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Independent oil companies are eager to invest in Venezuela says Treasury Secretary Bessent at the Economic Club of Minnesota. He says phone are ringing non stop from these companies. Big Oil such as Exxon is taking longer. Chevron is already in Venezuela and Bessent says in a few months it can increase production by 40-50%. Oil revenue from Venezuela will be in a special fund that will be used for the people of Venezuela. Under Maduro since 2013 the oil revenue was used for regimes in Cuba and not managed well for the investment in infrastructure and modernization. US sanctions made it hard to modernize the oil industry which will now take place. Bessent calls Cuba's economy decrepit and now in bad shape. It also shows that realistically modernization and good standards of living are not possible in the western hemisphere by regimes of the Cuban or Bolivarist type which descend into corrupt regimes and lack foreign capital and technologies. Lula adopted an approach in Brazil that worked with the US and EU to modernize the economy creating a workable model for a Workers party. There is much to learn from these experiences in Latin America which come at considerable cost and suffering. ...

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Saudi price cut in November 2014 to reverse market share decline in the U.S. The Saudi share of total U.S. oil consumption declined to 4.6% in August 2014 from 7% in August 2013, according to EIA. This brought NYMEX price to below $80 in early Nov. 2014.

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Peter Eavis describes the results of the new Federal Reserve LISCC's determination under Tarullo, Gibson and Taylor, to bring discipline to financial markets and reduce systemic risk. Over the last 3 years Goldman Sachs has spent $16.3 billion in buybacks, about 70% of profits, to return money to shareholders and improve metrics such as earnings per share. This strategy will now have to be reversed. With the Fed stress tests in Feb. 2015 the focus is on banks with large trading desks. Goldman unlike other banks has counted on a strategy of preserving a large trading operation in the hope that this will earn the bank larger profits when the market recovers. This does not sit well with the Fed in the 2015 stress tests- showing a $23.8 billion loss if the stock market fell by 60% in a crisis, leaving Goldman with a bare minimum in reserves. Goldman will now have to reduce the buybacks to add to reserves after the current stress tests, and pare down its trading desk operation.

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General Electric, GE, experienced a steep decline in the last decade. The worst news came in 2018 with the loss of half its share price and market value. One story tells about an employee who was forced out of retirement back to work seeing the loss of value in GE shares in 2018. Rarely has a company of this size seen a fall in stock price this steep, for a stock that was once seen as safe for widows. About 60% of GE business comes from jet engines, electric power generators and wind turbines. GE now plans to sell its health care business and other business that do not relate to core infrastructure in energy, aerospace, and other markets. Under Jack Welch a faulty model of adding diverse businesses that had nothing to do with its core business and expertise in infrastructure were added. A home mortgage lending business was added and GE Capital expanded. NBC Universal was added with little justification in a period when CEO's acted without much consultation. The home mortgage lending unit collapsed with large losses during the 2008 financial crisis and GE's share price dropped drastically to $6.00. Under Welch's successor Mr. Immelt the GE Capital unit was shrunk in size, but losses continued to mount. An oil field service unit was added which also sustained losses.  Immelt's successor Flannery faced a loss of $15 billion from the financial lending unit. Sale of some businesses was not sufficient to meet the loss. Flannery is now taking GE out of all the businesses which were not core business. The NBC Universal television business was sold to Comcast in 2013. GE Healthcare is next. This closes a bad chapter in GE's story under Welch and Immelt. GE's dividend was cut for the second time since the Great Depression. The story of GE is also the story of American business during the last two decades, with icons such as GM, Ford and GE suffering decline, businesses that operated like little fiefdoms of old nobility in Europe, with CEO's operating in a CEO centric culture, not tolerating contrary opinion for informed debate on issues facing the business. Alfred Sloan founder of Genral Motors called constructive debate central to good management. Later Intel CEO Andy Grove coined the phrase constructive confrontation as a way of constructive debate, and the CEO was shown as the first of equals. The CEO centric management ignored these warnings and admonitions in running their fiefdoms.   ...

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OPEC and Russian oil producers are planning to increase oil production by 400,000 barrels a day for each month through 2022. Demand is increasing with economic recovery and this will lead to higher oil prices. Oil prices are now $80 a barrel in October 2021. Shortages of natural gas and high prices are leading power generation companies to use oil in place of natural gas. This will increase demand for oil by 500,000 barrels a day. Oil export revenue was cut in half to $119 billion for Saudi Arabia in 2020 and Saudis want to see higher prices to make up for lost revenue. OPEC + that includes Russia decided to end a price war during the Trump administration and this time have designed a strategy that will gradually push up prices. In recent years shale oil producers in the US quickly responded to higher prices of oil and increased production. After the pandemic in March 2020 American shale oil producers in 2021 are not increasing production. This gives OPEC+ better ability to set oil prices at higher levels. ...

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$2 trillion in exports by 2030 sounds like a lot but this will get India in 2030 to where its at about 8% share in world trade. This will be the point at which India can move forward to get a share of world trade that is closer to its potential and to its role as the largest economy by population, which meets the rising aspirations of its young population.

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Cuba needs 100,000 gallons of fuel a day. It produces 40,000 gallons a day on the island. The shortfall is leading to a humanitarian crisis with the dererioration faster than expected. Reports from Le Monde, El Pais, and other media show adire situation unfolding. To provide about 10,000 private companies with enough fuel to operate as they import $1 billion of food and goods each year the US government is allowing the flow of some oil to Cuba. This is about 100,000 gallons in small containers as a step to avoid a economic catastrophe. For Cuba, as in Venezuela, and Colombia, and also in Mexico, central America, thirty years of experimenting with ideological movements has led to unmitigated disaster with drug trafficking, drug cartels, migrant trafficking, economic mismanagement on a massive scale. The result is repercussions across the continent and disturbing the social, political and economic fabric of the United States.

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Argentina and Repsol agree to a settlement of $5 billion in Argentine bonds for Repsol's 51% stake in YPF. The deal is brokered by Mexico's Pemex, which has a 10% stake in YPF. Argentina is seeking foreign investment and technology to develop its large shale oil and gas reserves. The settlement with Repsol is a step towards attracting large western oil companies to invest in Argentina.

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More shale oil from the Permian basin in western Texas is making it way to markets in Europe in 2023. Shipments from the Gulf Coast of the US are estimated to be 1.53 million barrels a day in Jan 2023. Shipments to Spain are up 88%, with similar shipments to Germany, France, Italy and Spain. Natural gas shipments to Europe from the US have doubled in 2022.

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Lauren Weber interviews online recruiting company Monster CEO, Sal Iannuzzi. Monster is seeing its business upended by social recruiting, niche job boards, and company career websites enhancements. Its share price is down to $7 from a high of $50. The company is developing its own product for social recruiting using Facebook app. Monster's Iannuzzi is also exploring options for sale of the company.