Economics section because europe is really getting kind of a super election cycle underway. Were watching a referendum in italy. People are looking at italy because its a good barometer of way that the voters across europe think about how happy they are with their government. Isn though the referendum something that seems fairly arcane, changing the way the parliament is set up in italy, cutting down the number of senators there. We all seem to have lots of governments turning over. Over 300 senators and they are cutting it down by about two thirds. It is supposedly going to streamline government but allows lots of things within government to change. It tells you if people are angry enough that they want big changes in government. See it happens, you will across the continent in places like france and have important elections later this year. Oliver it is sort of a peach or dish. That will be important for this sort of globalization coming to a halt. That is one of the problems. Populism has gotten a big boost because there have been employment problems, people worried about immigration. Security is an issue. We have to figure out how angry people are and how much change they want. Oliver a slightly less serious topic. It is a fascinating story zahra has gone from a to being the biggest fashion retailer in the world. Style. Nk there is a somebody is out there saying this is what people wear. Theyve put that upside down and their 350 designers in spain and they try to figure out what is hot. They use data and information they get from countries around the world. Every night, they are getting information from websites. Also, they are getting information from consumers in big, major markets like moscow, new york, tokyo. Havethey have done is they moved a lot of the Production Capacity to spain. It doesnt sound smart because its spain. But what happens from the far east, it takes months to sell it. They want to do it much quicker so that they can turn passion and a couple of weeks. Is, people think it is new. Ive got to buy it. Is 24 7 fashion. The cover story like pipeline explosion. Tell us about this narrative. This one pipeline basically for millions of people. Pipeline safety has become an issue. Carol Christopher Leonard actually visited the pipeline and we caught up with him. The pipeline was built in 1962. Wastime it was built, it the largest privatesector Infrastructure Project in u. S. History. It is a pipeline that serves a really vital role in the u. S. Energy infrastructure. The pipeline begins in texas and louisiana where there is a large concentration of oil refineries, and it takes a finished fuel product by diesel fuel and gasoline all the way across the southeast, of the eastern seaboard from atlanta to new york and ends in new jersey. Amazingly, about half of the fuel used along the east coast is transported through this single pipeline. It 50 Million People a day depend on it for fuel. Carol 1. 4 million gallons of gasoline every day go into the pipeline . Correct. That is just the line that carries gasoline fuel. Another line carries an equivalent amount of diesel fuel and other fuel products as well. About the Colonial Pipeline this halloween, you probably learned about it because it is a big story. There was a big explosion. It was sort of a followon effect for the large accident that happened in september. Back in late september, this pipeline spring a leak, essentially. Gallons of00 gasoline went spilling out into the surrounding woodlands. Underscored the importance of this pipeline. They had to shut off the gasoline flow. And when that happened, gasoline on the east coast of the United States plunged it their fastest level in u. S. History. Stocks fell all across the eastern seaboard as gasoline stations realize they werent getting supplies to come. Colonial tried to fix this wiki section of pipe that spring a leak in september. They hired a crew in october to start doing permanent fixes on this aging section of pipe. What happened on halloween was really tragic. We dont have the details yet, but we know a crew of nine men was excavating earth around the pipeline and somehow, the earth moving tractor struck a pipeline. T exploded a column of flame shot more than 50 feet in the air. One worker was killed immediately. Construction workers were terribly burned and taken to the nearby town, birmingham, to be treated. We saw the flow of gasoline was immediately stopped. Youre going to have accidents in any industry, but theres worrisome is that has been an increase in the number of accidents or explosions in the last 12 months. It is an aging piece of infrastructure. About 50 years old. They have had six incidents. Six weeks this year alone. Ants as many as they had alabama for the previous five years altogether. There has been a sharp increase in incidents just in alabama. Comment to would not me at all as to what is driving that increase. It we dont know what going on in alabama at this point. If you go back and look at the pipeline structure as a whole, we are also seeing an increase in accidents yearoveryear. We are seeing the accidents are getting more and more expensive and doing more and more property damage. Colonial federal regulators, the National Transportation safety board are all investigating at this time. Carol turning it into a cover image was the job of the creative director rob vargas. In october, the Colonial Pipeline it was hard to get an image of that because it happened very quickly. We didnt have a photo, so we turned to photoshop. Created this morning sign warning sign. In this hellish blaze. Stating pretty plainly. In the fire on the background. Its not often you take an image and blowout the cover. See,om the images we did it did look like a Small Nuclear explosion. It seemed like a very intense blast. Wanted it that without showing the news photo from afar. The company itself is also exploding as a result. They have had a few incidents and we want to make sure that that gets on there as well. Paulson bet on donald trump when most of wall street said, no, thanks. Now hes reaping the rewards. Oliver and Hillary Clinton supporters on wall street are changing their attitude about a trump white house. Carol welcome back to Bloomberg Businessweek. Oliver in the markets and finance section, john paulson seeing a huge payoff. Carol i spoke to reporter joe light. A big shortous for he made before the financial crisis. Subprime mortgage loans. Dollars. Of and hes moving on to other issues. Carol fannie mae and freddie mac. Hes also had some interest in for a good reason. Thats right. At fannie mae and freddie mac are at the center of the u. S. Mortgage market. There are a couple companies taken over by the government in 2008. And eventually received 188 billion in taxpayer bailout. Oney the curiosity is that even though the government took over the companys, they left a lot of fannie and freddie, and shares. At the time, they seemed worthless. As the Mortgage Market started investors,rtain paulson among them, though we dont know when he bought his shares, they started to see the value there. He is making money on it . The share prices have risen a great deal since the drop of the crisis. Fannie and freddies bailout. All the profits to the u. S. Government. All the profits to the u. S. Government. The seal those profits start flowing to shareholders again. It is very much an outstanding question whether the administration or congress will it to happen and court cases where they start to change that policy. Carol this is where the story gets interesting. I think everybody has been trying to get their head around them for years before the crisis. Are they Government Agencies, cause i Government Agencies . They were publicly held entities. Its kind of interesting. John paulson made a bet on donald trump. He was out there early, backing donald trump. Its curious to see what kind of leverage they will have, maybe be more favorable. Those profits will ultimately go back to shareholders. John paulson has been spending money lobbying or supporting donald trump and his affiliated campaigns, if you will. Joe also became involved in the Trump Campaign early on when it seemed like trump didnt have a chance of winning the presidency. Than 300,000ore , but also torump beforeican becoming involved in the Trump Campaign and thousands of dollars on lobbyists. Basically trying to get in the halls of congress, get in the ear of lawmakers who have influence on proposed reforms. Want to save fannie and freddie, democrats who want to eliminate and save on the republican side, they have been trying to convince some lawmakers to go to bat for what paulson would say are the rights of shareholders. Theseght to a share of profits. Clinton some supporters are turning around. Its not that they suddenly dislike clinton and love donald trump, the reason is they think they will have things go well for their wallets. Expecting tax cuts, to be deregulated, Interest Rates to go up. Had their feelings hurt during the campaign when trump was making fun of them, but now i think they know to look at their wallets. They say im really upset about the things donald trump says and then ims, women, get greedy and i know things are going to be good times. It was amazing to hear someone say that to me in an interview. At least he was being honest. He was saying what a lot of people are feeling. You work for a big bank. Whereme through this era bankers had to deal with a lot of regulation. The dodd frank act was put in place to prevent a Global Financial crisis and it meant some of the rules of the road will change and people will expect those rules are going to change again and will make life for the big banks a lot easier. Oliver it doesnt take a genius to look at trump when he talks about whether or not its going to be good for Financial Markets and banks. So why is the sudden of tiffany that this guy is going to be great for us they had to know that along the way . Was it the toxicity of supporting trump in a major urban area . Justthink a lot of people didnt think he was going to win. There is also a third dynamic that hints to what youre talking about. Trump is inconsistent. He talks about rolling back doddfrank. Bankers expect life is going to get better for them. And of course doing things like a moratorium on new regulation. On the other hand, the republican platform for 2016 has in it that there will be a new glasssteagall which would be really disruptive to wall street. Wall ineagall put up a the stock crash when the Great Depression started. New glasssteagall would be pretty annoying for citigroup which would be putting together with travelers. Created, they was were doing it illegally with the expectation that the wall was going to come down and it did. That is what we still have citibank. If it comes back, these banks are in trouble. You can say the bankers really believe when trump says hes going to lower their taxes and deregulate their industry. They do not believe him when he says this populist rant against wall street and the republicans suggest a new glasssteagall. That is my understanding after speaking to these people. Do autocrats know how to lead a democracy . Reemergesul manafort as a player at trump tower. Carol welcome back to Bloomberg Businessweek. Oliver you can also listen to us on the radio. 1200 in boston. I deny. 1 fm in washington, d. C. Carol and in asia on the Bloomberg Radio plus app. A controversial figure in trump land emerges. We spoke to reporter bob coulter. Steve bannon was supposed to be the mastermind that was going to bring trump of victory. He resigned in august. It seemed like that was going to be it. And we would never hear from him again. What ive reported out is the idea that he never went away. He stayed close to trump all the way through and he articulated the strategy that rot trump the victory. Steve bannon was making noise with fringe groups. Real centerget the of america to go on trumps side, that was all paul manafort. It speaks to his power as an unseen force for decades. I take a look at the scope of whatareer and evaluate might be in store for him in the future. The trump administration, we believe he will be antiestablishment but it doesnt seem like it will ultimately work out that way. Paul manafort seems to be the ultimate washington insider. Insider is the perfect word for him. He came up in the 70s in young ofublican circles and health the gerald Ford Campaign and Ronald Reagan campaign and invented the culture of lobbying donald trump seems to make a lot of noise about not liking. That broughtfor these controversial foreign figures to the bush white house. It was manna who worked on the Dole Campaign in 96 and trump turned to him because he couldnt find anyone else to primarieshen his looked like the end of him last spring. Oliver he popularized the phrase influence peddling. Its a synonym for lobbying. Of the time, he likes to be below the radar. A flashy and welldressed guy. Es not a public guy hes not flamboyant. During this hud scandal in the late 80s, he played a part in the directing of federal funds. Public flat out to the that some call it lobbying and some call it influence titling. It depended on how you define it. Carol you made a lot of money doing this. You profile him. Hes a nice dresser. He has lovely places. Isis a lowkey guy but he involved, from one we are hearing, still, in the trump administration. He was in touch directly with trump on how to handle the jim comey revelations that the fbi was going to look again at hillary hoss emails. A males go back to michigan. You can win michigan and trump did win michigan. Tell us about the background and how they got to know each other. They met in the 70s through roy cohn of all people. Of those ragtag group swirl of famous people need each other. Defending his casinos against indian casinos that were going to come up. He knew manna for it that way. When manna for was in charge of the Republican National convention, it would bring george bush a victory. Trump came and visited in there and took a look at the campaign operation. Andas very impressed started to get a feel for the sort of thing that manna for did. Did. Ul manafort his say two friends of youve got to get metaphor to help you with the campaign. He called them and pick them up and the rest is history. Carol why trump conflicts of interest may become the new normal. And 700 thousand immigrants currently shielded from deportation in the u. S. Carol welcome back to Bloomberg Businessweek. Oliver clues on how donald trump might run his presidency by looking at autocrats around the world. Carol and what it would take to remove conflicts of interest. Oliver and the tool that businesses have to fight Sexual Harassment. Were here with jim ellis. One that is particularly interesting is what is happening and in particular, Chinese Investment in london. It is a strange time given postbrexit. In the Financial Center at risk. They are talking about not investing in london order of reducing staff. The chinese have decided that a bunch of banks are putting money behind huge Financial Services development in london that would basically be the home for lots of chinese businesses in london. They say it will remain a financial market. It will play the fact that they can make a lot of money as well. It is sort of counterprogramming. They are hoping that wont happen. They have their own companies. The technology section, and uber won a b. Elements. Fun we hear so many people that want to get into the right healing start a business. Raisedsupposed to have 250 million. The only raised about 40 million. They spend big on offices, multiple continents. They had parties. Everything from freeflowing champagne to exotic dancers. They gave the impression the big money was there. It turns out it did not work. The app that this was all supposed to go for didnt work as well. True story of investors and markets getting into getting ahead of themselves. Ascertaining what donald trump is going to do as president , you look to a particular type of leader, the autocrats already in place. Cracks everybody keeps saying that donald trump everybody keeps saying that donald trump, weve never seen anything like him. This wholed thing about unelected autocrat has been done in europe. It with putin, people that come in with strong, right wing, authoritarian leaders. Try to take a look at the common things there. It gives you a hint of whether we can see trump follow the same thing. You guys take a dive into why unwinding donald trump is not going to necessarily be so easy. Trump is his business. Is a licensing machine that praise off of him and his persona that makes it very difficult to think about how you can take trump off of all these buildings that are there trying to get people to pay more for rent or office space. They might contractually need to have him involved. It is a big problem. He wants to maintain the structure and keep his children running them. It will never have anything quite like this before. Oliver a lot of questions. We spoke to the reporter. Carol donald trump sold all of his business interests, it would get rid of the conflict of interest problem. Walk us through that. What everybody seems to be he has these, Business Partners coming to visit him as hes making these transition decisions. And hes going to have all of these business ties with guys and others. Everybody is really concerned about how that will affect how trump governs. All of that is up in the air. Do isere trying to anything we can do to distance himself from the businesses that could pose a lot of problems and a minimally keep everybody questioning why he is doing what hes doing as he engages in countries where they have business ties. Carol selling his businesses are not so easy. Businesses are incredibly unique. You have trump golf courses. You have his licensing deals with Internation