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Paul Krugman points out in the NYT that September 2022 high inflation numbers for core inflation excluding energy and food of 6.6% on annualized basis, is still not a good way to measure actual inflation. This is because housing costs as measured by the core inflation index used by the Labor Department are represented by housing rental costs. The rental costs have a time lag in this index and after a sharp spike are now cooling off. Add to this slowing economies and recessions in European economies and the situation suggests that the economy and inflation may be moderating more than expected. Additional factors are that the effects of sharp prior 2 increases in interest rates by the Fed of 0.75% and a third of 0.75% expected soon, are still not fully realized in the economy. This view was also expressed by experts in the WSJ. It was widely perceived that the high inflation that we are seeing is a result of temporary factors such as the war in Ukraine, food and oil supply constraints, supply chain bottlenecks, new adjustments to manufacturing at home after covid. As these factors ease and after the Fed's action to raise interest rates, slowing economies in Europe adjusting to climate change actions,  the moderating effects on the economy of the costs in switching to renewable energy also a factor, this high inflation has prospects of moderating. The successful switch to renewables particularly solar, and better agricultural practices, could set along term trajectory of moderate inflation in costs of energy and food supplies.  ...

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In this insightful essay Peggy Noonan, former spokesperson for president Reagan, says that Republicans like Speaker Ryan with the Republican Health Care bill are making the same error made by president Obama.. Noonan says she had suggested a different way for president Obama to show compassion for the uninsured- first wait till the 2008 financial crisis was tackled, tackled waste and fraud in Medicare first, then look at the option of expanding Medicare to help the uninsured, and not the approach taken of swiftly focussing on the Affordable Care Act early in the first term disregarding Republican objections. She says Republicans are making the same mistake now by ignoring the impact the bill would have on Trump's base of working class Americans who may be affected by the bill's provisions not taking into account incomes in offering incentives or subsidies. Noonan says Trump did get one thing right in calling it a "carnage" for the worsening opioid epidemic in America which has hit rural areas and parts of the midwest hard. Noonan says Eberstadt has correctly documented the collapse in working class Americans wages and standard of living, and Caldwell the opioid epidemic at another level to their health. She also supports journalist Carlson who questioned Speaker Paul Ryan's judgement about eliminating the tax on wealthy investors in new legislation in a Fox News interview, as she says responding to the sense of America at the moment means listening to the sense of being left out of ordinary Americans, who have done not as well as the wealthy who have benefitted from a surging stock market.  ...

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Argentina, South Africa, Mexico, India, UK, European Union elections are taking place by June 2024 and US in November 2024. Yet it is misleading to lump them together. Much discontent is there to see as in the UK with cost of living, governance, time wasted on Brexit, India with lingering effects of the pandemic on rural voters, caste based voting. In India protest vote of lower caste Dalit voters in Uttar Pradesh and Maharashtra, even with government support in forms of universal healthcare, food for poor households during pandemic extended, cooking gas, housing support, clean tap water, direct bank account deposit to accounts of poor and farmers. Yet in the states in the south and east in Orissa and Andhra Pradesh, and generally in the south the BJP vote count increased so that losses in the north were made up leaving the percentage of vote for India for Modi's BJP party at 37 percent in 2024 instead of 38% in 2019, losing the absolute majority 240 seats of 543 yet having campaigned heavily for partners who added seats 294 of 543. In the UK Keir Starmer may see some vote preference for Labor erode yet the Conservative record is in shambles even conservative experts will say, as in India where the opposition parties offer no prospects for the future and little track record for making India the second or third largest economy in the world which the BJP has set and shown to have achieved over 10 years by taking India to No. 5 in the world economies. ...

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With the reduced demand for Fannie and Freddie mortgages with coupons under 5%, the Fed steps in and purchases $192 billion of 4% and 4.5% conforming mortgages on a gross basis by March 25, 2009. The move helps support falling house prices in the U.S. and reduces mortgage rates. It also helps banks improve profits. Estimates show the top 10 banks increased their holdings of securities issued by Fannie and Freddie and government agencies by $128.6 billion or 30% in 4th quarter 2008, which can be marked up in future quarters.

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Chinese exporters are required to bring their revenue in dollars after covering costs such as imported materials, back into China, exchanging it with the central bank for yuan. This foreign currency is the main source of the Chinese foreign exchange reserves of $2.6 trillion. The system was based on an earlier period when China worried about capital outflows. Now with rising inflation, and a lot of money circulating in the economy after the recent stimulus and huge lending surge, China is rethinking this practice. Hu Xiaolian, vice governor of the People's Bank of China, says it makes it harder to control liquidity levels in China in todays situation.Because of this China's government is easing controls and letting exporters keep more of their revenues earned overseas. However with the expected declining value of the dollar Chinese exporters may prefer to convert their dollars into yuan. Some companies may want to accumulate dollars and other overseas foreign currency for investments abroad. The difference with Japan is striking. For Japan, also a major exporter, the bulk of foreign currency assets are held by companies, which are available for use to invest in manufacturing and other assets. By concentrating these decisions in the state, China has accumulated a huge reserve of foreign exchange. But this also creates major problems as China is concerned about the impact of the declining dollar on its huge holdings of US treasury debt. ...

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The Spanish government said on May 23, 2012 that it will provide 9 billion euros to help Bankia cover capital provisions for bad loan losses. The government took control of Bankia in early May 2012. Bankia was formed by merging 7 troubled cajas savings banks. It has about 10% of Spain's loans and deposits. Bankia has the largest exposure of financial institutions in Spain to real estate loans. Of 37.52 billion euros in loans for real estate, about half or 17.85 billion euros are troubled loans. Spain's approach to the banking crisis from the real estate bubble was to merge failing banks with smaller amounts of government money as aid, and having the new entities raise cash through initial public offerings. For Bankia most of the nonperforming loans were separated and placed in BFA, the parent company. Bankia did an IPO in July 2011 raising 3 billion euros. Since the IPO Bankia has lost half the value in its share price for large losses to investors. Under new capital provisioning rules set by the government for banks to adequately cover nonperforming real estate loans, Bankia needs 7.1 billion euros. An additional 1.9 billion euros is needed for capital requirements for a total of 9 billion euros, which is the amount of the capital injection by the Spanish government. Finance minister Guindos told parliament that the rest of the Spanish banking system can withstand adverse scenarios....

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Joe Nocera of the NYT, says prosecution of individuals responsible in the 2008 mortgage financial crisis is mostly a joke. Not one official of Countrywide Financial, says Nocera, that was at the heart of the financial wrongdoing in the crisis has been prosecuted. This may be one of the strangest aspects of this crisis and the behaviour of the Obama administration, the Justice Department and the regulatory agencies including the SEC remains dubious at best, when it comes to how little can be seen in this area that Nocera points out. By contrast says Nocera, about 1100 prosecutions were done in the S&L crisis and Charles Keating, a key figure in the crisis was prosecuted. When he inquired why the government was so intent on prosecuting figures involved in the S&L crisis, Nocera was told it was because the country insisted that this happen. This is because without this the deterrent effect no longer has an effect in preventing future behaviour of this type. Now he points out this is what the country is insisting happen. Regulatory actions alone may not create enough of a deterrent to protect the ordinary people who were worst hit in the crisis from another crisis. The exacerbated social tensions emerging from the crisis have created a large fragile part of the population with minimal savings that can hardly afford future hits of this type....

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Eric Cantor, a House member from the Richmond area, who is the face behind the zero Republican votes in the House for the Stimulus Plan. He says Democrats should not take the message from this that they should not mess with the Republicans anymore in discussing the plans for the economy. Is this good policy though, when the bill has given some middle ground between tax cuts and spending, and the spending is on areas neglected for years such as roads and bridges, classrooms and energy infrastructure? And is there an element of lack of comprehension by Republicans stuck on ideological grounds, of the seriously deteriorating nature of this crisis which is likely not to come back with recovery in several years, and is a global crisis? When Prime Minister Thatcher, UK Prime Minister, left office, the British infrastructure rail, rapid transit, hospitals and schools, had been neglected for many years and voters were looking for ways to rebuild the dilapidated infrastructure. The economy was weakening under her Conservative party successor, giving the Labor Party its chance to make a come back on the grounds of rebuilding infrastructure and services, and improving the economy. In which case there are just as many risks in this approach of being left out entirely and losing credibility across the country. Sometimes a feel good position may not be the best, or the wisest option, and may be shortsighted. ...

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The latest Commerzbank estimates show Germany and Japan, both with large capital goods industry, showing declining GDP of about 7% in 2009. That is a steep decline stemming from the lower demand in industrializing countries like China, India and other countries. The German government has only committed so far 88 billion euros ($120 billion) or 3.5% of GDP. To get some idea what the German government is thinking look at the GDP numbers from the government, which show only a 2.25% decline. Compare this with other estimates closer to Commerzbank's estimate- BNP Paribas shows 5.4% contraction, Deutsche Bank 5%, German think tank DIW 4-5% drop. And the government estimate scheduled date for revision is April 29. This may explain the gap between what the Obama administration is saying to the Europeans: you need further stimulus, and what the Chancellor Merkel is saying: we will be just fine. The French government is saying saying the same thing the German government is saying. But France with a smaller export industry is expected to see a drop of less than 4%, the USA 4%, by Commerzbank estimates. Experts say as German elections approach in September, Merkel is going to have to respond with larger stimulus amid large job losses. And sentiment may be shifting in France as job losses mount, as evidenced by large turnout across France calling on the government to help in recent demonstrations....

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This article in the Economist following the state election in Berlin, says it shows Merkel and the CDU as still the only likely option to form a new coalition in the 2017 federal elections. Even though six parties emerged in the Berlin election- the left parties SPD and Die Linke, the Greens,CDU, AfD, FDP- the situation is so fragmented that the CDU still remains the leading party nationwide. The Economist points out that a Greens and left parties coalition as in Thuringia is not an option at the federal level, because most Germans are not in favor of a SPD, left party Die Linke, and Greens coalition at the national level. The opposition from the CSU inside the CDU-CSU parties to Merkel's refugee policy,  with Seehofer calling for a numerical limit to refugees, is it says presents the only real challenge to Merkel. Yet Merkel has already tackled that problem, as the new refugee numbers are dropping dramatically. and Merkel has already pointed out that the refugee crisis came when she and her government were caught unprepared. By taking the right steps to assuage voter sentiment as she has deftly done throughout her terms in office, staying close to what voters generally accept as the best way forward, a year from now Merkel and the CDU may as she says be seen as having taken actions that best reflect Germany's interests in the long term. ...

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There can be some comfort with the loss of the usual social contact during the period of lockdown and working from home. There are is the opportunity to slow down, pause and reflect in prayer or meditation. There is also time to spend in gardens or parks, a patio or balcony to be outside. As Adrian Higgins of the Washington Post- who has two books on gardening and covered it since the 1980's- points out here we are not apart from nature or above it, we are nature, and plants and birds outside are fellow beings of a sort. Most of us live in tight urban environments and this is a great opportunity to break away from all the noise and bustle and experience some time with nature and with ourselves. A time for renewal and listening to our inner voices, as the gods may be reminding us about living a better and slower life. Higgins reminds us that sometimes it is an experience that is alive in memory as there is a word for it in Japanese and in German, and in other languages. In Japan shinrin-yoku is about forest bathing, by finding a woodland or park and experiencing the stillness. Germans call it a forest walk or waldspaziergang. Plant gardens or parks will do, even landscaped areas in urban settings. The shades in a garden with sunlight falling in different ways on leaves and plants. We develop a capacity to notice things we stopped noticing as we grew up. Just walk or sit quietly and look. Plants and trees also take away some of the isolation and loneliness as they are fellow travelers of a sort. As anyone who has planted will know we can look forward to the new flowering, and the growth into next year, and the next. We have got too intertwined with the short term and the immediate fulfillment, and this draws us out of this in ways that enrich and nourish our lives.     ...

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The South China Morning Post provides this view of China on the day of the 70th anniversary of the Communist Party of China, on the long road from the founding of the government in 1949 under Mao, the Cultural Revolution, and the shift to a state sponsored market economy under premier Deng in the 1980's.  From being at early stages of industrialization to a fully developed modern and industrialized country over three decades.  The challenges China faces are whether its growth will slow with a high debt situation, trade war with the U.S., aging population and the housing bubble that has created problems in Hong Kong. This could lead to a situation where its per capita income stays in the middle range at around $12,000 per capita, referred to as a middle income economy by the World Bank. Some experts believe that the factors that propelled China since 1990- a youthful labor force, globalization reducing tariffs and benefitting from entry into WTO, easy access to western technology, land sales for local governments to finance industrial development, rapid urbanization, and infrastructure investment in electricity rail and highways, are now reaching their limits with smaller incremental steps and growth in the future. The big gains made in the last three decades could be limited by other factors also such as the high debt economy, build up of industrial overcapacity, limited domestic consumption to take the place of exports facing high tariffs. Countries normally face some slowdown in such situation after a period of rapid growth, Japan and South Korea being recent examples. During the transition period to a new kind of economy from the manufacturing export push Asian model many unseen social and other problems emerge. The situation in Hong Kong shows how the housing bubble can also lead to problems that require resources and attention.  There are other social problems that continue to remain hidden. It does not take long for hidden problems to emerge as the situation in Brazil for lack of sanitation and epidemic prevention shows. In China the cost of too rapid development has led to pollution of rivers and land that will need to be cleaned up. The effect of contamination of food supply is an ever present risk with the contamination of land and water. Little attention is paid to prevalence of smoking and its damaging effects on health. The one child policy also brings with it cultural issues of how a whole new generation of children without siblings. Many other social problems that affect the quality of life become evident as growth slows and addressing these problems can actually benefit the country and its people. ...

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Increasing regional tensions with a more assertive Japan and China. U.S. president Obama's so called "pivot to Asia," appears to have little impact. China has tended to look for its own security architecture in Asia that excludes the U.S. U.S. efforts to reduce tensions are being ignored by China in May-June 2014, as China asserts itself in waters that are in dispute with Vietnam. The lack of U.S. influence compares unfavorably with the situation that prevailed since 1900, when the U.S. had the most significant influence in Asian waters. It has more to do with a policy of withdrawal under the Obama administration than U.S. capabilities. The policy of withdrawal in the Middle East comes after much of the sacrifice had been made and the situation in Iraq changed, so that for a much smaller incremental effort the U.S. could have both lived up to its principles and ideals for democracy and freedom as well as win public opinion in the Arab countries of North Africa and the Middle East. This withdrawal in the Middle East has given Russia and China the wrong signal leading to more assertive stance in Europe and Asia, and creating uncertainty where little uncertainty existed about U.S. determination. Under whatever terms it is wrapped the policy of the Obama administration is one of withdrawal. It is dangerous because it will mean a more costly effort would be needed under a future administration to restore the situation which prevailed earlier- in which the U.S. has helped create a climate in which the entire region including China and Japan have prospered economically, without the region descending into a competition between Russia, China, Japan, South Korea and India. The Obama administration with its muddled policies has inadvertently created this situation....

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This editorial in the Economist magazine says the banks have paid large fines for wrongdoing but individual accountability has not been achieved. Only one individual conviction has been achieved related to market rigging in Britain. The penalties paid by banks between 2009 to 2014 worldwide add up to $245 billion, according to CCP, a research group. The problem says the editorial is that without individual accountability this is likely to be seen just as a cost of doing business. For the culture at banks to change individual acountability has to be established, and only now are banking regulators realizing that the public's disillusionment with the political parties in power during the last decade in Europe and the U.S. has its roots also in the way accountability has been tackled. Editorials in the WSJ and the NYT have addressed the same theme and expressed the same concern. The May 21, 2014 editorial on the U.S. Justice Department's legal settlement with Credit Suisse. "Holder convicts Switzerland," was critical of the Justice Department because this settlement did not bring accountability or justice. Columnists Eavis and Reilly in the WSJ, Protess and Greenberg in the NYT, were also critical of the settlement. Other legal settlements followed the same pattern throughout 2012-2015. Another aspect of this and a larger problem is that the same management has remained in place in some places. Shareholders expressed their feelings at the recent Deutsche Bank meeting in June 2015 when one shareholder association asked the question: "Mr. Jain are you the solution to the problem or part of it?" questioning how the same management that created the problems was going to fix the problems. A week later the two co-CEO's departure was announced and a new CEO appointed. BaFin, Germany's regulatory authority was described as not providing effective oversight on management at Deutsche Bank, by Eyk Henning in the WSJ March 28, 2014. It is too early to say if the public's frustration with the slow pace of establishing accountability and generating culture change is at long last registering with regulators and the political parties running the government. Prime minister Cameron and chancellor George Osborne's decision to put $1 billion into communities throughout Britain from the fines, described in the WSJ May 31, 2015, and an additional $227 million pounds from a legal settlement with Deutsche Bank in April 2015 for creating 50,000 apprenticeships, is the first sign of a conviction developing in political parties that instincts of fairness and the compact between the people and their government handed down over many, many years and generations, need to be respected. In the U.S. communities devastated by the recession and foreclosure crisis, especially inner cities, could benefit from Cameron and Osborne's exceptional idea. For the political parties and the political elites in Europe and the U.S. it is a way to restore some of the trust lost in the last decade. For banks a change of management, cultural change, will benefit the employees and shareholders, and improve relationships with customers, restoring trust over the next decade....

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For passengers air travel nowadays is travelling on planes that are often totally booked. This is because airlines are cutting flights. And with fewer passengers after the economic crisis hit, airlines are having a difficult time cutting flights enough to meet the continuing drop in the number of passengers. Before the crisis business and international travel was a good source of revenue, now this is fading as there is more competition on transatlantic routes with about 50 airlines offering flights between US cities and European cities. The liberalization of air travel between the two continents with the 2007 "open skies" agreement is keeping downward pressure on prices. The International Air Transport Association says the number of passengers travelling on business and first class tickets between N. America and Europe was down 18.4% in April 2009, compared with same month in 2008. Traffic between N. America and Asia was down 26%, for the same period. This is hitting Lufthansa ansd KLM-Air France hard, but is helping Easyjet, Ryanair, and Air Berlin. As demand drops airlines will continue to cut capacity, and this will be done by cutting the number of flights on a route and using smaller planes. After all this capacity cutting takes place by September, OAG Aviation estimates that the seats on domestic flights will drop to 66.5 million from a peak of 84 million in 2001, a drop of 21%. Some airlines which rely less on corporate travellers will not see as steep a drop. These airlines are Southwest, JetBlue and AirTran. Airlines that may not survive the effects of the economic crisis, with tight credit and drop in air travel, and volatile oil prices, are United Airlines and US Airways. United relied heavily on corporate and trans-Pacific fliers before the economic crisis. Fitrch Ratings cites this in reducing the credit rating for United to junk status, as well as the heavy debt maturities in 2009 and 2010. In June 2009 United raised $175 million by issuing new debt, but at an interest rate of 17%. At US Airways the combined airline with America West after a$1.5 billion merger is struggling. It has the thinnest cash position of any airline according to a Morningstar research analyst, and may need further borrowing to meet debt payments. With all assets already mortgaged US Airways may have little borrowing capability left....

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Toyota is expanding an original recall announced in late 2009 for 4.3 million cars by adding an additional 1.1 million cars. That recall involved pedals catching on floor mats. The original recall followed afatal car accident for a Lexus E350 sedan on a San Diego highway when it accelerated out of control killing all 4 occupants. For Akio Toyoda this comes as something he suspected could happen when he assumed the CEO position last June. He said then that Toyota had made amistake in the last decade with its push to become the world's largest carmaker under previous CEO's Okuda and Watanabe. See the links to this where his father Shoichiro Toyoda had serious concerns about how the company was run and a sense of foreboding about problems still to come. Shoichiro's sense was that the company was becoming too complacent and expanding too quickly. This was also the reason he worked behind the scenes to get Akio into the CEO position as someone who could take Toyota back to its original spirit. This may make swallowing the problems -and the apology which has taken so long for Akio- more difficult, as he had a sense all along that things weren't running the way they should. Under Okuda and Watanabe the quality problems were already becoming evident. Okuda became CEO in 1995 and chairman in 1999. Between 2000 and 2007 Toyota sales expanded from 1.6 millon to 2.6 million in the USA and it expanded with new manufacturing facilities in the USA- a full size pickup plant in San Antonio in 2005, a RAV4 sport utility plant in Ontario in 2008 and another plant in Mississippi. With the rapid expansion came quality problems and in 2005 Toyota recalled 2.38 millon vehicles, more than it sold that year. Watanabe who was president in 2006 delayed introductions of models for 6 months to give engineers more time to work on improvments in design. A two month internal review showed at the time that the product development process was'nt working the way it should- it showed that engineers were not conducting the rigorous quality checks that were an established practice at Toyota and sending out products relying on computer simulations. Toyota engineers from that period say the current problems may have some connection to problems that may have not been completely addressed from that period....

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The dollars situation may not be as bad as it looks. There are signs that the dollar is strengthening against the British pound and the Australian dollar and other important currencies. And the weaker dollar is already working to reduce imbalances in America's trade deficit. There are two aspects of the dollar's role, one is as a means of international exchange and the other as a store of value. For the first reserves of any country need to be highly convertible and America offers highly liquid markets and this has not changed. As a store of value the dollar has lost some of it value especially against the euro. But the reason that the dollar should not see a sudden drop in value is because the largest holders of dollar reserves China with $1.4 trillion and Japan with $1 trillion would stand to lose by shifting out of dollars significantly at atime when the dollar was so undervalued besides hurting their export markets if it affected the US economy. And though the euro looks good in the short term, over the longer term Europe's aging societies may see lower growth and the future may look different once the USA has corrected some of it imbalances which is precisely what the weaker dollar accomplishes as the US exports start humming. Seen against the historical background the USA has periodically gone through this situation with dollar weakness in 1977-79, 1985-88, 1993-95. In 1985 the dollar went to 81 Japanese yen and there was concern about its reserve currency status at the time. However the dollar has weathered these storms. And there is always the option for a country to peg its currency not to one currency alone but to a combination of the dollar and the euro. This was the case before 1914 when 3 currencies the British Pound, the French Franc and the German Mark were used. In the post 1918 environment the dollar replaced the German mark alongside the Pound and the Franc. The Persian Gulf countries have this option so they can use their own monetary policy to control inflation by pegging not just to the dollar but to a basket of currencies as Kuwait has done. See the link to the Persian Gulf countries handling of this currency issue in WSJ, November 20th and Nov 1, 2007....

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By influential business leaders from Brazil, India, Sweden, the US, France and Japan. A strong case for completing the Doha Round even if this takes difficult and decisive choices. The concern is about preserving and building on all the gains in free trade made in earlier Rounds. Not one of the earlier Rounds failed so this would be a first. Differences in areas like agriculture which are politically sensitive in countries like France and Brazil stand in the way. See the article by Scott Miller, French Resistance to Trade Accord has Cultural Roots, in the Wall Street Journal, May 16, 2006.

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See the related article in WSJ May 26, 2006 by Norihiko Shirouzu- In Chinese Market Toyota's Strategy is Made in USA. That article described the efforts of Northwestern Kellogg School graduate Yoshimi Inaba's efforts since June 2005 to effect a turnaround for Toyota in China. Toyota lags badly behind GM in China. Here Bremner puts together research findings of a collaborative effort between Business Week China and JD Power to develop a picture of what drives the Chinese buyer in the fastest growing auto market in the world. McGraw Hill owns JD Power and Business Week.

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To gauge economic progress and improvement in living standards, instead of GNP alone look at number of indicators. Look at healthcare and education, cleaner skies and cleaner air, water and land. This is what areport commissioned by President Sarkozy of France, done by Siglitz and Amartya Sen, esentially emphasizes. And be careful when you see more cars and gasoline and more driving drive up GDP numbers and growth because this may actually work in the wrong direction, and have unusual negative effects as the SUV buildup and later collapse led to destroying companies and jobs in Michigan and the midwestern USA.

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Inflation in India is at 9.1% in May 2011, compared to the prior year. GDP growth for the first quarter of 2011 slowed to 7.8%, from an annual rate of 8.3% in the fourth quarter of 2010. Other figures show the same trend. Local investment growth for the second half of the fiscal year ending March 31, 2011 was at 4.1%, a decline from 14.7% at the beginning of the year. Foreign investment in the first quarter 2011 declined 32% from the prior year, down to $3.4 billon. Car sales have also declined to the lowest rate in two years.

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Fitch Ratings reports that 10 of the largest U.S. money market funds have combined assets of $755 billion, and as of May 2011, half of these assets are in instruments issued by European banks. These assets have been held for 5 years. In the event of a crisis it is feared that the funds will withdraw from the European market. Money market fund holdings for the ten largest funds show that no European bank has more than 7% of its short term funding from these money market funds, according to Fitch. A combined withdrawal would affect global credit markets.

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Seib points to the intangible assets Ryan brings to to the Romney presidential campaign, which fill in for areas in which Romney is weak. The working man touch to connect with working class voters, avid sportsman to connect with younger voters, a practising Catholic to reach out to Catholic voters given Romney's Mormon background, the energizing effect for conservative voters having someone who has fought hard for the conservative cause. Also important will be Ryan's friendly manner, down to earth talk, and ability to talk to voters of all opinions, to reach out to independent voters.

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The Indian government's restrictions on single brand retail store ownership by foreign companies has long been an impediment for companies like IKEA. The decision by the Indian government in 2012 to allow 100% ownership removes this impediment. However other restrictions are seen as onerous- one requirement is for 30% of sourcing to be done in India. IKEA management points out that the sourcing from small and midsize enterprises may be difficult. By contrast IKEA has increased local sourcing in China from 30 to 65% just to meet price competition fom local competitors, according to Jen Hansegard, head of the China operations.