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Bloomberg Businessweek

Bloomberg Businessweek 4/3/2017

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

6 min
show us your tax reforms

Reagan took five years to enact his landmark legislation. Trump will have a harder time The president needs a win, and he’s picked the federal tax code as the issue on which to take a stand. On March 24, still stinging from his failure to repeal and replace Obamacare, Donald Trump told reporters he’d “start going very, very strongly for the big tax cuts and tax reform.” Taxes, he said, “will be next.” Judging from the fiasco over the American Health Care Act, there’s good reason to think Trump is about to get in over his head again. The federal tax code is one of the world’s most complicated machines, and he hasn’t even released the outlines of a plan for how to fix it, unless “phenomenal” counts as a description. What…

2 min
california vs. trump over car emissions

Thanks to a peculiarity of U.S. law, California has special power to set car pollution standards that affect the whole country. And the whole country—even the whole world—has benefited as the state has pushed automakers to create ever better pollution-limiting technology and ever more fuel-efficient cars. In the face of Donald Trump’s threats to let greenhouse gases rip, California’s help is needed more than ever. The administration has signaled a desire to undermine the state’s de facto national authority. State leaders have vowed to resist and are moving ahead with stricter emissions standards. Fortunately, California has a good chance of winning this fight. The state’s prerogative stems from its historic efforts, dating from the 1960s, to restrict tailpipe emissions to reduce smog in Los Angeles. In 1970, when Congress passed the Clean…

2 min
central america’s fiscal failure

Central Americans have good reason to flee to the U.S. in ever greater numbers. Record-setting homicide rates and lack of economic opportunity plague much of the region. A main cause of these and other ills is the failure of governments to provide for the health, education, and welfare of their citizens. Saddled with some of the world’s highest poverty rates, El Salvador, Guatemala, and Honduras—the countries that accounted last year for most apprehensions at the U.S. southern border—gather relatively little in tax. Right now these countries are in effect outsourcing the uplift of their poorest by exporting undocumented immigrants. In 2015 each took in remittances equal to more than 10 percent of gross domestic product. A smarter approach to collecting revenue could raise more money for essential services without unduly burdening workers…

3 min

Ups • Jim Gianopulos was named CEO of Paramount Pictures. The studio is running sixth at the box office so far this year. Gianopulos, the former head for films at Twentieth Century Fox, replaces Brad Grey, who left in February after 12 years. • Amazon.comagreed to buy Middle East online retailer Souq.com for an undisclosed sum. The Dubai-based company has 3,000 employees and draws about 23m visits a month. • Pimco agreed to pay co-founder Bill Gross $81m to settle charges that he was forced out in September 2014. Gross, now at Janus Capital, plans to donate the money to charity. • Increase in value of shares in Darden Restaurants on March 27, when it announced plans to purchase Texas-based Cheddar’s Scratch Kitchen for $780 million. The chain, known for its ribs, gives Darden…

5 min
who gets to drill here?

When an angry mob torched city hall in the southern Mexican town of Tecpatán in February, it sent a warning flare across a country already thrown into turmoil by Donald Trump. The outrage was over oil, specifically the government’s plan to auction off a swath of land around the farming community to private drillers. The locals say they weren’t informed that a date—July 12—had been set for the auction. When they found out, they set fire to the two-story town hall, which now sits charred and abandoned, its windows smashed and the iron gate chained shut. Its tower clock stopped at 10:55. The unrest harks back to the 1990s, when Zapatista rebels were roaming the region and declaring war on the North American Free Trade Agreement. The recent protests come at a…

4 min
in europe, brain drain flows the other way

When BlackRock Inc., the world’s largest asset manager, announced it was setting up a new office in Budapest this year, with 500 open positions, it was inundated by applicants from an unlikely place: London. Those interested in leaving Europe’s top banking center for Hungary made up a third of aspirants, says Melanie Seymour, BlackRock’s managing director in Budapest. At a get-together the company hosted at its London office in late January to promote the jobs, she says, so many senior investment bankers and other top-earning Hungarians attended that the after-work event stretched into the evening. As London braces for a post-Brexit talent exodus, Central and Eastern Europe are preparing for an influx. Following years of brain drain, when elite graduates fled ex-communist nations for higher-paying jobs in the West, the region now…