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The U.S. China trade and tech rivalry continues with the arrest in Canada of Huawei CFO Meng Wanzhou on U.S. request for extradition. The reason appears to be a violation of U.S. sanctions against Iran. President Xi has taken steps in the past to protect Huawei, as a top priority, scuttling Qualcomm's acquisition of NXP Semiconductors NV. The merger with the Dutch Company would have threatened Huawei in its race to dominate 5G networks.

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The Guardian's Moore provides this heart warming story about Nairobi's inline skating community. It is about young rollerblading teenagers. The fad faded in the West, but it is popular today in Nairobi. Donated from the west the Rollerblade brand skates have made their way into East Africa- creating a skating craze. They zoom across at 110 kilometres an hour. Some learn from Google and You Tube videos. It creates a sense of community for young people, who meet with people from different tribes and don't pay attention to ethnic groups in a place where ethnicity is rampant.

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The Economist calls for more attention to efforts to promote growth in Europe and the U.S. in 2011. It describes as nonsense the policy of the European Central Bank to increase interest rates at a time when most European economies are struggling to increase growth. And more so when the ECB is busy buying Spanish and Italian bonds to support Spain and Italy.

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A worldwide trend to shorter term borrowing means that institutions and sovereign governments will compete in the capital markets, as they try to roll over existing borrowing by 2012. The US has $1.3 trillion to roll over by 2012. Worldwide about $5 trillion has to be rolled over, and of this $2.6 trillion is in Europe. With the European financial crisis which started in Greece it is becoming harder for sovereign governments to borrow in capital markets at favorable rates. A former economist of the Bank of England says this is of the highest importance for lending and for growth. The implications are reduced lending by banks to businesses and consumers, reducing output and growth, and limiting reductions in unemployment. It is a big issue say analysts, as debt needs to be rolled over over shorter periods. Moody's study shows new bond issues by banks during the last 5 years matured at an average 4.7 years. The stress say experts is likely to be on the less healthy banks like the savings banks in Spain, Landesbanks in Germany. Stress tests on European banks will be out July 23, 2010....

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Lessons for startup Jive, social networking software for business financed by Sequoia Capital. It did well in the beginning with a number of high profile sales. Then things fell apart with inexperience and a series of mistakes. With $15 million of capital raised from Sequoia in August 2007 discipline started to fall away, bad hires were made in a hurry to speed things up, staff tripled to 150 by the beginning of 2008, and there were a lot of problems with the new software. In October Sequoia went in and fired 25, 3 managers, and cancelled a project. Sequoia Capital held a direct talk in October with executives of its 100 companies, and about 1000 layoffs were made. The presentation was direct, showing a pig with a butchers knife in its head and the slide reading R.I.P. Good Times, saying that for startups it would be the survival of the quickest, the companies quickest to cut costs and be profitable. The sales people just took on as customers anyone who was interested or called. And as the economy worsened and this software was not an essential purchase they cancelled. Now the new sales approach is to say no, and get customers who actually save money from using the product or see some vitally important benefit. The sales person actually tries to find out about a company's plans, its budgets, to see if there is a good fit. Jives at this point is a survivor....

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Bank of England's governor Mervyn King says that there "has been very little reform" in the FSA and the Gordon Brown government's bank overhauls. He said in a speech to Scottish businessmen that "the belief that appropriate regulation can ensure that speculative activities do not result in failures is a delusion." Paul Volcker, former Fed chairman, is of the same view that regulation will not do what is necessary to avert another crisis, that separating speculative activities from normal deposit taking and banking activities is an essential part of reform. According to King, the capital requirements that regulators impose will not be enough as they are arbitrary, and its hard to know how much capital will be needed for an unpredictable crisis. And having "too-important-to fail" banking firms to continue existing, would require a resolution regime. The better option he believes is to draw a line between utility banking with government guaranteeing these bank's socially necessary functions, from the speculative activities that can be left to market discipline. This means breaking up "too big to fail" firms. Conservative party's Osborne, as shadow Chancellor of the Exchequer, sees the need for this separation of banking activities....

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This report from Italy by Jason Horowitz of the NYT, shows the Five Star Movement as having emerged as Italy's leading political party, and making efforts to tackle its inexperience in politics with charges from other parties that its candidate for prime minister Mr. DiMaio, 31, is a complete novice. Here he is shown to have inflated the qualifications of a candidate with a pro-EU background, Italian Ms. D'Alessandro who lives in Berlin, Germany. She is one of many candidates from the professional class recruited by the Five Star Party to polish its image and show it is capable of governing. Ms. Alessandro was presented in the Southern region of Italy by Di Maio as an "economist" and someone close to Merkel's CDU. In elections on March 4, the governing Democratic party is presenting older candidates in their fifties with family and political connections in contrast to the young people like Ms. D'Alessandro who is only 27 years old with a masters degree in public policy from a German University.  The Five Star Movement hopes to gain from Italy's proportional system and the voter dissatisfaction with existing parties. A similar situation led to the untested and untried En Marche Movement in France winning the national elections. A separate report in the Economist magazine shows the Five Star Movement retaining its popularity even after other parties accused it of inexperience, improper financial dealings of candidates, plagiarism, anti-immigration views of specific candidates.  ...

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The writer, Dhillon, a fellow at the Brookings Institution, would like to see a more inclusive India inclusive of its Muslim minority, which he says has been marginalized, and a middle class that exercizes its civic responsiblitlies with participation in the process of democratic government. He also calls for looking at the neighborhood India is in, and coming up with longterm viable solutions that would work well for the region's progress.

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The rally of about 1 million people in Berlin shows Germans are awakening to the need for vigilance in a democracy. Berliners and Germans were showing their awareness of Thomas Jefferson's words that eternal vigilance is the price of freedom. In the fragmented world of German politics where the main parties Social Democrats and Christian Democrats, the parties of Wily Brandt and Konrad Adenauer that built modern Germany command less than 20% support each, the need was never greater for a bulwark of freedom and free people in the center of Europe.

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About 29% of businesses support the iPhone, up from none in 2007 and 17% in 2009 according to Forrester Research. Even though 70% still support the Blackberry, the iPhone is getting the support of employees who ask for iPhones, even if that means they pay for all or part of it on their own. AT&T's CEO Randall Stephenson, says about 40% of its iPhones are sold to companies or individuals with corporate discounts.

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China's central banks cuts the reserve requirement ratio, the amount of money banks need to keep at the central bank, by half a percentage point. Banks are required to use the money that is freed up of $100 billion to help heavily indebted companies and small business lacking collateral to get new loans.

This is a response to the Trump tariffs on $100 billion of Chinese goods with a equal response from China and the trade war between China and the U.S., so that the Chinese economy can be bolstered before the impact of the tariffs hurts the economy. In the past China was reluctant to reduce the reserve requirement. Chinese debt soared with local government debt and debt accumulated from the 2008 large stimulus in the financial crisis.

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Honda plans to move more of its manufacturing to the U.S. as the value of the yen drops below 80 to the dollar in 2011. Honda faces problems from parts shortages after floods in Thailand, and U.S. market share down 1.5 percentage points to 9% in 2011. Honda's profit declined by more than 50% for the third quarter of 2011. The yen trading at 77 to the dollar in Dec 2011 is making it impossible for Honda to make a profit from vehicles made in Japan and sold in the U.S. Honda plans to double the capacity of the Civic plant in Greensburg, Indiana, increase capacity at its other assembly plants. It will build a new plant in Celaya, Mexico, in 2014, to manufacture the Fit subcompact. This will raise North American production from 1.29 million vehicles to close to 2 million. About 200,000 to 300,000 of these vehicles will be exported to other international markets. Profits on small subcompacts are small, making manufacture of the Fit more economical in North America than in Japan. In 2011 Honda manufactured between 30-40% of vehicles in Japan, the new plans are to reduce this to 10-20% in the next 10 years, a major shift....

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A recovery in Intel's business of making microprocessors for PC's. Computer demand from corporate customers, medium and small businesses is increasing. Intel showed a 40% increase in profit for the 2nd quarter of 2014. Demand for tablets is softening and buyers are using large smartphones instead of the smaller tablets. Intel CEO Krzanich, says the installed base of PC's that is about 4 years old is about 600 million strong, and is refreshing for these business customers. Intel is also shipping chips for tablets with plans to ship chips for 40 million tablets in 2014. The Internet of Things group, making chips for non-computer devices, showed an increase of 24% in revenue. So far Intel shares are up 20% in the first half of 2014. Intel plans to add $20 billion to its stock buyback plan and plans to repurchase about $4 billion of its shares in the 3rd quarter of 2014.

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Honda takes its first loss since 1957 with a$15.7 billion loss on closing operations of electric vehicle manufacturing in the US. This is similar to losses taken by Ford, GM and Stellantis. Honda says in its statement that “In the U.S., the expansion of the E.V. market has slowed down due to several factors, including the easing of fossil fuel regulations and revisions to E.V. incentives.” It talks about reduced profitability after tariffs- "The extremely challenging earnings is compounded by a decline in the profitability of gasoline and hybrid models due to the impact of newly imposed tariffs.”

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This editorial in the Wall Street Journal says the U.S. presidential election in 2016 now looks like a referendum on safety after the Paris attacks. Rand Paul's chances are seen as nill because his policies, says the Journal, most resemble U.S. president Obama's. Hillary Clinton's comments about the need to defeat not just contain terrorism are seen as distancing herself from Mr. Obama, but the situation in Libya is seen as happening under her watch. The WSJ editorial lists a long list of the situations it has warned against in 2012-2015 since the Arab Spring led to the current situation in Syria, Iraq and Libya, the millions of refugees in camps in Jordan and Turkey, and the refugee movement to Europe.