This is looking at donald trump and vladimir putin, a topic that never seems to get all. It is counter intuitive. It looks at who is winning this game and who is likely to win this match. We see donald trump making this outreach to him that we have never seen a republican president elect, trying to cozy up to him in some sense, recasting that relationship with russia. What peter delves into is what is Vladimir Putins longterm game. His history is a zerosum game, by cozying things up, what is he likely to gain . Is theomacy, it Strategic Mission and outlook for the country that is important. You can try to have a personal relationship, but when you are dealing with putin, he will be thinking three steps ahead on the chessboard. Trump talksnow about his business and deal making history, but there is a salient point, there is no higher power to enforce political dealings rather than business dealings, so what can happen is anything. Megan putin does not have that much to deal with. His economy is struggling. Oil exports are challenged. His population is shrinking. It is hard to see where they are going, so he is playing with half a deck. Doing that iss by destabilizing western governments, whether the hacking allegations, running his own pseudonews organization. What will be really interesting when trump and putin do matchup as elected officials and when they get into negotiation, who has really got anything to deal with and how trump will respond to someone who may not be playing the same game and have the same agenda he does at all. Oliver moving to the global turkeys section, president erdogan hunting down the people behind the coup and how its bleeding into turkey. Megan this story delves into something you dont see written about a lot, the purge of the People Associated with this coup. We have found one of the largest peanut manufacturers who has been decimated, a business one singled out as a model of entrepreneurship, and that has a knock on effect down the chain. This purge,ee is this hunting down of suspected ampathizers, is having hampering affect on turkeys growth. Their gdp has gone down, and president erdogan had to encourage people to go out there and support the turkish lira. The economy was one of the ones with the most room to grow as recently as 12 years ago. The covernally, story, a fascinating feature, talking about a big airline. Piece, theive favorite headwinds facing the ultra luxury carrier. Deserttwo planes in the to one of the more globally dominant carriers out there, how it will continue, and do they have more room to expand or are they reaching the end of their road in the sky . Oliver we got those details from matt campbell. In europe and the u. S. ,mirates is ubiquitous unavoidable, the worlds biggest Longhaul Airline by a huge margin. Outstandingflying capacity, number of aircraft and seats that most Industry Analysts never thought was possible. Growth,rocess of this it has attracted a lot of enemies, notably in the u. S. Where the big three u. S. Arlines are stepping up campaign to essentially oppose the amount of service that emirates and its two smaller persian gulf rivals fly into the u. S. , arguing these airlines are massively subsidized by their governments, and of course this was looking like a long shot, but then came donald trump. It will be a very challenging few years for emirates as it attempts to break into the United States. Lets go through some of what you said. There is a lot in terms of how emirates got to where it is today. Take us back 30 years ago, how did it come to be this massive airline . Well, emirates is inextricable from the story of dubai as a whole. 30 years ago, it was a backwater, very few people had heard of the place. Dubaiou had the rulers of , which is an absolute monarchy, part of the federation of the uae, who decided they wanted to create a middle eastern singapore, a center for business, tourism that was clean, safe, and orderly, and would be a Meeting Place for the arab world and the broader middle east and african region, so they set about doing this, building development, building the port so dubai became a big maritime center, but the most important way they did this was through an airline. They figured if we have a worldclass airline that can bring the globe to our door, that would contribute immeasurably to the growth of dubai, so it grew and grew to the point where it dwarfs a lot of what we think of as larger airlines. Of this story here is also as you point out, it is kin to the story of dubai in general, government backed entities and business. You start off with the control exerted by the company over its employees, down to the make the Airline Stewardess is where. Tell us how that degree of control and oversight is so important to the growth story . While emirates are adamant that they are not subsidized by the government of dubai, that they dont receive cash, advantages over their competitors, there is no question they operate in an environment that is pretty unique. Their chairman is the uncle of dubais ruling monarch. Also runs the airport regulator, airport authority. He runs as the chairman of the citys largest a, so there is a enjoyed atfluence the top of an emirates group. Is an the desert, there fiverunway new mega of being tolt i the government emirates specifications. It will be called, believe it or not, dubai world central, which i would say tells you something about the ambitions embodied in that project. Similarly, unions are banned. There is no question that emirates is the Favorite Corporation of the government of dubai, and in that way enjoys advantages that are just unimaginable for other airlines. Turning theng tholiver emirates a story into a cover image was the job of rob vargas. Sometimes they provide is things that feel flat, but the images they gave us encompassed how they see themselves. Oliver they gave you a list of photos and you guys picked one . They had images of men and large comfortable beds, women getting out of the spot, a beautiful bar scene, all available on their planes. Oliver it is all luxurious. This bar is on a plane, four beautiful people, reinforcing the point of the story that it is very luxurious. That is how they made their name. We thought this one was our favorite almost right away. Then we were trying to think of a way to make it a cover. We had this imagined conversation between these two bank people at the bar. Oliver there is also a great caption that says, are they running out of air space, which points to a more serious part of growingy, theyve been a lot, and can they sustain that . When you are growing as much as they have, you are bound to hit a ceiling at some point. What may happen to the 20 million americans who have Health Insurance under the aca if republicans do it they promised and repeal it. Plus, a controversy and tied to the kremlin for Donald TrumpsNational Security advisor. This is bloomberg. Oliver welcome back to Bloomberg Businessweek. I am oliver renick. In the politics and policy section, despite rhetoric from republicans, obamacare is not in a death spiral, making it tricky for the gop to follow through on its promises to repeal the law. My story in Bloomberg Businessweek is arguing that republicans are in a pickle here. They have said repeatedly they want to repeal obama care. They tried repeatedly while obama was in office and failed, and now they can succeed. It is like the dog chasing the truck. A catch as the truck and it does not know what to do with it. That is a Chuck Schumer line. They dont have a plan. So what they are trying to argue is that they need to come that so Many Americans would lose Health Insurance, which is what would happen if they repealed obamacare care and did not replace it. So what they are doing is making the case, we did not kill obamacare. Obamacare died of natural causes, failed from the start, couldnt possibly succeed. All we are doing with this repeal is putting it out of its misery. That is the argument. Oliver so it wasnt covered under a obamacare . What is the case they are making . Carol are they right . The economists who support the republican line talk about something called a death spiral. In the concept of a death spiral, it is actually pretty elegant and does hold in some cases. The argument is that when you have a pool of people of mixed health, some healthy, some not, if the premium is set too high, the healthiest people will say it is not justified for them to pay that much, so they will drop out and not carry insurance. Then that leaves a sicker population, and so the insurers in order to make money have to raise the premium more, so the next healthiest tranche of people will drop out and you will be left with super sick people and super high premiums. That is pretty much what a lot of republicans, including tom cotton, have been arguing is happening with obamacare. Except it is not true. And let me explain why. Iss happens, the spiral basically being shortcircuited by a couple of key provisions of obamacare, because they knew that would be an issue and took steps to prevent it. , you have tondate have coverage or you get a tax penalty. And that has some effect, but the stronger one, the stick, the caret, which is premium support. If you are below a certain threshold of income, you get help paying your obamacare premium, and if the pool gets sicker and so the insurers have to raise the premium will it is the government, not the individual, who takes up the extra so you have no incentive to drop out just because say some others have dropped out, so theres going to be a problem, but it wont cause a spiral. Oliver it is the spiral will have to be stopped by some sort of assistance from the government . And that is what is happening. Oliver staying in politics, between book ties Donald TrumpsNational Security advisor and the kremlin. We ask about Michael Flynns work. Your story involves two companies, then the relationships between those companies, which also brings in michael flynn, named as National Security advisor for president elect donald trump. Flynn until group, general flynn was the head of the Defense Intelligence agency, so he worked as a Consulting Agency with Cyber Security groups, drone companies, and runofthemill defense stuff, but also got involved in 2016 with a Company Called brainwave science, which is trying to Sell Technology that says it can tell if you are lying or not by doing a brain scan and reading your brain waves. Carol does it work . There is debate within the scientific community. A lot of people question the validity of this and think it is junk science, so that is debatable, but general flynn went into it. He was brought into in dorset. According to the people who run the company, he wore the ,elmet and did a demonstration and you put this on and it read your waves, like something from young frankenstein, and it made him go and he met 10 times, he set up Flynn Intelligence Group to do the training. They sold these two Government Agencies and they were going to do the training, and according to the Company President , he made different introductions to Law Enforcement agencies. Oliver he jumped right in, and in the process of which, overlooked or ignored the role of a board member at this company. Tell us about his history and been the target of investigations for his relationships with kgb and russian spies. He is one of two principles of the company, and it turns out he has a history of selling Sensitive Information to the russian spy agency. In the 1990s, he was involved in russia. In the early 2000s, he pleaded guilty to selling biotechnology to a russian operative. In the course of that, the fbi came out with evidence that he had been part of a spy ring that sold Missile Defense shield technology to the russians. The guy he met with, who was a notorious kgb agent, met him in cyprus and overseas come a got hundreds of thousands of dollars to Sell Technology about transistors, Missile Shield technology, and u. S. Helicopters , so general flynn, this was a person he was doing business with, but trying to help him get inroads into the u. S. Law enforcement and defense establishments. Rules clearlyent state this is not the kind of company that a government contractor, military contractor, should be dealing with. There is a publication they put out Available Online that , convictedctors people, and it warns people in the Defense Industry and Defense Department that spy activity does not happen like james bond movies. It is very monday and things and says here is a list of 100 beene who have convicted and you should stay away because they have ties to intelligence agencies or shown to have criminal backgrounds. He was written of extensively in this. The question about general flynn is why he did not do Due Diligence . Oliver it is basically an encyclopedia of spies. Not even that, but you get that by googling him. You google the stories about the spy trial. Next, rogue trades and a ponzi scheme that investigators say could be the biggest investment fraud since Bernie Madoff. We will introduce you to baby monitor aristotle. Oliver welcome back to Bloomberg Businessweek. I am oliver renick. You can also catch us on the radio on sirius xm 119. 99. 1 fm in washington, d. C. , and in asia on the Bloomberg Radio plus app. And financets section, why it took great you later so long to catch on the rogue trades and schemes that Platinum Partners. Its peakedge fund at manage 2 billion and flew under the radar, founded by two orthodox choose from new york ofs from new york, and much its fundraising was from the Orthodox Jewish community. Philanthropists, so they met people through that. The u. S. Month prosecutors in brooklyn arrested seven People Associated with platinum. The authorities are now saying a 1 billion fraud and the hedge fund had been inflating its returns for years. Carol talk about their track record, right. It was kind of review that it was so consistently a performer. Chart thatis was a went at a 45 degree angle up. Carol all good. In the main fund, they returned to 17 a year from 20032015, some of the best returns you are ever see from a hedge fund. Oliver even during the financial crisis . No downes, no losses, years. They had a second fund that was lower, but only one down month in that fund, even more consistent. If you look at the sharpe ratio, adjusted of like risk returns, the main fund was reporting returns that were nearly as smooth as the fake numbers that Bernie Madoff posted. Oliver that is what true scrutiny . This is too good to be true question mark had to the sec get a whiff of what was going on here . Platinumted looking at two years ago because a lot of these return numbers were amazing in that few people had heard of them. It was almost a little weird that the fund had only 2 billion under management if and its great returns. You would expect it would be much acre. When i started poking around, there were so many weird things that the fund had been involved with over the years. Carol such as . 2007, there was a rogue trading scandal at the bank of montreal, and Platinum Partners of trades. Other side bank of montreal suit platinums founder and accused tim of helping the rogue trader, may be coming up with the ideas for these trades. Oliver are we talking equities . What kinds of assets . These were gas options. Platinum call themselves a multistrategy hedge fund, but that meant they would do almost anything. From people i talked to come up they would take meetings with someone, someone who needed money for crazy ventures, and they would loan people say 10 million, 20 million at a pretty high Interest Rate to pursue crazy sounding things. Carol that was like warning number one. Yeah, that was one morning. In 2011, a big ponzi scheme grew up in florida, run by this. Awyer, Scott Rothstein he had been telling investors they could participate in his legal settlements, like basically you would give scott hehstein 50,000, and when got paid for a case that had already settled, he would give you 100,000. The returns were great, and he had raised about a billion dollars with this, but if you are a sophisticated guy like Platinum Partners, maybe you shouldve thought this seem too good to be true. Oliver up next, how many of our pets become overmedicated and over vaccinated. In hishat, george lucas quest to build an art museum. Anting a sizesix, anting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Hey, drop a beat. Flix . Show me orange is the new black wait, no, bloodline how about bojack, luke cage oh, dj tanner maybe show me lilyhammer stranger things, marseille, the fall in the