October 27, 2014 / Fortune Asia / Volume 170 / Number 6

ON THE COVER
29 The New Cold War on Business
For two decades, globalization has been the world economy’s central story line-or so it was until Russia and China sharply changed the narrative. For big companies in the West, the question now is: Can there be a happy ending?
By Ian Bremmer
32 The Putin Paradox
The more the West tries to punish Russia’s President, the more popular he gets at home.
By Vivienne Walt
36 Beijing Pulls Back the Welcome Mat
How China’s strong-arm tactics are making life hard for multinationals.
By Scott Cendrowski
41 Introduction
FORTUNE’S 40 UNDER 40
Our annual list of young business stars is all about power and influence. The new crop has achieved that by thoroughly embracing entrepreneurial risk taking-and to think: They’re all under 40 years old.
42 Mr. Sunshine
Lyndon Rive thinks solar power can overtake fossil fuels, one rooftop at a time. Some say SolarCity’s CEO is dreaming-but that’s what they said about his cousin Elon Musk.
By Brian Dumaine
49 How S’well Swelled
Sarah Kauss wasn’t cut out for tax auditing. So the Harvard Business School grad decided to make a water bottle that would be cool enough to convert users of plastic. She has a hit on her hands.
By Daniel Roberts
51 The List
There are two things that this year’s young all-stars have in common: They don’t like limits, and they don’t like being told no.
58
Get Ready for Drone Nation
In demand by Fortune 500 companies and heavily funded by Silicon Valley, unmanned aircraft are invading the world of business.
By Clay Dillow
10 MACRO
Closer Look
Detroit becomes an unlikely hub for high-end bike manufacturing.
By Jen Wieczner
12 MACRO
Briefing
Washington’s top political donors. Plus: Enrollment at for-profit schools drops again.
By Anne VanderMey
13 MACRO
Inside Report
It takes a village to sell a CEO to both Wall Street and Main Street.
By Erika Fry
14 MACRO
Fortune 500 Chartist
Leaner lobbying in Washington. By Tory Newmyer and Scott DeCarlo
15 MACRO
Global Power Profile
Johnson & Johnson’s CEO enlists IBM’s Watson to find new drugs.
By Mehboob Jeelani
17 MACRO
New Energy
In Ohio, politicians are squabbling over energy policy as manufacturers clamor for more renewables.
By Richard Martin
21 TECH
Wearable Technology
Why blue-collar businesses are excited about wearable gadgets.
By Erin Griffith
24 TECH
The Fortune 500 Series
Bloomingdale’s tests ”smart” fitting rooms.
By Phil Wahba
26 INVEST
The New Oracles?
Warren Buffett’s prot馮駸 are beating the market.
By Stephen Gandel
8 EDITOR’S DESK
68 BING!
CORRECTIONS
”Is Africa’s Rise for Real This Time?” (Oct. 6, 2014) misstated that BP is an investor in M-Kopa Solar. ”Keeping It in the Family” (Oct. 6) incorrectly said Pernod Ricard acquired Seagram in 2008 and Maker’s Mark in 2005. It acquired Seagram in 2001 and never owned Maker’s Mark; when Pernod Ricard acquired Allied Domecq in 2005, Maker’s was sold to Beam. ”It’s Not Lost in Translation” (Oct. 6) misstated the gender of the voice used by Delta’s speech recognition system. It is male.
ON THE COVER ILLUSTRATION BY ALEX WILLIAMSON
[IMAGES]
STEPHEN LEWIS

51 Highbridge founder Michael Patterson, at home in Greenwich, Conn., ranks No. 38 on Fortune’s 40 Under 40.
GREG MILLER
ｩ Time Inc.