Transcripts For BLOOMBERG Bloomberg BusinessWeek 20171209

We have been talking about the bitcoin so much in the last week. Over the past year, let alone several years, we have not ever seen so much moving in price. One of the things you want to capture this is a staggering statistic. Less than 1000 people hold 40 of the markets are going. With the price going up so much, some of the people we know, when one of these big owners, it can cause an extreme drop in price because of the concentration of ownership in the hands of relatively few good what we are few. What we are looking at with cryptocurrency, forget the broader debate about bitcoin. This is a real problem for the market transparency. A situation where people dont even know who the owners of the bitcoin are. Its not similar to win a big bigo win a bit when a shareholder sells off. Its exacerbating it. We will see things like the cme introducing futures on bitcoin. Will this increase transparency, liquidity and perhaps reduce the impact . Thats the hope, that it becomes a more normalized market. When you go out and talk to people, one of the things about bitcoin and cryptocurrency is watching, the amount of minds that are moving into it. Theyre going to try to move the market. A lot of people still think this is a scam. Nevermind that jpmorgan is also getting into it. There is that accurate i think what is so interesting is will it ever get out of the feeling of it is a scam, speculation, the oldest form of the market, and be able to normalize the market. This concentrated ownership issue, the winkle boss twins on paper, are billionaires. Thats made famous by the investment in facebook and their dispute over that. It has seen an extraordinary change in fortunes of early investors. It has gained a million percent. Thats hard to get your head around. When one start when one big investor starts selling, what happens . And when he has a lack of transparency we have currently. You cannot attribute it. Most the times we do big share selloffs when someone needs liquidity, or an m a deal. But there are systems in place. We dont know what the underlying motivation is, profit taking, concern, they know something we dont. That is the issue. Lets move to the cover story in particular. What happens in a country when 97 of the population who use the internet are on facebook . This is a fascinating tale. We also spent a lot of time talking about fake news. It is really grand zero. This is the philippines. They have a very controversial leader, and its about how he mobilized social media in his rise. The other side is this journal journalist who founded a new site that was launched on facebook and it interweaves how facebook is the only internet some people know in part of this country. 98 penetrations country. 97 penetration. More on smartphones. She almost helped assist his rise, he had such a rise in social media channels, and once he got into power and some controversial elements of his regime came in, clamping down on drugs, we all know the murderous brutal toll that has taken. Other fake news, things in the administration to distract attention. And personal, extreme attacks on her as a journalist. Social media as a tool. Thats exactly what we see. And we have more from our reporter. Maria is a journalist from the philippines and has been there for more than two decades as an investigative reporter. She started an online news site. It does all kinds of different stories, they do investigative stories, lifestyle stories, and they do a lot of political news as well. She really rose to prominence, if we look at january of last year, she combined with facebook to host a president ial campaign debate, and strangely enough, only one candidate turned up, and we know him very well. She invited all five candidates and some of them accepted. As the event near you, some canceled, and the night before the final one canceled, leaving only Rodrigo Duterte as the single candidate to show up. Across 40 College Campuses across the philippines, the event was live streamed on facebook. The question for the candidate, they were crowd sourced on facebook. There was a dynamic relationship between social media and the event. It really the site for this it really gave him a mainstream avenue to broadcast his views. We know he is controversial, the policy he has enacted as residents. When did maria start to recognize this was being used as a weapon rather than a twill and than a tool and get concerned about news appearing that was not real . Early in the campaign, there was a lot of aggressive use of social media. People who work for him online going after critics and opponents and targeting them in a personal manner and in a violent, aggressive manner. There was a troubling aspect to trolling aspects to the Campaign Early on, and there was also the fake news elements. Stories started circulating online and in social media that were not true. What happened to maria when she started to try to tackle domestically what she saw as a kind of propaganda war from the government . It goes to the heart of media ownership in the philippines. Is her company at risk for trying to question the government, their motives and policies . Yes. Marias story is fascinating in part because it has been an evolution. She started reporting about what she felt was a Propaganda Machine being used by the government in order to go after critics. When she started writing about it, the Propaganda Machine essentially went after maria. They started sending her messages online and on facebook saying really vile things. Facebook did not do much to stop facebook did not do much to stop at the time. The attacks escalated, as she started coming more critical of the Rodrigo Duterte government, he singled out her website in a state of the Union Address and started saying the company was not following all of the rules and laws of the country. It escalated from there. Coming up, Warren Buffetts succession plan. And Robert Mueller might be prepared to play defense. This is Bloomberg Businessweek. Welcome back. You can find us online at businessweek. Com. In on our mobile app. Opening the magazine this week, what are Warren Buffetts succession plans at Berkshire Hathaway . We talked to an inhouse often watch her. To investors or people who follow berkshire closely, a lot of people have been looking at greg abel, who runs the energy operation, they own a bunch of utilities throughout the u. S. And u. K. We have these names because they were highlighted by the vicechairman. Everyone is trying to read the tea leaves. They have not come out and said. We should take a step back. We all have a lot of fun. We respect warren buffett, it is hard to follow in his footsteps, but it is like, who is going to take over for Berkshire Hathaway, everyone has been wondering. There has been a tremendous amount of speculation. Buffett is 87. Monger is a couple years older than that. This is a conversation that has been going on decades. Frankly, the name on the envelope has changed over time. We are certainly not the first people to write an article speculating about who the person is. There is a journalistic tradition of this. What we do know is that as time goes on, some of the names that have been thrown out there in the past, for many of those executives, they are no longer at berkshire or they are looking less probable because of age or some other reasons. Break it down for us. What the differences are, because there are fundamental differences, whether they have grown up in the business, energy versus insurance, their respective age. He was a young guy to come in he wants a young guy to come in there. There are critical differences. Age is one of them. Abel grew up in the energy business. He has been running a business that has been highly acquisitive. Berkshire hathaway energy, his business has gone out and bought more utilities, they have bought pipelines, invested a lot in renewable energy. It is a place where part of buffetts empire, he can count on his managers to do something with this cash is producing. Its not solely unique to him but he has a track record of doing that over and over again. 20,000 employees, and thats just part of the business. Exactly. Something interesting about able and how he runs the business, the head office has only two dozen employees. Thats the model buffett uses for the whole conglomerate. Buffett likes to play this up, he talks about how he has about 24, 25 people in omaha who oversee the whole conglomerate, which has maybe 350,000 employees. There is a nice parallel between how abel operates and buffett has been running the conglomerate. And the politics section this week, special focus on special counsel Robert Muellers investigation into potential kremlin ties to President Trump. Mueller may have a plan if trump tries to shut him down. Here is editor matthew philips. In the days after the Michael Flynn plea deal, trumps lawyers started to change how they would talk about the affection of about the obstruction of Justice Charges being leveled at the present, from not thinking about much of it, too starting to argue that a sitting president cannot be charged with obstruction of justice, there is no statute that suggest it is a crime. It marked an interesting tidbit in the way the Trump Defense team was going about this. This was john dowd, in the aftermath of the scrum around this tweet trump had sent out over the weekend in which out in which dowd said said, i , wrote this, it wasnt the president , the tweet said i fired flynn because he lied to the Vice President and the fbi, the fbi thing was the big news, a lot of commentators said he proved obstruction, given what we know about his reasons for getting rid of fbi records and fbi director james comey. It has been interesting week in the probe, we have some big names after the manafort and gates indictment last month, we now have the nsa director Michael Flynn playing to a aing to ag to a ple pretty small count of lying to federal agents, given the potential crimes we know he could of been charged with, including being on the payroll of a Turkish Company while he was a top official in the white house. We already have President Trump lawyers pushing back on the idea of extraction of obstruction of justice for a sitting president. In getting a plea deal, that is a huge step forward in the investigation, but you say it is more than that. More important, because it ensures it continues, the investigation continues. Explain that idea. Last spring when Robert Mueller accepted a job as special counsel, it was always going to be kind of a defensive job in its very nature because he was investigating a man who had the power ultimately to fire him, or kind of fire people, or direct people to fire him. There has always been this kind of threat over this counsels office and his team about whether the white house can do anything to shut down the case. What we have got with the flynn thing is a couple of things, it gave us the first person inside the administration, even though he was only there for less than a month, i believe, he was inside the trump administration, not just a campaign of figure. Campaign head or campaign figure. It also raises the political temperature. If trump were to try to shut down the mueller investigation, the political implications of this would be unprecedented. Almost like nothing we have seen since watergate and it raises the ideas of the saturday night massacre, in which president nixon fired archibald cox. So he has also laid some breadcrumbs on the ground for other prosecutors, state and local ones to pick up and continue his investigation is not leading it, ultimately. If he ins up not leading it, ultimately. Up next, how a famous lawyer became infatuated with hollywood and found himself working for Harvey Weinstein. And a crowdfunding site that runs on hate. This is Bloomberg Businessweek. Welcome back to Bloomberg Businessweek. You can also listen to us on sirius and in boston, washington, d c and the bay area. And in london and asia on the Bloomberg Radio plus app. We have a profile of a litigators ambition. And what let him into the orbit of Harvey Weinstein. Here is reporter felix gillette. People know this sort of famous courtroom litigator and champion of democratic ideals. He represented al gore during the 2000 president ial sort of president ial florida recount. He also famously represented the government antitrust case against microsoft. He is had all of these highprofile cases, which has made him arguably the most famous lawyer of his generation. Because of his work fighting on behalf of gay marriage, with ted olson, george bushs a lawyer, they teamed up on behalf of marriage equality. He has become more than just a lawyer, someone who has been revered, particularly among liberals. You said he ran circles around bill gates. Yes. I cant imagine a man capable of doing that. This brilliant courtroom tactician. He has been in been played in an hbo movie. Countless magazine profiles, all glowing until this fall, when his role representing Harvey Weinstein came into the news and all these people were suddenly outraged by his association. Harvey weinstein, maybe not surprising he had someone like this in his legal circle. Talk about the relationship and how it turned into a bit of trouble for david boyd. We look back, how to the relationship start, but was david working on. It turns out they met each other not long after the florida recount. He came to new york had lunch, and Harvey Weinstein had a Book Publishing imprint and boies agreed to write a memoir about his legal career. Thats how it started. David also started representing harvey in his brother bob and miramax in various things. When harvey left disney, he represented them. He represented them in various things over the years and the relationship grew closer. In 2012, it becomes more interesting, because david decides to start a film company of his own. In part because one of his daughters had graduated from college and was interested in getting into the film industry. One of his partners close friends, his son was also working in the industry, they thought it would be fun, lets do some movies. What is interesting is, they did some projects together, but in the end, its sort of complicated the relationship with Harvey Weinstein, because he was not just a client, there was also a Side Relationship in terms of doing business in the movie industry together. In the Technology Section, crowdfunding and payment firms prevent racists from using their sites and services. That gave one person an idea. Hatreon aims to give racists donations. Facebook and twitter have taken a hard line on banning White Supremacists from the platform. Like like a tree on patreon and kickstarter, leases for people can raise money for projects have been much quicker to put people off platforms for espousing hateful ideas or inciting violence. But you dont get booted from hatreon, which is a site to raise money for hate groups. Right. They are collecting about 25,000 per month from a few thousand donors, mostly about White Supremacists. Talk about the guy behind it. He is the guy behind it. What should we know about him . He is 29, as our reporter writes, he is the rare troll who senses market opportunities. He came to prominence first in 2012 with a Company Called defense distributed, a small enterprise, but it did not have to be that big because it is mostly producing designs for open source, untraceable guns. In 2013, they published plans for a 3d plastic gun at you can make yourself, and therefore a therefore cannot be traced by the government. The company has also begun selling machines that allow you to make untraceable metal handguns and assault rifles. We get a sense of his political lean. Now he seems to be arming White Supremacists with something. Explain how that is working. The Southern Poverty Law Center has told us that the blog hate watch has already become an important tool for White Supremacists to keep themselves fed in lean times. The founder of the ultraconservative website daily stoermer, an avowed neonazi publication, is taking 40,000 4000 per month through this website. Is this how it works . Like a standard patreon page, you say, this is what im about, this is what i will be doing, sending money to help me out. Legally you can do this. Yes, according to the aclu, as long as these folks are not directly threatening people or inciting violence themselves, then yes, it is perfectly legal. Up next, Artificial Intelligence saves over 10 million in wine. And what to do if you are targeted by phantom debt collectors. This is Bloomberg Businessweek. Welcome back to Bloomberg Businessweek. And julia chatterley and im carol massar. Still ahead in this weeks issue, software to fireproof your wine and maybe more. And fighting back against phantom debt collectors. And the man behind minions has disney in his sights. All that and more on Bloomberg Businessweek. We are back with the Bloomberg Businessweek editor in chief megan murphy. In the Technology Section this week, we answer the question of what happens when you combine fire, a winery and Artificial Intelligence. We all know about the wildfires in napa. This focuses on a particular vineyard, a boutique vineyard. Wine producer, about 10,000 barrels a year, actually managed to save what so many other vineyards lost. They used technology, i wrote it down, it is fermentation intelligence Logic Control system. In the absence of workers, it would check on the grapes and the wine, this Automated System did it for them and was able to save them from wildfires. It has been online since 2014 but it had never run on its own. Even when this thing was operating, they werent sure if it would save the wine and operate the tanks successfully. Absolutely, and as you know, with wine, if you get one little thing wrong, the entire thing is spoiled. They invested millions in this system. They are a small producer, but he has a technology background, but now it is rolling out to the bigger producers like ernest and julio gallo. We talked about automation disruption on the show, but if you take out the need for workers, there will be a shift there, but it is also about safeguarding this wine. Unfortunately, wildfires in this area of the country are becoming more common, not less. The system was constantly monitoring the wine in the casks and doing whatever it needed to do. Exactly, making shoring it sure it had enough air, it is all about the east. I am more of a wine drinker than a wine producer, but it is fascinating in terms of, again, technology, automation, aia, collection of data, millions of data points per second. We all know, we picture people stamping on grapes in barrels. This is still an industry were people handpick the grapes. That is going to change. L we come to a point where we can pick up the nuances. The industry will be radically transformed, probably for the better, probably for better and enhanced production, but it will have a knock on effect on jobs. Which was the first thing i thought about when i realized this was operating so well. As you said, other companies, Bigger Companies are looking at this technology and thinking what they can do to adopt it. You would think for the owner of this winery, it would be a hugely lucrative opportunity. To get their money back. And yet. The most fascinating thing about the story was the investment. The fact that you would think, im going to invest this much in such a small producer, that but rolling it out requires is one thing for it to work at a small boutique producer like this, but to do a mass production with some of the other mass producers. But there is no question that wineries, just like every other industry, cannot afford at the risk. Another thing is weather. Forget about wildfires, but to lessen that risk it takes away your need to insure your business so much. Lets talk about another feature in the story, about an individual that became a target of something that is called phantom debt and went on a crusade to find out who was doing this to him. This is a man who really wages and one man crusade after he gets targeted by a debt collector. A more pernicious form of Debt Collection in this country, the pursuit of the socalled phantom debt, where you dont even own the debt to begin with, but you are sent haranguing letters and aggressively pursued for the debt. This is a tough tale filled with tough language about how people talk and a personal battle when a debt collector actually threatened violence on his wife one night, and how he would not let it die. This is a real problem in the country, there is a 600 billion in debt owed, this collector has sold off millions in phantom debt through middlemen. It really was a personal quest to get justice in a segment of our society where people are targeted unfairly. True relentlessness in chasing down the perpetrator of this. He is a salesman for a promotions company, just a regular guy, one you wouldnt look twice at on the train. He was working for home like usual. His wife called and she was scared. She had gotten a message about some sort of debt or something that he owed and she wasnt sure who the caller was. Right after she told him that, he gets a call. What was the call . The same guy. The guy who called his wife called him and he says, you owe 700 over some sort of debt. Andrew is very confused. He does not owe 700 and the conversation starts to get heated. And he threatened andrews wife. So this collector threatened andrews wife and it sets him off. He is so upset, he doesnt know what to do. He is an interesting guy, not the kind of guy who would just shrug something off. He takes things personally. He did call the police, and in your story, you say they were useless. He did try to work out what was going on here. Yes, he eventually calls the police, but his first instinct is actually to do something about this himself. What he does is, the man left a number with his wife, and he calls the number, and he reaches a Company Called lakefront. They say they are a Debt Collection company, they say that andrew owes 700. They say the person you were on the phone with, im not sure, maybe it is some sort of bounty hunter. So they are playing into the fear that someone is coming for him. Does andrew owe 700 . No, he does not owe 700. He is baffled. They say he owes it to a Company Called vista, so he calls them. Gets a letter saying andrew does owe 700. This starts him on a change of chain of investigations. He calls the owner of the Debt Collection agency and tells them about the situation, then he starts getting more calls from other collectors saying he owes money to other people. What is critical to understand is he did take a payday loan way back, but he paid the money back almost instantaneously. As someone who took a payday loan, but paid back very quickly, so that makes him a good credit risk. Those details are out there. Right. He starts talking to these collection agencies and he honestly started sounded like liam neeson and taken. Hes saying, listen, i dont care about you. There are a million guys out there like you. If you dont tell me what you know, im never going to let the let this go. They started talking to him. They said, we got this from a database we bought from another guy. It is a complicated web, but he slowly but surely starts to unravel it. What is it that gave him the element of confidence, chemical, to push back on these guys, to not be afraid and fight back . Threatening back . Its kind of crazy, he seems like a regular guy. I think because of his job he is as a salesman, so he is practiced on the phone, but he is a savant. Some guys he is tough with, sometimes he makes friends with these guys. Up next, online fantasy games play real money to venezuelans. Plus, Hurricane Maria keeps hitting puerto rican Small Business owners. This is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. Carol you can also find us online at businessweek. Com. Julia and on the app. Some venezuelans have found new ways of earning a living. Carol they are playing video games, earning virtual gold and exchanging it for real money. Julia here is christina with the story. It is activities in which people play online games for the purpose of gaining points or Digital Currencies in order to sell them to other players. This happens around the globe . Yes, weve seen in china or north korea, it is usually a feature of basketcase economies. Now it is really cropping up in venezuela and that is what we are looking at in this story. Games,s oldfashioned way back in the day games being played. For what purpose . Were talking about a country that the real currency has shed almost all of its real value against the dollar this year. Todays rate is Something Like 110,000 or 108,000 credits against the dollar. And with inflation, going into quadruple digits. This is a store of value, online currencies are a better store of value than venezuelas actual currency. Gamers get their earnings based on the exchange rate, which makes you better off than being a salaried worker, if the pay is not being adjusted to inflation. It is effectively indexed to a black market dollar value. Thats right. Thats right. So they are playing these old time video games, collecting Digital Currencies or gold and exchanging it for real currencies. And they are making a living. Yes, it is a fair number of people. Mostly young people. A lot of them grew up playing these games. We spoke to someone who was an insurance salesman and was not being able to make enough money, did not have enough work. We spoke to a guy working as a brick layer, it was backbreaking work. So, they are people who some of them enjoy it, i guess when you do this many hours of day, perhaps not as much as before. The Internet Connection is not great in venezuela. In fact, it is pretty drastic. In the 2017 ranking, it was the bottom 10. So how are they getting around that issue and the fact that if you are trying to play a computer game, trying to make a living playing a computer game and yet the Internet Connection is bad. Thats one of the reasons they are gravitating toward these old timey games, and a lot of them play at night when there is less traffic on the networks. Some of them have not been able to play at all because there has been copper wire theft in caracas that has taken down some neighborhoods. In the focus on Small Business section, the slow hurricane recovery in Puerto Rico May have longlasting impact on Small Businesses. The power problems persist, and that is key to all caps of kinds of businesses obviously, large or small, but a lot of Small Businesses are really dependent on that. Small businesses account for such a large percentage of employment on the island and private businesses on the island that it has been really devastating. One of the Small Business owners our reporter interviewed described it as catastrophic, and it has been catastrophic, so many of them are closed, about 45,000 Small Businesses on the islands and two thirds of them were forced to close because of not just maria, but there was Hurricane Irma a week before and then they were slammed by maria. There are a range of estimates as to how we would stay permanently closed, but the numbers are not good. 10,000e from 5000 to businesses could be facing the threat of never reopening because of the challenges. Carol the challenge is they are trying to get power, the whole island does not have power, a lot has come back but there is a lot to go. Telecommunications are still difficult. Very difficult. A couple of businesses not as dependent on the island for their client base, a Biotech Company we interviewed, for example, has an office in the states. They were able to shift their communications and any other functions that the power may hard on puerto rico to that office, but that is an unusual case that is not what most businesses a familyrun ice business and other businesses connected to it, you have an ice business, that is very local, its all about just providing ice to other businesses. Power is difficult, manpower and who you will have a your disposal, many of the workers because the personal situations were affected, might leave puerto rico and come to the mainland. There has already been an exodus. Thats right. Those estimates are very high, i dont have the numbers in my at my fingertips, but the estimate of what will happen to puerto rico in the coming year in terms of migration to the mainland will be very devastating. Julia up next, competing to be the next big mecca for design and art. Carol plus, spicing up corporate holiday parties in Silicon Valley this year. Julia this is Bloomberg Businessweek. Carol welcome back to Bloomberg Business week. Im carol massar. Julia im julia chatterley. You can listen to us on the radio on sirius and in new york, boston, washington, d. C. And the bay area. Andl and in london on dab in asia on the Bloomberg Radio plus app. In the pursuit section, a profile of someone who may be disneys biggest animation competition. He is not a household name, hes not steven spielberg, but his characters are. You probably remember the ice age franchise, and despicable gru, thesenions, are on lunch boxes and at kids parties all around the world now. He has made a name for himself in hollywood because he is able to make these movies very cheap, 70 million which is not a lot in hollywood these days. They go on to make billions. Julia talk about the opportunity now, because we know that john lasseter, he is on sabbatical from pixar. When we are looking at the competition out there, is there a window of opportunity perhaps for him really to steal more market share at this moment . Yeah, i mean animation has been a business that all of the major Hollywood Studios go into a little bit and then back out. Really, disney has been the only consistent winner. Now it has a real threat from universal and this company, called illumination entertainment. They have produced a lot of big animated movies. You could tell him in talking to chris that he kind of wants greater recognition. Disney always steals oscars for animation every year. His movies are very popular, but they are never quite critically acclaimed. So he will keep plowing away at this and i think this could be his moment. Julia in the Technology Section, Silicon Valley will be awash with atmosphere models this Holiday Party season. Carol we will let sarah frier explain. Sarah companies in Silicon Valley tend to have a gender ratio problem. There are a lot more men than women and it can cause some issues with diversity, harassment. This has been a longtime thing that companies have been criticized for, but there is another more trivial problem, holiday parties tend to be boring. To solve that, they have been hiring models to mingle with employees, unbeknownst to the employees themselves. Models who are known as atmosphere models or ambience models, and they come out to strike up a conversation, said they were invited by a friend and gives employees great memories from the holiday parties. Julia hang on a second. You have the launch party, you hire attractive people to make it look good. But everybody kind of knows these are models paid to turn up. But employees are in the dark about their fake friends . Sara youre absolutely right. The Tech Industry and modeling industry have a relationship that is part of the hype cycle. Models are part of the trade , they come to product launches, they can hype up things when they need to be hyped up. This has now extended to holiday parties. I was talking to one agency, they are sending 25 women and five men to a gaming companys party this weekend. It is going to be a situation where the models are told which employees to say they are friends with so that if people ask, they have a backstory. s sometimes, modeling agencies get even more creative backstories from companies, the Companies Make models sign nondisclosure agreements and everyone parties. Carol are these lesserknown companies that are doing it were some of the big tech giants that we know . It is everything from the tech giants you know to the tiny startups and even private parties, the executives with a lot of money to burn you who are happy to make sure their party is the most upscale. Upscale foray they can possibly throw. Julia how much do these models get paid to do this . I like that you pointed out is not just about women, goodlooking men are invited, as well. The men coming to the party said, sometimes men like to look at pretty men, too. Not everyone is into the women. Julia no discrimination on the show, thats right. Its not just about the female employees, but men who like men. And models get paid anywhere from 50 per hour to 200 per hour, so if you are hiring a 30 models, you could spend quite a bit for a three to five hour party. Carol in pursuits, how cape town, south africa reinvented itself as a triple threat tourist destination. Julia and we are not talking about its beaches. For a lot of time, there has been a lot of great reasons to go to cape town. Beaches, outdoor hiking and all sorts of great stuff. But recently, it has become an arts and cultural destination, which is why we wrote about it in this issue. We are really excited about it. Earlier this year, the museum of contemporary art africa opened up. That is a hugely stem devoted to art from africa and the African Diaspora and it has created a sector of the city the voted design and upandcoming trends and culture. Carol and that includes hotels in terms of Innovative Choices . The art itself is a old converted grain silo, really cool architecture. Right next to it is a hotel called the silo hotel, also totally stunning. You are in these rooms perched over the hotel with big, glassy bulbs. It feels like you are hanging over the museum itself. Julia and we can thank the art for the ceo who brought his collection of more than 1000 pieces to allowing individuals in cape town to get to see some of these for the first time, rather than go on safari. Yes, he is a big philanthropist and has a big collection, but to see it you had to go to one of his lodges on safari. He thought, this is crazy, i have to show this art. He created this huge museum devoted to contemporary african art. Carol the neighborhood around the museum is also fun to say. The Central Business district has gone through a total change. We do a focus just on one street which has incredible fashion, great design, home to core, great coffee, great restaurants. It has revitalized the whole area. Carol is it expensive . No, not that expensive. There are great destinations just outside of town, wineries. Taste some incredible food. It is an affordable place to go. Bloomberg businessweek is available on newsstands now. Julia you can also get it at bloomberg. Com and our mobile app. I know what your favorite story is this week. Carol it is a great story, everyone should read it. Fake news in the philippines. Were seeing it used as an effective total in a bad way. Julia we often talk about the regimes like in china where they crack down on media, but this is a leader who harnessed the power of social media to ultimately win an election. The question is, was it fair . Perhaps not. Carol it is just another concern when we look at the use of social media. Julia and efforts to fight back. More Bloomberg Television begins now. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Or a little internet machine . [ phone rings ] it makes you wonder. Shouldnt we get our phones and internet from the same company . Thats why Xfinity Mobile comes with your internet. You get up to 5 lines of talk and text at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And ask how to get a 200 prepaid card when you buy any new samsung device with Xfinity Mobile. A new kind of network designed to save you money. Click, call or visit today. Emily im emily chang and this is the best of Bloomberg Technology where we bring you the best in tech. How will washington plan for the sectors offshore profits impact Silicon Valley. We will discuss potential scenarios if the bill becomes law. Plus, the bloomberg exclusive, armstrong offers his take