Bloomberg Businessweek-Asia Edition

in brief

Former Federal Reserve Chairman Paul Volcker died at 92 on Dec. 9. He was widely celebrated for taming inflation in the 1980s and attempting to rein in risk-taking at big banks in response to the 2008 collapse of the housing market. Hong Kong police defused two homemade bombs at a high school on Dec. 10. Authorities said the explosives were fully functional and ready to be activated by mobile phone. The scare came just days after pro-democracy demonstrators held their largest march in months. President Trump “betrayed the nation by abusing his high office to enlist a foreign power in corrupting democratic elections.” From the U.S. House Judiciary Committee’s draft articles of impeachment, released on Dec. 10. The committee began debating the articles, which could be sent to the floor for a vote by…

the great moscow bank shakedown

Kirill Cherkalin told his parents the piles of cash stashed at their apartment—$50 million, €1.8 million ($1.9 million), and 17 million rubles ($267,000)—were “for work.” At the downtown pad he shared with a girlfriend he had shoeboxes, tote bags, and suitcases stuffed with $22 million, €6.5 million, and 794 million rubles. In his supercharged Mercedes-Benz SUV: $200,000. All told, he had some $100 million in various currencies, dozens of pricey timepieces such as gold-and-diamond Patek Philippes, four apartments, and a 5,000-square-foot house in Razdory, a leafy suburb where rich Muscovites keep homes modeled on English country estates. Yet Cherkalin isn’t a Kremlin boss or an oil-pumping oligarch. He’s not even a general. Until this spring, he was a colonel heading one of dozens of subdepartments within Russia’s FSB—the Federal Security Service,…

how to spend $26 billion

Saudi Arabian Oil Co.’s initial public offering this month is a watershed moment for a company that’s bankrolled the kingdom and its rulers for decades. Less clear is how much the money raised by the IPO will help overhaul the economy of the world’s biggest oil exporter. The share sale is a central component of Vision 2030, Crown Prince Mohammed bin Salman’s ambitious blueprint for diversifying the oil-dependent economy. Under the plan, unveiled with much fanfare in 2016, proceeds from the listing will be used to develop industries such as tourism and leisure, mining, and renewable energy, with the ultimate goal of creating a bigger role for the private sector and luring foreign capital. After global investors balked at Saudi efforts to engineer a $2 trillion valuation for Aramco, the prince settled…

that other streaming war

More than 30 million people use a Roku device to navigate the constellation of streaming TV services. The company’s portfolio includes the “stick” ($49.99), which resembles a USB drive; the “puck” ($79.99), a black square with smooth edges and minimal detailing; and a $400 smart TV with Roku Inc.’s operating system. The more expensive options offer better image quality and such features as extra digital storage space. As the era of cable and satellite TV dims, Chief Executive Officer Anthony Wood says Roku is poised to keep capitalizing on the boom in streaming video. It’s an independent player that can work well with all the entrants, he says, including new services from Disney and Apple and forthcoming ones from AT&T and Comcast. “It’s satisfying to see the world be all in…

these are the numbers you’re looking for

Imagine walking into a bank to borrow money. The loan officer might ask for your pay stubs and tax returns to prove your income, as well as for information about your debts and monthly expenses to determine whether you’re a worthy borrower. If the numbers don’t add up, you’d be out of luck. But what if you could convince your bankers that your income is higher than your stack of documents indicates? What if you promised some belt-tightening over the next couple of years that included moving to a cheaper neighborhood, getting rid of your gym membership, and cutting back on travel? Would they believe you? In the mid-2000s—the heyday of “liar loan” mortgages—maybe they would have. But banks learned their lesson about taking too much on faith from consumers. For corporations,…

taking a second bite at lululemon

Shares in Lululemon Athletica Inc. have almost doubled in the past year, part of a remarkable turnaround that’s also a win for the private equity investor that set out to repeat one of its most successful bets. Boston-based Advent International Corp. first made a minority investment of $74 million in the activewear retailer in 2005, then rode a wave of popularity as consumers, led by affluent women, embraced the notion of athleisure. The retailer went public, and by 2009, Advent had sold all its shares, pocketing eight times its investment, according to people familiar with the situation. Then it came back with another investment in 2014. The $845 million deal happened after Lululemon founder Dennis “Chip” Wilson called Advent managing partner David Mussafer in 2013 looking for advice. The company’s growth…