Chief megan murphy. Lets begin with the european cover story. Perhaps the safest women in european politics right now because no one wants to replace her and they dont know the replacer with, theresa may. Megan this is the story that keeps on giving. You really do have some sympathy for the woman who has not only faced an extreme series of internal political challenges, including sexualharassment scandal in parliament, ministers leaving, but also overshadowing all of this is not only her own inability to lurch from crisis to crisis to crisis, but this fixed timetable on brexit and all the challenges they face over that in terms of securing a deal with the eu that is refusing to budge on so many issues about single market, timing, compensation. It is the worst of all worlds for her right now. Julia some people dont have sympathy. Why did you cause an election . Why did you squander the lead you had over that period when you went into this election . Some of the comparisons are john major in 1997 and the catastrophic loss we saw in that election. Megan you and i are both british citizens and watching it has an unbelievable to watch. When she first called the election, it is hard for us to go back to where we were. People thought she was going to win an overwhelming majority. She was revealed to be a spectacularly incapable candidate. She had no real candidate. She seemed to be robotic which gave her the nickname maybot. Very different to john major in terms of how he has emerged as a man of the people. She has proven herself to be unable to really get in the consciousness of the british voter. Every time she turns to her same, wornout phrases of taking britain forward, forward together, and the thing people dont spend enough time talking about is theresa may was a remainer. She was a remainer, the leading voice on the remain campaign. What i have found athlete and perplexing is to be this full throated advocate for brexit is not how she felt, is not which he ran on. The british people simply do not believe her and a lot of what she is saying about the benefits that brexit will bring. We have to look at the u. K. The economy is starting to suffer. It is growing at a slower rate than european rivals. The pound is getting weaker. Inflation is hitting home on food prices. People look forward to brexit, lack of a plan, how they are going to remain investment, let alone attracted businesses active britain. Julia from a manmade or woman made crisis, the impact of Hurricane Harvey in houston and to what extent that was a natural catastrophe and contributed by the actions of man or woman. Megan this is our domestic cover. This story is powerful and deeply reported. We are so proud to publish it because it looks at you look at Hurricane Harvey versus katrina and new orleans, there has been so much talk about how the response was very prepared, planned, we perhaps saved many lives and how immediate the planning was. Forcing people to evacuate as floodwaters rose. But there was an area around houston that was intentionally flooded where a reservoir they were concerned when flood and cause immense distraction was actually intentionally flooded in the waters released. It was a relatively wealthy area. This goes into the detail of what happened to those people, their homes, their lives and was it the right choice to make for everyone and where do we go from here. Planned, we perhaps saved many lives and how immediate the planning was. Forcing people to evacuate as floodwaters rose. But there was an area around houston that was intentionally flooded where a reservoir they were concerned when flood and cause immense distraction was actually intentionally flooded in the waters released. It was a relatively wealthy area. This goes into the detail of what happened to those people, their homes, their lives and was it the right choice to make for everyone and where do we go from here. Julia the legal consequences. Here is shannon sims with that story. Shannon a lot of people think harvey was just a hurricane, it rained in the water subsided. Large portions of houston had a secondary disaster happened to them. That is the federal government had two reservoirs blocking the water from west houston and central houston from flooding even more catastrophically than it did. However, the water was so immense. 51 inches fell across houston. 60 normally falls in the year. The army corps of engineers had to make a tough call in opening the floodgates and actually flood neighborhoods near the floodgates, including my parents neighborhood. The results are thousands of homes flooded, and as a result the litigation is beginning now. That is the next chapter of the story. Julia they sacrificed a piece of houston to save everyone else. Or seemingly . Shannon i would say factually. It is a tough call to make. It is a disaster and nobody really knows the right thing. It is unprecedented. The potential damage the Houston Chronicle ran a chilling article about a week afterwards and that if the reservoir walls had broken, it wouldve left west houston with corpses by the miles or Something Like that. we were talking about the risks were huge, totally unprecedented. It was a tough call. Now it is going into litigation to see exactly what happens after you make a tough call. Julia talk about some of the individuals and families involved. Angie and josh moore, a couple with a child in the area. Shannon a lot of people my family is from there. We are used to hurricanes. Nobody was freaking out. This was different because we did not know they would open the reservoir gates. Julia they open them in the middle of the night when everyone was sleeping. They said they would do it later in the day they made a snap decision earlier and got slammed. Shannon when i spoke with residents, that is what a lot of them were upset about. They did not have enough warning. Angie, for example, told her Wedding Dress was ruined. All these things you dont think of because you would never imagine your home with six feet of water in it. Julia some people said they could tell he was a difference in the water coming in versus the water that was coming down, rainfall versus the water released from the dam. Shannon the water released from the dams have been accumulated in the dams and then was released into buffalo bayou, a stinky bayou and the best of days. That funk was overflowing into peopleshomes. Julia they could tell a difference. Shannon it was mixing with sewage, whatever chemicals people have in their garages that were now flooding out. Julia what keeps these homes from flooding anyway if the dams had not been released . Shannon that is exactly what a lot of the litigation is about. This is an unprecedented rainfall. How did we know who was going to flood . Julia the biggest one in 100 years or more. Shannon we only have so many forms of guidance. These homes should flood once every 500 years, for a 1 chance of flooding every year. With climate change, more severe storms julia what about insurance in this case. I was shocked at how few people actually had Home Insurance protection. Shannon from the outside, have the do not have insurance . You live in houston, you have hurricanes all the time. But this area never flooded. Keep paying hundreds and hundreds of dollars for 30 years in your home never floods and you wonder why you havent. Julia lets go to the litigation. There are similarities between this and katrina in new orleans. You have a government willing to sacrifice the federal government releasing the dams, sacrificing property. Legally is this Eminent Domain . What is the legal or the law behind this . Shannon what happened in katrina is that the government was not maintaining their infrastructure properly. This is not the case. The government was maintaining infrastructure properly, they will argue they were using the effort structure properly. Do they take the lands away echo away . This is the legal argument. Thehe consultation, in fifth amendment, there is a clause that says the government cannot take your property. If they do they have to pay you back. Whether this was the right call or the wrong call, it was an extreme situation. On the cover of Bloomberg Businessweek. The United States has had more than its fair share of natural catastrophes this year. Never more so the flooding we saw in houston. This week we turn the spotlight on the u. S. Cover, a different angle in this story. We report when it first happens. We were shooting some of the scenes, which were incredible. Something i wasnt aware of was u. S. Of the flooding, the government making the decision to flood certain areas to save others. Powerful quotes on the front cover. This actually gave me goosebumps. This is one of the people affected by this, putting it in the story same this isnt an act of god, this is an act of man. The flooding in certain neighborhoods was an act of man. The Health Insurance company that sees opportunity in the uncertainty surrounding obamacare. And the fight over who gets to mine your data and sell it to your boss. This is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. You can find us online at businessweek. Com, and our mobile app. In the features section, Health InsuranceCompany Centene is taking its carefully crafted Business Plan national. That could mean fewer choices for customers. Carol it is a public the health company. If you look at the stock, it has shot up this year. It is helping out the folks in georgia when is coming to Health Insurance. Brian they go back to 1984 when it was founded in the basement of a hospital in milwaukee. In 1996, the ceo came in. He had 40 million in revenue, 40,000 customers and a couple of counties in wisconsin and part of one in indiana. Now its over 40 billion in revenue. They are doing quite well, but they are not terribly wellknown in part because when they sell their medicaid and their obamacare plans in various states, they frequently sell them by different brands. For instance, in georgia it is ambetter. That is how most customers recognize them. Julia explain why centene can get into these marketplaces an offer options to people when others cant do it anymore. Bryan centene has been doing this for a long time. Centene is a longtime provider of primarily medicaid coverage. When you are offering medicaid coverage, you dont have the luxury of saying, our population is really thick. We will just raise premiums or raise copays or deductibles. They dont have those. You are at the mercy of the federal and state governments. You really need to focus on how much your population costs. They have been focused on this for a long time. They have gotten really good at keeping those costs down. Carol what is fascinating is you put this statistic. 5 can account for 50 of the cost. Centene is collecting a lot of data to understand the population they are ensuring and trying to make sure they are doing health care or suggesting health care to their subscribers before they get really sick. Bryan thats right. They use publicly available data and our own claims data to figure out who are the people who have small problems that could quickly become big problems, expensive problems for centene. Then they focus on these people. They have algorithms that churn through data every 24 hours. A Software Program delivers a patient to do list to one of centenes 3000 case managers for these particular people. The case manager says i see this small problem could get big. They reach out to the people and say, you need to go to the doctor, take your meds, do a and b and helps of heading off major surgery or major problems with their heart, kidneys, etc. Julia a look at some of the Smaller Technology companies that have been feeding up the information we put on social networks and the fight that is brewing over the control of that data. We speak to drake bennett. Drake hiq is a take data and crunch it to make these predictions about peoples behavior. Linkedin data. The vast majority of data they use is linkedin data. Linkedin is the only game in town for this kind of workplace information. Linkedin is saying they sent them a ceaseanddesist letter in may saying you cant do this. You are not allowed to use our data. Stop visiting our website and copying the data, which wouldve been going out of business. They have sued. The argument is this is public data. Im on linkedin. You can decide the information, do it is available to, how widely it is disseminated. Hiq is only taking the most public data. If you selectively say this person can see this and this person cant, it is like putting a billboard on your office and saying you cant look at this billboard. Linkedins response is its on our servers and you are trespassing by coming in a copying it. More fundamentally, this is the kind of thing our members might not be comparable with. You are basically using this information to discover things about them they might not want their employers to know. It is kind of incumbent on us to prevent you from doing it. Julia people can make that information private. It defeats the purpose of linkedin, but there is a choice. This is part of the issue. Hiq says if they dont want to be delving into the stuff, they can julia control it. But that cuts to the big issue of whether is a legal battle. It is about speech and competition on the internet. It has attracted some pretty big legal names to have views on the subject. Lawrence tribe, a constitutional scholar, is arguing for hiq. His interest is he sees it as a free speech issue. When youre talking about public data and who gets control, and especially in an environment we have a smaller and smaller number of the companies controlling the collection and analysis of that data, he is uncomfortable with there being more restrictions put on who gets to do stuff with the information. Julia up next, the company the pentagon uses to stop cyberattacks from spreading. This is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. Im julia chatterley. You can listen on the radio at sirius xm channel 119, 106. 1 in boston, am 960 in the bay area. In london on mux 3, and in asia on the Bloomberg Radio plus app. They may not be the biggest Cybersecurity Firm in the market, but it is the pentagons favorite. I spoke to the ceo, nate fick. Nate endgame builds a protection platform. We protect customers data from attack by preventing breaches on the endpoint and by detecting and responding to breaches and automating the hunt for attackers that may already be inside our customers networks. Julia how do you stop it spreading . Nate there is an enormous amount of math behind it. Algorithms involved in the detection process. This is a credit market. We have to put a lot of emphasis on independent thirdparty validation. Not us saying how good our stuff is, but others who are seen as credible and independent verifiers in a market where there are Many Companies claiming to be the same thing. Julia what about your model making you different . Hackers change. They know he were on to them and they learn and do Something Different and they adapt. Can you adapt quick enough for the changes that hackers make in order to attack something slightly differently . Nate that is the key. The cybersecurity. This is not a machine to machine problem. It is people on people. You put your finger right on it. We started by taking the best attackers from places like the nsa and the air force and other parts of the government and gathered them together and said, ok, lets built the defense you never wanted to run into when you are on the attacker side. We have to continually replenish that talent with people who are uptodate on the latest hacker techniques and procedures from around the world. And then marry them up to people who built and shipped scalable enterprise software, and then a University Math department of data scientists. Julia the problem is the person operating this, while trying to work out what went wrong equifax was a great system. One unnamed person did not do an i. T. Update. How you make the application of this search in the end indication of a hack simple to operate . Nate that is one of the hallmarks we do, build a product that is incredibly easy to use. We cut our teeth in the u. S. Government where our endusers are often operating under pressure. They are pretty young generally. They might be changing jobs every 18 to 24 months. They are incredible capable but operating under difficult conditions. The central challenge for us was building a product that is easy to use. That needs a user interface that is intuitive and simple, and some other innovations. We have an ai powered chatbots, a natural language chatbots that allows very junior analysts to use natural language in order to stop very advanced attacks. Julia make that simple for me. If i say to the system, find exploited software and shut it down, would react to that . Nate it would do exactly that. Julia is that unique to your system . You have big competitors out there. Nate we have many large and wellfunded competitors. Introducing that natural language interface to our product is unique. We are the first and so far the only wants to do it. Julia talk to me about this sphere. We have seen a lot of headlines written about the breaches at the nsa and the shadow brokers and the comments they have made effectively auctioning off the information they allegedly hacked and stolen from the nsa. With the you think when you look at this . With you think is going on . Nate we all live in a world where it is increasingly hard to keep secrets. There are secrets that for reasons of National Security are very much worth keeping, but technology is going to make it harder and harder to keep those secrets. The shadow brokers attacks and other attacks over the last year have ushered in a new era in cyberspace security were now we all live in a world, all of us individuals, all of us as companies, live in a world where Cyber Weapons that were developed with nationstate resources have been released into the wild. It is as if there are a million boomerangs spinning and all coming back, we just dont know when or where. Julia how californias housing policy is holding back its climate policy. And what is next for zimbabwe after its mili