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How Chrysler hopes to tap into the fast growing markets in China and Russia with itss smaller resources than GM or Ford or Toyota. One way is through licensing arrangements where Chrysler outsources the production and builds cars in joint ventures arrangements. This week a Chrysler minivan will begin production in this manner in China.

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US Navy is in trouble from slow shipbuilding and industry sent overseas like other industries. Note this about the USS Constellation being built in Wisconsin in 2025- After 2.5 years only 10 percent complete. Time to build of 9 years. An Italian shipyard does this in 4.5 years. Of 20 frigates being built in 10 countries of this type 19 are being built faster. Budgeted at $1.3 billion already cost overruns of $600 million cost tag now $1.9 billion. No wonder says the WSJ, no one in the world wants to build ships here. China now makes 50% of the world's ships, before that Japan and South Korea made 50% of the ships in the 1980's and before that the US in the 1950's. One of DJT's mandates- rebuild the American Navy. This means bringing shipbuilding like other industries back to the US where it belongs. Without the US Navy in good shape there is no defense. “Every shipbuilding delay, every maintenance backlog and every inefficiency is an opening for our adversaries to challenge our [naval] dominance." -John Phelan, DJT's nominee for Secretary of the Navy, to the Senate Armed Services Committee in Feb. 2025.   ...

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This editorial in the New York Times points out that the new president of the ANC party -that runs South Africa and has a monopoly of power in the post Apartheid years, under Mandela, Mbeki and Zuma- faces a uphill task as the ANC remains deeply divided after supporting Mr. Zuma in office till the very end. Apart from the stagnant economy, there are challenges the ANC faces in the lethargy of the post Apartheid years, and the culture of corruption, and patronage management that led to mismanagement of state enterprises.

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Why rebalancing the world economy will not be easy. Rebalancing depends on the success of American companies selling goods in China and Germany. China and Germany report large gains in exports through August 2010. The US trade deficit in 2010 is up 40% from 2009. One reason is that it involves changing behaviour of consumers. Another reason is each percentage point reduction in the annual savings rate in Germany and China would increase consumer spending by $42 billion. By comparison each percentage point increase in the annual savings rate for the US reduces spending by $100 billion, according to estimates by McKinsey Global Institute.

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Following Brexit on January 31, 2020, Britain's government led by Boris Johnson prepares to negotiate new trade deals with the U.S. and other countries. The freedom to negotiate these trade deals was a key part of the plan of Brexit supporters and Mr. Johnson. The Times, Britain's leading newspaper, looks at the prospects of trade deals with each country- the U.S., Australia, New Zealand, Japan. Facing re-election Mr. Trump is seen as favorably inclined to work out a trade deal that he can show during the campaign. Trade discussions have taken place between the UK and Australia, Japan. Mr. Morrison in Australia and Mr. Shinzo Abe want to see strong trading ties and investment with Britain. Japan or Australia could be the first countries that work out a trade deal with Britain as discussions are at an advanced stage.  Britain has a small deficit with Japan in trade. It has a small dollar surplus in trade with the Australia and New Zealand. With the U.S Britain has a large surplus, it exports 121 billion pounds and imports 76 billion pounds. The prospects of trade deals are enhanced by the similarity in outlook of the governments of the U.S., Australia, and Japan, which share views on jobs expansion, economic growth and are centre right in economic philosophy. They also share a strong connection with working class voters under Johnson,Trump and Morrison. Mr. Trump is seen as a strong deal maker so that any deal would involve some concessions from Britain that increase U.S exports, including farm exports. Difficult issues with the U.S. are -pharmaceutical drug imports that could increase Britain's NHS cost for drugs, the digital services tax from Britain on U.S.  companies such as Google and the Trump retaliatory threat to impose tariffs beyond the current 2.5% on car imports of $11 billion from Britain. On agricultural imports Britain's natural foods preference conflicts with imports of genetically modified (GMO) foods from the U.S. Experts say this could lead to a partial or Phase 1 deal that does not need approval from the U.S. Congress, similar to the Phase 1 trade deal with China which sidestepped the thorny issues on trade. This is something both sides can show their support base as a win. ...

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Differences between Mr. Suzuki, CEO of Seven and i Holdings, the parent company of 7-Eleven and investor Daniel Loeb of Third Point LLC, on the right strategy for the company. Loeb favors focussing on the 58,000 7-Eleven convenience stores in N. America, China and Japan. Suzuki had expanded by making acquisitions and kept a money losing Ito Yokado retail chain in Japan. Following a boardroom fight Loeb wins and Suzuki who ran the company since 1992 resigns. Ito Yokado ran the Japanese 7-Eleven chain till it acquired the U.S. 7-Eleven in 1991. A new corporate governance code setup by the administration of prime minister Shinzo Abe, calls for more outside directors to be appointed to Boards, and greater attention to interests of shareholders. This is seen as a test of the new corporate governance rules. Akira Kiyota, CEO of the company running the Tokyo Stock exchange sees it as a positive step.

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Tesla Motors delivers 10,350 vehicles in the 1st quarter 2015. This is a 55% increase over the same quarter in 2014. The target set by CEO Elon Musk of Tesla Motors is for deliveries of 55,000 in 2015, and reaching 500,000 by 2020. The new model Tesla Model X sport utility vehicle comes out in the second half of 2015. Tesla's expenses are going up rapidly with the higher sales, especially for a global supercharger network in North America, Europe and Asia, to meet new buyer concerns about the infrastructure. Capital expenditures budget for 2015 is $1.5 billion. Future expenditures include a $4-5 billion plant to make electric batteries. Tesla says it will not be profitable till 2020. Tesla is using attractive lease deals to overcome buyer resistance at a time of low gas prices. It is cutting back on plans for China. Tesla share price on April 2, 2015 was $191. This gives it a dizzy $24 billion capitalization, about half of the capitalization of GM at $58.8 billion in stock market capitalization, and Ford Motor at $63.4 billion. ...

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UBM TechInsights estimates show a 51% profit margin on the new iPad released in March 2012, compared to 56% for the iPad 2 released in 2011. UBM's estimates show Apple's cost for components on the new iPad released in March 2012 with LTE capabilities at about $310, for a model that will sell for $629.

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Decline in capital investment in 2016-2017 expected at Lukoil and Rosneft as the Russian government postponed a reduction in taxes on oil exports for 2016. Russia is dependent on oil exports for a third of its national output, and about half of its budget depends on oil revenues, a major weakness, but this is being managed carefully till oil prices recover. Russian officials say the $50 a barrel assumption for oil revenues in 2016 in the budget is optimistic. Yet Russian output decline is expected to be limited to about 3% a year from 5% for Lukoil in future years from decline in investment, because of drilling new wells and use of horizontal drilling technology on older fields. In 2015 oil output increased modestly to 10.73 barrels a day from 10.58 barrels a day in 2014. Russia's oil industry benefits from a tax system that favors the industry. The export duty on oil and the mineral extraction tax are based on price. A declining ruble which has gone from 35 to the dollar before its invasion of Ukraine in 2014 to 86 to the dollar in Jan 2016, has a favorable impact. This actually helps the industry because workers and oil equipment suppliers in Russia are paid in rubles, and oil revenues are earned in dollars. As a result new technologies such as horizontal drilling now make up one third of oil supplies from 11% in 2010. Chinese suppliers also provide new technology drilling equipment, as China is not part of the sanctions. Gazprom Neft's CEO Dyukov says it can make a profit at oil price of $15 a barrel. Because of the tax system after tax revenues are stable at the oil companies in Russia, even as government tax revenue declines. All this points to resilience in the short run for the Russian oil industry. The decline in the value of the ruble is seen as an opportunity to shift away from an overdependence on imports during the period of high oil prices. Alexei Kudrin, former Russsian finance minister, sees growth returning for the Russian economy in 2017. This may actually be good news for the struggling economies of U.S., Europe, India, China, and other countries which would be boosted by low oil prices sustained over a longer period- something made possible by competition between big oil producing countries Russia, Saudi Arabia, Iraq and Iran, and the profitability of oil production at prices below $30 to $20 a barrel....

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The Obama administration's budget for 2016 includes $19 billion for cybersecurity, a 35% increase.

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Sales in China were larger than sales in the U.S. for BMW in the first quarter of 2012.

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The change means sensitive technologies could no longer be accessed through Hong Kong says the WSJ. From China's perspective the $1.14 trillion held in Chinese banks in Hong Kong dollars is only about 3% of China's total $40 trillion in bank assets, and the effect on Chinese banks would take some time.

In fact the unequal trading relationship which left the American manufacturing base so widely exposed and sent outside the country has taken place for decades till this pandemic  showed its basic weakness, so much so that both sides may have a sense that this was about to end at some time anyway.