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Bloomberg Businessweek

Bloomberg Businessweek June 21, 2021

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
the russell 1000 index opens a can of memes

Later this month, FTSE Russell, the global index provider, will rebalance its family of U.S. stock indexes, which serve as benchmarks for about $10.6 trillion in assets. The reshuffling opens the door to the slew of meme stocks that Reddit traders have driven skyward. The can of memes is open. In general, stocks that had a market value greater than the 1,000th-ranked company—about $5.2 billion as of the May 7 cutoff—will be added to the large-cap Russell 1000 Index. According to Goldman Sachs Group Inc., there probably will be 57 new entrants. Among them are likely to be hot unicorns that went public in the recent SPAC frenzy, such as QuantumScape Corp., an EV battery maker. Reddit sensation GameStop Corp. will probably enter the list, though AMC Entertainment Holdings Inc., which…

4 min
putting steaming hot data on ice

All those videos, emails, bank statements, photos, shopping carts, airline reservations, and so, so, so much more sluicing around the internet eventually end up in the millions of data centers scattered across the globe. With all that stuff coming and going, those places are getting crowded—and hot. David Craig can’t do much about the congestion, but he says he’s got a fix for the heat: A liquid that bathes the cores of processors to keep things at a relatively chilly 50C (122F). “As we process much more data, the chips are becoming three, four, five times hotter,” says Craig, chief executive officer of Iceotope Technologies Ltd., a U.K. startup focused on cooling strategies for computing. Data centers consume 2% to 4% of the world’s electricity, and almost half of that power…

6 min
nasdaq. nyse. sushiswap?

Money manager Vladimir Vishnevskiy can earn a negative interest rate for holding a European government bond. Or he can pocket the annual equivalent of a 20% yield for locking up money in one of the wilder corners of the cryptocurrency market, known as decentralized finance, or DeFi. He decided to go for the 20%. “You can’t get those yields in the traditional space,” says the co-founder of Swiss-based St. Gotthard Fund Management, which runs a portfolio designed to squeeze income out of crypto assets. The strategy is so new that even Wall Street pros may have trouble wrapping their heads around it. Take what you might know about Bitcoin—that it’s a digital currency that exists only on an online ledger governed by computer code. Now make it even more mind-bending, and…

5 min
working abroad is easy. taxes aren’t

Imagine for a second that the pandemic is over. Global travel has resumed, Covid-19 hot spots are a thing of the past, and companies are keeping a promise some have been making lately to attract top talent: to allow remote work from anywhere in the world, at least for a few months a year. Then envision a Londoner, a New Yorker, and a Hong Konger walking into a bar. Let’s say it’s in Rio de Janeiro. They all make the same salary—$100,000—and have been allowed to work remotely from Brazil for two months. Once they’ve put down their caipirinhas and returned home from their stints abroad, who will owe the most in taxes? According to Robert Salter of tax and advisory firm Blick Rothenberg, our remote worker from New York could face…

4 min
more peas, please

For investors, Beyond Meat’s May 2019 stock market foray was the most successful initial public offering since the 2008 financial crisis. For the food industry, it was the start of an obsession with one key ingredient: the humble yellow pea. Flush with cash, Beyond Meat soon brought the newest version of its pea-based vegan Beyond Burgers to supermarkets across the U.S., added Beyond Beef to the store lineup, and tested Beyond Sausage with its biggest partner yet, Dunkin’. By the end of that summer, pea protein prices had more than doubled from a year earlier, says Morten Toft Bech, founder and chief executive officer of Meatless Farm Co., a British maker of plant-based meats. Copycats quickly followed, and now pea protein is being used to make fake chicken, seafood, cheese, and…

6 min
latin america turns on the establishment

The apparent narrow electoral win in Peru of Pedro Castillo, a rural union activist from a Marxist party, over conservative Keiko Fujimori signals what may be a far-reaching shift to the left in a region ravaged by Covid and filled with fury at ruling elites. Candidates on the left appear poised for victory in Chile, Colombia, and Brazil over the next 16 months. With leftists already running Argentina, Mexico, Venezuela, and Bolivia, it could resemble the “pink tide”—the spread of leftist governments kicked off by Venezuela’s election of Hugo Chávez—at the start of this century. “You may have to start thinking about a radically different-looking Latin America,” says Brian Winter, vice president of Americas Society/Council of the Americas. “There are deep implications for these countries’ relations with the U.S. and China…