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A government backed fund will recoup its investment in JAL when it sells 175 million shares at a tentative price of 3,790 yen ($48.38) each. JAL's president Yoshiharu Ueki, is aware of the many challenges still facing the airline, because of the growth of competitors in the Asian market such as Singapore Airlines and Emirates Airlines with much larger fleets and larger planes. JAL now has mainly mid-size more fuel efficient planes. Ueki says the listing on the Tokyo Stock Exchange merely puts JAL back on the starting line to a turnaround.

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In comments to the Financial Inquiry Commission bankers Blankfein and Dimon show a lack of comprehension of the magnitude of the global financial crisis and their role in it. Blankfein says this kind of crisis was a once in a 100 years event and one should't react. Dimon says such crises happen every 5 to 7 years and is not something to get overly concerned about. And they offer no solutions or problem solving ideas, except to resist any form of regulation that would strictlly limit damage from a future crisis.

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The southern city of Chennai (or Madras) is fast becoming a hub for car manufacturing in India. It will turn out 1.5 millon vehicles very soon. Hyundai, Daimler, Ford, Nissan and BMW all have manufacturing here. About 200,000 people are employed in the car industry in the state of Tamilnadu, of which Chennai is the capital. Hyundai entered the Indian market early and turns out 650,000 cars in Chennai. Tamilnadu state has reduced the red tape and simplified the government approval process, making it easier to setup business in the state.

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China is closing energy inefficient aging factories. The Chinese government plans to close 76 factories in cement, 279 in paper, 175 in steel, and 84 in leather as part of this effort. This still leaves China with a lot of work to do to acheve the 20% reduction per unit of economic output in 2010 compared to 2005, that its current five year plan calls for. Efficiency went up by 14.4% in the first four years of the current plan, but went down by 3.6% in the first quarter causing serious concern.

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Young Korean-Americans in New York taking up American citizenship to avoid the draft in S. Korea, and a 108 year old Irish woman who immigrated in 1918 from Ireland. The Irish born Margaret lives at the Pine Nursing Home in Glens Falls, N.Y. She gave an interview to the Irish Voice, a midtown Manhattan weekly. She has never returned to Ireland since leaving Scariff, County Clare in 1902. In 1902 life expectancy in the US was 47 years! The percentage of Americans graduating from high school was 6%.

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Halting of work by New Jersey Governor Christie of the tunnel into New York City. This was a result of a lack of funding and the large price tag for the project. The lack of money for building needed infrastructure is likely to affect the U.S. in the future. See the WSJ article on estimates by Robert Gordon of Northwestern University, which show slowing U.S. growth to 1.5% in the next 2 decades, and how this would affect the ability to tackle problems from carbon and energy to infrastructure.

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A presidential decree made in Feb. 2011 requires foreign companies to cut stakes in mining companies to less than 50%. Previously upto 80% ownership was allowed in mining companies by foreign companies. The regulations show that foreign investors with 100% of ownership of mines are required to reduce their stakes by 20% within 6 years, 30% by 7th year, 37% by 8th year, 44% by 9th year, 51% by 10th year, selling to domestic investors. The idea is to maintain a share in domestic ownership of assets. Mining contributes 12% of Indonesia's GDP.

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The Smer-Social Democracy party led by Robert Fico won an absolute majority in the Slovakian parliament. Smer-Social Democracy party won 83 of 150 seats in parliament. The party campaigned on the theme that the austerity measures were too hard on the poorer segments of society, and did not do enough for job creation. Unemployment in Slovakia is at 13%. The shift also marks changing opinion in Hungary, France, and other EU countries about austerity measures and the impact on countries with high unemployment, in the absence of efforts to stimulate job creation.

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The efforts by Poland to maintain control over its banking sector. About 70% of the banking sector was owned by foreign owned banks before the recent withdrawal by banks from Western Europe. State regulators and the central bank would like to see more of the banking sector in Polish hands. Bank Zachodni WBK, wholly owned by Banco Santander of Spain will merge with Kredyt Bank, a subsidiary of KBC Group of Belgium, to create a larger bank with a stake of $104 million taken by the European Bank for Reconstruction and Development.

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Hillary Clinton's championing of softer issues such as promoting the use of new safer clean cookstoves by hundreds of millions of women in the developing world. She persuaded top Chinese foreign policy official Dai Bingguo to put the cookstoves on the agenda for this years meeting in Beijing. In September 2010 Clinton helped setup a partnership led by the UN Foundation to give 100 million of these cookstoves to women by 2020. Smoke from poorly ventilated stoves kills about 2 million people each year, with about a quarter of the deaths in China.

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A 12% drop in Russia's RTS stock index on March 2, 2014, as Russia occupied the Crimea in Ukraine. The Russian economy was slowing down before the crisis. This is likely to reduce foreign investment in the economy. The ruble has declined 9% aginst the dollar in Jan-Feb. 2014. As a temporary measure the Russian central bank made a rate hike on March 2, 2014 of 1.5% to 7%. This is a difficult act for the central bank as raising rates could push the economy into recession.

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A sign that investors are moving too quickly is the manner in which investors are putting money in emerging markets. THe sovereign credits of Argentina, Ecuador, Pakistan and Ukraine have risen by 100% to date on teh benchmark JP Morgan's Energing Markets BOnd Index Global. Gavin of Barclays Capital says the odds that current level rise to bubble levels are very high. Emerging market funds have absorbed more than $40 billion so far this year according to EPFR GLobal fund tracker, reversing the outflows during the crisis in early 2009.

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Japan's new prime minister runs into difficulties in improving public finances by cutting some of the pork-barrel spending and making chages such as abolishing the gasoline tax to put more money in the hands of consumers. Cuts of wasteful spending came to less than a fourth of the target of $33 billion. The Finance Minister said that tax receipts for the year ending March 2010 would come in at $400 billion, about $100 billion less than estimated earlier, and this is less than the deficit for the current fiscal year of $590 billon.

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Thoughtful opinion by experts that the rate cut or a series of rate cuts may just not do it and the economic growth will slow to 1.5% or nearer that number next year. The housing declines, lower consumer spending, and the credit crunch won't disappear with the rate cuts. The effects on the dollar are another factor. See the article on how ewe may be entering a new period in the global economy where the US slows and the rest of the world pushes ahead in the wsj Sept 20, 2007.

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Declining agricultural exports and lower prices are expected to lead to U.S. net farm income dropping by 38% to $55.9 billion in 2015, according to the USDA. Importers such as Egypt and Japan can buy wheat in export markets at lower prices from France, Russia and other countries- U.S wheat going at $205 a ton, French wheat at $193 per ton, and Russian wheat at $194, according to grain analysts. Depreciating currencies in Russia and Eastern Europe mean sellers can sell in dollars and convert to local currencies.

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Prince Salman's efforts to launch an IPO of Saudi Arabian National Oil Company faces resistance from Saudi bureaucrats. Prince Salman wants to reduce the country's dependence on oil revenue, and hoped to use the IPO generated $100 billion to make investments in other industries. Saudi technocrats see risks in the plan- as costing consumers billions of dollars in higher gasoline prices, legal risks and public scrutiny. The IPO has been pushed back to 2021. Large new investments such as solar generation hub also face passive resistance in the bureaucracy. New investments policies have led to a Saudi recession in 2017, and reduced investment and consumer spending. Prince Salman sees it differently, once telling Theresa May of Britain that even if he got 50 of the 100 things he wanted done, that would be 50 not done otherwise. Salman has a disdain for the bureaucracy and has tight control over the country. He has led popular social changes such as letting women drive and taking away the power of religious police to make arrests. The Economy Minister has slowed down a plan to sell state assets such as government owned hospitals,airports, because conditions are not ideal. A plan to invest $7 billion in Uber was shelved. Aramco chairman Mr. Falih has reduced the size of investmetns including for the solar energy generation project. A plan to have ARAMCO listed on the New York Stock Exchange preferred by Prince Salman has been changed with advisers suggesting the London Stock Exchange as a place with lower risks of law suits under U.S. tort laws. Saudi executives at ARAMCO also pointed out that to reach the $2 trillion valuation that the Prince has in mind for ARAMCO the company would have to sell gasoline to Saudis at market rates, tripling oil prices in the kingdom -costing consumers $98 billion. The advisers believe it is more prudent financially to raise debt. Under that plan ARAMCO could raise debt to buy the Public Investment Fund's (PIF) 70% stake in state owned chemicals company Saudi Basic Industries Corp. which would infuse PIF with $70 billion, almost as much as generated by a IPO for ARAMCO. On solar energy Mr. Falih lowered the plan from 1500 gigawatts to 200 at a cost of $200 billion. Under a new plan this is at 60 gigawatts from solar and wind with 70% produced by the Public Investment Fund, the state's investment fund.   ...

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Hundreds of thousands of people rallied in Barcelona in favor of independence for Catalonia on Sept. 10, 2012.

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With the end of the yen carry trade and the flight to safety the surges 10% last week.

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Egypt's new prime minister, Hazem el-Beblawi, in July 2013, is a professor of Economics who received his doctorate from the University of Paris in 1964. He has taught economics at universities in Egypt, Kuwait, France and the U.S. After 15 years teaching at the University of Alexandria, he worked in development banks in the Middle East for another 15 years, joining the Finance Ministry in 2011. He resigned in protest against military shooting of protesters at the time. Egypt has about $14.9 billion in reserves according to Egypt's central bank, less than the $15 billion needed for three months of imports. Egypt needs to negotiate a $4.8 billion loan from the IMF. Earler negotiations were stymied by the military in 2011, and el-Beblawi will now be negotiating with the head of the Constitutional Court as president, after the ouster of president Morsi of the Muslim Brotherhood.

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The European Union Commission president Manuel Barroso announced a multiyear $15 billion package of loans and grants for the new Ukrainian government on March 4, 2014. No immediate conditions were specified. Barroso said, this is "designed to assist a committed, inclusive and reforms oriented government in rebuilding a stable and prosperous future for Ukraine." This is meant to replace the help offered to the previous pro-Russian government by Russia and now cancelled with the ouster in street protests of that government. The U.S. has offered $1 billion in loan guarantees. For Ukraine this offers the prospect of making a new start under EU and possibly IMF guidance. The needs are estimated at $35 billion in international assistance loans over 2 years by the Ukrainian government, because of the dire state of the Ukrainian economy.

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The Peronist candidate Alberto Fernandez wins Argentina's election with 48% support. Mr. Macri's economic policy led to mismanagement of the economy, and recession, high inflation. Mr. Macri took on $100 billion in foreign debt and had to turn to the IMF for a $57 billion bailout. The shift in administration happens as the peso tumbles. By lifting capital controls in 2016 when the official rate was 10 to the dollar Mr. Macri shifted direction but failed to manage this in a prudent way leading to a jump in the foreign debt. By the second half of 2018 this policy led to the peso falling to 45 to the dollar and another drop by mid 2019 to about 60 to the dollar. The central bank has burned about $22 billion or a third of the central bank reserves to defend the peso, including $4 billion only last week. A third of this decline in reserves is due to withdrawals as capital controls were reimposed., the remainder due to interest on debt and bank interventions in currency markets to defend the peso. Customers are now limited to $100 in withdrawals leading to demand in the black market pushing the rate to 75 pesos to the dollar. Argentina is no stranger to these crises, yet they repeat every 10-15 years. The earlier Peronist administration of Mr. Nestor Kirchner came in when there was economic collapse in 2003 and had to suspend debt payments as a last resort. Negotiations were begun with lenders only after 2007 when Mr. Kirchner's wife Christina Kirchner assumed office. She won the election in 2011 but was defeated in the 2015 election by Mr. Macri, and reelected in 2019 as vice president running under her former chief of staff Mr. Alberto Fernandez. The Peronists are a socialist party and restored a degree of stability to the economy, limiting foreign debt and managing the economy with a rebound in commodity prices such as soyabeans exported by Argentina to meet growing demand in China. By 2015 the country appeared ready for a change, but Mr. Macri's austerity policies and mismanagement of the debt led to a repeat of earlier crises with high inflation and collapsing peso, hitting working class Argentines.    Argentina has a long history of alienation with IMF loans with policy strings attached for austerity spending, starting in 1957.  About 58% of the people who voted Macri into office opposed turning to the IMF in May 2018 after interest rates were raised to 40% by the central bank to stem a drop in the peso. The IMF loan this time was a shorter duration loan on better and was supposed to help Mr. Macri stabilize the economy and its cash and payments position. The jump in foreign debt including issue of dollar denominated bonds, lack of caution and prudence in managing the finances, lack of currency controls, drop in foreign investment by 2019, and the fall in commodity prices from the commodity boom years especially soyabeans, combined to create another collapse in Argentina. It was thought that the 2003 crisis that hit the working class and poor hardest was behind it once and for all. Yet only 15 years later the country is in a similar mess and hardships, showing that prudent management of finances, maintaining social programs to support the middle and weaker segments, and ways to create sustainable growth from within, are still the major problems facing not just Argentina, but also Brazil, Chile and other nations of Latin America.   ...

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When so much of infrastructure healthcare and education still needs more funding, and when St Paul's Cathderal lacks essential funds for basic maintenance and is in danger of closing, the Greensill scandal shows how much reallocation of funds to infrastructure, health, and education to help workers, students and families is needed. How much the existing culture distorts allocation of capital in ways that are vital to the future of families, students and workers, and lobbying acts in ways that are against the national interest. Here the WSJ says the lobbying of David Cameron, former UK prime minister extended to getting access to funds for Greensill, a  company that operated in  supply chain finance, lobbying for funds from the emergency financing facility provided by the Bank of England. Treasury rejected 56 messages sent by Cameron to top British politicians over several months to have rules changed. Greensill went into bankruptcy in March 2021, stranding investors who had put in $10 billion. A parliamentary committee is now looking into this case of Greensill. The company was founded by an Australian Lex Greensill, and does little more than provide companies a cash advance to stretch out the time to pay bills. One question no parliamentary committee will ask is why when the needs for infrastructure, health and education are so great $10 billion in funds, public or private even go into something like supply finance that does so little for the country. This is an example of the kind of distortion in the uses of capital that has become commonplace today, creating societies and countries with poorly  funded infrastructure and essential services in the advanced countries of Europe and the US. ...

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About 60% of Americans think the testing for coronavirus and getting medical supplies to health care workers is too slow, in a poll by Wall Street Journal/NBC News. About 6 in 10 Americans in a new survey say they are concerned that the U.S. would move too fast to loosen coronavirus restrictions to slow the spread, and only 3 in 10 say they are concerned that it is not moving fast enough. About twice as many Americans thinking the risks were higher that public authorites and governors would reopen states too soon. About 75% of respondents in the survey say they are very or somewhat worried about themselves or a family member getting the virus. Mr. Trump's approval rating  remains unchanged from March with 46% approving. Most people place their faith in the governor of their state- 66%, and Mr. Fauci, Director National Institute of Infectious Diseases- 60%, than anyone else. On the economy president Trump is seen as being better at handling the economy 47% to 36% than Democratic nominee Biden, even though Biden has a nine point lead. This confirms the widespread dissatisfaction at the way medical supplies shortages are felt at hospitals, and the way testing for coronavirus is happening with not enough testing. President Trump perceived by business and the public as better at handling the economy is also confirmed in this survey. The dissatisfaction with the president for supplies shortages and testing lagging behind may also be tempered by a sense that the public has not taken aggressive action in supporting an early lockdown with many governors and people not supporting or following strict distancing rules till late March. By contrast the president acted quickly to stop all flights from China. ...

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Patience and remaining undeterred with SPD at 15% just months before the election helped SPD'S Scholz to win. There was also a carefully planned campaign around Scholz, unity in the SPD behind Scholz. Scholz and SPD realized that there was a major opportunity to win confidence of Germans in the pandemic aid packages for Germany and the European Union that Scholz put together. Scholz took charge chairing meetings when Merkel was in isolation. In this way he not the outgoing chancellor Merkel was seen as the architect of economic recovery from the blow of the pandemic.  Percentages are deceiving including the drop to 15% for SPD. Scholz pointed to public fatigue with the two major parties and need for change had led to shift to Greens, and other parties. By working with Greens to develop a common approach based on borrowing to invest in infrastructure and climate change Scholz realized he could both tap into skills of a younger generation that had gone to the Greens and build Germany along lines that also tackled climate change. This created a new and real option for Germany- the experience and new zeal for workers and families of the changing SPD under Esken and Scholz with the energy and zeal for tackling climate change of the Greens under Habeck and Baerbock. As a map of Germany in the NYT shows on September 28, the numbers can be deceiving. Except for Bavaria in the south most of Germany's regions including cities of Cologne, Berlin, Hamburg voted for the SPD or the Greens. Most of the map is red color of the SPD, with small densely populated pockets in cities Cologne and Berlin for Greens. Apart from Bavaria and Thuringia-Saxony, the election was won by Greens SPD by big margin. ...