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How millenials are helping increase auto sales in the U.S. in 2015-2016. About a quarter of Toyota's sales in the last quarter of 2015 were to millenials, according to Toyota executives cited in the WSJ.

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U.S. auto sales including cars and light trucks reached 17.5 million in 2015, a 5.7% increase over 2014. Larger vehicles including pickup tucks and SUV's account for about half of all auto sales in 2015, with gas prices below $2.00 a gallon in Jan 2016 in most parts of the U.S. The average transaction price was up to $34,428, according to Kelley Blue Book. Auto incentives were up to $3063 per vehicle compared to $2809 ten years earlier, according to Kelley Blue Book. Analysts say automakers will reduce margins to subsidize zero interest loans in 2016 to increase sales. Lower sales are forecast after 2017 as the market will have caught up with much of the pent up demand by then. A plus for the automakers is the lower cost of steel and other material costs, and the better cost structures after bankruptcy, and renegotiated lower union pay scales. Additional plus is new management at U.S. automakers and at Toyota, and the technological advances this management is pushing, including fuel efficiency. Ride sharing, and other services developed by Google, are seen as disrupting the traditional car model to a limited extent. Countering this new development are millenials who are accounting for a quarter of Toyota sales in the last quarter of 2015, according to a Toyota executive....

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A big factor in U.S. car sales, which reached 7.5 million in 2015, exceeding the 7.3 million in 2000, is that a large portion of cars on the road were about 11 years old following the recession in 2008-2009. As Dexter Ford pointed out in a article in 2012 many car owners on the road had replaced the earlier 100,000 mile mark before buying a new car, with 200,000. This pent up demand, and the better technological features including gasoline conserving technology, gave new impetus to demand in 2013-2015. Lower gasoline prices at the pump of about $2.00 a gallon in Jan. 2016 across parts of the country made it economical to own SUV's and pickup trucks. The U.S. car companies Ford, GM and Chrysler-Fiat had sales of 2 million full size pickup in 2015, with the Ford F-150 leading. Car companies have come through a severe crisis and are taking steps to avoid a repeat of the mistakes of the past on fuel efficiency- Ford has introduced a lighter aluminium based version of the F-150 for example. Gasoline prices also provide buyers with extra money to meet car payments which now have been stretched to longer periods and lower rates by auto companies to reduce the cost burden per month. AAA says the average price in 2013 for a gallon of gas was $3.49, in 2014 at $3.34, in 2015 at $2.40. AAA says that 71% of gasoline stations sell gas at less than $2.00 in January 2016, and gas prices are likely to remain low for an extended period with lower demand from China, higher fuel efficiency going forward with stricter standards, new technology for shale oil production, and the replacement of cartel pricing by competing production from Saudis, Iran and Russia. On average Americans saved $115 billion on gasoline, or $550 per licensed driver, according to AAA's Daily Fuel Gauge Report of January 6, 2016. In addition to the $550 saved the higher fuel efficiency with new technology adds a corresponding amount to savings per driver. Add to this the lower payment at low rates over longer periods and the car payment per month has been reduced significantly in a improving job market, to support car sales....

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China's Shanghai stock market declined by 6.9% on the first day of trading Jan. 4, 2016, with trading triggering circuit breakers. The central bank plans to inject $20 billion in short term funds as a signal to investors that it will continue easing.

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Petrobras remains stuck in 2016 with a huge debt load of over $125 billion and a slump in oil prices. CEO Aldemir Bendine is a career government banker appointed by President Rousseff in 2015, as she faces impeachment proceedings for a corruption scandal involving Petrobras. His 11 months in office have been marked by disagreements with the board, with Bendine walking out from one meeting. Petrobras has changed chairmen twice in the 11 months. Bendine's goal of divesting assets worth $15 billion in 2016 may not be achievable say analysts, with other oil companies also divesting assets. As an outsider Bendine faces skepticism from insiders in the company. A oil strike went on for weeks before workers won a raise, resulting in lost production.

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The U.S. Justice Department files a lawsuit against VW seeking $18 billion in sanctions on behalf of the Environmental Protection Agency. VW shares declined by 4 percent. Experts expect an out of court settlement of $12-$13 billion. The inconclusive discussions between the EPA and VW led to the filing of the lawsuit. The lawsuit is seen as sending a message to the auto industry that the kind of behaviour that led to the VW emissions cherating scandal will not be tolerated.

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Hoover Institution scholar Fouad Ajami describes in this essay how a more active policy by the Obama administration could have prevented the chaotic situation in the Middle East, the sectarian conflict, the breakup of Syria and Iraq, the increase in terrorism eventually affecting France and the U.S., and the refugee crisis in Europe. This active policy he says would have included- keeping some presence in Iraq, and taking action to prevent the spread of the conflict by restraining regional and foreign powers and terrorism.

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Trofimov of the WSJ says the action by Saudi Arabia for execution of 47 persons most of them involved with Al Qaeda from tribes, including a Shiite cleric Nemer al-Nemer who led Arab Spring type protests in eastern Saudi Arabia, was meant as much to appeal to domestic conservative Sunni opinion as it was as a counter to Iran. The government of Saudi Arabia increased spending on social benefits after the Arab Spring in 2011, yet was forced to increase prices of some grades of gasoline by 50% at gas stations to conserve financial resources from its $640 billion sovereign wealth fund. The Saudis and the Russians are on opposite sides of the Syria-Iraq war, with the Saudis holding down oil prices as part of the geopolitics of the region, which led to the budget cuts in Saudi Arabia in 2015-2016. Conservative Sunni opinion in the country favors stronger action by the Saudi government against Russian and Iranian intervention in Syria and Iraq, according to Trofimov.