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Researchers Rauh and Novy-Marx, estimate that states in the U.S. have pension shortfall of as much as $3.4 trillion, and the municipalities have pension shortfall of $574 billion. Seven states are expected to exhaust their pension assets by 2010, and half will run out of money by 2027. Several states have promised annual payments of 30% of tax revenues after their pension funds are exhausted.

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This WSJ editorial says the Indian government will have to do more to increase the growth rate. Rising inflationary pressures at 5% for core inflation are still present, with inflation in food prices running higher at 10%. Which may be the reason after a cut of 0.5%, Reserve Bank of India Governor Subbarao stated this would be all the country should expect for some time.

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The leaders of the Libyan National Council- only 10 members of 31 members have been announced so far- come from various backgrounds. This includes a former Justice Minister, Mustafa Jalil. Issawi, a former ambassador to India, and Jabril, the head of the country's Economic Development Board. This includes men from different tribes in the western part of Libya, to get the broad support needed, and international recognition.

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Portugal sold 1 billion euros of 12 month Treasury bills at an average of 4.331%, up from 4.057% at the previous offering on March 2, 2011. Moody's downgraded the country's rating by two nothches to A3. Analysts say that these higher funding costs will lead to a bailout for Portugal. The yield spread between 10 year Portuguese and German bonds is now at 4.35%.

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The supply of shale oil in the U.S. is changing the landscape for Mexican crude exports to the U.S. especially light Olmeca crude. Mexico's exports of crude oil declined to 881,000 barrels a day in 4 weeks through Jan 10, compared to 1.8 million barrels in Feb 2013, according to the Energy Information Administration. The Keystone Pipeline from Canada could also impact Mexico's exports.

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A slowing economy is expected to worsen the situation for nonperforming loans at India's banks. At State Bank of India nonperforming loans are at 5.7% on total loans at June 30, 2013, increasing from 5% the prior year. Standard & Poors figures show the ratio of nonperforming loans increasing sector wide from 3.4% in March 2013 to 3.9% in March 2014 and 4.4% in March 2015.

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Whats it like looking for aluxury car in this market. Paul Sullivan visits dealers of Audi, Benz, Rover and BMW. He doesn't find luxury car dealerships making good deals available even with the drop in sales. Leasing incentives and dealer cash are two areas where customers can reduce the price paid. About 10% of the price of aluxury car may be considered as incentives.

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With a new corporate board in place the government is planning to sell a 51% stake in Satyam to a private bidder. Satyam's capitalization on the New York Stock Exchange is now $600 million down from $7 billion in May 2008. Spice, a tech firm, Larsen and Toubro, Mahindra and others have expressed interest. One estimate of cost to settle lawsuits is $440 to $840 million.

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Wholesale price inflation reached a 13 year high of 11% as India faces steep rises in the price of food and energy. The government's recent decision to remove some energy subsidies increased energy prices by about 10%. The central bank raised its key short term lending rate by 0.5 percentage points to 8.5% and increased the amount of cash banks must keep in reserve.

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Tough terms and invoking of a systemic risk clause in banking law by Paulso to dictate terms to banks was the right call say analysts after all the dithering and missteps. It will lift the Tier One capital ratio of a bank like Chase JP Morgan from 8.3% it forecast as of Sept end to over 10% and will give a sizable boost to all bank ratios.

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Efforts to control out of control oil production by the Saudis and Russia as oil prices fall to $22. President Trump says he is considering tariffs in this situation to raise the oil price. He is also talking to president Putin and Prince Salman in an effort to moderate the decline in oil prices. The U.S. seeks to protect its oil industry which needs a higher price to operate profitably. One way for the U.S. to do this is to use its own oil to help the U.S. oil industry and not to take in any foreign oil. Another way is for president Trump to get the Saudis and Russia to make cuts in oil production and reach an agreement on supply of oil into world markets. During the early weeks of the coronavirus health crisis the impact on the world economy and demand was underestimated by both Russia and the Saudis. Russia depends on oil exports for one third of its budget and the Saudis have to cut 30% of their budget for ministries because of low oil prices, imposing hardships in both countries. ...

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Japan's 38 year old Environment Minister Shinjiro Koizumi sets himself up as a role model by taking two weeks off as paternity leave over 3 months after the birth of his first child.  Mr. Koizumi says in a country where paternity leave is not common: "I hope my child care leave will serve as a spur for everyone in the Environment Ministry to take child care leave without hesitation and advance a style of work in which that is easy." Japan's Shinzo Abe government encourages men to take childcare leave, as this is part of the campaign to get more working age mothers into the workplace. In Japan eligible employees can take upto 52 weeks off of parental leave at reduced pay, accordoing to OECD. The government hopes to get 13% of fathers to take paternity leave in 2020, compared to only 6% in 2019. One reason for the low rate is culture in the workplace- most employees fear bosses and colleagues do not think favorably of this. Making this culture change is the difficult part. ...

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European Union countries reopen for travel this summer. A new travel pass or digital Covid certificate is approved to promote freedom of travel as more people get vaccinated. About a third of people are vaccinated for first shot in France and about 40% in Germany, which means in coming weeks they will have the second shot and enough antibodies to make a return to normal life possible. The EU has negotiated this time with Pfizer for 1.8 billion doses and is building enough vaccine supplies. For the first time governments are stepping up with plans and resources allocated - in India the government now has plans to create supplies of 2 billion doses by the end of the year. This means there is new hope if the vaccination is accompanied by efforts to build booster shot supplies this time planning ahead. Managing the risk of those who are vaccine skeptical remains a problem to be tackled. Masks and other essential precautions also need to be followed in crowded spaces as this was neglected where there was a second or third wave. Public education for this is essential to better manage the pandemic. ...

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India is a major partner for Africa in the areas of energy and healthcare. India is a critical partner for Africa during the coronavirus pandemic in providing medical supplies and maintaining the critical supply chain. Indian oil and gas firms have invested $7 billion in Mozambique. India is Africa's third largest export market and India has $54 billion in investments in Africa. Foreign minister Jaishankar called India a reliable partner for Africa interested in developing the region. In fact Gandhi first started his nonviolent struggle in South Africa on behalf of miners in the region and fought for rights of African and Indian people in British South Africa. As a leading member of the British Commonwealth of nations India has a long history of ties with South Africa, Kenya, Tanzania, Nigeria, Ghana and other former parts of the British Empire. Indian workers and merchants played a large role in development in Africa after and during British rule. There are also older ties with Portuguese ruled Africa (Mozambique and Angola) with Portuguese settlements on the east coast of India. The Indian Ocean ties go back to the 15th century. ...

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Data from India in a large study shown in Science magazine show useful findings. Only a small number of people cause the wide spread of the coronavirus. This study covers the two southern states of Tamilnadu and Andhra Pradesh with total population of 128 million. Contact tracers in the 2 states reached about 3 million contacts for the 435,000 coronavirus cases. Researchers analyzed data from 85000 of these cases where enough data was available with 600,000 contacts. Some interesting findings are- About 5300 children infected 2500 contacts among other school age children showing children in schools can spread the virus. About 5% of the people account for 80% of the infections detected by contact tracing. 71% of the people did not seem to have transferred the virus to someone else. Median hospital stay is only 5 days much less than in the U.S. The number of deaths in India is much smaller than the U.S. less than 100,000. 5.2 million people out of 6.2 million people have recovered.       ...

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On October 28 France reported 36,000 daily coronavirus cases. French president Macron announced a new lockdown starting October 30 that last till December 1.  Under this second lockdown people can leave home only to go to work, to go to school, to give assistance to loved ones, for essential shopping and for 1 hour of physical exercize. People will have to show documentation when leaving home. Travel between regions is banned. Bars and restaurants and nonessential businesses will be closed. Universities and higher education will be done online. Schools will remain open, essential businesses will remain open. Most public services will be open. Factories, farms and construction sites can continue to operate. There will be extensive economic support for business and people. Small businesses will have access to 10,000 euros per month of assistance, employees get short term work assistance, and people having trouble with rent receive assistance. About half of intensive care beds are now taken in France. And Macron said transferring patients to other regions will not be possible as the virus is everywhere. ...

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Anti-trust challenges to the Apple-Google duopoly in the U.S. and Europe. For years the regulatory process did not work as intended to maintain competition and open markets. In 2020 after years of neglect of proper regulatory functioning, fines of up to 10% of revenues are put in legislation for online harm or anti-competitive behaviour. Regulators oce seen as captive to special interests, moved cautiously in the beginning, and are now following public opinion. The bill in Europe could take years before it is passed in the cumbersome lengthy legislative processes of the European Union. Legal processes could take years. During and after the pandemic a complete reassessment of priorities as a society both in the U.S., Europe and other nations needs to happen before capital investment can be directed into infrastructure, health and education, as tech has reached a point of diminishing returns. With a redirection of capital to vital needs of society and the national will to maintain open competitive markets that goes with a change in popular perceptions of what is good and important much progress can be made. ...

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How financing for ambitious infrastructure and Atman Nirbhar Bharat (self-reliant economy) development is being financed in India is explained here. The central bank acting as debt manager for the government of India is pushing government securities to trade in lots of 5 crores or more, seven crores being about 1 million dollars. This is now being traded among commercial entities. These are essentially 3 month, 6 month, and 12 month treasury bills, and long term debt instruments for the government that run to maturities of 5 to 40 years. Retail investors are being provided opportunities to participate in a different pathway. Currently institutional investors such as banks, mutual funds, insurance companies are major participants.The government needs 1.2 million crores or $175 billion from the financial markets to fund its ambitious capital expenditures for 2021 financial year. To do this it turns to financing such as government securities. Higher demand for capital leads to higher interest rates. The RBI and the government want to keep interest rates down and one way its to broaden the base of investors for government securities which it is now doing. ...

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Women feel overwhelmed with housework during the pandemic. About 80% of women feel responsible for house work compared to 28% of men, according to a NYU and U Penn study. On average women do one and half times the house chores compared to men. This difference is wider when looking at households where men do very little of the housework. The author of "Fair Play" a book about dividing housework says women are burned out, stressed and full of rage about the way household chores are handled. The pandemic has seen a further deterioration in the amount of time men spend doing household chores, according to the Bureau of Labor Statistics, creating a situation of tension. As men have worked from home during the pandemic the once invisible labor of women is now in plain sight. For women who have quit their jobs and looking for a way to get back to work there is an additional element of frustration. WSJ looks at ways in which men can make the changes to create a healthier situation at home, and reduce the tension. ...

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Abiy Ahmed, Ethiopia's leader for less than 2 years, is a courageous choice for the Nobel Peace Prize in 2019, says the Guardian. He has accomplished much in a short time with the peace arrangements with Eritrea, ending a 20 year old war, and opening up dialogue and discussion in the country by lifting bans on opposition groups. Half of the cabinet is female, and the head of the election commission an exiled dissident.  Yet the Guardian is cautiously optimistic because the change is sudden and dramatic, it needs to be consolidated for the long term. The Ethiopian People's Revolutionary Democratic Front appointed him as leader to make these changes. What the Nobel Prize COmmittee has done is to recognize the hope that this brings to Africa, torn as it has been by recurring wars and ethnic conflicts for  way too long after the scars of colonialism. Can the positive changes in Asia provide new inspiration to Africa that this can be overcome and modernization, improvement in the lives of people happen as everyone each on his own account takes personal responsibility.   ...

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Prime minister Ranil Wickremasinghe has assumed the finance minister position as Sri Lanka completes one phase of negotiations with the IMF. The IMF says "Since Sri Lanka's public debt is assessed as unsustainable, approval by the Executive Board of an IMF supported programme would require adequate assurances that debt sustainability will be restored." Sri Lanka facing lack of capital to pay for essential energy and other food needs suspended payment on nearly $7 billion foreign debt repayment due this year with action taken under a new central bank governor. About $25 billion is due for repayment by 2026 and total debt stands at $51 billion. The IMF comments come after reports that Sri Lanka Monetary Board at the central bank and finance ministry in 2021 failed to address the debt sustainability issue even though the IMF in April 2020 had advised Sri Lanka to go for restructuring. Discussions IMF says "focused on restoring fiscal sustainability while protecting the vulnerable and the poor, ensuring the credibility of the monetary policy and exchange rate regimes, preserving financial sector stability, and structural reforms to enhance growth and strengthen governance." ...

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Germany's Economy minister Zypries warned that Germany would take legal action by taking the case to the World Trade Organization if president Trump imposes tariffs above that allowed by WTO rules. She said this before a meeting at the White House between president Trump and Chancellor Merkel. The U.S. is Germany's largest export market with 107 billion in imports and the U.S. exports 58 billion euros of products to the U.S. Zypries accepted that the large trade surplus of Germany was "a problem," but that America "needs our machines and industrial plants" for the time being. Germany has insisted that it does not provide unfair advantages to its companies, and that German companies were simply more competitive. Trump has focussed largely on China for anti-competitive practices, though he mentioned BMW by name during the campaign. In the last 2 years the euro has depreciated significantly against the dollar giving German companies competitive advantage, largely as a result of the ECB- in opposition to German economic policy- trying to stimulate the economy of other southern eurozone countries such as Spain, Italy and France. ...

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Reports suggest voter turnout of young people 18-24 was close to 70%. With most of the new voters, about 2 million 19-34 year olds registered to vote in the weeks before the election according to the Electoral Commission, drawn into politics by the simplicity and style of Labor leader Corbyn. One voter says young people voted because Labor did not sneer at them, recalling the negative tactics employed in the campaign and the likability of Labor leader Corbyn because he refused to respond. The National Union of Students and organizations such as UpRising, Hope Not Hate, Bite the Ballot, pushed young people into involvement. The election for students was more about the impact of Tory cuts to education, health, and other services, and about the future for generations to come. Students were deeply upset about the results of the EU referendum. The result is that in places where students were predominant such as Newcastle East and Central, Manchester Withington and Central, Cambridge and Canterbury, the turnout jumped  to give Labor wins in the north of England, and in London. ...

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Betsy McKay reporting from Harper, Liberia, gives this exceptional report on the shattered health system of Liberia and how the country is coping following the Ebola Virus epidemic. The dilapidated poor state of health facilities in Liberia, and in neighboring Sierra Leone and Guinea, have made these areas especially vulnerable to the spread of Ebola Virus. With pictures and details about the lives of ordinary people McKay brings to life one of the poorest regions in the world, racked by years of war and neglect, showing people struggling to find their way with minimal health care. Tabeh Freeman, a professor of public health at William S. Tubman University in Harper, Liberia, says Liberia cannot cope if another epidemic takes place, with such a poorly equiped and broken health system. Liberia, Guinea and Sierra Leone estimate the need is for about $1.47 billion in the next 30 months to build and equip a new health system. The World Bank and other donors have come up with $1 billion for Ebola recovery. A particularly urgent problem is to see that adequate funding goes to build the infrastructure for the health system and to train people to provide health services....

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A new foreign investment law passed by the Chinese People's Congress is designed to address concerns of western companies facing problems operating in China. This includes unequal market access, forced technology transfers, unfair treatment in public procurement. It was passed in only 3 months after the first draft was debated showing the importance Beijing places on the bill. Its a step designed to help in the trade talks with the U.S. about leveling the playing field. China amends its intellectual property law and introduces a punitive damages "mechanism" so that infringements are fairly dealt with. The new Chinese law replaces three foreign capital laws passed between 1979 and 1990, and is a unified legal standard for foreign investment in China. It eliminates the requirement for foreign companies to transfer proprietary technology to Chinese joint venture partners and protects against "illegal government interference." The European Union Chamber of Commerce says Article 40 still allows for"political issues to influence investor-state relations." Experts say this is a small step in the overall effort to level the playing field. ...