Transcripts For BLOOMBERG Bloomberg BusinessWeek 20170501

Rest of the continent. Britains financial commitments, a guaranty of rights. The resolution of the border between Northern Ireland a few items as far as that. Less than one week to go in the Marine Le Pen taken a exit policy. M her she later told the newspaper that the euro is dead but she still wants to have two currencies. The other one for international trade. The poll shows proeuropean centrists Emmanuel Macron having 59 while le pen trails with 41 . Push Commodity Prices lower gains to april. Declining from a fiveyear high. 51. 2, it fell from a reading of 51. 8 in march. The worlds secondlargest county is poised to slow after unexpectedly picking up 6. 9 . The first three months of the year. It could by 51 of the near bankrupt National Carrier with banks and state investment firms as minority partners. Peculation has been mounting 49 stake. Ys says a is teaming toox to buy tribute media. According to people familiar with the situation. Bid. Would arrival a by blackstone while fox contributes stations that will join. The impact from the spending bill. Wti. This is bloomberg. Oliver welcome back to Bloomberg Businessweek. I am oliver renick. Minister slides from posterity to poverty and into chaos. The effect on the latin america region. Canada with Justin Trudeau. Opens up minister about working with donald trump. The Prestige Power and celebrity influence of the coo of facebook and the bestselling author. All that head on Bloomberg Businessweek. Carol we are here with editor in chief megan murphy. The first story we take a look at in opening remarks, venezuela. If we look back 10 years ago, it was an emerging market that was firing on all cylinders. Different story today. Megan incredibly different story. The thing i like about this piece is exactly that issue you bring up. There is a quote in that piece that says they cant picture a country that has fallen so quickly, so fast, not just economically or markets, but the actual impact on people. The statistics in that these are so alarming. The average venezuelan is losing 19 pounds, the struggle to get access to food. Oliver does this signal a change of ideology or regime shift in terms of political ideology within latin america . A lot of times these leftist governments were favored and looked up to by their regional peers. Megan absolutely. You have hugo chavez as the most prominent example of someone who swept in on this populist hide. Latin america was populist long before we were populist. They were traditionally left somewhat alone. Venezuela had the advantage of having such a huge oil economy that was such a large exporter and when we had oil prices where they were at the time above 100, it was an incredible boon to their economy. There was a tremendous amount of investment down there. It was looked at as a darling. There are always infrastructure issues there, getting distribution of wealth, but when we look at what has happened since over the past decade in terms of the level of corruption in venezuela, the stifling wealth inequality that now exists in that country, every government confronted with massive scandal across core industries, and actually to appoint goons squads in some respects with maduro taking out opponents, it is a throwback. Frankly, im not sure the world is watching as much as it should be right now. Oliver you guys look at something that everyone is focusing on, which is taxes and what the Trump Administration will do for companies and individuals. What are the Big Questions you ask . Megan we try to go behind the headlines. Yes, everyone is talking about taking the corporate rate down to 15 , maybe looking at the individual brackets, taking that rate down as well, small businesses, llc structured as passthrough entities, including several of Donald Trumps own businesses, then we have this long promised tax repatriation holiday for large corporates that have so much money offshore because they have lower rates there instead of repatriating it back to america where they would be subjected to a higher rate of tax. What we have focused on is the important question, it is well and good to say you will cut taxes, but lets look at the businesses it will affect. If you take the rates down, we know from individual earnings that you only get taxed on the money you make, so a lot of the Fastest Growing companies in america are highgrowth startups that actually dont generate any profits, so for them, taking that tax rate down does not matter. What they really need is changes to the code, simplification, and investment in industries that would help them grow faster to generate some money they would be taxed on, but i do think when we look at the enormity of the tax package and the three prongs i outlined, the ability of him to get this through congress is going to be we will have to see how much he gets through. Carol cover story, bloomberg editorinchief John Micklethwait caught up with Justin Trudeau and talked about a lot of issues, including trade. Megan im sure john will talk about it, but the thing that stands out to me with Justin Trudeau is when you look at immigration, lgbt rights, trade, is he the last traditional picture of a liberal we think of . He really goes into that. I think my favorite part is why canada has not been subject to this wave of populism. Justin trudeau is in a strange position. On one hand, he is carefully positioning himself as the antitrump. That is very much what he is appearing, he is the last sort of the liberal leader of a country. Trump has been useful to him because it has enabled him to put slightly more hard lines around his own image which was getting fuzzy. Now by definition he is in the opposite camp then donald trump in a lot of things. On the specifics of what happened, donald trump is attacking him about milk subsidies. Or strangely, it could be one where donald trump has a reasonably good point from the point of view of Many Canadian consumers. If you are a Canadian Consumer of milk at the moment, you pay around 500 extra to get this extensive milk, which donald trump wants to challenge from wisconsin. The stuff to do with lumber is more complicated, but trump is upping the pressure on canada in the same way he did on mexico. Carol i feel like any leader you ask about donald trump, they are very cautious. I feel like the Prime Minister was as well. Do you get the feeling they have already met, do you get the feeling he understands how President Trump operates . What is interesting about leaders of the world is there are all learning how to deal with the donald trump. In a strange way you could say they are learning how to deal with the unpredictable, which sounds like a strange way to put it. I think angela merkel, you see the same language from her, a little bit from the chinese. They are all saying we know he goes off the rail every now and again, but we still think there are fundamental interests that bring us together. I think the difficult thing with the trump method, which is to exaggerate and go for things in a big way, and then come back, i dont think donald trump was to have a fullblown trade for with china. He just wants to howl and shout and in the process adjust the barometer slightly. But there is a certain point at which you push against things which are really difficult for politicians, and there comes a point where if Justin Trudeau does not stand up to donald trump, he looks weak, and that is where the problems come. If you think the problems are big and that dynamic in canada, look at china. In china, that is a really big issue. There you have president xi jinping, the year when he is maybe deciding whether to stay longer as the countries leader. He cannot afford to look weak against trump, but even Justin Trudeau faces that. Carol you also talked about the legalization of marijuana. I am assuming, you know, they are working towards it. Yes, the law has gone through. It will probably take a couple of years to come through. Like many of the things that Justin Trudeau is involved in, there is a bold signature statement of policy, but the details need to be examined in different ways. One of them clearly is who will make money out of this. Is the government going to tax it . How is it going to work . He has definitely jumped over the bridge that many, or the fence, that many people see in front of pot legalization, the idea that this is a way of all the health care risks. He has very much rejected those. The other way around, he argues passionate that because you dont know what you are buying from an illegal dealer, there is greater risk of damage to your health. They can monitor it and legalize it, and it will be safer, and that is a long legal argument from a group of people. The question of how you make money out of it, which is an interesting one, we have not worked out, and he certainly hasnt. Oliver turning canadian Prime Minister Justin Trudeau into a cover model was the job of rob vargas. He is naturally photogenic, so we sent a photographer to where he was being interviewed in toronto. He did not give us a lot of time. I think it was around five minutes or so, but we ended up with a lot of good shots, some where you see him in a way you have not before. Oliver why this one . Im sure as you said there are a lot of photos here. I notice in this one is the only one where there is a reflection of him, more thoughtful perhaps. When you see world leaders, the portraits seem to be formal and little bit serious. He does have this pensive look, but also he is sort of like facing a reflection of himself. There is this kind of blur, vignette around this photo that gives it a dreamy quality come so we thought it was an interesting way to see world leaders, especially one so handsome. Oliver up next, a border county banking on President TrumpS Immigration plans to spur muchneeded job growth. And, the legal battle that could be brewing in the federal government over protected land in the state of utah. Oliver welcome back to Bloomberg Businessweek. I am oliver renick. In the Global Economic section, how a border town in texas is swelling its objections to trumpS Immigration plans in the name of job creation. What happened in the county in raymondville, texas is a unique case on its own. Before the policy of the obama administration, back in 2015, there was a riot in thiS Immigration prison. The inmates claimed the prison was being mismanaged. The toilets were overflowing. They lived in these kevlar tents for the most part. And one day they came out of their tents with knives and spears and took control of the prison. That eventually led to the closing down of the county correctional center. This was a 3000 bed facility. It was the largest employer of the county in texas. This was a county that had 20 unemployment in the late 1990s, a very Poor Community that needed these 400 jobs. Those jobs went away. About 2. 5 million in revenue went away for the county, and then the they sued, a year later they sued mtc, the operator, and within months, there was a sale of the facility, and now they are in talks with i. C. E. To actually get back into immigration detention, and the county is hopeful it works out because they need these jobs to come back. They are pretty desperate. Oliver this quickly becomes an economic for the county, and for raymondville, which you visited. Describe the interplay between these private institutions, private prisons and the county government, because it is seem somewhat complicated. It doesnt seem totally obvious. Tell us how they can incentivize the prison to come back to their town, what they have to do differently this time. Well, there definitely needs to be some amount of incentives, there needs to be jobs, some revenue for these communities, but it needs to be enough to compensate for the fact that this is almost a 90 hispanic community. They all this is south texas. The Rio Grande Valley all voted for Hillary Clinton in november. They are fiercely opposed to the president S Immigration policies, so for this to work out for both parties, there needs to be incentives for the county. And mtc has, as a result, taken the 69 million in debt the county owed to bondholders and in exchange now owns the prison. They own the prison. They own the debt, and they will offer some amount of tax, property tax revenue to the county, to the city, to the local School District that will amount to 2. 5 million, and this will probably increase their budgets by about 33 . It is a big deal for these local communities that have, for the better part of a decade now, been really entrenched in the private prison model, which obviously does work to their benefit. The companies that have facilities in these communities are able to say, look, there is a demand for beds. You guys have them. You guys need jobs and revenue. Lets make a deal. Oliver in the politics and policy section, President Trump calls for a review of the 1906 monument law, and at stake could be an executive order by president obama. Here is editor matt phillips. Bears ears is a swath of more than one million acres in southeastern utah. It is desolate, rugged, beautiful. It is now a National Monument. It is one of the last things president obama did before leaving office. He designated this part of utah a National Monument, which means not only is it already owned by the federal government, but you cant commercially mine it or do any development on it in perpetuity. Carol that is it. That is it. This is a National Monument just like yosemite and the grand canyon. That sparked controversy in utah, especially Republican Leaders there who are saying, you did not talk to us, no local input. This deprives us of local revenue. There is debate about how much is down there, but there do seem to be sizable amounts of uranium deposits and oil and gas. The question is whether you can actually recover it, but they would rather be able to find that out themselves. Oliver interesting. Carol can president s just do that . Can they just make it a National Monument . They can. The 1906 Antiquities Act signed by Theodore Roosevelt established that authority, and no president has designated morland as National Monument as president obama. The question is that is up for legal debate is we know this gives you the power to bestow status. Does it give you the power to rescind it . And that is what President Trump is interested in. There is no legal precedent. No president has rescinded National Monument status. This goes back to the only time a president really tried was fdr in 1938. He sought counsel from his then attorney general and said can i do this . There is a decrepit Civil War Monument in south carolina. He said unfortunately you cant my reading of this law is that you do not have the power to rescind, only to bestow. So for the last 80 plus years, that is where it set. President trump seems inclined to test that legal theory. Oliver as you point out, there are some who would challenge the veracity of that, saying there are certain grounds by which you can justify going back and resending, is this going to become a legal battle . President trump signed an executive order this week. It was not a full frontal assault. The concern among for environment to list was he would resend National Monument status on bears ears. He is basically telling his department of interior secretary to study this for 45 days and come back and submit a suggestion to congress and the president about what to do. It doesnt say anything about shrinking necessarily, so there is this question shrink by how much . If they take 300,000 acres, does that raise red flags . Over the course of the past couple of months, there have been legal efforts on both sides to establish the groundwork for giving the president some sort of cover to do this. John yoo, most notably of the george Bush Administration, the author of torture memos who gave the Bush Administration the rights to use extreme measures and torture penned a memo in march basically outlining his theory that, yes, the president has Constitutional Authority to rescind this, and their thought was to give trump legal cover to rescind this, which she hasnt done yet. It doesnt mean he wont try though. Oliver up next a Movement Towards financial deregulation around the globe could get a lot of momentum fast. While investors got giddy after the election, u. S. Consumers to not follow suit. We will show you why. That is next on Bloomberg Businessweek. Oliver welcome back to Bloomberg Businessweek. I am oliver renick. You can also catch us on the radio, sirius xm 119. In the markets and finance section, how washingtons efforts to loosen Financial Regulation could spur a dangerous race around the globe. Regulators over the last couple of months have looked at at least two big factors that happened last year, the election of donald trump and the vote in britain to leave the european union. And, regulators have spent the last better part of the decade basically trying to ratchet up rules to prevent banks from taking exceedingly risky bets and to make them safer and prevent the potential for future bailouts, so they are looking at those two factors and they are getting wary, thinking about how countries might compete to loosen regulations to attract business. Oliver ok, so when we talk about the folks that are worried about this, lets get a picture of who those institutions or thought leaders are, whether central bankers, politicians. In your story, tell us who is giving that view that is of concern. There are a lot of people on the other side that say, hey, we need this. Who his leading the front to say lets knock it carried away here . Not get carried away here. Bank regulators are essentially the ones voicing the strongest concerns about the possibility that they could see a race to the bottom or can see jurisdictions competing for looser rules to attract business, or some nibbling around the edges that over time might develop into something a bit more than a nibble and start to concern them, so it is a concern among Bank Regulators. Oliver what here did these regulators see the most dangerous to tinker with . They see capital levels, tools that regulators have put into place to wind down the bank should it get into trouble, so they want consistent rules around the world because all the large banks that could pose a systemic threat are global, so when you start to see different rules in different jurisdictions, Bank Regulators start to get a little bit concerned. Rules will never be perfectly identical, but they wanted to be very similar to have confidence that each day are strong, resilient, and they can trust them. Oliver in the Global Economic section, with questions mounting over the white houses proposed tax reform as well as an absence of Infrastructure Spending that President Trump promise, the u. S. Economy is still moving slowly. You can see an explosion of confidence among consumers and also from the National Federation for independent business amongst small businesses. It just was, like, almost unprecedented, the wave of optimism about what the Trump Administration was going to be able to deliver. Oliver as to whether that optimism translates into real action, one question to zero out the Playing Field is what that transmission mechanism usually look like . What is the timeframe between a pop and capex spending, how long does that take . That is a good question. I did not analyze the typical lags, but what we can see it was november obviously, and here we are in april and they have had plenty of time to hire if they were so enthusiastic that they were sure there would be a boom in the economy. Carol six months, right . Well, five months. They have not done it. The march jobs growth was under 100,000. I know the numbers bounce around, but even just taking the threemonth average, first three months of the year, the average growth was lower than in the Previous Year before the election. Capital spending, if you take out some of the volatile components like defense and aircraft, it was up only up 0. 3 in the most recent month over a year earlier. Capital spending is what you would do if you were sure this was for real. My article is saying that there is a lot of optimism. There is a lot of hope, but companies, after having been disappointed year after year through the obama years where there were these expectations, yes, now the economy is finally going to rally. Did not happen. They are suspicious and holding back. They want to see something really happen before they will commit money and hiring. Carol same on investors, perhaps getting enthusiastic to quickly. If youre talking about Infrastructure Spending and changing Corporate Tax policies, if you are talking about rolling regulations, what have you, these things take time. They do take time. In fact, the Infrastructure Spending was never really likely to hit the economy in 2017. The earliest that anybody thought when they modeled it out was really it would be more of a 2018 phenomenon, even if it passed in 2017. Now of course it is being pushed back later than that because it is getting caught up in all the other legislative bottlenecks in washington. Oliver up next, Sheryl Sandberg on Silicon Valleys fear of failure. Then, chinas supersized embrace of robots. Of robots. That is next on blo of robots. That is next on blo ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Ways wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. Oliver this is your bloomberg first word news. I am yousef gamal eldin in to buy. Republicans and democrats averaged a deal that will prevent the u. S. Government grinding to a halt. The on 1. 1 trillion spending bil rejects much of President Trumps wishlist, including money to build a wall in the u. S. Mexican border. Prime minister theresa may is sticking to her guns that britain should be allowed to negotiate the free trade deal with the u. S. , the same time as discussing departure arrangements. 27 nations agreed over the weekend. Their priorities was a guarantee of rights for e. U. Citizens in the u k and the resolution of the border between Northern Ireland and the republic. At the end of negotiations, we need to be clear not just about the brexit negotiation, but also what our future relationship is going to be. These negotiations are going to be tough. I want to ensure we agree on a trade deal and our withdrawal arrangements so we know what both of those are when me leave the european union. When we leave the european union. Tosef Marine Le Pen appears have taken a step back from her euro exit policy, saying there is no rush. The euro is dead. She wants to bang currencies. One for daily use by the population and one other for international trade. The latest poll shows Emmanuel Macron in support of 59 of voters. Meanwhile, lower Commodity Prices push chinas factory gauge lower in april, declining from a fiveyear high. To manufacturing pmi fell 51. 2 from a reading of 51. 8 in march. That is missing analyst estimates. Estimate inficial the worlds second economy is poised to slow, unexpectedly picking up the first three months of the year. Some of the key Asset Classes we are watching for you after the announcement or initial details from that spending mill to avert the shutdown, most european markets are shut for the may day holiday. Going to the bloomberg dollar index, gaining strength, up. 1 . The dollaryen trade up as much assist the 1 . Wti, 27 per barrel after drillers added downside pressure. I am yousef gamal eldin and i am back in half an hour. This is bloomberg. Welcome back to Bloomberg Businessweek. Coo Sheryl Sandberg out with a new book about the importance of emotional honesty at home and in the office. We will show you how sean hannity is becoming the top dog at fox news, as well as apple getting into its first tv show. All that, still ahead on Bloomberg Businessweek. Oliver we are back with Bloomberg Businessweek editorinchief megan murphy to talk about more must reads in the magazine. Lets start in the tech section because we are talking robots. Tell us what you are looking at. Megan we are talking robots and we are talking china. This is another example of where china has lagged in terms of expansion of robots both in its workforce and use by companies, but they are making a massive push to catch up and dominate the robot sector. China actually only has about 50 robots for every 10,000 workers, compared to in the u. S. , 176, or up to 300 in some places like germany. So they know they do not have enough to be the leader in robot innovation. But they are pouring in a ton of resources. Again, whenever you are talking about china, youre talking about state resources going directly into this, and they are encouraging Homegrown Companies to really push to develop the most sophisticated robots, the they can export to other ones countries and take a bigger share domestically in terms of china upping their reliance on , robots and making them leader of supplying robots to companies around the world. There are few countries in the world that can afford to make these kinds of investments in these industries. We have seen china do it before, and we certainly see them do it right now with robots. Carol lets talk about companies and industries. You guys zero in on rockwell automation. We hear about a lot of companies trying to diversify and not very successful at it. Rockwell is. Megan you know how they have been successful at divers defying . Doing something a few companies have a hard time to, they run courses for white men, exclusively for white, male managers, and said to them that these are the experiences that women go through, these are the experiences that minority and people of color go through in the workplace, and these are the kind of experiences you need to as a white, male manager need to grapple with if you are to encourage advancement across all areas of your workplace. The story is compelling. The numbers that rockwell is turning out of minority representation in engineers, when you get to 25 , any company in Silicon Valley would be proud of that number. And really pushing that. They acknowledged it is not perfect. There is a lot of work to go, but in terms of running targeted programs, the dominant population, their manager ir managerial workforce, this has proven to be successful. Carol they are holding on to those workers. Megan they are holding on, they retain as well, both on a diversification and retention tool. Oliver it seems like from the story that it is an education to a large degree, and also from some of the anecdotes, frank discussion to talking about these issues. Megan we are all in the workforce. The challenges different people go through challenges that no one else would even anticipate getting together and saying this is a challenge. Is how this person experiences this that is different than you and focusing on that difference and talking about it has shown to be highly effective. Oliver lets talk about a big story in the features section, facebooks Sheryl Sandberg. A lot has been written about this woman. She has a new book out, option b. How do you find a new way to talk about this woman that a lot of you will have been talking about . Megan she has a new book coming out. Obviously the author of lean in, which catapulted her into another level of fame that is higher when she was coo of facebook. Look, we really wanted to take a look at Sheryl Sandberg and look at the effect she has had throughout Global Corporate businesses in terms of that kind of leadership style and management style she has advanced at facebook. We call her the queen of sharability. Bringing an openness into the workforce, saying dont leave your life at home, bring it into the workforce, share what is going on. She lost her husband very unexpectedly two years ago, that is a lot of what the book is about, about over coming obstacles, grief, and moving forward. And i think we dont shy away from the fact that this approach is not all halfback. There are people who say, look as authentic as this may seem, this is my place of business, where i go to do a job. There are people who think it strikes as always working on some operating level that the personal is just sort of a screen for driving their business forward. Oliver we got the details on that story as well in the interview with Sheryl Sandberg from reporter sarah frier. Sarah we know sandberg, the author of lean in, this mix between an emotional and professional person. What we havent seen so far and what my story is trying to convey is just how much that openness has reflected on her career at facebook and the culture within, and also whether this helps her as a professional. Her latest venture into openness, the writing about her husbands death, something no executive to this point has really done shows just how far she is willing to go in order to really connect with people outside of facebook. And it seems to be starting this new way of communicating as an executive. And, you know, she is not really saying it is strategic, but it has helped facebook. Facebook is a company in the midst of a lot of image problems more so than financial problems. Right . They are doing great financially, but imagewise, i mean this company has had to , deal with the fake news debacle, they have had to deal with murders being streamed live on their platform, they are battling regulators in europe and at home. This is a company that is at odds with donald trump on many issues, and what i have found when i talk with a lot of researchers is what people are looking for in their leaders is a little bit of vulnerability, something that makes them real people, and that helps us trust them and helps us forgive them, and sheryl has been an expert at that. She is like the oprah of corporate america. She is just so good. Oliver yeah, no, it is an interesting point. As you point out some of the things facebook has had to deal with, and incredibly Successful Company in many respects, but also of course as we know pushing a lot of boundaries and creating a new type of business, a new type of product, and among that, as you point out, they have been in the headlines for fake news, streaming violence, a lot of stuff, and i guess to a certain extent, it makes a sense that a very new product will breed a new type of whatever you want to call it, pr, corporate management. Is that kind of where she evolves from . Sheryl so, she sort of became an accidental sharer. She told a reporter when she had her son, she was an executive at google and realized she cannot work from 7 00 a. M. To 7 00 p. M. Anymore and she , started leaving the office sneakily. Nobody told her she couldnt. She had to see her son before he went to bed, and that continued for years until one day just before facebooks ipo, actually, she told a reporter that she leaves the office at 5 30 and headlines blared everywhere, and she realized that now she was in a position of power, the stuff she could say and still be considered a respected, highpowered woman, she had sort of an almost responsibility to say it. But then she took me through i sat down with her at facebooks headquarters she took me through a lot of the steps it took for her to get to the point where she actually was more comfortable. And as you said, oliver, facebooks product was a huge part of it. There was one moment in 2011 where facebooks head of comms came up to her and said, we are opening profiles, setting you up, setting mark up, and she and Mark Zuckerberg were like no, we dont want to do that. And you know, the Facebook Comms person said you have to. It is your product. They are sort of leading by example. Oliver up next, what the fall of bill oreilly means for fox news and anchor sean hannity. Then, apple dips its toe into hollywood. That is next on Bloomberg Businessweek. Oliver welcome back to Bloomberg Businessweek. I am oliver renick. In the features section, fox news host sean hannity has become one of the biggest winners in cable news. This is thanks to his early backing a President Trump. And now, the fall of bill oreilly. We spoke to a reporter. Reporter he is an anchor at fox news. He anchors their 10 00 p. M. Hour, and he is one of the personalities who has been at fox since its launch in 1996. He was there at the beginning. He richly had a show called Hannity Colmes it was a leftright crossfire style. And for the past several years he has been anchoring the 10 00 , p. M. Hour. He has always been basically somewhat in the shadows of the top personality at fox news, who was always bill oreilly. Oliver that is the why now element then. Are you choosing to focus on hannity because there is a shift of power here that positions him differently . Reporter he is stepping up into and incredibly pivotal role at the network during a really difficult time. I mean it has been a tumultuous , year for fox news. First, they lost roger ailes, the founder, chairman, and ceo of the whole network, then they lost a couple of onair talents, megyn kelly left, and now bill oreilly has left the network. Felix and so, it was such a stable lineup for so long, and all of a sudden they are switching everything around. They have new people doing this and that, and hannity has been the bedrock. I think now more than ever as a force of stabilization in terms of connecting to the brand and keeping the brand going, it is an important time for hannity and the network. Oliver the bedrock is interesting because he has obviously been there because as you point out he has been there for a long time. There were probably instances where he saw the future going a different way. There were timeslots taken by megyn kelly, at 9 00 after bill oreilly, and he stayed in the later part of the night. I remember that was a big deal. So how does this sort of position him now . How does he feel about the situation . How does he retool his presentation to become the fox news bedrock as you say . Felix yeah, well, i think part of it is fox news is fortunate to have him because he has this incredibly close relationship to donald trump, which goes back to last year. He was one of the first conservative commentators to jump on the trump bandwagon. He was really supportive of trump and gave trump had a lot of air time, had town halls with trump. Trump like lived on his show. Oliver unabashedly. Felix yeah, he was a huge supporter. And even when trump was struggling, and it looked like trump was going to perhaps lose, hannity never wavered. He really hammered other conservatives who were kind of waffling a little bit about whether they were going to back trump. And you know i think trump has , respected the loyalty and given back to hannity. He gave hannity the first cable news interview after he became president. He has given six of his first eight tv interviews on fox news. And, you know that is great for , fox news ratings. And you know, hannity is in the , middle of that because he is reportedly talking to the president frequently. He has a real line of communication to the white house, which is valuable to the network. Oliver speaking of television, in the companies section, apple is moving into tv shows. Here is reporter lucas shaw. Lucas apple is going to produce as many as 810 different tv shows or video series for apple music, and it is acquiring projects, different documentaries, a couple of documentaries streaming at the tribeca Film Festival now. One about Legendary Music impresario clive davis, and another about bad boy records, puff daddys record label. The idea is there have been two currents that have happened in the Media Business this past few years that apple has had to respond to. One is the rise in streaming music and this connection of music and video best encapsulated in youtube. Which is the bete noire of the music business, anyone who wants to pay for music video or entertainment. And the other is this growing trend in Silicon Valley towards an interest in producing your own video series. Inspired by the success of netflix and amazon, we have seen google, facebook, and twitter have all jumped into this. Apple only has apple music, which is its music app which was , supposed to be the competition for spotify and youtube, and it is now is using it as a testbed of sorts for different video projects. All of this is led by jimmy iovine, a famous record executive. Carol you write in your article that this is about apple keeping people tethered to apple products and the iphone specifically. Lucas yeah, apple makes two dollars out of three dollars selling iphones. It is the house that steve jobs built. And you know the best way of , keeping people tethered to the iphone is with services they hope that gives people a reason to use the iphone instead of any competing products from samsung, google, and whatnot. You know you have seen the rise , of different apps and services that could potentially cause people to abandon the iphone or feel that it is less special. You know the iphone has been , presented as a symbol of cool for so long. Now, most phones look more or less the same, so one way to keep ahead of the competition is having Something Like apple music, a Service People love and can only get on that phone. Carol thanks to netflix and amazon, we have seen some really nontraditional content companies create content, and create content people really like and that does really well, so it must seems logical for apple to move into this area and be a content creator. Lucas yeah, look, apple for a long time has avoided going into hollywood because production is lowmargin, really costly, intensive. There are lots of reasons why you dont want to do it. And if you are a tech company, you usually want to be a neutral platform. You want to sell everyones movies, tv shows, music, etc. But as there is now is a growing demand or desire to have a service that can stand out, one way of doing that is by making original programming. And whereas you might have been a little reticent before, you see Companies Like netflix and amazon succeed and say hey, why can i not do that too . Carol lets talk about the guy behind it. Jimmy iovine created interscope records, beats music, now under the apple umbrella. This is a guy who is really well connected in the entertainment industry, and this has to really help him and apple in terms of creating content. Lucas yeah, i mean he is one of the least applelike executives out there. Apple is a cautious company. Everything is they test something a million times before they release a new product. When it comes out, it has to be perfect. Iovine, to jimmy iv jimmy and he just wants to throw stuff out there and see what works. It is a very hollywood approach. It is an approach that has at times caused problems within apple, but when it comes to trying to put together, get exclusive music or putting together a video series, he is vital. He is part of apple, but running his own company at the same time, trying to have been breathing room to experiment and see what they can come up with. Oliver up next, famed chef Wolfgang Puck downsizes for his latest restaurant in West Hollywood with a single table for 10. And, one of the pioneers of indoor skydiving. This is Bloomberg Businessweek. Oliver welcome back to Bloomberg Businessweek. I am oliver renick. You can also catch us on the radio at sirius xm channel 119. And on a. M. 11. 30 in new york. A. M. 960 in the bay area. In asia, on the Bloomberg Radio plus app. In the etc. Section, indoor skydiving is catching on in popularity. Caroline winters spoke to the entrepreneurial daredevil behind the trend. So i got to fly with two of the best coaches in the world, these two brothers from utah. And they just did a brief kind of intro, then put on a flight suit and helmet for protection for the wind, muffles sound, and you just come in through a doorway. It is this cylindrical glass , about 14 feet in diameter, 45 feet tall, and you lean into it and it really just pick you up. You feel a lot of wind, so actually, after doing this for 10 minutes, the next day, i was more sore than i had been in a long time because you relax, but when you are learning how to do it, you tense up and feel like you have to fight the wind a little bit. [laughter] oliver it is your first time flying. Caroline first time flying. oliver so this is a really cool activity, fun thing, but also a big business. That is why you are writing about it in the magazine this week. You are profiling a pioneer in terms of bringing skydiving indoors. Carol he is a lawyer who wanted to do this. Caroline exactly, no, i love it. he is a lawyer who less than a month after getting married to his wife, who thought she was marrying this nice, stable lawyer, he said, i really want to go pro in skydiving and want to quit my job and do this full time. And basically, you know, there was no money in it at that time, and he did pro skydiving for a number of years, then came across this tunnel. And at that time, there had been vertical tunnels for a long time since the 1940s, but he found a guy in orlando who had patented a new type of tunnel that had smoother air, that was less noisy and less dangerous. A lot of the fair ride cushions versions would spit you out on a pile of cushions. He was so enthusiastic that he started hosting camps, then he bought the business, and has now grown it to the point where he has about 1000 employees. He has more than 60 tunnels worldwide. Carol you talk about the intellectual property in the article. Everybody has to pick up the magazine to read it or go online to read it, but you have to talk about the costs. Its not inexpensive. Caroline now it is not a cheap , sport. You are paying, typically for an intro package, you are getting two minutes of flight time for 90. That is pretty good. At the westchester tunnel, where i went, they told me there are a number of guys who will put down 80,000 or 90,000 to buy hours in bulk because you can get a better rates. They will all that with friends. Carol the cosco rate. Buy in bulk. Caroline exactly, but that is still a lot of money. So that is still a lot of money, but they have a lot of startup guys, media types, and also people who completely get addicted to the sport. Oliver it sounds pretty fun. Carol the only problem is the next time you need to take the two of us. Caroline yeah. Carol for the full journalistic story. Oliver staying in the etc. Section, our reporter sheila our reporter, sheila got to do a little bit of , Grocery Shopping with none other than Wolfgang Puck as he picked out food for his new restaurant the rogue experience. Sheila i went to the santa monica Farmers Market with wolfgang and one of his chefs and we spent an hour looking at , produce that he wanted to use in the menu of the rogue experience, which was the restaurant he was opening in West Hollywood that night. And it is amazing that someone like him who is behind a 400 million restaurant empire is doing produce runs, but he really does get excited about getting out there and seeing what the ingredients are, meeting the fruit mongers, trying out the samples, and figuring out what will go on the plate. Oliver what is this rogue experience . Because i think that obviously Wolfgang Puck has been around for a very long time, but do people still associate him with bustling restaurants . Sheila they do of associate him with bustling restaurants. His restaurant, spago, here in Beverly Hills one of his first , and one of the most iconic is still definitely busy. Its a place where you can find celebrities. He also has cut, a steakhouse with locations all over the country and world, and there are a lot of people going to his restaurants. In fact if you go to any major , airport, you are likely to see of of the lower end versions Wolfgang Pucks restaurant empire there. But as he has commercialized, some people say the reputation of him as a sort of change maker in the Food Industry may be has suffered a little bit, at least when it comes to the kind of gastronomic things you can do on a plate. So at the rogue experience, he and his chefs really get to do that. They get to create the kind of meals, tasting menus, that push the boundaries of what you are expecting from a restaurant and that are more experimental than say the plate of pasta that you , might get at a spago. Oliver all right, so a pushback may be against what some of his critics described as an over commercialization of his brand perhaps, but you got to see what he was picking out and were there, so give us the details. What are people eating here . Sheila every night, it is going to be something different. In fact, every week the team of chefs who are spearheading the menu at the rogue experience changes, so he actually picks chefs from cut, from spago, from his catering company, and puts them in that kitchen at the rogue experience together and has them come up with the menu every night, and usually every week, that team will change, so it is hard to say. On the night that i went on the , first night, they did a chili dog that had this kind of tofu seasoning. That was one of the first bites, and it was delicious. It was really fun. It was not stuffy. I think they are trying to do the kind of fusion, kind of genrebending cuisine that is going to make people feel like, wow, this is something i cant get anywhere else. Oliver Bloomberg Businessweek is available on newsstands now and online at bloomberg. Com. More Bloomberg Television starts right now. Yousef i am yousef gamal eldin dubai. Top story. Republicans and democrats have reached a tentative deal which will prevent the u. S. Government grinding to a halt. 1. 1 trillion spending bill funds most federal bodies but rejects much of President Trumps wish list, including moneys to begin building a wall on the u. S. Mexican border. It should keep the government open to the end of september. Prime minister theresa may is sticking to her guns that britain should be allowed to negotiate a freetrade deal with the e. U. At the same time as discussing his departure arrangement. Remaining 27 nations agreed over the weekend that their priorities were