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Bloomberg Businessweek

Bloomberg Businessweek 4/23/2018

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
in brief

Americas ● The IRS offered Americans an extra day to do their taxes after an error caused its website to tell e-filers that it would be down for a “planned outage” from tax day, April 17, through the year 9999 ● Telefónica hired investment bankers to handle an IPO of its Argentine unit. The debt-laden Spanish wireless carrier is hoping to raise as much as $1b in the offering, which is planned for next year. ● Puerto Rico experienced yet another island-wide blackout on April 18. AEE, the island’s electric utility, tweeted that it would need 24 to 36 hours to restore service. Rhodium Group reports that Hurricane Maria has cost Puerto Ricans more customer-hours than the rest of the U.S. lost from all causes in the past five years. •“I don’t get confused.” UN Ambassador…

8 min
china’s big bang

In 1984, I came to China as a grumpy, uninquisitive backpacker, dragged from crowded bus to uncomfortable hostel to inedible meal by two student friends who spoke Mandarin. The highlight of my trip was a visit to Maxim’s, supposedly the only Western restaurant in Beijing. The coffee tasted like nectar, and I survived another week. The idea that China was five years into Deng Xiaoping’s great opening shamefully passed me by. I thought of Maxim’s as I waited for a plane at Haikou Meilan International Airport earlier this month, nursing a cappuccino at yet another Starbucks; opposite me was a Jimmy Choo shop, each shoe worth several times the cost of a hostel three decades ago; on the other side stood a mountain of Lindt chocolate. These Western luxuries weren’t there…

2 min
the importance of trump’s trust

If it’s true that proximity to President Trump is the key to effective policymaking, then Secretary of State nominee Mike Pompeo stands a good chance to succeed—whatever the merit of his policies. That’s as it should be. To think otherwise is to misunderstand the role of the secretary of state. The job of this officeholder, fourth in the line of presidential succession, is to uphold the Constitution, execute the lawful policies of the president, and strengthen the effectiveness of the department he or she leads. In short, as much as Trump’s critics may wish it to be, Pompeo’s job is not to restrain the president, but to let Trump be Trump—and thereby respect the voters who elected him. The Senate has to decide whether Pompeo has the competence and character to reflect…

6 min
what if tesla runs out of gas?

Incrementalism doesn’t make for the best sales pitch, especially in Silicon Valley. That certainly wasn’t how Tesla Motors—now just Tesla Inc.—was sold to investors. When Elon Musk, the company’s chief executive officer, published his “Secret Tesla Motors Master Plan” in 2006, he made it clear that the upstart electric vehicle maker’s sporty Roadster—described by one impressed reviewer as a “carbon-fiber mosquito”—was just the beginning: “The strategy of Tesla is to enter at the high end of the market, where customers are prepared to pay a premium. … I can say that the second model will be a sporty four door family car at roughly half the $89k price point of the Tesla Roadster and the third model will be even more affordable,” Musk wrote. Investors bought it, but things didn’t happen quite…

4 min
new kids on the board

For most of the past decade, Cheryl Miller has spent her days trying to put more cars on America’s roads—first as the treasurer and now as the chief financial officer of AutoNation Inc., the largest auto retailer in the U.S. And for the past year she’s been working on behalf of another of the country’s biggest companies, Tyson Foods Inc., as one of the newest members of its board of directors. When she was appointed in late 2016, at age 44, Miller, one of several female directors in the meat and poultry company’s 83-year history, had never served on a corporate board. A growing number of companies, including Tyson, Republic Services, Foot Locker, and Best Buy, are eschewing traditional board candidates—retired chief executive officers, who are overwhelmingly older white men—and opting…

4 min
when cold-weather coats get too hot

Remo Ruffini has shown he can sell down jackets in July. He’s found buyers for fur-trimmed ski parkas from not one, but two stores in Hawaii. And he’s managed to turn outerwear designed for subzero temperatures into a fashion statement on runways in New York, Paris, and Milan. Now he has to prove that he can keep selling enough of his $1,000 jackets—in climes both hot and cold—to warrant his company’s market valuation of $10.7 billion. “People aren’t dressing the way they did 10 years ago,” Ruffini, 56, says at the Milan headquarters of Moncler SpA, where the showroom racks are stuffed with everything from tiny puffers for children to $1,700 fox-fur hats. “The down jacket is a part of this new look.” Moncler’s profit margins are second only to Hermès…