September 11, 2017 AI BABIES ARE COMING The Sooner Than You Think Issue p42 September 11, 2017 5 PHOTOGRAPH BY KLAUS THYMANN FOR BLOOMBERG BUSINESSWEEK BUSINESSWEEK BLOOMBERG FOR THYMANN KLAUS BY PHOTOGRAPH 68 In Sweden, a mine worth moving a town for CONTENTS Bloomberg Businessweek September 11, 2017 IN BRIEF 10 ○ China’s cryptocurrency crackdown ○ Size 0 models get kicked off the catwalk ○ Hollywood’s summertime blues REMARKS VIEW 14 Don’t ask private 12 The calculus behind North Korea’s companies to put limits nuclear machinations is simple: Survival on public debate 1 BUSINESS2 TECHNOLOGY 3 FINANCE 17 AbbVie has built a 22 Waymo has an 26 Diamonds are a fortress of patents edge on Uber in disaster for U.K. to defend its court, but it may be bank Standard best-selling drug losing its lead over Chartered self-driving rivals 19 L’Oréal, long known for its 28 Private equity investors are female-friendly workplace, is searching for the exits at 23 More than 1 million people looking for a few good men British malls 6 worldwide have found work putting the I in AI 21 Why plastics could be pricier 29 A snapshot of United post-Harvey Technologies’ $23 billion 24 Buzz-building influencers deal for Rockwell Collins hold no sway at Snapchat 4 ECONOMICS 5 POLITICS 42 “We’re also 30 Small towns are a big 36 Trump’s decision to exploring problem for oil and rescind DACA will the idea of mining companies in stoke the GOP’s creating Colombia long civil war over a digital immigration 31 An immigration crackdown is celebrity” adding to a worker shortage 38 A rising tide of anti-EU in Texas—just as Houston sentiment may shape Czech begins to rebuild elections this fall 34 More med school grads are 39 How much is 666 Fifth Ave. turning away from medicine costing the Kushner Cos.? 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CPPAP NUMBER 0414N68830 Businessweek IN BRIEF Asia Americas ○ Cambodia charged the ○ Digital assets ○ Facebook bid $610 million leader of its main opposition for the digital rights to the party with treason. Kem such as bitcoin Indian Premier League Sokha faces as many as swooned as cricket tournament—and still 30 years in jail as the ruling came up short. Star India, a party tightens its grip before China banned unit of 21st Century Fox, won parliamentary elections fundraising by pledging next year. through new ○ Attorney General Jeff Sessions announced an end cryptocurrencies. $2.6b to DACA, the five-year-old for both broadcast and program that gives children digital rights. brought to the country illegally the right to work and study without the threat of deportation. The policy is meant to clamp down on initial coin offerings, which have raised $2.3 billion so far this year. ○ Over the objections of many prominent Republicans, ○ “They’ll eat grass, President Trump reached an agreement with congressional leaders to 10 but they won’t abandon pass a Hurricane Harvey relief bill alongside legislation to raise the debt ceiling and a their program unless continuing resolution that will fund the government through they feel secure.” mid-December. Russian President Vladimir Putin rejected U.S. calls for new sanctions against North Korea on Sept. 5, two days after Pyongyang carried out its most powerful nuclear test to date. ○ Wonder Woman could do ○ An international ○ BRICS countries ○ consortium of journalists only so much for Hollywood, accused Azerbaijan of criticized Pakistan which posted its worst U.S. using a for harboring summer box-office haul since 2005. Domestic theaters terror groups collected $3.7 billion over $3b in a 43-page the season, which ended on Labor Day, down 18 percent slush fund to bribe declaration. from the previous year. European politicians and Pakistan quickly buy luxury goods. President $4.9m Ilham Aliyev’s office rejected the 2013 issued a statement calling portrayal. the accusations “totally groundless.” Thousands of Rohingya people fled Myanmar as the country’s military attacked the small Muslim community. $3.7m About 125,000 refugees have 2017 crossed the border into Bangladesh $3.6m CLOCKWISE FROM TOP LEFT: STR/AFP/GETTY IMAGES; RENEE JONES SCHNEIDER/AP IMAGES; MICHELE EVE SANDBERG/AFP/GETTY IMAGES; IMAGES; SANDBERG/AFP/GETTY EVE MICHELE IMAGES; SCHNEIDER/AP JONES RENEE IMAGES; STR/AFP/GETTY LEFT: TOP FROM CLOCKWISE REUTERS; VIA KLIMENTYEV/KREMLIN SPUTNIK/MIKHAIL IMAGES; ARMANGUE/AP BERNAT IMAGES; CURTIS/AP BEN LILIUM; COURTESY MOJO OFFICE BOX DATA: GETTY IMAGES. since fighting began in late August. 2005 By Kyle Stock Bloomberg Businessweek September 11, 2017 Europe ○ ○ LVMH and ○ Lilium, a German maker of flying cars, landed Kering banned size 0 models from their shows, part $90m of a movement in financing, led by China internet giant Tencent within the fashion Holdings. The two-year- industry to old startup completed a successful flight of its vertical- promote positive takeoff electric jet last year. physical standards. ○ Lego said it would lay off 8 percent of its workforce, ○ The European about 1,400 employees, after Union’s highest sales fell court ordered a lower court to 11 5% revisit a $1.3 billion in the first half of the year. It’s antitrust fine the company’s first revenue drop in 13 years. against Intel. Hurricane Irma, one of the most powerful Atlantic storms on record, wreaked havoc on the Caribbean and threatened southern Florida. Insurance stocks The penalty, levied in 2009, was the plunged and orange juice futures spiked as investors prepared for devastation. largest of its kind at the time. ○ Federal ○ Brazilian police carried out search and arrest orders on Africa Reserve Vice Rio politicians suspected of Chairman Stanley paying bribes in the country’s successful bid to host the ○ After Kenya’s Supreme Court ○ Nigeria and South Africa Fischer resigned, 2016 Olympic Games. invalidated the results of the country’s Aug. 8 presidential election, posted modest growth in effective Oct. 13, opposition leader the quarter ended June 30, Raila Odinga as both economies struggle citing “personal threatened to boycott to recover from recession. the rerun slated for reasons.” His Oct. 17. He wants Nigeria was buoyed by greater transparency increased oil production, departure will from the election commission, while South Africa surged on whose electronic systems were leave four of seven compromised in the vote. a record maize crop. seats on the Fed Officers searched the headquarters board vacant. of Brazil’s Olympic organizing committee, while a lawyer for Carlos Nuzman, the committee’s president, said his client was innocent. REMARKS 12 How the Kims Came to Love The Bomb REMARKS Bloomberg Businessweek September 11, 2017 ○ For Pyongyang, the nukes aren’t Korea and the U.S. A 2015 assessment by the U.S. Department of Defense said North Korea’s equipment to a great degree bargaining chips. They’re an insurance is based on Soviet and Chinese designs dating to the 1970s policy against regime change and earlier and its air force has planes of 1940s vintage. The government’s efforts to modernize, the report noted, have been limited. ○ By Michael J. Schuman If a war does break out, Pyongyang could inflict a lot of damage and kill a lot of people, especially in South Korea. Research firm Capital Economics in an August report figured that the Korean War of the 1950s erased 80 percent of South North Korea looks pretty scary at the moment, firing off missile Korea’s national output, and even if a 21st century sequel were after missile, threatening to target Guam, and, on Sept.