Business & Financiën
Bloomberg Businessweek

Bloomberg Businessweek 2/20/2017

Each issue of Businessweek features in-depth perspectives on the financial markets, industries, trends, technology and people guiding the economy. Get the digital magazine subscription today and draw upon Businessweek's timely incisive analysis to help you make better decisions about your career, your business, and your personal investments.

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50 Edities

in deze editie

7 min.
how to win a trade war with china

With the ascent of Donald Trump, fears have risen that China and the U.S. might be headed for war. At least for now, any conflict is most likely to be economic. Ever since Richard Nixon’s famous visit with Mao Zedong in 1972, the U.S. has striven to treat Beijing as a partner, help its economy develop, and lure the emerging giant into the global order Washington has crafted. Trump, though, believes that policy has allowed China to prosper at America’s exp ense, and that it’s high time Washington stood up for U.S. workers, industry, and power. The Chinese “haven’t played by the rules, and I know it’s time that they’re going to start,” he said in December. Much of what Trump says about China is nonsense. But embedded in his rhetoric…

2 min.
lessons from mongolia’s bust

Not so long ago, Mongolia had the world’s fastest-growing economy. Now, by almost every metric, it’s in a dire fix. Its debt has surged, its currency has plummeted, and its budget deficit has widened alarmingly. Foreign investment has dried up, and economic growth all but ceased. Even the poor antelope are beset by plague. Making matters worse, some enormous bills are coming due. The government, along with a state-backed development bank, is on the hook for more than $1 billion in maturing bonds over the next year. By one account, locals are so anxious they’re donating their horses to help avoid default. Thankfully, better options are available. In mid-February the government started negotiating with the International Monetary Fund for a bailout, its sixth in less than three decades. China also may…

1 min.
who watches the banks under trump?

Almost a decade after a devastating financial crisis, the U.S. remains poorly prepared for a repeat. So it’s unsettling that Daniel Tarullo, the Federal Reserve Board official who has done the most to make the country’s banks stronger, plans to step down—and all the more important that President Trump find a worthy replacement. The 2008 crisis exposed weaknesses at the heart of the U.S. financial system. Big banks had far too little loss-absorbing capital, and shortages of cash forced emergency asset sales that added to their losses. The government had no option but to rescue them at taxpayer expense. Tarullo led efforts to strengthen the system. The Fed adopted capital requirements significantly more demanding than those laid down by international regulators and tied them to liquidity rules aimed at ensuring banks would…

3 min.

Ups • Japan’s SoftBank agreed to buy Fortress Investment Group, a publicly traded private equity company with $70 billion in assets, for $3.3b • Matching its rivals, Verizon is once again offering unlimited data plans on its cellular network. Telecom shares dipped as investors grew skittish about a price war. • Kirin Holdings sold its Brazilian beer business, including 12 breweries, to Heineken for $1.1 billion. Although the company had 9 percent of the local beer market, it took a $1 billion impairment charge for the unit as the economy slipped into recession in 2015. • With almost half of its business coming from “guilt-free” snacks and drinks, PepsiCo beat earnings expectations and posted a 5 percent increase in revenue. • Activist investor Trian Fund Management bought a $3.5b stake in Procter & Gamble as…

5 min.
should farmers fear him?

Kirk Liefer is readying his soybeans for shipment down southern Illinois’s Kaskaskia River. The Kaskaskia feeds into the Mississippi, which, to a great extent, feeds China: About one-quarter of the U.S. crop goes straight to the world’s biggest food market, where it gets eaten by half the planet’s pigs and provides cooking oil for a rapidly growing middle class. “Our soybeans go to China, a lot of the corn goes to Japan or Mexico,” says Liefer, 39. “Almost everything that’s a bulk crop goes overseas. You take that away, you ripple through the entire region.” U.S. farmers and agribusinesses are wary of the protectionism driving the trade policy of President Donald Trump, while rivals are calculating how doors closed by the U.S. could open markets for them. David MacLennan, chief executive officer…

3 min.
brazilian police strike, and violence spikes

Brazilians are feeling the bite of austerity measures that have left public services in parts of the country close to collapse. And many are protesting. The most conspicuous example: the strike by police officers in Espírito Santo, which ended on Feb. 12. During the walkout, which lasted more than a week, crime rates soared across the state just north of Rio de Janeiro state. According to the civil police union, almost 150 murders were committed, up more than 300 percent from the same period last year. President Michel Temer condemned the strike as illegal and unacceptable and sent 2,000 federal troops to assist the state. While local television stations broadcast images of looting, many supermarkets and schools remained closed for most of the week. Residents refused to venture out of their…