Transcripts For BLOOMBERG Bloomberg BusinessWeek 20170513 :

BLOOMBERG Bloomberg BusinessWeek May 13, 2017

Tells about what happened in kansas and why this is such an important event to put in perspective right now . We are proud of the story and the journalism at the heart of it and reporting. We have gone back to a community in olathe, kansas where two indian born engineers who worked for a Company Called garmin were shot, one of them was killed. One was shot in the leg in february this year by men who yelled, get out of my country. What happened that night in the bar . They were just drinking at the bar, like they do. We sent photographers to this bar, it is not unusual to see a mixedrace group of people having beers. Sharing stories with colleagues. The only thing that is a little bit interesting about this is just how mixed this community was. The people dont know the investment these companies are making. This is a town that has a hindu temple. There were cricket leaks. There are areas where there are indian born families having celebrations of the community. It was disrupted by a man who came in and shot and killed and opened fire in this bar. We tell the story of people who work and have been in this town who came here from california and the east coast, who said we came here for the Great Schools and peaceful life. The american dream. This is a story of americas america. Not trumps america. And it is how this has happened among rising rhetoric, limiting the says. Which is particularly how indians have got access into this country and how it makes people feel so deeply unsettled and fearful for their familys future and for the first time looking over your shoulder as they walked down the street in kansas, and how disruptive that can be. We really need these kind of models and skills training for our workers. This is the workforce we are looking for that will be the next generation workforce. Not the workforce in 10 years but the workforce of tomorrow. Working for these companies in this kind of town. Theyre worried about whether or not they will be able to stay in this country and if this violence is isolated or will be more prevalent the very fabric of the Community Starts to peel away. Oliver at the local level, what is the government and local communities doing to try there is also a big cost economically at stake because people have built up this area . Completely. We spoke to the head of police about responsibility in there was almost a disbelief among so many officials. This is not a to have you ever heard of olathe, kansas . I can be honest and say that i hadnt. This is a microcosm of america that wor ia way of providing opportunity and building an economic infrastructure. In a part of the world a lot of people would not know this is happening. It is happening in parts of india, is happening in japan and south korea. There are communities like this all over the world we dont know about. This is a community that now is under threat, and i think officials feel very responsible looking at their demographic breakdown, looking at what they have built, and realizing the fragility of that. They need to make this community feel safe. You mentioned crimes against muslims, these are hindus and sheiks confused with isis recruits. It is unacceptable in a democracy and i think by bringing the stories to peoples attention, they will understand these struggles the people face and also their successes. Oliver that is what you have done here. Thank you so much. I spoke with ron bartus on the challenges of putting such a sad story on the cover of business week. We have this headline, and it does sort of get to the fact that this is something, this is a crime that happens in a state in the u. S. But has larger implications. We got the most appropriate way to show that was a public memorial for the tech worker who was murdered. We got that worked. Oliver the photo of the victim is not lar. It is small relative to the amount of space and the text is very straightforward. It used the standard bloomberg font. It does not draw away. It is a colorful. It is just very to the point. You dont want to distract from the point. You want people to have a sense of what the story is about right away and on the inside, we have a good shoot of the town itself. For the cover, i think you want toeehe victim first. Oliver up next, the refugee modernizing the way money is sent back to home countries. As venezuela descends into chaos, more and more citizens are packing their bags for the united states. This is Bloomberg Businessweek. Oliver welcome back to Bloomberg Businessweek. In the Global Economic section, a growing number of middleclass that is willing citizens are fleeing to the u. S. , specifically miami. We talked to reporter margaret newkirk. You have a crisis that is getting worse and worse in venezuela. The economic level, i think 5100 boulevards is one dollar. People with good salariear now earning 50 per month. Food, medicine, everything is in short supply. They were coming with very little money. That is different from earlier generations of venezuelans that first started coming here after chavez took power. Oliver for a long time, nezuela was a place where people came to. After the rule of chavez, people it is a different picture. Do they think there is hope or there a life to create here . They miss venezuela, but most the people we talked to do not want to return. They are making a life here. They are applying for political asylum. Most of them probably will not get it. That would mean deportations possibly in two years or three years. Oliver and looking at numbers from your story youd there is estimated 3 million venezuelans by 2013. These are numbers that keep adding up. How is this shaping the culture . I thought it was interesting that it has shaped miami. Where you have a venezuelan demographic that is booming. You see the little restaurants that sell venezuelan sandwiches over the place and the skyline has new venezuelan desires and venezuelan desis the highrises. Then you also have lots of venezuelans looking for help. Something kind of knew. Oliver is the entire families coming over . Is a young folks working to send money back to their country . Is the wave of immigration out of venezuela something that will continue . It is both. It is both a young, single people and families. I did not talk to anyone who was sending money back other than a guy who was trying to help his mother get medicine for cancer. A couple of numbers are pretty interesting. You had 14,000 political asylum requests in the fiscal year that ended stear, that ended in october. So far this fiscal year, 14,000 already. That is six months. Ion a pace to double. Oliver speaking of refugees, in the markets and finance section, once a somali refugee, he is working hard to make it easier to send money back home. This month, his onli mey transfer program is connecting to android pay. I talked with reporter edward robertson. Kenya was the first country where you saw really widespread dissemination of mobile money. That is 10 years old and it is long enough to look at the impact. A study m. I. T. Professors did la year showed it had listed about 140,000 households out of poverty. It has done so because it provided them with a way to pay their bills, save money, collect money, not get robbed, which is a factor in many of these rural communities. Kenya is the place where you can really start to see Economic Impacts from mobile money. Now remittances are affecting that, and increasingly as flows from families in the u k, the united states, japan start to go to africa, india, southeast asia, you will probably see more economic influence as that kind of ratchs the volume of hard currency that goes to those markets. Oliver prior to this, was it cash and envelopes . What was the method for remitting money back to thho country . It was anything and everything. It was going to remittance outfits that set up shop on main street and newsstands, it is going to western union, which is the number one Money Transfer player worldwide both to developing countries and the developed world. It is using ancient networks. They have been going for centuries and transfer money thugsystems based on trust, Like Community trust. This has gone on since the beginning of civilization, people have moved money around. Now with the advent of the smartphone, that is why you are starting to see this big change. Oliver when it is happening in the realm of the electronic, i imagine there are also legal hurdles that have to be crossed. What does this open up in terms of who is sending money, what the money is for, and is that potentially going to throw a wrench into applications like world remit . There are a lot of rules and regulations to come in to play since 9 11 and trying to Counter Terrorist finance networks. There is also a lot of rules of rules that have come into play to fight moneylaundering and other illicit activities. Those systems pose a challenge for those digital remittance outfits because they have to ensure they comply wh em. Increasingly, they have turned to software that basically surveilled all of the transactions that run across the platforms and tries to fly tries to flag anomalous or abnormal behavior that may indicate that there is something illicit going on. These platforms are really depending on other Software Providers to help them flag suspicious activity. That also poses internal challenge for regulators because they have to make sure they are monitoring all of the extra volume that is coming on through these online players in addition toheraditional banking. Oliver in the Global Economic session, cyprus has been known as a hub for russian finance. Now they are finding new and sophisticated ways to camouflage what is happening. Even the u. S. Get you residency, a lot of European Countries do it, too. All the small islands in the caribbean do it. Cyprus has perfected in the last two years because cyprus relies on Foreign Investments. Everybody i met over there told me that. Officials, businessmen, bankers. When Foreign Investment dried up after their crisis, they needed to find new ways to attract that. They thought, ok, we can speed up how we get passport for foreigners. It is really fast, it can be as fast as three months. A russian guy and met while i was there, over dinner and drinks, he got it in five months. He bought two villas, and by december, his passport was in the mail. He got it. It is faster than any other place than you can get it and it is easy. You dont even have to live in the houses. You can rent them out immediately. It is an investment. Oliver why do russians in particular want this . They have multiple reasons. Russians have been trying to get their money out of russia for a long time because it is a scary, unstable country. Politically, youre in one day and out the next day. One morning you wake up with cops at the door with all of your assets seized and you are in jail. You want to keep some of that out for safety. A passport helps you with the safety of little bit, especially if you get it for your family, it helps to get passports for all your family very easily. If you keep some of your investments in Shell Companies in countries like cyprus then the russians cannot see them easily. Oliver russians have been doing this through Different Countries but because cyprus had a need as well, it is supplied meeting demand. Cyprus gains from this and that in order to get this passport, russians have to invest in something. What exactly are they investing in . All kinds of things. Real estate is a top choice. You can just buy houses or commercial real estate like a hotel in trouble, or even government bonds. Government bond prices have been doing well in the last couple of years because people have been buying them. Just last year they got 4 billion euros of investment. For such a small country, that is one quarter of their economic output. Oliver coming next, james comey out of the fbi. And the return of blackmarket heroin. We talk about how it is spreading across the united states. This is Bloomberg Businessweek. Oliver welcome back to Bloomberg Businessweek. You can catch us on the radio on sirius xm and in new york, boston, washington, d. C. And in the bay area. And in london and in asia. In the politics and policy section, this week, President Donald Trump fired fbi director james comey. The move raises more questions than it provides answers. Why was he like go and ultimately, what does it mean for the white house ties with russia . We talked with editor matt phillips. The story the white house is telling is that the president received two letters from the department of justice. One written by the Deputy Attorney general rod rosenstein, who was just confirmed two weeks ago, laying out the case against jim comey. Gug that he had lost the credibility and faith of career staffers inside the fbi. As evidence, they pointed almost exclusively to his handling of the Hillary Clinton probe. Specifically they were angry about the press conference he gave his last july in which he came out and criticize clinton but said no prosecution was warranted. These were all facts that were well known for months an months. On the campaign trail, then candidate trump praised comey by and large for reopening the investigation just 10 days before the election. Trump then took those letters, acted on them, sent a messenger to the fbi, his longtime bodyguard, to deliver a letter to director comey, who was in fact in los angeles giving a speech to fbi staff out there. He, as it turns out, found out about his own firing from the news. Oliver what can we read between the lines in terms of why they decided to revisit the situation of james comey and the investigation . Timing is the question everyone has. The timing is very bizarre. These are all facts that the that have been known for months and months. The president has actually on a number of occasions praised director comey, even since he is taken office. So even republicans are scratching their heads on the timing of this. The elephant in the room is really the russia question, and that the fbi was conducting its own investigation into trumps campaign. And what, if any, collusion or coordination existed between his campaign and the russian government. So now the president will be in charge of nominating and fbi director, who will be leading an investigation into his own campaign. It is very strange. There is no real historical precedents for this. Oliver also on the politics and policy section, 2017 shaping up to be a recordbreaking year for the heroin business. On top of that, the product is more dangerous than ever. I have been reporting on the heroin epidemic off and on, and one thing i was noticing is when you talk to police officers, first responders, people who are dealing with dealers and addicts on the ground, the Market Dynamics of heroin are shaping up to make 2017 probably the worst year ever in terms of overdose and profit motive for dealers. That was what i was really after with the story. What is the supply and dynamics what is the supply and demand dynamics as a traitor like . Oliver where did that taken you . Regionally, we know there are hotspots around the country. What area did you look at . I was interested in cincinnati in particular. The reason cincinnati piqued my interest is because they have seen an influx of some of the most dangerous synthetics. They are really potent and toxic, and the backside of that is it kills customers. If you are a heroin dealer and you cut it into your product, youre risking causing overdoses which doesnt make a lot of sense if youre trying to make money off these people. T the reason they do it is because it increases the margin so dramatically because it is cut so many times before you sell it because it is so potent. It is also a marketing device. If you have it in the drug, Everybody Knows it is the most potent thing o tre and people are chasing bigger and better highs then fentanyl, it is a really strong way to say, i have the strongest heroin. As you point out in the story, one is an elephant tranquilizer. It is not approved for human consumption. It is approved for use by veterinarians to tranquilize large animals. It is actually called rhino on the street, i found out while reporting on this, which harkens back to the fact that it is a tranquilizer and not meant for people. Oliver this has been a foca point in the past year or so on the campaign trail. President trump along the campaign talked about drugs coming from mexico. He also talked about the Opioid Epidemic and what he would do to stop it. How well are those promises holding up in early signs from the administration of what theyre going to be doing to combat it . I had one person who researches this describe to me the situation the federal level as chaos. We dont know what it is going to look at yet. On one hand we have President Trump clearly speak out about the opioid crisis. He obviously is aware it is happening, he obviously has made a lot of promises about helping dl with it. At the same time, we have the Republican Health care bill that would reduce medicaid substantially and reduce treatment. Weve also seen the draft budget from the white house suggest they might be cutting one of the major offices that deals with the opioid crisis, a 95 funding cut. If that comes to be, that is a dramatic move. At the same time, they could be reshuffling that money elsewhere. We dont know all the details. At this time is not totally clear what the administratns response will be. Oliver up next, the eu watchdog investigating apple and google. And why cruise line operators believe their industry is the best position to profit from cuba. This is Bloomberg Businessweek. Oliver welcome back to Bloomberg Businesswee im oliver renick. Me big corporations target europe, there is one e. U. Official that wants to make sure they play by the rules. Then our vacation guide atan save your life. All that ahead on Bloomberg Businessweek. Oliver i am back with megan murphy to talk about some must reads in this addition. Edition. Lets talk about politics. Megan this comes out of the

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