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November 28 — December 4, 2016 | bloomberg.



“Why didn’t I tell
him to his face,
that this was
racist, and

He was my
direct superior” p42

“For any other “Putin’s a celebrity. Donald’s “I’m seeing people
a celebrity. … He’s thinking, That smile now, clients of mine,
purpose than guy’s a big dog. I’d rather be
where I didn’t even know
paperwork, I consider friends with him than one of these
weaklings like Jeb Bush. That’s just they had teeth. Everyone
myself an American” the way he thinks” I talk to is happy”
p25 p50 p32

Walmart taps blockchain 20 In China. It didn’t 28 IBM tries to be the ghostbusters of corporate hacking 29 Chewy (no. This at least shakes things up a bit.000 Dreamers leave their jobs 25 2 Technology If Elon builds it. And the oil The World Bank’s chief economist attacks the profession 13 industry is stable to the point of Europe braces for the next tremors from Italy 14 being boring.” Factories from everywhere set up shop in Russia 15 “Have you purposefully avoided Charlie Rose talks to Sebastian Mallaby about his Alan Greenspan bio 16 reading the story?” Companies/Industries “I’m just trying to stay positive. but can audiences stomach more politics? 62 What I Wear to Work: The global brand leader for W Hotels isn’t content with just one bracelet 63 How Did I Get Here? Daniel Lubetzky didn’t like his snacking options. right? Fire provides warmth.” Movers ▲ Weed floats on the NYSE ▼ Cooling Swiss watches and a warming North Pole 11 “The implications are generally good. Now we have Kind bars 64 . and Global Economics Lord knows it gets chilly this time of year. specifically the implications Bloomberg View Don’t bully central banks • The trouble with the president-elect’s ISIS plan 8 of accidents like the explosion in Alabama. Cover Trail November 28 — December 4. the crazies will come 27 Karhoo was said to have $250 million in the bank. not that one) adds an occasional oil painting to its online pet supplies 30 Innovation: A hybrid walker/wheelchair to put activity back into aging 31 Markets/Finance Hillary who? Wall Street and Donald are BFFs now 32 John Paulson’s bet on Fannie and Freddie suddenly looks really smart 33 London closes a door on Europe and opens one to the Chinese 34 Features Alabama Shakes What happens when America’s biggest pipeline explodes 36 Memo to HR: Compliance videos don’t stop sexual harassment 42 COVER AND COVER TRAIL: PHOTO ILLUSTRATION BY JUSTIN METZ King of K Street Paul Manafort never really went away 50 Etc. a spoonful of sugar makes the Champagne go down 21 Politics/Policy Even if Donald Trump wanted to give up his business interests. 2016 How the cover gets made ① Opening Remarks Trump’s trajectory may follow those of other elected autocrats 6 “The story is about the Colonial Pipeline. so it’s a quick and easy way to clear some land. How brands became obsessed with the color pink 55 Drinks: Eight cocktails for winter nights 58 Workplace: Skirt Club attracts women who want to network (and see where the night takes them) 60 Astrology: December provides an opportunity to rethink long-term goals 61 The Critic: Miss Sloane has a lot to like. it wouldn’t be easy 22 Obama-era regulators race for the finish line 24 Sizing up the impact if 740. Trees just take up valuable Modi tries to drain the swamp 12 space.” Take 350 designers with no one in charge—and presto!—another sale for Zara 18 To speed up food recalls.


Lloyd 32 Cohen. 51. 38 IBISWorld 44 Oblong Industries 29 IBM (IBM) 20. CHASTAIN: STEVE GRANITZ/GETTY IMAGES. Mark 30 30 Fidelity Investments 11 Mastercard (MA) 12. Andrew 51 11 Koch. Dmitry 51 Masueger. style. Bill 18 (AMZN) 11. Chuck 32 West.B. and e-mail address if available. Nathan 38 LeJeune. 20. Tom 24 China (601288:CH) 34 Group (CPG:PM) 22 Deal. Bell Construction 38 Schumer. 30 21 Cheers Cheney. Rowe Price 30 J Pershing Square Capital Management 33 Target (TGT) Tesla (TSLA) 11. Rafael 6 Holdings (600606:CH) 34 Nasdaq (NDAQ) 20 be disclosed. 51 Twitter (TWTR) Tyson Foods (TSN) 6 11 Kaczynski. George H. 27 CoinDesk 20 Glossier 56 Moody’s (MCO) 38 Letters to the Editor can be sent by e-mail. Narendra 12 businessweekreprints@theygsgroup. Henry 16 Quest Integrity 27 U+I Group (UAI:LN) 34 KKR (KKR) 11. Jaroslaw 6 QRS 4 Kind Kinder Morgan (KMI) 64 38 Qatar Investment Authority 34 UVW Kissinger. 32. and we reserve the right to edit for Bush. 14. Jared 6. Pablo 28 18 Berkowitz. Anthony Inkling 34 63 44 P Pantone Color Institute 56 49 Clarence Innovative Industrial Pascal. Ted Cuomo. Anthony Lee 38 Ailes. 24. and space. 44 Musk. Jefferies Group (LUK) 34 Pigalle 56 16. 32 Colonial Pipeline 38 Goldman Sachs (GS) 30. New York. Jenna 56 Skillsoft 44 Yellen. Arun 12 Thomas. 51 Credit Suisse (CS) 34 Greenspan. John 51 E-mail bwreader@bloomberg. Charles 25 Rokk Solutions 27 Visa (V) 20 A Bush. Brandt. Steven 32 Reprints/Permissions 800 290-5460 x100 or BlackRock (BLK) 30 Coca-Cola (KO) 21 Gates. 25. 8. Index People/Companies Grillo. Viktor 51 American Continental Group 33 Dr Pepper Snapple (DPS) 11 Lyons. Nicolás 6 B 62 Exokinetics Facebook (FB) 31 11 Mallaby. Amancio 18 Industrial & Commercial Bank of China (601398:CH) Ingham. 14 Citic Group 34 McCarthy. Claudia 21 Subscriptions 800 635-1200 Barrack. 32 Chewy. 64 13 Shell Pipeline (RDS/A) Shinawatra. 32. Bill 34 22. 22 Knopf 56 Renzi. 29 27 Jaitley. Garrett 31 Correa. 22 Samsung (005930:KS) 15 Walmart Stores (WMT) 11. David 51 Euromonitor International 21 Madden. NY 10022 Bell. Gretchen 11 49 Danler. Stephanie 56 L Savills (SVS:LN) Scaramucci. Jeb Butler. Paul Rove.. Jeff 22. Charlie 51 Clinton. 20 Barclays (BCS) 34 China Construction Firtash. Donnie 11 YouTube (GOOG) 30 Antonio. Oleg 51 LifeLock (LOCK) 11 Selexys Pharmaceuticals 11 Wine Intelligence 21 Al-Assad. Geneviève 60 Select Medical (SEM) 31 Willingham. 14. Amy 29 Thomas Properties (IIPR) 11 Paul. Bob 32 51 Lubetzky. Jurgen 11 Rentmeester. Edward 11 Prescott. 49. 11. Roger 44. Gavin Wells Fargo (WFC) 27 33 ADP (ADP) 29 Black. 33 Ishag. Paul 16 51 How to Contact Bai Brands Bank of America (BAC) 11 12 Jessica Chastain Fannie Mae Farley. THOMAS: COLLECTION OF THE SUPREME COURT OF THE UNITED STATES Petco 30 J. 34 Fox News (FOXA) 44. Angela 38 11 E-mail bwkcustserv@cdsfulfillment. Matt 44 Axelrod. Jonathan 62 T. Thomas 13 Walt Disney (DIS) 56 Ackman. Rand 24 Inspired eLearning 44 Paulson & Co. Donald 6. (NWSA) 25 Sony Pictures 36 Nike (NKE) 22 Entertainment (SNE) 29 Protecting H Nordstrom (JWN) Northrop Grumman (NOC) 44 24 Space Exploration Technologies 27 the river H&M (HMB:SS) 18 Novartis (NVS) 11 Steinhafel. Matteo 14 Vadon. Tom 11 NPD Group 20 Stone. Gina 24 Fax 212 617-9065 Subscription Service Berlusconi. fax. Silvio 6. Yingluck 6 Xi Jinping 21 American Apparel 18 Moët Hennessy (MC:FP) 21 Vuitton (MC:FP) 21 Singh. They should include address. Roger 51 HR Learning Center 44 NYSE (ICE) 11 Symantec (SYMC) 11 HSBC (HSBC) 12 O I Obama. John 62 EuropaCorp (ECP:FP) 62 Maduro. Jack 62 C Kushner. Joe 29 21st Century Fox (FOXA) 44 K Putin. IA 50037-0528 Bernanke. Breitbart News 6 Colony Capital (CLNY) 51 Google (GOOG) 44 phone number(s). 49 McCain. Ben BHP Billiton (BHP) 16 20 Citigroup (C) Clinton. James Common Projects 51 56 Gramm. Brookfield Property Partners (BPY) 34 Comey. Chris 31 Mars 15 Editorial 212 617-8120 Ad Sales 212 617-2900 Bannon.Crew 56 PetSmart 30 Trump. Theresa 8 Address 731 Lexington Ave. Robert Jr. Rodrigo 6 Smith. Bashar 8 Chastain. Edward 13 Trump. 51 Johnson. Dick 21 51 Development Specialists Dole. Bruce 11 Eurasian Development Bank 15 MacInnis. Beppe 14 Netflix (NFLX) 44 SolarCity 27 Gucci (KER:FP) 56 News Corp. Kanye 11 Agricultural Bank of Century Properties DCI Group 33 Le Creuset 56 Schwarzenegger. Apple (AAPL) 22 44 Emtrain Erdogan. Bruce 33 Chipotle Mexican Grill (CMG) 20 Freddie Mac 33 McCarthy. Gregg 29 Hayes. Bill Merkel. Thaksin 38 6 XYZ American Airlines (AAL) 38 Chevron (CVX) 44 Domaine Chandon (Ningxia) LVMH Moët Hennessy-Louis Shinawatra. Janet 8. 16 Blankfein. 20 ABX Air (ATSG) 11 DEF Sargent. Marlien 56 UBS (UBS) 18. Abigail 11 Pope Francis 11 Trump. Melania 56 JPMorgan Chase (JPM) 32. Larry 38 China Investment Corp. Anthony 34 32 Wax. 49 Chanel 56 Deripaska. Barack 22. 29 Off-White 56 Ikea 15 Opimas 32 Inditex 18 Ortega. Daniel Lucas. Ryan 30 General Electric (GE) 11 ModSquad 28 Boeing (BA) 25. 51 T Perera. Mike 33 33. 44 Primark (ABF:LN) 18 Trump Organization 22 Provost. 38. Boone. Kevin 24 PO Box 37528. Clarence 49 BUTLER: PHOTOGRAPH BY CHRISTOPHER GREGORY FOR BLOOMBERG BUSINESSWEEK.E. Jimmy 22 Day. 56 Gap (GPS) 18 Mnuchin. Elon 27 or regular mail. 51 Alibaba (BABA) Amazon. Sophia 56 Duterte. Daniel Isla. William Acne Studios 33 56 Calsonic Kansei (7248:JP) Carlson. David Koch Industries 25 38 Romer.W. Octavio 32 Marriott International (MAR) 25 Bloomberg Businessweek Bank of China (601988:CH) 34 Fawcett. Alan 16 NBC (CMCSA) 32 sense. Recep Tayyip 44 6 M Société Générale (GLE:FP) 18 Zulily (QVCA) 30 Arena. 24. Michael 30 L. Arnold 44 Wheeler. Karl 13 51 Volkswagen (VOW:GR) 15 Vornado Realty Trust (VNO) 22 ABP London 34 CVS (CVS) 11 Kushner Companies 22 Sabra Dipping 11 W Hotels 63 Abramoff. Ivanka 22 Johnson. 38 Renaissance Capital 15 Uber 28 Klinsmann. Jose E. 25. David 51 38 Cruz. Richard 33 32 Marenzi. 49 G McKibben. Jessica 62 Deutsche Bank (DB) 22 Lockheed Martin (LMT) 27 Sessions. 8. John Pence. Hillary 32. Porush 12 Yanukovych. Sebastian Manafort. Bill Jr. Steve 6. Phil Greenland 51 N Connections with the subject of the letter should Brown. Tom 51 Bank (601939:CH) 34 Founders Fund 31 May. Vladimir 6. .


they’ve built personality Trump seems likely to take the same cults greater than exist in most far­right approach to the media. who and for almost a decade his posturing dominates Poland’s current ruling Law against the Italian media seemed to be and Justice Party. popular. look to the multicandidate races. media and ensure favorable coverage. Vladimir Putin has Many of these elected autocrats used his network of business connec­ had little or no government experi­ tions to virtually control the broadcast ence before winning national elections. and so it’s less to policy orthodoxies than poli­ impossible to know how he might govern. Steve Bannon. and Italy vote. and now Trump took advan­ state media for President Trump. it’s better to study the media.) They’re indeed deeply devoted paign rally. such as former Thai Prime Berlusconi reveled in attacking the few Minister Thaksin Shinawatra. Opening Remarks In the wake of Donald Trump’s to themselves and their stunning electoral victory. and foreign publications) that criticized Ecuadorean President Rafael Correa.S. that his presidency has virtually no And in office. his successors there ideas. could well turn the site into a kind of For the templates of his Duterte. with the rise of elected and Thaksin used their riches to pur­ autocrats—legitimately elected leaders chase major media outlets—the former who then undermine democratic insti­ had taken control of much of Italian tutions and culture—a major reason private television by the time he was for freedom’s ebb. It wouldn’t be unthinkable . they usually conform precedent in U. These elected auto­ first elected in 1994—or had their crats include people on the left of the friends buy up important newspapers. spectrum. they further undermine the the past decade—and touched richer traditional media. has mixed a cedent in modern democracy if you leftist economic policy. To rural development and land reform. often winning more aggressively. His senior as much on the power of their own cha­ strategist. Berlusconi and Jaroslaw Kaczynski. Berlusconi the late 2000s. Instead. be sure. history. using alternative 6 countries such as Italy. Most won elections not buy networks and sites. ticians with traditional backgrounds. even if he will European parties. (Leaders such as Berlusconi. apparently believing his approach as well as right­leaning leaders such won him more supporters than it cost as former Italian Prime Minister Silvio him. him. However. Like Trump. He sued the Economist for libel. But What else do the elected autocrats most of the hard­right parties in Europe have in common? They usually win haven’t yet won control of a govern­ elections in part by dominating the ment. sometimes by buying media slew of elected autocracies that have outlets or having allies who do so. for instance. which includes look for examples outside America. while demonizing the experience of Thailand. In taken over developing nations during office. Hungary. Trump isn’t without pre­ Duterte. According to the monitoring sively stoking public antagonism at By Joshua Kurlantzick group Freedom House. ful European hard­right parties. many images. democracy has elites to blunt the power of reporting been on the decline worldwide since on their administrations. making their administrations American political analysts are arguing reliant on their own personal influence. He has tage of complex political systems and openly mused about deploying libel laws presidency. some of his populist mantras with a harsh and conservative antidrug echo those of the increasingly power­ crackdown. Philippine Italian newspapers (along with many President Rodrigo Duter te. In Russia. and forms of communication and aggres­ Poland. previously risma as on any set of coherent policy ran Breitbart News. with less than 50 percent of the popular mainstream press at nearly every cam­ the Philippines.

S. George W. The personalization of power is at the heart of the elected autocrat’s success—and failure . <BW> also seeding the police and armed forces with family members and close Kurlantzick is author of the forthcoming friends. have difficulty building President Recep Tayyip Erdogan has In office. they make graft much ruption charges. elected from worrying about what will happen seems to be pursuing au to c rat s a l s o o f te n when he’s no longer around. Berlusconi notoriously in 2008. she proved an inef­ public. perhaps even family That said. meanwhile. Although she won an mix fiction with fact cronies to high office. After serving as trations. The country hasn’t Thai civil service and replaced many yet recovered from the nine years he senior officials with his allies. Thaksin fled Thailand using Twitter to delegitimize more likely. (Thaksin was deposed by a A Great Place to Have a War: America coup in 2006. a former speechwriter for As the elected autocrats age. seen the rewriting of Russian history will “enable systematic looting & and the construction of monuments disable oversight. purged the esteemed legal institutions. Yingluck. in fact. with unqualified family members and President Nicolás Maduro. while at Putin seems unable to imagine a future the same time having power over his Russia without himself. in part because Thaksin to confuse the to revamp the legal system to protect openly backed her. David Frum of when and if he finally exits the scene. leaving a void businesses (page 22). By surrounding themselves a weak successor. before another coup in 2014. Frum wrote on Twitter. And to be extremely influential. the civil service. beleaguered current dedicated to promoting the president. military bureau­ Most struggle to The cults of personality that elected crac y. could continue sycophants. their countries struggle 7 continuity across presidential adminis­ to return to normal. elected auto­ lasting movements overseen the construction of a lavish. when they apolitical and which normally provide exit politics. Trump would vocally attack judges who decided against his administration or try to stack the U. who first took with slower growth and far weaker office in 2001. as president. In Turkey. elected autocrats’ extreme they’re so fearful of delegating power. Putin has over­ Trump. Department of Justice with allies whose primary qualification is loyalty. and himself. It’s not hard to imagine that. while spent in office. back and won multiple elections. Berlusconi left Italy professionalism. Ottomanesque palace for himself. In recent years. Jared Kushner—are expected being deposed in a May 2014 coup. crats try to slowly suffocate beyond themselves. autocrats have created often don’t networks that are supposed to be in part because survive them. members. he was ultimately convicted fective political operator and was beset of tax fraud. appointed former showgirls and other sister.S. has already suggested they also need to make greater and that the Trump administration could greater efforts to stoke their cults of per­ be the least ethical in U. the Atlantic. Despite his efforts election in 2011. leaving his party to his younger the mainstream media. late President Hugo Chávez took similar measures with the civil service and state­run companies. while in Italy Berlusconi repeatedly attacked the judi­ cial system and oversaw the passage of multiple laws designed to shield himself and his empire from criminal pros­ ecution. Bush. and other government name successors. sonality. history. Thaksin.” across Russia designed to bolster his promote him­ Because of their person­ personality cult and distract Russians self—a strategy he alization of power. They substitute clientelism for prime minister. Facing cor­ Trump. to purchase a major television personalization of power is often their Chávez died in 2013 and left his party to network or set up a new one essentially downfall.) In Venezuela. since his election. Ultimately. Pro­Thaksin parties came in Laos and the Birth of a Military CIA.for Trump allies. Trump’s children—and his by scandal and street protests before son­in­law.

Unlike the current mandates. Iran. The line would be crossed. He has hinted. First. the group in Syria by sending in a significant number of U. Donald Trump has frequently spoken of having a “foolproof ” went too far in his repeated criticism of Federal Reserve Chair plan for a “total victory” over Islamic State. leaving the Fed and its counter.S. quickly wiping out the terrorists. sharp recession. As for Mosul. Hezbollah. banks were right to adopt these methods—governments failed Trump has made much of his negotiating skills and his to use fiscal policy effectively.S. is how he likes to do business. after all. Such decisions are hardly apolitical. an al-Qaeda ally. however.” Disagreement is OK. A coordination plan with Russia and Syria would be to Fed policy for the past decade. of supporting them without inciting a military response from quences. or with gentler necessary. It’s basically apolitical. This would leave the questions. Changes in interest rates hurt some and help others. interest rates?) Third. or else. Russia. for one. go to Bloombergview. like running a utility.S. (Would anybody want to put Congress in charge of players in the war: the Syrian regime. but moving tens of thousands of combat troops and pressure applied for longer. and create the potential for jeopardy? Does it cross a line when a politician—especially a chaos that could give rise to an Islamic State successor. In effect. Congress hears testimony and asks of resolving the Syrian political conflict. Theresa May’s comments on the Bank of England have fallen well short of that line.S. A government can criticize a central bank’s Central Banks choices without disputing that those choices are the bank’s to Disagreements are part of the way things make. Kurds backed by the U. but he’s refused Janet Yellen. “Do as we tell you. which fears the establishment of a Kurdish state across And central banks sometimes have to decide how quickly to its southern border. Turkey. both to the test. Trump’s interventions are more worrying. Trump’s Too-Tidy Plan To Defeat Islamic State His in-and-out military solution will not be quick. Intimidation is not. terrorist groups including the al-Nusra Front. The first two reasons remain as persuasive as ever. (See Zimbabwe. Is this now in people there to a miserable fate. Fed governors are appointed by the president and administration. forces is probably curb inflation—with a short.K. President-elect Donald Trump. though.. In the U. He’s also told the Pentagon that it will have central bank might be tempted to finance unaffordable budget 30 days from his inauguration to send him a proposal and deficits by printing money. Sending in more U. eliminates Islamic ILLUSTRATION BY TOMI UM politically accountable in various ways. He needs to learn that the Fed is one institution he shouldn’t try to bully. The case for leaving the banks alone to conduct monetary forces. The third.” required. The Kurds have proved far and away the most effective however. Resorting to unconventional essential. there’s no changing a war plan that measures was necessary after the recent recession. and may leave the area in greater chaos The long-cherished principle of independence for central banks 8 seems to be under attack around the world.) Second. At the same time. fighting force on the U.S. if a govern- ment said. The central has shown consistent progress. Turkey. and cal thing. <BW> . He’s accused Yellen of failing to do her job—and intimidation. Syrian Arab rebels. Trump seems uninterested in the longer project confirmed by the Senate. to provide said the fight to retake the Iraqi city of Mosul from the ter- economic stability. their support personnel and equipment would take weeks or That should be obvious to anyone who’s been paying attention months. They have operating State and then leaves the scene entirely. It has real-world conse. Bloomberg To read Justin Fox on the jobs boom in View Dallas and Albert Hunt on election myths that need to die. Putin and Syrian President Bashar al-Assad may Independence isn’t all or nothing. then bringing the policy rests on three points.. That principle is worth defending: finance minister or a head of government—directly criticizes It’s Wrong to Bully the central bank’s decisions? It depends. side. monetary policy done right is a techni. That’s sufficient independence to deliver the essential work—intimidation is not benefits of noninflationary public finance and stable financial conditions. a government that controls a troops home. say. relationship with Vladimir Putin. central banks can’t expect to to divulge it. a steady hand on the monetary controls is rorists was “a disaster.S. This would be the time to put parts no choice. that he intends to fight be above criticism or beyond politics. and Trump has to find a way Monetary policy isn’t purely technical. Iraq. Central banks are already be keen to work out a deal in which the U. was always suspect—and never more so than now. and that demands some insulation from day-to-day The problem is that this tidy plan ignores the multitude of politics. a balance has been struck.



in the Catholic trust focused package. which makes a line at the firm. according tour. approaches. a major exhaustion after ▼ President-elect Donald Trump paid $25 million to settle fraud charges evidence of aloe client against Trump University. $4.000 students will share the settlement. market Swiss watch exports plunged more in sales for the for aloe products grew October than they have 21 remaining shows. MERKEL: KRISZTIAN BOCSI/BLOOMBERG. Smith will collect a golden parachute worth at least $24 million. adding coconut sold its Connecticut identity protection to its water and ownership.5b growing weed. hummus after it of the men’s national fifth of its market value. among on the $7 billion other things. Soccer dismissed Jurgen The announcement resulted almost immediately in the normal.5m “antioxidant- infused” fruit drinks. 31 ▼ Temperatures at $146 million. It replaced him with Bruce Arena. Innovative to Sacred Heart ▲ Pope Francis extended indefinitely the power $2. Edward. of priests to forgive $175 million during its IPO to become moving its C-suite Pharmaceuticals. air travelers during Downs Thanksgiving week rose 2. Bai expects the first public to Boston for abortion. Just seven ▲ Weed hits the NYSE. a 36-year after the squad of its plants. a Major League Soccer coach “If there is a move to deport who held the position from 1998 to 2006. top job. who’s been at Tyson for 29 years. ▲ The Dow Jones industrial average rose to who′s been in a record high as energy companies benefited By Kyle Stock office since from an oil rally and investors anticipated Trump 2005. 2000 ▲ Abigail Johnson will succeed would seek a her father. headquarters for security technology $31. ▲ German Movers Chancellor Angela Merkel. 11 $25m The expected number of (very grumpy) U. immigrants. debut him as CEO 1500 to buy Bai Brands. term limits Symantec acquires including still under ▲ General Electric family on its LifeLock.3m sold at Walmart. Church.S. and will be replaced by President the North Pole are Tom Hayes. lost two World Cup qualifying matches.3b Industrial Properties aims to raise University. FRANCIS: LISA MAREE WILLIAMS/GETTY IMAGES Pilots for cargo carrier ▼ Rapper Kanye Target. Some 7. 49 percent of which is yet. Germany doesn’t have 1/2016 11/2016 $75m of healthy drinks.S.5 percent ▼ Store-branded aloe vera gel 27. GE is Novartis buys Selexys years old. Meanwhile. The fill its new London office bishops were 500 company will use $30 million of the only the proceeds to officials to buy a New York KKR buys auto parts Ups grant such warehouse for maker Calsonic Kansei absolution. of Fidelity Investments after he Merkel expects retires. announcing a new state police unit dedicated to investigating hate crimes . Facebook staffs up to industry. then I say start with me. ILLUSTRATIONS BY OSCAR BOLTON GREEN. to –16% will step down on Dec.7b replaced Beasts has a magical her toughest U. which is known for treating $425 million real estate lower taxes and a considered a “grave sin” sickle-cell disease in sales next $665m investment $145 million incentive year.” ▼ New York Governor Andrew Cuomo. He lost which is subject to court approval. marijuana Typically. 250 canceling his concert vera. the U. plaintiffs’ attorneys waived their fees. delaying the formation of pack ice as winter 57 varieties of its –11% Klinsmann as coach company losing about one. to a lab hired $30m in potential ticket ▼ Tyson Foods CEO Donnie by Bloomberg News. and ABX Air went on strike West was at a tricky time for hospitalized for CVS showed no Amazon. Smith. found listeria at one team. 1750 ▲ Dr Pepper Snapple She’s next year’s The Harry Potter agreed to spend already campaign to be prequel Fantastic $1. 36F warmer than ▼ Sabra Dipping recalled A fat flock helped bring turkey prices down this year ▼ U. as chairman fourth term. said she tax cuts.S. in seven years 11 percent this year.S.

which account for Modi’s action is aimed squarely at public spending. Tax officials will get reports on cash supply. With so much As cash disappears. “There is sufficient supply of notes. 17 Economics November 28 — December 4. more than 85 percent of the money the cash-driven shadow economy. hidden. 8 by statement.” economist Shilan Shah. Those busi. “Members of the public are ernments have had difficulty funding announcing that 500-rupee ($7. Indian gov- stunned the country on Nov.” says Capital Economics to risk detection accept large losses. often avoid taxes by paying cash for estimates that as much as 5 trillion On Nov. The announcement of gross domestic product. Fewer and compare those deposits with set off days of turmoil as millions of than 5 percent of all Indians file income disclosures. The authorities Indians tried to swap their suddenly tax returns. There are no buyers” India Prime Minister Narendra Modi the Reserve Bank of India said in a money going untaxed. The government older ones in smaller denominations. with property and jewelry. Wealthy Indians of the tax owed. Queueing up to Global deposit and exchange discontinued currency at a bank on Nov. so does .30) and requested not to panic. to reassure the nation nesses “are where black money is unredeemed as tax evaders unwilling that the situation was under control. out of 15 trillion rupees will remain little effect.” infrastructure projects and other 1.000 rupees or declare their income. Many shop owners use can demand a tax payment and worthless old notes for hard-to-find cash for their transactions and don’t impose a penalty equal to 200 percent new notes of 500 and 2. 2016 12 India’s Cash-Canceling Experiment ▶▶Modi is installing an almost cashless system that will expand banks’ deposits ▶▶“We are sitting almost idle. 17 the central bank tried.000 rupees immediately.000-rupee notes. would cease to be legal tender which accounts for about 25 percent deposits in excess of 250.

chases of property investors make in than three decades.” blah … and so … P is true” Delhi. 18 Romer targets one of the basic . landed like a FROM LEFT: EPA/ALAMY. inflationary over the past few years. notes to buy seeds for winter-sown law. 20 pages. aviation. paper to celebrate advances in the shadow economy since he took office ernment. curb tax evasion. they’re spend their days playing cards. economy at all levels. with mixed results. Paul Romer hadn’t planned to trash 13 have any change. cash by as much as 2 percent of GDP. unrealistic. For three decades. Deposits swelled by 5. The central ductivity stalled? the declaration of 652. unable better positioned to spur economic How Rational Are to operate their vehicles because growth by making more loans.” In over a year. Modi this year eased restric. Archana and vegetable market. Rational Expectations? transport company owners can’t get Modi’s currency reform may also the cash to buy fuel or pay the drivers lead to an increase in the use of elec- ▶ The World Bank’s chief economist their 100-rupee daily food allowance. or rate to its lowest point in five years. “All of that will def. For 5. 10 to Nov. 8 announcement. The prime questions a macroeconomic pillar “There’s no work. The prime nomic growth. “more 0. 16 in preserving reputations than testing report that the economy could lose their theories against reality.” he says. better rainfall this tion of the past cycle: Why has pro- that ended in September prompted year has helped farmers.7 to 1 percentage point of growth committed to friends than facts. Chaudhary.. accusing a cohort of goals in its drive to improve business economists of being more interested conditions. “For more tion.” he says. “It’s going to be very between.” it begins. GURPREET SINGH/HINDUSTAN TIMES/GETTY IMAGES economic setback from demonetiza. Russia’s the place for factories 15 such as refrigerators plenty more targets for his campaign and washing machines. 13 that the gov. and economic 25 billion rupees in tax—20 rupees pressure has subsided. In the months before taking over crops from state-owned stores.” says Sundar Singh. Finance Minister Arun Economic Theory empty and trucks stranded. The attack on underground The bottom line Modi is trying to end tax evasion the now-banned notes. and Pratik Parija of the buying and selling involves lived. minister’s action “is a critical step in a 38-year-old truck driver from Aligarh. To ease some of the In addition to legislative victories macroeconomics as a math-obsessed pain. gas stations are in deposits. assume B . 21 such as the approval of long-delayed pseudoscience. transactions have nearly stopped. There are has gone backwards.” says Ashok Kumar has been a trader at expensive apparel. said in a statement. used by most macroeconomists 500 rupees per capita. in October. Capital Economics’ Shah.7 percent this year. A separate amnesty years of drought. because he doesn’t for South Asia. Until the Nov. economic activity. Cheap ruble. tions on foreign investment in indus. against the underground economy. The Trouble Modi is risking a temporary ernment will take more steps to With Macroeconomics. Mastercard’s president phone. blah blah blah . An offer free of major scandals. he offers a wicked parody of disruptive. including pur. and the govern. Unlike the previous gov. An Italian referendum Charlie Rose talks with may foretell Europe’s Greenspan biographer future 14 Sebastian Mallaby 16 Cheap labor. as the World Bank’s chief economist Modi has been trying to follow tries like pharmaceuticals. Einhorn. Lynch. and so Singapore. Or infuriate countless said farmers could use old 500-rupee tax reform and a new bankruptcy colleagues. Romer’s paper. he critiques the state of ment had achieved some important his profession. and after two models haven’t answered a core ques- per person. Kumar says. too: Thanks Global growth has been disappointing year led to declarations of only about to low global oil prices. positioning India to be a leader in the ▶ “Assume A.” postpone spending on big-ticket items from Nov.” says Diksha Gera.. Modi said on Nov. tronic payment systems. of amnesty for repatriated funds last minister has been lucky. Romer set out to write a through on promises to attack the and defense..1 tril- “There are no buyers. On Highway 24 between New Delhi Because banks are getting a surge and the town of Dadri. Since Modi’s money will increase bank deposits and impose a tax-compliant. above-board announcement. who expects consumers to Increase in rupee deposits at Indian banks we have proven that P is true. 18. Drivers Jaitley said on Nov. an a modern macro argument: “Assume analyst with Bloomberg Intelligence in A. where much Gera says the pain may be short.5 billion bank has cut the benchmark interest He found the mathematical models rupees—about 0. 10 to Nov.1t 7. with Vrishti Beniwal. �Bruce Azadpur Mandi. HSBC said in a Nov. his administration has been understanding of what drives eco- in 2014.5 percent of GDP.” she says. 18.” lion rupees from Nov. He soon lost heart. according to Bank of America Merrill “We are sitting almost idle. Delhi’s largest fruit initely take a hit. as well as discretionary purchases like “I don’t think it will stop here. macroeconomics GDP was on track to increase the name of a third party. the Finance Ministry on Nov.. assume B … blah blah a city about 90 miles southeast of global cashless and digital economy. “I can’t even charge my cell Porush Singh. grenade among his peers. It just sort of happened.

block legislation. But those same consumers. we’ll have to deal with pockets. By the 1970s. Marc Lazar. He thinks that’s heard that line before. so the ballot has the “real business cycle. intellectual architects of rational The ballot could indicate Berlusconi expectations. “gives me the shivers.” says Lorenzo Guerini.” inflation. considered part of the Establishment.. virulent denunciations by insurgents planners with the unrealistic conclusion alded armed groups in the rest of on everything from poor economic that the economy can be moved along Europe. dep- outcome of ballots across Europe to take account of policy shifts. should be asking. As governments and main- says Romer. “It registers tiny doesn’t offer a new framework to political tremors that then replace the one he says has failed. is that it rules out policy ’70s. just does not seem Prime Minister Matteo Renzi has theory of rational expectations—the like a constructive way to proceed. In the 1920s. Thomas over arcane details of Italian Sargent. take a look at Italy: For and Germany face presidential or par- that taxes will have to rise to pay for the the past century. stream parties struggle to counter the or people as agents of change. a professor Allies of the three have been more at Sciences Po University outspoken and point out that Romer in Paris. “What kind lionaire with hair issues? Check out nationalists and populists. ‘The car is broken. Keynes’s ing to make difficult choices. Lucas and a seismograph. there’s a big chance of further gains by he writes. 4 vote hints at the and businesses change their behavior reforms. So they hang on to their cash barometer of the continent’s mood. and Edward Prescott. the parliamentary procedure. the government can spend ▶ The country is “a breeding ground Party. an economics professor at tutional reform aimed at shrinking the average correctly predict the future and the University of Minnesota. the What actually leads to an improvement ditional parties with TV slogans. Romer’s senate to make Italy more governable. and reining in their power to action to fix the deep shortfall in for straying from science and rigorous testing. saged Hitler and the Nazis. didn’t account for how consumers “This government was born to enact ▶ Italy’s Dec. Italy’s extreme left. That debate goes back at least to �Andrew Mayeda and Craig Torres eliminating their ability to bring down John Maynard Keynes. year. Romer is partic. and saying rest of the world as bigger we’ll figure out what we’ll build on its shocks. That’s why Europe will closely ularly critical of a trio of Nobel prize watch a Dec. Global Economics tenets of mainstream economics. cutting ment action can’t fix big problems.” says staked his future on the vote. the the consequences. Next year of things influence what people do? how Silvio Berlusconi destroyed tra. that he names names.” . dum on independence for the region of The problem with that worldview. a country run by a media-savvy bil.” theory goes.” Economists. Curious about the future of growth to the influx of immigrants. icies they spawned failed to prevent so many voters see the referendum that decade’s high unemployment and Politics as a chance to “drain the swamp. and One reason he’s ruffled feathers is garish displays of wealth. Mussolini’s fascism pre. For uty-secretary of Renzi’s Democratic example. the foundations later. “Italy is like people actually behave. And he’s threatened to theories of rational expectations and A Petri Dish of quit if it’s rejected. can see far into the future To get a sense of Europe’s politi.” says Renzi Prescott didn’t comment. make rational choices. ‘Romer’s a terrible lyzed the country for decades. it’s served as a liamentary elections in the coming handouts. He bristles: He says the referendum would hit the not only wrong but also may result in “I’m saying.’ And old guard of Italian politics that’s para- the misguided conclusion that govern. only by “external shocks. who thought the government with no-confidence The bottom line The World Bank’s chief economist policymakers needed to take bolder blasts the state of modern macroeconomic theory votes. because he couldn’t fix the car. “If Italians reject the most impor- more. Economists came up with the Italian-style.and right. European Commission’s in productivity in a factory?” anti-Establishment rhetoric. putting cash in consumers’ for democratic crises” tant changes. 4 referendum winners: Robert Lucas Jr. guy. Sargent says he hasn’t whether the populism read the paper but suggests that Romer sweeping the world (think may be out of touch with the ways Brexit and Trump) is rational-expectations economists have still ascendant or poised adapted their models to reflect how to abate. 14 and won’t be fooled: They’ll figure out cal weather. and Spain is expecting a referen- and render those policies less effective. France. the Netherlands.V. spread to Europe and the Grillo “Burning down the edifice.’ ” the number of senators from 315 to 100. Chari.” Populist Dissent become more of a plebiscite on Renzi They argued that Keynesian models himself than on the new senate rules. In the Catalonia. everyone’s saying. leaving wing terrorist movements her. Austria. Although Renzi swept demand that was prolonging the Great into office in 2014 as a fresh face pledg- Depression.” Marco Buti. a consti- idea that consumers and businesses on V. he’s now ideas were mainstream—but the pol.

In fiery speeches peppered Labor Costs be an exaggeration to say that Russia with expletives. forcing in-Russia washing machines. Most of the Edited by Christopher Power.” said the World Bank in an April has become a petri dish for disruptive competitive” with China’s for the first report on Russia’s export competi- trends. he’s today mainly because of the currency competitive. and giving other national and metal beds to China. decline has hinged on the ruble. advantage in international markets. In September. Global Economics director general for economic and fragility makes it a breeding ground the past two years against the dollar. created a system of online owned Wrigley inaugurated a voting for its leaders and united an $7. Belarus. where. some multinationals to boost manufacturing there. While constitu. may become the region’s factory. head 2014 2015 2016 “Time and by amping up his own populist rheto. Companies industrial output spokeswoman since World War II.S. duced vehicles Renzi says the referendum will make “Russian suppliers are competitive “aren’t yet globally Italy more stable. Mars- Grillo. GETTY IMAGES (2). That provides insurgents with a time since the czarist era ended a tiveness. and possibly much more. almost 30 percent since 2011. and 0. some of it for export. and Cristina Lindblad “Italy’s which is down almost 40 percent in Bloomberg. ing to the Higher School of Economics. countries. PHOTO ILLUSTRATION BY 731: PHOTOS: AP PHOTO (1).4% Russian unit. searching for a manufacturing hub to 2011. Philips. are taking advantage -3. Matthew University. “For firms to Renzi entirely from the stage. rency and falling wages. Eastern Europe. exports from their Russian factories. The nonparty. Sweden’s Ikea. The combination of the country’s they would need to expand and change 15 With parliamentary rules that grant worst currency crisis since 1998 and their output capacity and invest in both seats in the legislature to parties with a slide in real wages has resulted in their products and production pro- as little as 3 percent of the vote.” says Magnus Benon. capitalize on their current relative price new elections that could give it a shot chewing gum. was undeniably populist. “Its With wages rising across much of speech in Rome.7 million facility in St. says Yaroslav Lissovolik. would curtail checks and balances Mars of the U. led by a barometer of political trends.” �Olga Tanas and Ilya Giovanni monthly salary in Russia has dropped Khrennikov. who served as ments aren’t quelled or drowned ingly appealing to multinationals prime minister three times from 1994 out as quickly as they might be else. Samsung with the emergence of the Five Star started shipping washing machines The bottom line Europe is watching Italy. of purchasing operations for Ikea in investment are PROJECTED ric. Russia.4% says the compa- designed to prevent the advent of a per. which has started exporting necessary for exports of Russian- budget rules of the European upholstery products to Scandinavia manufactured products to become a Union. Grillo and his surro. The movement sees opportunity provided by a weaker cur- the referendum as a way to bump Coming soon to a store near you: Made. “I don’t think trend. the average to Europe.” gates give a voice to individuals with For Manufacturers. with Andrey Lemeshko Orsina. including South Korea’s Samsung for Volkswagen’s tionalists argue the proposed reforms Electronics. France. 17 for democratic crises. financial affairs. including a economist for Russia at Renaissance a harbinger of things $62 million facility in the Novgorod in Moscow. most Russian manufac- with Renzi’s party as the biggest force region’s factory” turers aren’t in a position to exploit the in Italian politics. a former leaders the cold shoulder. the Moscow- gripes ranging from unemployment Russia Is Now a Bargain based chief economist at the Eurasian and the euro to the dangers of climate Development Bank. sofas. accord. a Movement.” says Oleg Kouzmin.” he says. In the meantime.6% 0. gum. unlikely mix of disgruntled voters where it produces Juicy Fruit chewing from all sides of the political spec. Rome’s Luiss. Russia to carve out a niche in exports Europe. of the cheaper labor costs to increase ny’s locally pro- ilously strong leader like Mussolini. Petersburg. whose members change and the need for better rela. weak institutions mean new move.” taking a page from Five Star’s playbook situation. according to investment Russia’s Kostyukovich. spurring ernment at republics such as Kazakhstan. at forming a national government. as Austria.” �Alessandra Migliaccio and from which they can supply the entire the trend gathered strength in 2009 John Follain continent. taking The bottom line The average salary in Russia has fessor of gov. DATA: MINISTRY OF ENERGY OF THE RUSSIAN FEDERATION ▶ The ruble’s collapse has dragged tions with Vladimir Putin’s Russia. salaries below levels in China Five Star has surged to win City Hall in While industrial output is gradually Rome and Turin and is neck and neck ▶ The nation “may become the rebounding. Ikea has central bank adviser who’s now chief That could well be five factories in Russia. Kyrgyzstan. it close to incomes in other ex-Soviet dropped almost 30 percent since 2011. Russia looks increas- While Berlusconi. railing against the bureaucrats and Russia. Natalia megaphone to air their grievances—and century ago. says At $558 last year. said in a Nov. are Armenia. Italy salaries that have become “broadly cesses. a pro. That same month. and Tajikistan. “But there are grounds for to come across region that came online in September. Kazakhstan.” he says. a has given the country 63 governments bank Renaissance Capital. Guido Carli a university in Moscow. the from its Kaluga factory to 20 European former TV comedian named Beppe Netherlands. “It won’t trum. this is . and Germany brace for elections.

they rate Greenspan’s Fed tenure? The standard line is that his inflation policy—his interest rates—was great. I found them in the learned all the dark arts of politics pretty early on. waiting for him to go to dinner. and he would What did you learn about his ties to Ayn have these fights with Henry Kissinger. When I read them. you had to be able to take on public opinion. By the end. “Your Did he relish his position in Washington? 401(k) is worth more than it should be.. they’d go to earnest conferences and discuss productivity. by disrupting no derivatives. all the economists to the press to discredit would go to the bar except for one. His reputation He essentially established central bank status and imprisoned him. and the person closest to Libertarian who said. “We want to persuade is pretty hot. at a time when the economy the center of it was Greenspan. Yellen will through his computer at work.  … He learned all the dark arts of politics pretty early on” 16 Will Donald Trump and Janet Yellen be able to coexist? Trump’s economic program. we created the modern an Ayn Rand friend. People would say. And he got into the campaign. Because I’ve looked into the politics of that regulation. . At the end. put them come after the Fed. He wants history of modern finance. He had the 300-page transcript of Greenspan’s speeches.” You couldn’t make up the irony. He institution COURTESY COUNCIL ON FOREIGN RELATIONS later joined the Ford White House. The economics at all. and 10 p. Greenspan was doing the early ’90s.m. He’d go to a party. but he lost when he was up A lot of people read books like Atlas Shrugged Greenspan did in against Greenspan. and he’d seem ill at ease. Greenspan would leak stuff to when they’re 19 or 20. before the election.. If you ask the smartest people. And in those Watch Charlie Rose on Bloomberg TV Weeknights at 7 p. And he wants rates didn’t move much because to restrict supply by having they were capped. adversaries. It’s going ’68. an idea Ben Bernanke has taken issue with. He’d sneak in this in his 30s and 40s. ET speeches it says. how do Charlie Rose talks to. He was the maestro. and he gave this long at the weekend to rewrite the president’s speech series of speeches when he basically was Ayn because some adversary had written it. They were in Pat Buchanan’s basement.” He didn’t want to do that. He was Nixon’s speechwriter. “The creation of the Federal Reserve was an historic disaster. because there’d be a limousine outside with Barbara Walters inside. a new book on Alan Greenspan. There were Why did he join Nixon? zero immigrants. He joined to expand demand by having the Nixon campaign in the late ’60s. master of Rand as you wrote The Man Who Knew? in the way bureaucratic intrigue. 2. to have to raise extra because you see the man going from giving advice on of Trump. . I actually The author of The Man Who Knew. You had to say. If regulation isn’t going at the Fed. There was a paradox that Greenspan was extremely interest rates.. But to prick a bubble. He was the guy who aggregated all the local polls. There are other Greenspan books.” That was his first political document. think regulation in Washington is almost discusses the former Fed chairman’s role in the financial crisis impossible to get right. So I’m less critical of Greenspan on the regulatory side. “Why did he come?” “Greenspan would leak stuff In the ’70s. he’s talking about elect won’t like that. The crisis was baked in by the time he left. independence by fighting back against the politicians. and that’s why we had the subprime crisis. Fed was going to raise rates I found all the memos he wrote to Nixon in ’67. Over the next four He was brought in by decades. spin. spending on when the dollar didn’t fluctuate because it was tied to gold. a tax cut. and he’ll messaging. I think he did relish it. But Sebastian Mallaby the way he messed up was on financial regulations. He was frightened of going directly at people with a disagreement.9 percent Nixon to abolish the draft. What prompted you to do this one? I wanted to write a big sweep is very inflationary. The president- economic policy. to stop the bubble.m. though sometimes he disguised that because he was shy. but I’m therefore more critical on the You’ve made the argument that Greenspan’s personality affected his decisions monetary side.. then you need to use The notion that his psychological makeup has no relationship to his policy decisions isn’t very plausible. insofar as we have details. persuasive when it comes to one-on-one situations but was shy and diffident in groups. And all of this system. not growth in the last quarter. the press to discredit adversaries. because inflation was very stable. a trade deals. polling analysis. and came back with have to learn to defend her advice on how you tweak the Nixon message. Interest infrastructure. basement of a Rand fanatic living in the woods in Virginia. too. He Rand’s chief economist.


shirts. shipping fresh styles to stores twice a week. is a breakaway success while DATA COMPILED BY BLOOMBERG most global clothing retailers are strug- gling. fields opinions. Inditex powered ahead with an . and that partly explains why Inditex. Sweaters. In con- trast. Companies/ Zara designers at work in Arteixo. indicate such styles are popular. COURTESY INDITEX (2). *REVENUE FOR FISCAL YEAR THAT MOST CLOSELY ALIGNS WITH CALENDAR YEAR. American Apparel filed for ▶▶The world’s biggest fashion retailer is thriving as rivals falter bankruptcy in November for a second time. a menswear buyer. They finally agree on solid colors and traditional cuts for Europe and bold patterns for China. ▶▶“Everyone▶…▶is trying to replicate its design prowess” and profit is down at H&M. its parent company. and Primark. and suits are spread out on the white-tile floor. Every morning. H&M. Moscow. “I’m not sure about the bold patterns. and there’s little discernible hierarchy. Spain Industries November 28 — December 4. store managers. sales have fallen at Gap stores. As the team debates whether the collection is too plain or too daring. This international tribe of thirty- somethings is a big part of the success of Zara. 2016 Deep inside a sprawling glass-and- cement edifice the size of an airplane hangar in the Spanish town of Arteixo. where sales data ILLUSTRATION BY CAROLINE DAVID. but it’s new at the same time. and everyone has a say. 10 designers swarm around a model dressed in cropped gray trousers and a double-breasted navy blazer. “It’s classic.” says a woman from China. Guided by daily data feeds showing what’s selling and what’s stalling. and country directors in cities as far-flung as Taipei. Its 350 designers are given unparalleled independence in approving products and campaigns. Juan 18 Mendivil.” coun- ters a British woman. Others nod their assent or express doubt. the teams develop fashions for the coming weeks. it becomes clear no one is in charge. the brand that over the past four decades has grown from a single store in the Spanish city of La Coruña into the biggest fashion retailer on earth. Zara has no chief designer. and New York. while seamstresses in white labcoats stitch prototypes nearby. but the decision doesn’t rest with him. Zara’s culture isn’t as easily copied as the latest fashion trends. staff in Arteixo divine what’s popular by monitoring sales figures and thousands of comments from cus- tomers. dressed in white sneakers and a flowing skirt. Unlike rivals such as Gap.

the commercial team asked but he hasn’t retired.99 (about $102 at the works on the commercial team after a make their way across the ocean on time) generated so much buzz that two stint at Bershka. 19 Amancio Ortega. she says. On a half of the year. Massimo Dutti. Ortega hired Isla. while rivals’ orders slowly coat for £69. saying designers. Another concern is that Gap 0% times.9 billion ($22. 22 football fields. which analyst at UBS. It’s blockchain vs. Inditex has virtually no ad budget apart from social media marketing. “There isn’t a magic turnarounds. says Andy Hughes.” says Anne Critchlow. instead of churning out more identical Ortega remains one of the world’s Fast Fashion. rather than designing collections months in advance and “pushing” goods on shoppers with ads. Inditex posted the fast-fashion label for Zara. what we offer our custom. a adding stores at a slower pace. chairman and chief executive officer. but Zara still accounts for supply chain. as CEO in 2005. We are able to trying to repli. Isla says. Speedy Growth coats. 20 percent for most retail- rivals might figure out how to match 2004 2015 ers. who this year briefly but the gap engaging in a surpassed Bill Gates to become the might close. While analysts say H&M spends as much as 4 percent of sales on advertising. but cate its design agers sift through in the end. in Spain. While he can some. there €20. rainy November formula. design teams came up with dif- most secretive billionaires. ranging in price from $69 to $189. container ships. the data on what customers want has been augmented with infor- mation from online sales. fans created an Instagram account— times be seen walking his dog Pepe in @thatcoat—to document the craze. and Morocco that stantly tinkering. a retail 180% dominantly short lead time. Portugal. a pale-wood conference table in the Other Inditex brands such as Bershka.” says Pablo Isla. getting designs with new fabrics and cuts. leaving Isla Change in annual revenue* since 2004 ferent fabrics and prints using a similar to oversee Inditex. With Inditex’s sales Zara gives a greater level of newness to its almost doubling since 2009. that goes into designing each garment. When military a bespectacled former Banco Popular produces 60 percent of its merchan. 240% cut. highlighted with photos from rapid-fire shoots in 11 percent rise in revenue in the first Zara’s quick Arteixo. And he says analysts place too much company’s minimalist headquarters. With production nearby. a in the Zara women’s department. Inditex’s “Everyone in day. he still can quickly switch gears if weather or the designers to keep tweaking them comes to work most days. commercial man- react to data during the season.” “No one could space the size of Controlled by Spanish billionaire match Inditex. One concern for Zara is managing “The root of Inditex’s success is its pre- its growth. E. dise.2 billion) in sales last it doesn’t reflect the time and detail would be nothing. At 80.” growing.” Isla says. “Without the design.” information on ers is fashion. Those are fueled by twice-weekly releases of new designs on Zara’s website. jackets turned out to be big sellers this Español executive. Inditex autumn.” lively exchange world’s richest man before falling Isla rejects of ideas with back to second place. a network of factories This means the designers are con- two-thirds of sales. computers in a element to that. retail analyst at Société Générale. Small production . Isla is 120% collections. trating instead on a smaller number H&M 60% About two-thirds of Inditex’s prod- of flagship locations and its online ucts are generated under short lead business. and Pull & Bear are emphasis on Inditex’s much-vaunted “It’s not a formula. Since 2010. into stores in as little as two or three blue-and-white collarless women’s where his 32-year-old daughter Marta weeks. coli at Walmart 20 A sweet fix for a Champagne problem in China 21 Just as important is the way Inditex “pulls” ideas from consumers. the industry is analysts. But the town square of nearby La Coruña. concen. from 7. and “There are no stars. and there’s a human Hughes says. buyers. often sitting fashion trends change. In May.100 stores in 93 countries. sitting at year. vs. prowess.

Traditional offline merchants also con- tant attributes that would inform deci. the world’s Mexican Grill has suffered a year of them on shipping crates and pallets to largest retailer occasion.” A blockchain is a distrib- says.S. co-produced by IBM. is using blockchain’s ability Disease Control and Prevention. A blockchain database can also pulling a few tainted packages in a hold much more data than what retail- Retailing handful of locations and yanking all ers get today.” If the test is successful. It’s also expanding a service that lets consum- ers order groceries online and then go to a store for pickup. The data- in the first half of 2016—far outpaces its rivals’. health-care. requiring big suppliers to put Like most merchants. “If there’s an issue nies doing business with each would. the small- could speed recalls that enhanced traceability is good for est gain since 2009. reducing spoil- blockchain. The database E. DATA: EUROMONITOR INTERNATIONAL tify the product. “They don’t really have seasons the pallet but on each individ. break can cripple a business—Chipotle tion tags.S. Blockchain. this other—such as growers. retail ▶ The technology behind bitcoin have confidence. think of bitcoin. of wireless radio-frequency identifica- that’s been recalled. this gives sands of packages shipped to them an ability to analyst in London. Yiannis says. the digital currency more efficient at it. and who with an outbreak of China. and even get and its efficient supply chain.age and waste. year. and natural-resource industries.000 outbreaks of food. Companies/Industries runs mean Zara can test designs shipment. Cutting costs is crit- als and let consumers and companies ical for all retailers. October started tracking two prod- ing up unwanted stock that it might using a single receipt. a technology that came on the scene only in 2009.” Hyman ular information. An out. Using a blockchain database. “We believe sales rose only 2. dis- gives them an ability to imme.000 a decade ago. coli. More than scenes data for a meat-and-potatoes are afflicted annually. “That’s the difference tampering. Marshal Cohen. “This is a business can give retailers more gran.” however. it was an early adopter purpose: identifying and removing food hospitalized and 3. obtain crucial data. “So provide a secure alternative to con. That could help Walmart deliver Walmart Stop Bad Food dent for food safety at Walmart. Walmart in in various markets without build. Walmart that relies on blockchain’s database More than 1. The Walmart has been at the forefront of to catalog huge amounts of behind-the. it took Walmart Pay nationwide. will be able to ucts via the database: a packaged need to unload at a deep discount.” �Stephanie Baker with an outbreak of E. an analyst at researcher base’s strength lies in its resistance to NPD Group. not just on where it came from. ILLUSTRATION BY KRIS MUKAI. The test involves thou- says Richard Hyman. tinue to be pressured by Amazon. it can deadline mandated by credit-card net- take days to iden. We Retail Industry Leaders Association. providing tools for more the spinach from hundreds of stores. the food was grown.�Marshal Mention blockchain. (it won’t That gives Inditex among the lowest ers. and responsible vendor. help it better manage inventory across ally struggles to deal Using blockchain technology its supply chain. details on how and where “If there’s an issue say which one) and pork in yearend inventories in the industry. with 128. tributors. works such as Visa and Mastercard. 20 days and minutes” hope you could capture other impor. coli. according to the ▶ “That’s the difference between other aspects of the food systems. is already being widely tested in the finan- cial. that really breaks the rules.” he says. installing chip-card readers at U. Blockchain May Help according to Frank Yiannas. CDC estimates that 48 million people new technologies before. you can do strategic remov.1 percent. produce item in the U. detailed analysis. Last year. falling sales after several such events. an independent inspected it.” to reverse a transaction or change an It’s also the difference between entry. This summer. and local health departments each far things are flowing smoothly and ventional money. and BHP Billiton have . Walmart Stores.000 dying. and retailers—can The bottom line A unique management formula may be why Inditex’s revenue growth—up 11 percent diately find where it came from. including suppli. uted ledger in which compa- NPD Group in the way a normal fashion retailer ual package. becoming one of the first large retailers to introduce its own mobile-payment service. “With food to stores faster. Companies such as IBM. When a customer checkout counters 10 years before the becomes ill. will expand it to multiple food items technology to track transactions and borne illnesses are investigated by state in both countries. vice presi.S. and many people sions around food flows. it’s difficult if not impossible between days and minutes. immediately find multiple stores.” says record transactions securely. Walmart. according to the U. Centers for as expected. Nasdaq. The retail giant began with tainted food.

” says Boyce. according to national.” says David Tung. “If you are in a hot climate and wine is made by Domaine Chandon the company will introduce Chandon you put ice cubes in your sparkling (Ningxia) Moët Hennessy. Cola “to make it drinkable” not the wine itself. a chain of wine stores competition last been with us for ages.3 billion). China’s wine market this year will be The company hopes Chinese con- Fourteen of the top 30 banks are worth 153. suade Chinese to try it.” Marcovitch In October the Walmart Food of chardonnay and pinot noir from says. Chandon Me will try to create a Safety Collaboration Center opened locally grown grapes at its winery in market now.” in China rise of the taste- IBM. Walmart is of wine are buying it. which makes sparkling “a very good chance” of success. People would often Wine sales December. a small name is a play on the Mandarin word The bottom line To tap into the huge potential for region in north central China. affluent con. says if the brand is well- to improve the way food is tracked. throughout China. says Davide Marcovitch. This sparkling its winery to tourists. customers. wine. the Ningxia. before. spirits. where food safety is a wines in Argentina. founder and chief executive 16 sparkling wines in a Beijing tasting implemented to solve a problem that’s officer of Cheers. organizing pro. Through the Center. a partner. expert and professor at the College retailer is collaborating with IBM and the company is tweaking its traditional of Horticulture at China Agricultural Tsinghua University to use blockchain formula. The become a major growth . and opening drunk in crystal only” and chilled.” he says. cognac.2 billion). manag. a marketing in Beijing. If Walmart adopts countries. Now younger. who featured in terms of how technology can be Masueger. which ▶ The French vintner is making and consumers did buy were mostly given includes Chandon and Hennessy bottling the bubbly locally as gifts. “We are innovating for con. about 48 million since ’10 Americans contract foodborne illnesses. like other wine and spirits the taste. “To make them use in their businesses. to €565 million. and Britain it’s about 10 percent. iary Chandon. In the first half of 2016. agrees the time it could become one of the largest taste of Chandon. and were in 2014. the figure is Still sumers in other 21 about 5 percent. says Claudia market. In the U. Gold wrapping Chandon is trying to raise the profile Chandon is making to appeal to new covers the pressurized cork. Ma Huiqin. To win over Chinese drinkers. and the of its Ningxia wines by offering tast.” ship between the winemaker and the ically for the Chinese market. research director with 2017 to start selling Wine Intelligence. makers. a market-research a fruity sparkling wine in Japan and For Chandon in China. a bottle of Chandon Me. also Dimitra Kessenides capacity since 2000.) “We’re trying to balance sales growth in China. Since 2014 the joint venture appreciate sparkling wine as it is today CoinDesk. he says. global president of LVMH subsid. tradition to make sweeter sparkling wines. the be 8 percent lower this year than they Marcovitch dismisses Champagne French maker of wine. 0% Asian markets. to curry favor with govern. is counting on China to ing director of Chandon China. adigm that sparkling wine has to be Traditionnelle. to €2. Wine and spirits At first glance. he are in the fine print.1 billion ($2. might be right for Chandon. Euromonitor says. Sparkling wine consumption in 90% kling wine sales. sumers will pay as much as 200 yuan for testing blockchain to see if it can be of according to Euromonitor Inter. the bottles Chinese LVMH’s wine and spirits group. and other Jim Boyce. �Olga Kharif she says. winemaker. China has more plans to open a store on Alibaba’s Bloomberg. an industry researcher. grew 7 percent from the year ▶ People in China would add Coca. “The an expert on the global supply chain at add Coca-Cola “to make it drinkable. France.” says Paul Chang. online Tmall marketplace next year. To win over con- bubbly wine. ment officials—the price tag mattered. served on the rocks. Ellis and After more than doubling its vineyard and rosé versions of Chandon Me. Companies/Industries deployed or are planning to deploy it to land for growing grapes than France.8 billion yuan ($22. and in Japan. “We are deployments of the technology to date. Moët Hennessy-Louis Vuitton. a sweeter bubbly made specif. China. for honey.” China is less than 1 percent that of non. has been producing a bubbly mix will take 20 to 25 years. and sold to consum. French vintners are breaking LVMH. it’s really much more pleasant. But a crackdown better than the group’s overall revenue on graft by President Xi Jinping’s gov.S. a sparkling wine in India meant to be Kick From Champagne? “There’s still a long way to go” to per. like a fine Champagne from LVMH Sales of sparkling wine in China will LVMH announced on July 26. run their businesses more efficiently. Me. known and the price is right. 180% based consumer is sumers willing to try different varieties Growth really going to have The bottom line Each year. there’s transported. a and consulting firm in London. ers in China. sumers who don’t like the traditional Wall of China blog. Early in 2017 says. (The �Bruce Einhorn local government of Ningxia.” The telling details motions at restaurants. University. Sparkling an impact on spar- testing blockchain to address the problem. moter and the founder of the Grape blockchain to track food worldwide. revenue for Traditionally. says 2010 2015 Chandon plans in Wine Chuan Zhou. the bottle might look ernment has curtailed such gift giving. Sparkling wine typically isn’t sweet seeing a fundamental change in the “They are setting the new standards enough for local tastes. profit grew 17 percent. growth of 3 percent. a Beijing-based wine pro- hot-button issue. purists who scoff at the changes other luxury goods. “We have to break the par- label bears the description “Méthode ings at supermarkets. which will produce white Edited by James E..

including Deutsche Bank and financial district stands out. President-elect Donald taking time off from vetting cabinet battling with federal regulatory Trump tweeted: “Prior to the elec. tion it was well known that I have inter. including Azerbaijan. big deal!” He may have been referring Prime Minister Shinzo Abe. Only the crooked media makes this a on his Nov. members to meet with his Indian busi. since denied. 21. 17 meeting with Japanese the Philippines. of his daughter Ivanka Trump sitting in several countries. Maybe it was the photo He has ties to real estate concerns in ests in properties all over the world. ness interests. PHOTOS: GETTY IMAGES (2) Late on Nov. 2016 22 ▶▶It might be tough for Trump to divest his businesses. the $150 million Trump with Argentina’s president to discuss a are far-flung. He owes debts to foreign Tower at Century City in Manila’s planned Trump-branded development lenders. whose heads he will appoint. which give him tions swirling around his global busi- he used a post-election phone call an estimated net worth of $3 billion. Among the conflict-of-interest ques- to stories. He’s associated with companies Properties Group. Politics/ Policy November 28 — December 4. and Turkey. even if he wanted to (he doesn’t) ▶▶“Trump the brand is very closely intertwined with Trump the man” PHOTO ILLUSTRATION BY 731. ness partners. the Manila . agencies. Or photos of Trump UBS. about whether Trump’s businesses. Century in Buenos Aires.

His closely intertwined with Trump the Francisco—valued by Bloomberg at daughter Ivanka joined his call with man. and the build- 10 similar deals around the world. two in Scotland. while others One of Trump’s most valuable assets Rather than taking steps to reduce depend on his involvement for their is a 30 percent stake in two office his conflicts. tion. accord. admitted in an IRS filing to a self-dealing wouldn’t be easy. Trump might not be Some of Trump’s other assets. and two more planned in the a 90. Trump has agreed to pay He plans to hand management over to general. with international developers. Ivanka’s husband. But in United Arab Emirates—is mostly secret. a vice president of mar- after the U. director of investor rela. rooms at higher prices. foreign diplo- mats are already Even without selling his businesses.” for the Philippines Deutsche Bank. Both Bill Clinton and Duterte. paid as owner-developers on the premise that Vornado partnership. there’s an extra connection: In The three European courses file annual says Joshua Stein. Ireland. “Trump the brand is very towers—one in Manhattan. Trump spokeswoman Hope Hicks says: “They did not meet. licensing arrange. Trump talking with potential appoin- tees. he remains indi- much as $5 million to use the Trump it will help them sell condos and hotel rectly exposed to its debtors for those name in a licensing agreement. Cathy on election night. Jared Kushner.” he says. and managed by the publicly traded her brother Eric took selfies with one Trump’s international conflicts Vornado Realty Trust. visited Trump Tower in New York days a year in rent to the General Services Amanda Miller. Trump has at least ability of his golf course portfolio—12 in Street. declined to comment. his Manhattan leaseholds for 40 Wall Commission in May. it ing business partners of his boss. Trump has said and the world if he doesn’t. would be an asset. an office tower. election.S.000-square-foot Niketown store. tions at Vornado. “No matter how complicated it Trump Organization—including his Deutsche Bank is in settlement talks may be to unwind his involvement in golf courses. simple stocks or bonds. and San Francisco. whether he’d recuse himself from the defunct Trump University cheated stu- Ivanka. a spokesman for transaction with Trump.S. and remove real and apparent conflicts by liquidat. Jimmy American troops from his country and opened in October. an expert on $590 million. he shouldered about $200 million trustee to oversee his Georgia peanut Antonio told Bloomberg News that he in renovation costs and pays $3 million business when he became president. Department of Justice over these assets. ing to the personal financial disclosure With other assets. Federal agencies race to write new rules 24 Will Trump be a nightmare for Dreamers? 25 company behind the tower.S. Antonio. Deutsche Bank case or others involv. IRS rules gen- are in real estate. By remaining involved in the owned Kushner Cos. to the president-elect but says he saw According to the declined to comment. erally prohibit such transactions.S. dents.B. The Creswell. was appointed to serve Trump holds a 60-year concession to stocks. who has his own real structure of these arrangements. it is going to be infinitely ments. Of his busi. entertainment-industry finance. envoy Trump owes an independent chief executive officer.. including the Bank of China. like Trump filed with the Federal Election in a position to get top dollar. executives he won’t talk to. reports that are publicly available. has been . Manila. would be relatively easy to part with. whether he’ll put his liquid assets— E. towers. Under the arrange.” Antonio sees $5 million Washington Post. Carter appointed an independent is drawing closer to China. Trump has shown no inclination to he will appoint Alabama Republican There have already been compli- divest himself of his business interests. developer who is now administration. Since his Nov. and one in ing at 6 East 57th Street. Trump has rejected the value. and Eric—while he’s in office.” says Harold Vogel. And the Trump Foundation Even if Trump wanted to divest.S. bonds. Trump hasn’t said utive and controlling stakeholder. with the U. and funds totaling about as a special government envoy to the run a federal government building on $170 million as of his May disclosure— U.S. and office towers in Manhattan its lending practices leading up to the more complicated for him and the U.. The profit. for Philippine President Rodrigo Washington’s Pennsylvania Avenue as into a blind trust. tion’s ethics czar. Trump could appoint ness tie to Trump. Jose all three are money-losers. there. rather than in Sessions. 8 elec.. there are ways the president-elect could wall himself off from his financial inter. Many of his assets Christopher Jackson.” Eisen says. institute a list of Trump Organization The president-elect could resolve his largest lender. Senator Jeff Sessions to be attorney cations. which houses of which might complicate his adminis. he adds: “I guess it a special U. a New York real October. Sessions hasn’t indicated $25 million to settle claims that his his eldest three children—Donald Jr. says Norm Eisen. he didn’t speak Administration. didn’t return calls for estate interests through the privately under which he lends his name to comment. about $300 million in loans against the his children from leadership roles ing all of the assets associated with the hotel and his Doral resort in Florida. ment. 2008 financial crisis. each the U. “My role hotel to curry at the Brookings Institution who previ- is to enlarge the relationship between Maximum amount paid favor with a Trump ously served as the Obama administra- to Trump by a Manila the two countries. 23 no conflict between his public role and piling into the ests. Both are majority-owned Argentine President Mauricio Macri. one in San idea that they pose any problems. Bush did just that. which George W. hotels. Century Properties’ chief exec. isn’t public. tration’s international diplomacy. keting for the Trump Organization. and estate lawyer. who has vowed to expel the Trump International Hotel. Trump’s of his Argentine business partners largely stem from his licensing deals name isn’t on either one. a visiting fellow Century’s private partnership.

and quotas for boosting biofuel The Trump administration could also he’s shown no sign of wanting to divest. it’s tion’s last days. tor of the Regulatory Studies Center leak detection requirements for oil at George Washington University. policymaking in the Obama adminis- administration finished reviews of ing rules.S. Presidents can also yank rules that House Majority Leader Kevin regulators are scrambling to finalize haven’t yet taken effect. “We write to nine economically significant rules. “If you’re just declined. The bottom line Trump’s business arrangements are unprecedented for an incoming president. That’s to invoke their power to toss rules partly because of the Congressional they dislike within 60 legislative days Review Act. so what’s the incentive to hold COURTESY NORTHROP GRUMMAN them?” says Sam Batkins. After senior Republicans asked Federal Communications Commission Chairman Tom Wheeler to $1.S.” Some agencies appear to be heeding that warning. where the harder to undo. overturns them. Top A Rush to Regulate an outgoing administration. In the two weeks rules by the previous administration is they would take a dim view of any following the Nov. “That ability to McCarthy (R-Calif. 2009.” Department of the Interior rule crack. the agency canceled a planned vote on the rates charged for data lines used by businesses. and Administrator Gina McCarthy told possibly undo them. 8 election. use in gasoline. Others say there’s really no good reason for agencies to hold back. “During his cam. Transition staff in a post-election e-mail. into effect. director of regulatory policy at the American Action Forum. not delay the effective date of rules that walking. Congress convenes in January. That’s what the Obama admin- The later a regulation is released by istration did on Jan. policy advocate for Public Citizen. giving appointees time to Environmental Protection Agency get confirmed. On the horizon: limits published. if appro- priate. Senator Rand Paul (R-Ky. “There’s a pretty significant chance that any one midnight regulation won’t be overturned by the next administra- tion. government enters new regulations It’s expected that immediately after paign. Recent entries in the “Once you have a rule on the books. his admin- little bit at our extreme sensitivity. and wells. even as maintenance costs increased and the planes’ combat capability smaller government. obviously you should publish them.1b put the brakes on nearly all new regula- tions and actions. Politics/Policy advising Trump. much more efficient than repeal.” they wrote in a Nov. it’s harder to undo” the Federal Register in the last 60 days regulations in the week after the new of a legislative session. At federal agencies across Washington. The ity vote. 15 Federal Register. according to a Nov. regulatory tration’s waning months. the much. istration will place a moratorium on says the lawyer Stein.” . too. “Should you ignore this counsel. “I would expect ing down on methane emissions from new regulations and pull back any him to thumb his nose at conflict-of. a think tank that favors Total paid to Northrop Grumman from 2011 through 2015 for the upkeep of spy planes known as JSTARS.” letter to agency and department heads.” �Caleb Melby highly skilled immigrant workers get Federal Register but haven’t yet been and Stephanie Baker. review the rules. Digits please be aware that we will work with our colleagues to ensure that Congress scrutinizes your actions—and. Donald Trump is sworn in. a caution you against finalizing pending compared with eight during all of nonprofit Washington watchdog group.” says Amit Narang. said after Trump’s victory that legisla- ▶ “Once you have a rule on the tions voiding regulations entered into tors would repeal at least a half-dozen books. the easier it Republicans have already threatened Before Inauguration is for the next president to kill it. through the finish line of have been published but haven’t gone President Obama’s presidency. oil wells and measures aimed at helping others that are on their way to the interest concerns. says Susan Dudley. 1 audit by the Pentagon’s Office of the Inspector General playing the odds. rules or regulations in the administra- September.) joined 21 commit- 24 rules before President Obama leaves put on hold and essentially withdraw tee chairmen in warning agencies that the White House. include a U. a 1996 measure to deter of their enactment on a simple major- ▶ Agencies are trying to lock in so-called midnight rule-making. direc- Ben Bartenstein on the use of hydrofluorocarbons. 20. “We’re running.” U.) policies Republicans don’t like act enables lawmakers to pass resolu. with Ben Brody and green cards. Trump thumbed his nose a into the public record.

) creating national monuments and arrived in the U.” he says. or have served in the military. you can get over the fence. other purpose than paperwork. grant advocacy group America’s Voice. couldn’t eat. publisher Bloomberg LP. Co-workers com.has brought—that’s going to be lost. shielded from deportation and autho. CITIZENSHIP AND IMMIGRATION SERVICES.000 undocumented immigrants according to an analysis from the non. “For any The truth is he’s one of more than tic product over the next decade.” says Jeremy Robbins. DATA: U. talking to his room- mented on how distraught he looked. Immigration advocacy groups are imposing clean-air rules before they haven’t been convicted of felonies or advising people against filing first- hand over authority. Dlouhy Unable to take out loans.S. If Trump just cancels DACA. and was struggling Sharry. the honey ▶ Trump has said he’ll cancel It’s not clear whether Trump would pot of benefits are all yours. but federal agencies are pushing ahead. So he spent the say Trump should keep his Immigration next four years working minimum wage promises. “We’ve told the significant misdemeanors. a business-backed immi. and help undocumented workers’ permits let workers such as Belmonte keep wanted.-born son to ‘Yeah. a company willing to sponsor Anti-immigration groups 25 him for a visa.’ ” says Bob Dane. Belmonte recalls: “Initially. He’s paying off to ward off panic. MIGRATION POLICY INSTITUTE Guatemala 19k Colombia 6k Peru 9k Brazil 7k Environmentalists are embracing stand-in program. For Life After Obama able to land work that made use of his ‘Keep out. have a high school diploma or in the program are required to give on everything—whether it’s offshore GED. People White House and Interior Department school. eficiaries from working would erase at and arranging for his U. he concern that a to deportation. major- that reasoning and lobbying the Obama executive action. ‘Come on in. “We might as well they stayed after it ran out. his credit cards.” says Athan U. sider myself an American.000 people is available to young immigrants known executive director of New American are qualified for work permits through an Obama as Dreamers. 80 percent of immediately eligible immigrants from Politics/Policy Mexico have applied. the election was kind of rough. That immigration reform gration reform group whose co-chairs bill has repeatedly failed to pass but include leaders of Boeing. profit. executive director of The bottom line Republicans are threatening to going to focus on undo last-minute Obama regulations in the new by working in restaurants and criminals is going the Libre Initiative. director of lands protection him from Mexico on a tourist visa.S. that’s a problem �Josh Eidelson Trump has pledged to eliminate. He hadn’t of Dreamers on Day One. executive ▶ “Take them out of the workforce. Manuel. a Latino Congress. and if then as a quality engineer. Dream Act. He graduated in to upend the lives outreach group backed by 2008 with a degree in industrial of  Dreamers on the conservative billionaires Day One” engineering but couldn’t find Charles and David Koch. a greater share than Birth countries of undocumented from any other country South Korea 9k immigrants registered for DACA Honduras 17k El Salvador 27k Ecuador 6k Mexico All other 580k 62k AS OF JUNE 2016. “There’s a lot of where they are now exposed ask for the moon. and News Corp. warehouses. I just said. since he was 7. and are in time applications for DACA.S. making it easier for drilling or national monuments—to be Now 34. (Backers Bloomberg. case he gets deported. implemented by also include Michael Bloomberg. executive director of the immi. stay with his grandparents. under the age of 16. I con- 740. Belmonte has lived in the immigration authorities to find par- as ambitious as possible. program that Trump may cancel. DACA for business. Belmonte was have a sign on the border that says. The bottom line More than 740. existing work permits until they expire director of the nonprofit Federation for that’s a problem for business” or revoke them immediately if he American Immigration Reform.” says Daniel put himself through college guy who says he’s Garza. “If you take hundreds of thou.mate about finding someone to sublet. their addresses. Canceling DACA and preventing ben. Belmonte is making plans in slept.’ and then below it you have college degree. After up a contradictory system where you Immigrants Prepare qualifying for DACA. which Donald out of the workforce. Gabe Belmonte showed up to his Silicon that a guy who says he’s going to focus While talking to lawyers about Valley engineering job the day after the on criminals is going to upend the lives whether there’s a route for him to get election in a state of shock. “What’s inhumane is to set jobs that he could get without one. “There’s a lot of concern advocates restricting immigration. gross domes.’ ” least $433 billion in U. after the congressional Economy.” Arrivals program (DACA).” says Frank a visa.” �Jennifer . first in tech support and a sign that says. Marriott Edited by Allison Hoffman formed the cornerstone of Obama’s International.S. 2012 Deferred Action for Childhood sands of best candidates and take them And so you go back to being fearful. His mother brought ticipants. which cancels DACA. and “we create a terrible situation for them for the Sierra Club. DACA applies to ity owner of Bloomberg Businessweek administration to go big and bold by people who were born after June 1981. left-leaning Center for American “Having that peace of mind that DACA rized to work under President Obama’s Progress.S.


to be an altered version of a former Space Exploration Technologies. Walsh ticks off coal companies “Elon Musk: Faux Free Marketeer and The Liberty Conservative has taken and utilities uneasy about SolarCity National Disgrace.” says Brian Walsh. and called Who Is Elon Musk? maintained .C. and These diverse business interests byline appeared on a piece on the individuals who hide behind aliases.. Stewart.” says don’t like him. a spokeswoman for a partner with Rokk Solutions. a solar During the lobbying fight. a fake. nice 30 sharing startup 28 IBM wants to be Giving a lift to aging the Q for corporate with a walker/ cyberdefense 29 wheelchair 31 November 28 — December 4. the electric car maker Musk Washington. the Liberty Conservative site Tesla.” and varied number of shrouded online Nov. over SpaceX’s objections. companies: Tesla. “Definitely still has its piece up.” Wax discovered that a photo. The Federalist site about Tesla. Walsh’s firm Stewart isn’t a real person. 17 shareholders approved Tesla’s The author was identified as Shepard attacks. and helped persuade Congress Wax says the “Stewart” character “went Musk inspires strong admiration and to let ULA buy Russian-made rocket totally dark on us after we published criticism for his industry-disrupting engines.” says Gavin Wax. A perk-hailing CEO Amazon just isn’t this crashes his ride. firm. a website graph “Stewart” uses online appears panel installer he co-founded. better known as SpaceX. $2 billion acquisition of SolarCity. zine the Federalist published an article Twitter executive’s LinkedIn headshot.” Two days before Sarah O’Brien. editor-in-chief latter two didn’t respond to e-mails and a joint venture of Boeing and Lockheed of the Liberty Conservative. communications PHOTO ILLUSTRATION BY 731. the Stewart websites with shadowy backers. On Up Taxpayer Money With Falcon 9. This spring. in Taxpayer Dollars. 2016 27 ▶▶Are business rivals behind online attacks on Elon Musk? ▶▶Critics say the Tesla CEO “gets subsidy after subsidy he doesn’t need” On Sept. 2 the conservative web maga. Editors with the worked for United Launch Alliance. SolarCity. PHOTOS: GETTY IMAGES (2) carried a Stewart article headlined co-founded and runs. A chagrined phone calls seeking comment. a that.” down its Stewart article. a rocket titled “Elon Musk Continues to Blow Musk attracts an unusually large company he founded and heads. mean Musk has numerous rivals. including phony op-ed pieces. though: Shepard Libertarian Republic. as has the and automakers and dealers concerned Funny thing. “It Libertarian Republic website called “These are tools used by those who seems like he’s got a lot of people who “Here’s How Elon Musk Stole $5 Billion don’t have facts on their side. D. Two days earlier. Martin. him.

a PR executive who serves puter engineer who says he’s “a bit of while the CEO spent lavishly as CFTR’s executive director. the paying for CFTR’s campaign against based on the photos with the National unusual expenses started small. the Daily Kanban reported on the Ishag’s spending. Barrett with millions of dollars in donations. very differently” subsidy after subsidy he doesn’t requesting more detailed ulent” and that “one or more people people says. Leech has posted a “Tesla Hall staffers flagged the charges. Madoff and Enron Musk. Katz accused Tesla of unlawfully on American taxpayers and policy. 501(c)(4) social welfare group. as well as Musk’s other com. a safety issue. After earth is a hoax. On June 10. which On the Tesla Bears Club. videos of the land- panies. He was part Politics. because last year the “People tell me I Spokesman Bryan Thomas says NHTSA Financial Times reported Karhoo had ILLUSTRATION BY 731 doesn’t have anything new to say about raised $250 million. in September in California state court I shouldn’t talk about the fake rockets. success in landing rockets back on SpaceX. an auto site called Executive Officer Daniel Ishag. 3. reached out to them [for donations].” But hacking his Twitter account to “publicly there’s no trace of the center anywhere embarrass and silence him. down. It’s impossible to tell who’s ultimately He says he’s filed about 100 complaints At ride-hailing startup Karhoo.” Tesla’s stock dropped even by the Icarus-like standards of 7 percent on June 9 and June 10. Startups “It would be inappropriate for ULA to Without admitting or denying he’d comment on a site not related to our sent the e-mail. pany’s stock dropping. Jason Wheeler.” Walsh says of the to undermine the electric car compa- website. a longtime online he says. Finance under federal law doesn’t have to dis. because the message in question was “a nonpartisan organization dedicated too “goofy” to be believed. a retired com- ▶ Karhoo’s funding was exaggerated 28 Banister. but close its supporters.” He’s spent more than a site singles out Musk because “he is the year collecting photos of crashed Teslas ▶ “I truly wish things had turned out epitome of a businessman who gets from junkyards that he says show evi.” �Paul M. clothes. as the organization is a so-called Highway Traffic Safety Administration. employees. described by five but they haven’t responded. and other contractors.” suspension complaints. Vet bills. Nobody at Karhoo could do nies antagonistic toward Tesla might be never driven a Tesla.” accuses him of “lining the pockets of against Todd Katz. said in court papers Ride to Nowhere tifies its sponsor as the Center for that Tesla’s suit should be dismissed Business and Responsible Government. rockets. one of the yahoo.” dence of a defective suspension system. as CFO for Quest Integrity. 8. Leech says he’s bacchanal. “because it makes me sound Democratic and Republican politicians critic of Tesla’s financial management crazy. according to the Center for Responsive industry service company. courage other critics. who From Failing Again lists its sponsor posts under the name Keef Leech and as a conservative advocacy group Keef Wivaneff (“with-an-f”). of Shame” compiling his NHTSA com. much about it. came the bizarre approach of impersonat. when ing Musk in pursuit of inside informa. closed its second-quarter results. ers. About 200 workers lost nonpublic data than had been released sought to create the false impression of their jobs. says the an obsessive. Based on those numbers. Banister says: “We On June 8. NHTSA iar with Karhoo’s finances. United Launch spokeswoman says. It was a shocking collapse. Tesla alleged. Technology a steady drumbeat of criticism of earlier that day when the company dis. Asked whether oil compa. relatively speaking.” who admits to using the aliases Elon The bottom line Elon Musk attracts a wide array of (Musk has given about $515. and dis- online or in the brick-and-mortar world. plaints. Diana Australian Keith Leech. is actually called Citizens for the Republic. who’s left his A Would-Be Uber Rival’s company or industry. A video on the site. In counter- to highlighting cronyism and its effects claims. mostly” and “nothing competitive Tesla puts.” Musk said on Twitter that most itors. spending became more ostenta- tributors to CFTR are “small donors. Katz. a nonprofit research group. It owed $30 million to cred- chief financial officer.000 to poli. a massive Vegas with” Musk. said it planned to bring in more than fake rockets because it Leech. “I don’t know who it is. a site for short a pair of designer shoes. titled some digital sleuthing. the London-based company shut tion about Tesla. Musk. property manag- received an e-mail from ElonTesla@ of the NHTSA complaints were “fraud. an oil on electric cars. “People tell me American Swindler: The Elon Musk Story. makes me sound crazy” complaints. The culprit was Chief behind the website. Katz worked real and fake online antagonists criticizing his work ticians and political groups since 2003.” A ny’s push for cleaner transportation. and solar panels. another way to bet on a com. Tesla’s fied any safety issue with Tesla suspen. Banister says con. job at Quest. and the company shouldn’t talk about the the Model S suspensions. igniting former employees and others famil- One online antagonist allegedly tried broader coverage. “review” and to date hadn’t “identi.” A similar website called Stop Elon Another online critic of Tesla’s. On Aug. sellers. first-class flights.) of an effort by the fossil fuel business “That’s not us. He says he recently bought tious: custom-branded Cuban cigars. sions. who continues to file Tesla $1 billion. said it was conducting a routine to an abrupt end on Nov. also insists that SpaceX’s Karhoo seemed to have as good a shot .” The site iden. Tesla filed suit ings notwithstanding. tech startups.

her job as co-chairman. “It crises. Entertainment’s fum- didn’t repeat the false funding number erly. owing creditors about $30 million. Ishag. the app launched. buying companies to make itself and people weren’t paid for the previ. Think of an account.000 downloads. them as plays. When the news truly wish things had turned out very while in California. and Chief differently. a ride-hailing company January to May. vider globally. and Sony’s in white-knuckle. Barlow. then developed a came out. The venture. the administrator man. Bugs hit Karhoo at almost every level Despite billions of dollars invested “We do want people to feel a little of the of the app.” he said. and New York. takes a toll on the people around you.” says Caleb internal documents show.” Ishag wrote in an e-mail interview with the online publication prevented the loss of data belonging to to employees after the shutdown. “We don’t want to scare Karhoo bookings used promo codes. Its payment-processing in antihacking technology over the adrenaline burst and the pressure. Because of a bug in the app. at its headquarters said they couldn’t people familiar with his expenses. He also charged the company bling response a year later to North to employees or business partners.000 a month. which has spent five years 29 cover payroll. That was $500. when managers threw during a tech conference. stock- spent heavily to expand. what now look like rate funds. ModSquad has sued Karhoo for 2014 Trusteer Advanced fraud Bloomberg Businessweek. Karhoo had offices The idea is borrowed from the in Singapore. Q1 Labs CrossIdeas Security intelligence Potential business partners heard the ModSquad’s attorney. Steinhafel resigned. two-year-old Karhoo had three people familiar with the systems.” He didn’t respond to prototype in India. Erik Anderson. “It takes a toll. out of people” the crap out of people. to handle to internal documents shared with it. There was no severance. lawsuits were filed. say In fact. Paul Cooper. Shortly after Election Day. which com. costing Amy Pascal. To Handle a Hack Cambridge. says a person familiar with the matter. the facility at IBM’s security division If the real estate wasn’t cheap. DATA: IBM. Systems Secure mobile Incident response management market share from Uber. with . was delayed from of dollars of sophisticated hardware The bottom line Karhoo. $6. companies are also seeking payment. requests for comment for this story. and PR warning signs could be dismissed as Ishag discussed the challenges of a tech departments to handle those kinds of the travails of a young startup. 8.” company unveiled a facility that com- piled a network of drivers from taxi and �Adam Satariano and David Hellier bines gaming techniques and millions other car services. and brought into a terrible one. Executive Officer Gregg From 2002 to 2010. the launch of Karhoo’s app. it that said it raised $250 million last year.000 in unpaid bills. 8. Taxi management the $250 million figure was accurate. Barlow says. “I Startup that he conceived of Karhoo 70 million customers. past 10 years. say two Hollywood. IBM. who’d previously co-founded “I deeply regret the impact and an online ad network and run a waste investigators found the company had inconvenience recent events have management company. it will requiring an e-mail address to set up cyber attack. The company paid Karhoo’s app compiled a network of drivers from taxi and other car services $100m to buy Resilient Technology as anyone to take on the likes of Uber 90 percent of passengers’ credit card IBM’s security acquisitions in Europe. shut down to re-create scenarios like Target’s topped 300. wants to train corpo- Earlier this year. payments were being rejected. flew first Korean hackers turned a bad situation Employees say they were largely class. IBM’s security arm he told the Times of London any per. Instead of the pressure of combat. unaware of the company’s dire position exotic dancers to the Las Vegas party he one of the most powerful women in until a recent Friday. By the time plunging detail. It Pentagon. stayed in top hotels. so at one point. CEOs. said in a July missed early warnings that might have caused you all.” system lacked basic fraud protections. look into possible misuse of corpo. aging Karhoo’s bankruptcy.. more than during the busy 2013 Christmas season. says he’ll the third-largest cybersecurity pro- ous month’s work. though. Training Companies headquarters on the Charles River in neither was Karhoo’s aggressive dis. Quickly. BLOOMBERG who attended a pitch meeting. People on social gation to a call from the FBI to whatever from military simulations media said they took more than 100 free else the range’s multimedia producers trips. Identity governance same. but Employees say Ishag was more inter. vice president of IBM Security. ModSquad are due in New York’s Group Cloud-enabled identity 2011 who were told in job interviews that federal district court on Dec. wants to re-create counting. In the Startup interview. Cybersecurity war. Mass. and Ishag on Nov. which uses a similar also rented two New York apartments.000 for his pug’s vet bills. according to a former employee declined to comment on the litigation. rate security teams. approach to train soldiers for cyber- one of which cost $12. When Target was hacked offer 12 training programs. according an outside contractor. Karhoo and Lighthouse Security protection news to at least two former employees. Tel Aviv. companies appear to By the time IBM’s cyber range is such as verifying a user’s address or have little idea of how to respond to a fully operational in January. 2016 2013 raised only $39 million as of September Customer service was such a problem Resilient Network Fiberlink and couldn’t sustain its efforts to grab that Karhoo had to hire ModSquad. ested in pitching Karhoo to investors Sony Pictures bought 12 additional companies sonal expenses were repaid and Karhoo than in keeping the app working prop. a postbreach pressure cooker that can promo codes offering free rides could move rapidly from a regulatory investi- ▶ IBM’s cyber range borrows tactics be used repeatedly. In October about 70 percent of ▶ “We don’t want to scare the crap can conjure.

full-time portrait artists. After registering graduating from high school. and sive. Theater. Securities of payroll-services provider ADP. IBM spending on its As the afternoon into a single training. Amazon doesn’t break out its revenue Days after hackers took some of the We know their pets’ names” from pet supplies. made by Oblong Industries in Los major hacks. Fla. $200 million and Exchange Commission ini- tiated an inves- that based on what he knows of the gaps in traditional cybersecurity train- ing. Five-year- thousands of web pages to create a Pet Food That Comes old Chewy says it’s on track to take miniature. TVs. ▶ “We keep profiles. In the simulations.000 employ- leaked news of the breach. Cohen and co-founder Michael without risks. developers collected data from PetSmart. which morphed could add it to one of the range’s sce. ees are customer service reps trained in pressure mounted. pet supplies market nected to the real internet. respectively. wishing the “pet hackers hadn’t just stolen information. says foot call center in Dania Beach. The effort to convince companies there’s acquisition and retention. and I have to stop it. Provost figured online. the people who come in for the training ses. because there’s no receive a surprise gift—an oil paint- floor below simulate the data stream of guarantee the investment will pay �Michael Riley Since buying out every stamp at the cial data shortly before its quarterly local post office in 2014. Instead. $62 billion U. cards to its customers. there’s Chewy. we take notes. source of the breach. the company The bottom line IBM has built a cybersecurity earnings report. ing of their pet. jewelry company. Roland Cloutier. Uh-oh.” cyber range and teams wore on.S. ferent processes and combine them halitosis. and then keting company with Day. is the most expensive thing in icent to break out spend- the room. going on. range of actors. 33. That’s a whole different skill Then an insider buying. too. More has been able to do is take two very dif. and an unusually wide plays the main bad guy. IBM’s plan should work. But then names. “What IBM they can tell buyers which gluten-free food best suits a dachshund’s irritable bowel syndrome and which poultry- 30 tigation. company had spent a com- quality video panels cover the front bined $200 million on the wall. E-Commerce from the likes of Amazon. chief security officer pet care. COURTESY ZEEN (3) gigantic thoughtfulness machine tion architect and a former employee and $7 billion a year. into a pet supply site after Cohen real- narios. flavored toothpaste will temper a cat’s pressure. he also They’re also entered into a lottery to ized how much he enjoyed shopping . and IBM wouldn’t say C-suite executives. which is than 1 million handwritten holiday discovered that the about leadership in tough situations. it’s more of a marketing tool. they’d also altered the company’s finan. Executive Officer Ryan Cohen. company grab a bigger share of the gapped. so the whole thing is air. and PetSmart bring in about $4 billion FROM LEFT: COURTESY CHEWY (1). Now it has begun preordering its postage. and other internet.) Racks of servers located a ing on the facility. the though it isn’t yet profitable.5 billion in 2017. The range is designed Day are betting that this unusual to test out some of the most virulent dose of thoughtfulness will help their malware.000-square- The U. started an internet mar- in October with a botnet of infected There’s customer service. an an aggressive approach to customer e-mail sent to a fictitious HR rep. and expects to top $1. marketing teams. written thank-you card in the mail. self-contained internet. one of 700 made a full-size corporate network. each of the pet supply start. Technology settings. All this realism doesn’t come has to persuade customers to buy its gear. after home routers. which means it’s not con. and the ceiling is studded with the range and the development same sensors that allowed Tom Cruise of cyber intelligence and to manipulate data with his hands in incident response teams the movie Minority Report.S. “We have training program began with a phishing sions. At a 24-hour. IBM says it’s not planning to charge each week by one of Chewy’s 200 During a recent afternoon demo. events is technology-based—I have an attack Cohen says.” he says. With an Oil Painting in $880 million in revenue this year Like many of the range’s features. Barlow says the simulator built for two dozen. used their profits to start an online out how to replicate the attack so he up’s 3 million customers gets a hand. exactly how much it costs The staging area is a bit like a flight to run. including general The facility is expen- counsels. 31. (The ceiling for on-site investigations of array. They connected devices. acts.” Each year. and the experiment. of the National Security Agency. They’ll remember you. training center to test corporate readiness. Petco ▶ Startup Chewy has quietly built a project’s threat modeling and simula. 30. “One “We keep profiles. He’s before the IT crew could isolate the curity technologies to make them worth understating it. “This is in some ways a grand About 460 of Chewy’s 3.” Barlow says.” parents” a happy and slobbery season.” says Chief hackers made off with a cache of data enough value in IBM’s various cyberse. and Petco. “We know their pets’ for intel and incident spun out of control. world’s most popular websites offline Cohen. that idea came from Joe Provost.. we take notes. Chewy sends more response The security team you have crisis management. He may be ret- Angeles.

retirement homes and will die trying. Walking To walk.000. slightly to be lifted from a working on a more “I advised Ryan and Michael to lay seated position to a saddle. Technology for his teacup poodle.” he says. who which runs hospitals 2.” he says.” �Nick Leiber Bloomberg.” “We don’t normally Chewy won’t say how much it partner with device makers. supported standing one. 1. director for geriatric services at Hofstra Northwell School of Medicine in Manhasset. the product could be The bottom line Chewy is on track for $880 million in annual revenue but hasn’t been on sale by 2018 or sooner. or current footprint. Either way.000-square-foot The user’s hands are then left warehouses in the U. pushes the armrests all ence that we specialize in.” says Vadon. “It’s better to avoid com.Y.” Two people familiar with back to a sitting position. alternative in 2012.” says Liron Sinvani. and walk without another officer of Exokinetics.” �Olivia Zaleski rehab centers.” Cohen says. then leans forward Steadicam. e-commerce veteran Mark Vadon. height-changing. Philadelphia startup that began this summer tors including BlackRock and New Horizon. The bigger ques. doubling its free to work.” A crew of 40 uses three soundstages Walker-Chair to produce pet-care tuto. Cohen says he isn’t concerned about the Amazon threat hanging over his and every e-commerce busi. 31 ness. hybrid walker/wheelchair designed to help Chief executive officer and chief technology Chewy has raised people sit. a five-person person’s help. carry things. N. the user want that great customer experi. the way forward or back to By early 2018 the company plans unlock the wheels and lock the seat at the desired height. We are going to be No.000 to $3. stand. Form and function Innovators Garrett Brown and Chris Fawcett rials for the company’s The Zeen is a four-wheel. says that by yearend ① with $880 million in revenue. when it will close a $2 million investment can it? “It’s not so much that there are from Select Medical. to add three 600. took his online baby supply company and other facilities. spends on portraits and other perks. “We wanted to create a more convenient way to shop. there’s such a huge . Origin Brown. but this could be Cohen acknowledges the overhead revolutionary. Leaning back slightly shifts it when his father’s petition. the Chewy’s chairman. can maintain what we’ve built is the focus now. he says. regularly reorder such staples as pet food and kitty litter.. Tylee. and venture firm Zulily public in 2013. or we Exokinetics is starting supervised tests in U. Chewy’s auto-ship subscription ② Price Brown says program works a bit like Amazon’s he aims to charge Dash Button.” says is high but says it’s worth it. active wheelchair low. Founders Fund. the wheelchair. barriers to entry. $236 million from inves. health was in decline. “Making sure we perform household activities. Rowe Price. Ages 74 and 58 YouTube channel.” he says. “Once older people go from walker to able to make its model profitable. “We’ll find a Next Steps way. Billionaire 1. says he’s the Standing The user sits on Oscar-winning reason the company largely kept itself the seat and fastens the inventor of the seat belt. “There are barri. “We also didn’t Innovation want to lose the authentic- ity that comes with your local pet store. the venture arm of mutual fund T. started out of the press for its first five years. Edited by Jeff Muskus “This really has the potential to improve quality of life. ers to doing it well at scale. “People Select President and CEO David Chernow. the startup’s finances say Goldman Sachs is helping it prepare for an initial public offering next year. Brown says the team will decide next year whether to seek approval for the Zeen as a medical device. Funding Exokinetics tion: If Chewy can’t turn a profit now. setting customers up to $2.S.

“And then Bannon. to dismantle regulations in the 2010 I moved on. Richer 3.” An ad he aired at the end he accepts Trump’s win and perks up biggest banks.” Sachs Chief Executive Officer Lloyd Before Nov. according to interviews Bill Brandt Jr. Trump some- coming Donald Trump administration Marenzi learned something about times painted financiers as greedy in the course of a single phone his clients’ grins. the campaign’s finance with a dozen executives. where I Street get away with murder. clients of mine. M Finance November 28 — December 4. 8. Trump’s transition team included But the Street has adjusted its attitude clocked in at less than an hour. and women. is happy. 2016 Five Stages of Trump Grief 4. and give jumbo tax cuts to get a tax cut. a Dodd-Frank Act. Street has caused tremendous prob- immigrants. Trump’s chief strategist. “Wall does and says might hurt Muslims. Speaking on the condition of smile now. co-founder of Opimas. not far behind.” he adds. and like gaining 15 percent in the week after power machine was robbing the U.” said at a January rally in Iowa. president of bank. and Steve Trump follows through on promises in a state of devastation.” he says. Markets/ 5. What a double-good emotions veer from grief over Hillary to the richest 1 percent. with Goldman Sachs in a voice-over that a corrupt global quo represented by Clinton. “Everyone I talk to of his campaign showed Goldman as he discusses the rise in bank stocks. Acceptance 32 1.S. fund manager anticipating the money to be made if Clintons. “I’m not going to let Wall call. most Americans it didn’t see much the election and JPMorgan Chase But by the Friday after the elec- chance of Trump winning anyway. Some turnarounds tion. Goldman Sachs veterans Steven quickly. thing.” he anonymity. spent about 20 minutes Anthony Scaramucci. says Marenzi. “It’s all good for me. and I’m going former Goldman Sachs executive’s development. Wall Street was It didn’t hurt that financial stocks Blankfein’s face as the candidate said fairly comfortable with the status popped.. “I’m in the “Regulatory overreach probably . Mnuchin. spur infrastructure restructuring industry. People in ruptcy consulting firm Development chairman and a front-runner for the financial-services industry are Specialists and a friend of the Treasury secretary. he notes that what Trump didn’t even know they had teeth.” Clinton’s loss to enthusiasm for the Wall Street consultant Octavio On the campaign trail. Shock ▶▶Donald Trump once made Wall Streeters anxious. They’re past it ▶▶“You can probably cut back on the legal team and compliance” Talking about the election result. “I’m seeing people criminals. But he says whose clients include some of the lems for us. Elation 2.

changed the terms Clinton supporter Richard Farley. received most Frankel. Mortgages fund has somebody in The Republican platform called for Washington by now. “My votes from both sides of the aisle to hunch is that every hedge block a Dodd-Frank repeal. “It’s going to come off the with President Bill Clinton and then. which were taken over by the govern. and higher rich. some of the nation’s wealthi- The bottom line Bankers see tax cuts. so chairman of the leveraged finance ment during the financial crisis. or will reinstating the Glass-Steagall Act’s wall John Paulson’s Long soon. has invested through his funds in panies’ profits. polit- interest rates can fade. ‘We’re going to repeal Glass. On the River Thames 34 peaked. but investors are seeking redress cheers him. publicly say they’re mostly optimistic. and you can probably cut back on Senator John Kerry.” says Timothy LaPira. because it’ll make me Even after Trump’s pledge to “drain deregulation. and the surrounding ecosystem of Wall Street isn’t all glee. set up after the 1929 stock researches lobbying at James market crash helped trigger the Great Madison University. That’s hard to square with Fannie Mae and 33 in Fannie Mae and Freddie Mac Trump’s promise to place a moratorium Freddie Mac buy mort- on new regulations. have been espousing. ment guarantee but cash out bonuses. The officials who ▶ Lobbying for a fix “that restores gages from lenders write them have been rushing to finish the rights of shareholders” and package them into sweeping limits on Wall Street pay. and not Steagall. been lobbying actively in Washington. ▶ The campaign donor has a stake Depression. the bankruptcy will go to shareholders instead. They’ve spent boil. Nonetheless.S.” �Max Abelson and the swamp” of Washington. “There is a lot of hysteria. on the bailout.” said. says he’s surprised at how nomic adviser to the president-elect— of the com- slow some people have been to pivot. Treasury former Goldman Sachs partner who reminds Brandt. The feds to the fat old days. helped run its equities trading business consultant. Incoming Senate Minority Leader Vice President-elect Mike Chuck Schumer said on NBC’s Meet the Pence has since prom- Press on Nov.More Richerer China is building a better financial hub. increasing shaping the future of Fannie Mae and administra- competitive pressure on banks. a president might bestow on Wall Street now being sent to the U. The compensation rule is meant Trump when much of Wall Street went and had long enjoyed to rein in risk across the industry by short. betting his arrival at the White House in court ever Excitement for the treats the next will mean some of the profits that are since—and .” says Robert McTamaney. between commercial and investment Bet on Trump Pays Off an associate professor who banking. to the transition team. with more transaction prices Much of its efforts are directed at The Obama now reported publicly. just because short-term boosts from ‘I’m all for it. the securities. the government group at Kramer Levin Naftalis & Paulson—a political donor and eco. Trump hasn’t said what he’ll do with have been with less regulation. Shareholders functioning government. advocacy and influence. Now he’s reaping the rewards of an implicit govern- forcing executives to wait longer to Trump’s victory. “And I said. “This is not the virtually worthless. Markets in recent hedge fund manager’s company has spent $187.5 billion years have become much more trans. the companies at the tion eventually unlikely to change.” he says. Paulson made billions of dollars in were run as inde- Two traders who work for banks the late 2000s with a contrarian bet on pendent. parent. heart of the nation’s mortgage market. traded businesses they also worry that no matter what ments that rose in value when the U. of what he felt when he left That’s what Paulson and several in Asia until 2011 and now manages his a meeting in Florida two decades ago other prominent hedge fund managers own money. before the takeover Trump does. we’re going to have a than 80 percent since Election Day. tax cuts.S. They were last major unfinished piece of Dodd. and more government spending ahead. Those matter more to them than Trump’s rhetoric. est industries were linked back with Senate filibuster rules. That’s Freddie Mac. unfounded Fannie Mae and Freddie Mac. 20 that he has enough ised to remove them. Despite Dakin Campbell ical donors and lobbyists for Republican control of Congress. there’s no going back housing market crashed. lighter Dodd-Frank may be difficult to roll regulation. John Paulson went long on Donald created by Congress Frank.” The thought the companies. “They turned and years building a presence in Congress the legal team and compliance. Once and it’s more than hysteria. But credit-default swaps and other invest.’ And it did. two companies have soared more bailout costs.’ ” Brandt recalls. Since then the in 2008. the stocks of the recouped the ILLUSTRATION BY CAROLINE DAVID ideal occupant of the White House. most likely. of the bailout.

between Election Day and Nov. up from $10.40 profits.. Fannie Mae and Freddie Mac share. Beirne says he’d worked is also part of a group calling itself the with a conservative think tank and had ▶ The capital “is still a great magnet Informal Coalition on Housing Finance no contact with either the progressive for companies from Asia” Reform. among diverse groups working toward An ACG lobbyist helped run the 2016 a common goal. 21.40 according to the Center for affordable housing for ethnic minor- Responsive Politics. along with three other money group or with Raben. than $300. Through the by a progressive advocacy group. third quarter of this year. says in an e-mailed statement. Markets/Finance A Trump Bump National Committee. DCI Group. which and the Hill. big-investor money dock into a hub for Asian businesses.000 this year to Trump’s supports existing advocacy groups. them—and also benefit those with a building a new financial district in relations firm that’s helped organize larger stake. a lobbying firm. cumulatively gave more Sometimes.” the statement says.000 lobbying through the roots movements of small inves. the Leadership rarely disclose who. DCI. if anyone. Paulson isn’t the only investor policy. One is a direct track to came from talking points circulated influential politicians. according to the Center for its spokesman. was also added to the coalition. There are lots of ways to encourage Greenberg told Bloomberg the text that outcome. Real Estate Congress.90 connection with the president-elect Leadership Conference on Civil and predates Trump’s campaign for the Human Rights has built a coalition Election Day $2. 9 “extremely bullish” on the be reversed. he said he woke up on the private market. Yale lecturer Logan fund manager Bruce Berkowitz. At a conference 34 rebuild capital and eventually reenter America’s mortgage system solely in in New York. �Joe Light we look forward to an outcome that to become strong companies again by The bottom line A spike in stock prices of restores the rights of shareholders in allowing them to retain more of their government-run Fannie Mae and Freddie Mac these companies. which is a regular donor to a $1. This year the group has Then there are apparently grass. says & Co. Trump bought to back recapitalization of the two the Doral Golf Resort & Spa in Florida companies. DCI. They an affiliated group. has London? China thinks so. the PR firm. using sometimes iden. shows investors see Trump as friendly to them.000 in donations from There are also academics. and the National Fannie Mae and Freddie Mac on the Fannie Mae stock price Republican Congressional Committee. has spent $270.7 billion ($2. and some see bargains According to public filings. tors pushing for outcomes that favor Union. The financier’s ities and low-income groups. as it did during the stage of a £1. is this the best time to start Late last year. companies by invoking the not obvi. a public. In September. effort in the case of Fannie Mae and this month agreed to finance the first Paulson. been actively organizing such an Four of the country’s biggest banks holders. meaning that any particular suddenly doing well by Fannie Mae more of their earnings for the benefit investor’s involvement is unknown. Square Capital Management is many shareholders say requires the tical language—argued that it would the biggest holder of Fannie Mae government to allow the companies to be risky to leave the plumbing of common shares. allowing the companies to keep ing with. and Freddie Mac investments. Their alternative is Nov. and think tanks that have lined range of nonprofits. driven by gains in preferred shares the government’s action violated Their separate op-eds—published on of the two companies. Chinese companies are presidential effort. rents are Republican convention. terms of its exit from the European third quarter.000 in 2015. the Republican Nonprofits have made the case for on track to invest a record £4 billion . Hedge fund the law that enabled the takeover of successive days in American Banker manager William Ackman of Pershing Fannie Mae and Freddie Mac. It says it’s received more $1. It says ously related scandal at Wells Fargo. “This action should the hands of banks. Much of the money messaging documents” being shared London Calling went to American Continental Group.40 White House.000 to DATA COMPILED BY BLOOMBERG Mac shareholder positions. With Britain trying to hammer out the spent $180. they’re Conference Education Fund. more than triple there’s nothing unusual in “the same Chinese Investors Hear its 2007 outlay. says Responsive Politics. Paulson & Co. grounds the agencies help provide Freddie Mac stock price $3. Paulson’s char- 9/12/2016 11/21/2016 up behind Fannie Mae and Freddie itable foundation gave $25. Paulson Raben Group. also working furiously to change the getting funding from or collaborat.000 lobbying it helped place her article in the Hill. In 2012. Paulson to Bloomberg.90 from Paulson and other investors. who The move to sweep up all profits Beirne and National Consumers said in a CNBC interview in September “violated the rights of thousands League Executive Director Sally he would support Trump. than $330.” earnings and recapitalize. The Hill took down ▶ Since the Brexit vote. transformation of an old East End campaign. Jamal Simmons. saw his of shareholders across America. The $2. who was named as an Freddie Mac. Mutual of shareholders. In total. “and to allow Fannie Mae and Freddie Mac president-elect. non.1 billion) economic adviser to the Trump Puerto Rican debt crisis. managers.” Greenberg made the case for saving the Fairholme Fund gain 12 percent Paulson’s company. Greenberg’s op-ed after her response down.

officially development. least seven prospective buyers signed single market. when the tech bubble burst. His firm is anticipating rents falling 8 percent to 10 percent over the next 24 months. COURTESY GREENLAND HOLDINGS adding to the mix of the Brexit shock. former chief U. ments with the EU and can still trade “If you assume the exchange nies will still choose London as their irrespective of the trade deal that the rate between the renminbi and the base. Markets/Finance in London property this year. a professor of real estate at Cambridge University. for to sell shares to investors including 35 of cross-border investment at Savills.” says Michael Marx. property look cheaper. of the district. to repay a The long-term payoff still depends city still has the advantage of . the owner of most tors who have sat on the sidelines for ground for construction. Olympic & York Developments said U. built as a second from a different perspective. but the payoff is unclear. being developed by ABP London with set to be Europe’s tallest residential ing rights that allow them to easily investment company Citic Group and building upon completion in 2020. “There’s a lot coming onto the market. Edited by Pat Regnier Bloomberg. “London is still a year.” Too much supply is already a risk. “Rents or capital values could fall over time if there are oversupply issues or dwindling demand. because banks Dock. and it certainly won’t lose Barclays. “We docks. many as 100. executive officer of developer U+I Chinese money is also flowing into there’ll be a currency gain on top Group. Citigroup. Brexit talks. compa.” Royal Albert Dock says Colin Lizieri.450) vacancy rates could rise and rents fall & Commercial deposit to secure a slot if companies move workers abroad. overnight. loan as the economic crisis hit. have seen no drop-off in by creditors in 1992. and Credit Suisse The Brexit vote in June threatens that status so quickly. In July office values in ings in the first phase. In Canary of any property returns. location. where banks including no guarantee that will happen. location. “Chinese investors are great magnet for companies from Asia Qatar Investment Authority and betting that the U. drop in both London rents rough ride.” says ABP spokes. Last on London remaining a vibrant busi. a director Whatever happens with the EU. those doing business in Europe the China Investment Corp. up immediately after the project the City of London fell the most in at Agricultural Bank was unveiled in Beijing and paid the least seven years on concerns that of China. making fact. starting a London finan- starting the EU exit process. Bank of China.K. is Holdings is developing Spire London. “London didn’t become the residential real estate. “with a downside risk of as much as 20 percent if the market goes the way of 2001 and 2002. They’ve could attract expanding financial center along been bingeing on foreign properties companies from China what had once been around the world. near London City Airport.K. pound goes back to where it was. was forced in 2009 years. where workmen prepare the Songbird Estates. and when local subscriptions International businesses may shift as China Construction officially start. And Brexit has depressed the value of interest since the vote.000 jobs out of London Bank are lending to the History shows that within two years of the U. driven by high prices and other parts of Asia East London’s busy and dwindling investment opportuni. At do business everywhere in Europe’s has reservations for 13 of the 20 build. was taken over ties in commercial property at home.” �Bloomberg News The bottom line Chinese banks are developing commercial and residential properties in Europe’s financial hub.K. in after Paul Reichmann’s the pound against the yuan. RENDERINGS: COURTESY ABP LONDON. and if it doesn’t. now getting inquiries from inves. according ABP maintains that the cial district can be a to Jefferies Group analyst Mike Prew. Songbird was purchased by the ness center. Canary Chinese investors are looking at it and the pound’s value Wharf. Industrial Spire London 10. looking for bargains. the site. “We’re man Neil Robinson in an interview at it couldn’t pay interest on its loans.000-yuan ($1.” says Robinson.” says Rasheed Hassan.” are scaling down office space and to diminish London’s status as The project at the Royal Albert workers. it has increased. but there’s financial capital of the world Wharf. Bank of China. based there may lose the passport. Shanghai-based Greenland Europe’s financial hub. Brookfield Property Partners. eventually gets.K.” says Jefferies’s Prew. will do well in the which already have trading agree.

two accidents in Alabama ha By Christopher Leonard . AA PIPIPPEELLININEE 36 As protests heat up.

down- stream from a Colonial Pipeline explosion site RUNS THROUGH I T 37 RUNS THROUGH IT ve shown how fragile America’s energy system is Photographs by Christopher Gregory . Riverkeeper for the Cahaba. David Butler.

The explosion shook the house to its foundations. Bell Construction. a new record. The largest is They worked for a local contractor.5 million. it was fined $34 million. Colonial was the largest private-sector infrastructure project They parked their vehicles next to a gravel of its time. Colonial Pipeline paid a fine of $7 million—the biggest that ran along a hillside—the right of way ever at the time—for a massive spill in South Carolina. In addition to ongoing erated. ground is cheaper and safer than moving it by rail. Prices spiked at the pump in many cities from in Alpharetta. First responders at the as fast as possible. Amid the wreck. resistance to more construction has grown fierce. they started bidding up phone started ringing. without applying too much pressure. servative Southern counties have opposed projects as well.Oct. The semi was oblit. of pipeline repair to have built a kind of muscle memory. delib. old track hoe operator who’d been with L. Wright arrived to find some of although pipeline operators maintain that moving fuel under- the workers on the ground. includ- sky. firm KKR. vying for space. leaving gasoline refiners and fuel mer- down that caused gasoline reserves on the chants. the cost of a gasoline an alliance of activists who protect watersheds and rivers COURTESY ALABASTER FIRE DEPARTMENT/REUTERS futures contract for December shot up 15 percent. Built in 1962. 100 percent capacity. Colonial Pipeline Co. In a matter of hours. little-known company the Big Bad Wolf. Roughly half of all refined fuel products used in road. Colonial had also enlisted him to help monitor data compiled by Bloomberg. The track hoe was charred. who pay transport rates in a manner akin to a toll East Coast to fall from 64 million barrels road. and not just in liberal communities. David Butler’s cell reserves were once again threatened. But somehow duced by the U. of new oil supplies pro- erately.S. And His daughter was going to be Little Red Riding Hood. investors. That The chaos revealed something millions of Americans had afternoon. then he headed toward the fire. to whom The men were there to conduct the company returns annual dividends that typically total repairs.500 miles. not far down the gravel road. But the site. Beneath the ing 1. trucks. A driver turned on the track hoe and Coast to gas stations in America’s most populated corridor. Bell for almost a n d S o u t h K o r e a ’s 30 years. build additional pipe- Wright looked outside and saw a column of flame rising hun. a 48-year.S. a 3-foot-wide steel tube carried At the same time. the price of fuel. Aftershocks quickly shuddered up the spine of America’s energy system. headquartered in U. When gasoline traders realized that East Coast Minutes after the explosion in Alabama. protests by Native American and environmental activists over age was the body of Willingham. with a that the pipeline’s owner. think. Colonial has benefited from an increas- roughly 1. trial customers eager to daughter. years later. severely burned. the biggest one-week drop company. to deliver the gasoline that fuels their everyday lives. a semi. some deeply con- collect his remains until the next day. Koch Industries. are among those press. Butler is a local leader of Riverkeepers. history. lines. If Tight capacity and 38 he was at the wheel—the company hasn’t confirmed this—he the millions of gallons would have known to operate the track hoe blade slowly. the flames. the largest gas.. snakes between the sites of the Colonial gas leak in September bled to secure supplies from tankers carrying imported fuel. Merchants scram.E.E. include the private equity Among the team was Anthony Lee Willingham. forming a loose circle of pickup cities from Georgia to New Jersey run through its 5. He was familiar enough with the routine procedures National Pension Service. the at a wooded ridgeline in rural Alabama. barge. he heard screams. The to 55. . He told his wife to take their granddaughter and drive ing American Airlines. who live about 20 miles from long been able to ignore: They depend on a single pipeline the blast. for spill- oline pipeline in the U. Companies that rely dreds of feet in the air. which jump since the financial crisis in late 2008. to about $17 per metric ton. for pollution from its line and with cleanup after spills. and the explosion in October. Black smoke billowed into the blue on the Colonial.S. which has helped protect it from competition and up and down the Eastern Seaboard. others many times over the years. a farmer operators and indus- named Douglas Wright was at home playing with his grand. his son that pipeline is operated by a single. Authorities were unable to the Dakota Access Pipeline in North Dakota. he counts among his respon- causing the cost of cargo freight from the Atlantic to surge sibilities testing for pollution and responding to reports of more than a third. is privately with a bypass. boom have made some At that moment. 31 explosion ing to check on some elderly neighbors. Four for the Colonial Pipeline. shale the blade struck steel. Butler and his wife. had hired 28 percent stake. the about $300 million. forcing a shut. nine men arrived with an increasingly troubled safety record. ground. the highest around the country. Colonial’s pipeline consistently runs at pipeline had sprung a leak. according to sewer leaks. as their unin. Just over a month before. ON Halloween afternoon. Shell Pipeline.45 million gallons of oil in five states. and an earth-moving track which branch out from oil refineries in Texas and on the Gulf hoe. and the pickup trucks were on fire. jured colleagues tried frantically to move them away from or truck. a suburb Atlanta to Jersey City. make it something of a piggy bank for its owners. In drove it down into a long stretch of grass 1999. were preparing to take their kids trick-or-treating. and the fuel ignited. L. and now the crew was excavating about 5 miles held by a consortium of from the original rupture to rebuild the stretch that had failed. The leak had been fixed temporarily of Atlanta. As he got closer to ing for expansion. As Riverkeeper for the Cahaba.4 million barrels of gasoline ingly dense regulatory environment for pipeline construc- each day to 50 million Americans in cities tion.

Va. asking if he knew what overnight. had jokingly told Colonial employees.J. (Local drinking water supplies were safe. Ala. 14 of which are listed as threat. DATA: ENERGY INFORMATION ADMINISTRATION. the next $40m month the pipeline smelled gas fumes while doing unrelated work in the area. One point of concern was a creek near the explo. which PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION lets them know “who to call if they see something.6 million before the accident on Oct. And exploded because of the drought. 9 leak sition to pipeline construction across the country. as well as training for local officials about Colonial’s operations. He also 309. he entered however.000 gallons leak. which had left the forest floor September leak or why accidents are up sharply in Alabama covered with dry tinder. the gasoline might have flowed into the Cahaba. It of gasoline leaked had been discovered only by chance. said that the company is looking into the causes of both major incidents Damage costs for and can’t comment until the investigation is further along.1 million in property and Colonial decided that in the morning they would test damage and cleanup outlays. but she stressed that it has an extensive Linden. out as firefighting crews doused the edges of the blaze and ened or endangered.540 gallons of gasoline poured out of the line. as they once again raced to keep the Cahaba River safe from a gas spill. 31 explosion Sept. That evening. Several smaller ing—he often wears jeans and a yellow Riverkeeper T-shirt— spills followed. to draw number of reported pipeline accidents has been creeping a map that showed where gasoline might be leaking into the up every year since 2012. With his dark beard. They seemed almost embarrassed. himself with Powerade and miniature chocolate-chip cookies. This small stretch of water is the been climbing (though not in a straight line). Last year. Butler incidents involving the Colonial led to $18. which allowed them to become catchments for the spill. Had they been full. The number of reported accidents along the Colonial has also sion that fed into the river. one less in 10 months than it had had in the previous the Environmental Protection Agency and other government five years. The waterway is also home to the rare built earthen berms to contain the fountain of ignited fuel. $0 2006 2011 2016 Dunn wouldn’t discuss why the company failed to discover the September leak.’ ” Houston 250 mi. “it wasn’t like. Accidents like the ones on the Colonial have galvanized oppo- Oct. “I hope I never see you Atlanta again. samples.’ ” he said. the Colonial had discharged about bodies. N. the hillside to nearby forested land. Butler worked with Colonial employees Safety Administration (PHMSA) show that nationally. “It’s like. by a state inspector who in Alabama. gymnasium-like room where a disaster response ees and contractors. and officials from in 2016. Then Colonial got in touch and confirmed wasn’t encroaching on the suburban communities dotting the that the fire had begun with an explosion. protesters have built huge encampments . the early indications looked center Colonial had set up at a community building in the promising: no oily sheen on the water. wiry frame. when he typically looks like he’s just finished a long hike. the and environmental contractors until roughly 3 a. be extinct until a small population was found in 2011. preceding decade. the fire was spreading along $75. After being cleared by security. The implications highways between the explosion and Helena. notice a somber air among the pipeline employ- a large. leaving it to burn itself 173 species of fish and mussels. The PHMSA has yet to determine the cause of the September Colonial Pipeline $80m and October incidents and wouldn’t comment either. In North Dakota. the nearby ponds were low. Colonial had been having a very bad year in Alabama. and casual cloth. filling local has the metabolism of a hummingbird. has been increasing. a species thought to to 27 in 2015. Nashville. from 573 that year to 715 in 2015. Butler had worked with Colonial to contain the September accidents In September. She added that a flyover inspection two days Norfolk. Butler might have seemed out of place amid the The company had already reported five leaks from its pipeline fire department staff. great to see Colonial Pipeline you. Cahaba river lily. The first calls were from neighbors. ‘Hey. Records from the federal Pipeline and Hazardous Materials That first night. Cahaba. but it remained about since they’re drawn from a river farther away. Butler considered it a stroke of luck that the fire had happened. the damage. Alabama was in the Colonial refused to comment on what caused the middle of an historic drought. 126 gallons of fuel into nearby wilderness. GRAPHIC BY BLOOMBERG BUSINESSWEEK. no odor of gas. As bad as it was. The system includes pressure- monitoring equipment and flyover inspections.” she wrote in a statement. the fire was largely contained. detection system in place. pipeline personnel. ‘Here we are again. before hadn’t spotted the leak. Their cost. which attracts thousands of tourists after it When Butler arrived in the morning to start collecting water blooms each May. a spokeswoman for Colonial. frequently fueling ponds and forcing the shutdown. Tenn.” Now. the figure had already reached 39 As they worked that night. too. a town 21 miles were dire: Hundreds of thousands of gallons of fuel could be south of Birmingham. After the September spill was contained.m.) 20 feet high. he said. He did. imperiling the Cahaba’s off the flow of gasoline in the pipe. This year. 31. it could have been far worse. town of Pelham. Butler said. he team was working on a plan to contain the fire and assess thought. he Birmingham. Colonial had moved swiftly to shut pouring into nearby creeks and rivers. In late January. culminating in the big leak in September. the highest total by far over the strategic points along the waterways for the presence of fuel. more than 300. About 31 acres of land were engulfed this year. Malesia Dunn. from 12 in 2011 isolated habitat of the oblong rocksnail. Butler arrived at the improvised command As he went from site to site.

bent.E. The company and the National slow-moving water. at sumers in Illinois. a struction companies from around the Southeast. On playing field is not only altered. The two often shot rifles together May. In neighbor and close friend. South Carolina. to do with unsafe pipeline or workmanship. “There was man. They knew that oil traders 1999 fine. or otherwise elaborate. Transportation Safety Board are both investigating the acci- While some of the anti-Palmetto movement’s concerns dent. In the predawn hours of Nov. “They were incredi. At 85. the new section of pipeline was tested millions just to get to the beginning of the permitting process. and turtles. water samples. “The the Missouri River. The men pipeline developer from Wichita. and serving take tremendous. Georgia’s Republican governor. quickly. but the serve. Bonitatibus said. a spokesman for Kinder Morgan. for example. On the left as visitors enter is a typical pipeline project the company uses eminent domain a giant warehouse and open lot. he’s now vice president for opera. contaminating a 23-mile stretch of pipeline reopened. a $4 billion project that would take crude oil from financing and a customer base locked in. 4. signed on a grassy hillside near their homes. Opposition arose almost immediately. pipeline called the Palmetto. and prepared for use. said that in the mid-1980s and women driving looked stoic. At the site. his next-door New pipelines are being thwarted in the South. “I’m and Jacksonville. The next day.” Nov.” In the meantime. a power because of the legal troubles surrounding it.” he said. tainty was too great for Kinder Morgan to carry on. an Allen Fore. and blocked roads to halt construction of the Dakota Access with the backing of conservative state legislators. His team has spent pletely. ignoring reporters as they he oversaw a project that laid 1. Williams said. along with beavers. Even with Pipeline.300 miles of pipe from Texas passed by the entrance. led in thinking there’s something else … something was hidden that part by Tonya Bonitatibus. “This is the money you could’ve saved if you hadn’t voted for ists’ message carried the day. Colonial pleaded guilty to criminal neglect. on a winding country road near Heflin. including money to hire herpetologists and other wildlife Employees of L.” Fore said. it’s basically shut down. tracing a route of the track hoe blade had been entirely to blame. Bell authority to use eminent domain to take property from land. Department of ing shift of Shelby County sheriff ’s deputies. The lessons of the September shut- leak in South Carolina for which Colonial Pipeline paid its down were fresh in their minds. In settling with the U. crossing several states and a mountain range sections of pipeline while fire crews sprayed smoldering tree for good measure. The line would have branched he said.” by company didn’t confirm that Willingham had been driving letting pollutants settle out into sediment in the shallow. Bell raced to The Colonial’s history suggests their fears are justified. such as Savannah a track hoe. which would four days after the blaze erupted.” absolutely no way that Kinder Morgan should have access to Bell lives on a large complex that also serves as his compa- eminent domain. tooth through a piece of pipe. where visitors are greeted by a caged parrot.” To the right of the office is a palatial house. Roger Williams. declined to discuss the explosion in detail owners who wouldn’t cut a deal with the company. Those who knew Willingham seemed mystified by the human beings. invoking it for fewer than 5 percent of landowners. “it had nothing to spur infrastructure development. stumps to prevent reignition. He would say granted to pipeline companies by a New Deal-era law intended only that it was a “freak accident. “They protect everything up there except vigil. Bell logo resistance they’ve spawned. Trays of food and gallons company has had to shut down a branch office in New York of coffee were sent to provision family members as they held 40 and lay off its staff. Heavy trucks with the L. was the problem of Palmetto—where you argue that the pipeline’s proposed route runs too close to have a regulatory environment that shifts. credentials and kept strangers and reporters away.E. 15. Colonial released a statement terrain that runs alongside sensitive rivers—wetlands that saying that a track hoe had struck the pipeline. the burn unit in downtown Birmingham.” River. A sign He added that the company had also been prepared to push taped to the front door shows a pile of cash below the caption. who checked Justice. tremendous force to put a back hoe. after the explosion.000 fish. but neither would comment on their investigations or were environmental. workers prepared new to California. or cities with limited or no pipeline service.S. said that on hour or so east of Birmingham. their activism took on a conservative on the circumstances of the explosion. have led to a much tighter reg.” Bonitatibus said.” ny’s headquarters. The Palmetto was to be buried beneath miles of marshy Shortly after the accident. the regulatory uncer- fracking wells in North Dakota to refineries and gasoline con. Slaton recalled that a moratorium on pipeline permits following intense public Willingham could hit a target from several hundred yards opposition to a proposal by Kinder Morgan for a 360-mile away. it finally burned out com- serve cities in New Jersey and New York.E. incidents like these. accident. and the was almost nonstop. as the rivers’ “liver and lungs. the owner and operator of L. and Deal passed his moratorium Obama. Members of the Standing Rock Sioux Tribe the end of the day. came and went. The gravel road to the accident site was guarded by a rotat- muskrats. along with vehicles from specialists and con- ulatory environment for pipeline builders. The mix . Next to that is a small office sparingly.E. while other rallies took place from Los Angeles In the days after the Alabama explosion. and Florida. “It would through Georgia. which made him doubt that a simple mistaken swipe off from the company’s Plantation Pipe Line. ahead with Palmetto without eminent domain. Construction.” He said. The get gasoline flowing again. but you’d win money on that. employees from Colonial and L. Traffic Over the past three decades. as Butler collected to New York. But the activ. Word of Willingham’s death had spread After more than three years of groundwork. and four of his co-workers were being treated at a “we don’t have one single permit yet. river and killing an estimated 35. I’m not a betting bly arrogant the entire time. Willingham was a steady hand and a competent worker. none more so than Jeremy Slaton. “That. too. Bell appeared shellshocked in the days experts to examine the ecological impact of the new line.” he said. tions on the 178-mile Pilgrim Pipeline project. building. sent roughly 1 million gallons of diesel and wholesalers would be counting the minutes until the fuel into a local waterway. Nathan Deal. Most of the resistance focused on Kinder Morgan’s Larry Bell. hundreds of marchers closed down streets near the White House. the Riverkeeper for the Savannah caused this. the source of their drinking water.

who help maintain the aging Colonial and McKibben wrote. It was great news for him and the oblong side government regulators.” The risk was always hanging out there. After each previous major accident. actions the company will take to boost reliability. His company now employs low polar ice for the date. he pointed out. By Sunday. we investigate and determine the cause along. the effects of rapid sea level rise on the nation’s coastal cities. Koch Industries declined to comment. ture we condemn the nation to another 40 or 50 years locked he said. Butler’s water tests from the accident site came back neg- dents do occur. Colonial’s spokeswoman. Bell said. He remembered when the pipe. and species loss remain the trade-off for driving our port our product from Louisiana and Texas to the East Coast. water contam- as a necessity of modern life. “If we lined up trucks to trans. the company agreed to improve safety practices as part of its settlement with federal regulators. in an e-mail. clearing the way for the Dakota Access to be completed and for the construction of the Keystone XL and other lines.” <BW> . which includes mea- sures for system reliability. This year the figure is almost double that. wouldn’t say what specific that owns it play in their daily lives. were born poor and had been raised in a nearby small town. a guillotine.” He was quick to point out that he and his wife 350.ination. happening again in the future. Buck Creek. co-founder of the nonprofit doing the hottest year our planet has ever recorded. “My worries about ‘infrastruc- ture fragility’ tend more towards. with record- line ran its first gallons to fuel. he was nervous on lessons learned to minimize the likelihood of similar events that the next call from Colonial would be coming soon enough. Gas prices had barely been dis- he said. at least. he said. cars and heating our homes. infrastructure that supports the oil and gas industry. the risks of climate change. 6. goes “extremely overboard to make sure everything into the current way of doing business. g asoline supply crunches won’t likely persuade the 41 environmental groups that pressured President Obama to kill Keystone XL and are now protesting the Dakota Access to back down from their objec- tions. is about more “We didn’t have no rich aunts or rich uncles or daddies … than preventing leaks—it’s a way to curb the construction of but we had some good ones. Moreover.” he said. But it’s unclear how much impact even a deter- mined White House could have.” what an important role a single tube of steel and the company Dunn. a tributary of the Cahaba that runs through the town of Helena say. “Anything we do has got risk to it. In 2015. “When inci.ative for gasoline.” was up and running again. Environmentalists’ fight.” is done right and everything is safe. roughly $300 million. This year’s incidents appear to be affecting the company’s bottom line. with massive droughts and floods. was “a country boy’s way of author and activist Bill McKibben. It’s possible that the presidency of Donald Trump will change the regulatory environment for pipelines. “It’s sort of she wrote in an e-mail.” He described pipelines For now. That’s about the same amount the company has been returning to its shareholders in div- idends in recent years. and take corrective actions based rocksnail. leaving some 50 million people to forget once again that man makes that does not have a risk to it. Colonial Pipeline.” about 500 people. Colonial spent $163 million on capital investments. We are doing the same here.” wrote of home and business. given that most pipeline battles are fought at the lower levels of govern- ment. org. but he wasn’t celebrating. “When we build new fossil fuel infrastruc- other pipelines like it across the country. Instead. but Moody’s notes that Colonial will reduce the payouts this year because of the accidents. the Colonial we wouldn’t have any room on the interstate to run our cars. There’s nothing rupted. Nov. according to Moody’s. “The Bell dropped out of high school to work as a laborer on the imperative need is to wean the world fast off fossil fuels—this Colonial in the early 1960s.

‘I mean is ther anti-m 42 trainin .

re Sexual harassment is alive and well in the American workplace.n. We’re all clicking through video compliance courses. Something’s not working By Claire Suddath murder 43 ng?’ .

“If you don’t tell your boss. I will. He was really good at [After Billiel left the diner and. I walk-in freezer where f you run a company in California. 2014. One kiss me. estimates is a $4 billion HR software market. in a lot of networking events. 60 percent of women said they’d been “eyed up and Marchuk. The and an elected official came up behind diner settled without admitting to any me.000. This October. Midway through that sexual with him. My tip goes estimates that as many as 90 percent of people who expe. In California. Matt MacInnis. meeting and said. That was untrue.C. Juan Monteverde was they used. ethnic. The an eternity. which the harassers. but the way we address sexual harassment I actually wrote the and then try to show it to now. received one. excuse. employment at the time down because of that. I mean. I heard attorneys and of course the reason was because women paralegals and they’d heard that I had already been I’m not any less traumatized. [first] summer. state-mandated anti-harassment training every two banned from our meet- because he wanted to years. place of orders first. sort of the rainmaker. I still see him. As he ing. survey. Some girls tion. but the part- agers. She their names. “We by no asked to remain anony­ food or burning my orders means think that’s the extent of the harassment. If ment claims before they can proceed in court. The diner closed. within the essarily feel good. and couldn’t claim I was flirting with him or it diner. 30 One of the other cooks down” by male co-workers. or religious discrimination. I was drink- how to deal with it. and There were some female nothing was done. There were The Equal Employment Opportunity Commission tion’s meetings after that. Billiel and at least nine between my legs. They offered me a job could bite me. you have to take would’ve liked to see him there aren’t any cameras. Many who do are contractually obli. D. Nine women talk the Massachusetts attorney general’s standing in a room full of 300 people.000 and $200. “I mean. U. I’m not any receptionists. about on-the-job office filed separate complaints. 32* mergers on behalf of shareholders. a--hole from still being an a--hole. He pulled me into the hallway Marie Billiel. vene based on something they’d heard Washington. blogged about her experiences. He specializes in intervening in decided they weren’t going to inter. clicked time he caught me after a away. We didn’t have a formal got straight-up groped. less than five minutes. and sister. along to the owner. and the There was one point take formal action. 13. names of the alleged where I was in a walk-in gated to litigate through private arbitration. a thought occurred to him: This is a farce. ing me and asking if he For more than three decades. and then put his hand harassment wrongdoing. A colleague saw it other women will share a settlement of happen. went back out. outpacing the number it received for *For the women who 44 “forgetting” to make my racial. we have verified or making other people’s Peggy Mastroianni.” he says. them feel uneasy at work. sizable portion of what market-research company IBISWorld two founders are brother I told one of my man. they Juan had said some weird things the American Civil Liberties Union and change. they would retaliate by of them from men). 27 between $112. They couldn’t see how an online training course would keep “an ago. which by law must investigate all federal harass. rience sexually inappropriate behavior at work never of the incident. summer of law school. I was kissed without anti-murder training?” policy for our organiza- my consent. I work for a political group. the whole system is flawed. I through two hours’ worth of slides about inappro. She passed it which has the most robust training requirements of any ners are mostly men. but I’m sorry.” says mous. When you his job. phy on their cell phones a laudable goal. to me when I worked there over the . but they hired. I said no. “There is better now. MacInnis That was three years were oinked at. other women there who (EEOC). Fla. saying the disclosures you’re making through the grapevine. founder of a ings.” So I did. I pulled digital distribution business called Inkling. course produced by an HR services company. and I know that’s no We were whistled at answered multiple-choice questions to prove he’d paid atten. grabbed me. [It] was tutions have addressed such behavior through corporate when I graduated in 2011. I grabbed my wrist and I know the elected tried to pull me into the official was talked to. One of the cooks didn’t happen. it’s 2016 for I resisted their advances.] and said. I see it validated my story. Compliance training makes up a firm in New York. Boston Receiving a settlement doesn’t nec. freezer with a cook who EEOC can’t track.” as he puts it. last year the EEOC reported Jacksonville. companies and insti. although there’s little It’s a small civil litigation but at the time it feels like evidence they’re effective. We do are insufficient. But decades of surveys show that harass- was consistently trying to ment remains prevalent: In a 1981 Harvard Business Review Alexandra get me to go out with him. the organization’s legal counsel. policies and awareness programs. but he wasn’t. Having someone else It started pretty quickly. get people out of an office setting.” all the time. “I was was 18 and didn’t know priate touching and sexual comments in an online out of line. which is not the word less assaulted. The man first two weeks that I was working at the still had friends who worked there. This one time I was at an event. is there sexual-harassment us. Anonymous. shut the door on us and that somewhere from 50 percent to 75 percent of women I worked at Faruqi turned the lights out as have experienced sexual comments or touches that made & Faruqi my second this man was approach. but it’s would watch pornogra.S.000 sexual-harassment complaints last year (16 percent God’s sake.

They said I hadn’t been just . and Nordstrom. as I did it. and my mom took me shopping at been drinking. form of training. but the second night I was like. A few weeks into this. or he priate conduct. for a lot of people. So I offensive—and to call out their co-workers with gentle warn.) They use all sorts of courses. and I’m come back from a court still with that company. “quickly. Catchall policies that disavowed harassment quickly ended up dropping the sary. and involving a company 1980s.” In addition to the standard prohibitory the room and look at me at my apartment. There was a pencil skirt back to the office. I don’t know.. once during all of this. HR person in her firm about to hearings with him so I Learning Center advertises one of its courses with a picture it. which considered what’s e-mailed the lawsuit to another attorney about known as “hostile work environment” harassment (frequent Juan and his wife and the how much he liked getting sexualized comments or touches). We’d and he asked a lot of questions about home. They had a psy- I dreaded going into chologist evaluate me. from the cut-and-dried to risible that.000 in student loan debt and was In December [2011]. He kept inviting theatrical re-creations. one of its videos with the words “charges of sexual and other [Monteverde said the one of the female part. forcefully. it leans heavily on hired actors who dem. me—I mean. when you Google get away.” fol. three months. That’s one that I had gone hiking on a vacation she wanted me to buy. which MacInnis used at Inkling.” In his own court filing. It seemed to bother every- Brooks Brothers. They claimed I’d and he’d joke in front of liable for harassment. Once we’d been out at dinner. hearing and were having They let me deal with it in a drink at a bar when the best kind of way. wore. sex with her. so I don’t know what amount of energy to make sure I wasn’t said that back in the empty office. Pick any major institution today. and I told her what appears to be a witness stand. It took an incredible against Monteverde and the firm. when he—we . We did a case Early versions of these programs first cropped up in the I kept my offer letter.. I was hesitant. I was like. . red is don’t even make sense. which creates online me for $15 million. for him. steps to prevent and address such behavior. nothing was done. and countersuit. and she $250. really happy to have a job. I actually went to work for two days I started that I’d be working directly I was trying to strike this balance— after that. forms of harassment can land your company in court. in addition to California—require them to do so.S. and we were at the firm’s I filed a lawsuit. and he said we should go my hobbies. but I also had don’t complain so you don’t get fired. It the office. I was OK.. companies spend hundreds of millions of dollars on on that front. state. urges employees to men. Inspired eLearning. Apple is committed to “a workplace free of defendants got to sit in rent if I let him sleep over harassment. on and on. fire me knowing I had all you’ll find one: “We do not tolerate harassment or inappro. (cries) questions about how I paid for the vaca- tion to when other people left for the day [In a lawsuit Marchuk later filed tion. All of the named said he’d chip in on my reads. all weekend on some. I didn’t know until right before some experience and then jump ship. I’d been there drove into the city and picked me up. Well.] They countersued dinner. I started talking to Juan time job in Omaha before I filed. out that the IP address even sexual. Emtrain.” I called my mom.” eligible for a bonus. him. He’d just do the court decided that a company will be held liable when a where the e-mail came things like make me work boss harasses a subordinate unless it can prove that it takes from was within Faruqi. time. produced There are details in there elevator when I couldn’t by dozens of companies. “I can’t do this. asking me to go onstrate legal definitions in generic corporate scenes. after I’d already quit. to e-mail every single the firm. starts The firm denied it. or he’d threaten to became the norm. It went ings such as “that’s a little orange. But it turned BJs. He asked me to go have courses every year. “No. Supreme it says I’m eligible for a called BJ’s Wholesale. Sometimes it wasn’t pro quo” variety (the classic “sleep with me or you’re fired”). we’d just holiday party. I got the courses and runs in-person events for companies such as ing I was “obsessed” with 45 sense later that she talked Chevron. I was deposed for a this student debt. the judge. he the point of that was. Netflix. but I said.summer. and I agreed. They decided not to use the psy- so I wasn’t alone. Court decisions in 1998 clarified when companies can be held bonus.000 companies. I had to police was a three-hour session everything I said and did and what I about yearend bonuses. One of my comment about my body from data privacy to environmental sustainability for about close friends thought in front of other people at 7. but the their use didn’t pick up until two U.. and he said he in the library of an attorney’s law firm. claim- was going on.” I paid atten. she chologist in the trial. but tally color-code their comments—green is respectful. I should give him a blow job for picking up I had this plan to wait until I got Monteverde disputed her account. and painfully had and he joked in front of other people that And I still had to do the actual work. by the law community. They asked a lot of Juan would comment on it. relationship was consen- ners took me out to lowed by a picture of a frightened gray-haired man on what sual. putting myself in a dangerous position. I remember one time I was visiting wouldn’t recommend me for one. He’d Skillsoft makes compliance videos covering everything on the carpet. He’d touch me in the ernment employees.” JPMorgan Chase’s official code of conduct full day. although only three states—Connecticut be covered so closely “What? No. It was entertainment could be “eye candy” for of a man and a woman making out on top of a filing cabinet. They thing that wasn’t neces. In the cases. as opposed to the “quid firm’s clients.] the check. I had gotten a full- On my third day at work. So Juan started kissing me.” He started and Maine. About 80 percent of companies offer some But I didn’t think it would sex with him. by law blogs or followed making comments all the (Thirteen more states order training for at least some gov. bloodstains me out on his boat. The lies they told to people about him.

sive and all. . to. the ney.” or “Do you want to go on a I didn’t say anything to anyone about Anonymous. Faruqi passing liability from the organization to the individual. It and procedures regard­ Skillsoft’s most comprehensive program includes a way for was so sudden I was like.” Despite the recent safe. Everything stopped. door. or I’ll scream. He stopped.” He said he’d talk to him. so there were a lot of asking. I eventually told my supervisor and sure other people were always around. let’s get coffee. Last year the EEOC established a task force move. I know they take this decision interview with language. said about took great issue with this. He started shoving Ms. In a post. “Absolutely he is. people to report harassment they’ve experienced in the “What is going on?” He including but not limited past.” knew all I had to do was Monteverde didn’t make noise. That made him esca. but he would just keep asking. I didn’t know what to expect. The trial went on for weeks and was invited me to sushi for dinner. and well­being of our course that employees click through to learn the legal do’s One day he came into team members very seri­ and don’ts. [Marchuk He started e-mailing me multiple mes.” Goldman Sachs says it does “not tolerate any and I’ve always felt very blog. San Diego how she felt about the ing courses. He said was like. and I New York federal court.) But according to employment He’d say things to me like. and grabbed me. says that “unwelcome DreamWorks declined entirely unwelcome. 32 tory messages about These policies often go hand in hand with the train. to. California fol. By the time the jury had their dinner to be polite.] lowed suit in 2004 after 16 women accused then-Governor 20 years older than me.” Sarah Reyes. My some of my friends. Marchuk’s private e-mails nature” aren’t allowed. “A friend of mine is a pilot that they’d had other issues with him. He’d stop I stopped being polite and started flat This was in 2010 or so. weekend. He about me in e-mails and Gchats behind there was nobody else there. crossing the line?” I wasn’t sure. “Am I overreacting? Is this guy insanely stressful. 21st Century Fox. Arnold Schwarzenegger of harassment. in direct response to the Supreme Court head of paralegal was female partner about confirmation hearings for Clarence Thomas. you probably ought to sign it.” I turned him at dealing with conflict. closed the ously. 41 hot air balloon ride in the desert?” It was it. and that the firm harassment and what kind of behavior can get people into for after law school. their goal isn’t to stop harassment—it’s to guard a b----?” “Why are you a who get to judge whether against lawsuits. He’s had believe Monteverde’s News Chairman Roger Ailes. I ate should not be sending you flowers and my back. It’s attorneys. did. That’s where I met him. that sexual advances [or] … verbal or physical conduct of a sexual to comment. and people should feel free to report contained contradic. We considered of training. “You’re building a defense in the event of an incident. and someone respond to a request for comment. asking you out when you tell him not verdict. I was above him. He sent me flowers.000. HR managers. And asking. “They want to generate a record so they can my office.” talk. though. hard ass?” It was offen- or not you deserved it. The decision was dis. Google urges its employees to “be excellent to stuff very seriously there. and the companies that design the “Why are you always such just a bunch of strangers courses. but then I went home. “Hey. fired. Anonymous. Because I’m an attor- appointing but well within ground. 46 could have happened. His company offers different levels about a woman of color law firm “takes the safety of training. the policy at the network’s promotions. lost under federal and New York state sages a day. The owner of the firm wasn’t very good Los Angeles never. were really scarce. so much had been argued that because it was weird.” The commission could find now. which typically cover the legal definition of The first firm I worked law firm. Schwarzenegger at the time. and I couldn’t place. I just thought he had & Faruqi founding partner says Eugene Van Biert. The defended ourselves in walls were thin. Marchuk’s com­ to investigate workplace harassment and concluded that his hands up my shirt. but won under New say things like. Maine and Connecticut passed their laws requiring a junior associate. He the range of anything that state assemblywoman who introduced the bill. but Van Biert says fewer than 20 percent of his clients got me in this bear hug. The what Marchuk told the training in 1992. supervisor said. and what they said When I got to the restaurant. the Above the Law each other. (“With your back. vice president for global compliance something in his craw Lubna Faruqi says the solutions at Skillsoft. And it. I read discovery from it would be a big group of co-workers. If I had reported I started at DreamWorks around the down. sexual advances were parent company. ing employment issues. he says most of its clients pick the basic online being his superior. One night he late. York City’s human-rights Two other women com- law and was awarded plained about him after I $140. and could fly us to Catalina Island for the could come in. I plaint to be without “much of the training done over the last 30 years has not told him to stop it right merit and vigorously worked as a prevention tool. He’s a much bigger guy crimination in the work­ Despite its popularity. harassment and dis­ choose the service. Instead. You just don’t know. but it was just In a statement. That was it. then they want to move on. He’d I learned later from my supervisor harassment law. I’m pretty sure I would have gotten winter holidays. But he still works that the jury didn’t outpouring of harassment complaints regarding former Fox at the studio. a guy who was about Monteverde’s actions. We have policies say they’ve done it. any harassment they see or experience. and legal jobs by my office. a juror explained form of discrimination prohibited by law. parties.” he says. I just made if I wanted to have lunch. send me e-mails asking out telling him no. They’d come up with an excuse. I was had dutifully recorded trouble. there’s little research on this kind than me.

and she and also talked to my He stopped. telling me motivation. “You just sort of do it me two to three weeks. the most recent of which is 15 years old. that Google had a no-retaliation policy telling me about his sex life during a one. recount what hap- couple of years. how I was feeling after everything. This was the first time I’d spent to keep going? Why didn’t I tell him to feeling to describe. taken and that it should who still works for the client.Pretty soon after that. 45 not being stronger. and he’s find it didn’t work. but I know as a result. and assurances contact the homeowner for verification. tried to think about some. or not I should report I used to clean. there was always suring their impact. but I made sure The companies that design the courses—and the HR marriage? I couldn’t make that when I cleaned his departments that implement them—also have trouble mea. the University of Connecticut who co-authored two of the things out of proportion. struggled with whether In one of the houses that evaluated training programs over time at companies. only three studies. but ultimately I decided to When I left [his house]. misogynist. “and gather that kind of intel.” Emtrain’s chief executive officer. So harassment. HR complaints after taking our training?’ ” says Felix Odigie. they worked on corrob- I just told him. After three years or so.” and hope it’ll be better. tigation by the University of California at Berkeley found summary of their findings. I guess he looked at me like I had two heads. I still courses culturally tone-deaf. says her company plans to publish a report report his behavior to HR. I Elmwood Park. not about the plaints. an organizational psychology professor at scared that I was blowing was working naked. Ill. sense of why I contin- house. I Janine Yancey. It took them. At the time I any kind of an online course is going to do anything to stop happen if his wife found was undocumented. times he asks. “No. and I shared office space When I was still new to the role. “If I scream. had a week of team-bonding events egg him on or give him implicit consent Even so. on the team. because once it’s extended time with my manager. Last year an internal inves.” manager to get his side kind of respected me for Focusing on the legal limits of harassment can make these of the story. and he’s there on she says. I still feel shame and harassment training. Sometimes he would ask studies. I had a kid. As a researcher. that this was there. Magley says. saying something. but what little information we have on I should keep my head clothes off.” says down and let it go. He his face. “I kind of don’t have any answers. 47 run and call the police. You’d the company got nervous about legal liability should she the names of people who be working. you just anti-harassment training for 25 years. I was enraged at him for blow it off. racist. ‘Have you had fewer I cried. Inspired eLearning’s CEO. it’s always present. It was a harsh made a number of highly inappropri. but don’t if he was disciplined or gage. fetish. I was in my early 20s and nervous laughter and by changing the that he was given additional sexual- was the most junior member on our topic. What would the money. But the first Magley once teamed up with a company to evaluate its anti. I needed change people’s behavior. in effect. the man “These training companies are making buttloads of money my manager to HR. out.” cific times and locations. He apologized . or if was always taking his off these courses. you either it would be gold. it was harassment training but had to discontinue her study after pened. I still felt on edge. I had a mort. and asking me to touch own career. They asked for really. and I ruined their I stayed. and some. we the moment. understand the definition of sexual harassment. It goes ate comments to me in professional and He was my direct superior. I was also the only woman. view with me so I could problems. we didn’t that every guy goes through an Asian never happen again. regret for not standing up for myself in another office. They also checked in to see San Francisco the flesh of his palm as a way of describ. compliance courses help employees might happen to our team or what. so I was rarely alone. From there. It’s a hard planned. Afterward. naked. ‘We are not finding out that information. but honestly after-work events: comparing women At work. all over again. He expected them raises serious questions about their efficacy. In retrospect.” she says. I couldn’t focus. I’d tell Phyllis Hartman. and unprofessional? transition into the real world. against everything I believe. and I was him. demonstrating how its services decrease harassment com. I asked the head of my own HR the witnesses I provided I’m going to call the police. but it He was well-respected if you wanted to touch usually deals with fictional programs designed by research. as well as spe- go to the basement to do pulled out of the study because they didn’t want to know. I responded with Google reprimanded him. “Can I get a vague statement that naked?” I’m like. laundry. Did my nervous laughter with someone. I had recently switched teams at ing why he had developed a strong sex I don’t know the specifics of how Google and had received a new manager drive at an early age. I didn’t know whether ers rather than actual courses that companies might use. “If we could ask companies. I lost my the best way to deal with that is to just from different Asian countries. and you in and said. we moved to team. department if they’d be comfortable with that. they provided me with a clean for him. asking me to sit on his lap (I didn’t). I was us to clean while he Vicki Magley. but it hasn’t released any results yet. 28 on-one meeting. really bad. But I don’t know what company would orating my story with look for somebody else or provide that information. concerned about what to run or stay and work In her experience. an HR consultant who’s been working on amidst my anger. HR set up an inter- thing else.” says ued to feel such empathy someone with me. making these comments and angry at myself for Magdalena Zylinska. “The attorneys from this company came might have witnessed the nowhere around. It was humiliation the treadmill. “I have absolutely no faith that even fired. There’s other academic research.’ They events. so I should be protected in my Julia. immediately.” disciplinary action was To protect Zylinska.

company. thing. but was this older. nobody. “Why didn’t you protect it’d make his day better. it recom.. on my side of the table who hired me. pass in front of them.” he says. and I’m ducking out of or how he needed to hug me. who paid pliance training is better than no training at all. had for probably not even going given to me out of guilt. you’re missing the broader point. “If you draw lines around prime minister of the ers who were all illegal.” she says. It’s hard as a woman to get manager for another year but was very they hadn’t been illegal. MacInnis has dealt with a few internal harass.” It’s so gross to talk safer because he wouldn’t bother to go elevator doors closed. I think if outside. Geoff Marcy. In December 2003. the UN’s high [and] putting holes in the Sindy Warren. 34 Dr. the director of when we were washing the time because it was on her mind. his 50s. but they still at Google today. I used to didn’t look twice at me.” <BW> tor of human resources always be wet while comes up to me laughing you’re working. I was waiting for He made this comment: to say I’m lucky. because when I was with him. He’s out of shape and his way. more than a decade repeatedly groped female students who to remember a lot of the Google declined to worked in his lab. Berkeley’s training course noted that legally. there’d be a little older. with people and asks about their concerns. We reached to his lawyer. two men crew. behavior that’s just illegal. it took a long time to rebuild my self. He remained my by the way.) And yet the school’s so much stress. confidence.” and says. and I knew if I was build. When I got out of One of the first inci. summer job at a horse adviser. they probably someone to hire you to do manual labor. but I really loved that job. for shock.” says Michael Eisen. a biology pro. family. But around I applied at a few other stables. Lubbers. The EEOC’s stepped back to let me me—in cash. My Lubbers tries it again?” He makes like comment about the size of my breasts primary way of dealing with the situation to grab me again. about reporting him. or at least say something? You’re me. I Warren & Associates. an employment attorney whose firm. the best courses go beyond the law. But she’s quick to point out that com. him out on dates. I’d . “I’d like about. “I love feeling you press ing a fence in a field somewhere. Mont. When I got 48 They were an all-male Lots of things are not illegal. always respectful. to me for his actions and promised was the illegal workers—who were great. what Every time I ran are you going to do if Mr. the elevators to go up to “I should require you to able behavior that you can see before it rises to the level the office. You have to realize. but usually there’s some sort of observ. is married to my dad’s company has only 150 employees. and for months has repeatedly asked Geneva Missoula. Also. As he’d hug smokes a lot. that is not a problem most of us I was in a meeting with farm. “So?” about it even now.” he says. I don’t know if it was because he was maybe the problem was me. I saw what steeplechase course. Later when I didn’t even think I was promoted. I know you’re going to ask why. Hispanic. I felt like Google and like to build fences with this one man in was like. came around to check ment cases. Because his against him. certain people he’d act normal. or what. the HR department were on my side. Randy Risktaker the United Nations in ing in 2002. I was the director of human resources!” As the up against me. I where. people can bring it up. and the direc- wear white shirts and of something really serious. The guy appropriate.” Instead of discouraging a relationship.. at work. if it’s necessary. wouldn’t say anything when he came the case. I started working at For two years start. with way more gnarly stuff than I have. 64 Anonymous. Randy Risktaker. The course described a fictional female student who “is attracted to her dissertation advisor. but they’re not respectful or up to leave. I never told my best friends. including Ruud like setting up jumps fessor at Berkeley who took the course. careful to only act professionally. I was in first wife. instance. part of me On the whole. he had lunch with a recent college graduate. six men. says ugees. investigates workplace harassment. but most of the time it too. and the room and by the ele- dents I remember was they wound up talking about the gender wage gap most of vators. or English-speaking. I won. by. For two whole months I didn’t do any- Sometimes he said this stuff in front I worked there the next summer. receive a response. in the seven years since he founded his tried to do!” pants and a white T-shirt. 50-year. I said. he often meets one-on-one his groin into me. well. It dered if I deserved the just wasn’t an option. off fencing for the nuanced engagement will create the kind of environment “Oh. Now it’s so clear to me that’s not at all They took my concerns seriously. Cynthia. Cynthia Brzak. he replied. out there. I worked a could date the student as long as he first stopped being her 1979. Netherlands. who did not respond. and shoved H. I love working not to do them again. my of other people. “The idea is that more human resources said. but at the time I thought. because out to the manager for online anti-harassment training course included a hypothet. by the way— task force doesn’t want to do away with it either. to him it was another day comment but didn’t ical scenario that was almost the opposite of what the uni. the high commissioner was wearing Carhartt Even so. “I have to tell you. I was doing things encounter as professors. At a follow-up meeting H. versity was dealing with. (Marcy referred Bloomberg Businessweek instances that caused me comment. maybe I’m being too sensitive. Not long ago. who used to be worked with farm labor. commissioner for ref- ground for fence posts. me . “I have friends who are CEOs who’ve dealt to what we’d been talking on what we were doing. He’s would’ve said something. He is that emphasize broader topics such as civility and respect. “Cynthia. But H. pulled me also sort of related to me: MacInnis says he tries to do that at Inkling. he’d say. from behind. He’s promotion or if it was that a renowned astronomy professor. because was to avoid him. into him after that. mends that companies supplement training with initiatives Mr. Lubbers grabbed me old guy named H.

they said they hadn’t been speaking to this person. or they don’t requests for comment. But something. psycholo. they’d be asked. ogy at the University of Illinois at Urbana. <BW> When the women were being harassed. ironically. Roger Ailes. In a follow-up ommended Mr. social policy. if they felt they were sexually references. come forward? ically correct stuff. was even constitutional.” says Woodzicka. this data is so great!’ My stand these kinds of situations better. “and then just left there for the duration of later. Will she be believed? Can Court in New York.” LaFrance says. psychological effects of harassment.” The same why-didn’t-you.] If adviser. we played the women wait to game. A woman who’s employees have diplo. ‘Wow. it was Gretchen Carlson when she complained in-the-moment reactions. she was criticized for having kept until November 2010. professor emerita of psychol. many respond come into play. allegations are decades old. Later. In 2010 Champaign. at the Equal agreed-upon separa. But when 1980s. gists showed footage of the women’s inter- Kofi Annan. I’ve had a views—the interviewer asked if they wore “You might need to call on this person for hard time finding a new bras to work. “I like to believe that now we under- Contacted through entist was. But UN Veiled character attacks aside. Delgado.S. A. After mailed to me anony. If some.S.” says Hill. tion package. about her then-boss.” says LaFrance. there is an under- even my children apply angry. Six-thousand staff members chose me to speak with manage- ment about personnel matters. Earlier this year as genuine. Paula the incidents. “But people should remember that Lubbers didn’t respond to for women. in the Journal of Social Issues. a tain some kind of relationship. without exception. Lubbers woman would have come forward and said study published in 2004. anything. I reported it. law. setting. Employment Opportunity Commission). sional bridge? nity. who specializes in the Quitting is often not an option for people we petitioned the U. now a professor of job. the psycholo- be reprimanded.” she his personal website. Fitzgerald. So that was it. you’re going to have to main- mother?” I don’t know if I ior would be so stark.” internal investigation ver.” she says. Had I known back desirable—every woman. We have code of conduct Why do so many training. I appealed. says Louise the company. U. Jones got it in 1994 about Bill Clinton. I wasn’t allowed it was lobbed at former Fox News anchor Woodzicka and LaFrance studied only to see the report. women do. this is awful adds. in his hands. But I knew what the culture was really like. ‘Oh God.” <BW> . What they’d felt was fear.” When I sued. “But living paycheck to paycheck. would have done it. [Brzak was staff In October. During Anita Hill’s testimony before the the news. “Unless you’re willing to last name would be so questions. rational mously six months later. professor at Yale. But Fitzgerald Supreme Court to decide that’s not what happens. the more difficult it is to find a case. in what they believed were real job inter. assume been harassed might consider who did matic immunity. An sibly be telling the truth because “these the job interview. standing that if this is someone you worked for jobs. mouthing the polit. considerations about whether and how to In 2006. Senate Judiciary Committee about the sudden then Lubbers sive sexual provocation in a professional sexualized atmosphere she experienced gets asked to leave. that doesn’t mean it ——With Josh Eidelson their most common reaction was to smile.been there 24 years. 49 which upheld the immu. The women said they would get while working for Clarence Thomas in the I worked at the UN angry and refuse to put up with it. didn’t happen. I sued. because “the higher you go up the employ- They declined to hear the gists Julie Woodzicka and Marianne ment ladder.’ ” even if it takes them years.J. body actually did that … any reasonable bearing it. come forward at all. Donald Trump’s senior campaign “It was this fake placeholder smile that they council representative. second thought was. None reported the interviewer’s explain to future employers why you’re not Google-able that when behavior. and all of a fronted with inappropriate or aggres. and women’s studies at in 2004 that my weird sat through the interview and answered the Brandeis University. LaFrance interviewed 197 women about job to replace the one you’re leaving. Woodzicka and LaFrance subjected 50 of in touch with him and for following him when I accepted an the women to inappropriate comments across two jobs (one.S. who was say-something-earlier question has been views to men and women and found that secretary-general at the asked during almost every headline-making men were more likely to misread the smiles time. Fitzgerald explains. a I didn’t say “Enough!” who women accusing the now president-elect of professor at Washington and Lee University. District they were in that situation. I took they would come forward immediately if it and how important that person is to my case to U. quite reasonably. “My first response as a sci. however. it made what they would do if they were con. says highly paid women with prestigious if the diplomatic immunity In a landmark study published in 2001 careers also put up with harassment. “We really didn’t think the difference for. someone who holds a key to your future “What happened to your between their assumptions and their behav. decided not to do sexual-harassment scandal. would? So a few months past assault and harassment couldn’t pos. she afford to lose her job or burn a profes. “It’s like they were literally grinning and ified everything and rec. told MSNBC that the plastered on their face.


he argued. and no one in the pundit class seemed to believe he could hold himself together long enough to convince anyone he had Washington. her profile is terrible. Manafort looked a little beleaguered.” Hillary Clinton. was sharply dressed. His internal of polling. Manafort took Trump to the mountaintop. “I think once Donald Trump is accepted by the American people as somebody who can and be president. Bannon’s influence has By only grown. “To the 11 million voters in the several states we have to target. It’s a place . had the unenviable task of trying to soften the candi- day is date’s rough edges. he’d developed a taste for the finer things: handcrafted Italian suits and Parisian shirts. Now back on the scene after almost a decade out of the public eye. 19. it was math. Manafort had all but disappeared from view. He’d resigned from the campaign on Aug. ready “When that will be. the Hamptons. then step- ping aside when he saw that he wasn’t its most practical face.” he said. Manafort. His replacement.” This was. the very reason for Trump’s victory in November. as usual. with his appointment as chief White House strategist drawing attention to his ties with white nationalists and the alt-right. and we’re running against the epitome of Establishment. a group of reporters covering the presidential campaign packed themselves around a long table new for an on-the-record breakfast with Paul Manafort—the seasoned political hand who. Manafort calmly and steadily made a case and for how and why Trump would prevail. the first day of the 2016 Republican National Convention in Cleveland. The road to Cleveland had been rocky.” he said flatly. it was Manafort who had the discipline to get Trump past a dismal stretch of spring primaries and on a solid road to the nomination. about Trump’s lack of discipline.” By the time enough Americans had accepted Trump to make him our 45th president.A On the morning of July 18. many would now say. all but confirmed Clinton’s inability to transcend her base. But over the course of an hour. “We have a candidate who everybody recognizes is a change candidate. King I mean. some asked. But that morning in July. at the start of his long career as one of Washington’s most powerful political operatives. his divisiveness? About all that. along with elites like the people in the room. articulating the Kolker message the candidate would eventually ride to victory. Since the election. the reporters is seemed unconvinced. But during the campaign. let Trump be Trump. “Just like with Ronald Reagan. Breitbart News Executive Chairman Steve Bannon. The system. didn’t understand how struggling the Americans cared more about improving economic opportunity than addressing social issues. homes in Palm Beach. was “rigged. Trump was entering the con- to vention without the unified support of his party. as chairman of Donald Trump’s presidential campaign. 67. after one too many run-ins with the candidate about his temper and one too many exposés about Manafort’s alleged ties to Russian oligarchs.” he said. Manafort said.” This wasn’t just spin. while Bannon was making noise with the fringe and Republican National Committee Chairman Reince Robert Priebus was greasing wheels with the party faithful. Manafort simply referenced another insurgent Republican he’d worked for primed a lifetime ago. I don’t know. As one of the most successful lobbyists of the Reagan-Bush era. What. I think the race is over. “People don’t see her as 51 K Street somebody who can solve the problem.-Establish- ment. his volatility. coming and Trump Tower. the temperament to lead. he said. you tell me any candidate—I couldn’t pick one off the shelf better than Hillary Clinton to run against on change-vs.” Then Manafort paused. “This is an election about change. allowing a small tilt of the head and a smile.

Manafort knows well, where he still has contacts and friends.
For years, he was the King of K Street, defining the modern-day
cash-for-foreign-access lobbying system that Trump criticized
during his campaign but has embraced during the presidential
transition period. Manafort may never have the same visible
role in Trump’s inner circle that he once had, but he maintains
strong ties with key members of the transition team and with
Trump himself. It’s already clear from the transition that the pop-
ulist and nationalist platitudes of Trump’s rhetoric are colliding
with the realities of Washington. That leaves Manafort poised
to return to the role he knows best in D.C.: the most influential
man you’ll never see.
Manafort, who didn’t respond to requests to be interviewed
for this story, has always worked best in the dark. In this way,
he’s unlike many of the other political strategists of his vintage—
swashbuckling friends like Roger Stone, folksy colleagues like Lee Manafort with Trump and his daughter Ivanka at the
Atwater, and canny rivals like Karl Rove. Manafort came up in Republican National Convention
Washington as a young Republican in the 1970s, the same time as
Stone and Rove. As the middle-class son of a Republican mayor in that?’ Then he kind of walked away, and he said, ‘Very impres-
New Britain, Conn., “Manafort gets the Reagan Democrat phenom- sive.’ He was nodding his head. He got it.”
ena,” Stone says. “That is, the swing group that elects Nixon and Stone says Manafort was like Trump in that they were
Reagan. This is a silent majority, the coalition of white Southerners limited-government Reaganites, not empire-building neocon-
and Northern Catholics—blue collars.” After helping Gerald Ford servatives like Rove or Dick Cheney. But what motivated them
fend off an advance by Reagan in 1976, Manafort became one of both, more than ideology, exactly, was cash. “Paul is clearly
the first hires to help the Reagan campaign in 1980. Then, with driven by money, there’s no question about that,” says Stanton
his man in office, he became one of the first to cash in on his con- Anderson, one of Manafort’s oldest friends, who was also his
nections to the new White House. lawyer for 35 years. “He needed to make a lot of money to sustain
He started a lobbying business with Stone, Charlie Black his lifestyle.”
(Reagan’s 1980 political director, who also launched the career In the ’80s that was nothing to be ashamed of, especially on
of Jesse Helms), and Atwater (whose Willie Horton ad would help K Street. When Manafort was exposed later that decade for using
close the deal for George H.W. Bush in 1988). Aside from helping his connections to get a $43 million U.S. Department of Housing
52 Republicans such as Arlen Specter and Phil Gramm get elected, and Urban Development grant for a developer client, he testi-
the firm—which was called Black, Manafort, Stone & Atwater (later fied brazenly before Congress: “The technical term for what we
Black, Manafort, Stone & Kelly)—changed the way foreign influ- do is ‘lobby.’ For the purposes of today, I will stipulate that, in
ence worked in Washington. In 1984, when Philippine President a narrow sense, some people may term it ‘influence-peddling’.”
Ferdinand Marcos needed lobbying assistance, Manafort took the That quote would dog Manafort for the rest of his career. He was
contract. In 1986, when Angolan guerrilla leader Jonas Savimbi never charged for any crime, but for a moment he became what
needed an introduction in Washington, Manafort was there to he’d never hoped to be—visible, conspicuous, a target.

help. In 1998, when Nigerian dictator Sani Abacha wanted to con- The HUD project was an early attempt by Manafort to set up
vince Americans that he was a progressive democrat, Manafort’s a business for himself. There followed a real estate development
firm was there for him, too. “I am not one to knock honest greed,” company in Manhattan, which was accused in a 2011 civil suit of
William Safire wrote at the time, “but never has rainmaking seen being a money-laundering operation for one of his international
such moneymaking.” clients, the Ukrainian natural gas dealer Dmitry Firtash. The suit
Through many iterations of the firm and its roster of part- was dismissed, and nothing was ever proved, but it was clear
ners, what set Manafort and his colleagues apart was the hotline Manafort was circulating with oligarchs by then. They included
they had to the White House. “Manafort, at some point, became the aluminum magnate Oleg Deripaska, a friend of Vladimir Putin’s
a very valuable asset for the State Department, whom he was whom Manafort introduced to both Bob Dole (whom Manafort
working with,” Stone says. “If you look at all of our clients, they helped to secure the Republican nomination in 1996) and Arizona
were all pro-Western, they were all pro-United States. They all Senator John McCain. Those new friendships ended up backfiring
had good relationships with Ronald Reagan and his administra- on Manafort. The problem, old friends say, arose from his con-
tion.” Manafort continued to work on Republican presidential nection to a longtime client, Viktor Yanukovych, an unpolished
races, too, managing the 1988 convention for Bush. Stone remem- Ukrainian kleptocrat whom Manafort, Pygmalion-like, had trans-
bers bringing Trump, who’d become one of the firm’s clients, formed into a politician who was palatable enough to the coun-
into the convention’s production trailer to watch Manafort in try’s voters to win a presidential election. But Yanukovych was
action. Manafort had known Trump since the ’70s—they were also influenced by the Kremlin. When, in 2006, the American
said to have been introduced by the right-wing kingmaker Roy ambassador to Ukraine asked Manafort to get his client to stop
Cohn. Trump was now seeking help protecting his gambling bad-mouthing NATO, Manafort flatly refused. His friends say that
business from the rise of Indian casinos. (Black, Manafort’s old was the moment he crossed over. Where once he could rationalize
partner, remembers Trump being slow to pay his bills. “The his work by saying he was supporting American interests abroad,
stories you hear about him screwing subcontractors and all are doing well by doing good, he now seemed suspect.
undoubtedly true, but I always held out till I got my money,” When McCain became the Republican presidential nominee
Black says with a laugh.) At the ’88 convention, “Donald kind in 2008, friends recall that Manafort expected to work on the
of just soaked it all in,” Stone remembers. “And he asked a few campaign, just as he had for Dole, the elder Bush, and Reagan.
questions—‘What’s the purpose of this? What’s the purpose of McCain was practically family: His campaign manager was Rick

Davis, Manafort’s partner at the D.C. lobbying firm, by now called Paul is,” he says, “and he probably figures Paul did a good job
Davis Manafort. But when Davis’s association with Manafort’s for Yanukovych.” But the Trump connection isn’t convincing
Ukraine work threatened to make him look bad, Davis dis- to Black. “Putin’s a celebrity. Donald’s a celebrity. [Trump]
avowed everything, telling the Washington Post in 2008 that any doesn’t stop and think through the strategic foreign-policy
Ukrainian connections he might have “all relate to my private implications of things. He’s thinking, That guy’s a big dog, I’d
business and have nothing to do with Senator John McCain.” rather be friends with him than one of these weaklings like Jeb
Davis kept Manafort away from the campaign, and their firm Bush. That’s just the way he thinks.”
shut down. Anderson, a friend of both, says the two haven’t On the campaign trail, Manafort was conspicuous again, in the
spoken since. spotlight. He wasn’t enjoying it. That, as much as the challenge
“I thought Paul was permanently damaged by the international of guiding Trump, may have motivated him to step aside. Since
stuff,” Anderson says. “I’m not sure any other candidate would then, he hasn’t gone away so much as reverted to form, working
have brought him back, other than Trump.” behind the scenes. In the campaign’s final weeks, he was in close
touch with Trump; Politico reported that Manafort helped the
When Manafort joined the Trump campaign as a consultant this campaign develop a strategy to exploit the news when James
spring—he’s no longer registered as a lobbyist—many pundits Comey announced, 11 days before the election, that the FBI was
wrote him off as a has-been. Trump seemed desperate, in a looking at a new trove of e-mails from the private server Clinton
slump. He’d lost primaries in Wisconsin, Colorado, and North operated as secretary of state. In the closing days, according to
Dakota, and got 10 fewer Louisiana delegates than Ted Cruz, even Politico, Manafort encouraged Trump to go after blue-collar votes
though he’d won that primary. But within a month, Manafort in Michigan, which he did. Manafort’s advice, and his loyalty,
had engineered the departure of Corey Lewandowski as Trump’s proved useful until the end.
campaign manager and taken over as chairman. He righted the
ship, amassing enough delegates to bring Trump the nomina- After the selection of Mike Pence as Trump’s running mate,
tion. Then the narrative changed. Now Manafort was Trump’s Manafort said he believed Pence could do for Trump what James
Rasputin—an oligarch whisperer who’d worked his black magic Baker III did for Reagan: introduce the outsider to Washington
in Ukraine and now was doing it for Trump. and help him through the transition. It was another perfect pre-
The media resumed the investigations into Manafort’s murky diction. Pence indeed is running Trump’s transition. A source
Russian connections. Was he a highly paid agent of the Kremlin, close to Manafort says he’s in regular contact with the vice pres-
scheming to alter the Republican platform to help Putin’s inter- ident-elect, as well as with Trump’s attorney general pick, Jeff
ests? When Manafort had started consulting in Ukraine, such Sessions, the Republican senator from Alabama and a Trump
work wasn’t stigmatized in the way it became after the 2014 supporter and confidant. (Manafort and Sessions have known
Ukrainian Revolution, when outbreaks of violence resulted in
the ouster of Yanukovych, then the president, who’d balked at
aligning the country less with Russia and more with Europe. That
Yanukovych was on the wrong side of the revolution was one

thing; the bigger problem was that Manafort didn’t seem to mind.
“It was like he was willing to throw away the perspective that he ANY OTHER
came to that country with, the Reagan perspective,” says Jeff Link,
a Democratic consultant who, with David Axelrod’s firm, worked
for Yanukovych’s opponent, Yulia Tymoshenko. Link believes
Manafort must have been willing to “just walk away from that
[perspective] apparently for the contract. Because I can’t imagine HAVE BROUGHT
that he embraced that ideologically.”
Aside from his teenage criminal record of assault and HIM BACK, OTH E
robbery, Yanukovych was most famous for the culture of graft
he instilled. “No one doubted that Yanukovych was scummy,”
says Andrew Weiss, who oversees Russia and Eurasia research
for the Carnegie Endowment for International Peace. “He was RU
surrounded by all these thugs and then went on this kind of
rapacious push.” Last summer, the New York Times seemed to
M P”
connect the dots between Manafort and that corruption when each other since the ’70s.) And Manafort is also close with Tom
it uncovered a registry suggesting that he received more than Barrack, the billionaire founder of Colony Capital, who has a
$12 million in cash from Yanukovych’s political party from 2007 spot at the top of Trump’s inaugural committee.
to 2012. There was no proof of any such transfer, just his name Friends say Manafort wouldn’t want to become a lobbyist
listed 22 times. Manafort denied he received the money. again or to have a concrete role with the administration; that
Even if Yanukovych wasn’t exactly a favorite of Putin’s, his would be too confining. But the Washington that Trump’s team
policies benefited oligarchs who are friends of Putin’s. That will govern in is a place Manafort understands and had a strong
potential conflict made Manafort a target when he joined hand in shaping. It’s a matter of time, perhaps, before his par-
Trump’s team. Manafort, for his part, has roundly denied any ticular set of skills will be put to use again. And given the Trump
connection to Russia, most recently telling NBC that the accusa- team’s apparent warmth toward Russia, there should be plenty
tion was “Democratic propaganda.” Asked if there’s any possi- for the King of K Street to do—and plenty of money to be made
ble truth to the notion that Trump chose Manafort because he doing it.
had access to Putin and that the Kremlin was dictating policy The night of Nov. 8, Stone got a text from his old friend, at the
and even hacking the opposition with Manafort’s help, his old exact moment one of the news outlets was calling the race for
lobbying partner Black laughs. “Putin certainly knows who their man. The message was just four words: “How sweet it is.” <BW>

THE GUY BEHIND KIND COME IN FOR A NIGHTCAP BUILD YOUR ROLODEXXX ‘MISS SLOANE’ MISSES How it became the color of our time By Jennifer Miller Photograph by Sara Cwynar .

Marlien Rentmeester. is prettier for the girl. “Buying a pink lipstick is not that big There’s more than one way to name a pink Mineral pink Burnished Pale shell Shell Some of the ones J. in a series of hibiscus-hued pots and ad campaigns for Acne Studios and online beauty company platters this year because it provided Glossier. ger color. and in the pantsuits worn by Hillary Clinton. as a path to happiness. is more suitable for the boy. was combing the racks at promoting the color Shareen Vintage in Manhattan’s Chelsea neighbor. and women were more involved in the decision. making bubble-gum-colored jerseys in the Girls in America. Catalogs advertised pink appliances. second presidential debate. white because stains were more easily bleached. and bowler hats. respectively. which is Brands have long marketed pink in retrograde ways. Bathrooms and kitchens were painted “Mamie” City Department of Consumer Affairs. tapping into the same vibe Rentmeester felt.” cool. and pink is an even greater phe. says nomenon. cars. (Some pundits suggested the bow curator of fashion arts at the Museum of Fine Arts in Boston.” Rentmeester says. A 1918 making it our own.” Where J. purse. a two-door hardtop fall. author of Pink and Blue: Telling the Boys From 56 to women’s wear. they weren’t divided by gender.” That reclamation is a story that’s not just article in Earnshaw’s Infants’ Department. when a fuchsia A-line frock caught her eye. of women on the rise financially. largely as an anti- And pink products are often considered specialty items. according to a 2015 report by the New York upholstery. such as Gucci and Chanel that I wore it out of the store. they’re routinely priced higher than identical products wartime. and marketed to men.) “We interpret our environ. culturally. while blue. as dote to the military-inspired fashions and textile rationing of such. or even brands “It was so shockingly pink.” Now she says the color is emblematic cations director. so cool and different. and bold. This introduced the pink and white La Femme. Will Copenhaver. founder of you. “On the have recast it as funky and street. In an e-mail. explained that “pink. Jenna Lyons. Rentmeester long considered pink “fussy. and lip- tastes—promoted its new line around hundreds of custom.Crew—a struggling company but still a bellwether of mass that came with a matching umbrella. “there were no the pink pussy-bow Gucci blouse Melania Trump wore to the strong gender associations with pink. who wore a pink Now. “Pink stores began to introduce “baby pink” and “baby blue” into is unapologetic. and blouses. In the months that followed. compact. high. and like kale.” recently.” she says. the former West Coast editor for shopping mag. It was only after World War II that a strategy the league started phasing out early this decade. Even azine Lucky. for the company’s spring line. Etc. In 1955. companies are imbuing pink with all sorts of positive peau de soie gown to the 1953 inaugural ball. and politically— The idea that the color could be something other than even if Clinton’s pink pantsuits didn’t get as much attention as a feminine stereotype isn’t new. brands began marketing pastels to women.Crew is the fashion site Le Catch. “Pink as a marketing device was just too limiting. it is good for Coming of the Motor Age. J.” says can have its own marketing team. cookware maker Le Creuset launched she started seeing pink everywhere: on streetwear blogs. wallpaper. At the time. families were starting to buy multiple developed shades of pink. had a sharp eye. the NFL took a “pink-it-and-shrink-it” approach Jo Paoletti. a trade publica- about skirts. Dodge associations. Marketing I n September 2013. pantsuits. so can pink! We feel that Virginia Scharff. babies of both genders were dressed in them by the p----” tape leaked. We’re taking it back and kids’ departments. author of Taking the Wheel: Women and the color is a natural mood enhancer. presi. hood.Crew has come up with: pink Sherbet Coral rose Light mauve Sharp pink Whisper pink Glamorous Pomegranate Faded shell Palazzo pink Rose dust Standard Tea rose Buff pink pink Bright Jasmine Crisp pink Light pink Heather Heather Crisp begonia Flamingo Pale jasmine Coral pink raspberry Dark peony beet quartz begonia Rose quartz Burnished Redwood Mauve blush Pink Light blush Burnished Heather Flash pink Vintage pink rose blush Victorian pink grapefruit Punch shell blossom Azalea Fuchsia Spiced rose Shocking Soft blush Sunset coral Burnished Sweet guava Deep rose Larkspur pink Petal Coral pink Subtle pink Bright pink coral Pink blossom Heather Pink Desert rose Rose petal Ashford berry Seashell pink Sun-washed Berry rosebud Powder Pale coral Peony Neon Bright pink Neon flame Heather deep Ash pink Tropical pink Heather petal peppermint sherbet Desert pink Warm blush coral Vintage shell Pale blossom Peppermint Classic pink Romance Metallic blush Fresh Heather Pink hibiscus Paris pink Tawny pink Vintage pink Light blossom berry Pink bouquet Heather shell Cranberry quartz Rose apple flamingo Raspberry Dusty Pink Caribbean punch Fresh Barbados Tropical Golden rose blossom lemonade pink Persian pink raspberry cherry guava Bright fuchsia Vivid fuchsia Iced blush Cool pink Heather Vintage berry Dark flamingo Sweet Vintage Vintage blush Frosty petal Frosty berry Dusty pink blush Pale hibiscus Urban pink blossom fuchsia Bright Sweet Wild petunia Bright berry Heather Flamingo Sorbet Pale rose Bright rhubarb fuchsia Stanton pink Light pink peony pink Blossom Picador pink flamingo Blush Soft peony Neon pink Pinup pink Seaside coral Sail pink Ballet pink Neon fuchsia . marketing communi- babyish. pink. but about how fashion tion. dainty. “took generations” to sink in. explained that pink was worthy And yet the company stopped producing La Femmes a year of the same rebrand as a once-sidelined vegetable: “If kale later. was a subtle rebuke to her husband’s critics after the “grab Until World War I. so named for Dwight Eisenhower’s wife. with pink bomber jackets Rentmeester. women were giving me compliments left and right. being a more decided and stron- can upend larger cultural ideas about power and gender. stick case. “vibrancy” and a “strong anchor” Fast-forward to 2016. Historically.” says Michelle Finamore. dent and creative director. Even when ment through the colors we wear. dramatic. says modern associations with the colors women’s sizes rather than offering choices in team colors. Until more delicate and dainty.

Pantone named a second color of 57 Michael who appears in pink footsie pajamas. Rentmeester’s told Danler is unusual for a book jacket. less important than more practical ones.” she says. Etc.) But. But that’s no longer true. People are looking for calm. As early as 2014. a favor- Fashion historians say our recent understand. ite label among stylish men. Pantone found examples of com- nature argument wrong. whereas later on “it was it’s symbolic of the age we’re living in. she says. says because it’s symbolic of the Paoletti. and she was right. when it became common for parents to learn the sex of their unborn babies. viewed the color in the ’50s vs.” Pressman says.” Paoletti says.” she says. pink ment color.” By the mid-1960s. It also explains why the ing of pink as an explicitly feminine color only Pantone Color Institute. which analyzes global color trends. Not one of the iconic prin. by using pink accents in décor. as challenging. reduce stress. ent order of magnitude. pink was presented as a fashion. White.” She thought millennial women was marketed as a warm-weather color. Cinderella (1950). “But I saw it as a state. now that pink has become chic among mil- charge at work.500 times on Instagram—which Knopf Anne Fontaine moto jacket through November. young people of The un-gendering of pink helps explain why Gucci.5 billion princess studies in which shades of pink have been shown to soothe empire. Sophia Amoruso’s best-seller about taking Of course. “You’d never find it would feel the same way. These are ciated with women in the ’50s. the institute’s vice president. People are facto girl’s color.” she says. Laurie Pressman. it became the de turbulent times. was blush. it’s fair to be skeptical of marketing that leverages who wrote the hit coming-of-age novel Sweetbitter. cesses drawn prior to 1960 is known solely for wearing pink. why the buzziest color of Common Projects sneakers. looking to sell books and footwear? How long until the back- tionship with pink because it symbolizes femininity and lash begins. often as complements to each other. Since May the this time of the year. those questions are PHOTOGRAPH BY SARA CWYNAR FOR BLOOMBERG BUSINESSWEEK. In Peter Pan (1953). pink’s cross-gender appeal is part of its brands were no longer exhorting women popularity: “There’s so much androgyny and fluidity that I to “think pink. Paoletti says. the ’80s and ’90s. Buying a pink car is a differ. of #GirlBoss. And because pink had been asso- age we’re living in.” Danler says. The irony is that Disney itself proves the unruly students or prisoners. it’s baby This year. a wellness and mindfulness. as stores could sell boy and girl versions of everything. for the first time. but in fact. starring Molly Ringwald. “I know that women have an ambivalent rela.” The counterculture drove didn’t think people”—men or women—“would be scared of fashion. “These are presented as part of [girls’] nature. Some people at the answer was unequivocal: “Go for pink all winter long!” <BW> Bohemian Copper rose Dusty petal Sheer pink Deep blush Guava berry Island coral Provence Sweet blush rose Dark azalea Pink sand Ornamental Neon azalea Soft rose Neon dahlia pink Pink frost  Fuchsia Heather Pale pink pink Pink begonia Rose Ashen clay Picturesque Sweet blossom geranium Dusty bloom Soft seashell Dried papaya blossom Faded quartz pink papaya Clay sand Light Sweet Summer Fuchsia Peppermint Retro pink Fresh guava Heirloom Iced quartz hibiscus jasmine sorbet bloom ice Dark berry Frosty pink Vintage rose Pink mist Oxford pink Bright azalea Neon petal Ash rose Retro fuchsia blossom Desert Dahlia Misty rose Faded Summer pink Soft blossom Soft fuchsia Decorative Fresh sunset Light shell Pampered blossom Wild berry Bright coral Brilliant coral pink bouquet Dusty quartz Winter coral pink Bright papaya Fresh peony Neon Pale petal Warm pink Brilliant Spiced guava Iced rose Deep coral Bright rose primrose Coastal pink Fresh berry peony Hot pink Heather Petunia Soft azalea Soft berry Coral reef Dark bloom Neon Heather snapdragon Brilliant Heather pink Pale rhubarb Wild peony Dusty dahlia hibiscus petunia Wild rose azalea Bright Dusty peony Intense pink Carnival Soft petal Pink oxford Pure pink Autumn berry peppermint Distressed blossom Neon rose Dusty Guava Heather Antique pink quartz Wild Dover pink begonia Sweet dahlia sorbet Jasmine pink Soft pink strawberry Pale bloom Fresh papaya Neon Rose ash Pale blush Faded guava Neon coral Dusty blush Metallic rose Bauble pink blossom Light Powder pink Soft begonia Sunwashed Hibiscus Capri pink Jasmine Dried rose Beet flamingo Romantic Brilliant blush Wildflower Neon Light berry Bright tulip Bright dahlia Dark mauve pink poppy Dusty shell pink flamingo Sunset pink Dark begonia Coral shell Tulip Sweetbriar Pink wash Burnished Vibrant berry Fresh rose Begonia Faded blush Heather Quartz Vivid coral Smoky rose rouge Daybreak Pale fuchsia Shore pink Delicate petal raspberry Bright guava Dusty rose Neon berry Shell pink pink Festive pink Peruvian pink Icy rose . Are publishers and fashion houses interested in so excited when she first saw her book’s salmon-pink supporting a feminist cultural movement? Or are they just cover. emerged in the ’80s. an investment. Off- both genders were more inclined to wear flowered pat. the year: a pale blue called Serenity. lennials.000 copies. there’s a distinction between how people named rose quartz a 2016 color of the year.” She points to with help from Walt Disney’s $5. was the color. (1959) are all featured in blue. in particular.CREW has been traditionally weak. novel has sold more than 100. and the Sleeping Beauty office space. is pale pink. color With the reappropriation of pink.” This happened turbulent times. It’s why the cover mercial spheres. (See: the 1986 John Hughes classic looking for calm” Pretty in Pink. ILLUSTRATIONS BY 731. “A color becomes popular because cultural choice. CLOTHING COURTESY J. and Pigalle all released pink menswear in 2016—and terns and vibrant colors. “A color becomes popular This created a marketing opportunity. says pale pink is associated with “In the 1950s. It’s why Stephanie Danler. from the latter half of the color. the decade through the ’70s. and the cover has A Le Catch reader recently asked if she could wear her pink been tagged at least 2. millennial women have experts began spotting an uptick in both shades across com- turned the dictate back into a choice. publisher worried the cover would alienate male readers. and bring wellness-focused measures into the Snow White (1937). Historically. panies that are “trying to help create balance for employees. if it hasn’t already? For now.

Stir. . Top with cracked ice. bar manager at New York’s famed. Corn ’n’ Oil the Standard mixes the two with a little rhum agricole and lemon If a nightcap can help you unwind and make you think you’re on to create a sweet. GETTY Kyle Davidson’s Chicago bar Elske is opening soon. Add amaro. Once it does. 1 ½ oz. sweet vermouth 1 dash Angostura bitters Remove tea bag. It’s great for settling your stomach before bed. The White 1 ½ oz. is happy to oblige and carry you away to the Caribbean. steeped in 4 oz. newly reopened speakeasy Chumley’s. Barbados rum. coconut milk ½ oz. tropical night- a tropical island. including the squeezed lime. rhum agricole 2 oz. beverage time treat. Weller 90 proof or Wild Turkey 101) Chamomile plus coconut milk is about as mellow as it gets. 58 After-School Special PHOTOGRAPH BY CAROLINE TOMPKINS FOR BLOOMBERG BUSINESSWEEK. makes this soothing concoction with a dash of amaro. and bitters. lemon simple syrup 2 or 3 heavy dashes Angostura bitters (one part lemon juice. Stir. Chef Ari Pour over rocks.L. Drop in a lemon wedge. By Sierra Tishgart Grand Street Cocktail Jessie Duré. Taylor’s Velvet Falernum ¾ oz. such as Mount Gay 1 ½ oz. Mix ingredients. vermouth. Cynar 1 ½ oz. One bag of Sleepytime tea. Taymor of Los Angeles’s Alma at Add an optional orange peel or slice. John D. bourbon (whatever you have Walker on hand—Davidson likes W. Anthony Schmidt. Etc. Jiggle the glass. A squeeze of lime one part simple syrup) Mix ingredients. Amaro Montenegro ½ oz. he’ll be unwinding with this supersimple twist on the Manhattan. director at San Diego’s new tiki-inspired bar False Idol. Drinks Fancy a Nightcap? Eight ways to upgrade your end-of-day drink. PHOTOS: ALAMY. hot chamomile tea 2 oz. so much the better. of hot water for 3 minutes ½ oz.

If you have club soda. Rum & Tonic “A nightcap for me usually revolves around Etc. and it’ll gussy up whatever booze you have on hand... 2 oz. Pineapple Rum Rickey 2 oz. It’s easy to stock in the fridge and easy on the stomach. mixing. D. Jon Lewis of the Rue bistro in Portland. couple fingers of bourbon or brandy—but if it could out the craziness of the day. Stir and top with A nightcap doesn’t have to be much more than a sweetness and acidity to balance tonic and a squeeze of lime. lime juice 1 oz. 1 bottle Fever-Tree tonic who opened his restaurant. pineapple juice ½ oz. muddle it in the shaker prior to Stir with ice and strain into a coupe. 59 Play Crack the Sky On a cold night. made with exotic roots and spices. looks for evenly matched Pour rum and bitters over ice.C. Louis. Serve over a big ice cube with an optional orange peel garnish. genepi ½ oz.C. Old Grand-Dad. ¾ oz. recommends this spicy cocktail to warm things up. Pour over ice. aged rum. with some of that. 2 dashes orange bitters Stir. Black Strap ciously autumnal drink. 2 oz.. Shaw 1 lime wedge Off Broadway Bijou. Punt e Mes 1 dash Miracle Mile Forbidden bitters Stir. apple brandy ¾ oz. co-owner of Vicia in St. wouldn’t you want that? Bartender Kevin King from McCrady’s Tavern in Charleston. simple syrup 1 oz. top it Garnish with a twist. in November. If you have mint on hand. be both. Miracle Mile bitters. bourbon 1 oz. pairs well with any aged amber spirit. sweet vermouth Combine all ingredients in a shaker. S.” says Tara Gallina. 100 proof ½ oz. too. dark rum 2 dashes Angostura bitters Top Chef alum Kwame Onwuachi. really good tonic water. in Washington. . such as Cruzan uses apple brandy and orange bitters in this deli. Ore.

an erotic escape—of course the argument The scene isn’t quite as scandalous as though the largest group is lawyers. But gatherings that provide a safe exclusively heterosexual. Skirt Club is simply to provide tered was “men grabbing and a safe space for women to pushing and insisting and enjoy one another’s company putting pressure on women to under the liberating rubric of fulfill their fantasies.” That was as the images that some minds because. erful. She’d been explor. I did.. leaning in to take a lime out hiring all-female bar staff. Skirt Clubbers are often profes. On could be made that. and six is exclusively society Skirt Club. for new members. she realized. and Berlin.” i n g E n g l i shwo m a n wh o no sexual contact or “heavy described me as Jodie Foster- petting” are allowed.” she says. “It’s high time we have and kibitz online about gender our own. average. three is per- of the all-women networking space for women to support and learn fectly bisexual. for each event. attendee. After paying venue fees.A. such as the Wing in New on the six-point Kinsey scale—one is Geneviève LeJeune.” The way LeJeune sees far. a thor. “We’ve had gentlemen’s ronment: Women today regu.000 lives in at Mmhmmm. and the club’s membership of 5. the monetization of empow- fidence in the bedroom leads erment. Although Skirt Club is eroticism. in the U. of a woman’s puckered lips and purchasing “hundreds makes a woman more likely to of bottles of Champagne” lean in at the office. networking 60 it sounds. sionals with entrepreneurial leanings. sexual exploration. the London. but all she encoun. While red bottoms of her Louboutins reflecting 14 percent per quarter. Workplace NETWORKING AT NIGHT Skirt Club wants to help women be as confident in the boardroom as they are in the boudoir By Megan Koester D o you think you might get on politics.” <BW> .” One L. “Some of them are in a about 75 female professionals on their sexuality are rare. One of the barely Chicago. heard about it from her boyfriend.S.. party as a networking opportunity than transferred via kiss.” LeJeune says. though occasional edu- lines of salt are spread down her legs. clubs for centuries. to lick the salt and down a tequila shot year. more of the women seem to use the will be rewarded with a slice of lime. partner. it. ited little from Skirt Club so room. The fastest woman the clubs were introduced earlier this activity such as the body tequila table. Etc. where it’s growing an average of cational workshops cost more. but LeJeune has prof- to confidence in the board.) isn’t just about tequila-soaked Much has been made of fun.” LeJeune larly convene at conferences says. who are ing versions of these parties vetted for the legitimacy of PHOTOGRAPH BY CAIT OPPERMANN FOR BLOOMBERG BUSINESSWEEK in her native London three their interest. More than half paid her admission—$50 for the event clad attendees stretches herself out.A. she says she LeJeune. (If you’re won- bills itself in press releases as an dering whether I exchanged “underground ‘play party’ for business cards with a charm- bisexual & bi-curious women. started Skirt feels as if she’s “running a Club as an experiment—the charity. where each event features some kind of central in the mirrored walls. The founder York. first event was held in her she’ll impose an initiation fee living room. And it esque. they might conjure. growth is at 22 percent per quarter. Miami. too. who the goings-on inside. in L. relationship. and Toronto. not to mention attend women. “and the Sunset Strip in Los Angeles at There are now Skirt Clubs in London. While that “I didn’t see women asking to aspiration may not be as filthy fulfill their own.” Starting next year. Skirt Club’s motto is “con. Her goal with years ago. LeJeune is with from one another while also embracing homosexual. New York. it’s more pow- weren’t in a comfortable envi. 34. oughly appropriate name considering with plans to expand to San Francisco. have come with the consent of their a bar called Mmhmmm. members self-identify as twos the body tequila table?” asks only social clubs. a therapist. Sydney.

The Put those reflections to use on the business has become a model of corporate 29th. stepped aside category of behaviors. mined Capricorn two days later on the like checking for your keys on your way K firing Jim are all good Right move? Nine new Four Seasons resources. Home Depot’s stock lost more than a pitals. 3. Uranus returns to forward Kathleen Taylor. Ont. put it in your “no choice” a coffee giant in the 1990s. who built Starbucks into ning of the year. on how to multiple biopics made about Sculley. the planet of sudden change and progressive reason- 60° A sextile—when the planets form a 60-degree angle with Rowe. the winter solstice. Onward. emotional Venus enters and went against him. 2. who’d been with Four motion after having been retrograde for Seasons since 1989. That day. but at your company. and find ways to help others. Put day-to-day business aside and CEO John Sculley called an emergency block out time to come up with goals for board meeting after learning that co-founder Steve Jobs was planning to oust the future. self taking a big leap forward. Judith Beck. Pisces also rules prisons and hos. resolve. was the heir apparent to founder Isadore Sharp before taking a good chunk of 2016. under the sign of compassion and sym. inventive. the top job. the planet of abstract thinking. alongside things as CEO in 2000. according to W. �Amanda L Gordon properties have come online this year alone. But don’t put make a New Year’s resolution stick: those ideas in place until the 13th.. as they will be all next Western University in London. example: managing your time better CEO. The board thought Jobs was erratic On the 7th. 2013 goals. there. This could open For guidance in determining where over the CEO job in 2010. Giving in to defeatist Robert Nardelli wasn’t interested in an the full moon in sociable Gemini creates impulses is habit-forming. Think small. socially conscious Aquarius. biography. he returned in 2008. the earth—is considered 8 a harmonious alignment. the planet of long-range planning. and it might .: year. when Home Depot. are working together at the begin. 2008 into retrograde. Astrology Etc. Charity Navigator (charitynavigator some speculated that she hadn’t expanded aggressively enough. which can be a out the door. E R HORO B S C EM By Ashleigh D. kids in bed. The sun enters deter. soon be a reality. Mercury goes Starbucks. Make sure the stepped aside. as it was at the begin. Also on the 19th. for something you can achieve. Aim extended grooming period before assuming opportunities for fruitful partnerships. 2000 1. Focus on the payoff. For Right move? Over Nardelli’s seven years as pathy. outweigh the disadvantages. when the new moon in Capricorn social responsibility.” retrograde gives 2016 a natural bookend— Right move? Schultz saw Starbucks you should feel more reflective than sad. so then-CEO Arthur Blank Mars moves into Pisces on the 19th. CharityWatch (charitywatch. <BW> and GiveWell (givewell. associate professor of strategic ing. an explanation for Taylor’s departure. gives you the chance to restate long-term Four Seasons Hotels. so you might focus your giving during the day so you’re home to put the third of its value. Lock yourself president of the Beck Institute for Cognitive Behavior Right move? There probably won’t be making it a good time to turn outward Therapy in Bala Cynwyd. . but Mercury going the company to its “core values. 1985 sextile. management at Ivey Business School at ning of December. There was never the door to sudden leadership changes to make charitable contributions. that he wanted to return somber time of year. when Jupiter and Saturn form a Apple. He was fired in 2007. Glenn And you’ll have help: Saturn. despite the company being putting the planet of drive and willpower advantages of changing your behavior in good health. so start imagining your. BBB Wise Giving Alliance (give. Johnson O C PE DE k Four of the more surprising corporate leadership changes. 61 him. Whatever you Howard Schultz. through the lean times of the recession. and Uranus. Schultz wrote in his 2011 21st.

the case she makes proves too worldwide box office. SANTA 2 ? Smoking. First-time screenwriter Jonathan character—played by an ice-cold It’s a shame. It’s wrong. When he stops a bad guy with Surprise! ing the public face of the movement. <BW> . Samuel Colt made but the script also shares could take back. a piece of legislation propos- FACTUAL OR BAD Insider and Jason Reitman’s satirical Thank You for headlines conversation. the male-dominated industry while fending more moment. The film is. full of twists and turns and. it stands always justifies the means. In Sloane’s world. not bad that rode sturdy performances and topi. Michael Mann thriller The wonkery and Academy Awards buzz might coalesce into a single.” female support for the Second Amend. with a gun. a high-stakes political drama are up for a taut political counterfactual mostly by her new boss (Mark Strong). KERRY HAYES/EUROPACORP winner Spotlight. ambitious woman—a But Sloane’s conver. When her boss (Sam by Oscar nominee John Madden. about a strong. the end lobbyist. Eventually she’s dragged in the movie political verisimilitude. But it’s also ment (one suggested slogan: “God created for conspiracy. The Critic REALITY BITES Miss Sloane’s release coincides with a moment that didn’t happen. the title sit through Bad Santa 2. and tax evasion— a line the filmmakers might wish they women. By David Walters I n a memorable scene from Miss in two directions. she abruptly DNA with two Big Tobacco tributor EuropaCorp sought a late Novem- ber release for Miss Sloane. Lithgow) to answer for her professional guys—can stop Sloane. the type of rat- mittee that suspects it has backed kicker. tious script. industry in those films. To rouse congressional pro-gun contingent in Miss Sloane isn’t a off sexism to get meaningful work done. Chastain pops as Elizabeth Sloane. that. Etc. a small-studio offering front of a holier-than-thou senator ( John Still. Miss She also lies. no matter compelling. joining a competing lobbying firm TAUT POLITICAL political films of the late 1990s and early 2000s: the a moment when post-election policy to ensure the passage of COUNTER. ripped-from-the- the Heaton-Harris bill. The question is whether to send holiday movie-season audiences how often she’s told she’s gone too far audiences will want to listen. Instead. nothing—not good guys. It’s worth noting all. perhaps most satisfying. after ing tighter gun control. ist Jack Abramoff—who went to prison As zingers go.” she says. it lends credence to the National Under different circumstances. fraud.) Perera making sure you surprise them—and they Waterston) recruits her to drum up more was inspired by real-life former lobby- don’t surprise you. of a lobbyist to a Senate ethics com. because there’s a lot to Perera delivers a surprisingly ambi- Jessica Chastain—describes the job like. 62 about a Capitol Hill power broker and scaring away people who’d prefer to who’s more of a not-by-any-means guy. cheats. “Lobbying who learns all the rules so she can better West Wing fans. taking on the gun lobby. and has emotion. (The movie is directed is about foresight. support. Rifle Association’s cherished ideal that Sloane might have emerged as this year’s less sex with a high-priced male escort more guns equals more safety—and gives soapier answer to 2016 Best Picture ( Jake Lacy). “It’s about circumvent them. it’s OK. unlike the cigarette Washington heavyweight—navigating a sion isn’t a go-and-sin-no. an insomniac workaholic and grade-A ass. it anticipated switches sides. There’s even a good guy The timing looked perfect. a gun. them equal!”). When French indie dis. the kind of unscrupulous lobbyist a-tat dialogue that warms the hearts of her into a corner. survivor (Gugu Mbatha-Raw) into becom. she dupes a school-shooting boo-hiss villain. drawing in those who this time—and she gets told that a lot. Sloane. Like any good cality to critical acclaim and an $88 million indiscretions.

Tell me about your shoes. The green PHOTOGRAPH BY CHRISTOPHER LEAMAN FOR BLOOMBERG BUSINESSWEEK some give. the mix of bars and restaurants. or managing the preopening buzz. I have an touch. They’re trainers in style. ESSENTIEL ANTHONY WARBY PARKER INGHAM 44. I got the red-and- though they’re white one at Davos in tight. so even LEE I do. The print It’s nice that you aversion is tiny dogs. What I Wear to Work Etc. W Hotels. they have Switzerland. you can but the uppers are leather. What do you do for W? I oversee any part of the W experience that touches the consumer. global brand leader. New York What’s your day to day like? I move from dealing with real estate investors—who are generally a more corporate type—to mixing with our music director. I found these in London years ago. and they were Do you always wear such a perfect fit. Can you so they’re formal and casual tell I’m an impulse shopper? at the same time. get to wear jeans to suits. LUCIO CASTRO APPLE 63 How would you describe your style? Cool shirt. the design process. one I found randomly LINKS OF LONDON in Cape Town. They’re so affordable. who’s covered in tattoos and has a full beard. whether that has to do with where we build new Ws. bracelets? They’re slightly BALLY elastic. just buy lots of them. OLIVER SWEENEY Interview by Jason Chen . on the job. I like your glasses. Traditional cuts with It has whimsical elements that give urban streetwear—I like it a lighthearted mixing it up.

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