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The Nikkei jumped 5% on March 13, on comments that the Japanese prime minister supported calls by the U.S. government for increased stimulus spending by G20 countries. Taro Aso, the Japanese prime minister said he would announce an addditonal stimulus soon.

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In the small Dutch town of Delft a factory of Unilever that operated for 124 years is now closing after a 4 week strike and settlement of $25 miillon pounds. Its part of Unilevers restructuring plan led by a former Navy officer with Motorola experience. Unilever has far smaller sales than P&G but more employees and it has lagged behind in responding to a changing market while P&G has been moving with changing market trends and making quicker decisions. To speed up decisionmaking and get people to perform the roles needed by the market, the right people in different jobs its scrapping the opld system and letting go half of the executives in the company- a big move. Roles are being reassigned based on market needs, leadership skills, and sales and profits of divisions and growth areas.

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Stanley Fischer, former head of the Bank of Israel, is the likely candidate for vice chairman of the U.S. Federal Reserve in 2014. Fischer is author of a 1977 paper in which he supported an activist central bank monetary policy to tackle economic downturns. As deputy director of the IMF he helped build the "Washington Consensus," which supported flexible exchange rates, free capital flows and balanced budgets. The IMF austerity policies came under much criticism in S. Korea, other Asian countries, Russia, and Latin America during this period, especially high interest rates and sharp spending cuts during downturns. He is a former MIT professor and a dual citizen of Israel and the U.S., born in Zambia (Northern Rhodesia).

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The Bank of International Settlements warns that China's "credit to GDP gap" is 30.1. A figure of 10 normally is considered to be high and needs watching. The People's Daily carried an article presumably by president Xi Jinping warning about the consequences of the debt that had been growing "like a tree in the air." The debt to GDP ratio was at 255% at the end of 2015, and is up 107% since 2008 when the financial crisis led to a huge stimulus that has accelerated debt growth. The corporate debt is at 171% of GDP. The article in the People's Daily warned about reflexive stimulus every time growth slows and said that China cannot any longer "force economic growth by levering up." Cross border liabilities is one area of progress falling by a third to $698 billion, as companies cut debt quickly before the U.S. Federal Reserve raises rates. In the future China is more likely to roll over debt as Japan had done following its debt surge and bad debt with zombie companies, which would in turn lead to lower growth. In the past the government was able to absorb the growing debt because it was not as high as it is today, and the economy was growing rapidly. This is no longer the situation, the reason for alarm at the situation facing China. A spike in interest rates of 250 basis points is cited as one situation which could affect China adversely. ...

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Plaid Cymru leader says "decades of complacency caught up with them," and he derides Starmer's "managerial politics." Lucy Powell is shown on this page charting a new course for Labour as deputy leader elected by 54% amidst all this chaos of the Starmer leadership years. A sense of conviction and doing what is right with all the conviction and hard work that backs it is missing in the Starmer leadership. Labour needs to get back to listening to its grassroots and be what it truly is a party of the working classes, the middle class and the vast segments of the whole people of Britain.

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Nirmala Sitharaman brings together France, Japan, and India to bring attention to resolution of debt issues of Sri Lanka, Ghana and other countries during the annual spring meetings of the World Bank and the IMF in Washington D.C.

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Jens Weidmann, president of the Bundesbank, says central bank "independence is lost when monetary policy is tied to the wagon of fiscal policy and then loses control over prices." Weidmann and Merkel emphasize their continued opposition to euro-bonds. Merkel tells the German parliament on Dec. 14, 2011, euro-bonds "aren't suitable as a rescue measure." Italian prime minister Mario Monti, tells the Italian Senate: "the Italian government insisted heavily on euro bonds, which are not a back-door way to allow fiscal laxity but will boost growth." Monti says the euro bond proposals will be on the agenda for the EU summit in March. Italy auctioned its 5 year bonds at 6.47%, as German two year bonds had a yield of 0.29%, showing the widening divergence between the bonds of the two countries.

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Charlie Munger, vice chairman of Berkshire Hathaway, America's largest conglomerate with a trillion dollars in assets, says Crypto currency should be banned outright. He calls it not a commodity, not a currency, not a security, but a gambling contract with 100% edge on the house. It exists in the US he says only because of a gap in regulation. Munger says China has banned it, so has India with RBI calling for it to be banned. India's central bank RBI governor Shaktikant Das has called i "nothing but gambling" and their perceived value is "nothing but make-believe." He also has called for an outright ban on cryptocurrency saying that modern currency can only be issued by the central bank/government. The question remains why it took so long for Charlie Munger and the leaders in the financial sector in the US  to say this in the WSJ, as it only further damages the interest of ordinary Americans who dabble in these ventures.

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Austrian chancellor Karl Nehammer meets Russian leader Putin for 90 minutes and tells him that he has "lost the war morally" and that "in war both sides are losers." As shown by the World Bank today the Russian economy could be impacted by somewhere between 11% to 25% loss for its economy, for Ukraine the loss would be 45%. For Belarus, Moldova and former soviet republics of Uzbekistan, Tajikistan, Krygyz, the loss to their economies about 30% because the region is interconnected with remittances and other trade impacted. These would be devastating economic losses. The entire region in this part of Europe would be suffering losses. Many of the countries would have to turn to the IMF or the World Bank to remain solvent. One of Russian leader Putin's goals was to build a rival economic bloc from former Soviet republics and regions. Instead the invasion has done just the opposite. The economic losses will have impoverished the whole region.   ...

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Melanie Garson, professor at University College, London, says attention was diverted to expansionist settler programs in the West Bank leading to lax efforts for security on the border with Gaza. Parties on the right controlled the key ministry of Defense and their priorities were the West bank diverting resources,  say experts in this France24 report. Warnings were ignored from the Army, and from Egypt, according to this report. Garson says it will be very hard for Netanyahu to avoid responsibility for not having the mechanisms in place to protect people on the border with Gaza. On this page a former prime minister of Israel who had reached an agreement with Abbas of the Palestinian Authority for peaceful coexistence of the Jewish and Palestinian reflects on that progress and its disruption by rocket attacks from Gaza by Hamas leading to the Gaza war in 2006, 17 years earlier. The patterns are similar with the Israelis and  Palestinians close to an agreement but not going the last mile and external forces disrupting the process at the last moment. ...

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In a massive intervention last week and again this week the Bank of England cut interest rates from 0.25% to 0.1% and launched a 200 billion pound program to buy UK government bonds and corporate bonds to support the economy and business. Investors sold UK government debt for short term cash holdings and invested in U.S. currency holdings as the safest asset they could find, as the economic effects of the coronavirus epidemic hit capital markets. Andrew Bailey, the Governor of the Bank of England stated that it was the government's job of preventing temporary "dislocation" becoming permanent economic "destruction." Business failures are expected as a result of the coronavirus impact and also layoffs resulting in a temporary jump in unemployment. The government needs to take steps to mitigate these effects in the UK as is being done in the U.S. by the Trump administration with $1 trillion in direct assistance to business and people affected by the crisis. ...

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The Japanese stock market index Topix dropped 6.1 percent on August 2, 2024. What caused this is the Japanese yen going from 161 to the US dollar to 150. The strengthening of the yen comes as the markets sensed two things- one the US Fed considering a rate cut based on employment and inflation reports, and the Bank of Japan raising rates. The rate increase of the Bank of Japan leads to a shrinking of the wide interest rate gap between Japan and the US. That gap had shifted money in Japan in the direction of US holdings. On Aug 5 the Nikkei 22 Index dropped 12.2 percent. It rebounded on August 6 by 11%. By August 7 the Nikkei 225 index was up another 1.2 percent. The situation can be summed up by saying that the Nikkei settled into a situation which recognized some strengthening of the yen to 151 to the US dollar. The fundamentals for the US and for Japan have not changed.

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The situation at Chinese banks is not affected much by subprime, Bank of China has about $8 billion in subprime assets. Income will be less in 2008 compared to 2007.