A Way Forward a W a Y for Wa Rd Rd • January 2013
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JAN 2013 A Way Forward A W A Y FOR wa RD • JANUARY 2013 JANUARY DAVOS 2013: HOW EUROPE CAN BE SAVED THE MIDDLE CLAss MATRIARCHY SHANGHAI SWOON WHAT’S BUGGING the SWIss? Connect emission-free power to the grid? Electric cars: 15 minutes charging, 200 km driving? ABB is helping construct the world’s most remote offshore wind farm. Having to wait eight hours to fully recharge an electric car is the main reason for not Using our eco-friendly transmission technology, this 400-megawatt buying one. But things have changed: With ABB’s direct current (DC) chargers charging plant is expected to avoid 1.5 million tons of CO2 emissions per year time has been slashed to as little as 15 to 30 minutes. No wonder the Estonian govern- and improve the reliability of the power grid. It’s just one of the ways ment is relying on ABB to build Europe’s largest electric vehicle fast-charging network. that we, as the biggest supplier of electrical products and services for By the end of the year the Estonian main roads will have fast chargers every 50 km. Once the wind industry, can use renewable power sources to help combat accomplished the goal to significantly reduce CO2 emissions by 2020 moves a lot closer. climate change. www.abb.com/betterworld Naturally. www.abb.com/betterworld Certainly. Ad_ABB_2Sujets_Reuters_on_sale_Jan28_431-8x276-225_e.indd 1 11.12.12 15:46 Connect emission-free power to the grid? Electric cars: 15 minutes charging, 200 km driving? ABB is helping construct the world’s most remote offshore wind farm. Having to wait eight hours to fully recharge an electric car is the main reason for not Using our eco-friendly transmission technology, this 400-megawatt buying one. But things have changed: With ABB’s direct current (DC) chargers charging plant is expected to avoid 1.5 million tons of CO2 emissions per year time has been slashed to as little as 15 to 30 minutes. No wonder the Estonian govern- and improve the reliability of the power grid. It’s just one of the ways ment is relying on ABB to build Europe’s largest electric vehicle fast-charging network. that we, as the biggest supplier of electrical products and services for By the end of the year the Estonian main roads will have fast chargers every 50 km. Once the wind industry, can use renewable power sources to help combat accomplished the goal to significantly reduce CO2 emissions by 2020 moves a lot closer. climate change. www.abb.com/betterworld Naturally. www.abb.com/betterworld Certainly. Ad_ABB_2Sujets_Reuters_on_sale_Jan28_431-8x276-225_e.indd 1 11.12.12 15:46 E d itor’s L et ter their union to constituents. The solution, he argues, is to offer the continent’s people clearer democratic choices that can lay the foundation for an economic resurgence. The leadership required is where German Chancellor Angela Merkel comes in. China remains an economic head-scratcher: How is it that the country whose economy has more than quadrupled in a decade has produced such poor re- turns for investors? And does the recent market downturn there signal a broader slowdown that will EACH YEAR, the World Economic Forum terrifies us be felt around the world? Probably not, writes Break- with a litany of global risks, while challenging us to make ingViews columnist Peter Thal Larsen. In explaining better use of facts and reason to address our problems. why, he provides useful insight to investors and offers Tackling that challenge is what Reuters and its parent, at least a measure of optimism. Thomson Reuters, do every day: harnessing information Veteran science writer Sharon Begley calls our atten- of all kinds from all places to help people make more in- tion to a serious, nonfinancial risk: a global outbreak telligent decisions. And that’s what we attempt to do in of flu or some other highly contagious disease. As she this issue of Reuters Magazine, “The Way Forward.” shows, governments and business leaders are working Certainly, the mood at Davos and similar gather- to ascertain the potential economic cost of a pandemic, ings has been far from upbeat in recent years. Since the if only to know what it’s worth to contain one. Trust me, world financial system fell off a ledge (not to be con- you’ll make sure to get your flu shot after reading this. fused with a fiscal cliff) in 2008, the economic recov- Also check out our in-depth look at Colleen LaRose, ery has been patchy and slow, the European Union has the American woman who called herself Jihad Jane. tottered, joblessness—especially among young peo- Her fascinating case not only provides a window into ple—has stayed painfully high, and natural disasters, the minds of would-be terrorists but raises the ques- wars, and atrocities have taken countless lives. tion of how far the U.S. justice system should go in pun- We remain ever-hopeful though that this will be the ishing plotters who never come close to succeeding. year Europe mends, legislatures perfect the art of gov- We hope you enjoy the issue, and take with you a bit erning, opportunity embraces women as well as men, of hope and some good ideas in the process. For more science gains ground on disease, the fight against ter- news and insight from Reuters reporters and columnists rorism and hate becomes both more effective and world-wide, please go to Reuters.com or download the more humane. How to do all this? We explore at least a Reuters News Pro app. few promising approaches in the coming pages. It won’t take a miracle to lift Europe out of its morass, All the best, but it may take a Merkel. Reuters columnist Nicholas Wapshott focuses on the critical if often overlooked historical and political underpinnings of the current crisis —namely, longstanding Franco-Prussian enmity and the fact that European leaders never really sold STEPHEN J. ADLER, Editor in Chief EDITOR IN CHIEF Stephen J. Adler EXecUTIVE EDITOR Chrystia Freeland MANAGING EDITOR Jim Impoco CREATIVE DIRecTORS Grace Lee and Robert Priest, Priest+Grace ASSISTANT MANAGING EDITOR Bob Roe SENIOR EDITOR Paul Smalera ASSOCIATE EDITORS Elizabeth Dilts, Uzra Khan, Clare Richardson PICTURE EDITORS Corinne Perkins, Michael Leckel INFOGRAPHICS Maryanne Murray, Elsa Jenna, Christine Chan COPY EDITORS Prudence Crowther, Claudia Parsons PORTRAIT ILLUSTRATION BY MICHAEL HOEWELER MICHAEL BY ILLUSTRATION PORTRAIT CREDIT GUTTER �o. REUTERS 2 JAN.2013 Client: RBCW AD: SB Job Number: RBCW0281 Job Name: FALL 2012 GLOBAL GLOBAL ENTREPRENEUR AD Date Produced: 12/17/12 PORTRAIT Publication:ILLUSTRATION BY MICHAEL RE HOEWELERUTERS MAG 1/23/12 Live Area: 8” X 10.375” TRIM: 8.5” X 10.875” Bleed: 8.75” X 111.125” Color: 4C RBCW0281_Msb_Fall2012_Global_Global_Entrepreneur_ReutersMag_FP.indd 1 GUTTER CREDIT *Scorpio BankingBenchmark Partnership Private make such an offer. In the U.S. RBC Wealth Management is a division of RBC Capital Markets, LLC. MemberNYSE/FINRA/SIPC. Management isadivision ofRBC Capital Markets,LLC. Wealth In theU.S.RBC make such anoffer. ManagementtoThis advertisement orservices Wealth doesnotconstituteanoffer ofproducts toanyperson inanyjurisdictiontowhomitisunlawful forRBC BankofCanada oritsaffiliates. Royal mentionedservices through offered are BankofCanada.Usedunder licence.Above ofRoyal Trademark(s) division. ®/™ seeing the life you’ve built take on a life of its own. of alife on take built you’ve life the seeing in wealth There’s one of the world’s top one oftheworld’s built while you focus on what lies ahead. more Learn about the approach that has made us important as past accomplishments. We are dedicated to helping you share what you’ve At RBCManagement,Wealth The value of investments may fall as well as rise. You may not get back the full amount that you originallyinvested. maynotgetbackthefullamountthatyou You asrise. mayfallaswell ofinvestments The value Investments Investments There’s Wealth inOurApproach. Wealth There’s I Trust Services Trust 10 wealth managers* at managers* wealth TM we have an approach that recognizes future plans are just as I Credit &BankingSolutions Credit TM 2013 www.rbcwealthmanagement.com . This measurement includes all global RBC Wealth Managementaffiliates includingtheU.S. Wealth includes allglobalRBC This measurement I Asset Management . 12/19/12 8:02 AM B:8.75” T:8.5” S:8” B:11.125” S:10.375” T:10.875” Table of Contents A Way JAForwardNUARY 2013 PORTFOLIO INNOVATORS SMART MONEY STOCK TIPS THE MONEY SHOTS THE DO-GOOD PROFIT MOTIVE FUNDING PRIORITIES SHANGHAI SWOON A roundup of the top Momentum grows In the recent U.S. presiden- The Chinese economy headlines and headliners for an innovative form tial election, candidates is booming, so why do of 2012—Who wants to of capitalism that raised around $2.6 billion. their stock markets read 1,000 words when benefits all Was it money well spent? perform so poorly? 08 you can look at a stunning 16 by Sir Harold Evans 18 Before you answer, con- 20 by Peter Thal Larsen photograph? sider what else one could do with that bankroll TOMORROW WEALTH INFOGRAPHIC SOCIAL MEDIA THE 99% MATRIARCHY CLIMATE CALAMITIES MASTERS OF THE Women have made From droughts to TWITTERVERSE tremendous strides toward hurricanes, cyclical They’re rich, they’re equality in all parts of weather events are powerful, they can’t society, except at the very wreaking havoc across shut up on Twitter... starts here. 22 top of the wealth pyramid 24 the globe 26 by Anthony De Rosa by Chrystia Freeland features CREATIVE DeSTRUCTION INVESTIGATIVE REPORT PAY WALLS COST OF CONTAGION CIVICS LeSSON Today, it’s easy to marvel at how far we’ve come. Our phones talk to our TVs to record our favorite shows.