tv Bloomberg Business Week Bloomberg February 26, 2016 9:30pm-10:01pm EST
carol: cover story, peter coy looks at how corporate america is responding to criticism. and donald trump and ted cruz. nowhe screaming you here from across the potomac is the washington cartel in full terror the conservative grassroots are rising up. you write about and your story how the people are controlling the pitchforks. how is big business responding? guest: very quietly. it's been fascinating. you'd expect with their integrity being impugned they would have something to say. they have chosen to take a low-key approach. asked what do was
you say to this guy that you are a fraudulent business model. every day he hits them with this. he is not known for being the calmest person. he responded with the calmness he thinks he could change bernie sanders' mind. trumprd motor, donald hitting him again and again outside the united states. he said to donald trump, thank hiring andually are investing in the united states as well. donald trump sentiment note saying i'm not a big customer. the point is the ceos don't want to get in a twitter war with donald trump. carol: it's interesting.
big business is staying calm. they haveour story had a lot of victories. say what you want. guest: why should they go public with a brawl when they can get what they want quietly through lobbying, talking to congress, working the system. that infuriates the tea party types even more. people in the left and right think that they are too close with government. it drives them bonkers. there have been a lot of signature successes for business. bank, carly export fiorina, that was one of her top issues. it provides financing for americans to export to other countries. , ted cruz would call it
crony capitalism. it looks like it was going down. it was actually out of business and yet it came back to life in congress signed back into law by obama in december. carol: you do have these candidates bashing big's notice at the same time, as this is doing just fine in washington, but it does feel campaigns. guest: what i'm trying to say is business should not assume it is business as usual. carol: it may not be. guest: things change. every year there is at least one or two candidates who get out there but you are hearing it from everyone, even jeb bush who was considered the big business , showing no, he's his own man. hillary clinton, the mainstream people seem to have been pulled
opposing hillary clinton, skeptical of the transpacific partnership. story,you write in your big companies like low taxes but they aren't extremists. if you stick up their neck -- very few stick out their neck like tim cook with apple. guest: he did get apple to unlock the iphone. there is an example of the world's most viable company taking on the federal government . so few companies are willing to do that. ideological. they want to please shareholders, employees, boards of directors, get the work done. the last thing they want to do is go into a fight with anybody. carol: does history tell us anything? guest: i think it can. organization,er the committee for economic development forward because
people were worried as soon as the stimulus of war spending ended the u.s. would lapse into another great depression. it didn't happen but at the time we didn't know that. this committee was made up of ceos and their objective was to make sure the economy would be strong for the good of all. they were instrumental in forming the world bank and the marshall plan which saved europe, enlightened self interest groups. their heads down in the books focusing on the quarterly earnings and so on. i'm not sure it is the right strategy because if you don't have a good positive message. if you can't persuade the public you are acting in their best interest you do invite the pitchforks. carol: there is momentum against big business. interesting story. thank you.
ranch in south africa. does he do it because it is a noble, to turn a profit or to anger his wife? this is a great story. who is stewart? he's an interesting guy. he actually is a likable person. he's driven, passionate, fundamentally a city guy who spent a career in banking. clever, capable and passionate about things that matter to him. one of the things that is important to him now is tigers. he spent 10 years of his life to rescue this rare species of chinese tiger. carol: they really are gorgeous and considered extinct. what has the process been like for him? it involves money, chinese officials, tell us about that.
guest: the south china tiger is functionally extinct. there probably aren't any level -- animals left in the wild. there are 100 left in zoos in china. what stewart had to do was persuade them to give south china tiger cubs to him to rear them, raise them and read them. increase their numbers. eventually he would return them to china. carol: he is doing that. he has brought them to china. guest: he hasn't briny back. he has 19 animals in south africa. the question is what happens to those animals now. they have a great home. they have a wonderful reserve. they are in great condition. the question is what happens next. finding space with them in china, arranging for them to be
sent back. carol: the chinese want them and have been working with him to do that. guest: his project has quite a lot of attention and china. the tigers are hugely important animals. .e's had them for 10 years now there is genuine pressure to bring them home. toot want them to come back china. -- it is a difficult thing to do. they are solitary animals. they need space to hunt. there are not enough spaces with good habitats for them to go. carol: it is a fair amount of drama. he has a girlfriend, former wife , he's going through a divorce. that is woven through your story as well.
3 he is a -- guest: he's a passionate, driven man. that leads them to be successful. but that leads and a falling out most recently his wife. crusaders himself as a . once he gets an idea he will pursue it vigorously even if that means clashing with people. he has this history of litigation and legal feuds. kind oft was initially her idea to do this, correct? guest: he was a banker. it was the late 1990's. finance.sy and his wife had ended her career in marketing and was looking for something else. she'd been a huge fan of conservation of big cats. it was her idea.
he got more involved as the project went on. , he reallyt his job started getting involved in the project. now it has taken over his life. carol: where is he financially on this? he saved millions of dollars over the years but he is running out of money isn't he? hugely expensive doing what he is doing. fours 19 tigers in an area times the size of manhattan. they need a staff to look after them, feed them, manage them. they have dozens and dozens of electric tenses that need to be maintained. he's been doing it for 10 years with his own money. at some point in the near future the charity will run out of funds. he is working away out to fund it permanently. carol: where is he today to bring the tigers back to china?
guest: we are at a critical point in the project. it has been a success. he has increased the number of tigers. they are breeding well. they can hunt which is important. the next stage is getting them to china. they are at the stage negotiating to find suitable habitats for them. that is the difficult that, dealing with the chinese government is difficult for a westerner. he has to navigate these murky political currents. it's hard to know how long that process will take. the tigers might go home next year, or in 10 years. carol: it's a fascinating read. certainly he is on a mission. this and the divorce are the two things that take up most of his time now. the divorce is linked to the
wheels for drivers. to start by taking a step back. what has been the model when it comes to teams? guest: it's been simple since they started. the team show up with a car, a driver and crew and compete for prizes. that meant they had one year rolling contracts with nascar that laid out the terms for racing and prizes. they had no stake in nascar. there was no state where the owners of the board of governors. they are the leak. they control it and have revenue coming in from it reliably. carol: that's a different structure than a lot of sports. this has changed recently. now they are handing out charters? guest: it is a half step. they give 36 teams a guaranteed slot in every race.
they can be bought and sold, which is new. in the past if you had a team and losing money, you had nothing to sell. you had a driver contract. you had auto parts. you had no real equity. this provides a transferable thing that an owner can are 36.ly -- there it's the only way to make sure you're in the race every week. it is a way to build enterprise value. carol: i guess i did understand the financials of the industry. i thought there is a ton of money, broadcast coverage. what is the money in this business? as $25it costs as much million. more teams are around $18 million. to a team on the track every race, they don't make that much in prize money. even the best teams are around
$10 million. they depend for three quarters of revenue on sponsorship. that is the model. the brand on the hood is supposed to cover your costs. that worked for a while in the , it 90's, early all caps started to decline around the financial crisis. that had sponsors retreating. only the top teams were able to get a check from a sponsor at the beginning of the year and cover the cost of doing business. as that went away teams were starting to lose money or survived year-to-year. they went to nascar and said we need stability. carol: how does this provide stability for the nascar industry? guest: now as a charter team you can go to his sponsor and say you're going to be on tv, you are going to be in the race for nine years.
plan to keep this model going after that. that was the first go at it. the thought is that now when you go to eminem's, to pennzoil, -- guest: big brands. guest: big money they spend. sometimes they cover the $20 million. now you can say let's do a five-year deal. maybe give a signing bonus up front. the idea is they will be more willing. carol: any sign this is starting to work? guest: one of the people i spoke to is a marketing agent. they are seeing teams invest any more long-term way. some teams lesser-known, they hire better drivers. there was a team that did this in january knowing they were about to get a charter and that will give more stability. they upgrade their driver. the sponsors are happier because they have a guy who will get them in more top tens, hopefully
there is a snowball. >> it's a new business model. more like what we have seen in the rest of the sport. carol: and now you have an exit strategy for some of those owners. interesting stuff. now it's time to look at the etc. part of the magazine. we bring in brett who edited the section. we want to begin with a cover story. the spring fashion quiz. right now, around the globe there's always fashion shows going on. he decided to do a quiz for everybody. guest: we wanted to have fun with it. it it -- it allows the reader to make decisions about where they are comfortable. it finds something that works for him or her. we didn't want anyone to feel
left out in this way. let's talk about the quiz. you go to a couple of things. >> den him to be, your uniform, it could be your indulgence, it be something that you are comfortable with on the weekend. the den him is your indulgence. if it is your uniform you might be comfortable wearing a full denim skirt in the same way you would other fabric. yout is an indulgence maybe are inclined to wear a navy suit. one day a week you might wear an indigo suit. there are people from whom that would be a massive step out of their comfort zone. guest: fine for the weekend. maybe you can incorporate denim in your footwear. you say when you see a
guy with a messenger bag you think what? guest: you can either think i really like, love that dude's style. or higher member the days when i use a messenger bag. you can also say i wouldn't get anywhere near a messenger bag. handles work bag has and does not have a shoulder. carol: the couple of bags, a kind of looks like a pocketbook. guest: we would consider them may be brie briefcases. they are a little smaller and perhaps slightly more elegant. guest: are you a risk taker? are you a risk taker? it is your comfort level. guest: we are going out there on the limb saying you can wear a .lazer and a shirt with shorts there is going to be a lot of
people that would say absolutely not. we suggested may be wearing a pleated pant. for women, bare shoulders is a huge trend. carol: we do not do that at bloomberg. interesting. you talk about color. i thought this was interesting. thet: greene is becoming new navy. not a leprechaun green. green that brings out blue and brown, muted green. for women, a ton of color. seen --ng in the coral scene. you can wear a charcoal gray suit to work if your guide. a light gray suit may be. khaki.n white and guest: i like why and black. carol: it's interesting, a fun
section to go to. you usually do a mixed bag of things. and you took the quiz what were you? guest: i wound up mostly in the letter a section. answering b myself and c. we are all probably a mixed. b.ol: i was mostly a fashion can be fun. thank you. that does it for this edition of bloomberg businessweek. i'm carol massar. the latest issue is available online and on newsstands. see you next week here on bloomberg television. ♪
announcer: from our studios in new york city, this is "charlie rose." charlie: on june 23, voters in the united kingdom will decide whether to leave the european union. as of last year, the chances seemed remote. recent polls suggest more britons do not want to stay. in what was seen as a major rebuke to prime minister david cameron, the london mayor recently declared his support for the brexit. he said remaining in the e.u. would lead to an erosion of democracy. joining me is john micklethwait. he was editor-in-chief of "the economist" magazine, which is where i first got to know him.