LyrArc Article Gist
Germany's largest utility plans to spin off its conventional power generation, exploration and production units to focus on renewable energy. The fossil fuel units are restricted by German regulation as Germany moves to increase use of alternative solar and wind energy. The German government sees this as a positive step for energy transformation. German government support for green energy, including large subsidies, is resulting in a power surplus and lower prices for wholesale power. This makes traditional power plants unprofitable. In addition the ruble is negatively affecting Russian operations, Brazilian operations are unprofitable- these assets will be part of the fossil fuels unit, a kind of "bad bank" of assets, say analysts. E.ON shares went up by 4.3% on the DAX exchange, Dec. 1, 2014, showing positive investor perceptions of the move.

LyrArc Article Gist
Daisy Maxey of the WSJ talks to 3 financial advisers during Dec. 2014 about how investors should approach stock market volatility, the U.S. Federal Reserve's plan to raise interest rates, and tax issues in 2015. The advisers say investors should not let the volatility affect a steady long term investing strategy. Joel Isaacson says he prefers high-dividend paying stocks over the 10 year U.S.Treasury bonds because of the lack of much upside in bonds. He adds that taking extra risks on high yield bonds is not warranted. The advisers refer to opportunities in areas which are not doing well in 2014 such as in Europe. On tax issues having some money in Roth IRA's is suggested, to have money in tax deferred as well as tax free accounts. Annuities depend on individual situations.

LyrArc Article Gist
Difficulty attracting foreign investors to India's bond market. After adjusting for consumer inflation India's three month Treasury bill pays a negative 2.3%, according to Citi. Official foreign funds data for India shows as of Dec. 16, 2013, that foreigners used up only 32% of the quotas assigned to them in the bond market. If they were to use up the entire quota this would be $81 billion compared to the deficit for the year ending March of $50 billion. Foreign investors also have to deal with the risk that the currency could depreciate as in the summer of 2013, for which they need higher interest rates. The RBI increased interest rates twice since Rajan's taking office in September 2013. During 5 months of 2013 foreigners made a net withdrawal of $12.9 billion.

LyrArc Article Gist
This WSJ editorial summarizes the main reasons Republicans and many others object to increase in U.S. contributions as the IMF increases its resources under a new plan. The reforms increase the influence of Brazil, China, India, Turkey and other countries in the IMF governance. Also at issue is European influence that the U.S. sees allowing risky loans to countries such as Greece, where rules were relaxed under EU influence during the eurozone crisis. This topic of IMF reform will be coming up in the G 7 meeting of central bankers and finance ministers in Dec 2014 at Sydney, Australia, with the new U.S. IMF representative defending U.S. interests. The case for the reforms was presented in WSJ by Christine Lagarde, head of the IMF, and is part of the link.

LyrArc Article Gist
A Brookings Institution study of hiring trends and unemployment in the 100 largest metropolitan areas of the U.S. at the end of 2012, shows 78 metropolitan areas adding jobs in the 4th quarter 2012. 14 of these areas had more jobs at the end of 2012 compared to before the 2008-2009 recession. Six of these cities were in Texas. This included Knoxville, which gained from jobs added at a nearby VW plant. Other cities were Oklahoma City, Omaha, Salt Lake City, Charleston. Only three cities in the East and West are on the list- Pittsburgh, Washington and San Jose, and none in the midwest, showing the geographical divide in job gains. And Washington D.C. will lose government jobs after job cuts in the government. Charleston will lose jobs from cuts in military spending.

LyrArc Article Gist
Japan's vice finance minister for international affairs, Mitsuhiro Furusawa, emphasizes that Japan's effort to revive the economy is exactly what the IMF and the international community have been looking for Japan to do. The effort is designed with the primary objective of fighting deflation. The yen has declined by 15% since the new administration of prime minister Abe assumed power Dec. 26, 2012. It now is at 99 yen to the dollar compared to 80 yen to the dollar in 2012. At 80 yen to the dollar the IMF considered the yen "moderately overvalued." Furusawa assumed the new position recently. His previous position was IMF executive director 2010-2012. In that position he assisted IMF managing director, Christine Lagarde, in efforts to manage the sovereign debt crisis in the eurozone.

LyrArc Article Gist
Time Berners Lee is in Washington DC in an effort to prevent a rollback of Obama period Net Neutrality laws. Here he repeats his warning about the way the internet is being used by digital gatekeepers using advertising efforts to control or manipulate parts of the internet.

The founder of the internet from its early days says the whole system is failing, that the way ad revenue works it is distorting for people and information. Specially placed AI works to distract viewers, and is not healthy for truth or democracy, says Lee.

 

LyrArc Article Gist
Gregory White and Anton Troianovski provide this exceptional account of how Russian president Putin miscalculated all through 2013 and 2014 about the way Germany and the EU would respond to Russia's actions in Ukraine. Putin also according to other accounts miscalculated how Saudi Arabia and OPEC nations would act on maintaining oil production in the middle of a slowdown in the economies of Asia and Europe. A combination of events beyond his control such as the economic slowdown in the second half of 2014, with the miscalculations on OPEC price moves particularly following Russia's failed Syrian intervention disrupting Saudi-Russian relations, caused the damage. Major miscalculations were made about German cooperation in the face of Putin's moves- the changed convictions of German chancellor Merkel about Russian intentions following repeated Ukraine interventions, and changes in German public opinion following the downing of a Malaysian airliner flight in which many Dutch citizens lost their lives. Putin used subterfuge to coverup his actions making his story line less credible with Germans with each repetition. The result of these miscalculations and lost confidence in Russia's economy and policymaking is that the Ruble dropped to 62 to the dollar, losing nearly half its value in 2014, and a deep recession expected in 2015. Even though Russian takeover in Crimea enjoys support and Putin still has widespread support for nationalist policy with a tightly controlled media, many officials in the government and business leaders warned about the dangers for Russia's economy in 2014. Former finance minister Kudrin, and the head of Sberbank, who were principal architects for Russian finances and economic policy reforms, were clear about the dangers. Only by Nov- Dec 2014 were their voices being heard. ...

LyrArc Article Gist
Spain's Socialist Party emerged as the largest party in parliament with 123 seats in the Spain's 2019 general election. The Socialists increased their share of the vote from 23% in the 2016 elections to 29%. With the help of the centre left Podemos Party led by Pablo Iglesias it has 165 seats in the 350 member parliament, 11 short of a majority. Its leader Pedro Sanchez who called the snap election after a no confidence vote in 2018 brought the Socialist Party to power, said after the win that he would work to reduce inequality, promote co-existence and women's rights. Spain's Popular Party (Partido Popular) which has alternately governed Spain with the Socialist Party since the shift from the Franco era, and which governed Spain till March 2018, won just 66 seats down from 137 in the last parliament.  It lost support to the far right nationalist Vox Party which opposes secessionist sentiment in Catalonia. Vox won 10% of the vote and won 24 seats in parliament. The right parties in Spain are now fragmented with the Ciudadanois party a centre right party winning 57 seats.  A coalition with Ciudadanos is unlikely, and the Socialist party with its ally Podemos party looks for support from other parties. It will try to stay away from secessionist parties from Catalonia because of the general sentiment in Spain opposing the separation of Catalonia from Spain. Turnout was 76% up by 9% from the last election. The Secesionist ERC party in Catalonia has 15 seats.  The right wing parties Popular Party, Ciudadanos and Vox Party fought the campaign saying the Socialist Party supported Catalan separatism. ...

LyrArc Article Gist
Research by Allen Roses, director of Duke University's Deane Drug Discovery Institute, and continuing research on the ApoEgene that has aclose link with Alzheimer's. In 1993, Dr Roses's research showed that people who have avariant of the ApoE gene have an unusually high risk of developing Alzheimer's. THese studies have been repicated by other scientists. In research presented at the international conference of Alzheimer's deisease in Vienna, Dr Roses and this team show that they have found a gene linked to ApoE called TOMM40. This gene had mutations that involved a small number of extra copies of aparticular building block of DNA in some individuals and alarge number of extra copies in others. Individuals with alarge number of extra copies- knownn as the "long repeat" version of TOMM40- coupled with ApoE3 develop ALzheimer's an average of seven years earlier- at about 70 compared to the individuals have the "short repeat" version.

LyrArc Article Gist
Glaxo's drug pipeline, its strengths, and whether it can live up to the best in the industry that Dr Garnier is trying to achieve. It takes 8 years to 10 years to get the results of research dollars. Dr Garnier created the new research departments for Glaxo Smith Kline from the separate departments of the two companies Glaxo and Smith Kline that merged in 2000. It may be too early to guage the results of Garnier's efforts to restructure R&D.

LyrArc Article Gist
The need for a global response to a global problems not a lot of local solutions is the subject of this article by Dr. Larry Brilliant, who for 7 years 1973-80 worked with the World Health Organization to eradicate smallpox globally. 1. Action for a global response-The WHO can act as the vehicle for action globally-  restructure it and empower it to do the job. Put the right people in place who have the confidence globally. Set a new pandemic treaty and put it in place. 2.  Get a more advanced version of the mRNA vaccine which does not need a cold chain. India is reportedly working on one. Put funds and people in place for vaccine drives in poor countries.  Other action needed is learning from the situation in South Africa where the HIV patients are reported by Stephanie Nolan in NYT to have been more susceptible to mutations of the new variant. How can resources be put in place in poor countries so that patients in vulnerable populations get their medicines regularly, and are vaccinated. Overall how can these populations have the vaccine supplies needed- including ones without cold chain suggested by Larry Brilliant, potentially through vaccine work in India. Can international teams be developed with developed countries in Europe and US financing the effort and India offering its manpower and knowhow?   ...

LyrArc Article Gist
New developments in the lawsuits filed in Washington DC by 38 states attorney generals related to legal theory. A separate lawsuit was filed by the Justice Department in Virginia against Google. With 90% of the advertising search queries worldwide and $160 billion-in-sales advertising business Google is in a position that is not supported by the idea of competition that is inherent to the American system of business and the economy that holds that no one competitor should dominate the market. This happened during the early twentieth century under Rockefeller's Standard Oil and is happening once again with Google and other tech companies that monopolize space that is vital to maintaining an economy based on fairness and competition. Current legal theory practice fails in this respect as it does not clearly recognize that the principle is at stake that no one company should be allowed to control vital public space or resource such as in this case internet or in the case of Rockefeller energy. Monopolies seen in this way fail the people because they make it impossible to exercize the inalienable rights of man and limit his possibilities by excluding alternatives and alternative expressions. ...

LyrArc Article Gist
India has 2.3 million of the 9 million tuberculosis (TB) cases reported annually. About 100,000 of these are drug resistant strains. Existing treatment methods do not work for drug resistant cases, actually exacerbating the conditions as the strains thrive if the antibiotics fail. Cases of drug resistant TB are reported in Mumbai, Bangalore and New Delhi. Experts say the $236 million India spends on TB treatment and control is not enough to deal with the problem. India lacks the machines that can detect drug resistant TB in 2 hours and patients with drug resistant TB wait for months taking treatments that fail before it is detected. The WHO provides these machines at a cost of $70,000 per machine and each patient test is $16. The first cases were detected in 2006, and India began building labs for this strain in 2008. So far 37 labs have been built treating 5000 patients. The WHO has tried to persuade India to get the diagnostic machines since 2010, which can do the work of detection for drug resistant strains much faster. These machines are in pilot programs and India will buy more if they work says Dr Kumar, head of India's TB program. Doctors at Hinduja Hospital in Bombay, including Dr. Udwadia, are not convinced and see the efforts as slow and bureaucratic. Dr Kumar says the government has focussed on regular TB which only costs $9 or 500 rupees to treat and cure compared to the $1800 or 100,000 rupees it takes to treat drug resistant TB....

LyrArc Article Gist
The insecticide resistant dry season Stephensi anopheles mosquito has made its way from India to Africa through shipping routes. In India aggressive action on malaria is keeping it controlled. In Africa it was first detected in Djibouti in 2020. At the time in 2020 Djibouti was declaring an end to malaria only to find 70,000 cases by 2022. It has now spread to Ethiopia. Stephanie Nolan provides this report from Dire Dawa, Ethiopia, where it breeds even in dry season in water treatment places, open water and the country lacks India's resources to eliminate this threat to health.

LyrArc Article Gist
The dangers to Turkey from external short term borrowings to finance its current account deficit. Turkey's current account deficit reached 10% of GDP in 2011. It is 8% in 2012 and is considered high by experts. The problem is short term borrowing from overseas which is sent through its banks for increasing levels of personal and housing loans. Were this flow to dry up because of a sharp downturn in the Eurozone economies it would damage Turkey's financial position. Bank short term external debt has doubled in 2011-2012 to $70.3 billion, or 9% of GDP, according to Capital Economics. The U.S. Fed and the ECB have eased global liquidity concerns, but risks are high as long as Turkey relies on short term borrowing. An escalation of the conflict with Syria also poses risks with fears of scaring away investors.

LyrArc Article Gist
Ed Miliband, leader of the Labor party, tells British prime minister Cameron in parliament on Dec. 12, 2011: "It's not a veto when the thing you wanted to stop goes ahead without you. That's called losing.That's called being defeated. That's called letting Britain down." Miliband was asking what purpose was being served, when it was expected that the European Union leaders were unlikely to provide Britain with safeguards for its financial industry, and when Britain has actually led the way in calling for stricter capital reserve requirements than Basel III standards accepted in Europe. Olli Rehn, European commissioner for economic and monetary affairs, said Britain cannot separate its financial industry from the rest of Europe: "If this move was intended to prevent bankers and financial corporations in the City from being regulated, that is not going to happen."

LyrArc Article Gist
The strong U.S. job gains of 243,000, according to the Labor Department for January 2012, is a result of unusual factors and is not likely to last. Warmer than usual winter has permitted more construction activity and construction payrolls increased in Dec. and Jan. Another factor is that businesses are making up for labor requirements after the pause during the middle of 2011 from the tsunami and earthquake in Japan, and the uncertainty created by the debt ceiling crisis. The eurozone crisis, and weakness in housing will continue to affect the economy and hiring. The average for jobs created in the last 12 months was 163,000 each month. This rate of growth in jobs will reduce the unemployment rate in 2012, with fluctuations as an improved job market will bring more discouraged workers back looking for work.

LyrArc Article Gist
As early as June 15, 2007, internal J.P. Morgan documents show, high-level risk management officers at Chase's investment bank sent e-mail to colleagues to report that Madoff was suspected to be running a Ponzi scheme. In Feb 2006, a risk analyst at Chase reported to his superiors that the returns of the Madoff Fund did not make sense, as it did far better than the securities reportedly in the portfolio. A lawsuit is being filed by the bankruptcy trustee of the Madoff Fund against Chase for allowing Madoff to bring billions of dollars of investor's cash into and out of his Chase bank accounts right upto the day of his arrest in Dec 2008. At the same time Chase had withdrawn $241 million of the $271 million it had invested in Madoff-linked hedge funds.

LyrArc Article Gist
The severe drought in China is affecting the provinces of Shandong, Jiangsu, Henan, Hebei and Shanxi, which produce about two thirds of China's wheat. China's Xinhua news agency is reporting that the drought in Shandong province could be "the worst drought in 200 years." China's retail wheat flour prices were up 8% over the two months to January and up 16% from the same month in 2010. The drought puts at risk the winter wheat crop harvested in June, according to the FAO. The FAO provided figures showing that 5.16 million hectares of a total of 14 million hectares of wheat producing areas are affected. China maintains large stores of wheat, estimated at 53 millon tons in Dec 2010, by Ma Wenfeng, an analyst with Beijing Agribusiness Consultant Ltd. The reserves act as a buffer for shortages.

LyrArc Article Gist
Obe and Pfanner provide insights into the business sentiment about Abenomics in Toyota City, by interviewing Kawahara, owner of a kimono shop, Okuda of auto parts supplier Okuda Industry Co., Arai, president of Hotel Toyota Castle. Sentiment for Abenomics is not strong here after two quarters of economic contraction in 2014, and business sees problems such as higher import costs of imported energy with a weaker yen. Yet business people say there are no alternatives and the opposition DPJ has less to offer for renewing growth. Sentiment is shifting towards support for the LDP in Toyota City. Unemployment has dropped to 2.4% here in Toyota City with the huge improvement in global sales and profits of Toyota Motor. Nationally an Asahi newspaper poll shows the LDP taking 300 of 475 parliamentary seats in the snap election of Dec. 2014.

LyrArc Article Gist
The FBI and the IRS were working on the same investigation of FIFA from different directions and began working together since Dec. 2011, as they found that the same people were involved. Richard Weber of the IRS, says another round of indictments can be expected. The IRS case starts with investigation into tax fraud and one discovery leads to another in the case. By 2013 Chuck Blazer had pleaded guilty to tax and corruption charges and agreed to cooperate with the IRS and the FBI, leading to the breakthroughs that followed. Enhanced cooperation between the Justice Department and international banks since the indictments against banks for illicit operations has made banks willing to cooperate with investigations fully. Once the case was built up getting FIFA officials at one place for the meeting in Zurich made it easier to make the arrests.

LyrArc Article Gist
Shinzo Abe and the LDP won a landslide victory in Japan's Dec. 2012 elections. Shinzo Abe was the first prime minister of Japan born during the post war period when he became prime minister in 2006. He is less influenced by the legacy of the pre-war period and war period. Abe is the grandson of Nobusuke Kishi, Commerce and Industry minister during the war, and prime minister when Japan signed the security treaty with the U.S. in 1960. His father was foreign minister, making him one of the rare politicians with a deep family history in Japan's government. Their views also influenced his own. Kishi is committed to changing Article 9 in Japan's constitution which limits the role of the military, and renounces the right to wage war. His 2006 book "Toward a Beautiful Nation," describes some of his views.

LyrArc Article Gist
The US National Highway and Traffic Safety Administration is asking ARC Automotive based in Tennessee to recall 67 million airbags because of a safety defect.

LyrArc Article Gist
Clarendon is a 15 minute Neighborhood, a neighborhood in Arlington, Virginia just a few Metro stops from downtown Washington DC. One can walk to where ever one needs to go within 15 minutes. This writer suggests that people will not move to such neighborhoods till more of them are built and the price comes down. In 2024 15 minute neighborhoods cost much more and offer less living space- not an attractive option he says. Houses elsewhere in Arlington cost as much as apartments in Clarendon.