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The Indian government is putting a 76% stake in Air India up for sale. Air India has not made a profit since 2007 and a bidder would be taking on $5 billion in debt. What makes it attractive is a market in India growing at 20% for airline passengers. Potential bidders include Indigo, which is interested only in the international business of Air India to add to the 9 destinations overseas it flies to. Vistara, a joint effort of Singapore Airlines and the Tata Group is also a likely bidder. Air India has international slots at London Heathrow and at New York JFK airports that are attractive for bidders.

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Gig workers at LAX airport are typical of workers in general who work for Uber and Lyft. In comparison to the period before the pandemic these workers now barely make a living wage. $3000 a week has fallen to about  $1000 a week as many drivers compete for the same work, and as users cut costs and offer less for a ride. 

Uber says 43% of the cost of a ride goes for liability coverage. At LAX airport drivers are asked to go to a place 20 minutes from the airport, a shuttle carries passengers to that spot. This has reduced demand for Uber.

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Iran's government drastically cut subsidies for gasoline, electricity and basic food items. Gasoline prices were raised from 1,000 rials (about 10 cents) per liter to 4,000 rials. As a result gasoline consumption is down 14% in early January from the prior month. Use of public transport is up 20%. Fares for Tehran's buses and subway went up by 20%, far less than the price increase for gasoline. The government introduced a $40 per person monthly stipend to soften the impact especially for poor families. Iranians are gradually tightening their belts and adjusting to the price increases, reducing wasteful energy use. Iranians have one of the highest rates of wasteful energy consumption in the world, according to IMF. This is because Iran has so far provided generous subsidies, covering 80% of the cost of energy and basic food items. President Ahmadinejad has introduced the Smart Subsidy Plan which calls for a gradual five year phaseout. These cuts will save $100 billion a year, according to government estimates, and is supported by the IMF. Iran is rigorously monitoring price increases in retail stores to ensure that retailers are not passing on the increases to customers. Trucking and transport businesses are allowed to raise their fees by only 15% to cover rising costs including the 837% fuel price increase....

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Martin Fedstein has a new idea for solution to the mortgage and credit crisis. He has a Loan Substitution Program and this is how it works. The Government would loan mortgage holders 20% of their current mortgage loan, with a 15 year payback period, and an adjustable interest rate based on what the government pays on two-year Treasury debt (now just 1.6%).The loan proceeds would go to immediately reduce the borrower's primary mortgage, cutting interest and principal payments by 20%. Participation in the program would be voluntaryand participants could prepay the government loan at any time. The basic idea is to lower the Loan to Value Ratios and help prevent foreclosures and defaults so that house prices which may have another 10-15% to fall, do not fall steeply and overshoot as millions of foreclosures take place across the country in coming months. Legislation would require that the government must be repaid before all creditors except the mortgage lenders, and that the debt to the government would have to be paid, even if the homeowner defaults on a mortgage. The critical thing this would accomplish is that homeowners would pay less in total interest. In exchange for that reduction in that interest, they would decrease the amount of the debt they can escape by defaulting on their mortgage....

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This report in WSJ focuses on the problems of surveillance of the opposition conducted by the Mitsotakis government compared to the interview Mitsotakis gave Reuters on the island of Crete also shown here. That interview concentrates on the economic achievements of the Mitsotakis government in pulling Greece out of the severe eurozone debt crisis of 2010 when it lost about 25% of economic output. It borrowed more than it could pay off and interest on debt, debt payments, quickly overwhelmed the economy during 2010-2015. Greece's opposition party Syriza failed to tackle the crisis when it was in power, and almost put Greece out of the eurozone rejecting the strict conditions of loans from the European central bank. It mentions comments such as the old Balkans ways of doing things still prevalent in Greece, the lack of transparency in the surveillance of the opposition. This could be said also about the way debt was allowed to accumulate and overwhelm Greece by 2010. Syriza blamed Germany but failed to ask Greece to assume its own responsibility in letting debt buildup in lack of transparency of all parties involved. Mr. Mitsotakis pulled Greece out of the debt crisis and put it on a stable path of growth since his election in 2019. ...

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The testing shortages in the states and the lack of enough cartridges provided by the U.S. government for Abbott Labs testing machines is causing much frustration, as shown here in the WSJ. Illinois one hotspot is an example. Illinois governor Pritzker says he spoke to Abbott Labs a week ago and thought he had an agreement to conduct 3000 tests a day. He then learned that the U.S. government was taking over the purchasing and distribution of the tests.  He  received 15 Abbott machines and 120 cartridges for all of Illinois which would enable 120 tests from the U.S. government. Abbott currently is making 50,000 test cartridges a day for the rapid test. Detroit which had better experience with the Abbott machines says it has conducted 1000 Abbott rapid tests, shortly after Abbott got approval on March 27. With the 1000 tests Detroit was able to test first responders and bus drivers in quarantine. Detroit recently purchased another 4000 additional tests from Abbott which it wants to use in nursing homes and homeless shelters, vulnerable populations in the city. The Abbott test provides result in 15 minutes making it very effective in implementing fast quarantine action when the virus is spreading quickly in a specific population.  Other governors say they are banging their head against a wall trying to get more tests. ...

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The countries of Central and Eastern Europe are building closer relations with Taiwan. Central European and Eastern European countries trade less with China and see close relations with the US as essential for their security. This includes Poland, Slovakia, Lithuania, Czech Republic. Taiwan is increasing investments in Eastern Europe after investments by China failed to materialize in the last decade. Taiwan foreign minister is now on a visit to Slovakia and the Czech republic. For many Eastern Europeans the dominance of China brings back memories of the dominance of Soviet Union and the Cold War.  Taiwan says it is looking to deepen ties in the industrial, scientific and green energy fields with the region. Eastern Europe's perception of China has changed in the last three years as shared values of rule of law, democracy, and human rights with the rest of the world and the US are seen as important for the region.  Western Europe with France and Germany is also gradually moving away from its close dependence on trade with China. The French Senate is leading an effort to build closer ties with India by hosting Ambition India 2021 starting on October 29. Germany under Scholz of SPD and Baerbock of the Greens is moving away from the Merkel CDU era of close dependence on China in trade. ...

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CSU leader and chief minister of Bavaria, Markus Soder, says no moral legitimacy to govern could be derived from Christian Democrats poor showing in the German elections. CSU is part of CDU/CSU alliance. CSU is the party in Bavaria with its state capital in Munich. Soder says CDU should not be attempting to form a coalition. A look at the map of Germany given on September 28 in NYT shows  CDU/CSU black mostly in southern Germany in Bavaria. The rest of Germany is all red Social Democrats with Greens in densely populated Berlin, Cologne and Hamburg, and AfD in Saxony/Thuringia in the east.  This shows that the 2% margin lead of Social Democrats over Christian Democrats under Merkel/Laschet does not reflect the true picture of this election. Without Bavaria the CDU has clearly lost this election by a large margin to the Social Democrats and Greens. This is a message also for the Free Democrats FDP as the FDP program belongs clearly to the past and the Merkel years of not moving Germany forward with investment to modernize Germany. The Greens and SPD promised voters in their programs loudly and clearly to invest big in modernization, and this is the mandate handed to them by voters. ...

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This report in the NYT focusses on the failure to invest in New York subways, including failures in maintenance. It follows other detailed reports in NYT that looked at years of neglect and mismanagement of the New York subway system with interviews of key officials. This is costing subway users dearly as they face delays, and the poor quality of rides on the system compared to other systems worldwide. This report describes a subway accident with a loose piece of rail on a track on June 27, 2017 that could have been prevented with proper maintenance. This was one of 82000 delays on the system in June 2017 alone, one of the worst months in many years. A NYT examination of MTA records and reports shows the neglect of maintenance was one of the main cause of delays, including problems with turnover, and lack of training for new employees. The system's age (113 years old) and its size complicates problems leaving less room for the errors it is experiencing today. The world's oldest subway system in the most advanced of industrialized countries in the worst possible shape, showing the nation's lack of investment in essential infrastructure. A failure at a more basic level- a failure of the nation's culture to set the right investment priorities. ...

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U.S. vice president Mike Pence visits the demilitarized zone between North and South Korea and says that North Korea should not pursue its nuclear weapons program. Pence says the U.S. wants to persuade North Korea to abandon its nuclear program "through peaceful means" but "all options are on the table." Pence said North Korea should not test "U.S. strength and resolve."  Snap elections are to be held May 9, 2017 in South Korea, with one of the candidates saying he would reconsider deployment of the THAAD missile system. Following the deployment of THAAD anti missile system in South Korea China has responded with a economic boycott of South Korean goods. Seoul is only 30 miles from the border with North Korea and the sentiment in South Korea is to avoid military action which would affect the region around Seoul of 20 million people. The missile tests by the North are also seen as a threat to South Korea and Japan. China sees the THAAD system as an effort to increase American presence in the region and has opposed deployment. The U.S. response has been to speed up the deployment of the THAAD missile system ahead of the election in South Korea on May 9, 2017. ...

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As Neil Irwin points out in the NYT the effects of the steel tariffs announced by president Trump are negligible on the U.S. economy- the impact of $30 billion in steel imports and $17 billion imports of aluminium on a $20 trillion economy. As Commerce Secretary Wilbur Ross pointed out in a television interview it is the impact of a fraction of a penny on a food can, and tenths of one percent in the price of a new car.  What markets when settling down look at is the facts from how situations were handled from tariffs on solar panels to action on NAFTA. Twitter comments of Trump have not reflected actual policy as it was carried out as Neil Irwin points out. On tariffs for solar panels this has fitted in with action from preceding administrations says Irwin and also fits in with Trump administration policy to send a message when lower prices subsidized by foreign governments hurt U.S. producers. On NAFTA Commerce Secretary Wilbur Ross and other key economic advisers around Trump have acted along with the calls from prime minister Trudeau and contacts with Economics minister Videgaray of Mexico, to a policy of making some changes to NAFTA, very different from the calls for rejecting NAFTA made earlier by president Trump.   ...

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The campaign rhetoric for renegotiating NAFTA and building a wall at the border has had a sharply negative effect on growth in Mexico. Growth slowed in 2016 and is expected to be close to zero in 2017 with declining foreign investment in the economy. The uncertainty is leading to sharp decline in foreign direct investment of 24% in the first 9 months of 2016, according to the Bank of Mexico. Further declines can be expected in 2017. The decline in the value of the peso of 16% since May 2016 has led to 6 interest rate increases in the past year. Inflation on annual basis was at 4.72% in Jan. 2017 and is rising. As Mexico depends on exports for one third of its output growth, and 80% is sent to the U.S., there is a need to diversify with trade agreements made with the European Union and other countries. Mexicans now question the value of NAFTA trade agreement as average growth of 2.6 since NAFTA was signed is below the 4.6% in the 2 decades prior to that. And poverty level is the same with about 60% of people in the underground economy. In addition crime, drug trade, a weak education system, weak rule of law, political corruption, show that Mexico has not made the progress since NAFTA that it should have made. ...

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This report in The Times gives an extraordinary look at the man who is prime minister Boris Johnson's key adviser, as chief executive, to get Brexit done or take Britain into a general election. Dominic Cummings, 47 years, was the key strategist for Leave in the first Brexit referendum. He is somewhat of an individual who breaks all conventions and relishes the prospect of doing so. The Times says he has thrown bombs at the establishment including Blair and Cameron for 20 years. He has contempt for the Cabinet Office, Downing Street, the Treasury, and in his view the officials have a misplaced confidence and are not competent. Mr. Cummings is played by Cumberbatch in British Television Channel 4's Brexit: The Uncivil War, which is how Britons know him. In his view one needs to dismantle the existing physical infrastructure of government as a reform priority, says The Times. He has his own reasons having had his confrontations with British ministry officials who repeatedly and often incorrectly cited EU regulations as obstruction for much of what Dominic Cummings wanted to do as Adviser to Michael Gove in the Education ministry. His early beginnings at University mentored by a professor who was a serious opponent of Britain joining the European Union also influenced Cummings.  ...

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Concern that the $1.6 trillion aid package could become a bailout for business delayed passage in U.S. Congress, with Republicans trying to allay these concerns. The legislation in Congress would offer $350 billion for small business loans that may be fogiven if firms use them to keep workers on payroll and $500 billion to allow the Treasury Secretary to make loans, loan guarantees or investments to support businesses, states or municipalities. Democrats want less power over the money given to the Treasury Secretary and for money to be directly allocated to the states. The legislation also includes $200 billion for unemployment insurance, and direct payments to households estimated at $300 billion.  Another $242 billion includes appropriations, including money for hospitals and protective gear.  The one time payment to households is $1200 per person and $500 per child, with payments stopping at a specific income level. Unemployment assistane will now be given for 36 weeks instead of 26 weeks. These two items have universal support. It is the $500 billion for businesses with authority given to the Treasury Secretary that is the controversial part. Not so much the money given to businesses and required to go to payroll as the money to businesses in loans and other action with the Treasury Secretary making the decision. ...

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This NYT editorial provides statistics for the problems of young people facing high student debt, high unemployment, and working in jobs that do not require their educational qualifications. Federal Reserve data show 44% of young college graduates in 2012 working at jobs that did not require a college degree. Underemployment stands at 16.8% in the U.S.- this includes young people too discouraged to look for work and those stuck in part time jobs. Put another way the hope that existed in the 1970's for a better future is simply lacking. The boom, bust, and corrective policy preceding and following the 2000 and 2008 crises have acted as a huge distraction for needed policy steps and imposed additional penalties on young people, just as other trends in the globalized manufacturing and IT industry were shifting jobs overseas.

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The annual report on China by the IMF points to a diminishing margin of safety and higher risks for delays in needed economic changes from earlier infrastructure and construction focussed policies which neglected Chinese consumers and savers. The IMF pointed to risks from the shadow banking system and the real estate bubble that need to be addressed.

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Galston cites a Federal Reserve Board of Chicago 2014 study showing setbacks for black people in achieving improvement in income status. Even for children born into middle income black families about 55% are expected to fall below middle income status compared to 36% for children of white middle income families. The problem is not just the gap as Galston points out but what it says for the declining income mobility for the white middle class when 36% are likely to see declining status and prospect for the future, and 23% will see no improvement. Overall it shows a lack of income and social mobility for whites and minorities alike compared to the past improvements since the 1960's, not a bright prospect and less hope for the future the way things are, and why so many of the establishment candidates and existing policies are being questioned by voters.

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As the American banks were better capitalized before the global financial crisis than the European banks, and they were recapitalized with taxpayer money during the crisis, the Europeans and the French in particular feel that they have alot of catching up to do. Geithner at U.S. Treasury is pushing for higher capital requirements for the banks, with agreement by the end of 2010 and implementation by 2012. The way these new rules work the Europeans feel would put their banks at a disadvantage, because their banks would have to raise more capital and constrain their ability to provide credit to their local economies. Capital requirements for banks were part of the previous arrangement called Basel II, which covered USA and European banks. Basel II capital requirements rules measured capital compared to assets weighted on the basis of how much risk they carried, but this relied on credit rating firms which were discredited in the crisis. On the subject of bonuses the large banks are trying to influence the discussions. As a result the Financial Stability Board, an international advisory committee of financial regulators is going to make its own recommendations....

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Germany's SPD Deputy Chancellor says in Kiev on August 25, 2025 after the abortive effort by DJT in Alaska for peace talks that improved Russia -US relations as two leading world nuclear powers but did not have the basics in place for Ukraine- Russia direct talks, with Putin asking for territory in the east. "In the three and a half years that this war has been going on, we have always shown that we are not ducking away, but stand by the side of the Ukrainians. And that will also apply to security guarantees."  The big change is that the SPD under Klingbeil in Germany is now working with CDU's Merz to build up Germany's defense forces to act as a deterrent for Europe. There is a change in the mood in Germany and in Europe, from Sweden and UK , France, Italy, for concerted action in Europe that was not seen before. By taking on responsibilities for Europe with 2-5% defense expenditures this has removed the differences between the US and Europe. It means a prolongation of the war but also means this may lead to a stronger Europe, better Russia- US relations, and a Russian and Ukraine more willing to come to a peace agreement based on terms where no side appears to be the loser. Klingbeil added- It is important to have a "really strong Ukrainian army that is also capable of defense. And the second thing is that armaments production is also being ramped up here in Ukraine as well, thereby putting Ukraine in a position to defend itself and deter attacks." If European history since 1400 is any guide when the powers on either side were eventually counterbalanced the power that took a an aggressive position early had to settle for a peace settlement with both sides not appearing the loser. ...

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Three NBC reporters talk to people in areas in southern France, including Cogolin, which voted in a National Front mayor. This report describes the contrast between the National Front under Jean Le Pen and his daughter, Marie Le Pen. Marie took over the party leadership in 2011, and has downplayed her father's more racist ideology, even calling her self Marine dropping her last name. About 22% of French women are expected to vote for Marine, according to Elabe polling agency. In previous elections only 12% of French women had supported Marine's father because of overt racism. Yet recent remarks by Marine about Vichy regime shootings have revived some of the old memories of the National Front among some women. High unemployment and sense of neglect has led to a search for alternatives, and the terrorist incidents in Nice and Paris have added to the momentum for the National Front that calls for tougher measures. The Republican Party candidate Fillon, now has the support of Alain Juppe of Bordeaux, and former president Sarkozy. Fillon is also advocating tougher measures, and it is not clear how many votes would shift from Fillon on the right to Le Pen.  ...

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Greece's national statistics agency Elstat shows data indicating a rapidly deteriorating Greek economy. The unemployment rate went up to 20.9% in November, up from 18.2 % the prior month, with the total number of unemployed at 1.029 million. Industrial output declined by 11.3% in December 2011 compared to the prior year. The unemployment rate is 48% for young people ages 15-24 for November 2011 compared to 35.6% in the prior year. For women the unemployment rate was 25.4% in November, compared to 17% the prior year. In the region of Attica, which includes Athens, the unemployment rate was 21.1% in November compared to 19.2% in October, and 13.9% the prior year. This creates new concern whether austerity measures will work and whether the Greek people can go through a decade of austerity programs, with debt still at 120% of GDP in 2020 under the program designed by the EU and the IMF, or whether there are other solutions that offer more hope of recovery.

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A history of French nuclear energy. How it got started in the area known as Beaumont-Hague. The decision of the French government to pursue nuclear energy and set up new nuclear plants. The efforts to Frenchify the early nuclear technology developed by Westinghouse in the U.S. Today nuclear plants produce 78% of its electricity. Setting up the industry has cost about $120 billion and France has accepted the risks of spradic radiation leaks. Electricity accounts for 20% of French energy consumption, oil takes up 49%, leaving France still dependent on foreign oil.

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For DaimlerChrysler CEO Zetsche, it is " totally unacceptable" not to have a level playing field in the area of union health care benefits with Ford and GM. For the UAW not to give Chrysler the same concessions it gives GM and Ford is seen as having " no rationale" that Zetsche can comprehend. So around Sept 29, Zetsche is already thinking of what to do with Chrysler, including selling Chrysler and working with the new buyer in some areas, as he alludes to the "best structure" in some future arrangement.

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The ECB stands ready to act with the unanimous support of its 25 member governing policy, says Mario Draghi, president of the ECB. Draghi said that "if oil feeds into other prices, that could generate exactly what we want to avoid, namely a spiralling downward phenomenon" for wages and prices. Mark Carney of the Bank of England, says he will see "how things evolve." The U.S. Federal Reserve might slow planned rate increases in 2016, if inflation remains well below the target of 2%, and conditions indicate adverse effect on the economy.