Friday, February 3, 2023

The Hindenburg effect

A $108 billion wipeout.

An epic short-selling battle has plunged the empire of one of the world's richest people in crisis — wiping out over $100 billion in value and even shaking confidence in a whole country. 

In the US, the death of a Black American has renewed focus on the country's troubled history of racism and police violence. Over in Zimbabwe, where annual inflation tops 200%, there are plans to build a brand new $60 billion cybercity. Meanwhile China's reopening might mean another spike in prices around the world.

Considered a hero in the pandemic, Sean Penn's charity is fighting off allegations of sexual harassment and financial mismanagement. As the age of AI looms, we ask ChatGPT how to invest.

The secret to eternal youth may lie in a $2 million-a-year regimen. Or perhaps you prefer New Zealand's superfood, mānuka honey, which is suddenly a lot more affordable. As you chill this weekend, plan a bucket-list trip or drool over our luxury gift guide for Valentine's Day. Enjoy!

An Empire Is Shaken

Photographer: Kobi Wolf/Bloomberg

In January, Gautam Adani was Asia's richest person. No more, after the Indian tycoon's sprawling energy-to-ports empire shed an astounding $108 billion of value a week after short seller Hindenburg Research accused it of stock manipulation and accounting fraud. Adani vociferously denies the claims and continues to meet its debt obligations, but had to scrap a $2.4 billion share sale. The crisis has shaken broader confidence in India, whose Prime Minister Narendra Modi is seen as close to the tycoon, and parliament was adjourned a second day as opposition lawmakers tried to force a debate on the crisis. —Adrian Kennedy

A History of Violence

Protesters in Memphis. Photographer: SETH HERALD/AFP

Protests erupted across the US following last week's release of videos showing the fatal beating of 29-year-old Tyre Nichols during a traffic stop in Memphis, Tennessee. Graphic footage from body and street cameras showed five officers punching, kicking and Tasering Nichols as he repeatedly pleaded to go home. Nichols's violent death has drawn comparisons to the brutal beating of Rodney King by Los Angeles police in 1991, calling to attention a longstanding pattern of police brutality toward Black Americans and sparking yet another wave of demonstrations demanding reform. —Linda Poon

Coming Back

Photographer: Qilai Shen/Bloomberg

China's reopening is set to provide a welcome boost to global growth — at a cost. A surge in spending and millions of Chinese going overseas again are set to push up prices for everything from oil to airline tickets. That could be a setback in the fight against inflation and may mean higher interest rates around the world. Bloomberg Economics expects China's GDP growth to almost double from 3% in 2022 to 5.8% this year. At that rate, consumer prices could jump by close to a full percentage point in the final quarter of 2023. —Enda Curran

ChatGPT vs. Wall Street

Photographer: Gabby Jones/Bloomberg

What do you get when you ask the hottest AI tool in the world to design an ETF that can beat the US equity market? That's exactly the challenge we gave ChatGPT, the artificial intelligence tool that's taking the internet by storm, in a bid to see how close technology really is to replacing Wall Street's army of analysts, experts and money runners. The result: It tells you the same thing every frustrated stock manager does. Explaining the market is simply too unpredictable to design such a fund. So perhaps there's still hope for the humans of Wall Street — for the time being, at least. —Sam Potter and Katie Greifeld

Fighting Disaster

Photographer: 731; Photos: Penn: Chris Pizzello/AP Photo; Textures: Alamy (4)

Sean Penn's disaster-relief charity CORE saved American lives thanks to its vaccination efforts during the pandemic, raising close to $200 million largely from federal grants and employing more than 3,000 people. But it's been criticized by employees and partners for its handling of those funds and is facing legal action by staffers and claims that allegations of sexual harassment by CORE staff and partners went unaddressed. It has also repeatedly delayed a trial date with the National Labor Relations Board over a Penn email that the agency claims threatened staff who publicly criticized working conditions. CORE denies the allegations. —Sophie Alexander

From the Ground Up

An artist impression of Zim Cybercity

With the help of a Dubai-based billionaire, Zimbabwe is planning a new city that's just for the rich. Estimated to cost $60 billion, the cybercity in Mount Hampden is supposed to serve as a new capital with pristine walkways and luxury villas. That's a world apart from the decay and over-crowdedness in the current capital Harare. Critics doubt it'll ever be built. Zimbabwe's economy is fragile: The currency is in free fall, interest rates are the world's highest and annual inflation is 230%. Still, President Emmerson Mnangagwa is desperate to show off success, who says the project is a sign of investor confidence. —Ray Ndlovu

The Land of Milk and High-Priced Honey

Demand for New Zealand's mānuka honey surged during the pandemic as buyers around the world searched for elixirs to keep them healthy. The high prices the superfood commanded pushed Kiwis to try their hand at beekeeping as a side hustle. But now, in a classic boom-and-bust tale, there's an oversupply of the once-rare product, and beekeepers are struggling to cover soaring production costs as exports soften and prices plunge for all but the very best honey. —Ainsley Thomson  

Forever Young

Some people try to fight time with serums and supplements. Bryan Johnson takes it to another level. The 45-year-old, who sold his payments startup Braintree to EBay for $800 million in 2013, meticulously follows a regimen that includes dozens of supplements and medicines, a strict vegan diet, a highly tuned workout routine, laser skin therapy and regularly being probed by a team of doctors. Chasing the fountain of youth will likely run him $2 million this year — and that doesn't include costs like building a medical suite in his home. "He wants to have the brain, heart, lungs, liver, kidneys, tendons, teeth, skin, hair, bladder, penis and rectum of an 18-year-old," writes Ashlee Vance for Bloomberg Businessweek. So far, results suggest he's got the heart of a 37-year-old and fitness of a teenager. —Alice Truong

Safari Adventure

In the mood for adventure? A new breed of safaris in Botswana offers a four-day trek across the country's vast interior that lets voyagers sleep under the stars in majestic locations like the Lost Island of the Baobabs. And it's February, so that means Valentine's Day is just around the corner. Check out our luxury list of gifts, from fashionable Louis Vuitton sneakers to elegant jewelry to impress your special someone (or treat yourself!). —Sarah Rappaport

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