Whether, talking about the windex olympics getting underway. This story looks at the between northont and south korea because of the games. North korea is making the most of this little opportunity. If there were an olympic medal for freestyle propaganda, they are getting it. Julia what are the south koreans getting out of lists this . They will march their sports stars under a unified flag with the north. That is a big statement. That is what this story is about. Why would you be willing to do this . That was the question we posed because we think this is going to be shortlived. The games are going to happen and we will be right back to a different mood. Carol you have to think about it too, because it is a great sports story. Everyone walked choose likes to watch the Olympic Games, but it is also a financial story. South korea has paid billions in getting ready for these games. How do we make this a business story . There was a lot of Business Opportunity in this, and they are willing to put it all on the line with this decision. Carol it is kind of shocking, though. Go back a month. Thinking about the conversations going back and forth. Different tone. It came as a surprise to a lot of people and shows how strategic the North Koreans are being in putting a little wedge between the americans and south koreans. Julia but there is also strategy here for the south koreans. The North Koreans have managed to damage big events in south korea, we can go back to 1988 and 2002. Ticket sales have risen as a result of this and he would surely rather have some level of unity rather than the fear the North Koreans could disrupt it. Absolutely. We will wait to see what happens. Julia right, they still could. About thelso wonder north Korean Leader and if he is playing around with washington here. Is absolutelyt true. He has the olympics on his doorstep and is using that as a moment to get what he wants, which is more publicity. Julia and he really is. It is still expensive for the president. An incredibly popular president in south korea and he is seeing his popularity in the polls heavily damaged by this. 90 to 60 . Which shows the uncertainty around it from at home. Fascinatings a story. It is why we put it in the issue right now because it is the most important thing she people should be talking about. Maybe other than the games. Back to the financial story, we have seen north korea in the past, the 1998 Olympic Games in seoul and the shooting down of s a plane and the athletes were killed. South korea knows what north korea can do. Joel we can hope nothing happens, but they are doing this under a unified flag and that is something to watch. Julia from a global perspective, you mentioned the other night it United States, donte chinese are saying react to anything here, so it is a global problem. Joel many more geopolitical players involved. Julia from a Global Challenge to a globally challenged company, and that is ge. Our cover story this week. Joel it really encapsulates what ge stands for right now. Bastion of american corporate earnings and through a lot of euros in, that confidence has disappeared. If you look at the dow over the past year, it is the bottom. That was hard to believe not that long ago. We really got into the culture of the management as being part of what is at stake here. This is a management factory that people came out of here lead otherght and Amazing American Companies and yet, that is sort of at risk because what will ge become . Carol this is what the story digs into. There are so many details, so much about the history. We got more about what is to come from this 126yearold company. If you look at this handful of inventions that changed life century,e in the 20th the vast majority were invented or commercialized at ge, whether the lightbulb, the jet engine, it was a Company MakingTelevision Shows and movies. It has been in honestly important and innovative. Ver the past few years, and especially the last year, the Company Seems to have been on the verge of falling apart and what i was trying to do was figure out what happened. Carol you say over the last year, and it does feel everything has started to come apart in the last year, but it has not necessarily been 12 months in the making. Take us back. Peoplethe thing i think are always really impressed by with ge is it was an oldfashioned and oldfashioned Manufacturing Company that managed to outlive the golden era of manufacturing, partly by jack welch ruthlessly making it more efficient and adaptable, but also moved it heavily into financial services. After welch stepped down with becameancial crisis, it especially clear that was not a sustainable strategy. We go from this company that has been around for 100 26 years that was so revered, we respected their leaders, they were examples of everything going on in the economy, to a company we are thinking, do we break it up . That is a big turn. Drake part of the reason it is so dramatic is ge was a Company Associated with things like the light bulb or the refrigerator, but the product that may be was most iconic was its managers. It was the famed factory for producing these elite, killer managers. Haveway, that may insulated the company a little from a certain kind of scrutiny and allowed it to not be as transparent as other companies. Now, i think some of that is coming home to roost. Julia turning ges troubles into a cover image was the job of the art director. Geis we had this idea that is the Great American garage and this Iconic Company that people think of from the lightbulb to the jet engine, is kind of an illusion. Lifechanging, things they developed or were part of distributing. Joel was very excited about the title and you say the great ge mirage, but you have used a pretty great image in order to detect that. To use theidnt want lightbulb because it is overused, but we thought the refrigerator represented this american monolith. A long time,r such going back to its beginnings. Julia one of the other big circling vultures around the fridge. I thought was pretty smart. Chris a nice foreshadowing of the darker side of the story. Carol next, the memo that pits republicans against republicans and democrats and has washington on edge. Julia and growing crisis from trumps crackdown on Illegal Immigrants. Carol this is bloomberg businessweek. Carol welcome back to bloomberg businessweek, im julia massar. Julia im julia chatterley. You can find us. Carol the fbi fight versus the race over the release of a memo that the german of the house head of the oversight committee. It is a complicated story and we got more from editor matthew philips. Is a memo put together by republican staffers on the house intelligence that worked for devin nunes, a republican from california and a longtime trump supporter. It contains classified waysmation that looks at in which the fbi sock approval for a surveillance warrant of a trump associate, carter page, a wellknown figure in this backandforth of the russian investigation. The white house thinks that by releasing this memo, it will provide evidence that the fbi acted politically, improperly, in getting the wires tapped of a trump associate. Our story starts aboard air force one on the way to davos and the president gets furious when staffers tell him about the latest wrinkle in the pressure investigation, which is that stephen boyd, a name we have not the associate attorney general, comes out and says it would be extremely release this memo, in a letter to devin nunes. Trump gets angry about this and to him, it is further evidence the department of justice is trying to undermine his and gop efforts to look at the rationale for the russia probe. What ensued was a backandforth between white house officials and doj staffers. In the end, it didnt matter because nunes and his colleagues on the House Intelligence Committee voted on party lines to release this. Certain republicans say it will provide evidence that the fbi democrats sayly, it is simply a partisan show and the republicans are playing this dangerous game in releasing this classified information. Julia to what extent has the white house contributed, we think, to the production of this memo or the contents . Is a superat important question and one that is being asked. We dont really have a clear answer to that. Remember, devin nunes was someone who came to light early on in the russia investigation in the spring of 2017 when he reportedly went to the white house in a latenight visit and shared with them some information that his Intelligence Committee had uncovered in its investigation of the white house in the russia probe. There is a relationship there. Asked specifically if the white house had assisted nunes and his staff in producing this memo, press secretary Sarah Sanders said she did not know, she could not answer that question but if there was any sort of cooperation there, that would raise all kinds of Big Questions about why the white house, which itself is kind of under investigation, why they are helping the investigator. Carol staying with politics, president trumps crackdown on Illegal Immigrants is creating a cloud of uncertainty over some sanctuary cities. Have diverging sanctuary laws in the United States and two of the countrys andest states, texas california, two varying rules. California, the governor has declared california a sanctuary state, meaning any lawenforcement agency that enforces most immigration directives, including detaining undocumented immigrants charged violation ofart in the law and the attorney general has promised to prosecute anyone who complies, whereas in texas, a the governor has done the thesite and banned enforcement of sanctuary rules. There are there county sheriffs will be jailed if they detainerply with these requests. We have created an environment between these two states where immigration rules are being enforced in varying directions s conflict with the way Law Enforcement are able to do their job. It creates inconsistencies, affect the social climate, the economy and the political divergence that is fuller further polarizing on the basis of immigration. Julia to me, this was fascinating. America is clearly a big country and the states individual within it, but you have described a patchwork of local rules. What does the federal law say here. You point out you have to go back five years or so to a Supreme Court decision to even get a sense of that. Just explain. Kartikay so the federal law requests detainer requests to turn over undocumented immigrants must be complied with. Enforcement of that is sort of the question, as our states rights are states rights. There was, indeed, a supreme 2014 related to the state of arizona that sort of allow them to enforce their own rules, but it created this is what opened the door to states passing their own laws, and now effectively, Law Enforcement officials that were earlier declining to comply with these detainer requests because they didnt want to create an environment where undocumented immigrants lived in fear in their own communities, now have to. So they are having to straddle this political fence between what they believe is best for their communities versus what the federal government and state is requiring. Carol that is a good point because you writing your story how this confusion and fear by immigrants is having a chilling affecting communities. You talk about that specifically in texas where women arent reporting rapes, maybe arent taking their kids in for vaccinations. It is already impacting immunities. Kartikay thats right. The mayor of austin said exactly that. While he doesnt think the california solution is necessarily the way to go, a little too far left for his taste, in texas, there is a manyre of fear and analysts call it psychological terrorism where you are creating an environment where people dont want to stick their neck out in society. Julia next, the radical rethink being considered at the Federal Reserve. Of theand the mu uber middle east has its own rat radical rethink of the role of women. Julia this is bloomberg businessweek. Carol welcome back to bloomberg businessweek. Im julia chatterley. Carol im carol massar. You can listen to us on sirius , boston, new york washington, d. C. And in the bay area. Julia in london on dab and in asia on the Bloomberg Radio plus app. In the economic section, the Federal Reserve may be considering new policy options as Jerome Powell succeeds janet yellen as fed chair. Carol more with christina lindblad. New leadership to consider the framework the fed uses to guide Interest Rates and 2 inflation 2012, has been the target. Which would barely ever hit. Has started this debate, which has been gathering steam and in january, the Brookings Institution held a panel questioning the 2 target. They found a lot of former fed chairman and economists to talk about that. The time seems right to kick this debate into the open. Carol the concern is because the fed the economy cant seem to hit the 2 mark. The fed is being very slow in terms of raising rates. Go intoern is when we an economic downturn, they wont have the ammunition to juice the economy. There is not much lower they can go. Cristina there is still a historic low level even though he have the cycle of tightening. That is a concern. We evaluated four different ideas out there. It is interesting because several of the regional fed president s are backing some of these different options, some former fed president s have also lined up behind some of these different ideas. Easy to basic and understand is, lets pick a new inflation target, a higher one. What theg the public target is, the idea is it is almost manifest destiny. It sends out a price signal to the markets, Companies Feel more room to price their products higher. We will psychologically engineered this. Carol managing inflation expectation. Julia the first country that comes to mind is japan. You can say you have a new inflation target, but if inflation doesnt get there come you have a credibility problem. Cristina its true, there were time in the last years where if you look at inflation, it was flatlining. But we are creeping closer, so hitting 2 isy of not as outlandish as it would have been a year ago. Isthe time right is right to say, maybe lets move it higher, people will understand. But every time you move the goalposts, there is a credibility issue for the central bank. This is a debate that will take a long time to come to fruition because you dont do this lightly. Sort now to a different of policy change in the technology section. Kareem, the uber of the middle east and it has built much of its business on transporting women who arent allowed to drive. Company isthe rethinking its business as the laws is in saudi arabia, which could one day mean female drivers. Jack it is the leading ridehailing service in about a dozen countries from north africa to pakistan. Julia how long has it been around . Jack going on six years now. Just under six, it operates in about 80 cities in a dozen or so countries. It is valued as 1. 2 billion on the strength of a 500 Million Dollar cash infusion from Kingdom Holding co. , one of the big players in saudi arabia. The companyss ceo, and you put this in the story, one of its goals is to provide a safe, worry free ride for women, especially in saudi arabia. Jeff they built that valuation in large part on supplying a cheaper and in many cases, relatively safer alternative to scant Public Transportation ofions or a sea unrecognizable Cap Companies in places where there isnt a ton available toons people who cant or dont drive. Women particularly in the middle east. They are not allowed to drive and in terms of getting around, there are rules and restrictions. Julia for now. Jeff in the case of saudi arabia, which you point out is careems most important market, the company is preparing in june to issue its first drivers licenses to women the country is preparing in june to issue its first drivers licenses to women in order to raise the employment in the country. Julia does this mean there will be less passengers, and the other thing that hit me here is what about potential drivers for careems cars. Jeff as our reporter started reporting the story, it was pretty unclear whether drivers restrictions on female drivers in saudi arabia would extend to professional driving, chauffeurs, but at now it seems that is the intent. That careem and lesser player in this market uber are rapidly trying to train thousands of women to drive their cars to be ready when the first licenses go out in june. Carol pakistan, a lot of their drivers are actually women. Jeff pakistan, i would say, is near the number two most market for careem right now. They have been using women as drivers there for about a year, egypt and jordan another example. Julia next, the most dangerous stretch of water in the western hemisphere. Carol and taylor swifts plan to capture all the money from her upcoming tour. Julia this is bloomberg businessweek. Julia im julia chatterley. Carol im carol massar. Steve makes a comeback on wall street. At pirates of the caribbean. Julia all that still to come on bloomberg businessweek. Julia we are back with editor in chief joe weber and were talking in the features section about emily changs new book. It looks at the culture in Silicon Valley and white so few women work there. It wasnt all the case. It always the case. Were a couple details from this chapter that we accepted that i was excited excerpted that i was excited about. The original jpeg was a playboy centerfold. That sets a tone. That was the op