Not such Great Stories but overall it was not a bad year. Besides those two. Megan it will be one of the seminal pieces. It makes the point we could talk about the Samsung Phone catching on fire, hacks or some of the on fire, hacks or some of the companies that didnt have a great 2016 but the point is underneath that we have seen things like uber make real advancements in self driving cars. We have seen sort of technology and computers ability to read speech advance at very accelerated levels. It does show under this new president ial administration as well, how technology is really going to step forward and put itself out to come out of the politically neutral stance it has tried to take. Is this the moment where tech comes out of the shadows, politically neutral stance that it has try to take in terms of privacy and technology and be forced under trump to make a stand . And not just technology. Tell us about why you are doing that now. Megan look, 2016 has been full of surprises in many different ways. It is time to step back and say, look, were racing a sort of unprecedented rise in economic populism and social unrest. Sort of threats of terrorism and other things, but we wanted to point out some of the relationships, some of the parts of the world where i think people are doing things you do not know they are as good as they are giving. We want to step back and look at business and say we should recognize and celebrate people who are fighting for sustainability and fighting for fishing regions in the South China Sea and take a holistic view of business. In a much more comprehensive look. Carol speaking of business, one of the features is wikipedia and what they are trying to do to make it diverse. One of the great statistics is there are 2300 articles about princess leias home planet. As a star wars fanatic, i was intrigued to read about this. And sort of no articles about sort of some diverse, whether it is writers, politicians this was under the covers and looking at what was uncovered to change that. Whether it is recruiting more diverse editors, really having people have more access to put in these names and flesh them out. It is not easy. You know, i think it is 80 of wikipedias current editors are white and male. Many are saying this has to change and only reflective of a certain segment of society. It continues to be a challenge. But it is a real look on how this can change and what we are seeing sort of across all areas of technology is pushed up instead of down. It is a great story and we spoke to a reporter. Wikipedia, founded in 2001, is an online encyclopedia. It is free to use and free to edit. So, anyone in the world, you, me, the president could go on and start writing encyclopedia entries. And then there are tens of thousands of editors who look at that, change it, and reenter it or change the entry. It is continually selfcorrecting. It somehow manages to be quite good. 10 years ago, people made fun of wikipedia. It was a little embarrassing to have a Wikipedia Page open in the newsroom. You would never admit you even looked at it. And now it is not perfect but it is good and it is about as good as comparable encyclopedias, comparable text books. There are some areas where it is listed in terms of prescription drugs and things like that. But in general, it is good. Carol what is the infrastructure for editors . This is where it gets problematic and interesting. Wikipedias original users were basically Opensource Software geeks. White guys who are interested in tech. That has left the encyclopedia with sort of limitations, certain areas of expertise and does not have. There is not much diversity. You have an editor base that is 90 male, mostly white, mostly in the u. S. You see gaps. The foundation that manages the encyclopedia, manage maybe a generous term. That attempts to oversee the encyclopedia is working on it but so far, they have not accomplished it done. Carol there is no editorinchief. Exactly. No one at the foundation, there is no boss that can overrule an article or commission an article or delete something. It has to come from the bottom up. There are different layers. Those people are just volunteers. There is no overruling a wikipedia editor. That is the filter bubble problem. This is what people have been talking about in other areas. We think of the internet that sort of encourages diversity of opinion. I can read cogent arguments from people on the other side. About whatever my political lives are. I can pretty much read endless amounts of content about anything. We pretty much just find stuff that we agree with. So, during the conversation about misinformation, fake news around the election, one of the things people talked about was a filter bubble. You see an article on facebook that conference biases. You see donald trump just shot somebody on fifth avenue and you are likely more to share that and that kind of perpetuates this misinformation. Wikipedia has kind of the same problem which is you have these group of editors that are interested in tech but dont are not necessarily familiar with all areas of Human Knowledge and so you get problems. In 2013, harper lee, one of the Great American novelist was listed not on a page for american novelist but for american women novelists. You have things like that where there will be long entries on moons in the star wars universe, that but then you will be missing key elements of World History or feminism or topics that are important and dont get the love they should. Carol turning Good Business into a good cover was the job of creative director rob fergus. Rob it is one of those covers that synopsis is an entire package worth of features and like teachers and stories and things like that. Carol the stories are all over the map. It is quite a range. Rob rather than trying to cram that, we went with the overall theme of the issue which is Good Business. A lot of times we do stories that are critical of businesses that we cover so this is in some cases the opposite so we want to have a very positive thing overall. Business. A lot of times we do stories is it easier or more difficult having an issue compared to one story . Rob it varies because it is so different and we had to convince ourselves it is ok to embrace the simplicity of that idea as opposed to doing something a little more conceptual. But you know, a lot of times we will be focused on one story and if we have a good photograph we will put that on the cover. Carol so, you have all of these pictures and symbols of things. Plus, a freaky hand. That is a little bit of a freaky hand. Rob we have one have illustrator that we use as well so we had her render it. It is slightly odd looking. The good part is almost overkill. It is like great. Exactly. Rob if we do something, we will do it at a hyperbolic degree. Carol a warning from poland. What happened when they elected a party similar to donald trump. Oliver an energy firm that is billing itself as a new utility with a lot of big money behind them. This is bloomberg. Carol welcome back. Im carol massar. Oliver and im oliver reddick. In the Global Economic section, the lessons poland can teach donald trump if he doesnt tend to drain the swamp in washington. In poland, you had a government that came to power in october last year and they made some of the same complaints, some of the same resentments and issues that donald trump did in the u. S. Theres support base was out in the countryside and the smaller towns. They came in the case of poland, to the benefit of joining the european union. They came to power promising to sweep away the elite. Polands situation is different from the u. S. Mr. Trump is different but there is a kind of conspiracy of excommunists and liberal allies that have run poland since the 1990s. After the collapse of communism. So, they spent a year now and they promised they would sweep of these people out and got about doing it. They removed 300 executives from staterun companies and put in different people. They removed about 1600 people from the civil service. And replaced them. They removed 130 or so journalists that were either removed or resigned from public broadcasters. They have taken people out of the Prosecutors Office that were under their control. They have been busy doing that. The interesting part is as they began to do that, they pushed up pretty quickly against checks and balances that are in the democratic process. And that has led to a big fight over the Constitutional Court. Carol talk to us about that fight. Where is it going . We have a big moment right now because on december 19, the head of the court his term expired. He has a nineyear term, it expired. He has been blocking a bunch of changes that law and justice has been tried to make the last year. First of all, they try to put an extra three judges on to the court who were not really entitled to be put on. There are 15. They were not the first to do this. You know, before the previous government tried to add an extra two. Those were extinguished by the Constitutional Court itself. They declared it unconstitutional. And now they are trying to push five instead of the two they should be. They have resisted that. The government put through six different pieces of legislation determining how the court should run and the upshot of the legislation is the court it is harder for the court to scrutinize legislation, declare it constitutional. So, it is essentially neutering the court. Carol so if we look at poland and try to understand for those folks in the u. S. What might happen as our president elect donald trump talks about draining the swamp, what are the Lessons Learned in poland . Well, i think the primary lesson is that when you want to do something really radical, that is not the question. Rightly or wrongly is not the question. When you want to move large numbers of people out in order to do that very quickly, soonend to come up fairly against checks and balances in order to make sure that a majority government does not just run roughshod over the rights of the minorities who did not vote for them, for example. That is the lesson in poland. It does not mean it will happen in the u. S. But things have changed enough over the recent years that we can no longer say, look, those countries in eastern europe, they are completely different. They get more radical government. We are getting pretty radical government and decisions now in the west. So, the point of this sort of parable is really to understand come. The pressures will carol next, the seemingly midas touch Goldman Sachs has. No matter who wins elections. Oliver how some colleges tap into their connections in wall street to deliver top return. Oliver welcome back. This is Bloomberg Businessweek. Im oliver renick. Carol im carol massar. You can also listen to us on radio on channel 119 on s iriusxm. 99. 1 fm in washington, d. C. And am 960 in the bay area. In the markets and finance section, how Goldman Sachs comes out on top in the incoming Donald Trump Administration even though candidate donald trump targeted the bank on the campaign trail. It has been quite remarkable. The stock is up Something Like 35 since donald trump won the u. S. President ial election. Some of that, a lot of that has to do with Donald Trumps policies and the fact that a lot of people think he will roll back regulations on wall street. He said, he talked about repealing all of doddfrank. Doddfrank is at least 10,000 1000 pages. So, it is unlikely that all of that is going to get rolled back but some things will be first in line. Carol volker has to do with hedge funds and private equities. It is a ban on prop trading and the other is a limitation on stakes in hedge funding and private equity funds. Both businesses were very big for goldman before the financial crisis and stakes in hedge funds and private equity funds remains big for goldman. They have roughly 7 billion left that they have been working to sell down but have not been sold yet. The prop trading have been subject to the ban as well. It is not clear to us how tightly that ban has been enforced in the last couple of years. Oliver you have after the donald trump election, all these Financial Companies leading the market but then leading into the election, they were portrayed in the best light not only by the public but donald trump specifically. They endorsed hillary clinton. They came out and said she would be a good president. Specifically at goldman, there is a relationship between clinton speaking and Trump Supporters put out in the limelight. How often does this happen that the other guy gets elected . Carol trump did an ad where he specifically targeted Goldman Sachs and said how terrible they all are. Oliver did wall street want donald trump to win all along . What happened here . That is a good question. I am surprised as you are. As a lot of our viewers and listeners are. I think some of it has to do with the fact that a lot of Trump Supporters are not that closely monitoring who his appointments are. My suspicion is i just had a conversation with somebody in d. C. Who has been watching this closely. The point is the goldman guys at the top of the administration creates jobs, brings manufacturing back, nobody will care they are goldman guys. They just want their economic livelihoods restored and brought back. And so, you have a president elect was making appointments, it is during the holiday season. Maybe the people who voted for him who really got behind donald trump are not watching really closely and then, come january into february, the rubber will hit the road and then we will see, oh well, we have a could couple goldman guys, lets see what they can do for me. Oliver as a reporter, i cannot think of anyone more ingrained with your sources. You have been on this beat for a while. When you talked to people on the wall street, what was their reaction the way their own sector has been so favorable to investors . It has been amazingly fast facile. It was hours after the donald trump election and the Election Results came in and we were already talking to people who were saying this could be good for us. We could get behind this guy. The ability for them to quickly switch and get behind the winner, even though i have been doing it a while, was pretty remarkable. Oliver in the markets and finance section, they may not be ivy league but small liberal arts colleges in the northeast have big wall street connections. Carol and sometimes that is good for their endowment. There is this unofficial designation that a lot of people have given to the the northeast liberal arts schools are the ones if you and been able to get into harvard, maybe you will go to colby instead or Something Like that. Still a great school. [laughter] but, they dont have that same intensely competitive application process. You know, they have doubledigit acceptance rates. Not singledigit acceptance rates, right . Oliver how does notoriety and the acceptance rate translate into endowment . How much money they have to operate with . On a very simple basis, it is funny because if you have more applicants, you will probably have a larger class so for these schools they are much smaller. Kind of what their alumni base they have fewer alumni that they can ask for their endowments. Kind of in a tangential way, what their base well eventually look like. Carol endowment returns. We have seen that from a lot of universities. It has not been an easy year. Or so, or two. What about the little ivies . We need to look at a National Average which was a 2. 5 , which is a bad year. For the little ivies, it was even worse. It was 3. 5 . It is about 18 schools we looked at so it was worse than the National Average which is why we really wanted to look into it because you have these prestigious institutions with these investment committees that are full of these wall streeters. Yet, they were not able to cash in on that to produce the same returns as the ivies because the other interesting thing is the ivy leagues, who have a similar type of alumni base wealthy, wall street, a lot of investment expertise they returned a 0. 8 . The big difference between the little ivies. Carol do you usually track the same in terms of performance . They are typically a lot closer. I think we were the first people to ever track the ivies. Typically, they do if you look at the numbers. They do track pretty similarly and that is because this push yale model tail of investing, the diversified funds, instead of doing stocks and bonds, that you hedge funds, private equity. They do all sorts of, almost like strangely unique things for a fund that the purpose of it is to be forever. This year did not pay off. Carol up next, one of the worlds most powerful Fashion Companies it is turning his supply chain green. Oliver what may have a tribute to the company letting down its guard. Oliver welcome back. Im oliver renick. Carol and im carol massar. Still ahead, the men behind gucci doubling down on being environmentally friendly. Oliver investors are lining up to get behind Green Infrastructure products. We will tell you about the man behind the trend. Carol also, the Company Making robot babies. Oliver all of that is ahead on Bloomberg Businessweek. Oliver we are with businessweek editorinchief megan murphy to talk about some more important issues in the magazine. Lets talk about the markets and the finance section, which is about litigating in germany. Caroline not so easy, is it . Megan not so easy. This is quite common across western europe and the difficulty of pushing forward class action lawsuits as a litigant. It goes into the impediment that you face and run that kind of litigation in germany. It is getting consumers and emissions. This guy running this case and trying to generate and form a huge class action to get more , one of the biggest impediments in germany. It is that the lawyers do not get a cut. So there is no incentive