Skip to main content

tv   Bloomberg Business Week  Bloomberg  February 27, 2016 7:00am-7:31am EST

7:00 am
hello and welcome to "bloomberg businessweek." they can businesses getting left up by republicans and democrats this year. we take a look at how the lobbying group to get their act together. the amazing story of the south tiger, he is trying to save the cap from extinction. take the spring fashion quiz. all that and more as we go behind the scenes of the latest snessweek" right here on bloomberg television. ♪
7:01 am
carol: economics editor looks at how corporate america is responding to criticism from u.s. presidential candidates including democrat bernie sanders. republicans such as donald trump and ted cruz as well. >> the screaming you here now from across the potomac is the washington cartel in full terror at the conservative grassroots arising up. carol: peter, you write about how the people are controlling the pitchforks at this point. how is big business responding? peter: very quietly. rou would expect that with thei integrity being impugned it is going to say. they have chosen to take an extremely low-key approach. amondxample, jamie di
7:02 am
was asked what pieces of this guy bernie sanders? he is saying you have a fraudulent business model. every day he gets them with this. jamie dimon is not known for being the most calm person in the world. he responded that he thinks he can change bernie sanders his mind. carol: interesting. peter: and the ceo ford motor, donald trump is hitting them again and again from and factoring outside the united states. he sent a note to donald trump that said "donald, thank you," etc. "we are actually hiring in the united states as well." s don'tnt is, the ceo want to get in it after what we donald trump.
7:03 am
carol: it seems like big business is staying calm. say they have had a lot of victories in washington. goer: why should they public when they can get what they want quietly through lobbying, talking to congress, and working the system? that just infuriates the tea party types even more. people on the left and the right field of business is too cozy with government. when they see business is succeeding anyway it really drives them bonkers. but over the last year that have been signature successes for business. i go to the export/import bank is the one that ted cruz lights into every chance he gets. that was one of carly fiorina's top issues as well. they provide financing for americans to export to other countries. companies like boeing, and caterpillar into the very important.
7:04 am
ted cruz will call it crony capitalism. it looked like it was going down. then it came back. congressack to life in , signed back into law by obama in december. carol: it is a fascinating cycle. you have these candidates bashing big business. at the same time, business is doing just fine in washington. as news of that comes out of this fuel the campaigns. , businessi was saying should not assume it is business as usual. i think things change. every year there is one or two canada to get out there and bash big business. you're hearing it from everyone, even jeb bush, who was considered the good candidate big business would have. he would have a line here or there showing it was that she was his own man. hillary clinton and marco rubio have even been pulled --hillary
7:05 am
clinton came out skeptical of the transpacific partnership the big trade deal that business is counting on. bigl: it is interesting, companies like low taxes and light regulation but they aren't extremists. if they do stick up a like tim cook. opposing the fbi's efforts to get apple to unlock the iphone. there is an example of the world's most out of the company taking on the federal government. so few companies are willing to do that. they are nonideological. they want to just please their shareholders, and employees and board of directors. their work done. the last thing they want to do is go into a big fight with anybody. carol: does history tell us anything? can we learn anything? peter: i think you can. there was no organization formed in 1942 that was formed
7:06 am
specifically because pitbull road at the time that is soon as the stimulus of war spending ended, the u.s. would lapse back into another great depression. that was a serious concern. it didn't happen, but at the time we did not know that. ofs committee was made up prominent ceos and their objective was to make sure that the economy would be strong for the good of all. they were and she mental incredibly international monetary fund, and the marshall plan and saved europe. a very enlightened, self-interest, big picture group. you don't see that much of that anymore. ins have their heads down the books focusing on quarterly earnings. is the right it strategy. if you don't have a good you can'tessage -- if persuade the public that your acting in the best interest, you do invite to the pitchforks. carol: there is a lot of momentum against big business right now. a fascinating story come out
7:07 am
cover story. peter, thank you. remember, you can read his cover story fellow online and on newsstands. coming up, few with a 100 south china tiger's exist on the planet. why is an unpopular x london banker trying to save them from extinction? we had the story when we return. ♪
7:08 am
7:09 am
carol: welcome back to "bloomberg businessweek." david is off this week. stewart is a rich, unlikable
7:10 am
london banker who has 12 tigers. does he do it because it is noble, to turn a profit, or to anger his wife? this is a great story. we spent some time that this guy, who is stewart bray? kit: he is a very interesting guy. he actually is a likable person. he is very driven, very passionate. he is fundamentally a city guy who spent his life in banking. very passionate about things that matter to them. it still happens that one of the things that was important to him was tigers. he spent 10 years of his life, and a huge sum of money, try to rescue this rare species. carol: they are considered extinct at this point. what is the process been for him to do it? it involves money, south africa, and chinese officials.
7:11 am
tell us a little bit about that. is: the south china tiger functionally extinct. there aren't any animals left in the wild. the doesn't mean that aren't any animals left. there are 100 left in zoos in china. you have to persuade the chinese government to give him some cubs, and his plan was to rear them raise them, and breed in the center in south africa and then eventually he would return them back to about habitat in china. carol: he is doing that, right? hasn't brought any back to china. animals at his reserve in south china -- africa. now they have a great home in south africa and a wonderful reserve. they can hunt, breed, and are in wonderful condition. the question is, what happens next? funding them in china will be difficult, and arranging for
7:12 am
them to be sent back. carol: the chinese want them, correct? t: stuart's project has had quite a lot of attention in china. the tigers are a hugely important animal. he has had the animals for 10 years now, and there is genuine pressure to bring them home. many want to see these animals come back to china. there is an idea that if it is a chinese tiger should be on chinese soil. it is a difficult thing to do. they need a lot of room, tigers, because they are solitary animals. there just aren't many places in china where there is enough good habitat for them to go. carol: what is interesting, a fair amount of drama. he has a girlfriend, or former wife, and that has woven through your story as well. he has a lot of litigations and lawsuits going on as well. kit: one of the things about
7:13 am
stewart bray is that he is a very passionate, driven man. delete them to be successful in many things, but also results in him falling out with people that he works with. will's recently, following up with his wife. he is going through a divorce in the london court system. he described himself as a crusader when it comes to things that matter to him. he will pursue an idea vigorously come even if that means potentially clashing with people. he has a long history of litigation and legal feuds. carol: you talk about the divorce, it was initially kind of her idea to do this, correct? kit: he was a banker, it was the late 90's whenever together. he had a busy career in finance. his wife had ended her career in marketing and was looking for something else. she had always been a huge fan of conservation. it was her idea to do this.
7:14 am
he got gradually more involved as the project went on. his job, he really started getting involved in the project and now it is taking over his life. carol: where is he financially? he did walk away from deutsche bank. he is running out of money, isn't he? kit: it is hugely expensive doing what he is doing. he has 19 tigers and an area four times the size of manhattan. they need a full-time staff to look after them and manage them. they have dozens of kilometers of electric fences that need to be maintained. he has been doing it for 10 years with its own money. at some point, the charity will run out of funds. he is trying to work out a way to fund it going forward permanently. carol: where is he today at this point in his mission during the
7:15 am
south china tiger's back to china? kit: we are at a critical project right now. the first stage has been a success. he has increased the number of tigers, they can hunt, which is important. the next stage is getting them back to china. negotiating with the chinese to find a suitable habitat for them. that is the difficult bit. dealing with the chinese government is extremely difficult for a westerner. there are many murky political things that are hard to understand. it might go home next year, or in 10 years. it is very hard to know. carol: it is a fascinating read. he is certainly on a mission. safe to say this is taking over his life. kit: this, and the divorce take up most of the time now. is links to the
7:16 am
tiger charity. part of what they are arguing over is the assets in the charity. carol: interesting to hear about this individual. much.hank you so we go for this etc. segment next. we have just the thing to cheer you up. take the etc. spring fashion quiz. details when we come back. ♪
7:17 am
7:18 am
welcome back to "bloomberg businessweek." off this week. nascar is tearing itself towards a new ownership structure. the auto racing organization excusing a franchise type model and handing out charters. those guarantee a slot in every race in the top circuit.
7:19 am
wantt's go to ira, i to take a step back. what is been the nascar model? : it is been really simple, the teams and show up with a car, driver, and crew and they compete for prizes. they had one-year rolling contracts that later the terms for racing and prizes. they had no stake in nascar. it is not like the nba or the nfl with the owners of the board of governors that run the whole enterprise. they are the league, they control it. reallythat is a different structure from a lot of organized sports. this has changed recently. right now, they're handing out charters. half step towards a franchise model. they give 36 teams a guaranteed
7:20 am
spot in every race. they can be bought and sold, which is new. in the past, if you were losing money and wanted to get out you had nothing to sell. you had a driver contract, auto parts, but in many cases no real equity. this provides a transferable thing that an owner can presumably -- there is a limited number. there was 36, they won't add to them. it is the only way you can guarantee you'll be into it. it will build some enterprise value. carol: i didn't understand the financials of this. there is a ton of money, broadcast coverage, what is the money in this business? as $25 costs as much million. the range is 50 million to 25 to $25 -- 15 million million.
7:21 am
they don't make that much of prize money come even the best teams are only $10 million in prize money. they depend on sponsorship, that is with the model. that brand on the hood is supposed to cover your cost. that worked for quite a while while nascar was booming in the late 90's. then it went into a slight decline right around the financial crisis. that sponsor is retreating. only the top teams could get a check from a sponsor at the beginning of the year and cover that cost. as that went away, a lot of teams were losing money or were surviving your dear. they went to nascar and said some stability. carol: how does this provide stability and long-term disability for the nascar industry -- visibility for the nascar industry? to a sponsorgo and say you're going to be on tv, in the race, every week for
7:22 am
nine years. they are nine-year charters. a plan to keep this model going, but that was the first go at it. the thought is that now when you pennzoil, or whoever it may be -- carol: these are big brands. ira: and big money. sometimes they cover the $20 million. you can say now lets to a five-year deal, and maybe get a signing bonus up front. the idea is they could be more willing to advance. carol: any sign this is a smart strategy? ira: i spoke to in marketing agency said they are already seeing teams invest any more long-term way. some of the lesser-known teams are able to go out and hire slightly better drivers. there was a team that did this in january knowing they were about to get a charger and that would give them some more stability. the upgraded their driver, now in the come back their sponsors the sponsors are happier because they have a guide to look at
7:23 am
them and more top tens and get them in tv. hopefully there's a snowball. carol: bottom line, it is a new business model. ira: it is more like the rest of the u.s. port. carol: and that you have an exit strategy. interesting stuff, thanks. now we take a look at the etc. part of the magazine. for that we bring in brett who edited the section. we begin the cover story. , right now, around the globe there are all these fashion shows going on. you decided to do a quiz for everybody. how come? with: we want to do a fun it. also, it allows the reader to make decisions about where they are comfortable, and not, with fashion. and they still find some networks for him or her.
7:24 am
we didn't want anyone to feel left out. carol: you wanted to be nice. let's talk about the quiz. you go through a couple of things, you talk about denim. you ask what it is to everybody. nim could be your uniform, your indulgence, or something you're on the comfortable with on the weekend. for instance, if denim is your uniform,e, sorry, your you might be comfortable wearing a full denim skirt. if it is an indulgence, maybe you are thinking of a navy suit four days a week and then one day and indigo suit. a lot of people that would be a massive step out of their comfort zone so he wanted to make sure they had something. we're also talking about -- carol: this is me, find for the weekend. bret: baby into your footwear, or pants. carol: maybe.
7:25 am
one of the question that that was fun -- you say when you see a cow with a messenger bag you think what? bret: you can either think i really love that due to style, you can also say i remember the days when i use a messenger bag. you can also say i wouldn't get anywhere near a messenger bag. a proper work bag has handles and not as a shoulder. carol: couple of bags lucrative pocketbook. : a little bit, we would consider them brief cases. european carryall's, yes. they are a little smaller and slightly more elegant. carol: are you a risk taker? how much color is too much color? i guess it is such a comfort level, right? bret: we are going out a little bit on a limb and saying you could wear a blazer and a shirt with shorts. there would be a lot of people
7:26 am
that would say absolutely not. maybe we suggested a pleated pants if you're not comfortable with the short. for women, their shoulders is a huge trend for the spring. carol: we do not do that a bloomberg. interesting, interesting. you end up with color. i thought this was interesting. guy's, green is the new navy. greens that bring out a lot of blue, brown, pretty muted greens. for women, we see a ton of color. really in the sort of orange, coral theme. also, you can be most comfortable wearing a charcoal gray suit to work if you are a guy. even wearing a light gray suit maybe. khakis are the combination. carol: by the end come i think it is interesting and a fun
7:27 am
section to go through. it is not your typical etc., but it is really fun to go through. what were you? aet: i want out mostly in the section, forward. also i thought was of answering b and c to some questions. i think we're all mostly a mix. carol: i was tentative. fashion can be fun. you make it fun. that does it for this weeks edition of "bloomberg businessweek." reminder come issue of on theerg businessweek" big lobbying groups is available online and on newsstands. the will see you again next week. ♪
7:28 am
7:29 am
7:30 am
♪ haslinda: hello and welcome to "high flyers." on today's show, we are speaking transport inanging southeast asia. anthony tan. >>


info Stream Only

Uploaded by TV Archive on