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E.J. Dionne, of Gerogetown University and the Brookings Institution, says the current situation in U.S. politics resembles the 1912 presidential election when a Princeton professor Democrat Woodrow Wilson called for stronger curbs on big financial institutions, and Republican Teddy Roosevelt, a former president, called for tighter regulation. During his presidency Roosevelt had helped pass legislation to curb monopolies, and represented the Progressive wing of the Republican party. Taft who was president was Teddy Roosevelt's protege and vice president before becoming president, and alienated Roosevelt by moving away from progressive actions taken during Roosevelt's administration. Dionne says Hillary Clinton's views are similiar to Teddy Roosevelt's views, and Bernie Sanders' views to Wilson's views. Wilson won 435 electoral votes to Roosevelt's 88, and Tafts 8. The big difference now is that on the Republican side the progressive wing that Teddy Roosevelt established is non existent, with Cruz's positions similiar to Reagan's, Kasich and Cruz at best close to Jack Kemp's views on broadening the Republican base with concern for working class issues, and Trump's views not clear because of lack of clear policy or programs beyond the personality based campaign. Dionne points to the problems facing the "progressives" of Sander's young supporters staying away from the polling booths with Hillary Clinton as the nominee, putting a Republican nominee into the White House. Overlooked here is the idea that much of the election campaign even in an advanced country like the U.S. is fought on slogans, leaving out some critical facts. The problems progressives face emerged during a period when a Democrat was president, and the influence of lobbyists had not diminished. Outsiders on the Republican side are focussed on diminishing the power of lobbyists, the political calculus of elections, and other interests that have affected policy in the last 8 years hurting the middle class and working class. ...

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Foreign institutional investors responding to negative sentiment for emerging markets in general took out $2.6 billion from India in August 2015. Yet average allocations to India for emerging market funds have increased to about 10.7% in July 2015, because India looks much better than other emerging markets. By comparison China is at 20.25%.

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This NY Times editorial cites Defense Secretary Aston Carter's comments after the fall of Ramadi to Islamic State, that the Iraqi army units at Ramadi outnumbered the Islamic State militants but "lacked the will to fight." It points out the problem of the Iraqi government using Shiite militias which further aggravates sectarian tensions.

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Brinkmauer and Pfister of the German magazine Der Spiegel interview German Chancellor Angela Merkel in September 2017. The interview covers a range of topics from whether Merkel is addicted to power, why she chose to run for a fourth term, revolving door for CDU politicians as lobbyists for the automobile industry, the AfD right wing party, the refugee crisis and the CDU's historic policy of controlled immigration, and whether democracy is losing strength.  In characteristic Merkel fashion the chancellor takes up the idea of her addiction to power by saying she is careful not to let this happen to her by reading critical articles in the press and having her staff bring critical reports. Her discussion with her constituents in her electoral district are also frank and open, more so in 2017. About the idea that Helmut Kohl's fourth term as chancellor being not good for Germany and for the CDU, Merkel responds that she has given it considerable thought. She found that she still has the intellectual curiosity to learn new things, understands that she has much to learn about how the country and the world is changing. This has been decisive in her decision to run.  Merkel believes that someone who has worked in politics should be able to work in private industry following historic practice in Germany. On the government links with the automobile industry Merkel says her approach has been to look at what was best for an industry employing 800,000 people in Germany, yet deplores the diesel emissions cheating at VW. Has democracy lost momentum after the U.S. elections and the refugee crisis? Merkel says democracy is still strong, and that she will do everything to strengthen democracy in Germany and other parts of the world.  Merkel's view is that it is important that there be counterweights in democratic systems. In this way democracy is strong in America, and also in Poland and Hungary. The chancellor cites high voter turnout of 82% in 1998, 79% in 2002, 78% in 2009. Since then she says in 2009 it dropped to 71% and 2013  72%, yet  expects that with the issues in this election people will come out to vote in larger numbers.  For many years Merkel is seen as co-opting the issues of the left parties and the SPD, being careful to move to the centre. Der Spiegel puts this idea forward to the chancellor by asking her if she is the best SPD chancellor Germany ever had.  In her matter of fact style Merkel responds that voters do not think of it this way, simply expect her to her job as best as she can possibly do it.       ...

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Dilution of the Volcker Rule by defining "hedging" as covering bank risk on a "portfolio basis," "including aggregate risk of one or more trading desks." The new wording is in a 174 page draft proposal for the rule released by regulatory agencies. The Federal Reserve, the FDIC, the CFTC, the SEC, and the Treasury Department are putting together the final wording. This opens the door for banks to engage in proprietary trading on their own account. Experts say this makes it possible for financial firms to make all kinds of bets on the market, by defining the risk of its portfolio broadly, such as a U.S. recession. Additional changes are the deleting of the requirement that chief executives pledge their firms are not engaging in proprietary trading. Another change that is being debated is whether to require banks to report all trading to a single repository so that regulators can see if there is systemic risk. The result of this would be a watering down of the original Volcker Rule provision in the Dodd-Frank legislation, that banned proprietary trading after the 2008 financial collapse on Wall Street....

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Reminders of the 6th of May, 2010, when sentiment swung the other way and the Dow Jones averages dropped by 900 points.

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How returns in the U.S. stock markets of over 30% in 2013 change the picture of five year returns to the end of 2013 compared to the end of 2012. Long run has to be much more than 5 years and even longer for decent returns.

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The concentration of particles less than 2.5 microns in diameter reached 700- 886 micrograms per square meter in Beijing in Jan 2013, 500 is routine. The World Health Organization says a level of 25 micrograms per square meter is safe, above 300 poses risks calling for one to stay indoors. This is the high cost of rapid motorization of China and lack of strict pollution control laws and enforcement for industry. The pace of car sales in the last ten years was extremely fast and unprecedented in comparison to Europe, the U.S. and Japan in a similiar period of development.

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The poor air quality in Beijing and other Chinese cities especially for children is at a point where many middle class Chinese want to emigrate. This is making Beijing, Shanghai and other cities less desirable for foreign nationals.

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Donald Trump in the week before the Republican caucuses in Iowa. Trump says he will be the winner in Iowa. He is introduced at an event in Pella, Iowa, by Senator Chuck Grassley, who has not formally endorsed Trump. He stays at an Holiday Inn Express in Sioux Center, Iowa, and attends church sunday service at Muscatine, Iowa.

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Robert Selander, retiring CEO of MasterCard, talks about the questions he asks and what he looks for when interviewing and hiring for jobs in the organization. His experience in multicultural and multilingual environments like Brazil has shown him the value of not judging by linguistic skills alone how knowledgeable and capable a person is. He asks about strengths and weaknesses, and asks how the interviewed person is going to work on his weaker side to be able to overcome these barriers. He looks for chemistry and initiative, the kinds of things that tell him that that person would be right in the infield with him. For leaders he look for how they have brought in talent and pulled the team together to get a real business together from scratch, if it is a new business.

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Susan Carey interviews the new CEO of United Continental Holdings Inc, Jeff Smisek. Mr Smisek is a lawyer for the law firm Vinson & Elkins LLP. He brings to this job, which involves negotiating labor contracts and bringing together reservation systems of the two merged airlines, prior experience in the 1995 turnaround of Continental. Smisek was part of the management team that helped turn the airline around. The important things for Smisek is getting the people in the merged airline embrace a positive culture, and this he says begins with honest communications. He is heavily focussed on this part, as he says this is a service business, and employees won't give the best service unless they really want to. Next he is focussed on execution of the integration aspects. And third, what he calls the day to day tackling and blocking of operating the airline. His management style is to get a lot done by walking around and using an informal style, by being direct. He would like to see the airline make money in the tough times and do even better in good times, and invest in people, product and technology....

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Lahart points out that it will take time for Electrolux to put the the two businesses together following its acquisition of the GE appliance business. The $3.3 billion Electrolux paid is much less than estimates made earlier, showing the still depressed state of the housing market. Electrolux shares went up 5.1% in Stockholm. The potential of sales in the U.S. market will help as Europe recovers from a sales downturn. Economies of scale will help Electrolux, yet its main competitor Whirlpool has made investments to compete effectively in a larger market with growing sales in emerging markets and U.S.

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An extraordinary achievement after months of careful planning in designing the 1 trillion euro bond buying program to calm German fears, diplomacy in Germany, and persuasion with German media, for Mario Draghi of the ECB and other members of the six member Governing Board of the ECB. Risk will not be passed onto other countries and will remain largely within each central bank and each country for managing its finances- this is the ECB's approach that convinced other countries, Netherlands and Germany.