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Bloomberg Businessweek

Bloomberg Businessweek 8/27/2018

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

● On Aug. 22, the S&P 500 marked the longest bull market in its history, though not yet its largest by percentage gain. ● Residents of India’s southern region began to clean up after two weeks of torrential rains. In Kerala state, floods and landslides have been blamed for more than 200 deaths. More than 800,000 people have been forced to evacuate. ● President Trump broke with precedent and criticized the Fed for raising rates (first at a Hamptons fundraiser, then publicly on Twitter), sending the Bloomberg Dollar Spot Index falling. ● Australian Prime Minister Malcolm Turnbull quelled a rebellion from within his own party, at least for now. He faced a leadership challenge from Home Affairs Minister Peter Dutton, who resigned after losing the vote. With a federal election coming in May,…

1 min

▶ The EU’s Brexit Chess Moves German Chancellor Angela Merkel and French President Emmanuel Macron will meet in Paris in the coming weeks, according to a French official, ahead of the European Union summit in Salzburg on Sept. 20. On their to-do list: strategize for a potential showdown over Brexit. ▶ Trump lawyer Rudy Giuliani set a Sept. 1 deadline for the Russia inquiry, which Special Counsel Robert Mueller appears to be ignoring. ▶ Mexico’s new Congress convenes for the first time on Sept. 1, three months before President-elect Andrés Manuel López Obrador is sworn in. ▶ Department of Justice official Bruce Ohr, one of Trump’s bêtes noires, testifies in the House on Aug. 28 on his connections to the Steele dossier. ▶ Iranian President Hassan Rouhani appears before Parliament on Aug. 28…

2 min
greece’s ordeal is far from over

Greece reached an important milestone on Aug. 20, 2018: After almost nine years of crisis, brutal austerity, and political turmoil, it’s exiting what’s supposed to be the last of three bailout programs. If only it weren’t doing so with Europe’s largest debt burden. Europe’s leaders are understandably eager to be done with an embarrassing episode. The debt crisis that began in 2010 highlighted not only Greece’s financial mismanagement but also how Germany, France, and other core countries allowed their banks to enable it. Bailing out Greece was political sleight of hand: It indirectly saved the banks, while putting the onus on the Greek people. Miraculously, Greece survived. The federal budget is in surplus, and the economy is growing again after one of the deepest recessions ever. But the country is also stuck…

4 min
loyalty loyalty loyalty?

“I’m going to surround myself only with the best and most serious people. We want top-of-the-line professionals.” —Donald Trump, Aug. 8, 2015 In life, business, and now politics, the president of the United States has treated loyalty as a one-sided affair, something he expects from others but has rarely doled out to anyone but his closest family members. That formula allowed the Trump Organization to float along as a marketing and development boutique built around Donald Trump himself—but also ensured that it would never evolve into a Fortune 500 enterprise manned by capable professionals. As long as he stayed out of legal trouble, Trump also could—and for decades did—tear through people and propositions willy-nilly, dismissing naysayers with a leak to the gossip pages, an appearance on a talk show, or a vicious…

5 min
bayer beware

Last fall, as Bayer AG was completing its $66 billion merger with Monsanto Co., Chief Executive Officer Werner Baumann visited the concrete-slab Berlin complex where company scientists develop disease-fighting drugs. At an employee town hall meeting, Baumann asked whether staffers believed environmentalists’ claims that the Monsanto weed killer Roundup causes cancer. Despite the CEO’s obvious interest in the acquisition, some raised their hands. On Aug. 10 a California court agreed, awarding a school groundskeeper dying of lymphoma $289 million on a claim that exposure to glyphosate, Roundup’s key ingredient, had contributed to his cancer. The verdict—the first in what may be thousands of cases—sent shock waves through Bayer and erased $16 billion from the company’s market value in a week. “The odds are that Bayer will suffer more losses” in…

4 min
why the sec may be musk’s best frenemy

Elon Musk’s tweet about taking Tesla Inc. private has brought intense scrutiny, mostly of Musk, but also of U.S. securities regulators. The Securities and Exchange Commission would seem to have a strong case that Musk was at the very least being misleading when he tweeted on Aug. 7 that he’d “secured” financing for a privatization deal. He appeared to indicate he hadn’t closed a deal in a subsequent blog post. That could be a violation of securities laws. Yet the probe is fraught with minefields. Among them, ex-SEC officials say, is an understaffed and often outgunned enforcement team in San Francisco, which has a hard time competing for talent with top tech companies and law firms that offer big paydays. And the SEC has tread lightly at times when it comes…