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The inflation rate of 8% in India limits the new Modi government's ability to increase the growth rate without creating price pressures. The current account deficit was brought down to 1.7% in the last fiscal year from 4.7% for the prior year, by curbing imports of gold and reducing imports of manufactured goods. It is being financed by uncertain portfolio inflows in the second quarter for 2014.

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Citic Pacific to acquire Citic Group. The new company listed in Hong Kong to be called Citic Ltd. The listing in Hong Kong means stringent reporting and disclosure requirements. This is an effort to bring reforms to state owned enterprises in China. Premier Deng started China's first market economy measures with Citic founder Reng's participation and initiative to attract foreign investment.

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The MQM of Altaf Hussain, represents the ethnic Mohajirs who are a large part of the population in Karachi and Hyderabad, Pakistan. Through street gangs in Mohajir neighborhoods and party politics MQM dominates political life in Karachi, with most of the parliamentary seats.

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A very relevant comment about the media coverage on Putin's negotiations in Beijing for supplying natural gas to China, by a reader of the WSJ, Frank Peel. He points out China and Russia do not share the same goals and Putin talked about the Chinese as tough negotiators after signing the deal. The price as a "commercial secret" is because its years, could be 5, before gas actually flows to China from Siberian fields. Russia, is a smaller oil based economy- having failed to make the transition to a diversified economy- and very susceptible to the economic conditions in Europe and the U.S., as the 2008 crisis showed with very steep drops in output. President Obama has also pointed to this. Russia also shares with Argentina the tendency for elites- in the case of Russia a newly created oligarchy of business interests under Putin and his predecessor- to shift capital out of the country, making it even more susceptible to loss of value of the currency, the ruble. Devaluation of the ruble experienced under Yeltsin was severely traumatic for Russia, and the head of Russia's central bank went on state television recently to reassure ordinary Russians that this would not happen. The rainy day sovereign fund of over $400 billion acts as a cushion for shocks in short periods, but sustained loss of foreign investment would damage prospects for future improvements in standards of living or economic growth....

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Spain's new monarch, Felipe, brings a background of being carefully trained for the new position say most people in Spain from experts to taxi drivers, and brings educational training to understand the complex economic and constitutional issues facing modern Spain. He studied law at the Autonomous University of Madrid, and did his graduate education at Georgetown University in international relations. One columnist and constitutional scholar, Carreras Serra, says the prince has helped bring focus in meetings with government officials, and can skillfully conduct discussions on difficult topics of economics or constitutional law. His abilities are sorely needed as Spain navigates through a period of economic hardship with high unemployment, especially among the young. Relating to young people will be key test for Felipe and the monarchy. He starts off with considerable goodwill as 61% of Spaniards polled have a favorable opinion of him. Two leftist parties in Spain which view the monarchy as unnecessary for Spain won 18% of the vote in European parliamentary elections in May 2014, with the two main parties of post war Spain, the Partido Popular and the Socialist party, polling below 50% (a similiar situation in UK and France), provided a signal for Juan Carlos's abdication at 76. Spain's modernization was made possible by putting behind divisions from the traumatic twentieth century conflicts, and continued economic progress will require the same degree of skill and renewed committment from all parts of the political spectrum in Spain. Because of liberal tendencies existing in a conservative culture and history, Spain's best years and progress depend on keeping the social and political fabric together without divisions, and the monarchy earning and reearning its trust -side by side with the main political parties and young people seeking a better future- to keep it this way through coming generations....

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A difficult period for the monarchy in Spain after a number of scandals affected the reputation of King Juan Carlos. His son has a graduate degree in international relations from Georgetown University. He has distanced himself from the scandals, brings a youthful look at 46, aand was groomed by his parents for the job. Though Juan Carlos has seen his repuation tarnished in recent years, especially with the continuing economic hardships of high unemployment in Spain, he played a large part in Spain's transition to democracy after the Franco years. Even with such difficulties just over half of Spaniards respect the monarchy down from much higher numbers before the economic crisis, when Juan Carlos was seen as a modernizer for Spain. Because of Spain's history of Republicanism at odds with a conservative culture and the Franco years of division accompanied by great distress, the monarchy's role requires a special touch- a feeling for the needs of the people which Carlos showed in the early years, and for which Felipe was trained....

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The U.S. Institute of Supply Management ISM Index shows May 2014 at 55.4 compared to 54.9 in April, an improvement for the fourth consecutive month in manufacturing activity.