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Russia's decision to make Crimea an autonomous region inside Russia. This follows a referendum in which Crimeans voted to join Russia. Russian president Putin says Russia has no further interest in the rest of Ukraine.

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Hardy and Merced take an inside look at what happened at Autonomy Inc that resulted in the charge of $8.8 billion by H-P in Nov. 2012. The problems start with the hiring of Lee Apotheker, a former CEO of German software maker SAP, as H-P's new CEO in the beginning of 2011. This comes after CEO Mark Hurd is fired over relations with a female employee. Apotheker starts out within months of joining H-P with some precipitious moves that raise questions about his decisions- he dumps the new H-P tablet within weeks of joining, and follows this with a move to shift H-P out of its PC business and focus on software. To do this he pays ten times revenue for Autonomy Inc., a British software maker which has grown through acquisitions and not invested enough in advancements for its software, according to a piece by Al Lewis in the WSJ in August 2011. Autonomy's business is software that analyzes and finds patterns in voluminious data like e-mails, online data, web surfing. The tech community and analysts sees this as a risky investment from the start with Apotheker overpaying for Autonomy. Apotheker has failed to look at H-P's record in acquisitions with the failed Palm acquisition costing H-P over a billion dollars. H-P has a poor record of integrating companies. This proves to be especially true with Autonomy with founder Mike Lynch keeping a distance from Palo Alto headquarters by staying mostly in his London office. Apotheker is fired by the H-P Board within months of taking office and the Autonomy managers including Lynch leave H-P in the following months. Alarmed by a falloff in Autonomy sales, H-P's new CEO Meg Whitman sent a team in May 2012 to review the books of Autonomy. This results in finding "serious accounting improprieties." The problems are caught when a senior finance official at the London Autonomy offices points them out. What Autonomy did before selling out to H-P is to sell low end hardware servers at a loss, and disguise the loss by inflating marketing expense, resulting in marketing expenses going up just as it was trying to sell the company as a pure software company. Middle men who sold the Autonomy software reported sales that were made up and licensing revenue was taken before it was received. Analysts at Forrester Research say Autonomy had not invested in R&D, and did not make regular software releases, had poor customer relations, no regular customer feedback, and lacked transparency on future product plans. The question goes back to how did Apotheker make such decisions without giving enough time, with the due diligence reported to the head of strategy Robison and not the CFO as is normal, and how did he fail to catch the obvious failure to invest in the company R&D? Apotheker described his approach in a February 18, 2011 interview with the WSJ's Ben Worthen. He told Worthen a joke about the Swedish parliament where members discuss a proposal to move driving from the left to driving on the right, by doing this gradually. Apotheker's analogy turns out to be misplaced, his approach brash and dangerous, and the H-P's Board's confidence in their new hire misplaced. It turns out that H-P's previous CEO Mark Hurd came in for criticism for not investing enough in R&D. The money wasted in these acquisitions leaves H-P at a severe disadvantage for increasing investments in R&D when margins and sales are declining in the printer and PC business. On Nov. 20, 2012, H-P share price dropped 12% to under $12. H-P reported a $6.9 billion loss in third quarter 2012. Revenue for the full fiscal year declined 5% to $120.4 billon, and earnings declined 23% to $8 billion. ...

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Antonis Samaras visits Bavaria and meets with Christian Social Union leader Horst Seehofer, who offers his support to Greece's recovery efforts and plans a return visit to Greece. After the meeting, Seehofer said "today, we've turned over a new leaf," and Samaras said "I've received a lot of appreciation for our efforts."

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Ms Aydintasbas of the Turkish daily Milliyet on the lack of support from the Obama administration for the government of prime minister Erdogan in Turkey to bring down the Assad regime in Syria. She points out that the movement for democracy in Syria as part of the democracy movement in the Middle East is only a normalization of history. She sees democracy finding its normal place in the hearts and minds of Muslims everywhere.

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Close to half of the respondents in the 2010 Annual Survey of the American Chamber of Commerce in Shanghai, say that they face regulators who show a preference for domestic companies. About 80% of respondents said their operations were profitable in 2010. In 1999, 58% of Shanghai members of the chamber said their profit margins were below worldwide levels. In 2010, 78% said their profit margins matched world levels. Just under half of the respondents said they feared a negative impact from China's effort to build "indigenous innovation" and encourage domestic champions in each industry. 63.1% of respondents say regulations are getting worse or staying the same. Chinese President Hu on a state visit to the US in January 2011 is presenting the idea of a level playing field for American companies.

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Marc Lynch of the George Washington University Institute for Middle East Studies, says the U.S. should close its embassy in Cairo, and sever ties with the military government in Egypt. The policies of the Obama administration showing ambivalence towards the movement for democracy in the region has hurt U.S. credibility even as the U.S. media and people have supported the positive developments away from military run governments. The damage done will take a long time to repair.

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The U.S. National Security Agency is going through four separate reviews- one by a White House internal review team, by the Review Group for Intelligence and Communications Technology setup by president Obama in August 2013, by the Privacy and Civil Liberties Oversight Board setup in 2004, and by the Senate Intelligence Committee. Sources say the head of the agency Gen. Alexander offered to resign but this was not accepted because it would be seen as a win for Snowden. Proposals being considered are having a civilian head the agency, setting up a process where a determination is made balancing the potential value of the information with any political implications. Decisionmakers at the NSA are trained to be apolitical in collecting intelligence making it difficult for them to make such determinations. The recording of conversations on Merkel's mobile phone was made at the request of the State Department. Mr Ledgett, a senior NSA official says there are 36,000 pages of "requirements" or intelligence requests from all parts of the U.S. government, including State, Defense, and Commerce. What to do with such requests and how to assess them will now be important questions for NSA. One of the risks of the NSA revelations is that individual countries will impose restrictions on the internet to protect information leading to a fragmentation of the Worldwide Web. U.S. relations with Iran have remained stuck in the original atmosphere of the period under U.S. president Carter in the late seventies with the Islamic revolution with the most recent president Ahmadinejad being one of the activists from that period, the isolation and sanctions have also created a siege mentality in the Islamic republic. The U.S. and the world has changed since that period after over three decades. The Obama administration sees an opportunity to gradually resolve the Iranian nuclear crisis by relaxing tensions and giving small wins to moderates in Iran like Mr Rouhani. Rouhani may see a way out for Iran's isolation and falling behind other countries in the region in developing its oil resources and economy. The moves also helps to reduce new sectarian tensions in the Middle East as the different countries take sides in the Syria....

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Galston of the Brookings Institution says globalization has hurt workers in manufacturing with job losses and declining incomes. It has produced outcomes that have favored some industries such as tech, and not others such as automobiles which in the past helped create the broad middle class by offering good paying jobs to people with less than a college education. Immigration has created an issue that political leaders outside of the main parties have appealed to in France, the U.S. and Britain. The result is a polarization in the voters that has rarely been seen to this extent before. The middle class in the period from the 1950's to the 1980's is not the middle class that we see today in Europe and the U.S. The 2008 financial crisis added to the problems with the slow and uncertain recovery for some groups such as white men, the less educated, students, and people on minimum wage. 

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Samuelson says the bill in the U.S. Senate is symbolic because it allows companies to cite the undervalued renminbi as an illegal subsidy and have the Commerce Department impose duties on Chinese products. This would have to be done on a case by case basis, making it largely ineffective in dealing with the large trade deficit with China. He also cites the differences among economists that show a range between 1 million and 2.8 million jobs lost. The 2.8 million jobs estimate is from the Economic Policy Institute for the period 2001-2010. The 1 million is an estimate for 1990-2007, which estimates a loss of quarter of all manufacturing jobs. By WTO rules subsidies that are not targeted at specific industries or firms are allowed, according to lawyers. Which means China could appeal to the WTO, and impose retaliatory duties. In the meantime the trade deficit with China, with imports of $364 billion in 2010, and $86 billion in exports, would remain largely unaffected. This is the reason some Senators, including Republican Orrin Hatch (Utah), see this move as political posturing by President Obama and the Democrats, because the administration has no new proposals to address the trade deficit and the gradual erosion of America's manufacturing base. Samuelson cites Arvind Subramanium of the Peterson Institute, and his book "Eclipse: Living in the Shadow of China's Economic Dominance." Subramanium says what is at stake is not a temporary imbalance in world trade a happened with Japan in the 1980's, but a gradual shift to a system of trade in which China has preferential access to raw materials (oil, grain, minerals), subsidizes exports in new industries as it moves upscale from shoes and textiles to automobiles, aircraft and alternative energy, and changes the very nature of the global trading system as it becomes the dominant trading nation in the world. By Subramanium's estimate China's share of global trade increased from 1.6% to 9.8% in the 2 decades from 1990 to 2010. In two more decades he estimates China could increase this to 15% of global trade, significantly larger than the U.S. In a response to Congressmen, businessmen and policymakers wary of starting a trade war, Samuelson says there already is a trade war as a "fixed" system of trade undermines America's manufacturing and industrial base. The only difference being that today only one side is fighting that war, and America is slow to grasp the implications or its policymakers are clueless how to respond....

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A professor at Georgetown University on why it takes time to build democratic institutions, with one important omission- the military in Muslim countries such as Egypt have no intention of building these institutions and have undermined the development of these institutions for decades. A bigger omission lies in inability of the military in the most populous Muslim countries with horrendous gaps in development in basic welfare indices such as education, infrastructure and services, that have put these countries decades behind developing Asia and even Latin America which also had a past of military rule. In countries such as Pakistan and Egypt the military simply lacked the skillset and abilities to deliver in economic terms. Therein lies the biggest failure. In China and Russia the governments have popular support because of their capability to deliver economic growth that has transformed both countries and improved the lives of the people in the region. These crucial omissions explain why Republicans such as Senator John McCain and Lindsey see the need for the U.S. to be on the right side for change. Latin America shook off its history of military rule or one party rule and Brazil, Chile, Mexico are part of two free trade regions in Latin America, supporting the free trade system and economic growth in this hemisphere. The issue ultimately rests with the people of Pakistan, Egypt, and other Muslim countries, and a process of learning, compromise, healing and reconciliation that ocurred in Latin America is likely to follow in the Muslim world. It has already begun in Pakistan which like India has a independent judiciary and lively press, and some of the institutions for a functioning demcoracy. The worst omission is unmentionable because it is so obvious - that of firing live ammunition into protesters for democracy. Years after this happened in S. Korea, Mexico and other countries the day is remembered in a certain way. The important point is that when it comes to this there is no exception to the pattern. ...

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Former prime minister Nawaz Sharif's PML-N party wins 125 of 269 seats in Pakistan's parliament. The Tehreek-e-Insaf party of Imran Khan won 31 seats and the PML-N party of the current president Asif Zardari won 32 seats mostly in Sindh province. Independents won 31 seats and some of these independents are likely to support Sharif in forming a new government. Election turnout of 60% showed a large degree of enthusiasm in this election and hopes for economic revival in Pakistan. The focus of Sharif will be on improving the economy, tackling electricity shortages, and building infrastructure. Sharif promised to pursue peaceful relations with India and Afghanistan, and keep the focus on the economy. Sharif and his advisers are bringing a new deftness in the dealings with the Army, the Pakistan Taliban, saying he would call for a halting of drone strikes, limiting the role the U.S. plays in the region, both positions popular in Pakistan, separating differences with former president Musharraf from the institutional role of the military. Small business owners and large business support Sharif's efforts to tackle electricity shortages, with an estimated loss of $12 billion in idled factories alone. The long period of political conflicts between the military, the judiciary and the political parties have led to neglect of Pakistan's economy, as neighboring countries in Asia surged ahead. The realization that popular pressure for improving standards of living and the economic opportunities are both huge has led to an extraordinary election, and put Sharif at the centre of an important new beginning for Pakistan. ...

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Giridharadas cites artists, students, television commentators, and others in Istanbul as he looks at the change in Turkey under prime minister Erdogan. There are he says two Turkeys one secular setup by Kemal Ataturk to modernize Turkey, and the other fostered by Erdogan that looks to its Muslim roots, and the two are simply drifting away from each other. There is too little conversation between the two. In the middle are Turks who see the change as a necessary adjustment to accept the country's roots in Anatolia and the surrounding countryside, and see it possible for Turks to be secular in their public lives and world outlook and preserve Muslim traditons in their private lives. Turkey's economy is also changing with increasing trade relations with other Middle East countries including Iran, Iraq and Egypt balancing its ties with the European Union countries.

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U.S. president Obama reinforces German chancellor Merkel's call for "a persistent presence in the Baltics," with a visit to Tallinin, Estonia, in September 2014. Obama told people in Latvia, Lithuania, and Estonia that he would work with the U.S. Congress to place more U.S. equipment in the Baltics and increase U.S. troop presence there. He stated the Baltics are "not post-Soviet" territory. Obama said at a concert hall in Tallinin about Russian support to separatists in eastern Ukraine- "It challenges the most basic principles of our international system- that borders cannot be redrawn at the barrel of a gun, that nations have the right to determine their own future. It undermines an international order where the rights of peoples and nations are upheld and cannot simply be taken away by brute force."

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Mitt Romney on the weaknesses of America's position in the Middle East in policies for Syria, Libya, Egypt and the rest of the Arab world. The problems with Iran and the lack of results in bringing an end to Iran's nuclear program.