. Youve seen all of the big u. S. Health insurers say they cannot make money on the 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. At an elementary level, they are saying we are getting people who are too sick and we are not charging enough money to cover the cost. They pointed out people may be gaming the system, signing up for a little while, getting a bunch of care, then dropping coverage. There may be some things going on like that driving up costs. Carol walk me through those big u. S. Health insurers and who is dropping out. Unitedhealth, which is the biggest in the u. S. , has said theyre pulling out of 31 of the 34 states. Carol that is a lot. A huge retreat. They have said they think they will lose 850 million this year. By far, the biggest retreat and one of the biggest losses. Anthem sells under the Blue Cross Blue Shield brand. They have said they will have at least 300 million in losses. Aetna expecting Something Like 300 million in losses as well. They are broadly pulling out 11 of the 15 states. Carol what does this mean for the public looking for insurance . Less choice . There will be less choice for people, really in a big part of the country this year. Between the exits by humana and aetna and united health, you will see many places where theres only one or two options. Some whole states may have only one or two options. For people going to shop for insurance, that could be a real problem. Carol you want more choices, hopefully to get better costs. What does the obama administration, this is the legacy of domestic policy for the obama administration. What do they say about all of these health plans backing out . They think obamacare is still a healthy market. They think there will be choices for people. But you have seen the president call for a public option, some sort of public, governmentrun health plan to compete with private plans, particularly in these rural areas where there is not a whole lot of choice. The president has also said there may be a need to think about giving even more subsidies to people to help them afford insurance. Carol up next, two Silicon Valley dealmakers making a lot of waves in the m a world. He made his fortune betting on the collapse of the subprime mortgage market. We will tell you about his next big call. Carol welcome back to Bloomberg Businessweek. I am carol massar. Reporter alex sherman profiles the m a bankers many love to hate. Catalyst is a tech advisory m a firm. They are very prominent in Silicon Valley. They do almost all sell sides. If a Technology Company wants to sell, they will hire catalyst to sell. They have earned a reputation for getting high premiums. So, most recently just a few months ago, linkedin hired catalyst to run its sales process. They sold to microsoft at a 9 premium. If you turn back the clock a few years, they did a number of highprofile deals. They sold autonomy to hp, which turned out to be a disaster. From the sell side, what a great job. Of course, there may have been fraud there with the autonomy case so that comes with controversy. They have sold a number of companies for enormous premiums over the years. Carol as i read your story, this is a company that is wellrespected in terms of how they are able to get great premiums for the sale of companies. But they also seem to tick off other people. The initial lead for this story drew comparisons to sports teams like the new 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. George butros, the ceo, who i spoke to, has irritated many people on the buy side or other advisors that have worked with him. You could argue one of two things. Some people say he is abrasive. Some people say he is aggressive and just doing his job to get the best price available. But catalyst has a few tricks up their sleeve they tend to use, pitting different buyers off each other. That can cause tension. Carol also, lightning round auctions to make a decision quickly . Several people told me one of the tricks they use is basically say you must make your final bid today. Today is the deadline. Some buyers say we would like to do more Due Diligence on this. Catalyst says time is up. You have to hit this price or walk away. That has irritated buyers over the years. They have said we would have liked to have done more or not even bought this. One of the examples is silverlake, which almost bought shutterfly. Someone familiar with the matter told me catalyst basically put a gun to their head. They said they were out. That Company Never sold. Carol a short seller who called the collapse of the market. Steve used to be a Hedge Fund Manager who made a big and early bet on the housing market. He looked at all the mortgages and saw that the subprime market was going to completely collapse. He made a big bet on it. Carol he is not a flashy guy. Not at all. He drives a smartcar. He likes to watch television. He makes all of these movie references. He is very funny, and has this little borscht belt thing kind of going. Carol i love it. Tell me what he is doing right now. Now, he works at newberger and berman, a traditional Money Management firm. He has just started doing these separately managed accounts. He will go long stocks and short stocks the way he would if he were a Hedge Fund Manager. Hes only charging about 1. 25 . Carol that is a lot less if you look at your traditional hedge funds. Normally, it is two and 20. It is a lot lower. It is a little more expensive than, say, a regular mutual fund. But not that much more expensive. Carol 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 seen the performance of many Hedge Fund Managers. That is correct. Investors have always complained about hedge fund fees. But they paid them because they often have posted very good performances. Since the financial crisis, 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 making money. Taking 1 5 of the money you make, that is a huge headwind. Carol up next, what it takes to build a mosque in america. How one financial disruptor disrupted itself. It is all ahead on Bloomberg Businessweek. Carol welcome to Bloomberg Businessweek. Were inside the magazines headquarters, more transparency at what went down on lending club. Plus the pill that made Northwestern University rich. And Driverless Cars are just around the corner. It is all ahead on Bloomberg Businessweek. Carol we are here with the editor Bloomberg Businessweek, ellen. So many mustreads. We talk about turkey, what is going on there . Ellen there was an attempted coup and the president continues to be strongly popular. He was able to put down the coup without a lot of problems but it was relatively