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Bloomberg Businessweek 5/14/2018

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

2 min
in brief

● Nestlé agreed to spend more than $7 billion on rights to sell Starbucks products globally. The Swiss conglomerate hopes the deal will fuel sales, now growing at their slowest rate in two decades. Starbucks will use the cash to buy back shares. ● Facebook reorganized its executive ranks on May 8, putting its product chief officially in charge of Instagram and WhatsApp, and announced the creation of a blockchain unit. ● A fissure opened in the Leilani Estates area of Pahoa, Hawaii, on May 5. The eruption of the Kilauea volcano has displaced more than a thousand people so far. • “Oh, ‘We need a woman for a board.’ Oh, it is like, ‘We need a plant on the table.’ ” Designer and fashion magnate Diane von Furstenberg spoke at Bloomberg’s Business of Equality…

1 min

▶ Next Week in Jerusalem The new U.S. embassy in Jerusalem opens on May 14. In response to the embassy’s relocation from Tel Aviv, the Palestinian National Authority has ceased participating in U.S.-brokered peace talks with Israel. President Trump, who won’t be in attendance, said he’s “very proud of” the move. ▶ Germany publishes preliminary first-quarter GDP figures on May 15. The data are expected to show the euro area’s linchpin economy cooling. ▶ U.K. Prime Minister Theresa May will discuss her proposed EU “customs partnership” after delaying for a week to rally cabinet support. ▶ Investors will be watching Tencent Holdings’ May 16 earnings report for evidence of continued shrinkage in its profit margin. ▶ The U.S. Army Corps of Engineers pulls out of Puerto Rico on May 18, leaving the island’s battered…

2 min
the wrong way on data

The European Union is embarking on an expansive effort to give people more control over their data online. The 260-plus pages of the General Data Protection Regulation are well-intentioned yet largely wrongheaded as they articulate dozens of goals in the service of “a strong and more coherent data protection framework.” Meeting these ambitions will be the job of companies—wherever they’re located—that process the data of EU citizens. Among other things, companies will need to obtain consent, explain how data will be used, allow people to see what’s been swooped up, and permit them, at any moment, to withdraw their consent or to demand that their data be deleted. Given the backlash against data collection—and support for the GDPR’s stated goals—this approach might seem reasonable. But look more closely, and the drawbacks are…

9 min
can amazon deliver diversity?

By the end of the year, Amazon.com Inc. will announce the location of its second headquarters. It’s hard to understate the local impact of 50,000 new jobs, and Amazon knows it: It’s staging a months-long reality show of a selection process to see which city can offer the best package of financial incentives, real estate, and livability, alongside other requirements. The search for a second home gives Amazon something else: an unprecedented opportunity to deal with a problem besetting all of big tech—a stunning lack of diversity. And Amazon is one of the bigger sinners. Men make up 73 percent of its professional employees and 78 percent of senior executives and managers, according to data the company reports to the government. Of the 10 people who report directly to Chief Executive…

8 min
abu dhabi looks beyond oil

Behind the 65-story glass tower that houses the shiny new headquarters of Abu Dhabi National Oil Co. sits a remnant of the Middle Eastern emirate’s not-so-distant past: the squat, sand-colored building that the government-owned energy giant once called home. The stark contrast between the old and new buildings provides a hint of the changes afoot in energy-rich Abu Dhabi. The tiny, but stratospherically wealthy, emirate is trying to forge an economy for a post-oil world and needs to wring more profits from its petroleum industry to finance the makeover. A similar shift is taking place in neighboring Saudi Arabia, where Adnoc’s larger rival, Saudi Aramco, plans to sell shares for the first time. With a projected $2 trillion valuation, Aramco is set to have the world’s biggest initial public offering. Adnoc also…

6 min
is the corporate bully the next workplace pariah?

“Some companies are realizing that a bullying boss isn’t the best way to manage a company” After Nike Inc. ousted a handful of male executives for behavior issues over the past few months, some media reports tied the departures to the #MeToo movement and its revelations of sexual harassment and assault. Interviews with more than a dozen former Nike employees, including senior executives, however, paint a picture of a workplace contaminated by a different behavior: corporate bullying. The workers say the sneaker giant could be a bruising place for both men and women, and that females did bullying, too. On May 8, Nike signaled as much when it confirmed four more exits stemming from an internal misconduct inquiry, including the departure of a woman with more than 20 years at the…