Lets begin with the european cover story. Perhaps the safest woman in european politics right now simply because no one wants to replace her and voters dont know who they want to replace her with, theresa may. Megan this is the story that keeps on giving. You really do have some sympathy for a woman who has not only faced an extreme series of internal political challenges, including a 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 core issues about single market, timing, compensation. It is the worst of all worlds for her right now. Julia some people dont have sympathy for her. They say, why did you call for an election . Why did you squander the lead you had over that period when you went into this election . Some of the comparison being made are john major in 1997 and the catastrophic loss we saw in that election. Megan you and i are both british citizens and so watching it has been 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. What happened to theresa may is she was revealed to be a spectacularly incapable candidate. She had no real message for voters. She seems to be robotic which gave her the nickname maybot. She lacks a common touch, very different to john major in terms of how he has emerged as a man of the people. Which is odd to me as well. 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 and which this piece really talks about is theresa may was a remainer. We forget about this. She was a remainer, the leading voice on the remain campaign. What i have found baffling and perplexing is to be this full throated advocate for brexit is not how she felt, is not what she 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 continuing to stay weak. Inflation is hitting home on food prices. People look forward to brexit, lack of a plan, how they are going to compete, how they are going to remain investment, let alone attracted businesses back to britain. Julia from a manmade or woman made crisis, the impact of Hurricane Harvey in houston and some questioning whether or not 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 this week because when you look at Hurricane Harvey versus katrina in new orleans, there has been so much talked about how the response was very prepared, planned, we perhaps saved many lives and how immediate the planning was. How firm they were about forcing people to evacuate as floodwaters rose, but there was an area around houston that was intentionally flooded, where a reservoir they were concerned would flood and cause immense destruction was actually intentionally flooded and 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 reporter shannon sims with that story. Shannon a lot of people think harvey was just a hurricane, it rained and the water subsided. Actually what happened is that large portions of houston had a secondary disaster happened to them. That is that 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. Normally 60 fall in a 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 they said that if the reservoir walls had broken, it wouldve left west houston with corpses by the miles or Something Like that. So 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. One of them, angie and josh moore, a couple with a child in the area. They had to make a judgment call on the flooding and whether or not to evacuate. Shannon a lot of people my family is from there. It rains all the time. We are from houston. We are used to hurricanes. Nobody was freaking out. This was different because we did not know they would open the reservoir gates. That has never happened before. They opened them in the middle of the night when everybody was sleeping. Julia they said they would do it later in the day. They made a snap decision earlier than perhaps planned. Shannon right. 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 me her Wedding Dress was ruined. She said i would have put my Wedding Dress somewhere else. All these things you dont think of because you would never imagine your home with six feet of water in it. Some people said they could tell there was a difference in the water coming in versus the water that was coming down, rainfall versus the water released from the dam. Shannon right. The water released from the dams had been accumulated in the dams and then was released into buffalo bayou, a stinky bayou in the best of days. All of that funk was overflowing into peoples homes. It was not clear rainwater. It was something else. They could tell a difference. Shannon on top of that, it was mixing with sewage, whatever chemicals people had in their garages that were now flooding out. Play devils advocate. Would these homes have flooded 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 . Nobody knows the answer. Storm in 100 years or more. Shannon right. We only have so many forms of guidance. A lot of these homes are in the 500 year floodplain, which means they should flood once every 500 years, or they have a 1 chance of flooding every year. Or a. 5 chance of flooding every year. What happens with climate change, more severe storms julia what about insurance in this case . This is one of the things we discussed. I was shocked at how few people actually had Home Insurance protection. Shannon from the outside, how can you not have insurance . You live in houston, you have hurricanes all the time. But this area never flooded. You pay hundreds and hundreds of dollars for 30 years in your home never floods and you wonder why you have it. Lets go to the litigation. There are similarities between this and katrina in new orleans. I dont know it is apples to apples, but nonetheless, what you have is the government willing to sacrifice the federal government releasing the dams, sacrificing property. You think about, 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 was not that case. The government was maintaining infrastructure properly, they will argue they were using the infrastructure properly. Opening the floodgates is part of the reason you have the reservoir, to control. Keep in mind that at this time there were other hurricanes churning in the gulf. They did not know how much water was going to be coming. They chose to sacrifice some land. Did they take those lands away . Shannon this is the legal argument. What is fascinating is this gets to the constitution. In the constitution, in the fifth amendment, there is a clause that says the government cannot take your property. If they do, they have to pay you back. That is the argument that people are making. Whether this was the right call or the wrong call, it was an extreme situation. It was unprecedented. That is not what we are arguing about. We are just saying these peoples property were taken from them, and that means it was damaged or destroyed. That is a taking. Julia creative director rob vargas put houstons flood on the cover of Bloomberg Businessweek. The United States has had more than its fair share of natural catastrophes this year. Never more so than with the flooding we saw in houston. This week, we turn the spotlight on the u. S. Cover on a different angle in this story. We report when it first happens. We had a photographer down there shooting some of the scenes, which were incredible. We are revisiting it because something i wasnt aware of was part of the flooding, the u. S. Government making the decision to flood certain areas to save others. Julia you have two powerful quotes on the front cover. Point out what you chose. This actually gave me goosebumps. This is one of the people affected by this, quoted in the story saying this isnt an act of god, this is an act of man. Pointing at the fact that even though it was a natural catastrophe, the flooding in certain neighborhoods was an act of man. Julia next, 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. I am julia chatterley. You can find us online at businessweek. Com and on 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. Here is reporter brian. Talk to us about it. It is a publicly held company. If you look at the stock, it has shot up this year. Littleknown company but it is helping out the folks in georgia when it comes 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 who is now ceo came in. He had 40 million in revenue, 40,000 customers in a couple of counties in wisconsin and part of one in indiana. Now he is over 40 billion in revenue. Their stock price tripled in the last five years or since obamacare effectively came in. 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. In florida, it is Sunshine State health plan. That is how most customers recognize them. Julia explain why centene can go into all these marketplaces and offer options to people when everyone else is retrenching and saying we cant offer this anymore. Bryan centene has been doing this for a long time. Centene is a longtime provider primarily of medicaid coverage. When you are offering medicaid coverage, you dont have the luxury of saying, our population is really sick. We will just raise premiums or raise copays or deductibles. You cant do any of that. 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. Research has shown 5 of insurers population can account for 50 of the cost. What 17 is doing, they are centene is collecting a lot of data to understand the population they are insuring, and they are 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 as well as their 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 in hopes of heading off major surgery or major problems with their heart, kidneys, etc. Julia staying in the featured section, a look at some of the Smaller Technology companies that are feeding off the information we put on social networks and the fight that is brewing over the control of that data. We speak to reporter drake bennett. Drake hiqs whole Business Model is they take data and crunch it to make these predictions about peoples behavior. Linkedin data. Drake linkedin data. The vast majority of data they use is linkedin data. That is because 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 meant going out of business. They have sued. Their argument is this is public data. You guys are probably on linkedin. Im on linkedin. You can decide the information, who it is available to, how widely it is disseminated. Hiq is only taking the most public data. They are saying, 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 and copying it. More fundamentally, this is the kind of thing our members might not be comfortable 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 those people can make that information private. I know that it basically defeats the purpose of linkedin, but there is a choice. Drake this is part of the issue. Hiq says if they dont want us to be delving into the stuff, they can julia control it. But that cuts to the big issue of why there is a legal battle. It is about speech and competition on the internet. It has attracted some pretty big legal names who have views on the subject. Drake lawrence tribe, a constitutional scholar, is arguing for hiq. His interest is he sees it as a free speech issue. He really sees when youre talking about public data and who gets control, and especially in an environment where we have a smaller and smaller number of Big 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 that 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 to us on the radio at sirius xm channel 119, and on am 103. 0 in new york, 106. 1 in boston, am 960 in the bay area, and in london on mux 3, and in asia on the Bloomberg Radio plus app. In the technology section, endgame might not be the biggest Cyber Security firm in the market, but it is the pentagons favorite. I spoke to the ceo of endgame, nate fick. Nate endgame builds a protection platform. We protect our 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 it is an enormous amount of math behind it. A lot of data science and algorithms involved in the detection process. This is a crowded 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 is making you different . The thing about hackers is they change. They know you are 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 i think that is the key insight to cybersecurity. This is not a machine on 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 build the defense you never wanted to run into when you were on the attacker side. That is what we have done. 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 build and ship 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. This needs to be simple. How do you make the application of the search and the identification of a hack simple to operate . Nate that is one of the hallmarks of what we do, build a produ