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tv   Bloomberg Business Week  Bloomberg  December 9, 2017 3:00pm-4:00pm EST

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carol: welcome to bloomberg businessweek. julia: we are inside the nasa games headquarters in new york. how the philippines became a test lab for fake news. carol: casting call for beautiful people at silicon valley's holiday party. julia: all of that head, on bloomberg businessweek. ♪ carol: we are here with megan
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murphy. the lead in the finance section is on bitcoin. we have been talking about the -- bitcoin so much in the last week. >> over the past year, let alone several years, we have not ever seen so much moving in price. -- we have seen a volatile movements in price. this is a staggering statistic. less than 1000 people hold 40% of the world's bitcoin. with the market being as volatile as it is, the price going up so much, some of the people we know, when one of these big owners, it can cause an extreme drop in price because of the concentration of ownership in the hands of relatively few. what we are looking at with cryptocurrency, forget the broader debate about bitcoin. this is a real problem for the market transparency. a situation where people don't even know who the owners of the -- of bitcoin are. it's not similar to win a big shareholder sells off.
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it's exacerbating it. julia: we are going to see exchanges like the cme introducing futures on bitcoin. will this increase transparency, liquidity and perhaps reduce the impact? megan: that's the hope, that it becomes a more normalized market. when you go out and talk to people, one of the things about bitcoin and cryptocurrency is watching, the amount of mines moving into a beard -- into it. they're going to try to move the market. a lot of people still think this is a scam. nevermind that jpmorgan is also getting into it. there is that, but i think what is so interesting is will it ever get out of the feeling of it is a scam, speculation, the oldest form of the market, and be able to normalize the market
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. this concentrated ownership issue, the winkle boss twins on paper, are billionaires. that's made famous by the investment in facebook and their dispute over that. it is an extraordinary change in the fortune of people who were early investors. carol: a statistic that they have gained 1,000,000% from trading, that's hard to get your head around. but you think about when one big investor starts selling, what happens? megan: and when he has a lack of transparency we have currently. you cannot attribute it. we usually do share selloffs when someone needs liquidity, or an m&a deal. carol: but there are systems in place. megan: we don't know what the underlying motivation is, profit taking, concern, they know something we don't. that is the issue. julia: let's move to the cover
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story in particular. what happens in a country when 97% of the population who use the internet are on facebook? megan: this is a fascinating tale. we also spent a lot of time talking about fake news. it is really grand zero. this is the philippines. this raises the rise of rodrigo duterte and how he mobilized social media during his rise. the other side is this journal -- journalist who founded a news site that was launched on facebook and it weighs out she knew -- facebook is the only internet some people know in part of this country. 97% and attrition more cell phones than people in the country. she almost helped assist his rise, he had such a rise in social media channels, and once he got into power and some controversial elements of his
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regime came in, clamping down on drugs, we all know the murderous told that has taken. other fake news, things in the administration to distract attention. and personal, extreme attacks on her as a journalist. julia: social media as a tool. carol: exactly, and we have more from our reporter. >> maria is a journalist from the philippines and has been there for more than two decades as an investigative reporter. she started an online news site. it does all kinds of different stories, they do investigative stories, lifestyle stories, and they do a lot of political news as well. julia: she really rose to prominence, if we look at january of last year, she combined with facebook to host a presidential campaign debate, and strangely enough, only one candidate turned up, and we know him very well.
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>> she invited all five candidates and some of them accepted. as the evening neared, some canceled, and the night before, the final one canceled. leaving only rodrigo duterte as the single candidate to show up. this event was across 40 college campuses across the philippines, the event was live streamed on facebook. the question for the candidate, they were crowd sourced on facebook. there was a dynamic relationship between social media and the fight for this event. -- and the company for this event. and it gave him inability to -- an ability to broadcast his views. julia: we know he is controversial, the policy he has enacted as a president. when did maria start to
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recognize something was being used as a weapon rather than a concerned about actual news appearing that was not real? >> early in the campaign, there was a lot of aggressive use of social media. people who are supporters, online going after critics and opponents and targeting them in a personal manner in violent, aggressive manners. there was this trolling aspect to the campaign early on, and there was also the fake news elements. stories started circulating online and in social media that were not true. julia: what happened to maria when she started to try to tackle domestically what she saw as a kind of propaganda war from the government? it goes to the heart of media ownership in the philippines. is her company at risk for trying to question the government, their motives and policies? >> yes.
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maria's story is fascinating in part because it has been an evolution. she started reporting about what she felt was a propaganda machine being used by the government in order to go after critics. when she started writing about it, the propaganda machine essentially when after maria. -- went after her. they started sending her messages online and on facebook saying really vile things. facebook did not do much to stop that at the time. as the attacks escalated, as she started becoming more critical of the rodrigo duterte government, he singled out her website in a state of the union address and started saying the company was not following all of the rules and laws of the country. it escalated from there. carol: coming up, warren buffett's succession plan. julia: and robert mueller might
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be prepared to play defense. carol: >> this is bloomberg businessweek. ♪ ♪
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carol: welcome back to "bloomberg businessweek." i'm carol massar. julia: i'm julie chatterley. you can find us online at businessweek.com. carol: and on our mobile app. opening the magazine this week, what are warren buffett's plans at berkshire hathaway? julia: we spoke to in-house buffett watcher, noah. >> he talked to investors or people who follow berkshire closely, a lot of people have been looking at greg abel, who runs the energy operation, they own a bunch of utilities throughout the u.s. and the u.k. carol: we have these names because they were highlighted by charlie munger. >> everyone is trying to read
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the tea leaves. carol: they have not come out and said. we should take a step back. we all have a lot of fun. we respect warren buffett, it is hard to follow in his footsteps, but it is like, who is going to take over for berkshire hathaway? everyone has been wondering. >> there has been a tremendous amount of speculation. buffett is 87. mongers a couple years older than that. this is a conversation that has been going on decades. frankly, the name on the envelope has changed over time. we are certainly not the first people to write an article speculating about who the person is. there is a journalistic tradition of this. what we do know is that as time goes on, some of the names that have been thrown out there in the past, for many of those executives, they are no longer
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at berkshire. or they are looking less probable because of age or some other reasons. julia: break it down in terms of able and jade. what the differences are, because there are fundamental differences, whether they have grown up in the business, energy versus insurance, their respective age. he was a young guy to come in there. >> there are critical differences. age is one of them. abel grew up in the energy business. he has been running a business that has been highly acquisitive. within berkshire hathaway energy, his business has gone out and bought more utilities, they have bought pipelines, invested a lot in renewable energy. it is a place where part of buffett's empire where he can count on his managers to figure out what to do with all of this
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cash that berkshire is producing. it's not solely unique to him, but he has a track record of doing that over and over again. julia: 20,000 employees, and that's just part of the business. >> exactly. something interesting about able and how he runs the business, the head office has only two dozen employees. that's the model buffett uses for the whole conglomerate. buffett likes to play this up, he talks about how he has 24, 25 people in omaha who oversee the whole conglomerate, which has maybe 350,000 employees. there is a nice parallel between how abel operates and buffett has been running the conglomerate. julia: in the politics section this week, special focus on special counsel robert mueller's investigation into potential kremlin ties to president trump. carol: mueller may have a plan
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if trump tries to shut him down. julia: here is matthew philips. >> in the days after the michael flynn plea deal, trump's lawyers started to change how they would talk about the affection of obstruction of justice charges being leveled at the president. from not thinking about much of it, too starting to argue that a sitting president cannot be charged with of structured justice, there is no statute that suggest it is a crime. it marked an interesting tidbit -- give it -- bill in the way -- interesting pivots in the way the trump defense team was going about this. this was john dowd, in the aftermath of the scrum around this tweet trump had sent out over the weekend in which out said, i wrote this, it wasn't the president, the tweet said i fired flynn because he lied to the vice president and the fbi, the fbi thing was the big news, a lot of commentators said he proved obstruction, given what we know about his reasons for getting rid of fbi records and
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-- jim comey. it has been interesting week in the probe, we have some big names after the manafort and gates indictment last month. we now have the nsa director playing to a pretty small count of lying to federal agents. given the potential crimes we know he could of been charged with, including being on the payroll of a turkish company while he was a top official in the white house. julia: we have president trump lawyers pushing back on the idea justice foron of setting a precedent. in getting michael flynn to plea , it is a huge step for for the investigation. you say it is more than that. more important, because it ensures it continues, the investigation continues. explain that idea. >> last spring when robert
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mueller accepted this job as special counsel, it was always going to be kind of a defensive job in its very nature because he was investigating a man who had the power ultimately to fire him. or kind of fire people, or direct people to fire him. there has always been this kind of threat over this counsel's office and his team about whether the white house can do anything to shut down the case. what we have got with the flynn thing were a couple of things. it gave us the first person inside the administration, even though he was only there for less than a month, i believe, he was inside the trump administration, not just a campaign had or campaign figure. it also raises the political temperature. if trump were to try to shut down the mueller investigation, the political implications of this would be unprecedented.
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almost like nothing we have seen since watergate and it raises the ideas of the saturday night massacre, in which president nixon fired special particular art special -- special prosecutor archibald cox. so he has also laid some breadcrumbs on the ground for other prosecutors, state and local ones to pick up and continue his investigation is -- if he ends up not leaving it ultimately. julia: up next, how a famous lawyer became infatuated with hollywood and found himself working for harvey weinstein. carol: and a crowdfunding site that runs on hate. julia: this is bloomberg businessweek. ♪ ♪
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julia: welcome back to "bloomberg businessweek."
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i'm julie chatterley. carol: i'm carol massar. you can listen to us on sirius xm channel 119. ame 11 30 in new york. 161 in boston. 90 91 fm in washington, d.c.. and the bay area. julia: and in london and asia on the bloomberg radio plus app. in the features section, a profile of david boys hollywood ambition. carol: and what let him into the orbit of harvey weinstein. >> people know this sort of famous courtroom litigator and champion of democratic ideals. he represented al gore during the 2000 presidential sort of -- florida recount. he also famously represented the government antitrust case against microsoft. he has had all of these high-profile cases, which has made him arguably the most famous lawyer of his generation.
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because of his work fighting on behalf of gay marriage, with ted olson, george bush is a lawyer, -- george bush's lawyer, they teamed up on behalf of marriage equality. he has become more than just a lawyer, someone who has been revered, particularly among liberals. julia: you said he ran circles around bill gates. >> yes. julia: i can't imagine a man capable of doing that. >> this brilliant courtroom tactician. he has been played in an hbo movie. books, countless magazine profiles, all glowing until this fall, when his role reversing -- representing harvey weinstein came into the news and all these people who thought highly of him were outraged by his association with harvey weinstein. carol: maybe no surprise that he
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has someone like this in his circle. talk about the relationship and how it turned into trouble for david boies. >> we look back, how to the -- how did the relationship start, what was he working on? they met each other not long after the florida recount. they had lunch, and harvey weinstein had a book publishing imprint and boies agreed to write a memoir about his legal career. that's how it started. david also started representing harvey in his brother bob and miramax in various things. when harvey and bob left disney, david represented them. he represented them in various things over the years and the relationship grew closer. in 2012, it becomes more interesting, because david
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decides to start a film company of his own. in part because one of his daughters had graduated from college and was interested in getting into the film industry. one of his partners and close friends, jonathan schiller, his son was also working in the industry, they thought it would be fun, let's do some movies. what is interesting is, they did some projects together, but in the end, it's sort of complicated the relationship with harvey weinstein. client, there a was also a side relationship in terms of doing business in the movie industry together. carol: in the technology section, crowdfunding and payment firms prevent racists from using their sites and services. julia: that gave one person an idea. his website aims to arm white supremacists with donations.
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>> facebook and twitter have taken a hard line on banning right-wing supremacists from the platform. explain why they are not allowed to continue posting. sites like kickstarter and patriotic, people have been much quicker to boot platforms for spazzing capel ideals and things. carol: but you don't get booted from hatreon, which is a site to raise money for hate groups. >> right. they are collecting about $25,000 per month from a few thousand donors, mostly about white supremacists. wilson,alk about cody the guy behind it. >> he is 29, as our reporter reporter -- adam he is the rare
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, troll who senses market opportunities. he came to prominence first in 2012 with a company called defense distributed, a small enterprise, but it did not have to be that big because it is mostly producing designs for open source, untraceable guns. in 2013, they published plans for a 3-d plastic gun at you can make yourself, and therefore a -- it cannot be traced by the government. the company has also begun selling machines that allow you to make untraceable metal handguns and assault rifles. julia: we get a sense of his political lean. now he seems to be arming white supremacists with cash. >> the southern poverty law center has told us that the blog hate watch has already become an
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important tool for white supremacists to keep themselves fed in lean times. andrew anglin, the founder of the ultraconservative website daily stoermer, and about neo-nazi publication, is taking $4000 per month through this website. richard spencer, the white supremacist leader who famously -- julia: they just advertised. is this how it works? >> like a standard aptreon page, you say, this is what i'm about, this is what i will be doing, sending money to help me out. carol: legally you can do this. >> yes, according to the aclu, as long as these folks are not directly threatening people or inciting violence themselves, then yes, it is perfectly legal. carol: up next, artificial intelligence saves over $10 million in wine. julia: and what to do if you are
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targeted by phantom debt collectors. carol: this is "bloomberg businessweek." ♪
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julia: welcome back to "bloomberg businessweek." i'm julia chatterley. carol: i'm carol massar. still ahead in this week's issue, software to fireproof your wine and maybe more. julia: and fighting back against phantom debt collectors. carol: and the man behind minions has disney in his sights. julia: all that and more on bloomberg businessweek. ♪ -- all that and more on "bloomberg businessweek." ♪ julia: we are back with the bloomberg businessweek editor in chief megan murphy. in the technology section this week, we answer the question of
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what happens when you combine fire, a winery and artificial intelligence. megan: we all know about the wildfires in napa. they destroyed vineyards. this focuses on a particular vineyard, a boutique vineyard. they managed to save what other vineyards lost because they use this technology, i wrote it down, it is fermentation intelligence logic system. the workers could check on the grapes and the wine, this automated system did it for them and was able to save them from wildfires. julia: it has been online since 2014 but it had never run on its own. even when it was operating, they weren't sure if it would save the wine and operate the takes -- the tanks successfully. megan: and if you get one little thing wrong, the entire thing is spoiled.
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they invested millions in this system. they are a small producer, but he has a technology background, and he brought this into his vineyard. it is rolling out to bigger producers like ernest and julio gallo. we talked about automation disruption on the show, but if you take out the need for workers, there will be a shift but it is also about protecting and safeguarding this wine. wildfires in this area of the country are becoming more and more common. carol: the system was constantly monitoring the wine in the casks and doing whatever it needed to do. megan: exactly, making shoring -- making sure it had enough air and yeast. it is fascinating in terms of again, technology, automation, a i, collection of data, millions of data points per second.
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we all know, we picture people stomping on the grapes in barrels. this is an industry were people handpick the grapes. this will change, and it can be were robots can control the fields. the industry will be radically transformed, probably for the better, probably for better and enhanced production, but it will have an effect on jobs. julia: which was the first thing i thought about when i realized this was operating so well. as you said, other companies, bigger companies are looking at this technology and thinking what they can do to adopt it. you think for the owner of this winery, it would be a hugely lucrative opportunity. and yet. megan: the most fascinating thing about the story was the investment. you would think, i'm going to invest this much in such a small producer. but rolling it out requires --
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it's one thing for it to work at a small boutique pretty sure -- boutique producer, but to do a mass production with some of the other mass producers. but there is no question that wineries like every other industry cannot afford at the -- before the risk that -- another thing is the weather. it is so whether defendant, to be able to lessen their risk takes your need to ensure your business. julia: we want that technology to be open sourced. carol: let's talk about another feature in the story, about an individual that became a target of what is called phantom debt and went on a crusade. megan: he really wages and one man crusade after he gets targeted by a debt collector. a more pernicious form of debt collection, the pursuit of the so-called phantom debt, where you don't even own the debt to begin with, but you are sent
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letters and aggressively pursued for the debt. this is a tough tale filled with tough language about how people talk and a personal battle when a debt collector threatened violence on his wife one night, and how he would not let it die. this is a real problem in this country. there is $600 billion in debt owed, this collector has sold off millions in phantom debt through middlemen. it was a quest to get justice in a segment of the society where people are targeted unfairly. julia: true relentlessness tracking down the perpetrator. >> he is a salesman for a promotions company. a regular guy, when you wouldn't look twice at if you saw on the train.
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he was working for home like usual. his wife called and she was scared. she had gotten a message about some kind of debt he owed and she wasn't sure who the caller was.he was working for home like right after she told him that, he gets a call. carol: what was the call? >> the same guy, he says you oh $700 over some sort of debt. andrew is very confused. he does not owe $700 and the conversation starts to get heated. julia: he threatened andrew's wife. >> yes, the collector threatened andrew's wife and it sets him off. he is so upset, he doesn't know what to do. he is an interesting guy, not the kind of guy who would just shrug something off. he takes things personally. julia: he did call the police, and in the story you say, it was very useless. he did try to work out what was going on here.
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>> yes, he eventually cause the police, but his first instinct is actually to do something about this himself. what he does is, the man left a number with his wife, and he calls the number, and he reaches a company called lakefront. they say they are a debt collection company, that andrew owes $700. they say the person you were on the phone with, i'm not sure, maybe it is some sort of bounty hunter. so they are playing into the fear that someone is coming for him. carol: does andrew owe $700? >> no, and he is baffled. they say he owes it to a company called vista, so he calls them. they say he does not owe $700. this starts him on this chain of investigations. he calls the owner of the debt
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collection agency and tells them about the situation, then he starts getting more calls from other collectors saying he owes money to other people. julia: what is critical to understand is he did take a payday loan way back, but he paid the money back almost instantaneously. his details as someone who took a payday loan, but paid back for it quickly. so that makes him a good credit risk. >> right. he started talking to these collection agencies and he honestly started sounded like liam neeson and "taken." he was saying, if you don't tell -- he was saying i don't care about you, if you don't tell me what you know, i won't let this go. there are things i can do. they started talking to him. they said, we got this from a database we bought from another guy.
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it is a complicated web, but he starts to unravel it. julia: what gave him the element of confidence, chemical, to push -- can we call it, to push back on these guys, to not be afraid and fight back? threatening back. >> it's kind of crazy, he seems like a regular guy. i think he is good as a salesman, he is good on the phone. but he is a savant. some guys he is tough with, sometimes he makes friends with them. carol: up next, online fantasy games play real money to venezuelans. julia: and hurricane maria keeps hitting puerto rican small business owners. carol: this is "bloomberg businessweek." ♪
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♪ julia: welcome back to "bloomberg businessweek." i'm julie chatterley. carol: i'm carol massar.
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you can also find us online at businessweek.com. section, the economics with their own currency virtually worthless, some venezuelans have found new ways of earning a living. carol: they are playing video games earning virtual gold and exchanging it for real money. >> it is activities in which people play online games for the purpose of gaining points or digital currencies like gold and goings in order to sell them to other players. carol: this happens around the globe? >> yes, we've seen in china or north korea, normally a feature of basketcase economies. it is really cropping up in venezuela now. julia: it is old-fashioned, for games, way back in the day. for what purpose? >> we are talking about a
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country that the real currency has shed almost all of its real value against the dollar this year. the rate is something like 108,000 against the dollar. and with inflation, going into quadruple digits. online currencies are a better store of value than a full then -- then venezuela's actual currency. gamers get their earnings based on the exchange rate, which makes you better off than being a salaried worker, the pay is not being adjusted to inflation. julia: it is effectively indexed to a black market dollar value. >> that's right. carol: playing these old time video games, collecting digital currencies, or digital gold. they exchange it for real currencies. this is how people are making a living? >> a fair number of people,
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mostly young people. we spoke to someone who was an insurance salesman and was not able to make enough money, did not have enough work. we spoke to a guy working as a brick layer, it was backbreaking work. there are people who -- some of them enjoy it, i guess when you do this many hours of day, not as much as before. julia: the internet connection is not great in venezuela. it's pretty drastic. carol: worse than syria. >> in the 2017 ranking, it was the bottom 10. julia: how are they getting around that issue grade you are trying to play a living videogame, yet the internet connection is bad. >> that's one of the reasons they are gravitating toward these old timey games, and a lot of them play at night when there is less traffic.
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some of them have not been able to play at all because there has been copper wire theft in caracas that has taken down some internet in neighborhoods. carol: in the small business section, the slow hurricane recovery in puerto rico may have long-lasting impact on small businesses. julia: here's editor dmitry kees and needles. >> the power problems persist, and that is key to all caps of businesses, large or small, but a lot of small businesses are really dependent on that. small businesses account for such a large percentage of employment on the island and private businesses, it has been really devastating. one of the small business owners said, described it as catastrophic, and it has been catastrophic, so many of them are closed. about 45,000 small businesses on the island and two thirds were forced to close because of hurricanes irma and maria.
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there are a range of estimates as to how we would stay -- how many may stay permit me closed, but the numbers are not good. anywhere from 5000-10,000 could be facing the threat of never reopening because of the challenges. carol: they are trying to get power, the whole island does not have power, a lot has come back but there is a lot to go. telecommunications are still difficult. >> very difficult. a couple of businesses not as dependent on the island for their client base, a biotech company we interviewed, for example, has an office in the states. they were able to shift their communications and any other functions that the power may -- made hard on puerto rico to the office. but that is an unusual case that is not what most businesses -- a family-run ice business and other businesses connected to
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it, you have an ice business, that is very local, it's all about just providing ice to other businesses. communication is difficult, power is difficult, manpower and who you will have a your disposal, many of the workers because the personal situations were affected, might leave puerto rico and come to the mainland. carol: there has already been an exodus. >> that's right. those estimates are very high, i don't have the numbers in my vendor can -- fingertips. the estimate or will happen to puerto rico in the coming year in terms of migration to the mainland will be very devastating. julia: up next, competing to be the next big mecca for design and art. carol: and spicing up corporate holiday parties in silicon valley this year. julia: this is "bloomberg businessweek." ♪
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carol: welcome back to "bloomberg businessweek." i'm carol massar. julia: i'm julia chatterley. you can listen to us on the radio on sirius xm channel 119. 1061 in boston. 99.1 fm in washington, d.c. fm a.m. 60 in the bay area. carol: and in london and asia on the bloomberg radio plus app. we have a profile of whom may be -- chris mellon grandy, who may be disney's biggest animation competition. >> he is not a household name, he's not steven spielberg, but his characters are. you probably remember the ice age franchise, and despicable me, the minions, these are on lunch boxes and at kids parties all around the world now. he has made a name for himself in hollywood because he is able to make these movies very
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cheap, $70 million, which is not a lot in hollywood these days. they make millions. julia: we know that john lasseter, he is the chief of walt disney, he is on sabbatical. is there a window of opportunity perhaps for him to steal more market share? >> yes, animation has been a business that all of the major hollywood studios go into a little bit and then back out. disney has been the only consistent winner. now it has a real threat from universal and this company, called illumination entertainment. they have produced a lot of big animated movies. you could tell when talking to chris that he kind of wants a greater recognition. disney always steals oscars for animation every year.
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his movies are very popular, but they are never quite critically acclaimed. he will keep plowing away at this and i think this could be his moment. julia: in the technology section, silicon valley will be a wash with atmosphere models this holiday party season. carol: sarah frier explains. >> companies in silicon valley tend to have a gender issue. there are a lot more men than women and it can cause some issues with diversity, harassment. this has been a longtime thing that companies have been criticized for, that there is -- but there is another more trivial problem, holiday parties tend to be boring. to solve that, they have been hiring models to mingle with employees, unbeknownst to the employees. models who are known as atmosphere models, and they come
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out to strike up a conversation, said they were invited by a friend and gives employees great memories from the party. julia: hang on a second. you have the launch party, you hire attractive people to make it look good. but everybody kind of knows these are models paid to turn up. but employees in the dark about their fake friends? >> you're absolutely right. the tech industry and modeling industry have a relationship that is part of a cycle. models are part of the trade show events, they come to product launches, they can hype up things when they need to be hyped up. this has now extended to holiday parties. i was talking to one agency, they are sending 25 women and five men to a gaming company's party this weekend. it is going to be a situation where the models are told which employees to say they are friends with so that if people ask, they have a backstory.
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sometimes modeling agencies get even more creative backstory's from companies, the companies make models sign nondisclosure agreements and everyone parties . carol: are these lesser-known companies or tech giants? >> it is everything from the tech giants you know to the tiny startups and even private parties. the executives with a lot of money to burn you are happy to -- who are happy to make sure their party is the most upscale. what do these models get paid to do this? i like that you pointed out is not just about women, good-looking men are invited, as well. >> the agency told me about the men coming to the parties, sometimes men like to look at pretty men, too. not everybody wants to look at women.
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it's not just about the female employees, but men who like men. and models get paid anywhere from $50 per hour to $200 per hour, so if you are hiring a 30 models, you could spend quite a bit for a 3-5-hour party. carol: in pursuits, how cape town, south africa reinvented itself as a tourist destination. julia: and we are not talking about its beaches. here's chris rosner. >> there has been a lot of great reasons to go to cape town. beaches, outdoor hiking and all sorts of great stuff. but recently, it has become an arts and cultural destination, which is why we wrote about it in this issue. we are excited about it. earlier this year, the museum of contemporary art in africa opened up. that is a hugely stem devoted to -- that is a huge museum devoted to art from africa, and it has created a sector of the city the -- be voted design an up-and-coming trends in culture.
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carol: that includes hotel, innovative choices? >> the art museum is an old converted grain silo, really cool architecture. right next to it is a hotel called the silo hotel, also stunning. you are in rooms perched over the hotel with big, glassy -- you feel like your hanging over the museum itself. julia: we can thank the art for the executor seat, he has brought his collection. more than 1000 people to allow individuals to see them. an expensive safari. philanthropist had this great collection of art. to see it, you had to go to one of his lodges on safari. he thought, this is crazy, i have to show this. he created this huge museum devoted to contemporary african art. carol: the neighborhood around the museum is also fun. >> the central business district has gone through a total change.
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we do a focus just on one street which has incredible fashion, great design, home to court, ray -- warm decor, great coffee, great restaurants. it has revitalized the whole area. >> is expensive? >> no, not that expensive. there are great destinations just outside of town, wineries. incredible food. it is an affordable place to go. carol: bloomberg businessweek is on newsstands now. julia: and online at businessweek.com and our mobile app. i know what you are thinking about. carol: fake news in the philippines. social media can be effective in good ways, we are seeing it in the philippines being used in a bad way. julia: we often talk about regimes in china, where they crackdown on media, but this is a leader who harnessed the power of social media to ultimately win an election. the question is, was it fair? carol: it's another concern when
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we look at the use of social media. >> and efforts to fight back. more bloomberg television starts now. ♪
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announcer: the following is a paid presentation for zaahn shiatsu pillow. >> that feels good. >> that feels really good. >> it feels good. announcer: we all love our decorative pillows because they add to style and elegance, but what if it

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