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Bloomberg Businessweek-Asia Edition

Bloomberg Businessweek-Asia Edition 7/16/2018

Each issue of Businessweek features in-depth perspectives on the financial markets, industries, trends, technology and people guiding the economy. 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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Bloomberg Finance LP
50 Issues

in this issue

2 min
in brief

● President Recep Tayyip Erdogan of Turkey named his son-in-law finance minister and claimed exclusive power to pick rate setters at the central bank. ● Rising snack sales helped PepsiCo beat earnings expectations in the second quarter, even as soda sales continued to slump. ● Supreme Court nominee Brett Kavanaugh made the rounds in the Senate, visiting John Cornyn of Texas. Democrats have called for a hold on his confirmation hearings until special counsel Robert Mueller completes his Russia investigation. ● The U.K. Information Commissioner’s Office fined Facebook £500k ($660,250) for its role in the Cambridge Analytica data breach. A trivial sum for a company with $40 billion in annual sales, the penalty is the maximum allowed under U.K. law. Facebook said it will respond to the judgment “soon.” ● India’s top court took…

2 min
give may a chance

Britain’s endless self-inflicted turmoil over Brexit has taken a fresh turn with Prime Minister Theresa May’s new plan for a post-Brexit trade agreement and the resignations of key ministers from her government. She’s accused of betraying those who voted for the U.K. withdrawing from the European Union, and her leadership might soon be challenged (page 35). The prospect of a maximally disruptive “hard Brexit” draws closer. Yet May’s plan, despite the ructions in Westminster, might be the best hope for avoiding the chaos of such an exit. After months of dithering, she’s finally thrown her support behind a “soft Brexit”—one that leaves much of the U.K.’s economic relationship with the EU intact. She wants a free-trade area based on the union’s rulebook for goods. Together with a customs partnership (which would require…

1 min

▶ A New Face at the People’s Podium Spain’s People’s Party gathers on July 20 and 21 to choose a replacement for Mariano Rajoy, who resigned as prime minister after a June 1 no-confidence vote. Socialist party leader Pedro Sánchez will continue as prime minister until national elections are called, no later than 2020. ▶ The U.S. Department of Commerce holds hearings to decide whether auto imports are a national security threat and therefore subject to tariffs. ▶ The European Commission is poised to impose new antitrust fines on Google over its dominant Android mobile operating system. ▶ Group of 20 finance ministers meet in Buenos Aires on July 21 and 22 and are expected to issue recommendations on cryptocurrency regulation. ▶ Leaders at the China-EU summit in Beijing will attempt to preserve trade…

9 min
brother from another motherland

Forget for just a moment the allegations of Russian meddling in U.S. elections or of collusion by President Trump. His summit with Vladimir Putin has American allies in a state of high anxiety, because the two men have emerged as natural partners in the culture wars sweeping the globe. There can be few more contrasting personalities than Putin, the disciplined ex-KGB agent, and Trump, the flamboyant former reality TV star. And the two men are unlikely to strike any grand bargain when they meet in Helsinki on July 16, if only because the rest of Washington would block it. Even so, Europe is counting the things that can go wrong. Trump’s fascination with Russia’s strongman is longstanding. Putin, for his part, has never disguised his interest in this new kind of American…

7 min
a trade war’s collateral damage for china

In a fight with China, ending up on the wrong side of the country’s consumers or bureaucrats can be very costly. Consider the case of Lotte Group, the South Korean retail-and-food conglomerate that was a target last year in China’s fierce campaign against a Korea-based missile defense system. Inspired by harsh coverage in the state-controlled media, Chinese consumers boycotted Lotte and other Korean brands. Some Chinese stores emptied their shelves of Lotte products. Regulators cited alleged safety violations to shut most of Lotte’s 99 Chinese hypermarkets as well as a joint venture with Hershey Co. Revenue at Lotte Shopping Co. plunged 25 percent in 2017, and the company logged its first loss in its 16 years as a public company. Lotte this spring agreed to sell its money-losing superstores in…

5 min
the arnaults try to refashion lvmh for millennials

At the Louis Vuitton menswear show in Paris last month, designer Virgil Abloh sent hoodie-clad models down the runway toting duffel bags made from gleaming high-tech plastic, all to the latest Kanye West album. West, who embraced the tearful Abloh as he took his bows, was joined by his wife, Kim Kardashian. Seated steps away: Bernard Arnault, head of parent LVMH Moët Hennessy Louis Vuitton SE, and four of his adult children. The duffels were a far cry from the classic monogrammed brown bags that the senior Arnault long relied on to help LVMH define and dominate the global luxury industry. But the updated totes are one of the ways the next generation of Arnaultsfour of Bernard’s five children hold senior positions at LVMH—are helping remake their father’s company to adapt…