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Investors compare Goldman Sachs which has retained its trading commodities business with Morgan Stanley which has shifted focus to wealth management and other less risky business. Morgan Stanley's share price has increased more than Goldman Sachs since the 2008 financial crisis, showing the different approaches taken by financial institutions that were battered during the financial crisis of 2008. Morgan Stanley had a change in management after the crisis, Goldman is still being run by CEO Blankfein, showing a key difference between the two banks. Morgan Stanley was battered during the crisis as its share price plunged on rumors in a way and extent that Goldman was not. Goldman was relatively better managed and avoided the frequent egregious errors made by other banks such as Deutsche Bank, UBS, Citigroup, taking fewer risks, leading upto the financial crisis of 2008, though it faced increased public scrutiny in the Abacus case for mortgage securities. It also helped with regulators that Goldman has a tradition of public service with executives working in government- Treasury Secretary Rubin worked in fixed income trading at Goldman, Treasury Secretary Paulson was former CEO at Goldman with strong China connections, and Gary Gensler at the CFTC. Now Goldman gets a larger share of its revenue from trading than competitors and was affected by the sharp commodities price swings in the 4th quarter of 2014. Revenue from fixed income, currencies and commodities trading declined by 29% in 2014 to $1.22 billion. Since the low reached in share price during the 2008 financial crisis, Goldman is up 267%, Morgan Stanley is up 291%. Even as tighter regulation is squeezing returns and banks are required to set aside more capital as buffer for riskier assets, Goldman continues to maintain its focus on commmodities business and trading. Mr. Blankfein and another senior executive Cohen, both got their start in commodities trading which generated about 8.2% of revenues in 2006 when Blankfein became the new CEO. Blankfein and president Gary Cohn worked at J.Aron & Co., a coffee importer, when it was acquired in 1981 and the location moved to Goldman's former headquarters in New York. The commodities business took off with China's surge in demand for metals and other commodities. Goldman's traders buy and sell aluminium, crude oil, natural gas, soyabeans, sugar, and derivatives. Goldman's revenue of $34.53 billion in 2014 has declined from $45.17 billion in 2009, and Goldman has reduced its balance sheet by a quarter. Net income increased in 2014 by 5% to $8.1 billion. But other than these changes Goldman unlike Deutsche Bank, Morgan Stanley, Credit Suisse, Barclays, has not let its commodities trading business shrink. Goldman's commodities division is headed by Gregory Agran and co-chief Guy Saidenberg in London. Goldman says CEO Blankfein, "remains unabashedly an investment bank," and is waiting for economic conditions to improve....

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Xi Jinping of China's offer to act as mediator in Saudi Iran relations is expected to lead to a resumption of relations between the two countries 7 years after relations were disrupted. The conflict in Yemen with whom Saudis share a common border has resulted in damage to both countries with Iran and Saudis supporting opposite sides. 

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Macron hopes to shake off a sense among voters that he is aloof and haughty by campaigning every day among voters in areas where young people supported Mr. Melenchon, and in some working class towns that support Le Pen. Le Pen is doing just the opposite staying close to voters in the North and the Southeast who have supported her.

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This article in the NYT cites research published in JAMA that shows higher rates of depression among women who complete medical residency training, because of the larger share of child care and household duties. This places a bigger burden on women than their male counterparts, even though the long hours and strenuous duties create a high rate of depression for doctors.

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The difference between informed public opinion, between creating educated informed mindsets that affect and shape their lives, and the echo chambers created by monopolistic information technology providers of today, is the subject of this video in FR24.

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The market shares of Hyundai, Kia, and VW have received a boost as the Detroit carmakers struggle. Kia and Hyundai have moved their market share from 5 in 2008 to 7.3% today, up by 2.3%. Hyundai had difficulty getting brand name recognition for quality and performance in prior years, but it has persevered. KIa and yundai spend more on incentives, $3200 in 2009 compared to $2000 in 2008 to attract first time buyers. To take into account the economc conditions Hyundai was the first to come up with the Hyundai Assurance Plan, which allows buywers who finance their purchase to return the cars if they lose their jobs. Once these buyers try the Korea cars the ope is that they will see that the quality is on par with the Americans and the Japannese for a lower price, or even exceeds them. The Korean carmakers have worked hard on improving quality. In 2009 Hyundai won the North American Car of the Year award at the Detroit Auto Show for the Genesis luxury car. VW is also gaining market share this year. VW's market share is up to 2% from 1.5% in 2008. Aggressive marketing of the Jetta has moved its sales by 8.3% in May. Some of this market share is coming from Japanese carmakers....

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Germany's Federal Criminal Police (BKA) says its online tip portal is hit by hackers in a denial of service attack. The site was restored to normal service shortly afterwards. The tip portal was for the public to share video and text on clues to the attack.

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Henninger says it is imperative to set up strong community standards that "shame the shameless," when it comes to violent video games produced by videogame companies.

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Photos of industrial decline in the US with text by Helen Epstein, professor of human rights and public health in The Guardian. This was a period in the early 1980s when America's major industries in steel and other parts of the economy went into decline. Cities and towns across this vast land were left to decline with loss of jobs and with it decline in quality of life, decline in health, education, says Prof. Epstein, as the Democratic Party jettisoned its foundational principles. The term "Reagan Democrats" emerged in the late years of the Carter administration, and again after Clinton, Obama took the shape of the Trump vote. By 2021 the situation has reversed with the Democratic Biden administration putting forward a program for revival with his $1.8 trillion Families Plan for infrastructure and for the benefit of America's workers, students and families. What was a protest vote during 2016 is now taking new shape in the form of this plan for the renewal of America. ...

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Picture of a weather sign outside a Pharmacy in Paris shows the heat wave hitting Europe- the Temp. 44 degrees C. This is 111 degrees Fahrenheit. In places loike Seville, Spain the temperature can get even hotter. Europe is woefully under airconditioned with many hospitals and public facilities lacking airconditioning. The US is far ahead in airconditioning. Conservative parties in Europe are accusing the liberals in power of not doing enough. In London Sadiq Khan is Mayor and housing construction rules require considering other cooling design options before putting in air conditioning. Some members of parliament call this "ridiculous."  In France the opposition parties say the government "is out of touch." Consider government views in France. Energy minister Agnès Pannier-Runacher says heat from large-scale air conditioning would make heat waves worse. “It’s a bad solution, We should air-condition for vulnerable people to give them a break, but on the other hand we shouldn’t do it everywhere.”  ...

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Facebook has invested heavily in proving that digital ads on Facebook are effective. Some of the research was done with Datalogix and other firms. About 60 ad campaigns were carefully tracked to show how consumers seeing ads on Facebook spend their dollars on products in brick and mortar stores. One ad with cuddly bears for Coca-Cola was more effective than ads on television, says CEO Sandberg. In addition to targeting users based on what users share in their Facebook profiles advertisers can now see the effects on sales. Facebook's vice president of measurements and insights, Brad Smallwood, says advertisers were given the first big report on how consumers acted after seeing ads in the real world. The results are most evident in digital advertising for mobile phones. Facebook has 6% of the $118 billion digital advertising global ad market compared to Google's 31%. The share in mobile is 18% in 2013, up from 5% in 2012. Facebook shares were up 14% or $7.55 to $61.08 on Jan. 30, 2014. Facebook's share price increased by 20% in July 2013 after a similiar announcement of improvement in mobile ad revenues. Facebook's IPO price was $38 in 2013....

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The Guardian calls Chris Whipple's account of president Biden's first 2 years in office fascinating and timely. It gives a close look at what happened to get path changing legislation passed in the US Congress that will shape America for decades through new infrastructure, science and technology investments, climate change action, and building a society of opportunity envisioned by president Lincoln since the 1850's, that define what America means- a land of opportunity and dignity for all.

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Apple maintains its grip on the tablet market with its iPad at $499. Experts at Wharton and the Stern School of Business say Apple has found the strategically right price to maintain a dominant share of a rapidly growing market. So rapidly growing that some estimates show tablet computers surpassing PC sales by 2013. Apple CEO Tim Cook, has the logistical expertise that helped him work out the right price. The Kindle at $199 is hardly profitable by some estimates. Samsung has a smaller tablet at $499. In 2011 Apple saw its tablet market share decline from 87% to 68%, according to IDC Research, but still able to get a dominant share of sales. Apple uses the same approach to pricing for the iPhone. The profits generated on large sales and higher margins helps Apple invest in new products.

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Tesco has a loss in market share in the UK going from 31.6% in 2007 to 28.9% in June 2014, according to Kantar Worldpanel. Profit margins of 6% a few years ago have dropped to an expected 4% in 2014, according to Bernstein. Tesco is losing out to more competitive discount retailers such as Aldi and Lindl. For larger spending shoppers Tesco does not have the same appeal as rival chain Waitrose. CEO Philip Clarke, who took over in 2011, resigned in July 2014. Dave Lewis, executive at Unilever, will replace Clarke. Tesco's share price has dropped by 30% since March 2011, when Mr. Clarke became CEO. Lewis is expected to come up with a new strategy. Tesco does not have the cost structure to compete with the discount retailers such as Aldi, which should lead to a different approach. The current approach of only making Tesco marginally better to compete with established discounters is not working.