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On the coverFarewell leftv right. The newpolitical contest is openclosed: leader, page 7.A closer Look at the new dividein rich countries, pages 16-18.The anger and fickleness ofAmerican voters are forcingchange. But in whichdirection? Page 22. Britain isunusually open to trade butalso unusually bad atmitigating its impact, page 43
Terrorism in Europe Signs ofchange in the paticalreaction to terror in France,page 39. In the face of a rashof attacks, Germans are stayingremarkably calm, page 40
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3 The E ist July 30th 2016Contents
The Economist online
Daityanalysis and opinion tosupplementthe printedition, plusaudio and video, and a daily chartEconomist.com•E-mail: newsletters andmobileeditionEconomist.com/email
Print edition: available online by7pm London time each ThursdayEconomist.com/print
Audio edition: available onlineto download each FridayEconomist.com/audipedition
TheEconomist
Volume 420 N umber 9000
Published sinceSeptembem843to toke part in "a severe contest betweenintelligence, which presses forward, andan unworthy, timid ignorance obstructingour progress."
Editorialoffices in London and also:Atlanta, Beijing, Berlin, Brussels, Cairo, Chicago,Lima, Mexico City, Moscow, Murnbai, Nairobi,New Delhi, NewYork, Paris, San Francisco,Sáo Paulo, Seno!, Shanghai, Singapore, Tokyo,Washington DC
5 The world this week
Leaders
7 Globalisation and politicsThe new political divide
8 AbenomicsOverhyped,underappreciated
9 Russian dirty tricksDoping and hacking
9 The parable of YahooFrom dotcom hero to zero
10 Air pollutionCleaning up the data
Letters
12 On Republicans,Pokémon, blood-testing,Brazil, John Cleese,Italian banks
Briefing
16 Globalisation and politicsDrawbridges up
United States
19 The Democratic conventionBridging the torrent
20 On the trailPhi lly special
21 Putin, Trump and the DNCSignal and noise
21 The PGA championshipwin?
22 Southern livingFrom crop to pop
22 Political partiesDefining realignment
24 LexingtonAble Kaine
The Americas
25 Rio de JaneiroNot yet a medal contender
28 BelloCash in bin liners, ptease
Asia
29 THAAD and South KoreaOf missiles and metons
30 Politics in IndonesiaLook who's back
30 Murder in JapanMassacre in a rafe country
31 Terror in AfghanistanUnwelcome guests
31 Young aboriginesAustralia's Abu Ghraib
32 Politics in TaiwanA series of unfortunateevents
China
33 Flood controlA giant dam's drawbacks
34 Jiang ZeminThe cult of a formerpresident
34 Online mediaNo reporting withoutpermission
Middle East and Africa
35 Zimbabwe's presidentCom rade Bob besieged
36 Local elections in SouthAfricaYoung rivals
36 Nigeria's strugglingstatesRunning out of road
37 The Arab LeagueA new
37 The Saudi bombardmentof YemenWorse than the Russians
38 Water in the West BankNor yet a drop to drink
Europe
39 France's response toterrorismLoss of faith
40 How Germans handleterrorPure reason
40 NATO and TrumpDefend me maybe
41 Catholic youth in PolandCross purposes
42 CharlemagneAdvice for May and Merkel
Abenomics What Japan'seconomic experiment canteach the rest of the world:leader, page 8. Abenomics mayhave failed to live upto thehype butit has not failed. Andthe hype was necessary to itssuccess, page 57
Rio and the OlympicsThe Olympic city has been indecline since the 1960s. Thegames will not change that,page 25. A sobering history ofhow the Olympic gamesevolved, page 67
Contents continues overleaf
Pope Francis Despite hispopularity, the pontiff's effortsto reshape his church face stiffresistance, page 47
Big econc,,,,ic ideasThe second article in our serieson seminal economic paperstooks at Hyman Minsky'shypothesis that booms sowthe seeds of busts, page 54
1.9PEFC
pEK/29-31-58
Orecycie
PEFC certified
This copy of The Economistis printed on paper sourcedfrom sustainably managedforests certified to PEFCwww.pefc.org
4 Contents The Economist July 30th 2016
Goodbye Yahoo The erstwhileSilicon Valley staris no longeran independent company. Itsfailure had many fathers:leader, paye 9. Verizon hasmade a bold, risky bet on the
•future of advertising, paye 49
Britain43 The impact of free trade
BLackburned
44 Northern IrelandFrontier spirit
46 BagehotCan Owen Smith saveLabour?
International
47 Pope FrancisHearts, minds and souts
Business
49 Verizon buys YahooDoes it ad up?
50 Rare diseasesFixing fate
51 US corporate governanceChange, or eLse
51 EricssonHans free
52 Electric cars in ChinaCharging ahead
52 Green strategiesIn the thicket of it
53 SchumpeterNot-so-clever contracts
Economics brief54 Finandal stabitity
Minsky's moment
Finance and economics
57 Japan's economyAbenomics assessed
59 ButtonwoodRisky pensions
60 The Federal ReserveStaying low
61 Road taxes in EuropeNot easy being green
61 Private share salesTrading unicorns
62 Free exchangeCompeting for workers
Science and technology63 Printed electronics
On a mil
64 Air pollutionBreathtaking
65 The ancient atmosphereTime capsules
Books and arts
66 American foreign policyObama's Long game
67 Olympic gamesDark history
67 American fictionMean gids
68 Jazz in the 21st centuryPlaying outside the box
70 JohnsonLiberaL bLues
72 Economic and financialindicatorsStatistics on 42 economies,plus a closer Look atmerchandise trade
Obituary
74 Geoffrey HillThe discomfort of words
City pollution The dangers ofdirtyair need to be nade muchmore transparenttocity-dwelters: leader, paye 10.Air-quality indices makepollution seem less bad than itis, page 64
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