LyrArc Article Gist
Tesla Motors delivers 10,350 vehicles in the 1st quarter 2015. This is a 55% increase over the same quarter in 2014. The target set by CEO Elon Musk of Tesla Motors is for deliveries of 55,000 in 2015, and reaching 500,000 by 2020. The new model Tesla Model X sport utility vehicle comes out in the second half of 2015. Tesla's expenses are going up rapidly with the higher sales, especially for a global supercharger network in North America, Europe and Asia, to meet new buyer concerns about the infrastructure. Capital expenditures budget for 2015 is $1.5 billion. Future expenditures include a $4-5 billion plant to make electric batteries. Tesla says it will not be profitable till 2020. Tesla is using attractive lease deals to overcome buyer resistance at a time of low gas prices. It is cutting back on plans for China. Tesla share price on April 2, 2015 was $191. This gives it a dizzy $24 billion capitalization, about half of the capitalization of GM at $58.8 billion in stock market capitalization, and Ford Motor at $63.4 billion. ...

LyrArc Article Gist
Turkey's finance minister Simsek praises the independence of the central bank, as prime minister Erdogan and the Economy minister Zeybecki put political pressure on the central bank to cut interest rates. Erdogan says the half percentage cut in rates to 9.5% is "a mockery of this nation." Governor Basci of the central bank has said in the past that such calls are part of Turkish political culture and the bank remains independent. Inflation is high at 9.38% and expected to reach 10% in May 2014. The central bank forecast is for interest rates at 8.33% by the end of 2014. India, Turkey, Indonesia, Brazil and Russia, face high inflation and depend on capital inflows for growth. Analysts say investors are likely to reduce Turkish assets if Governor Basci is forced out. For emerging markets political protests in Turkey, Russia (with the added volatility created by the Ukraine crisis), India, and Brazil, have led to capital outflows and increased uncertainty. The situation is reversing itself in India with the election of a business friendly government and in Indonesia following the recent election....

LyrArc Article Gist
Scott Sperling, co-president of THL Partners, one of the oldest private equity firms, says rather than be anticapitalist the Obama administration is capitalism at work, as the restructuring is rebuilding two auto companies through bankruptcy by reducing unsustainable legacy obligations and making the bankruptcy process work right for these two companies. It also helps these firms get a new start. The process of "creative destruction" that helps make capitalism work is put to work in an enlightened way so there is creation as well as destruction, destruction through the tough choices that all stakeholders had to make, and creation through the new structures that are coming up. Preservation also works here through keeping what was good in these firms, which are the employees who had no part in management's mistakes, and workers who may be just as badly trapped in union ways. Scott also explains why the government's offer of 10% ownership shares to debtholders is fair, considering that without the government's money Chrysler would be worth little....

LyrArc Article Gist
The new plan of the Obama administration in August 2016 to tackle climate change is to cut power plant emissions of carbon dioxide by 32% by 2030 from 2005 levels. This will increase the energy from renewables to 28% of the total by 2030 from about 13% in 2014. The power industry was given more time to comply by shifting the first year to begin complying to 2022 from 2020. The final rule will also provide for generating more energy from nuclear power which provides 20% of the electricity, and which will help reach the 32% target for cutting emissions by 2030. It will also give more flexibility for the shift to natural gas from coal by giving credits towards compliance for projects starting early, rather than mandating a large shift early.

LyrArc Article Gist
More than 30 states in the USA are facing budget deficits totaling more than $127 billion over the next 2 fiscal years. A look at how Mississippi Governor Barbour has tackled this issue. Barbour has cut the state budget 5 times, including education, mental health and other areas being cut by 10%. Barbour has access to $2.6 billion in stimulus funds from the federal stimulus, which prevented deeper cuts, and he signed into law 2 tax increases. Now Barbour feels he has reached a limit to the effectiveness of budget cuts he can make across the board, and he will have to look at restructuring some things. 2012 is going to be another tough year, as state tax revenues continue to be hurt badly because of the economy.

LyrArc Article Gist
Kon Wen-je wins the mayoral election in Taipei, Taiwan, by 57% to 41% over a Koumintang party candidate. The Koumintang party prime minister resigns. The vote is seen as a repudiation of the closer trade ties to China pursued by the Koumintang. The wealth of Koumintang candidates, the benefits to Koumintang connected businessmen who benefit from increasing trade ties to China, at a time of higher housing prices and increasing inequality, was also an issue in the campaign. Wen-je ran as an Independent candidate supported by the Progressive Democratic Party. This also suggests the direction for the presidential election for 2016. Taiwan has shown increasing wariness over closer trade ties, at a time when protests in Hong Kong have raised questions about China's committment to western democratic values.

LyrArc Article Gist
The yen is 34% stronger than the Korean won since mid 2008, hurting Japan's competitive edge. This affects exporters like Toyota which sees annual profit reduced by $390 million or 35 billion yen for every one yen appreciation against the dollar. The dollar now trades at 88 yen over 30% stronger than the precrisis level in 2008. So how does the new Japanese government see this. Prime Minister Yukio Hatoyama and the Bank of Japan have made comments suggesting that they favor a stronger yen, making imports cheaper to help spark a rebound in consumer spending missing in Japan since the 1980's. This would reduce the dependence on exports for growth, something that severely hurt Japan and Germany when the world economy took a dive late last year in the global financial crisis.

LyrArc Article Gist
Heathrow was built haphazardly as traffic increased since its opening in 1946, with a capacity to handle 45 million passengers at its 4 terminals it was congested and handled 68 million annually. The building of Terminal 5 will ease congestion and increase capacity by 45% making a big difference for British Airways which will operate out of T5 and a big difference in baggage handling ( a million bags weren't ready for passengers at destination in 2006), in the lounges and lounge environments for waiting passengers 2500 at a time) ., and after an annex is built by 2010 passengers will not have to be taken by bus to waiting planes. other airports like Schipol with 4 runways compared to Heathrow's 2 and built with a better layout and plan, and airports in Asia of Singapore Airlines and in the Middle East at Doha are upgrading so BA will only be doing what places are doing. Because the terminal hangups have been costly for British Airways leading to a shrinking of about 20% of its flight network, as it concentrated more on upscale customers, and lost passengers to more efficient airlines., ithe cost will likely be paid off quickly for BA. Demand. is so high at Heathrow that a pair of takeoff and landing spots can cost as much as $50 million and would be going up as Star Alliance and Skyteam member airlines move ito BA's old facilities. Considering the losses from th inefficient setup at the old terminal BA's estimate that T5 savings would cover its cost of 330 million pounds ($660 million) to equip the new building in in the next 10 years may even be understated. Of this 62 million pounds was spent on the new lounges. BA leases the T5 Terminal from Heathrow's BAA owned by Spain's Ferrovial SA, which spent $4.3 billion to build T5. ...

LyrArc Article Gist
The Indian Finance Minister Mukherjee presented his new budget and talked about the new administration's plans for investment and its priorities. The Rural Employment program which guarantees 100 days of work to each indigent family will get an increase in funding to $8.1 billion or 391 billion rupees for this fiscal year. THe goal was set for cutting in half the percentage of the people in India that are poor in five years, which the government measures by calories consumed. The Indian government estimates that 27.5% of Indians were poor in 2005 using this measure. To finance investment government spending will increase 36% and the deficit for the 2009-10 fiscal year will reach an estimated 6.8% of GDP, up from an estimated 6.2% in 2008. Abig part of this spending will be increases in infrastructure spending which will go up from 6% to 9% of GDP by 2014.

LyrArc Article Gist
EU Competition Commissioner, Margarethe Vestager, on a trip to the U.S. to meet FTC and Justice Department officials, says the situation in Europe is different from that in the U.S. In Europe Google has a dominant position with over 90% market share, much more than in the U.S. where Yahoo and Microsoft are competitors in general Internet search. She said about Google following the filing of formal antitrust charges by the EU against the company- "is a successful company because they have good products. But the compliments, they stop when you get the suspicion that there may be an abuse of this very strong and dominant position." In earlier statements Vestager has said that the dominant position in all its ramifications poses "societal challenges." Complaints to the EU Commission originated with Microsoft and smaller companies affected by Google. News Corp, publisher of the WSJ, has joined a group of companies in filing new formal complaints in April 2015 with the EU Commission about Google practices. Google now has 10 weeks to respond to the charges. In the U.S. the FTC also had concerns, with FTC staffers favoring filing formal charges. In the end the FTC decided to rely on Google making voluntary changes to three practices taken up by the FTC- including complaints about "scraping" of content from rival websites, and its restrictions on the ability of advertisers to use competing platforms. Vestager sees the need to get the process moving, as it has dragged on for about 5 years, saying "it is important for us to be more speedy in getting the question out, to be able for Google, for competitors, but most of all for consumers to see our concern." The EU Commission charges about Google favoring its own comaprison shopping service are a way for Vestager to establish a broader precedent, as it looks into other ways Google's uses its dominant position to favor its own products and services....

LyrArc Article Gist
The trade figures for Dec. 2012 show the deteriorating picture for Japan's exporters. This supports the reasoning of the new LDP government of Shinzo Abe to keep the yen down to support exporters. Figures for the full year show Japan was able to maintain a current account surplus of 4.70 trillion yen only because of investment income from overseas. The merchandise trade deficit for 2012 was the highest since 1985.

LyrArc Article Gist
Friedman reviews Acemoglu and Robinson's new book, "Why Nations Fail." Acemoglu says that nations fail when wealth and opportunities are concentrated in the hands of few people, that a condition for societies to succeed is to create opportunities for more people. For this to happen it is important to create inclusive political and economic institutions. This is an important insight, but for Western society this is an insight as old as Adam Smith when he pointed out the importance of this aspect of western societies after the feudal period in his "Wealth of Nations." For Smith it was the failure to create inclusive societies that led to the gradual unravelling of societies in the river valleys of the Yangste and the Ganges, in China and India, of increasing poverty and the gradual disappearance of what constituted the middle class in India and China. Chapter 8 titled "Of Wages and Labor" in the "Wealth of Nations" makes specific reference to this.

LyrArc Article Gist
A strong U.S. jobs report in July with 255,000 new jobs, unemployment at 4.9%, provides positive sentiment going forward. The Federal Reserve is likely to be wary of raising rates because businesses are hiring but are not making the investments needed to spur economic growth, which remains at about 1%. The labor force participation rate is now at 62.8%. The measure of unemployment and underemployment shows a better picture of how different age groups are faring including the 25-54 years age group- this is at 9.7% in July 2016, it was 9.6% in June 2016. This measure shows those working part time because they cannot find a full time job. The market today is stronger for those with the right job skills, but not across the spectrum for all Americans, only setting the stage for further progress and increasing investment as confidence improves.

LyrArc Article Gist
Obama's State of the Union address in 2014 focusses on increasing the minimum wage, reducing inequality and creating opportunities for the middle class. It marks a shift to doing things by executive order wherever possible to avoid protracted debates and delays by Congress.

LyrArc Article Gist
Jill Biden teaches at Northern Virginia Community College. She wants to continue her job teaching community college students helping them prepare for 4 year colleges, even after Mr. Joe Biden becomes the new president of the U.S.  This story of Jill Biden in The Times is exceptional in giving a vivid picture of the person closest to the new U.S. president. Both the Bidens, Joe and Jill, come from working class families in the northeastern U.S. Mr. Biden's life is marked by a single event that has affected his whole life the death in a car accident of his first wife Naomi in December 1972 when he was running for U.S. Senator in Delaware. He won that election becoming the youngest senator in U.S. history. The family retained high ambitions for Joe, hoping that he would become president. Jill met Joe Biden during this campaign and she married Joe in 1975. Jill had spent 13 years of her career teaching English in secondary schools, and the past 27 years teaching in community colleges, including the eight years when Biden was Vice President. Along the way she studied for 2 Masters degrees and a doctoral degree. Her dissertation for the doctoral degree was on the topic- Student Retention at Community Colleges: Meeting Student Needs. Student dropout rates are high about one in three in community colleges dropout.  It is a sign of the misplaced priorities of today that Dr. Biden takes pride in her degree and many do not think this is important enough a topic for a dissertation. Not only her education and hard work studying for advanced education makes her a unique asset, there are other parts of her character that make her exceptional and right for the times. Jill Biden entered a family that in some ways after Naomi's death was broken. The were two children surviving the fatal car accident in 1972, Beau and Hunter. This story shows how she handled this in a way that required extraordinary serenity and composure. There was the ambition of the family. There was the memory of the accident and Naomi. There was the cynicism about her passion for education in fashionable Democratic party circles out of touch with the roots of the national character in education and in libraries starting with Ben Franklin and Jefferson. With president Biden entering office at a time when the U.S. as a country is broken by the very neglect of education, healthcare and working class Americans, Jill Biden at 69 years has the experience, vigor of spirit and character needed today.   ...

LyrArc Article Gist
This analysis of coal use using graphs shows a clear move away from coal in the world, except for two growth markets China and India which account for 60% of the increase in coal use since 2008. India has gone black in its shift to increasing use of coal. China has begun the shift away from coal to address the smog over large urban areas, poor air quality and health impact of coal use. Because China used five times the coal used by India in 2017, the overall impact in China and India is showing a shift away from coal to hydropower, other renewables including solar energy. It is likely that India will make the shift following China's example in the future. 

The trend is clear when one looks at the incremental terawatt hour and where it comes from. The shift is clear to renewables, hydropower, and non fossil uses in the rest of the World and China which account for most of the coal use in the world.