February 5, 2018 The Great GE Mirage What happened to America’s most iconic company? p42 February 5, 2018 3 56 Trinidadian Ryan Roberts, kidnapped by Venezuelan pirates in 2015, still has flashbacks: “I remember PHOTOGRAPH BY ALEJANDRO CEGARRA FOR BLOOMBERG BUSINESSWEEK BLOOMBERG FOR CEGARRA ALEJANDRO BY PHOTOGRAPH when they stick a gun in my ribs and they cock the gun.” CONTENTS Bloomberg Businessweek February 5, 2018 IN BRIEF 8 ○ Another snub for Huawei ○ Canadian cannabis consolidates ○ Don’t forget to turn out the lights, GOP reps REMARKS VIEW 10 Save the kumbayas: Korea’s 12 On immigration reform, the president takes a step Olympic unity will be short-lived in the right direction 1 BUSINESS2 TECHNOLOGY3 FINANCE 14 Conglomerates 21 Mr. Jetson, your 26 Does Steve Cohen just can’t catch ride is here still have the old a break magic? 22 Uber wants Travis Kalanick 17 Ticket scalpers, look back—in the witness box 27 Loose lips at the what you made Taylor Department of Education Swift do 24 Careem, a lifesaver for 4 Saudi women not allowed 29 JAB integrates its 18 Betting that Asian to drive, might be able to java empire gamblers will flock hire them soon to the Catskills 30 India’s developers 25 Climate: Cooler streets don’t deliver for a hotter world 31 Europe’s banks are ripe for a bit of matchmaking 4 ECONOMICS5 POLITICS 10 “Yesterday we criticized 32 The Fed’s getting a 37 Devin Nunes leads North Korea’s new chair—is it time a GOP attack on provocations, for a new target? the Trump-Russia and today we’re investigation inviting it to 34 The problem with Trump’s our event and trade posture: Tariffs on 38 Putin plots to protect one side quickly beget Putinism after he’s gone acting as tariffs on the other if unification 40 Radically different is just around 35 Artifact: Move over, immigration experiments lithium ion—vanadium is in two laboratories of the corner” powering up democracy CONTENTS Bloomberg Businessweek February 5, 2018 How to Contact PURSUITS Bloomberg FEATURES Businessweek Editorial 212 617-8120 Ad Sales 212 617-2900 42 How General Electric 731 Lexington Ave., New York, NY 10022 Email lost the plot bwreader @bloomberg.net Fax 212 617-9065 Subscription Customer 63 Fighting Service URL businessweekmag tequila’s decline .com/service Reprints/Permissions 800 290-5460 x100 66 A resort too or email businessweekreprints exclusive to book @theygsgroup.com Letters to the Editor 67 The latest recovery can be sent by email, tech for runners fax, or regular mail. They should include the sender’s address, 68 Why don’t buyers phone number(s), and email address if want mansions available. Connections in Manhattan? with the subject of the letter should be disclosed. We reserve 70 Critic: Queer Eye the right to edit for returns to a very sense, style, and space. 6 different America Follow us on social media 71 The One: Snooz Facebook facebook.com/ 50 Book excerpt—Brotopia: white noise machine bloomberg MITH businessweek/ Twitter Breaking Up the Boys’ Club 72 Game Changer: @BW Renault’s Gérard Instagram @bloomberg of Silicon Valley Détourbet dreams businessweek about prices, not cars 56 Smuggling cocaine and Corrections: “All Eyes on Ripple. But What Is It?” (Finance, Jan. 29, 2018) said Ripple’s diapers with the pirates CEO was willing to identify only one bank sending commercial payments over RippleNet. We should have said of today’s Caribbean he was willing to disclose transaction volumes for only one bank. Also, the company has been in business for six years, not seven. 37 40 50 21 Andrew McCabe Sally Hernandez Emily Chang George Jetson Bloomberg Businessweek (USPS 080 900) February 5, 2018 (ISSN 0007-7135) H Issue no. 4557 Published weekly, except one week in January, February, April, June, July, September, and December, by Bloomberg L.P. Periodicals postage paid at New York, N.Y., and at additional mailing offices. Executive, Editorial, Cover: Photo illustration Circulation, and Advertising Offices: Bloomberg Businessweek, 731 Lexington Avenue, New York, NY 10022. POSTMASTER: Send address changes to Bloomberg by Justin Metz; desert: Businessweek, P.O. Box 37528, Boone, IA 50037-0528. Canada Post Publication Mail Agreement Number 41989020. Return undeliverable Canadian addresses to Getty DHL Global Mail, 355 Admiral Blvd., Unit4, Mississauga, ON L5T 2N1. E-mail: [email protected]. QST#1008327064. Registered for GST as Bloomberg L.P. GST #12829 9898 RT0001. Copyright 2018 Bloomberg L.P. 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EXCERPT: IN BRIEF Europe Americas ○ Jan. 31 was a big day ○ Czech President ○ Representative ○ Aphria, a for Big Oil: France’s Total, Trey Gowdy of South in partnership with U.S.- Milos Zeman Canadian cannabis narrowly won Carolina announced company, agreed based Chevron, and Royal that he wouldn’t run for Dutch Shell unlocked major reelection on an reelection to the House, to buy rival discoveries in the Gulf of Mexico, while BP said anti-immigration joining Lou Barletta, Joe Nuuvera for it found two new drilling platform. Barton, Xavier Becerra, spots in the North Sea. Diane Black, Marsha $826m The same day, the U.S. Blackburn, Robert reported that it had Brady, Jim Bridenstine, produced more than Jason Chaffetz, John 10 million barrels a day for Conyers, John Delaney, the first time in 47 years. Charlie Dent, Ron DeSantis, John Duncan, Blake Farenthold, Trent Franks, Rodney ○ In his first State Frelinghuysen, Bob ○ “The list looks Goodlatte, Gene Green, of the Union Luis Gutiérrez, Colleen speech, Donald like the book Hanabusa, Gregg Trump called 8 Harper, Jeb Hensarling, for a $1.5 trillion Darrell Issa, Evan infrastructure Who’s Who in Jenkins, Lynn Jenkins, program. T. LOUIS T. Sam Johnson, Ruben INA: INA: Kihuen, Raul Labrador, Russian Politics.” Sander Levin, Frank LoBiondo, Michelle Lujan Grisham, Martha Russian Deputy Prime Minister Arkady Dvorkovich, reacting to a roster of McSally, Pat Meehan, 210 prominent Russians released by the U.S. Department of the Treasury. He gave scant details on how to pay The list describes who might be sanctioned in response to Russian meddling Luke Messer, Tim for it, which troubled Republicans and in the 2016 presidential election. Murphy, Kristi Noem, Democrats alike. Beto O’Rourke, Steve ○ SAP agreed to buy ○ London reached ○ Amazon, Berkshire Callidus Software, a U.S.- Pearce, Ted Poe, Jared Hathaway, and JPMorgan based maker of sales its annual limit on Polis, Dave Reichert, Chase pledged to create software, for nitrogen dioxide James Renacci, Todd a health-care company pollution just Rokita, Jacky Rosen, to cut costs for their 30 days into 2018. Ileana Ros-Lehtinen, roughly 1 million combined $2.4b Ed Royce, Carol Shea- U.S. employees. The Porter, Bill Shuster, venture will be focused on The German company Kyrsten Sinema, Lamar technology and free from is quickly shifting from “profit-making incentives,” Smith, Pat Tiberi, Dave licensed and installed the companies said in software to cloud-based Trott, Niki Tsongas, and a statement. offerings. Tim Walz. The U.K., with large numbers of diesel- The turnover is higher than usual burning cars and trucks, has been among Republicans, which may give running afoul of European Union clean- Democrats an opening to regain air thresholds since 2010. Last year, control of the lower chamber in ZEMAN: RADEK MICA/AFP/GETTY IMAGES. YELLEN: CAROLYN KASTER/AP PHOTO. RICKETTS: NATI HARNIK/AP PHOTO. PHONE: COURTESY HUAWEI. CH HUAWEI. COURTESY PHONE: PHOTO. HARNIK/AP NATI RICKETTS: PHOTO. KASTER/AP CAROLYN YELLEN: IMAGES. MICA/AFP/GETTY RADEK ZEMAN: CHRIS RATCLIFFE/BLOOMBERG. WEAH: IMON MAINA/AFP/GETTY IMAGES. *SEASONALLY ADJUSTED ANNUAL RATE. DATA: FEDERAL RESERVE BANK OF S OF BANK RESERVE FEDERAL DATA: RATE. ANNUAL ADJUSTED *SEASONALLY IMAGES. MAINA/AFP/GETTY IMON WEAH: RATCLIFFE/BLOOMBERG. CHRIS London blew its cap in only five days. November. By Kyle Stock Bloomberg Businessweek February 5, 2018 Asia ○ Australia ○ HNA Group told creditors ○ Japan’s Fujifilm pledged to create it will seek to sell off will acquire Xerox, a $3.1 billion a once-dominant loan program $16b American to help the in assets in the first half technology country’s defense of 2018, according to business. ○ In their last meeting contractors boost people familiar with the under Chair Janet Yellen, matter. The sale will help Fed officials left interest exports. the conglomerate pay off rates unchanged but set debts and bolster liquidity. the stage for a hike in March. 32 The two companies have operated jointly in Asia for the past 55 years. ○ The Republican National ○ A U.A.E.-backed Yemeni Committee picked separatist group seized Chicago Cubs a military base in the co-owner Todd southern port city of Aden. Ricketts to replace The action represents a Steve Wynn as finance splintering of the coalition 9 chair. Wynn, who faces fighting against Houthi multiple allegations of rebels in the north—Saudi sexual harassment, Arabia supports a faction resigned on Jan. 27. He still loyal to President denies any wrongdoing. Abd-Rabbu Mansour Hadi. ○ U.K. Prime Minister Theresa May, at a press conference with Chinese Premier Li Keqiang, indicated support for Beijing’s planned $900 billion global infrastructure project, calling Britain a “natural partner” but withholding a full commitment.