Business & Finance
Bloomberg Businessweek-Asia Edition

Bloomberg Businessweek-Asia Edition March 18, 2019

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.

Bloomberg Finance LP
Read More
₹ 602.19
₹ 2,100
50 Issues

in this issue

2 min.
in brief

● Theresa May’s much-maligned Brexit plan suffered another crushing—and perhaps fatal—defeat. The U.K. Parliament then voted to reject, leaving the European Union without a deal. That raises the prospect that the divorce will be delayed or even reversed. ● Boeing faces an unprecedented crisis of confidence after all 157 people on board were killed in the crash of a 737 Max 8 airliner in Ethiopia. Carriers and regulators around the world grounded the company’s most important jet pending an investigation into the disaster. ▷ 15 ● Paul Manafort, President Donald Trump’s former campaign manager, was charged by state prosecutors in New York for residential mortgage fraud and falsifying business records, just minutes after his sentence for federal crimes was raised to seven and a half years. ● Brookfield Asset Management agreed to…

1 min.

▶ What to Do About Britain The European Council meets on March 21-22 in Brussels for a summit focused on jobs, growth, and climate change. But the real issue will be Brexit, with the dust from the chaotic votes in the U.K. Parliament still settling and the country not sure about what it will do next. ▶ OPEC and its allies meet on March 18 in Baku, Azerbaijan, to assess their oil-production agreement ahead of a Vienna policy meeting next month. ▶ Fed Chair Jerome Powell holds a press conference on March 20, after the release of the U.S. Federal Open Market Committee’s interest-rate decision. ▶ Data on German investor confidence will be published on March 19. The mood in Europe’s largest economy has picked up modestly in recent months. ▶ The Bank…

2 min.
his worst economic idea

Evidently, Donald Trump is still toying with the idea of imposing steep tariffs on cars and automotive parts. In a White House brimming with bad economic ideas, this would be the worst yet. In February, the U.S. Department of Commerce completed a confidential report on the national security implications of auto imports. If the probe uncovered a threat of some kind, real or imagined, the president would have wide latitude under the law to restrict or limit imports. Trump has mused about 25 percent duties to induce the European Union to make trade concessions. Europe has to “play ball,” he’s said, or “we’re going to tariff the hell out of you.” This would be as foolish as it sounds. A tariff that size would be a tax increase of perhaps $80…

6 min.
never ask a bull market its age

So much advanced mathematics is applied to the stock market these days that it can sometimes look like one big physics experiment rather than a basic way for the masses to invest in the fortunes of U.S. businesses. So it’s curious how much attention Wall Street pays to one of the least-complicated math concepts there is: round numbers. Take the commemorative baseball hats that appear at the New York Stock Exchange whenever the market hits a milestone such as “Dow 10,000” and “Dow 20,000.” Presumably, some hat company has an order on file for “Dow 30,000” lids that it’s patiently waiting to fill. As long as they’re round, even not-quite-noteworthy numbers can cause a sensation, at least temporarily, as witnessed by investors’ current fixation with the S&P 500’s struggle to push…

9 min.
the plight of the 737 max 8

The skies had been, in aviation parlance, “severe clear” for Dennis Muilenburg since he took the helm at Boeing Co. four years ago. With air traffic increasing 6 percent annually, orders were booming, and revenue in 2018 topped $100 billion for the first time in the company’s 102-year history. Competitor Airbus SE has been distracted with the humiliating commercial flop of its A380 flagship and a bribery scandal that’s led to a huge management turnover. With Boeing’s stock price tripling during his tenure, its market value soared above $200 billion, making it the largest U.S. industrial company. It’s used the newfound clout to pursue acquisitions and ambitious projects such as a flying car. The only cloud was the crash in October of a 737 Max 8 jet operated by Indonesia’s Lion…

3 min.
the chinese plane on boeing’s radar

Airlines worried about buying from Boeing Co. have another supplier besides Airbus SE to choose from: the Chinese government. The state-owned Commercial Aircraft Corp. of China, or Comac, is building the C919, a narrowbody passenger plane with a capacity of about 170 that the company says has more than 800 orders worldwide. It will compete with the Boeing 737 Max 8—as well as the Airbus 320neo—as part of Chinese President Xi Jinping’s ambitious gamble to build an aerospace industry from scratch and break Western companies’ grip on the skies. China grounded the Max 8 within hours of the Ethiopian Airlines crash, leading a global wave of suspensions. “These kinds of events provide an opportunity for Comac to get their foot in the door,” says Chad Ohlandt, a senior engineer at Rand…