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Apple CEO, Steve Jobs, gave this commencement address at Stanford University in 2005. In it he describes three stories that sums up his life's experiences and what he had learnt about living. One about not graduating from college and how that happened, the second about leaving Apple in 1985 and the energizing period after he left Apple, and the third about his fight with pancreatic cancer in 2004. In these three experiences Jobs brings out the message of the words "bloom where you are planted," because of the resilience and growth he experienced in the way he handled the three difficult life experiences. Not having the money for college, being pushed out of the company he created by the time he was 30, and facing a life threatening illness. Throughout each experience and what life threw at him, Jobs showed dignity, courage and a keen eagerness to learn and grow, turning difficulties into opportunities. He ends the address with this image from an old 70's Whole Earth Catalog. This is an early morning country road in the fall- the kind of road one would take if one was adventurous- with the message "Stay Hungry. Stay Foolish." Something Jobs says he always wished for himself, and wishes for the graduates....

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Spain has become a highly decentralized country in the response to decades under the military dictatorship of General Franco. Regional autonomy was suppressed in Galicia, Catalonia, Valencia and other regions during that period, and the trend after the country became a democracy was a high degree of decentralization and regional autonomy. This trend is being corrected in the area of spending discipline for all areas of administration in regional and state governments through a new agreement reached between the Mariano Rajoy government and the regions, including Valencia and Catalonia. In exchange for funding and liquidity from Madrid the regional governments have agreed to accept spending controls, penalties for exceeding deficit targets, and automatic spending cuts. The new legislation is being worked out between the Rajoy administration and regional governments. Rajoy says the failure of Spain to reach its 6% deficit target- it came out at 8%- was the result of overspending of 17 regions. The 17 regions together had a deficit of 2.7% of GDP, which was twice their 2011 deficit target. The new Budget Minister Cristobal Montero says the new agreement "has great political significance," as action can now be taken with new legislation for spending discipline at all levels of public administration in Spain. ...

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There is concern that though President Da Silva has had success in his term in office, he is leaving problems for the new administration. One expert says he leaves a giant question mark behind him. One of the problems is high spending by his administration. After the financial crisis of 2008, the government flooded massive state run banks with cash, ordering the banks to to lend heavily to businesses and consumers. The government also increased its own spending on contracts and projects. Public spending has continued to grow since 2008, and federal expenditures as a percentage of the economy have doubled during Da Silva's term in office. In an editorial recently, the newspaper O Estado de S. Paulo, says the government should have used the high growth in the economy to cut public spending and improve the public finances. Because the Rousseff administration is a continuation of Da Silva's administration, and includes many of the same people, the daily asks if the Rousseff team's promises to cut spending in 2011 are believable. Inflation in 2010 is at 6%. The other serious problem is an highly overvalued currency, and volatile capital inflows from developed countries. The boom in China has helped Brazilian commodities and agricultural exports, a slowdown there would affect Brazil's economy. ...

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Rapidly decling support for Mr Westerwelle and the Free Democratic party he leads in Germany. In the September 2009 elections the FDP won 14.6% of the vote. A Dec 27-30 Stern opinion poll shows only 4% support the FDP. This threatens the Christian Democrats-FDP coalition led by Chancellor Angela Merkel in the coming regional elections. Merkel and the CDP have held onto their support, with 34% saying they support the Christian Democrats, compared to the 33.8% of the vote the CDP won in the Sept 2009 national elections in Germany. Some of the problem lies with Westerwelle who is seen as arrogant and out of touch.The major reason is that in the Merkel coalition the FDP could not implement the tax cuts and other pro-business promises it had made earlier as an opposition party. Merkel is reluctant to move on tax cuts because German help may be needed in the eurozone financial crisis. The 4% showing in the poll puts the FDP below the 5% threshold required to hold seats in Parliament. Losses in regional elections for the Merkel coalition would give the opposition parties and the Social Democrats a bigger majority in the upper house, which would further weaken Merkel's legislative agenda and the credibility of the coalition....

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In Bagour, Egypt, in the crowded Nile delta, the old order was represented by Kamal-al-Shazli, a member of Parliament from the ruling party for 46 years. This means he entered Parliament in 1964, eight years after the Suez Crisis of 1956, when Egypt under a young military officer Gamal Abdel Nasser confronted the British and the French over the Suez Canal. Everything here in this town was done through Mr Shazli, the ultimate system of paronage was in place, and everything was named after him. Only the slogans of the anti-colonialism days, the days of hope of improving the living conditions of the people, remain. Everything else has stayed much the same for the vast majority of people. Now the task of changing things requires people to think for themselves and learn to work together to guide their own affairs under a democratic system of government and free expression. And this is quite different from the system in place for over 50 years, just as happened in the old Soviet Union. The old system was held together through a patronage system, bribes, enforced by the ruling party and its state security, and one in which individuals had to trust in the state to do their thinking for them about running the country....

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To make custom loan modifications of the type that became necessary overnight on a large scale requires resources, investment in people and technology. On top of this a bank makes about $500 a year on a $200,000 mortgage loan, and if the loan is delinquent the bank may already have lost $2500, say experts, so there is little incentive to do much about custom loan modification. As a result, they used what a former J.P. Morgan executive called "Burger King kids." Or the banks outsourced the operation, some to law firms like David Stern, which in turn used outsourcing firms in Guam or the Philippines. The result is a largely chaotic process according to former mortgage officers of banks, and clerical staff that did not know what they were doing. Now atttorneys general in all 50 states have stated that they will investigate foreclosure practices of banks. It all started with the lone effort of Pine Tree Legal Assistance in Denmark, Maine, in succesfully challenging one of these improperly conducted foreclosures. See the NYT article on Pine Tree. In that case it was about a mother with two children who had her payment go up to $474 after loan modification, who is on food stamps after losing her job as an employment counselor....

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Martin Feldstein looks at Bowles-Simpson Deficit Commission proposals and says the deficit reduction does not come soon enough. He points out that the Bowles-Simpson proposals still leave the national debt in 2020 at the level it is today- at 60% of GDP, and not reach the level of 40% of GDP that we had 2 years ago till 2035. The mere prospect of persistently high deficits, he says, jeopardizes the recovery by creating the expectation that tax and interest rates will eventually rise substantially. He says the Bowles-Simpson spending reductions by reforming the tax code that subsidizes mortgage payments, local government spending, health insurance and other items at an annual cost of $1 trillion, are the best approach. He differs with Bowles-Simpson in how this money would be used. Whereas Bowles-Simpson would use it to lower tax rates, leaving only $80 billion a year for deficit reduction, Feldstein would finance major deficit reductions. Feldstein recommends additional universal savings accounts to supplement Social Security. And he supports the Bowles-Simpson proposal for limiting the growth of government health-care spending to 1% more than the growth of GDP. He says the President needs to scale back the tax and spending proposals in the budget presented in the early part of 2010....

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New Sony CEO, Kazuo Hirai, plans to cut 10,000 jobs, about 6% of its total employees, over the next 2 fiscal years ending March 2014. Sony's television business has faced 8 years of losses, and the entire electronics business has faced 4 consecutive years of losses. The price competition and the high price of the yen has hurt Sony's sales and margins. This has affected the entire Japanese electronics industry, which has suffered consecutive years of losses, including Toshiba and Panasonic. Hirai is changing Sony's strategy in the television business. Instead of targeting a goal of 40 million in sales for television sets, he is cutting this in half to 20 million and reducing the size of its television sales operations. Sony's plan appears to be to focus on its strengths in new technologies and maufacturing, including the new 4 K technology, which would have to be adapted to mass market from its current specialized application. By doing this Sony would not have to compete on price in the manner it does today with Samsung and other Asian brands which have closed the gap in conventional technologies. Hirai's employee cuts follow the 16,000 job cuts made by Howard Stringer in 2008, during the global financial crisis. During March 2011 Sony had 168,200 employees....

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Reilly raises the question why asset allocation decisions of the type made by JP Morgan Chase since 2008, does not make it similiar to a mutual fund or a hedge fund, and why this should itself not be considered a form of proprietary trading. JP Morgan Chase had $600 million of corporate debt in its overall debt portfolio or 1% in 4th quarter 2006. By end of 2008 this increased to 5% or $10 billion. By end of 2009, this went up to 17% of the portfolio or $62 billion, and they are at that level today. The holdings of non-U.S. residential mortgage securities was also increased, going up to 20% of holdings or $75 billion at end of 1st quarter 2012, from $2 billion or 1% of the portfolio in 2008. Corporate debt holdings at Bank of America at the end of the 1st quarter of 2012 were about 1% or $2.4 billion, and at Citigroup were about 4.5% or $12 billion. The Chief Investment Office unit of JP Morgan handles this portfolio, which is the result of deposits of $1.12 trillion exceeding loans of $700 billion. The low interest rate environment after 2008 creates incentives for banks to look for ways to improve crimped margins and in the process adding risk....

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Miroff describes the situation for Mexico's middle class in the face of rising crime, a deep distrust of the police that extends to neighbors. This is seen through the lives of a middle class family, Alfredo and Lilia Hoyos, in the town of Cuernavaca, 50 miles south of Mexico City. Long known for its quiet neighborhoods, a second home to many civil servants in Mexico City, a university town famous for its language schools, Cuernavaca is now caught up in the struggle with drug gangs and rising crime. The Mexican government sent marines in helicopters to kill drug gang leader Beltran Levya. The level of trust in the police with rising crime is low making the situation worse. In a recent poll, only 6% of respondents said they could trust the police, 40% said "little" or "none." An OECD survey in 2008 showed Mexico at the bottom of the list of 34 countries for citizens expressing trust in their neighbors and community. The drug war has taken a serious toll on trust in the community since then. Hoyas had a difficult time setting up a neighborhood watch for security because people feared to participate. As Mexico modernizes and the middle class expands the situation on this basic parameter of development deteriorates....

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Clarence Cammers, 64, one of Paul Ryan's constituents back home in Wisconsin, has a question for Ryan at one of his townhall meetings. Clarence is worried about what would happen to his son Tim, 32, if Medicare cuts went through and his son had to use vouchers for getting health insurance. Ryan's district includes Racine withe high unemployment, and Janesville which was devastated by the closing of the General Motors plant in 2010. Most of the people there are conservative, believe in fiscal responsibility and a balanced budget, but they are also older, working class people. Some of them like Clarence are dependent on their Social Security check to get by from month to month and are not sure they can cope with the kinds of cuts Ryan is proposing. In this story Clarence and Tim discuss the meeting and come to the conclusion that Tim will lose either way- with taxes going up or Tim not getting the retirement that he should be getting. Clarence a life long saver decides he will cut back on his expenses and save $588 from his $1912 monthly social security check for Tim. Tim has severe attention deficit disorder and works for $10 an hour in food prep at a resort....

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Jonathan Rockoff interviews Pfizer CEO, Ian Read. Read says Pfizer will make up for the loss of patent protection on Lipitor sales of $10.7 billion. He plans to cut Pfizer's $8.1 billion research budget to $6.5 billion. Pfizer sold one unit that makes drugs in capsule form for $2.4 billion. He looks to growth in Lyrica for fibromyalgia, and Prevnar for pneumococcal vaccine. And sees growth in China and emerging markets. Even with government ordered price reductions in China, increase in volume sales make up for the price reductions. Asked about the closing of the Pfizer labs in Sandwich, England, Read says the competitors were ahead of Pfizer in areas of research at Sandwich such as allergy, respiratory and urology. Pfizer will move scientists from Groton, Connecticut, to Cambridge, Mass, to bring scientists together in hubs of innovation such as La Jolla, Boston, and Cambridge, England. In the old days Groton served as a location because it was near a river, fermentation was needed and water access had to be provided. Read says Pfizer will focus on the core- neuroscience, cardiovascular medicine, oncology, inflammation, immunology and vaccines, specialized units for pain, sensory disorders and biosimiliars- and make sure this is producing results....

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Leon Panetta, former Defense Secretary in Obama's first term, and president Clinton's chief of staff, says president Obama made a series of poor decisions for Iraq and Syria. Not following up on the "red line" of use of chemical weapons by the Assad regime has damaged U.S. credibility, says Panetta. The failure to lead in budget fights, on health care, is seen in foreign policy for Iraq. There Panetta points out Obama failed to lead to ensure that Maliki had to agree to a residual troop presence in Iraq, for without this the hard won gains under the previous Republican administration could easily be allowed to slip away. Sectarian tensions, and rise of ISIS could have been controlled by having U.S. troop presence, according to Panetta. White House centralized power under Tom Donilon, chief of staff, and John Brennan, counter terrorism advisor, to th detriment of input from the Defense Secretary and the Secretary of State, says Panetta. Panetta says Obama lacks fire and too often does not take the lead as a president should. A similiar complaint is made by Washington Post journalist Bob Woodward, who covered Nixon and Watergate, after observing Obama's dealings with the Republicans and Congress up close in the first term....

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Singer and Kanter provide a detailed account of Margarethe Vestager, her personal upbringing with two parents who were ministers of the Church of Denmark, her studies for a Masters degree in Economics at the University of Copenhagen, serving in the Danish Parliament, experience as Economy minister, that have given her a sense of quiet confidence that is rare in European politicians. A Danish talk show host sees her as quite unemotional. When approached about this as a kind of toughness Vestager is taken aback, saying that she is just doing her job, and takes her responsibility to ensure competition is fair and open in the interests of consumers quite seriously. She has her lighter moments with knitting elephants, and is not hesitant to post a picture of the talk show host napping in a park in Denmark on her social media site. She comes across as a politician who is not so serious as to lose sight of enjoying her work, as she rises early and takes the morning jog to the IMF headquarters in Washington D.C. She says all the late night meetings her parents had as ministers with people going through difficult times from all parts of society gave her a sense of how an informed society should function....

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American journalist Bob Schieffer spent 46 years with CBS. He was host of the news show on CBS "Face the Nation" for 24 years. Schieffer says he made the biggest impression on the American public only in the last 12 years since turning 65. During these 12 years he moderated several presidential debates, put CBS at the highest level of viewership as other leading journalists retired, and published a best selling memoir, "This Just In." Things were not expected to turn out this way. In 2003 Mr. Schieffer found out he had bladder cancer, and he says ever since he saw things differently- everything appeared as a temporary assignment. In 2005 he announced he would retire in 2007, when he was 70. Each year after that CBS persuaded him to stay. He replaced Dan Rather for "CBS Evening News" in 2005, and gave it solid ratings till he stepped down in 2007. Schieffer is the same person he was many years ago for people who remember him from CBS since 1982, as the chief Washington correspondent. It is this power of experience, of being always there, that attracts viewers who want to hear about what Bob Schieffer finds important, with an authentic voice asking the right questions....

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Anand and Fairclough describe the aspirations of millions of young Indians stifled by the last few years of inept governance under the Congress party in India. Economic growth dropped to about 5% as the government did little to increase investment and growth, leaving India further behind nations such as China, Japan and S. Korea. The speed with which foreign investment in plants in Gujarat by the Tata Group, Bombardier and smaller companies such as Germany's Duravit took place, contrasts sharply with the red tape under the federal government of the Congress party and prime minister Manmohan Singh. Duravit's head of its Indian unit says the process was corruption free, fast, and had to be seen to be believed. Tata Group's head Ratan Tata, was a strong supporter of Modi after the Tata Group built its plant for manufacturing the Nano small car in Gujarat. The decisive mandate from the election, including the decisive vote from young people, the strong support of the business community in India determined to move ahead after 3 years of stalled governance, and the low starting point in areas such as electricity development and regions of the country lacking essential infrastructure, gives Modi a unique opportunity to put India on the path of good governance and rapid economic development....

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Jonathan Ive, Apple's design chief, talks about what it is like working as part of a very small team that included Steve Jobs and Tim Cook for two decades. Jobs complete focus was on creating great products. The innovative products were created through the work of very small teams, says Ive. Two attributes the team members had to have are being inquisitive and curious. Making the product, manufacturing it using new technologies for materials like light weight titanium, was not something tacked on at the end, but something that was addressed as part of the design at the outset. Form, material, process- the design development and making- are intertwined thorughout, says Ive. For titanium that meant complete redesign, discovering new partners to work with, and hiring a new organization. This put Tim right at the heart of things and deeply involved right from the beginning. Ive repeats the idea focussed small team effort, and says this is no platitude. Titles, organizational structures are insignificant in this setup. Today Ive meets 3 times a week with Tim Cook. Tim sees design as an effort to articulate how a user sees the object, and credits Cook with a unique ability for giving this special attention and working to understand how an object is perceived....

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A major problem for President Hollande of France in the 2014 budget is how to handle the deficits in the country's Social Security System. Over the years the deficits were transferred to a vehicle called the Cades, which is approaching its legal ceiling of 270 billion euros. The vehicle was originally set up in 1996 with the idea of separating past deficits, so that the state could balance its budget every year for the Social Security System, which covers health care, pension and family allowances. Previous governments have for the most part bypassed this and added new deficits to Cades instead of making cuts in spending. The Hollande administration says it is controlling health care expenses and increasing pension contributions as a way to bring the deficits under control. It will not assess a special tax for the deficit in Social Security in 2014, as new taxes are highly unpopular. Cades lifetime has been extended twice, first in 1997 to 2014, and during the 2009 financial crisis to 2025. In 2010 following the crisis, Cades chairman, Ract Madoux says, the short term borrowing had reached 60 billion euros. It is down to 30 billion euros, which he still considers too high....

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Easwar Prasad, Cornell University economist, and a former head of the IMF's China division, says the new report by the World Bank and the Development Reform Commission (DRC), is part of an effort by government officials in China to push the agenda for change forward during the transition to a new leadership. This includes Premier Wen. There is pushback from large state enterprises. The DRC and the World Bank had called for a change from the current situation to allow more private sector involvement in the economy, which means restricting the growth of the large state owned companies and letting the private sector operate in more parts of the economy. The alternative is to see growth slowing quickly and -some economists- say suddenly without warning. The role of Zhu Rongji, a former prime minister during the period Jiang Zemin was president, in pushing for changes appropriate to the period, is also cited. The last decade under prime minister Wen Biao is seen as one in which China relentlessly pursued its currrent export led model of development with large state run companies and state run banks dominating the economy. This has made change even harder to achieve because of the pushback to preserve the status quo....

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What happened at BP-TNK appears to be a misjudgement on the part of Hayward, Dudley, Dupree and other BP managers about who counted and to what extent in the Russian government and state run oil companies. Its still clear that Putin and his appointed head of the energy sector Igor Sechin are in charge here. As head of Rosneft the state run oil company and in his role as head of the energy sector Sechin had more influence on the eventual outcome than the lowere ranking Gazprom officials after Medvedev left Gazprom to be President. And Putin may simply have respected Sechin's judgement on the need to keep Rosneft as a significant player in the oil business as Gazprom itself may be becoming too large, to maintain some competitive forces in the state run oil industry as opposed to concentrating everything into one large bureaucratic enterprise. And Sechin, Putin and Medvedev could let AAR do the work of ridding BP of its notions of a large role in controlling Russian oil resources in a combination with Gazprom. At some other point the oligarchs of AAR could be bought out by the state run companies, especially when oil prices were expected to come down, for a much lower cost....

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Apple is in a quandary about what straegy to pursue in the large China market. Apple's pricing depends on its image of bringing in exciting new products. With growth slowing in iPhone sales and lack of new products like the iPhone Apple can go after the market of lower end smartphones to maintain growth. In that segment Apple faces strong competition from manufacturers who make products in-house and have the scale to compete effectively such as Samsung. Other manufacturers such as Lenovo are also surging in this part of the market. Sales figures for the smartphone market give some idea of the problem Apple faces. Smartphone sales for the industry slowed to growth estimated at 41% for 2013, compared to 136% in 2012. In 2014 IDC forecasts growth slowing even further to 17% and by 2015 the smartphone segment looks even less promising with only 12% growth. And much of this growth is likely to go to regional smartphone companies such as Lenovo Group of China, and other brands which are better at competing in the lower priced smartphone segment of below $100, say analysts. Apple sales were 7.9% of the smartphone market in China, Samsung had 15.4%, and Lenovo 13.1%, in the 4th quarter of 2012, according to IDC....

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The market shares of Hyundai, Kia, and VW have received a boost as the Detroit carmakers struggle. Kia and Hyundai have moved their market share from 5 in 2008 to 7.3% today, up by 2.3%. Hyundai had difficulty getting brand name recognition for quality and performance in prior years, but it has persevered. KIa and yundai spend more on incentives, $3200 in 2009 compared to $2000 in 2008 to attract first time buyers. To take into account the economc conditions Hyundai was the first to come up with the Hyundai Assurance Plan, which allows buywers who finance their purchase to return the cars if they lose their jobs. Once these buyers try the Korea cars the ope is that they will see that the quality is on par with the Americans and the Japannese for a lower price, or even exceeds them. The Korean carmakers have worked hard on improving quality. In 2009 Hyundai won the North American Car of the Year award at the Detroit Auto Show for the Genesis luxury car. VW is also gaining market share this year. VW's market share is up to 2% from 1.5% in 2008. Aggressive marketing of the Jetta has moved its sales by 8.3% in May. Some of this market share is coming from Japanese carmakers....

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The Bangladesh election resulting in a clean election from the comments of independent observers, and the election of the secular party Awami League run by the daughter of Mujibur Rehman, who led the movement that founded Bangladesh. The Awami League won a sweeping majority of 230 seats in an election with a 70% turnout with a lot of younger voters voting for the first or the second time. For one third of the voters this was their first election, and for another 23% this was their second election after the one in 2001. And that they swept aside the opposition BNP which had allied with Islamist parties and with the main Islamist party Jamaat-e-Islami able to win only 2 seats, is a sign that there is a shift in opinion in Bangladesh among the younger voters. THe main concern of voters is the price of food, as 45% of the 150 million Bangladeshis live on less than a dollar a day. The lower prices of fuel and commodities and lower inflation as a result of the global economic crisis and the good rice harvest in Bangladesh improves things for these people even as the global crisis reduces growth rate from 6.2% in 2008....

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The FDIC had $19 billion in its fund that insures consumer's deposits at the end of 2008. A bill in Congress by Christopher Dodd, the Senate Banking Committee chairman, gives the FDIC access to $500 billion till the end of 2010 if the Fed, the President and Treasury secretary support that, and $100 billion without that approval. The FDIC proposed raising the fees banks pay into the deposit insurance fund to buildup the fund, that has been depleted by bank bailouts like the one at IndyMac which cost $10 billion. But banks protested because it comes at a time when bank's are already in a bad condition. Under a 1991 law the FDIC can borrow from the Treasury amaximum of $30 billion. The access to $500 billion is meant to let the FDIC act as another source of funds to address systemic risks that arise in the future, in addition to the $700 billion already approved by Congress for that purpose. In an interview Sheila Bair, head of the FDIC, said that a change in the law would "ease the mechanics of how seamlessly we can access our lines of" funding. I'm the kind of person who likes to be prepared for all contingencies."...

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Security for women working in software companies in India is an important issue considering that the number of women in software companies will approach 50% according to Nasscom by 2010, and the poorly paid and sketchy background of many hired drivers in India. Because the women work at odd hours of the night to keep in touch with westen countries clients in different time zones this is a very real issue. The cases of a Wipro and a HP employee in India being raped and killed and drivers charged bring to light an important issue for women employees at software companies and companies in general in India. It is important to attract talented employees for companies to have the best arrangements for safe transportation at additional cost. Parents of these young women and the women should feel that its just as safe as for men for them to work or travel at night. In this case the Supreme Court decision was to let stand a lower court ruling that Mittal CEO of HP Global Soft was liable for prosecution in the case of a rape and killing by a driver of a HP employee, because the company had hired the driver and made the transportation arrangements that led to this death....