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In a closely watched election Mr. Wilders of the far Right in Netherlands gains 20 seats, far behind centre right People's Party for Freedom and Democracy of prime minister Rutte who won 33 seats. The Dutch Green party which is strongly pro- Europe went from 4 seats to 14 seats, the Christian Democratic Appeal party gained 19 seats and the pro-European Democrats 66 party also gained 19 seats. In the 150 member parliament Rutte needs 76 seats to form a new coalition government, and he is likely to ally with these other parties to form a new government that supports strongly the European Union. This editorial in the NYT says the people of the Netherlands turned out in large numbers to support pro-European Union parties. Next the focus is on France and Marie Le Pen's challenge from the far Right. Cyber threats from Russia are seen as a way to discredit otherwise strong candidates, and the French government is taking this seriously. Chancellor Merkel said she "was very happy that a high turnout led to a very pro-European result," and president Hollande said this was "a clear victory against extremism."  ...

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Portugal leads the world in developing soccer players, no country has hundreds of soccer professional players all over the world. A country of just 10.3 million, the defending European champion, it has 292 professional players in 45 countries. Even Italy, another soccer crazy nation has only 105 pros abroad. Much of the development of soccer players from a very young age happens at sporting clubs Benefica, Porto, and Sporting. They act as scouts, finishing schools after rigorous practice, and places that transfer players to other clubs, all put together in one place with large soccer academies. The uniformity of coaching, and the primacy of soccer as a sport helps Portugal dominate soccer in a way that is not reflected in its size. Soccer fields in all directions is what you see at Benefica's training facilities in Portugal. 10 soccer pitches are not enough for the director of Benefica's youth academy. 10 different teams of exciting preteens to Portuguese pros need to practice every day.  Christiano Ronaldo was found at Sporting, Ricardo Carvalho at Porto. One boarding school at Benefica has 89 students who do their academic studies at the club and play soccer, attend classes in the morning and play in the afternoon. There are 3 different teams under 14. A pathway puts some of them into the senior squads or for them to become attractive enough to draw a large transfer fee outside Portugal. Five different talent centers and 200 people search for talent by watching under 10's or 12's play soccer games. Once they are chosen they move to Seixal, outside of Lisbon for training. The clubs essentially create value through selection and training for years in soccer academies within the clubs. The clubs support their activities by having a lower cost way to access talent at home, and by generating the hefty transfer fees. Since 2014-2015 season the surplus for Benefica is about 540 million euros. Costs are in the eight figures making it possible to generate a profit by having a sale of a few good players to lower profile teams such as Israel, even if they are not at the level of the top players in the Champions League.  ...

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The austerity plan that prime minister Belusconi of Italy set before parliament on August 29th was quite different to the plan he agreed to in negotiations with the European central bank. The negotiations led to support by the ECB with purchase of $30 billion of Italian bonds. Berlusconi left out a surtax on top incomes in the private sector. It also left out savings to be made at the local government level by mayors and governors. Berlusconi proposed a new pension calculation which would postpone the retirement of Italians by excluding military and university service. Also being prosposed by Berlusconi and opposed by unions is the extension of the retirement age for women. Unions say this will make it harder for Italian women to care for their grandchildren in a country without an adequate system of daycare. Slowly the whole package of austerity measures seems to be coming apart and this alarms ECB President Claude Trichet and his successor Mario Draghi.

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Sofia Diego from the Southern European region of Spain and Portugal, says the idea of a multi-speed European Union as put forward by some in Brussels, including Jean-Claude Juncker, is not the answer- because at some point it makes the whole exercize of a united Europe futile with some countries choosing to ignore the very ideal of European unity. In fact she says we have come too far in that direction and it is necessary to pause and reflect what this means. France's leading presidential candidate Emmanuel Macron has called for a closer union as a better solution to eurozone financial stability with a tighter union. German public opinion and other opinion in the EU does not favor more concessions following Brexit. This opinion from a Southern European country shows how young people especially have developed a new attitude and feeling of togetherness as the European generation. Young people from all parts of Europe have a changed attitude compared to previous generation, and this is a valuable experience that needs to be nurtured with closer interaction to take the EU experiment to the next stage. ...

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France lags behind Germany and other countries in competitiveness. France's share of European exports decreased from 15.6% in 2000 to 12.5% in the first 5 months of 2011, according to Coe-Rexecode, an economics consultancy firm. Germany has used the last decade to lower social spending and state spending, bring wage restraint, and making industry more productive. France has not experienced a similiar process. Competitiveness and growth is needed for France to improve public finances. After the rise in borrowing costs to Italy France's premium over Germany to borrow for 10 years went up to 71 basis points on July 13, it is now at 62 points. France's trade deficit is rising and was 7 billion euros in April and May, according to Societe Generale.

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This WSJ editorial says despite his call for "hard-hitting sanctions" prime minister Cameron of Britain has not taken action to stop the flow of "dirty money" from Russia into the City of London. About $75 billion left Russia so far in 2014 in capital flight as the Russian elite shifts money overseas including to the City of London. France has a planned $1.6 billion sale of Mistral naval ships to Russia, and will need the British example to cancel this sale. Putin's strategy is to distance Europe from the U.S. In the EU countries opposing tougher sanctions are Germany, Netherlands, Italy and Greece. Netherlands suffered the most with 193 Dutch citizens killed in the shooting down of Malaysian Airlines Flight 17 over eastern Ukraine.

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Mario Monti, prime minster of Italy, defends his labor reforms in Italy, in a letter to the Journal.

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Landon Thomas Jr. looks at the situation in Spain and finds it hard not to conclude that austerity policies are not working in the absence of economic growth, and increasing unemployment. Unemployment in Spain is at 24% and growing. Deficit reduction is likely to take longer with the deteriorating economic outlook. Spain's economy minister, Luis de Guindos has announced Spain plans to increase consumer taxes in 2013, including the VAT, which is currently at 18%. This would further depress consumer spending. Bondholders sense dangers from lack of economic growth and competitiveness, as much as they sense dangers from uncontrolled regional spending. As a result investors are leaving Spain. According to analysts at Credit Agricole Cheuvreux in Madrid, 100 billion euros (132 billion) have left Spain, including distress sales- coming from insurance companies, pension and sovereign wealth funds reducing holdings of Spanish bonds.

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Matteo Renzi, 37, the mayor of Florence, wins 35% of the vote in primaries for the centre left Democratic party in Nov. 2012. This was a challenge to party leader, Luigi Bersani, who won 44.9% of the vote. Renzi appealed directly to younger voters.

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The ECB reduced a short term lending rate to 0.75%. The People's Bank of China reduced its one year yuan lending rate by 0.31% percentage point to 6%. The Bank of England increased its bond buying program by 50 billion pounds to 375 billion pounds.

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This story by Asa Fitch of the WSJ shows how NVIDIA co-founder Jensen Huang, built NVIDIA into a major semiconductor company. He did this by developing faster chips for graphics and other uses using parallel processing instead of sequential processing. It is now a rival to Intel as it plans an acquisition of ARM Holdings in Britain. Huang started NVIDIA in 1993 when computer users wanted faster computer graphics.  NVIDIA has about $10 billion in sales compared to larger rival Ital with $72 billion in sales. With its efforts in AI and other tech fields NVIDIA now surpasses Intel in valuation. Softbank bought ARM Holdings in 2016 for $32 billion. It is now looking to sell ARM to NVIDIA or another buyer. Problems it faces in the acquisition is British laws that may decide to prevent approval for sale of the company and the loss of jobs. ARM based in Cambridge has 6700 employees. ARM makes the chips for smartphones. The trade war between the U.S. and China and the sale of ARM chips to Huawei are also factors that will be considered in British approval or disapproval of this sale of a British company owned by Softbank of Japan.  ...

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The German Statistical Office reported that GDP growth in Germany was 0.1% in the second quarter of 2011. This compares with GDP growth of 1.3% in the first quarter. This is slower than Italy which came in at 0.3% for the second quarter. France had no growth in the second quarter. The German Statistical Office said the causes were: lower household consumption and construction investment, imports rising faster than exports and a buildup of inventories. Analysts at Commerzbank say the warm spring resulted in construction activity starting earlier and taking out some of the growth in the second quarter, in its absence the growth would be 0.4% for the second quarter. The statistics office said an additional 553,000 persons were added to employment compared to the prior year, with a total of 41 million employed.

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The IMF currently has $202 billion in basic resources and an additonal $41 billion it can tap in international financial crises, for a total $243 billion, according to IMF documents. Under a G-20 initiative a new lending pool will replace the $41 billion and add about $250 billion of new money. This money will be needed to address the new committments required in the current euro-zone crisis. Seven Europen countries are expected to ratify the lending program with parliamentary approval so that it can be put into place in 2011- Austria, Belgium, Italy, Switzerland, Luxembourg, Norway and Sweden. This will bring the IMF's lending capacity to over $450 billion. The US has approved the increase and is committing about $106 billion, larger than its 17% ownership stake in the IMF.

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Bruni of the NYT interviews the new Mayor of Rome, a transplant surgeon who lived most of his life in Pennsylvania. The effort by expatriates like the new mayor Ignazio Marino to give Italy a new start following the Berlusconi era and the stagnation in Italy's political and economic system. Marino won with 64% of the vote. Many of the people Bruni talked to in Italy are deeply conscious of the difficulties facing Italy as it tries to put itself on a new path, making a transfer to a younger generation, ending the Berlusconi era, and puting aside the sclerotic ways of the past.

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The Republican party (GOP) chances with Trump as the candidate in 2024 are seen with much skepticism by Karl Rove in the WSJ. Republicans need to keep the presidential field of candidates not too crowded for too long, as pluralities in primaries led to Trump winning a large share of delegates even with about one third of the vote in the early primaries for the 2020 election. Another challenge is the work of Trump supporting leaders in states such as Michigan who want to select delegates by convention and not through primaries. Ron de Santis, Governor of Florida, is seeking the Republican nomination, and faces a strong challenge from the former president. De Santis, 44 years, is from Dunedin, Florida, His mother was a nurse and his father installed Nielsen TV rating boxes, with great-great grandparents immigrating from Italy Benevento, Avellino) in 1904. He studied history at Yale and went to Harvard Law School, Navy Justice School after joining the Navy. De Santis was elected to the US Congress in 2014 and 2016 where he served as the chariman of the sub committee on National Security. He founded the Freedom Caucus in these years. In 2018 he ran for Governor of Florida winning by 0.4%, running again in 2022 he won by about 20 percentage points. ...

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Europe ten years ago invested heavily in gas fired electricity plants thinking that natural gas will be plentiful in the future. Now with global demand rising with the emergence of China and Russia. and Western Europe's own reserves, such as Norway's depleting, Europe is in a bind. Alexei Miller told shareholders: "The Natural Gas Market is now a seller's market." Western Europe's share of global gas consumption rose to 17.4 % in 2004 from 14.9% ten years ago. Now countries like Italy and Germany are scrambling to secure supplies and build long term relationships with Gazprom while Poland and other Eastern European countries are facing uncertainty about reliability of Russian gas supplies. Italian oil company Eni is negotiating a long term relationship to cooperate with Gazprom to recover gas from the Russian North and to supply the Italian market. Eni's CEO Paolo Scaroni addressing an industry conference in Amsterdam in June 2006, provided estimates that by 2012 Europe will need 220 billion cubic metres or nearly 2 and half times Italy's annual consumption. Scaroni said: "Where are we going to find all that gas?" Like other countries in Europe Scaroni does not see Gazprom as the whole answer, but sees few other ways to solve supply problems. Italy will invest in liquefied natural gas to have flexibility of sourcing. In the end though Scaroni is relying on Gazprom and says : "This gives them a responsibility to the Italian market .. and it strengthens our relationship."...

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August 12, 2015 marks the change in shareholding structure at The Economist. Pearson, which sold its stake in the Financial Times newspaper to Japan's publisher Nikkei, sold its stake in The Economist, as it shifted its focus to the education industry. Pearson had a non-controlling 50% stake in the magazine since 1928. Three fifths of these shares are being sold to a minority shareholder, Exor, the holding company of the Agnelli family in Italy. The rest of the Pearson shares are being bought by the parent company, The Economist Group. In this editorial the magazine's editors describe the background in which this takes place, and the reasons why this will be good for the magazine and its independence. The shares held by The Economist Group are controlling shares, which ensure the independence of the publication.