1 00:00:01,200 --> 00:00:04,560 Speaker 1: Global business news twenty four hours a day. If Bloomberg 2 00:00:04,640 --> 00:00:07,720 Speaker 1: dot com the radio plus Globile laps and on your radio, 3 00:00:08,000 --> 00:00:12,160 Speaker 1: this is a Bloomberg business flag from Bloomberg World Headquarters. 4 00:00:12,160 --> 00:00:15,440 Speaker 1: I'm Charlie Pellett, the DAL, the SMP, Nezdak Hall climb 5 00:00:15,560 --> 00:00:19,120 Speaker 1: to records. First time that that has happened simultaneously in 6 00:00:19,400 --> 00:00:24,360 Speaker 1: sixteen years. Amid earnings surprises, moments ago, we heard from Nordstrom, 7 00:00:24,480 --> 00:00:28,320 Speaker 1: Nordstrom's numbers coming in better than expected. Nordstrom shares now 8 00:00:28,360 --> 00:00:31,160 Speaker 1: at fifty two sixty nine, finishing the regular session at 9 00:00:31,200 --> 00:00:35,440 Speaker 1: forty seven fifty six. Nordstrom ticker j w N reporting 10 00:00:35,479 --> 00:00:39,160 Speaker 1: earnings of sixty seven cents. Estimates were for fifty seven 11 00:00:39,400 --> 00:00:42,960 Speaker 1: cents of share. Again, stocks higher, SMP up ten to 12 00:00:43,080 --> 00:00:45,519 Speaker 1: twenty one eighty five, a gain of five tenths of 13 00:00:45,600 --> 00:00:48,920 Speaker 1: one percent. Dow Industrials up one hundred and seventeen points 14 00:00:48,920 --> 00:00:52,360 Speaker 1: to eighteen thousand, six hundred thirteen, again there of six 15 00:00:52,400 --> 00:00:55,120 Speaker 1: tenths of one percent. NEZ Stack up twenty three, a 16 00:00:55,160 --> 00:00:58,600 Speaker 1: gain of five tenths of one percent. Gold down eight ninety, 17 00:00:58,640 --> 00:01:02,000 Speaker 1: the Ounce declining seven tens of one percent to thirty eight. 18 00:01:02,320 --> 00:01:06,320 Speaker 1: Crude oil West Texas Intermediate up four percent forty seven 19 00:01:06,319 --> 00:01:10,319 Speaker 1: for a barrel of West Texas Intermediate crude. I'm Charlie Pellett. 20 00:01:10,520 --> 00:01:16,520 Speaker 1: That's a Bloomberg Business flash. This is taking Stock with 21 00:01:16,640 --> 00:01:21,120 Speaker 1: Bin Box and Kathleen Hayes on Bloomberg Radio. Rio de 22 00:01:21,240 --> 00:01:26,399 Speaker 1: Janeiro home of the Summer Olympics. It is also the 23 00:01:26,440 --> 00:01:30,119 Speaker 1: city in which the headquarters of Petro Brassays, well as 24 00:01:30,160 --> 00:01:35,480 Speaker 1: many other petrochemical companies and service industry companies are located. 25 00:01:35,480 --> 00:01:37,840 Speaker 1: And here to tell us more about the city is 26 00:01:37,920 --> 00:01:42,120 Speaker 1: Julianna Barbassa, author of the book Dancing with the Devil 27 00:01:42,200 --> 00:01:45,280 Speaker 1: in the City of God, Rio de Janeiro and the 28 00:01:45,280 --> 00:01:48,600 Speaker 1: Olympic Dream. Julianna, thank you very much for being with us. 29 00:01:49,640 --> 00:01:53,080 Speaker 1: Thanks for having me. Now. When the Olympic Games, when 30 00:01:53,120 --> 00:01:58,240 Speaker 1: the Summer Games were awarded to Rio in two thousand nine, 31 00:01:58,760 --> 00:02:02,640 Speaker 1: Brazil and the brazil An economy looked very different. Tell 32 00:02:02,720 --> 00:02:05,480 Speaker 1: us a little bit about the changing fortunes of the 33 00:02:05,520 --> 00:02:11,720 Speaker 1: country and also of the city of Rio de Janeiro. Well, indeed, 34 00:02:11,800 --> 00:02:14,520 Speaker 1: it looks very different from from what it looks like now. 35 00:02:14,639 --> 00:02:17,799 Speaker 1: It's as if the state of Rio, the city of Rio, 36 00:02:17,960 --> 00:02:20,919 Speaker 1: and the country had been turned inside out from that 37 00:02:20,960 --> 00:02:24,040 Speaker 1: moment back in two thousand and nine. I mean, back then, 38 00:02:24,280 --> 00:02:28,079 Speaker 1: the economy was booming, Brazil was seen as sort of 39 00:02:28,120 --> 00:02:32,760 Speaker 1: the next big thing internationally. Uh. Foreign direct investment was 40 00:02:33,120 --> 00:02:36,800 Speaker 1: at record highs. I mean almost every indicator that you 41 00:02:36,840 --> 00:02:38,919 Speaker 1: looked at, Brazil was doing really, really well, and the 42 00:02:39,040 --> 00:02:42,400 Speaker 1: installation was low. Politically it was stable. Uh. And then 43 00:02:42,440 --> 00:02:44,600 Speaker 1: there was a huge oil discovery off of Rio de 44 00:02:44,680 --> 00:02:48,440 Speaker 1: Janeiro's coast, which was expected to continue to bring in 45 00:02:48,600 --> 00:02:52,000 Speaker 1: money into the future. Uh, to remedy things like the 46 00:02:52,520 --> 00:02:56,239 Speaker 1: deficits and education and health that we're so important to 47 00:02:56,400 --> 00:02:59,400 Speaker 1: to Brazilian. So um, you go from that moment to 48 00:02:59,480 --> 00:03:02,800 Speaker 1: this one where you know, state of Rio camp you know, 49 00:03:02,880 --> 00:03:06,240 Speaker 1: paid police officers are, the hospitals are shuttered, you know, 50 00:03:06,280 --> 00:03:09,840 Speaker 1: for a lack of fund. Again, almost every indicator is 51 00:03:09,880 --> 00:03:14,400 Speaker 1: looking at negative. President is facing impeachment. It's an entirely 52 00:03:14,400 --> 00:03:17,080 Speaker 1: different country, an entirely different city. And of course your 53 00:03:17,080 --> 00:03:19,000 Speaker 1: book Dancing with the Devil in the City of God 54 00:03:19,600 --> 00:03:22,359 Speaker 1: has great anecdotes, and you really you give us. It's 55 00:03:22,360 --> 00:03:26,839 Speaker 1: like I'm reading a novel. You describe describe drug used 56 00:03:26,840 --> 00:03:30,120 Speaker 1: to describe coming back to Rio, coming back to Brazil 57 00:03:30,440 --> 00:03:33,840 Speaker 1: you're from there, what that was like and over the years. 58 00:03:33,880 --> 00:03:37,600 Speaker 1: But what is the mood now in Rio? What are 59 00:03:37,640 --> 00:03:40,200 Speaker 1: people in the streets saying that they have some pride 60 00:03:40,280 --> 00:03:43,240 Speaker 1: that they're on the global stage and I mean there 61 00:03:43,240 --> 00:03:45,200 Speaker 1: have been some staff foods, but it looks pretty darn good. 62 00:03:45,280 --> 00:03:47,000 Speaker 1: Or are they angry that so much money was spent? 63 00:03:48,600 --> 00:03:51,720 Speaker 1: I think it's it's a strange balance of both. There's 64 00:03:51,760 --> 00:03:53,760 Speaker 1: some tension in the air, for sure. I mean, some 65 00:03:53,840 --> 00:03:56,920 Speaker 1: of these big protests that we saw before the World Cup, 66 00:03:57,040 --> 00:04:00,760 Speaker 1: you know back in two thousand two fourteen, the questions 67 00:04:00,840 --> 00:04:03,360 Speaker 1: that fuel goes are still there. You know, is this 68 00:04:03,480 --> 00:04:05,880 Speaker 1: the right way to spend our money? Are these the 69 00:04:05,960 --> 00:04:09,800 Speaker 1: right priorities for our our government? But at the same time, 70 00:04:09,880 --> 00:04:12,600 Speaker 1: you know, once the game started here in Rio, much 71 00:04:12,680 --> 00:04:15,360 Speaker 1: again has happened during the World Cup, which I was 72 00:04:15,440 --> 00:04:18,000 Speaker 1: here for. You know, once the ball starts rolling and 73 00:04:18,040 --> 00:04:20,720 Speaker 1: the medals start coming in, you know, those beautiful stories 74 00:04:20,760 --> 00:04:24,920 Speaker 1: of the athletes. Um, you know, people Brazilian seeing Rio 75 00:04:25,160 --> 00:04:29,719 Speaker 1: on international TV and knowing that it looks good. Uh, 76 00:04:29,839 --> 00:04:33,520 Speaker 1: there is an enthusiasm that that that percolates up. You know, 77 00:04:33,560 --> 00:04:36,919 Speaker 1: there there is a sense of local pride. But I 78 00:04:36,920 --> 00:04:40,000 Speaker 1: don't think that people forget for a minute that this 79 00:04:40,080 --> 00:04:42,880 Speaker 1: is a very expensive party and that we're going to 80 00:04:42,920 --> 00:04:45,200 Speaker 1: have to pay for it once it's all over. Does 81 00:04:45,240 --> 00:04:50,000 Speaker 1: anyone believe that the total bill for the Rio Olympics 82 00:04:50,000 --> 00:04:52,360 Speaker 1: will be about four billion dollars or is that just 83 00:04:52,400 --> 00:04:56,680 Speaker 1: an estimate? I don't think so. I mean, that's the 84 00:04:56,800 --> 00:05:00,600 Speaker 1: official estimate just for the sporting venues for point six 85 00:05:00,680 --> 00:05:04,880 Speaker 1: billion um. The official estimate that I've heard for for 86 00:05:04,960 --> 00:05:09,040 Speaker 1: total infrastructure plus sporting venues is about twelve billion. But 87 00:05:09,200 --> 00:05:12,640 Speaker 1: there are experts who study the Olympics and the cost 88 00:05:12,720 --> 00:05:15,160 Speaker 1: of the mega events that has put the total at 89 00:05:15,200 --> 00:05:19,440 Speaker 1: nearly twenty billion, which, as you can imagine, for for 90 00:05:19,480 --> 00:05:23,600 Speaker 1: Brazil and for Rio right now, is astronomical. The title 91 00:05:23,760 --> 00:05:25,720 Speaker 1: dancing with the Devil in the City of God, where 92 00:05:25,720 --> 00:05:30,000 Speaker 1: does that come from? It was the sense that Brazil 93 00:05:30,480 --> 00:05:32,599 Speaker 1: in the IOC, really, if you think about it, we're 94 00:05:32,640 --> 00:05:36,080 Speaker 1: engaging in sort of a Fosterian bargain. Both of them 95 00:05:36,279 --> 00:05:38,440 Speaker 1: were taking a little bit of a leap, uh, you know, 96 00:05:38,480 --> 00:05:40,400 Speaker 1: since taking a dance with the devil in a way 97 00:05:40,480 --> 00:05:43,240 Speaker 1: selling your soul to see if you can grasp at 98 00:05:43,279 --> 00:05:46,320 Speaker 1: something bigg or something better. Um, you know, from from 99 00:05:46,400 --> 00:05:49,880 Speaker 1: Rio's perspective, grasping this idea that it's now a world 100 00:05:49,960 --> 00:05:52,880 Speaker 1: capital and it can host the biggest sporting event on 101 00:05:52,920 --> 00:05:56,159 Speaker 1: the planet. And from the IOC's perspective, they were you know, 102 00:05:56,200 --> 00:05:59,200 Speaker 1: they have been selling this idea that the Olympics are 103 00:05:59,240 --> 00:06:02,920 Speaker 1: not just a warding event, they're also, uh, this catalyst 104 00:06:03,000 --> 00:06:06,960 Speaker 1: for tremendous urban transformation and Rio was supposed to be 105 00:06:07,200 --> 00:06:11,480 Speaker 1: a shining example of that. When Rio bid for the Games, 106 00:06:11,560 --> 00:06:14,599 Speaker 1: It's bid was by far the most expensive, and it 107 00:06:14,640 --> 00:06:19,680 Speaker 1: was competing with far well fair places like Tokyo, Chicago, Madrid. 108 00:06:20,240 --> 00:06:22,440 Speaker 1: And part of what made it so expensive is that 109 00:06:22,480 --> 00:06:27,520 Speaker 1: it promised so much uh infrastructural urban change. And I'll 110 00:06:27,600 --> 00:06:30,160 Speaker 1: see one of the sort of attached brand to that, 111 00:06:30,320 --> 00:06:32,920 Speaker 1: you know, a remade Rio, and as you can see, 112 00:06:33,240 --> 00:06:35,560 Speaker 1: things that can work out for either one of them 113 00:06:36,000 --> 00:06:37,640 Speaker 1: so well. So it was a dance with the devil 114 00:06:37,680 --> 00:06:42,640 Speaker 1: that platility pay off now because of Rio's extensive port facilities, 115 00:06:42,880 --> 00:06:46,880 Speaker 1: a lot of their products, whether it's Crewe petroleum, semi 116 00:06:46,880 --> 00:06:51,320 Speaker 1: finished iron products, or steel products, it's all commodity driven. 117 00:06:51,640 --> 00:06:55,080 Speaker 1: Will Rio's fortune continue to be tied to commodity prices. 118 00:06:56,640 --> 00:06:58,440 Speaker 1: I think so, and I think this is one of 119 00:06:58,480 --> 00:07:01,800 Speaker 1: the unfortunate aspect of these last few years, not just 120 00:07:01,839 --> 00:07:06,080 Speaker 1: for real but for Brazil. A lot of expectations. We 121 00:07:06,080 --> 00:07:11,960 Speaker 1: were tied to that moment of economic success that Brazil experience, 122 00:07:12,040 --> 00:07:14,760 Speaker 1: you know, two thousand seven, two thousand eight, two thousand nine, 123 00:07:16,640 --> 00:07:21,640 Speaker 1: the lead up into these games, and uh, unfortunately Brazil 124 00:07:21,680 --> 00:07:25,040 Speaker 1: didn't use that time to really take the difficult reforms 125 00:07:25,040 --> 00:07:27,640 Speaker 1: that it needed to and and it's tax code and 126 00:07:27,880 --> 00:07:31,040 Speaker 1: other sort of unsexy aspects of the Joiana Barbosa. We're 127 00:07:31,040 --> 00:07:32,720 Speaker 1: going to leave it there. Thank you so very much 128 00:07:32,760 --> 00:07:35,280 Speaker 1: for joining us today. She's the author of Dancing with 129 00:07:35,320 --> 00:07:38,200 Speaker 1: the Devil in the City of god Rio de Janeiro 130 00:07:38,320 --> 00:07:41,480 Speaker 1: and the Olympic Dream. Thank you for joining us. This 131 00:07:41,600 --> 00:07:47,480 Speaker 1: is Loomberg coming up. Bloomberg Law is brought to by 132 00:07:47,560 --> 00:07:50,600 Speaker 1: Jaguar Manhattan. Visit Jaguar Manhattan today, where New York goes 133 00:07:50,600 --> 00:07:54,160 Speaker 1: for luxury, Conveniently located at eleven aven You were online 134 00:07:54,200 --> 00:07:57,520 Speaker 1: at Jaguar Manhattan dot com and Jaguar Manhattan is at 135 00:07:57,640 --> 00:07:58,360 Speaker 1: your service.