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Bloomberg Businessweek

Bloomberg Businessweek 4/10/2017

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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United States
Bloomberg Finance LP
50 Issues

in this issue

4 min
the real cause of the u.s. car slide: suvs

Ford Fusion: down 37 percent. Chevrolet Malibu: down 36 percent. Toyota Prius: down 29 percent. As those grim sales numbers suggest, the U.S. auto industry was blindsided in March by just how fast sedans have fallen out of favor with Americans enthralled with roomier sport utility vehicles. The swerve in consumer taste is just one of the forces—along with slumping used-car values and a pullback in subprime auto lending—changing the equation for automakers as President Trump leans on the industry to build plants to boost hiring. That will be hard to pull off, though: A glut of both new and used vehicles on the market has sparked an incentives battle, meaning new factories—particularly for sedans—are the last thing the nation’s carmakers need. Automakers set a record in the U.S. last year,…

5 min
the fed keeps its eye on swings in the stock market

William Dudley, president of the Federal Reserve Bank of New York, has long believed that Fed policymakers should pay more attention to stock market swings. Now, with the Fed lifting rates for the first time in almost 10 years, Dudley, who also serves as vice chairman of the Fed’s Open Market Committee, has a chance to put his ideas into practice. The Fed has a dual mission: to keep unemployment low and prices stable, which it tries to accomplish mainly by making changes in a key lending rate, the federal funds rate. To assess the economy, it examines data such as monthly reports on the job market and consumer spending. It doesn’t put a lot of weight on stock prices, which can be volatile, plunging and soaring from day to day,…

5 min
ice agents go from advocate to adversary

Over the past decade, Rudy Bustamante spent a lot of time driving around Phoenix, meeting immigrants anywhere they felt comfortable—schools, churches, coffee shops. As a community relations officer for U.S. Immigration and Customs Enforcement, he’s had the difficult task of trying to build trust between immigrants and the federal agency in charge of deporting those who are here illegally. Part of Bustamante’s job has been to persuade immigrants to help ICE find serious criminals while assuring them that they and their families won’t face deportation for traffic violations or other minor offenses. Building that trust hasn’t always been easy, as in 2010, when Arizona passed a law requiring immigrants to carry registration documents and giving police broad leeway to question people. “Rudy Bustamante met with all the different immigrant groups,” says…

1 min
innovation synthetic cartilage

Form and function Cartiva implants are made of polyvinyl alcohol, the main ingredient of contact lenses, and mimic natural cartilage to treat arthritis. Unlike the current standard of care—metal plates fused with joints—they allow for a full range of motion. Innovator David Ku Age 61 Professor of mechanical engineering and engineering entrepreneurship at Georgia Tech; surgeon 1. Open After opening a patient’s joint to be treated, an orthopedic surgeon bores a hole in one of the bones of the joint. Origin Research on blood flow required Ku and his students to create material for artificial blood vessels. The company they formed to further develop the material was acquired by Carticept Medical Inc.in 2008 and spun off as Cartiva Inc. in 2011. Funding Cartiva has raised $35 million from New Enterprise Associates, Windham Venture Partners, and private investors. Market…

4 min
north of the border, south of the wall

As the Trump administration evaluates bids to prototype a wall along the U.S.-Mexico border, topography will present as big a challenge as political opposition. Corralling often wild land beneath miles of concrete isn’t easy, as can be seen in these photos taken of a 55-mile stretch of fence in the Rio Grande Valley of South Texas between tiny Peñitas and Brownsville, the last major town before land gives way to the Gulf of Mexico. The actual border is formed by the Rio Grande. No barrier can be built in the middle of the muddy green waters, and the banks of the river are a flood plain governed by international treaty. The fence that’s here, a product of the U.S.’s 2006 Secure Fence Act, is a porous collection of concrete and steel…

1 min
meg he

What do you do for a living? I’m the co-founder of Aday, a clothing line that makes high-performance pieces that are also the most comfortable clothes in your wardrobe. Is that shirt from your brand? Yes. It’s a reinvented silk fabric from Italy. And you can work out in that? I wear it to go rock climbing a lot. People stare at me, of course. But it’s machine washable and dries quickly, so it works perfectly. Tell me about your leggings. They’re our bestselling pair, made in Portugal at the same place Michael Phelps’s swimsuits were made for the Olympics. Cool jacket. I love that it’s dressy but not too dressy. It’s got a silk lining, which I like because it’s a luxury just for yourself. What do you keep in your backpack? I always have my laptop and passport and…