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Bloomberg Businessweek January 7, 2019

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.

United States
Bloomberg Finance LP
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50 Issues


access_time2 min.
in brief

Oracle co-founder Larry Ellison and Walgreens Boots Alliance’s global human resources chief, Kathleen Wilson-Thompson, were tapped by Tesla to join its board to provide Elon Musk with more of the outsider oversight demanded by regulators. On Jan. 2, Tesla announced price cuts after disappointing third-quarter deliveries. Apple cut its first-quarter revenue guidance, citing China’s “economic deceleration” and other factors. On Jan. 2 the company said it now expects sales of about $84 billion. Its original forecast predicted a range of $89 billion to $93 billion. Shares plunged in after-hours trading by as much as 8.5 percent. On Jan. 1, as the U.S. government remained partially shut down over Trump’s demand for a wall, Central American migrants sought cover from tear gas fired by U.S. border agents to keep them from crossing into San…

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▶ New Year Celebrations … or Regrets? The embattled retail industry will get a clearer idea of just how good the shopping season has been when two big companies release their December sales and revenue figures. Costco Wholesale reports on Jan. 9, and Target follows the next day. ▶ The U.S. Supreme Court will hear arguments on whether a law on debt collection abuse applies to home foreclosures where there’s no court supervision. ▶ Most major healthcare companies will make presentations at the 37th annual J.P. Morgan Healthcare Conference in San Francisco on Jan. 7-10. ▶ Homebuilder Lennar announces fourth-quarter earnings on Jan. 9, giving a glimpse into how the industry has been affected by economic uncertainty. ▶ General Motors’ investor webcast on Jan. 11 will update analysts on auto demand and the effect…

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fighting over fish

Seafood is the main source of protein for 3 billion people worldwide, and the industry employs more than 55 million workers. But with 90 percent of fish stocks depleted or overfished and the world’s reefs dying, fleets are increasingly operating illegally in other countries’ exclusive waters and in areas of the high seas that international agreements protect. Experts say at least 20 percent of the global harvest comes from illegal, unreported, and unregulated fishing, which brings in an estimated $15.5 billion to $36 billion a year. Failing fisheries will lead to shortages of food and large migrations of people—fueling war, crime, and terrorist recruitment. Unlawful fishing has increased tensions among nations in the South China Sea and the Bay of Bengal, along the Patagonian coast, and in other areas. Many illegal…

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the trump slump

Green means up and red means down in the stock market. Lately there have been many red days. But the true color of today’s market is golden orange—the hue of the pompadour atop the head of President Donald Trump. Because for better and for worse, this has become Trump’s stock market. Until October, the extended bull market was reasonably called the Trump Bump. The decline over the past few months, particularly since the start of December, is the Trump Slump. Few would dispute that Trump is a volatile personality who’s having a volatile presidency. He’s shaken the establishment to its roots. Yet for most of his time in office, volatility in the stock market was below its long-term average, with the exception of a spell in February and March. Investors’ calm…

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an unhappy new year for restaurants

Every autumn, retailers hire large numbers of seasonal workers to handle the rush of holiday business. Then, after the new year kicks in, many of those temps typically rejoin the ranks of low-skilled job seekers, eager for work and often willing to accept meager pay. That cycle has long been good for the restaurant industry, with food preparation workers and servers receiving mean annual wages that were half those of the U.S. average, according to May 2017 U.S. Bureau of Labor Statistics data. It may not work out that way in 2019. Fewer teens are in the workforce nowadays, reducing the number of job seekers for low-wage work and helping raise the pay rates needed to woo those who are. Also, minimum wage increases for lower-skilled workers at companies such as…

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europe’s airlines face a chilly winter

Midwinter in Iceland can be brutal, with temperatures struggling to rise much above freezing and daylight spanning barely four hours. For the North Atlantic island nation’s two main airlines, Icelandair Group Hf and Wow Air Hf, times are equally bleak. With competition from larger carriers depressing fares and fluctuating oil prices making it tougher to manage costs, mounting losses and weak balance sheets are stoking concern about the airlines’ future. Iceland isn’t alone in feeling the chill. Six European airlines have gone bust since June, while debt-laden Norwegian Air Shuttle has been targeted for takeover, Alitalia has been in insolvency for 18 months, and Britain’s Flybe Group is seeking a buyer as it tries to preserve cash. Even once-thriving operators such as Finnair Oyj have seen their share prices plunge as…