Stories by Newsweek

  • By the Numbers: The New Dealmakers

    Last week, in India's third-biggest proposed merger ever, mobile-phone company Bharti entered into talks to acquire Kuwait-based Zain telecom's African operations for $10.7 billion. The sale highlights the rising importance of emerging-market deals in global M&A activity: 29.5PERCENTAGE of global M&A activity generated by U.S. deals in the first six weeks of 2010. 43PERCENTAGE of global M&A activity generated by emerging-market deals in the first six weeks of 2010. 41PERCENTAGE decrease in U.S. M&A activity from the previous year. 163PERCENTAGE increase in emerging-market M&A activity from the previous year. Source: Thomson Reuters
  • Quote of the Day: Tim Pawlenty

    "She said enough. She said no more. I think we should take a page out of her book. We should take a 9 iron and smash the window out of big government in this country." --Minnesota Gov. Tim Pawlenty, speaking at the Conservative Political Action Conference in Washington, on what the right can learn from Elin Nordegren, wife of cheating golfer Tiger Woods. (At a news conference around the same time, Woods denied that that Nordegren had attacked him with a golf club, or anything else.)
  • Quote of the Day: Marco Rubio

    "Leaders at the highest levels of our government are undertaking a deliberate and systematic effort to redefine our government, our economy and our country. Now, people, as I said, all across America figured this out over a year ago, and they didn't wait for their senator or for their congressman to do something about it. They did it themselves. They have taken matters into their own hands, from tea parties to the election in Massachusetts. From tea parties to the election in Massachusetts, we are witnessing the single greatest political pushback in American history." --Florida Senate candidate Marco Rubio, delivering the keynote address at the Conservative Political Action Committee conference in Washington, D.C.
  • Video: New Dating Site for D.C. Lobbyists

    Ever hear the joke about a dog being one’s only true friend in Washington? True story, especially in a town where conflicts of interest are as rampant as mid-February snowstorms. After all, what lawmaker hasn’t been accused of being “in bed" with some evil industry? Enter the creative folks over at Greenpeace, who are giving a literal spin to the notion of right-wing lawmakers shtupping energy lobbyists. Hilarious parody or too real for comfort? You decide.
  • The Quote of the Day

    “Today’s anniversary of the Democrats’ trillion-dollar ‘stimulus’ marks one year of broken promises, bloated government, and wasteful spending. The majority promised that under their ‘stimulus’ unemployment would not exceed eight percent and job creation would begin ‘almost immediately.’  But since President Obama signed it into law, more than three million Americans have lost their jobs, unemployment is near 10 percent, and the deficit is set to hit a record $1.6 trillion. Americans are asking 'where are the jobs' but all they are getting from Democrats who control Washington is more spending and more debt piled on the backs of our kids and grandkids.” -- House Minority Leader John Boehner (R-OH) in a report entitled, Where are the Jobs?: A Look Back at One Year of So-Called ‘Stimulus’.
  • By the Numbers: Stalling an Income Gap

    China's income gap has stopped widening for the first time in almost three decades, says a new study from the OECD, which credits rural welfare policies and migration to city jobs. China's inequality, as measured by the Gini index (0-100, where zero means complete equality), remains high compared to developed nations: 40.8China's current Gini score, down from 41 in 200538.8U.S. score, compared to 38 in 200530.5OECD member-state average score, compared to 31 in 200550Latin America's average score, the world's most unequal region
  • The Quote of the Day

    "These temporary actions have ended or will end. And our financial system is much more stable. But it is critical that we learn from the financial crisis and put in place reforms to avert a repeat of 2008 or something even worse. Congress must pass financial regulatory reform. Delays are creating uncertainty, undermining the ability of financial institutions to increase lending to the businesses of all sizes that want to invest and fuel our recovery. Our overriding goal in restructuring our financial architecture should be that taxpayers never again have to save a failing financial institution." --Former Treasury Secretary Henry Paulson on federal bailouts of banks and mortgage backers and what must come next, in an op-ed in The New York Times
  • Exclusive: A U.S. Intelligence Breakthrough in the Persian Gulf?

    By Michael Isikoff and Mark Hosenball U.S. intelligence officials appear to have obtained access to what could turn out to be a significant trove of phone numbers, photographs and documents detailing the links between Al Qaeda's leaders in northwest Pakistan and the terror group's increasingly menacing affiliate in Yemen, two counter-terrorism sources tell Declassified.In late January, an Al Qaeda operative headed from Pakistan on his way to Yemen was arrested in the Persian Gulf country of Oman, a U.S. counter-terrorism official confirmed. There has been no public announcement of the arrest. But in a possible indication of the operative's importance, just a few days later, two postings on a jihadi web forum suggested that Al Qaeda leaders were worried and wanted their "commanders" to take immediate precautions.The postings stated that the "captured brother" -- identified as a "field commander" named Abdullah Saleh al-Eidan who went by...
  • By the Numbers: Paying Off the Debt

    As the U.S. announces a record deficit for 2010, a report from McKinsey Global looks at 45 credit crises since the Great Depression to see which countries have been the best or worst at quickly reducing their mountains of debt. 3: Years it took Ecuador to slash its debt-to-GDP ratio by almost 60 percent, the most successful belt-tightening episode on record (2000-03).3: Years it took Ukraine to slash its ratio by 84 percent, though it did so through high inflation rather than belt-tightening (1993-96).8: Years it took Indonesia to slash its ratio by 43 percent through massive default, the worst case of default deleveraging (2000-08).33: Years it took the U.K. to slash its ratio by 62 percent, the longest belt-tightening episode on record (1947-80).
  • Dan Choi Can't Be Reinstated to the Army Because He Was Never Kicked Out (But His Return to Drill Is Still Kind of a Big Deal)

    by Adam Weinstei Earlier today, the blogosphere was all aflutter over a rumor that the military might be dismantling its “don’t ask, don’t tell” (DADT) policy from the inside. The fuel for this fire was provided by Lt. Dan Choi, a New York National Guardsman, West Point grad, Arabic linguist, Iraq vet, and openly gay man who has spent the past year lobbying publicly for an end to the policy barring gays and lesbians from service. Choi told a reporter Tuesday morning that he’d returned to drill last weekend with his National Guard unit, the First Battalion, 69th Infantry, as it prepares for an impending deployment. Which is kind of a big deal – just maybe not as big as the media made it out to be. “Outspoken gay activist called back to active duty,” USA Today breathlessly announced, ignoring the fact that active duty and National Guard drills aren’t at all the same thing. Another normally level-headed military-affairs reporter (who made the same “active duty” error) wrote that Choi’s...
  • Obama Considered Turning Underpants Bomber Over to Military Courts, Rejected the Option

    Since "underpants bomber" Umar Farouk Abdulmutallab's failed Christmas Day bombing plot, his prosecution has become a political football, with the Obama administration opting to try him in civil courts and Republicans pushing for him to be turned over to the military. NEWSWEEK's Mark Hosenball reports that Obama and officials including Attorney General Eric Holder considered that path, but opted to stick with civil courts:...
  • Newsverse: Privates' Parts

    By Jerry Adler I think the folks who have been in the military that have been in these very close situations with each other, there has to be a special bond there. And I think that bond is broken if you open up the military to transgenders, to hermaphrodites, to gays and lesbians. --Rep. Duncan Hunter, R-Calif.
  • Justice Official Clears Bush Lawyers in Torture Memo Probe

    By Michael Isikoff and Daniel KlaidmanFor weeks, the right has heckled Attorney General Eric Holder Jr. for his plans to try the alleged 9/11 conspirators in New York City and his handling of the Christmas bombing plot suspect. Now the left is going to be upset: an upcoming Justice Department report from its ethics-watchdog unit, the Office of Professional Responsibility (OPR), clears the Bush administration lawyers who authored the “torture” memos of professional-misconduct allegations.For the full story, visit Declassified.
  • Leading Dems Want KSM Trial Moved From New York City

    Over on the Declassified blog, Michael Isikoff and Mark Hosenball run down the increasing momentum in the Democratic caucus for moving the trial of accused 9/11 mastermind Khalid Sheikh Mohammed from New York City: ...
  • GDP Doesn't Solve Jobs Crisis

    By Nancy Cook The big economic headline from this morning is the unexpected increase in the gross domestic product, which rose to 5.7 percent in the fourth quarter from 2.2 percent in the third quarter of 2009. That’s a big jump in this sour economy, but it’s premature to start celebrating just yet.The national unemployment rate stubbornly remains at 10 percent, with states such as California, Rhode Island, Michigan and South Carolina suffering from even higher local unemployment rates. If people lose their jobs or feel insecure about their futures, they spend less money or opt to save more cash. Either way, they’re not buying as much stuff. Increased consumer spending is one roadmap economists see as a way to pull Americans out of this recession. Most of the celebrated GDP growth this quarter (3.4 percent) instead came from businesses increasing their inventories. That’s nothing to scoff at, but it’s hard to tell if this economic growth will continue. “Certainly it’s better to have...
  • Will the iPad Keynote Put an End to Rumors About Steve Jobs's Health? (Probably Not.)

    By If an Apple a day keeps the doctor away, then Wednesday was an important test for Steve Jobs, chief executive officer and cofounder of Apple, who unveiled the company's tablet computer, the iPad, ending months of speculation.But buzz about Apple’s newest product could not eclipse renewed rumors surrounding Jobs's current health. Along with detailed descriptions of the iPad’s $499 entry-level price and potential to make print profitable, numerous bloggers and journalists made note of how thin, though energized, Jobs appeared at the San Francisco announcement.The intensely private Jobs, 53, has guarded his health status even more carefully than he did the secret of the iPad ever since his 2004 surgery for pancreatic cancer. Though he seemed to recover quickly, in 2008 his rapid weight loss sparked rumors. As word got out that he would send a replacement to deliver his 2009 keynote address, the famously private Jobs went so far as to send an open letter addressing the...
  • Obama's Message: Don't Mistake My Spockiness for Weakness

    The new cover of NEWSWEEK is explicit in its diagnosis of the president's problems: it describes "The Inspiration Gap." For all the hand-wringing about how style matters more than substance, style is a critical element of democratic leadership. (George Washington was revered in his day not least because he was the tallest man on the scene.) My sense is that Obama realized his professorial demeanor was not getting the job done, so the president who spoke to Congress was the Obama who does not mind using irony and sarcasm in service of a point. "That's how budgeting works," he virtually muttered at a GOP caucus that was clearly unhappy his freeze was for 2011, not 2010. Promising more meetings with the Republicans, he added, in effect: I know you're looking forward to that.The sharper tone was at once playful and intense. The message: don't mistake my Spockiness for weakness. And the message should have been received.