Friday, September 30, 2022

Trickle-down troubles

Winter is already here.

The world's in for an even rockier ride. 

Europe looks set for a slump, and Britain's new leader has scored an economic own goal. Brazil's election this weekend has the lungs of the world at stake, while Russia's war on Ukraine is hurting its own people.

We visit a wall that's being built to keep poor Haitians out, learn we may have gotten quiet quitting all wrong, and check out how women may benefit from a progressive cannabis startup.

Finally, join us at what may be the world's most exclusive restaurant. Enjoy! —Adrian Kennedy and Alice Truong

Taking Back Control

Photographer: JESSICA TAYLOR

Global markets got hammered this week when the three-week-old UK government unveiled radical tax cuts for the rich, plus a huge hole in state finances. Assets swiftly rebounded, with the pound recovering from a record low, following a dramatic Bank of England intervention. But the panic led to a collapse in home sales as banks pulled loan offers, and even the US and IMF are worried. Now, Prime Minister Liz Truss will have to fix the UK's credibility with investors.

Winter Is Already Here

The rest of Europe is also in trouble. A euro-zone recession looks inevitable according to Bloomberg Economics models, even as governments spend huge sums to ease the pain of high energy prices. The base case is a 1% drop in GDP starting in the fourth quarter, but there's a risk of a 5% slump unless authorities contain the fuel crisis. That would be worse than the 2009 slump that wiped out millions of jobs. "The outlook is darkening," says ECB chief Christine Lagarde.

And if you think you might be able to manage the energy crisis any better, our interactive tool will test if you can make it through the winter without disaster.

Russia Pays the Price

Photographer: Julia Kochetova/Bloomberg

In the face of humiliating setbacks, Russia declared victory in sham referendums to annex occupied Ukrainian territory, and suspicions are high that leaks in the Nord Stream pipelines resulted from sabotage. Many Russians are trying to flee after Vladimir Putin's decision to call up 300,000 men to fight, and the White House has warned the Kremlim of "catastrophic" results if he carries out his threat of using nuclear weapons.

Vote for the Amazon

Photographer: Victor Moriyama

One of the world's biggest democracies heads to the polls this weekend, and the fate of the Amazon — and thus the world — hangs on it. More than 40% of Brazil is covered in rainforest, critically important in the fight against global warming. The incumbent right-wing President Jair Bolsonaro has been openly hostile toward the Amazon while ex-President Luiz Inácio Lula da Silva has pledge to protect the diverse ecosystem. But knowing the issue is of lesser importance for Brazilians going hungry, the leftist frontrunner is leaning heavily on memories of his golden era, when a commodities boom helped pay for social welfare programs that lifted tens of millions out of poverty.

Wall Politics

Photographer: Tatiana Fernndez Geara

Walls are potent symbols of division — from Cold War Berlin to the US-Mexican border. The Dominican Republic is now building a 100-mile barrier to keep out migrants from poverty-stricken Haiti. Dominican leaders say they need an orderly border, but acknowledge an undercurrent of racism. "There's a deep anti-Haitian sentiment that our own educational system perpetuates," said Pável Isa Contreras, the Dominican economy minister. "It's against Haitians, because they're seen as Black and poor."

The Quiet Quitting Fantasy

Out by 5 p.m. Photographer: Spencer Platt/Getty Images North America

If you're out of the office right at 5 o'clock, are you a quiet quitter, or are you just incredibly efficient? While the supposed workplace trend has gone viral, Bloomberg Opinion's Sarah Green Carmichael isn't convinced it's real at all. Data show workplace engagement has remained largely steady over two decades. And she rightly points out that "lots of people neither love nor hate their jobs, and they're not quitters."

Green Dreams

Cannabis brand Xula makes products for "people with a uterus, people who have cramps, people who go through hormonal imbalances, folks that go through menopause," says co-founder Mennlay Golokeh Aggrey. Run by two women of color, Xula's cannabinoid line includes a "Moon-a-pause" tincture, but it can't make medical claims due to US rules, though the science looks supportive. "Honestly, my co-founder and I really just want to sell THC," Aggrey says. "We want to do it legally because we know that it is the more potent cannabinoid."

Tea for Two

Photographer: Andrew Davis/Bloomberg

There are exclusive restaurants, and then there's Solo per Due near Rome, with just a single table for two. Four courses with wine will set you back about €500 — but you can up the wow factor with a fireworks show for an additional cost. Founder Remo Di Claudio has hosted romantic dining for 30 years in a room that's a mix of ancient Rome and Downton Abbey. It's also old school — pay with cash!

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