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Winkler says the Autonomy acquisition could be a useful step in executing H-P CEO Apotheker's new strategy to focus on higher margin businesses, but it comes at an expensive price tag. H-P paid ten times expected revenue for Autonomy, or 20 times earnings before interest, taxes, depreciation and amortization. This is too much cash considering that the share price of H-P has dropped by half since February 2011.

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South Korea was one of the poorest countries in the world after the Korean war when the program of adoption was developed. It will now be handled by a government agency.

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IMF economist Oliver Blanchard, says the euro's depreciation vis-a-vis the dollar "would be a good thing." Because "in a way Europe needs it more than the U.S., and the U.S. could probably offset it in some way." The IMF forecast is for a 0.3% contraction in the eurozone in 2012 and growth at 0.7% in 2013. Blanchard says a drop in the euro exchange rate of 10% would normally boost growth in GDP by 1.4%.

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A Toyota panel recommends having foreign directors to reduce the insularity of the headquarters management in Japan. This remains a problem not addressed by recent changes that made the Board of Directors smaller for closer interaction. This makes management and the Board less responsive in dealing with situations like the recent crisis based on safety issues in Europe and the U.S., which occur in a different cultural and media context.

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At the end of the 2012 Communist Party Congress in Beijing, Xi Jinping assumes the post of chief of the Communist Party of China. He also assumes the post of head of the Central Military Commission, which makes him head of the armed forces of China. Li Keqiang, the incoming prime minister, is the only member of the party Politburo Standing Committee selected by current president Hu Jintao. Jinping is supported by Jiang Zemin, former president. Four of the other five members are older party leaders placed in these positions by former president Jiang Zemin, who succeeded Deng Xiaoping and started China's three decade long modernization. The seven member Standing Committee governs China by consensus. This will limit the room for change, especially as the other five members are in their mid 60-s and favor the status quo. Xi Jinping is 59, Li Keqiang is 57. Xi becomes president in the spring of 2013, and Li becomes prime minister to run the government ministries. The optimism for Li who is the best educated of China's leaders, holding a doctorate in economics from Peking University, and an early interest in constitutional law, is restrained by the institutional arrrangements that favor the status quo. Some experts in China see the new leaders likely to make major changes only if confronted by a crisis. In his live television acceptance speech Xi focussed on China's "rejuvenation," with improvements in the party bureaucracy, tackling corruption, and improving the lives of ordinary people, for better schooling, jobs, incomes, health care, better housing conditions, social security and the environment. From the rush to modernize and build infrastructure attention is now shifting to creating better conditions for the Chinese people....

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Walmart with 2000 H1-B visa offers for the first half odf 2025 halts the process in October 2025. Amazon had 10,000 H1-B offers highest number of H1-B visas offers by June 2025, Microsoft, Apple and Google had 4000 such job offers. India makes up 70% of the H1-B visa program and CHina 12%. It hurts the US workforce by bringing in lower paid IT workers to replace higher paid American workers. Bloomberg has adocumentary on the H1-B visa program that highlights abuse of the program that hurts American workers by the Tech companies. It also hurts India by diverting talented engineers needed for India's rapid modernization and creating a culture in which talented engineers in India look outside the country for jobs.

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Rising wages and rising production costs for Chinese exports of low tech products like shoes, clothing, toys, clothing, furniture, means a lot of these factories will shut down and move to lower wage countries like Vietnam and India or elsewhere. Elimination of rebates on more than 2000 export items raises cost of manufacturing 14-17% according to Guangzhou based American Chamber of Commerce in South China. And the the tough new labor law enforcing worker rights would increase manufacturing costs by 40% according to the Textile Council of Hong Kong. Additional costs would be incurred to meet tougher environmental controls and anti pollution laws and stricter enforcement. As a result of this Adidas wants its suppliers like Taiwan based Apache Footwear with 18000 employees in Guangdong to move as fast as they can to India where it opened a second factory. This process will unfold over several years till India and Vietnam bercome the new sources of cheaper goods because of the large supply of manufacturing labor for lower value added products, as it will take years to build the logistics and infrastructure for these plants in these countries. But because wages will also rise in India and the laws in India are more likely to be enforced than they were in the atmosphere in China where the Communist led government may have turned a blind eye to enforcement and worker rights in the interests of growth, the export of deflation to the west in the way of cheap Chinese products may be a thing of the past. China is doing this as a planned move it appears. Why? On the surface it makes sense that the heavily polluting factories making lower value added products like shoes, clothing, toys, furniture, would not receive rebates from te state and to improve living conditions and promote consumption at home the government woud pass tough new laws to ensure employee benefits and collective bargaining rights, and employee job security. It also reduces trde tensions at a time when the US economy will be in poor shape and jobs lost become a political issue in the 2008 presidential campaign. But there may bigger pressing concern and urgency in these moves after so many years of this being discussed and this may be that China finally may be at a moment when it is confronted with a sober fact that the US consumer is heavily in debt and may not support China's export growth model much longer and with it China faces a really significant slowdown in its growth rate from 11% to maybe half that if China does not develop its own domestic markets for growth. The old foreign investment model may not work anymore. See the link to Ireland where growth is falling off quickly. Higher wages and longer term jobs with benefits would enable a large middle class to develop from this huge manufacturing worker base especially as China moves to more value added products where even higher wages would be paid. This in turn creates a domestic market over time that would insulate China to some extent from the winds that would be blowing from a US economy suffering from a deep recession that may last several years. This may be evident in the words of the Governor of Guangdong when he says that the government is not abandoning the exporters but that selling domestically is good for the country and good for the people. Something deeper is at work here and one would expect an about turn in policy where instead of workers not receiving back wages and lax enforcement that went on freely in the last decade we would see an effort to build the kind of middle class that would provide the market for Chinese goods that would sustain growth at a more modest but sustainable pace. Which means in the short term all those workers at factories that make toys, shoes, clothing and furniture in provinces like Guangdong would be jobless. Some of these factories may move to provinces in the interior like Sichuan and Hunan provinces which may pickup employment. A report by the American Chamber of Commerce in Shanghai written by Booz Allen says that a fifth of the companies surveyed are considering relocating outside China, and that over half of foreign manufacturers surveyed think that mainland China is losing its competitive advantage to places like Vietnam and India....

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Ways to increase transparency in government spending by showing on the internet a host of different measures of how the government is doing in achieving the goals set in prudent and effective spending to shore up the economy and create jobs, and help the unemployed. All these indicators should be available to the public to be able to hold the government accountable and see what has been accomplished. Kennedy and Enzi, 2 Senators, are introducing a bill to allocate $7.5 million for such adatabase of ational indicators. The data would be selected by the National Academy of Sciences, and would cover education, the environment, energy use, housing, health care, and roads and other public works.

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Elizabeth Warren on the need for a new consumer protection agency as suggested by President Obama in his proposals.

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How information generated by Tesco's Clubcards can be used through rigorous information collection, analysis of mounds of data by computers based on a clear structure for the information and what they are looking for. And how the information insights can be used to quickly take action in what to stock and who to target with what is stocked through direct mail and coupons. Tesco uses information about what interests customers, who they are, for example: child care providing fathers who might want the beer as well as the baby stuff, South Asians in immigrant heavy communities in the U.K. tracking what they buy, and don't buy and where. 1. This information driven strategy of Tesco has been copied by other retailers. P&G, Coca Cola, Kimberly Clark and other consumer product companies buy analyses based on Tesco data. 2. This strategy has helped Tesco battle Walmart overseas. Walmart failed in the S. Korean market after 8 years selling its 16 outlets to a local competitor, while Tesco has 39 stores in S. Korea that are doing well. Tesco is also doing well in Central Europe where Walmart intends to open stores. In the UK which accounts for 45% of Walmart's international sales and 10% of its overall sales, Walmart's share of the British market is 16% for groceries compared to 31% for Tesco. Walmart entered the British market in 1999 through the acquisition of the Asda chain of stores. Tesco is growing and doing much better than Walmart in the UK. 3. Tesco's Clubcard based information driven strategy- 3-1. Uses a outside provider that is excellent in its field, can pioneer techniques that will work with Tesco strategy, and has the energy and dedication. Tesco uses Dunnhumby, a husband-wife consultancy that also works with Kroger in the US running its loyalty card program and analyzing customer data. The research firm is now majority owned by Tesco. 3-2 How it works. Each week Dunnhumby receives data on 15 million shopping baskets. Each product is scored on 50 dimensions such as price and the size of the package. The computer looks for customers whose shopping baskets have similiar combinations of scores. Dunnhumby has made 6 segments for Tesco. Finer Foods segment is made up of affluent time strapped customers who go upscale and Traditional segment comprises homemakers who buy ingredients to cook meals from scratch. 3-3 The clubcard works as follows. Introduced in 1995 by Mr Leahy, now CEO, the application asks for information about dietary preferences, size of household, ages of children . The plastic a card in the mail gives customers a point for every pound they spend after they reach $280. Each point is a penny off future purchases and it also can be converted into miles in frequentflier programs In addition large spenders get discount coupons every 3 months on particular products keyed to their buying profile in the database. Quarterly coupon package from Tesco would include 3 coupons for stuff they regularly buy and 3 for stuff Tesco would like them to try. While only 1-2% of coupons ever get redeemed about 15-20% of Tesco coupons get redeemed. The package also includes vouchers through which members can redeem points. $300 of purchases would generate a voucher for $3.00 off any purchase. Karen Masek, an actor and mother of two in London, says Tesco's mailings reflect her preference for fresh produce, environment-friendly cleaning products and organic meat. She says Tesco knows her buying habits and never sends anything that is way off the mark. 3-4 The way Tesco battled successfully with Walmart: Tesco searched its database and identified shoppers who buy the cheapest items available. About 300 items were identified for price conscious customers. Tesco lowered prices on these items such as Tesco Value Brand margarine so that these buyers would not defect to Walmart. 3-5 Examples of how the computer data is used. 1n 2001 Kimberly Clark introduced a premium version of its Andrex toilet paper in the UK infused with aloe vera. Through the Clubcard research data one could track who was buying this toilet paper and how consistently, and later tracked what other products these buyers were buying so that they could be targeted with incentives. It was found that they bought skincare products so Kimberly Clark sent direct mail to 500,000 customers offering free beauty treatments for purchasing the toilet paper twice....

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Civil charges to be filed by securities regulators against Anthony Piszel, Freddie Mac's chief financial officer from 2006 to 2008.

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David Brooks of the NYT says the Republican party is failing when it embraces Trump's version of populism with its racial division, tax plan that favors Republican donors and ignores fiscal conservative concern over deficits that affect future generations, supporting the election of Moore in Alabama, the constant Twitter comments that show prejudice. He says this will have destructive effects that could last an entire generation. This isn't the Republican party he has known for so long, says Brooks. The time is passed says Brooks when sensible republicans could go along in the middle by not agreeing with Trump, yet avoiding the task of opposing the elements of Trump policies that conflict with America's long held ideals shared by both parties. He calls its a corrupt deal that Republican party leaders in the Senate and Congress have agreed to make with Trump thinking that somehow this will all work out for them even if it doesn't for the party. Selling one's soul is somehow not an option that people would take in their right mid, so he wonders aloud what is happening in the party- and calls it a rot besetting the party of Lincoln, TR and Eisenhower that won't get it to any good place.   ...

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US China agreement on TikTok sale to American ownership as required by Congress, Scott Bessent announces that an agreement has been reached with China in negotiations for the transfer of ownership. China is concentrating its energies in negotiating tariffs that were kept at 30% by the US and 10% by China which hurt Chinese industry in industries where it has overcapacity.

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Professor Patterson of Harvard University has some serious observations on what has happened and what could be the way forward in America as it faces the lack of opportunities for a better life for minority communities trapped in cities with a deteriorating quality of life.  Between 1985 and 2000 a higher percentage of black children, about two thirds of black children, grew up in high poverty segregated areas than in the period between 1955 and 1970, according to a Pew Trust study of 2009. This affects everything from social mobility, life chances, potential for downward mobility. Particularly so because by 2016 the gap between black and white incomes has worsened, says professor Patterson. With this segregation has become worse in America at the level of neighborhoods where people actually meet, he says, citing a 2015 paper by Daniel Lichter of Cornell University.  In some ways segregation says Dr. Patterson is worse than in the 1960's. This could be because of downward social and economic mobility. Events such as the mortgage financial crisis of 2009 with bad decisions by the banking industry disproportionately hurt the black and minority communities. The trade imbalance and shift of manufacturing overseas hurt manufacturing jobs for white and black communities. Weakness in education and health services also hurt poorer communities of all races and color. In some ways the work of presidents Harry Truman and Lyndon Johnson in the 50's and 60's may have created more hope and a sense that "a rising tide lifts all boats" in economic opportunities that may have been lost in the work of presidents after Clinton with loss of jobs in manufacturing for ordinary black and white Americans alike. The bad decisions by the banking industry and selling of bad mortgages, worsening health care options with overpricing in the medical field, all compounding the effect on  ordinary Americans. In a separate interview in the Harvard Gazette professor Patterson says de-ghettoization, moving to the suburbs is one way to better opportuntiies in the suburbs. For this to happen more moderate income housing is needed in the suburbs. A cultural change in attitudes comes with a shift to neighborhoods where communities can interact and meet. For this to happen strict zoning laws that prevent moderate income housing in suburbs such as in California and many other states needs to change. As professor Orlando Patterson says here in the Harvard Gazette and in the WSJ more Americans with liberal views need to put their money where their voices are. A stronger economy, education for changes in cultural attitudes in classrooms, cultural literacy, more manufacturing in America to create better middle class wages and jobs for Americans of all communities giving industry a role, and more of the affluent putting their money where their voices are for better integrated living in the suburbs not just for a few, are ways to bring better life for Americans.   ...

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2013 will be a crucial year for Windows mobile software, according to IDC. IDC analysts say developer support is critical and mobile platforms that fall below 50% in support from developers 'very interested' in developing apps for them are likely to see a gradual demise. IDC's quarterly surveys of more than 4800 mobile apps developers shows Windows 8 tablets having such support from 33% of developers and Windows phone 7 software having 21% support. Research in Motion (RIM) has a mere 9% support for Blackberry phones and 8% for the PlayBook tablet. The figures for Apple iPhone are 85% and iPad are 83%, followed by Android phone 76%, Android tablet 66%.

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As Indian pharmaceutical industry sees drug testing in India as an opportunity, conditions for obtaining the best results are being established by taking necessary steps. With ashortage of experienced people to run drug trials, Indian government has stepped up training, setting up partnerships with the U.S. FDA, Health Canada, the World Health Organization, and other similiar organizations, The emphasis should be on credible dat and the safety of subjects says A.K. Pradhan, India's Assistant Drug Controller. After the death of an infant in a Wyeth Pharmaceuticals drug testing effort, the Drug Controller of India though supportive of Wyeth has raised certain issues that Wyeth is addressing.

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A report released by the Organization for Economic Cooperation and Development (OECD) shows growing income inequality in 34 OECD countries. OECD Secretary General, Angel Gurria says: "The social contract is starting to unravel in many countries. This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that the greater inequality fosters greater social mobility. Without a comprehensive strategy for inclusive growth, income inequality will continue to rise." Countries with the largest ratios between incomes at the top and the bottom, are the United States, Turkey and Israel, roughly 14 to 1. Germany, Denmark and Sweden have ratios of 6 to 1, with their ratios up from the 1980's. Gaps in Chile and Mexico are at 25 to 1. The study covers the period from 1980 to 2008. Overall inequality went up by 25% in the U.S. from 1980. In 2008 the top ten percent in the U.S. earned $114,000, 15 times than incomes for the bottom 10%. The top 1% of Americans saw incomes go up from 1980 to 2008, increasing from 8 percent to 18 percent. The richest 1% having $1.3 million in after tax income, and the lowest 20% making $17,700. The trends have accentuated an increase at the highest end- the top 1% and top 10% of the people- and a sharp decrease for the bottom 20%, which can be grasped from the $17,700 and the $1.3 million, both at extreme ends. The study attributes the rise in inequality to a growing gap in wages for highly skilled workers as technology advances, a surge in foreign direct investment and a looser regulatory regime that reduces employee protections leading to wage premiums for financial jobs and smaller incomes for workers at the bottom. Income groups and professions and sectors that had the greatest influence in government were able during this period to get the greatest protection for incomes, and able also to maximize their incomes. Incomes in the financial sector increased dramatically in the last decade, as a result of deregulation leading to higher risk and speculative activities in the financial sector, leading to the financial crisis of 2008-2009. Financial crises further depress incomes at the lower end. Similiar income inequality trends can be seen for India and China. China has a Ginni coefficient of 0.5 according to researchers at Beijing Normal University, up from 0.3 three decades ago- a Ginni Coefficient above 0.4 is considered destabilizing. Another factor that played a part in these countries is corruption and lobbying by special interests for favored treatment of sectors or groups. Austerity measures taken in Europe and in the U.S. are likely to widen income gaps by depressing the lower end income groups, creating social unrest, especially in the absence of efforts to stimulate growth....

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A study by AARP of 514 brand name and generic drugs between 2005 and 2009, shows that generic drug prices went down an average of 31% during this period, and brand name drug prices went up by 41%. One of the authors of the report says that it is important to look at individual drug prices and not studies showing total spending on drugs, because this is a significant cost for people paying out-of-pocket, It drives up insurance premiums, and pushes retirees into coverage gaps in Medicare Part D drug program. Analysts indicate pharmaceutical companies are increasing prices on drugs before patent expiration to get as much profit before the patents expire.

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A draft of the "Common Vision of the World Bank Group," posted online by Government Accountability Group provides details on how the World Bank sees its mission in 2013. The question relates to what the World Bank's mission should be in a world where develping countries such as China and India have made signficant progress. The fragile and conflict ridden states in Africa and in parts of Asia and Latin America will be critical parts of this mission. Yet a lot remains to be done in China and India, and the World Bank sees its role as facilitating the development of needed infrastructure in India and efforts to control pollution in China, better manage the growth of cities in both countries, and also work in the poorer parts of Europe such as Greece. World Bank president Kim sees the World Bank working with the private sector to ensure that infrastructure projects have "a transformational outcome" to help improve incomes of people struggling to join the middle class.

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Under a new program to increased spending on healthcare from 1.3% of GDP to 2.5% the Indian government plans to provide free pharmaceuticals at state run hospitals. This is expected to cost $5 billion over 5 years. Initially 350 drugs would be on a list of essential medicines and would be purchased from generics manufacturers in India. Dr. K. Srinath Reddy, heads the committee advising the Indian government on healthcare. He says this will help improve access to medicines for the vast majority of the people. Estimates show 70% of out of pocket medical costs for Indians come from spending on drugs. About 40 million people are pushed into poverty each year because of the high cost of medicines, says Dr. Reddy. He said that in 1984 31% of the medicines at government run hospitals were provided free to admitted patients, dropping to 9% in 2004. For outpatients this dropped from 18% to 5%. The free medicine program would be part of a larger universal health care program to be introduced over the next decade. India's large generics pharmaceutical industry makes the provision of free medicines on a large scale a feasible option in India because of the lower prices, with additional pricing advantages when purchased in larger volumes by the government. This would also have a major impact on the quality of healthcare in the country of 1.2 billion people for a relatively small investment. It also promotes a sense of fairness and equal access because the benefits of decades of modernization have been unevenly distributed and because of widespread poverty....

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India's Supreme Court dismissed petitions challenging the validity of the Army's Agnipath recruitment scheme for recruiting soldiers for a period of 4 years. A bench led by Chief Justice Chandrachud said "there was nothing for us to do in the Delhi High Court judgement." That Delhi High Court judgement called the Agnipath scheme "a well thought out one." In its February 27 judgement the Delhi High Court said: "A perusal of material on record shows that the scheme is a well thought out policy decision of the Government of India. The candidates selected under the impugned scheme would be enrolled as Agniveers, a distinct rank in the Indian Armed Forces.

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More flexible attitudes about how lives can be lived and independent attitudes are leading to more people in Japan doing things alone on their own. For people to travel, go to concerts or events alone, and take part in other activities alone, is becoming more acceptable in Japan, a country where doing things together was once the only way. About 50% of people in Japan now do things independently, as society changes and demographics adds another factor of single people in retirement. The term used for this is ohitorisama in Japan. There is even karaoke for one person on his own, and eating by oneself at a restaurant or at work is now ok, quite acceptable.

 

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Britain lifts the lockdown quickly after the Business Secretary and the Finance Minister warn of possible loss of 3 million jobsin the hospitality sector if it remains closed over the summer. Much of the job gains in the U.S. in April came from surprise additions of jobs in the hospitality sector.

Britain will now relax planning controls to allow pubs, restuarants and cafes to open outside areas for business. Outdoor weddings will now be permitted, with indoor weddings of upto 10 people allowed by early July. Places of worship, churches, open June 15, as do non-essential shops. 

The R rate has risen slightly yet it remains between 0.7 and 0.9. 

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Spain's global retail chain Zara will close 1200 stores or 16% of its outlets worldwide, as it shifts to selling more online. Zara says it will close smaller stores or stores where sales can be shifted to online. Spain says it will spend 1 billion euros on digital investments over 3 years. Inditex the company running Zara stores is known for its quick design and sourcing process which is done close to its Spanish headquarters.

About 78% of Inditex stores are now open, and sales which were down by 51% in May are now down 34%. For Inditex  online has done well, up 50% for the quarter and up 95% in May over April.

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The $3.5 trillion bill of president Biden to help America get back on its feet after the pandemic and after years of neglect of infrastructure, manufacturing technologies, child care, health and education, is that much only if offsetting tax increases and spending cuts are not included. When this is taken into account the US is spending about $871 billion to rebuild its economy and for a better life for Americans. That is the estimate provided in the report September 13 by the Congressional Joint Committee on Taxation.

Experts say that if president Trump's bill- Tax Cuts and Jobs Act of 2017 was calculated without offsetting cuts and tax increases the same bill would be $5.5 trillion package.