LyrArc Article Gist
The new government of prime minister Enrico Letta in Italy suspended the summer instalment of the tax on primary residences which was unpopular in Italy. The new government plans to overhaul the tax code this summer to change the way it impacts real estate. This was one of the tax measures taken by the Monti administration. 1 billion euros will go to a wage supplement program, so that companies can retain employees during the economic downturn. Another program to provide business incentives for hiring is being considered. The new government committed itself to bring down the deficit in Italy to under 3% in 2013, which would help keep Italian borrowing costs down.

LyrArc Article Gist
Mitsui, Mitsubishi, and GDF Suez each take a 16.6% interest in a liquefied natural gas (LNG) gas export plant being built in Hackberry, Louisiana. The investment by these companies totals $7 billion. The project is being built by Sempra Energy, based in San Diego. The project forecast to produce 12 million metric tons of LNG annually for 20 years awaits approval from the U.S. Energy Department. Low prices for natural gas in the U.S. -with the abundant shale gas supplies- of about $4 per millon BTU's compared to $10 in Europe and $15 in Asia are creating opportunities for investment. After the Fukushima nuclear disaster Japan has increased its imports of LNG to the point where it takes in about one third of the world's LNG market supples, according to Bernstein Research. Other companies which are active investors are Kogas of Korea, Sumitomo and BG Group of Britain.

LyrArc Article Gist
Hashem Rafsanjani's increasing popularity as he runs for president in the 2013 elections in Iran. This reflects the high discontent of the urban middle class and the lack of alternatives in Iran. He owns Iran's second largest airline and has large business interests. At the same time he has close links to the religious leaders running the country. Economic sanctions have hurt the Iranian economy and the negotiations on nuclear development with the international community have reached an impasse, creating an opening for someone seen as a pragmatic leader who can also help businesses recover.

LyrArc Article Gist
The issues raised by the storage of residue from Canadian oil sands production processed into coke at midwestern oil refineries. The Marathon refinery in Detroit processes this residue for export companies such as Oxbow owned by the Koch Brothers, which then export this to China, India, Mexico and other S. American countries. A huge open pile of this dirty coke is seen along the Detroit river in May 2013. Residents in Detroit and Windsor ask if Detroit is considered a dumping ground?

LyrArc Article Gist
The Economst cites an IMF June 2012 paper by Arcand, Berkes and Panizza that shows private borrowing and size of bank balance sheets once it reaches 100% of GDP begins to slow growth. A second paper by Cecchei and Enisse Kharroubi at the Bank for International Settlements confirms this showing that at low levels private borrowing and expansion of bank balance sheets increases economc growth, but at high levels exceeding 100% of GDP a large financial system actually hurts economic growth. Andy Haldane of the Bank of England points out the fact that for the century to 1970 bank assets increased by an average of 0.6% a year faster than GDP in 14 large economies, but increased much faster after this with ratio of assets to GDP increasing by about 3 percentage points a year. Bank assets increased from 50% of GDP in the 1960's to about 200% of GDP by 2007, reaching 500% of GDP in Britain, 800% of GDP in Switzerland, and 126% in the U.S. The increase in world trade accentuated this period with trade increasing from 22% of global GDP to 33% in the period 1996-2008, and banking following this trend across borders to developing countries. At the same time excesses caused an imbalance with hyper growth in bank balance sheets through taking on more leverage and banking risks. The Economist sees this process going back in reverse as bank balance sheets shrink in the face of regulation and efforts for financial stability following the 2008 global financial crisis....