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Bloomberg Businessweek

Bloomberg Businessweek 6/25/2018

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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Country:
United States
Language:
English
Publisher:
Bloomberg Finance LP
Frequency:
Weekly
$7.99
$59.99
50 Issues

in this issue

2 min
in brief

● Canada became the second nation—after Uruguay last year—to legalize marijuana. Once the law goes into effect, probably in September, Canadians will be able to grow up to four plants and carry as much as 30 grams of weed. ● New York’s Department of Financial Services reached a $205 million settlement with Deutsche Bank over allegations that traders sought to manipulate exchange rates. The bank admitted to the activity as part of the agreement and committed to improving its compliance practices. ● Alphabet’s Google took a $550m stake in JD.com, a China-based e-commerce empire. The deal gives JD access to customers in the U.S. and Europe via Google’s Shopping platform. ● Audi CEO Rupert Stadler was arrested in a German probe into emissions cheating amid fears he would tamper with evidence. Audi’s parent…

1 min
agenda

▶ GE Will Fall Out of the Dow On June 26, Walgreen Boots Alliance replaces General Electric in the Dow Jones Industrial Average. GE was a founding member of the index in 1896 and has been on it continuously since 1907. It’s also been the Dow’s worst performer the last two years. ▶ The U.S. Supreme Court ends its term on June 25. Its fall slate has an antitrust case against Apple’s App Store and a challenge to securities fraud laws. ▶ Bidding closes for Bruce Springsteen’s original manuscript of the lyrics to Born to Run, on the block at Sotheby’s, on June 28. ▶ Most banks are expected to get a pass in the Federal Reserve’s annual capital assessment, with results to be announced on June 28. ▶ To stave off a fracture in…

2 min
the ‘deep fake’ threat

Illusions have long thrived on the internet from doctored photos to fake news. Now there’s a newly sophisticated variety to pay attention to. Sometimes called “deep fakes,” they’re videos made with the help of artificial intelligence that appear genuine but depict events or speech that never happened. Without precautions, they could prove highly disruptive—to people and politics alike. In their simplest form, these forgeries are easy to produce. A video faker feeds images of a person to a machine-learning algorithm, which in turn overlays her features onto the body of someone in another video, creating a simulacrum of the original person doing things she didn’t do. It’s an impressive bit of voodoo, and it’s being put to devious uses. Porn, naturally, was an early application: Specialized apps can superimpose anyone’s face on…

9 min
a tale of two cities

If you know anything about financial history, you know about the Big Bang deregulation of London’s financial markets. On Oct. 27, 1986, Prime Minister Margaret Thatcher blew apart the inert blob that was the stagnant postwar U.K. economy and its ailing banking system. That explosion helped make London synonymous with international finance, ignited a cultural and economic transformation in the U.K., and even helped bring down Soviet communism. Now, two years after Britons voted to exit the European Union, it’s worth reflecting on not just how the Big Bang was detonated but also on the principles it represented. This wasn’t an immutable act of nature so much as a reversible act of financial engineering, and Brexit has become an agent of its undoing. The financial revolution Thatcher kicked off was a…

6 min
deep-water drilling rises from the depths

On a hot, sunny May afternoon, flying fish leap out of the Gulf of Mexico’s brilliant blue waters near the steel legs of a Chevron Corp. oil platform, pursued by deep-water predators. “Is that a shark chasing them?” asks barge supervisor Jamie Gobert, peering over a rail. “Think it’s yellowfin tuna or maybe dolphinfish,” says Emile Boudreaux, his colleague. Typically in the region, seeing so many deep-water creatures converging on a single spot would be unusual. But these denizens of the Gulf have a road map of sorts to Chevron’s huge Jack/St. Malo platform, a floating steel structure the size of three football fields about 200 miles off the Louisiana coast. The fish are following giant underwater pipelines that carry crude from three oil fields about 15 miles away in different…

5 min
the art of crafting a turnaround at etsy

A year ago, Etsy Inc. was in trouble. Sales growth was slowing, expenses were climbing, and its stock had slumped 65 percent since a 2015 public offering. Activist investors were clamoring for change, and in May 2017 they got it: The board fired longtime Chief Executive Officer Chad Dickerson and replaced him with Josh Silverman, a former EBay Inc. and American Express Co. executive. Silverman, 49, is worlds away from Etsy co-founder Rob Kalin, who started the marketplace as a kinder, more equitable way for artisans to sell their work online. Kalin later decamped for New York’s Catskill Mountains to establish a community for artists in a reclaimed mill. While Kalin was building Etsy in the mid-2000s, Silverman was at EBay earning a reputation as a sharp-penciled turnaround specialist whose…