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Toyota showed a net profit of 290 billion yen or $3.71 billion for its fiscal first quarter. With its sharp rebound Toyota keeps it forecast of net profit of 760 billion yen, operating profit of 1 trillion yen, and sales of 22 trillion yen for the fiscal year through March 2013. Toyota set its annual production for the calendar year at 9.76 million vehicles, an increase of 23% over the prior year. By comparison General Motors showed second quarter profit of $1.85 billion, a decline of 38% from the prior year quarter, and Ford at 1.04 billion, a decline of 57%, with both companies showing losses in Europe. Toyota has smaller European sales as part of total sales. In the U.S. market Toyota expects market share to reach 14%, an increase of 1.1% from 2011, according to Takahiko Ijichi, senior managing officer.

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A new bipartisan plan on comprehensive immigration reform with support from Senators Graham, McCain, Schumer, sets forth principles for legislation. This includes Democratic requirements for a pathway to citizenship for 11 million illegal immigrants and Republican requirements for stronger enforcement. A separate bill sponsored by Senator Orrin Hatch would expand the H1-B program for skilled immigrants and increase the number of green cards. Senator McCain said on a television news show: "We can't go on forever with 11 million people living in this country in the shadows in an illegal status."

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Intervew by Deborah Solomon with former Clinton era SEC Commissioner, Arthur Levitt, captures the mood of the public in the USA. Super skepticism and disbelief about public servants, including those of some stature in the past like Levitt. The questions are suggestive of the angst and loss of innocence, and willingness to ask the straight question right out. Solomon tries to get Levitt to take responsibility for what has happened under his and others watch. What do you feel Mr Levitt about the American economic landscape and see 401 K's going up in smoke? Have you changed your spending habits? Are you kicking yourself for not having caught Madoff at his game? After you left your SEC post what led you Mr Levitt to become an adviser to the Carlyle Group, which had ties to the Bush family and defense contracting? This question grates on Levitt. He responds that it is such a Michael Moore like exaggeration, that he was an adviser to the Carlyle Group before he went to Washington. And then Ms Solomon asks the question straight out, saying that frankly she can't understand why the SEC culls its leaders from the world of high stakes investment, when there is this "capture theory" that states that regulators get co-opted by the industries they regulate if one isn't very careful. And the response from Levitt is evasive as he talks about the patriotism of the 4,100 people who served with him at the SEC. Ms Solomon isn't accepting this and calls it boosterism, telling Levitt he hasn't answered her question. Levitt tries another escape route and talks about the European system of gray bureaucrats running government agencies forever, and how refreshing the American system of repotting private sector talent to bring fresh ideas is. Solomon's steers the dialogue in another direction. She reminds him about his father Arthur Levitt Sr. , who was the New York State Comptroller for more than 20 years. Yes, says Levitt Sr.'s son, his father was passionate about defending the interests of pensioners, and his mother was a schoolteacher for 38 years. That gets Levitt reminiscing about his growing up years with his grandparents in Brooklyn, when his grandfather would check 75 used bulbs to see if one worked before using a new one. What has thrift got to do with this Solomon starts to think, after all Levitt is an adviser to the Carlyle Group. Put that in your report, yes, says Solomon, I will. Ms Solomon is getting right down to the point by now. Levitt can reminisce about the thrift about the old days, but the public wants answers. Do you feel you should apologize, does this keep you up at night? Levitt's response: not really, I'll try not to think about it. See the link to Rubin's letter of resignation from his position at Citigroup to CEO Vikram Pandit. Rubin another Clinton era adviser and Treasury Secretary, is being asked similar questions....

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16.3 million acres wildfires in Canadian West burn in August 2025- the smoke reaches midwest and northeastern US. Wildfires in San Luis Obispo County in California 2025 bring smoke to Los Angeles.

The Air Quality Index in Detroit, Montreal and Toronto reaches levels of 147, 144, and 158, it reaches. On August 4, Cairo was 122, Dubai 107, Kolkata 112. It shows how these fires are affecting air quality in the US and Canadian cities. Northeast New York Boston will be affected by Aug 8 Fri as it eases up with winds in Detroit, Toronto by Aug  6 Wed.

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Redford's "Downhill Racer" and the Sundance Film Festival's origins for low budget films that can be produced by independent producers. Redford learned from his experience in this early film and set about setting up a new location for struggling filmmakers to experiment in filmmaking at Park City, Utah. This was a period in which Redford bought land in Utah's mountains away from the Los Angeles and Santa Monica of his childhood days. With more of the city going into concrete and less green space Redford felt he could not relate to this sprawling city of highways and congested living.

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It will take time to rebuild parts of rural America that were in decline for decades, neglected by politicians of both parties, and are now seeing big investments. Mississippi County, Arkansas is one such rural area where US Steel and other steel makers are putting in new plants to make 12 million tons of steel a year. Only northwest Indiana has larger steel manufacturing plants. Subaru of Japan is located in Indiana. Here in Arkansas only 38% of workers live near the plant as it has seen a lot of decline, most commute from neighboring states or work from RV's.

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Germany to introduce questionairre for 18 year olds and mandatory physical exam for voluntary military service in 2026. Defense Ministe Pistorius said he was following the practice of making military service attractive and popular, with better pay and conditions, followed in Nordic countries.

"Other European countries, especially Nordic ones, have shown that the principle of voluntary service combined with attractiveness works — and I expect it to be the same here. The number of applicants is increasing, the recruitment figures are rising."  The aim is to recruit 20,000 new volunteers by 2026. They will receive €2,600 ($3,025) per month before tax.

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Prime minister Renzi of Italy resigns after defeat in a referendum to change the constitution. Renzi had said he would resign if there was a "no" vote on constitutional changes to make it possible to pass further reforms. The results show the "yes" vote with about 41% of the vote, and 59% saying "no." About 65% of 47 million registered voters voted. The referendum called for cutting the size of the upper house Senate eliminating some constitutional bodies, and increasing powers at the federal level. Renzi may have made the mistake of making the vote for or against constitutional change a vote for his democratic left party, and not understanding the depth of public skepticism of established parties. Parties such as 5 Star M5S  have appealed to a public skeptical of how economic reforms would help bring more prosperity to the middle class, and a desire to try out new options. Virginia Raggi of M5S was elected mayor of Rome recently and Renzi's referendum move similar to the way prime minister Cameron moved for a referendum on an old issue of euroskeptisim, may have failed to grasp grassroots changes. The irony is that in 2014 elections to the European parliament Renzi's democratic left party won 40% of the vote and was seen at the time as a success, and the same size vote in the referendum is seen as a failure. In a referendum all other parties votes are added together from right to left parties and new parties. In the Brexit vote the Labor party "no" vote including Labor voters who never voted added to the votes of Brexit supporters and the newer UKIP party giving Brexit the slight edge needed. The singular feature of the trend is that working class voters are combining with right leaning voters to upset established parties, in the midwestern U.S., in the north of England, and in the north of France. In the medium to long run this means the left parties are likely to move to realign themselves with their base of support. ...

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The changes that have come over president Obama include a wearing off of the enthusiasm and sense of new beginnings of 2008. From many possibilities to a a sense of limited possibilities during the second term. From the excitement of a new and novel candidate as Ivy law school "community activist" and able story teller of mixed race upbringings originating in Kenya, to the billion dollar fundraising candidate and mixed record of the second term.

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President Trump announces the U.S. withdrawal from the Iran Nuclear Agreement of 2015 signed by president Obama. He calls it a bad deal and "a one sided agreement, that "didn't bring, calm, didn't bring peace, and never will." Since the signing of the agreement the conflicts in the Middle East have increased and relations between the U.S. and Iran have deteriorated under the Trump administration. During the election campaign candidate Trump and Republicans had criticized the deal and deal never gained Republican support. It was also not initially supported by France which called for stronger safeguards on nuclear weapons development. The appointment of John Bolton as National Security Adviser, and Mike Pompeo as the new Secretary of State, who were strong critics of the Iran nuclear deal also influenced president Trump. He was also influenced say aides by the success of his policy with North Korea of imposing strong bargaining pressure with tough sanctions on North Korea including Chinese sanctions, which led to the talks between North and South Korean presidents and the planned Trump meeting with Kim Jong-Un of North Korea. Iran's president Rouhani says Iran will stay with the agreement as the EU countries Germany, France plan to support the agreement. This could also leave an opening for future talks with Iran on a new peace agreement as  president Trump talked about Iranian people deserving a better deal at the end of his 11 minute announcement. As Stephens points out in a op-ed in the NYT Iran's economy needs the removal of sanctions so that focus could shift to economic development, as the lifting of sanctions have yet to result in increasing living standards and building infrastructure neglected during the sanctions years. ...

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WSJ reporter Monica Langley provides a glimpse behind the scenes of how Donald Trump comes up with his attacks on rivals, and statements on immigration, terrorism, refugees. Trump pays close attention to what is riling voters on any particular week, but other rival politicians are not willing to say. He looks for what resonates with the public, and in today's environment where politicians are cautious, careful and plodding, this strategy works. Donald usually puts down a few points on his private plane, looks at reports from campaign staff, yet makes all the decisions himself on what and how to say it. His memory helps, he says. And he has a flair for words, sounding uncouth at times, but yet choosing words carefully enough to sound reasoanble to his audience. In Jan 2016 this approach has worked for Trump in the Iowa and New Hampshire primaries, stalling progress by rival Ted Cruz, and holding back other rivals. Yet this approach has its risks as the primary season progresses. One of the changes in the Republican party politics in 2016 is the emergence of two candidates Donald Trump representing the white working class, and Ted Cruz representing evangelicals, who are both strident and willing to take strong positions on issues in striking contrast to leading Democrats. Trump on China, immigration, refugees, and Cruz on taxes, cultural issues for evangelicals, IRS, Affordable Health Care Act, and both candidates on terrorism. ...

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Russia invades Ukraine on multiple fronts, across Belarus, across its western border with Ukraine, on the pre dawn hours of February 24, 2022. Russian foreign minister Lavrov says "tense and detailed discussions" with US and NATO are still taking place. In talks with the US, president Putin of Russia had demanded that Ukraine commit to not joining NATO. The US insisted that this was upto Ukraine and that the territorial integrity of Ukraine had to be respected. Interventions by Macron of France and other leaders failed to bring the two sides closer. The US and Europe with a reluctant Germany looked at sanctions as a deterrent. This proved to be wrong. Mr. Putin has a passionate view of Ukraine and Kviv's historical role in the formation of the Russian state, evident in his televised address only 48 hours before the actual invasion. Ukraine has shifted between Poland and the Baltic states, Germany on one side and Russia on the other in its thousand year old history. The shift away from Bolsheviks and Communists under the Soviet Union after 1990 changed the relationship of Ukraine with its neighbors once again as Ukraine became closer to Poland and the Baltics, and Germany. Germany remains reluctant to revert to the relationship with Russia that led to 2 World Wars. During the leadership of Willy Brandt and successive German SPD leaders, as well as with Konrad Adenauer and CDU leaders, the goal was to build a good relationship with Russia. Merkel of the CDU went as far as accepting dependence on Russia for 40% of its gas supplies, after shifted out of nuclear energy and supporting a new Nordstream undersea pipeline for gas supplies.  The early reaction on DW.com and German television was one of shock as no one really expected that this would lead to a full scale invasion. Scholz of the SPD the new chancellor in 2022 was not active in forging anew consensus allowing NATO's Stoltenberg who is a former Norwegian prime minister 2005-2013 to frame the response of Europe. Norway's role in European security was marginal for most of the twentieth century. Other events had detracted from bringing active German and American participation in coming up with a framework of dialogue to address concerns of both sides and still build a common ground for peace- Afghanistan, the pandemic in its third year, China's deteriorating one sided trade relationship with America that hurt American workers and manufacturing. As a result China and Germany were essentially absent in building the framework for peace. Afghanistan hasty withdrawal made it harder for president Biden to come up with new approaches to build a common framework. President Macron made some faltering efforts on the fringes even as president Putin focused on the US response and its intentions with NATO on European soil, and declared that it was directly US Russia negotiations that needed to work. With this the whole framework of relations since the presidency of Reagan and the relations with Russia and China come to a close. And a new framework needs to be constructed that draws in India already or soon to be the most populous nation in the world, in an effort to build an enduring new framework. The voices of Eastern Europe need to be heard, yet balanced with the voices from India, China, Germany, Russia, and other countries in Asia, Latin America and Africa that are affected by world events. ...

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Jaishankar on the connection between the Indian and Pacific Ocean region into one integral whole with the emergence of independent nations from the British, French, and Dutch Empires in the region, and the growth of Indonesia, Malaysia, Singapore, Vietnam, Philippines and Thailand. The growth of trade and use of sea lanes for supply chains, modern shipping and logistics, have created sea lanes that stretch from the Gulf and Suez to Hawaii and Seattle. India plays a critical role with the US, Australia and Japan to ensure international law and open shipping lanes for all nations in the Indo-Pacific. Jaishankar also touches on infrastructure developments such as the new Trilateral Highway that connects India's northeast to Burma and Thailand. This opens up ties on land between the three nations with connections into Malaysia and Indonesia. That would enhance the movement open people and goods, and cultural connect that would create a new northeast- southeast Asian connection. It restores what was the long lost connection that India once had with nations from Thailand to Indonesia, and Vietnam to Japan through China. This is the connection that brought Buddhism from India's north east in Bihar and Uttar Pradesh to these countries.  Look East, Act East, the Quad, Indo-Pacific Economic Framework are all ways of saying the same thing of making the East connections the vital ones in India's social, economic and political, cultural life, restoring the connections in which India thrived and existed as one entity. It also brings life to the Gulf countries which are otherwise isolated in a sea of European nations on one side of the Mediterranean and Russia on the other side near the Black Sea that have different historical interests and cultures. This sees the central Asian connections through Afghanistan as being secondary and of less significance in the long history of nations such as India, China, Korea and Japan from the Buddhist era. That secondary connection brought an interruption of the long Buddhism and Vedanta civilization in India, intermittent wars, and the division of the country under the British Empire. It is a natural progression in a long history that seeks to restore the natural and intuitive connections to the Vedanta and Buddhist regions in the East that are part of the Indo-Pacific. These are now integrated with the settlers from Britain who sought to build better and fairer societies based on the rights of man in the new nations of Australia and America. This gives new life and meaning to this vast Indo-Pacific region. The British Empire and the other colonial empires simply bring back an orientation to the period of colonial wars of the nineteenth and twentieth century, which tore apart China and then Japan, and used resources in India for these wars, and which ended with the atomic bomb in Hiroshima and Nagasaki. These wars also leave behind memories in China, Indonesia, Vietnam, Japan and Korea that can only be truly be put behind by looking at Vedanta and Buddhist Asia as it once was from India to China to Japan. And to the regions of Australia and the US that brought new meaning to the modern scientific period and the rights of man in settler societies away from Europe. ...

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This is a story of missteps in retailing that can lead to loss of as many jobs as when large automobile plants close-about 65000 jobs in retail at big box store Bed Bath & Beyond in 2019 down to 32,000 by 2022, and with all stores closing in 2023 all jobs lost. Some of these jobs were replaced with the growth of Amazon in online retailing and warehousing shipment, others permanently lost. Jordyn Holman and Lauren Hirsch of the NYT explain how a major retailer collapses into bankruptcy in 2023. This retail chain started in 1971 thrived on its two founder's concept of building a customer base around a store that piled high the volume of merchandise selection for bedsheets, towels, pillows, kitchen appliances, and offered 20% coupons on brand items. It survived the 2009 crisis and by 2012 its stores were up to 1100 from 350 ten years earlier in 2000. This was a result of 4 acquisitions including Buy Buy Baby and Harmon Stores Its collapse is a textbook case of what can happen. Its financial foundations were weakened by a bond offering $1.5 billion, going into the debt market for the first time.   From its success attracting activist investors and the company according to analysts trying to fend them off. The bond offering was the first step to impending disaster. In 2019 three activist investors won a fight to appoint 4 new board members and hire a new CEO Mr. Tritton from Target.  The big change happening just before the pandemic was the complete change of management with the new CEO. Stores that had made the decisions on what merchandise to buy based on location were no longer allowed to do so. Some stores were closed and there were layoffs reducing employee morale. The big change came to the 20% coupons which was the unique feature of the store getting people back into the store. Coupons were cut back as profits declined. The pandemic introduced new elements of surprise. The supply chains were disrupted, and just at that time new management decided to shift to private labels to increase margins and sales. Kitchen Aid was replaced with private labels. As a result of supply chain disruptions the stores could not be stocked leading to customers moving away, a crisis was brewing. At that very time something concealed the crisis from view. The Biden administration checks to support people during the pandemic led to a sudden increase in sales, a one time spurt. Then as suddenly as the spurt months later a complete dropoff in sales. Management closed more stores, suppliers who were not paid demanded to be prepaid leading to stores being only partly stocked. Bed Bath & Beyond collapsed as its coupons were dropped, its stores poorly stocked, no brand merchandise such as Kitchen Aid, and decisions made at the wrong time including the debt load all taking a toll at once. By the end of 2022 bankruptcy loomed. In April 2023 the company declared bankruptcy after failed efforts to raise additional financing. The same changes also hit Best Buy, another big box retailer, which managed the changes to internet buying by shifting sales to the healthcare sector, and continuing to build on it strengths as a retailer of motivated employees with knowledge of the electronic merchandise. It made it right through the pandemic without the changes in management that happened at Bed Bath & Beyond. ...

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By pulling back from the kind of erratic immigration enforcement in Minneapolis DJT as shown by the WSJ, the administration is closer to getting a deal on the government's budget for passage in Congress. It averts a shutdown. The DHS part is being discussed and voted separately in that deal. In Congress there is more openness to talk about each other's flaws as Chris Murphy leads the Democrats. Tim Kaine says "we can do better" instead of the belligerant opposition to ICE. Lisa Mukowski says it is hopeful because the talk has shifted away from "abolish ICE" to better law enforcement and doing better law enforcement. The WSJ and business have taken the lead on this issue with "de-escalate." Congressis doing more as Republicans are critical and even in DHS Homan is now in charge, the president say "de-escalate a bit," many Republicans including Kristi Noem at DHS and government officials look for ways to do better. In this way Minneapolis has opened up new dialogue so that the American tradition of law enforcement done right that makes people and neighborhoods safe and law enforcement acts in ways that are a role model, the anger and frustration on boh sides is defused little by little in constructive ways, and topics at the heart of the matter are being discussed and sorted out for the first time in years. ...

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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?   ...

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Portugal's new drug policy that emphasizes treatment over criminal prosecution for possession of drugs. To be clear police stop and confiscate any drugs found and drugs are still illegal. Its only that instead of sending offendors to court and jail, the offendors are sent for treatment and community work, and assigned to dissuasion teams consisting of team of psychologists and social workers who work to keep recreational users from getting addicited and help with treatment for others. The Economist reports that this approach is producing better results than the previous system that empasized judicial processes and criminalization for drug use.

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Fiat plans to expand manufacturing in Italy by making the Panda small car in Italy instead of using a plant in Poland. This would expand production by Fiat in Italy from 650,000 to 900,000 cars, with an investment of 8 billion euros in 2 years. One of 5 unions gets 40% of the vote at the Fiat plant in southern Italy that will make the Panda. Fiat had asked for new working conditions at the plant in exchange for its investment and a new social pact with the unions.

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Trade shows and exhibitions for different industries are limping back to life in Europe. One show for camper vans in Dusseldorf, Germany, uses a limited physical event with online and virtual contact as a way to stage a successful event. The new world is one of hybrid shows in 2021 and beyond with digital media and physical activity in the real world mixed in. Europe's cities depend on a large share of their business on fairs. Everything in trade fairs is being scaled down and new ways are being tested.

The CIbus agricultural products fair in Parma, Italy too place is a slimmed down version focussed on a conference on how to relaunch Italy's agricultural and food industries. Masks mandatory and social distancing strictly done. Two auto camper fairs are planned one in Dusseldorf this weekend and one in Parma.

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Cloud computing is a growing $300 billion business, with Amazon a key player having 28% of the market. It competes with Google and Microsoft in cloud computing. Andy Jassy has built the cloud computing business with $51 billion in sales. It generates 10% of sales in the final quarter of 2020 for Amazon but over half the profit. Renting out server space and software to customers is a profitable business compared to online retail. Sales of $12.7 billion in the final quarter of 2020 generated $3.6 billion in profit. And growth a brisk 28% over the prior year quarter.

Satya Nadella ran the cloud computing business at Microsoft before becoming CEO. IBM named a new CEO from this business that revived growth. Now Andy Jassy is promoted to CEO at Amazon in the sequence of new CEO's from cloud computing.

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In some countries such as Tanzania and Chad the vaccination drives have not even begun says this report in the DW.com. A new surge now underway in Africa as cases increase by 30% in June comes at abad time with African vaccination drives stalled. Only 31 million doses adminstered in Africa for a population of 1 billion people. Less than 1% of world vaccine supplies are going to poor countries in Africa and Latin America.

Vaccine companies chose to sell their vaccines to the highest bidders, putting Covax  behind. Aims of Covax are also coming down and watered down to vaccinating 20% or 30% of the population in poor countries, says this report in DW.com.

This means new variants could develop and move back to Asia and Europe, the US in 2022. It means the coronavirus could affect African economies in 2022 and beyond.

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The damage done to India and China by the Opium Agency, and the British East India Company through the forced growing of poppies in northern India and the sale of opium in China. Two wars by Britain opened up China for sale of opium. Britain gained access to the port of Hong Kong as a base for this trade. BBC New gives a new perspective on the situation in Hong Kong and the questions about the rule of law in Hong Kong today by showing the story on the other side, that of China and the Shenzen region which suffered the consequences of British enroachment on China's sovereignty during the 19th century. Young people in Hong Kong today may be oblivious of the history of the region under colonial powers, and how far China has come from the situation of hopelessness of the 19th century.

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In this exceptional piece Galston says institutions such as Johns Hopkins University in the Baltimore area have to do more to integrate their activities with the city in the way Carnegie Melon University and other institutions helped revive Pittsburgh. Pittsbugh suffered a hollowing out of manufacturing with foreign competition, population decline and unemployment reaching 17%. It suffered economic decline in a way that happened in Detroit over the last decade. A concerted effort by the city's political, economic and nonprofit leaders is credited with making Pittsburgh one of the most livable cities, and reviving industry around new innovation. The unemployment rate in Pittsburgh is 5.4%. Galston acknowledges that Baltimore is 63% black, and Pittsburgh 26%, yet race is not the only factor, and Galston points out the need for Baltimore to work diligently to build on its educational and medical technology assets to build a new future for the city.

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Spain's cabinet announced new changes to labor laws to provide incentives to business to hire. Spain has some of the most restrictive labor laws in Europe and high unemployment. The unemployment rate reached 23% in December 2011, and about half of the people under 26 are unemployed. The cost of downsizing is so high in Spain that Spain's representative on the executive committe of the European Central Bank, Jose Manuel Gonzalez-Paramo, says companies prefer to close rather than downsize. The World Bank has singled out the labor laws as one of the main reasons for Spain's rising unemployment rate. New rules will reduce severance payments to 33 days per year of employment from 45 days. Severance packages will be reduced to a maximum of 24 months from 48 months. To encourage companies to hire permanent workers and depend less on temporary workers the new rules say employers must switch temporary workers to permanent contracts after two instead of three years. As an incentive for companies with a maximum of 50 employees to hire young people the rules give a 3000 euros corporate tax break for each new person hired under age 30. If the hired person was jobless he can still collect 25% of previous unemployment benefits for a limited period with 50% of the unemployment benefits going to the employer. Companies having losses for three consecutive quarters are allowed to pay less in severance payments- only 20 days per year of employment. Companies will now find it easier to leave collective bargaining agreements and make deals with their own staff. Luis Garicano, a professor at the London School of Economics, says this is a good step forward. He finds missing from the new rules subsidies to train young and unemployed people given the high dropout rates in Spanish schools. The government approved the rules by decree, but they will be discussed in the Spanish parliament. The government of prime minister Mariano Rajoy was recently elected with an overwhelming majority in parliament. This makes making major changes different from the process in Italy where a consensus has to be established....

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Pakistan is seeking a bailout from the International Monetary Fund. As part of the negotiations the IMF is asking for a cut in fuel and other subsidies. This week the new government of Pakistan under Mr. Sharif increased fuel prices by 17% after removing some of the subsidies. Economic mismanagement has led to a lack of funds to support the economy and import needs. Political instability is making finding solutions difficult.