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Moody's may fire employees who made serious errors in assigning ratings amid allegations of wrongdoing in rating CPDO's or constant proportion debt obligations and other financial instruments.

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A general strike in Argentina in Nov. 2012 to protest rising inflation, estimated at 25%, and demands for a reduction in federal taxes for workers. The economy has deteriorated since the election of Christina Kirchner as president in 2011. Kirchner also has a fallout with the major unions.

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The Gallois Report commissioned by the new government in France to restore France's manufacturing competitiveness. Louis Gallois is the former head of aerospace firm EADS. It calls for a 30 billion euro cut in payroll taxes to help French companies compete in global markets. Gallois proposes 22 main measures to "stop the slide and support the economy." He called this a "competitiveness shock." Gallois points to France's 70 billion euro trade deficit in contrast to booming German exports. The cost to the economy was 2 million French jobs over 3 decades, says the report. Unemployment today is around 10%. Measures suggested include the payroll tax cuts of 1.5% of GDP for salaries upto 4900 euros a month, and employee representatives to sit on board of directors of French companies similiar to Germany.

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In Britain, in India and in the EU, the race is between the vaccination drive and the infection case growth, as each country and region takes steps to accelerate and organize production, distribution and administering of the vaccine to all parts of the population.

The latest late stage trial for Astra Zeneca vaccine in US, Chile and Peru, offers new hope. It is shown in that trial that it is 100% effective in prevention of hospitalization and deaths, and 79% effective in prevention of symptomatic illness from the coronavirus. It is also seen as safe by experts as it goes for FDA regulatory approval in the US. It is provided at cost, and storage is in ordinary refrigerators for long periods, with production in India of large quantities of the vaccine, making it a vaccine that could reach large parts of the world's population.

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Over 1 million people turn out across France in protests against pension reform that takes the retirement age from 62 to 64 years. Women feel more discriminated against in this reform. The prevalent age discrimination bias in France makes it harder to find jobs after 50 years, even harder after 60 years. There is a perception that the reform is not the first priority so soon after a pandemic with its after effects, and that other changes including age discrimination and the way it affects women need to be tackled before pension reform. The government lacks an overall majority, the eight unions are united in protests and possible strikes, creating a situation in which French president Macron needs to rethink his whole approach on addressing pension reform- when tacking the cost of living crisis and climate change, energy transition, are other priorities that need more attention at this time.

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The monopolistic behaviour of Amazon is the subject of this report in the WSJ. Bezos originally called his company relentless and even now relentless.com takes you to Amazon site. What he has set up is a mentality of relentless growth by acting like an aggressive startup. WSJ says it has never grown up even though it has acquired business after business often buying or copying smaller companies. It has not matured even though it has over 1 million employees. The problem was low wages and only recently did Amazon increase wages. So that we have this strange and bizarre situation in a developed advanced country like the U.S. where a whole class of academic economists offer Americans low consumer goods costs with manufactured jobs shipped overseas in the name of fighting protectionism, and Amazon as well as automobile and other manufacturers cutting American wages, to create the kind of society we have today split between blue collar and white collar, economically, politically and socially. ...

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2023 is the year of huge aviation orders. Some even say this may stave off a recession. Biden says this would create 1 million jobs in the US. Modi names about 10 American states that will benefit from India's growing civilian and military aircraft needs. The biggest order in aviation history was one of 500 single aisle planes from Airbus by India's Indigo Airlines. Before this order Air India made an order of 470 planes from Airbus and Boeing. Riyadh Air and the Saudi airline also place large orders. 

WSJ cautions that it takes 6 years for planes on order to be delivered. There are production and regulatory issues. Some of the orders can be pared down. One expert says it is a way to get in line for planes to be delivered by planning ahead as the Indians have done by foresight about rapidly growing demand.

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Britain's Treasury chief Osborne faces a difficult period as the economy shows flat growth for 2012 and 2013. The targets he set for eliminating the structural deficit or budget gap by April 2017 may need to be shifted to 2018. The target for net debt to decline as a percentage of GDP by 2015 may also be unachievable if growth is flat in the coming year. An accounting change in how profit from the Bank of England's bond buying program are shown is designed to reduce Treasury's borrowing and bring Britain closer to this target. Osborne says Britain's actions for austerity measures, spending cuts and increasing taxes have helped keep interest rates low to pay off debt.

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A management shakeup takes place at Nike with the departure of several executives and the HR chief for inappropriate behaviour. Nike is described as having a boy's club culture in this report which shows some women left Nike to join rivals Puma and Adidas, and others conducted a survey about conditions for women at the company relating to pay inequity, and allegations of inappropriate workplace behaviour. Following the survey Nike CEO Parker conducted his own internal investigation leading to the management shakeup. Nike will now setup mandatory manager training so that it takes the steps to become a women friendly workplace.

Nike has developed an aggressive competitive culture in its competition with Adidas and other brands. This has added to difficulties for women at the company.

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Stamouli and Walker of WSJ describe the last days of negotiations in June before Greece pulled out its negotiating team, and German chancellor Merkel decided to call off the bailout of Greece. The impasse was over pension cuts and vaue added taxes, yet the negotiations were still going over details when Tsipras pulled out Greece's negotiating team with the surprise announcement of a referendum on July 5, 2015. By saying the Syriza party would call for a "no" vote Tsipras alienated public opinion in Germany. Chancellor Merkel seeing the shift in domestic opinion favoring Greece's exit from the euro during the tense months of negotiations with the Syriza government and acrimonious charges, moved to call off a continued EU bailout of Greece.

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French president Macron on a dawn to dusk two week effort to prove that he takes voter concerns for the cost of living for pensioners, elderly, young people, poorer communities in rural areas and smaller urban areas very seriously now that inflation is surging. The French presidency is seen in the Gaullist tradition as invested with huge concentration of powers, forgetting that De Gaulle helped bring about the major social changes in France by bringing farmers across France from scattered small plots to the modern agriculture and technology that was unknown in rural areas, and investing heavily in infrastructure building to build a modern France. The strong presidency itself was designed to give the president the power to make these changes.

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The new excitement of scenic train travel. The Manhattan New York to Burlington, Vermont, on Amtrak's Ethan Allen Express takes you through the Hudson River Valley and to the shores of Lake Champlain with its fresh mountain air away from the hustle and bustle of New York City. It is an 8 hour ride to this lively university town in the north country near Canada. "I like to see it lap the Miles/ And lick the Valleys Up/And then around a Pile of Mountains," says Emily Dickinson of train rides even in a period of steam engine driven trains. Today's trains with glass around you are even better for the view of Nature.

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In the 2 hour call Xi and Biden discussed issues that are creating serious differences between the 2 countries, the war in Ukraine, Taiwan, trade and tariffs, South China sea and Indo-Pacific issues, global supply chains, food and energy issues. Chinese statement says "those who play with fire will be perished by it. It is hope the US will be clear eyed about this." Xi Jinping takes on a third term in 2022. Biden has spoken with Xi five times since 2021 and the last call in March was to dissuade China from supporting Russia in the Ukraine war. China is opposed to Nancy Pelosi's visit to Taiwan. Biden has said it was a bad idea at this time.

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Raheem Sterling, Manchester City soccer striker takes England to the quarterfinals of Euro Soccer 2021 with his goal in the game against Germany. In that 2-0 game the second goal came from Harvey Kane.

The Guardian gives this story of Raheem growing up in a difficult neighborhood in Kingston, Jamaica. His mother, a nurse, moved to London after losing his father to gang violence. There he played for teams before he was 14, then moving to Liverpool Club, in the north of England. He showed real determination at an early age, and concern for kids growing up near Wembley stadium where he once lived, who had no chance to watch soccer or participate in the game.

 

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In a two and half hour news conference prime minister Li Keqiang of China gives some insights into the new thinking of China's leadership on issues of trade with the U.S.,charges made against Huawei, and handling China's slowing economy. On Huawei or Chinese tech companies conducting spying for the Chinese government Li Keqiang stated: This is not consistent with Chinese law. This is not how China behaves, We do not do that and will not do that in the future." To tackle the slowing economy Li said the government is reducing taxes and cutting interest rates and the money banks are required to hold as reserves. By reducing expenditures the government will save 1 trillion yuan ($148 billion, collecting higher dividends from state firms, and retrieving unspent state funds allocated earlier. The purpose Li repeatedly emphasized is to free up credit to help private companies and prevent "layoff waves." On the trade issues with the U.S. Li believes it is not possible to uncouple the two countries economies, and said he expected the trade talks to lead to a positive outcome. China's national legislature he said passed a new foreign investment law as proof of its commitment to creating a fair environment for foreign companies, including complaint responding mechanisms, transparency in information disclosure and fast followup in issuing regulations that put the law in effect. ...

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This WSJ editorial on the sliding scale with lower capital gains taxes for investments held for a longer time frame proposed by Hillary Clinton, says there is no economic theory that shows one or two year investments are worse than longer term investments, and says investors who invest in startups and cash in after a year or two can then invest in other startups increasing investment capital. It points out that new startups are fostered better in an environment where capital gains taxes do not promote holding investments for a longer term. Hillary Clinton is calling for higher capital gains taxes on shorter term investments. The current rate is similiar to the 20% rate under Bill Clinton. George Bush lowered it to 15%, and president Obama increased this to 20% for couples earning more than $484,851 a year, and added a surcharge of 3.8%. Under Reagan it was initally 20% in 1981 and in 1987 as part of tax reform cutting the top income tax rate to 28%, it was 28%. Hillary Clinton's plan is for it to be based on how long investors hold their investment discouraging 1-3 year investment horizons- Year 2- 43.4%, Year 3- 39.8%, Year 4- 35.8%, Year 6- 23.8% or the current rate for the highest income bracket. Investments in infrastructure and long term research projects leading to new technologies and products require a longer horizon encouraging such investments. The Clinton plan appears to be a response to the tech bubble with investments in small tech changes and software improvements that have led to surging investment in startups in social media and other areas which have not yielded the productivity gains needed to support increase in wages- resulting in low productivity and low wage gains in the last decade....

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US House Republicans are pursuing cuts in spending of as much as 50% in many programs that are considered essential, such as a 50% cut in foreign aid at a time of global food insecurity, deep cuts in the FBI's counter intelligence budget, deep cuts in healthcare services and housing to low income Americans following the pandemic and high inflation, and other cuts to services benefiting workers and families. Democrats in Congress and president Biden oppose such cuts and hope to eliminate the deficit with cuts that do not place an unfair burden- taxes on the wealthiest with over $100 million and on stock buybacks would generate about $2 trillion to cover the whole deficit which is in the range of $1.4 trillion in 2023 moving to $2 trillion a year. Much of the Republican plan is being shaped by Mr. Trump's former Budget Director, Russell Vought, says this report in the NYT. Mr. Vought calls it an attack on the bureaucracy and woke spending. Other Republicans see this as an ideological approach that does not address today's problems. Chuck Schumer, Democrats Senate Majority Leader asks Republicans to spell out their plan. ...

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India's Commerce and Industry Minister Piyush Goyal sets out the new Foreign Trade Policy. It moves away from giving incentives to exporters to remission of taxes and lower costs for smaller medium sized enterprises. The new export target is for goods and services exports to reach 2 trillion dollars by 2030 from $760 billion in 2023. The new policy will go into effect in April 2023. India's exports have grown 75% from $435 billion in 2015 to $760  billion in 2023. Under the new policy Indian exporters can source goods in one country and send them to a third country without touching Indian shores. Wider engagement will take place with States and Districts to promote exports at grassroots level. DGFT, Director General of Foreign Trade offices of DGFT will interact with district collectors to push exports. India's Commerce Ministry will also conduct a massive global outreach sectorally and country wise in tandem with the External Affiars Ministry  over the next 4-5 months. E commerce hubs will be established to generate $200-$400 billion in e-commerce exports. India's share of world trade is very low and needs to be pushed up to 7-10% says Commerce Secretary Sunil Barthwal. ...

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The choice of new Federal Trade commission chairperson shows that president Biden is making a complete break from the Obama era White House and the favor Tech in Silicon Valley had under Obama, says this report in the WSJ. Antitrust probes by Justice Department and FTC are expected to limit power of tech companies. Ms. Lina Khan is new head of the FTC. Biden says "its just wrong" that Amazon pays little in federal taxes. This report says Mr. Obama feted Silicon Valley at a White House festival called "South by South Lawn."  And that 80% of the 334 people registered to lobby for Apple, Amazon, Google last year previously worked on Capitol Hill or the White House. 

Mr. Biden's Families plan and Jill Biden's commitment to education are more in line with the heritage of FDR and Harry Truman, even Eisenhower, presidents who fought on behalf of the working men and women of America.

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Disney world faces tough time operating in Florida and other countries as the pandemic throws up many hurdles. The coronavirus surge in Florida takes place just as Disney operations restart in Florida July 11 complicating life for the company. The entire Disney business model is up for huge uncertainty and will never be the same. Disney reopening is being questioned by the public, and the sight of people entering the theme parks are jarring when one sees the huge surge in cases in Florida and numbers of cases per day of 10,000 to 15,000.

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Fewer than 2% of Pakistanis pay income taxes and some of the powerful landed elite and industrialists pay little or no income taxes. The result is that the government is short of funds to finance needed healthcare and education. This leaves more of these tasks for the mosques and international donors such as the Saudis, and with it brings support for militant groups. Pakistan is dependent on IMF help for its financing needs and the IMF has offered $11 billion in loans. $7.6 billion of this was transferred. But further loans were held back by the IMF since May 2010 till Pakistan made economic reforms in taxation and other areas such as energy subsidies. The US supports this effort. The government's recent effort to raise fuel prices puts the burden on the poorer sections of society. The result was deeply unpopular and the government was forced to withdraw the price increases. This was the only way to maintain the support of coalition parties in the government