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This report in WSJ looks at the Biden education, healthcare and climate change plan. It is part of the Families and Workers Plan put forward by president Biden for $3.6 trillion. This figure has now been lowered to $2 trillion and may drop crucial provisions for education such as the cost free community college which poses serious risks for working class families unable to afford community college, and skews education access even further to higher income families. It also lowers college attendance of American men, which is falling to alarming levels. The reason the plans are being whittled down is the 50-50 split between Democrats and Republicans in the Senate and the failure of Republicans and two Democrat senators Manchin of West Virginia, Sinema of Arizona to support community college access. Parts of the current bill support child care, access to affordable housing and in home care for elderly Americans. New elections for Senate and House of Representatives in 2022 would have to settle the issues related to financing assistance for families and workers as the Senate today is divided 50-50 between Democrats and Republicans. A separate Bipartisan Infrastructure package has the support of all in the US Congress to build bridges and roads, other infrastructure badly neglected by different administrations over the last 2 decades. ...

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This report in the WSJ points to president Biden's speech to a joint session of the US Congress that providing two years of free community college would "change the dynamic" for education in America taking the first step to correct a dangerous drop in college enrollment for young men in America and ensuring working class families have access to college education. The last thirty years of skewed wealth distribution, loss of manufacturing in America, have created alarming distortions in  the access to college education for working class families. Mrs. Biden is a fervent advocate for community college access in today's America, as a community college teacher for 30 years. Biden's $45.5 billion 5 year plan would waive tution for 2 years of public community college. States would have to opt-in to participate, and federal government would provide 100% funding in the first year, decreasing contribution by 5% each subsequent year, with states picking up rest of the cost. It is quite shocking that this is being dropped from the Biden $3.6 trillion Families and Workers Plan that is now being whittled down to $2 trillion. Not because it is not badly needed for American economic competitiveness, and helping workers and families. But because following narrow parochial interests the National Association of Independent Colleges and Universities opposes it. And because the US Congress is evenly split between Democrats and Republicans 50-50 in the Senate. The Association of Independent Colleges sees a shift to community colleges and a sharp drop in its enrollment. Community colleges saw a dangerous drop in enrollment of 12% to 4.5 million students in 2020 from the spring of 2019, according to National Student Research Center. Never was a program more badly needed, as American men are alarmingly falling behind in enrollment. Here are some responses to the failure to take even the first steps to broaden college access so that America can return to economic competitiveness. "What kind of world do we want to live in?" Martha Kanter, College Promise. "That's kind of a devil's choice, isn't it? The whole system has to work from infant care all the way through." Senator Tina Smith, Democrat of Minnesota. This is because child care and children's education will be funded yet a struggling generation of college students will be left out. US Chamber of Commerce opposes a $45 billion program that is critical to American competitiveness with China and other countries. US Congress drops a program that at $45 billion is only about 2% of the $2 trillion package and which is critical to economic competitiveness. Former Republican Governor Bill Haslam of Tennessee supports community college access as a pillar of economic development and it passed the supermajority in 2014. Mike Krause, Republican former director of the state higher education commission says- "I have been surprised by the lack of enthusiasm for what is really a massive workforce development concept that also provides a path to the middle class. You'd think that would hold some appeal for Republicans and Democrats." The lack of clarity and concentration, lack of unity of purpose to get all vaccinated,  is visible in America's vaccination drive. That same lack of clarity and concentration, lack of unity of purpose, is visible in America's faltering efforts at correcting serious and alarming problems for access to college and American competitiveness in the world. Julie Bykowicz and Douglas Belkins wrote this article in the WSJ.   ...

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Some of the key executives are leaving Airbus as the company faces turmoil in its executive ranks. CEO Tom Enders leaves in April 2019, Chief Operating Officer Fabrice Bergier leaves Feb. 2018. John Leahy in sales left Airbus, and others who left the company include the head of engineering, and the chief technology officer. All this is happening as the company faces investigations in several countries including France and Austria for corruption, and according to this report for using middlemen and making illegal payments.

In France Airbus offices have been raided in an investigation. Enders is one of the executives being investigated in a combat jet deal. COO Bergier is leaving with a good record for managing the smooth development of the A350 wide body aircraft, and the production increase to 700 aircraft in 2017 for the first time in the company's history.

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Financial markets and investors now see the uncertainties emanating from tariffs negotiations as temporary and unlikely to affect corporate profits and the US economy says this report in WSJ. When the EU requested an extension with EU president Leyen calling DJT on May 27th, Trump who had said the EU was dragging its feet on trade negotiations with the US, granted her request. Leyen promised to speed up the negotiations with the new deadline of Juy 9, 2025. Trump had called for an across the board 50% tariff on all EU products if the EU continued the lack of response. In this way DJT called the bluff the Europeans were playing seeking to portray the American tariffs negotiations in an unfavorable way.  How did markets respond? The S&P 500 increased by 2% on May 27th when it became clear that a trade settlement was likely to be reached in 6 weeks. Earlier DJT had met with Mark Carney of Canada another key trading partner and come up with an understanding on moving forward. DJT has shown flexibility with advice from Treasury Secretary Scott Bessent who has experience with and carefully followed financial markets. ...

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Sales of packaged coconut water increased to $400 million in the U.S. for 2011. Revenue has doubled every year since 2005. With less than 50 calories per 8 ounce package, this is a low calorie drink with good hydration properties.

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With dividends and inflation factored in the S&P 500 went up by 1.3% in the last 10 years according to Morningstar, Inc.The S&P 500 stock index the basis of $1 trillion invested in US index funds was at 1352 on Tuesday this week, it was 1362 in April 1999. Prof. Sylla of NYU Stern School of Business sees corporate profits falling to 3% or 4% of economic output from the 9% in 2006. Typical year corporate profits are about 5 to 6% of total economic output so this number is likely to revert to the mean and go a bit lower as it overshoots in one direction then to revert to the mean it has to overshoot in the other direction for a while. This and higher inflation should bring down stock prices further.

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America's nonfinancial companies are sitting on the biggest cash pile ever- $2.1 trillion at the end of June, according to Moody's Investors Service. AT&T has $15 billion in cash. And Delta Airlines is in a better position to survive the pandemic with $15 billion in cash.  Companies in STOXX Europe 600 have also posted a similar rise.in cash. Liquidity ratios are up at Deere and Southwest Airlines.

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Starting in 2023 the penalty on missed RMD drops to 25% from 50%, and down to 10% if corrected in 2 years. The statute of limitations for missed RMD's is three years.

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India moves ahead with the the purchase of $5 billion S-400 long range surface-to-air missile system from Russia durinf president Putin's visit to New Delhi. Delivery of 5 of the systems will take place over 2 years. India hopes to have a transaction specific waiver for the purchases as the U.S. is placing sanctions on defense purchases by countries from Russia. U.S. sanctioned China in September 2018 for its purchases of 25 Sukhoi jet fighters and S-400 missile systems from Russia.

India has set a goal of diversifying its arms purchases. From 79% of arms purchases sourced from Russia, the figure dropped to 62% in 2013-2017 compared to the preceding 5 year period.

India and Russia have set the goal of expanding bilateral trade from current $10 billion in 2017 to $25 billion  by 2025. 

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Bihar unemployment and West Bengal unemployment of 3-5% a fake number as the jobs counted include unstable temporary poorly paid work. Quality Jobs are only 10% of the workforce. These figures disguise huge problems. In Bihar and West Bengal youth unemployment is high and many youth simply leave the state for states in the western part of the country such as Gujarat and Maharashtra looking for work. In West Bengal the situation is particularly dire as the state government has blocked foreign investment and it is not an investment friendly environment. In addition the idea of a cut or a fee for everything and services, encouraged by the state government, leads to an entrenched climate of corruption that keeps out investment in industry and in infrastructure. The lack of cooperation with the federal government at the West Bengal state level leads to people in the state not having access to federal programs for housing, healthcare and water, sanitation. None of this shown in the media. When the media inside India and in the US or EU covers India, it fails to even give this importance. Probably because of the huge ignorance about India, its history and struggle for industrialization and modernization for the last 50 years. It is similar to the huge ignorance in America and Europe and inside China itself during the years of Japanese occupation of China in the 1930's, and through the efforts for industrialization in the 1960's and 1980's. A BBC article on fish is an example of this shown alongside this article on Bihar (and West Bengal). Both states were part of British Bengal, which is where the British based their Empire after the British East India Company secured rights to the revenues of Bihar and West Bengal by the 1780's, that had been take earlier by the Moghuls during their invasions from Afghanistan and Iran. This was the beginning of the destruction of West Bengal's economic structures in the way it happened in China by the 1850's with the Treaty Ports secured by the same East India Company of the British merchant Navy. The process of unwinding of this enterprise goes on today even 75 years after 1950 against the roadblocks to industrialization and modernization in India set by native corrupt state administrations. ...

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Foreign investment at high rates helped China build its middle class. In the first quarter of 2023 it dropped to $20 billion from $100 billion a year earlier. This means about $80 billion will be going elsewhere to increase incomes and the middle class through investments in the US itself, and in countries such as India and Vietnam.

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WSJ looks at dangerous work loads and overwork, 100-125 hour work weeks with little or no chance for rest for younger workers in investment banking. Most of them sign up for the opportunity unaware of the toll it will take and bosses routinely expect such dangerous workloads ignoring bank policies that are not enforced by the banks management. 

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Sanofi will use its manufacturing plant in Ridgefield, New Jersey, in the US to fill vials and finish packaging of 200 million doses of Moderna vaccine, under a new agreement. This will supply the US under Moderna's US supply of vaccine agreements that run through April 2022. This is part of industry collaboration to expand supply of global vaccines, that includes Merck and Novartis.

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By 2024 Dholera Special Investment Region airport and the expressway linking Ahmedabad to Dholera will be operational, says India's Union Minister Piyush Goyal. Developed from scratch on vast stretches of land in the Gulf of Khambat 100 kilometres from Ahmedabad it is expected to be India's best manufacturing zone,  comparable or better than any manufacturing zone in China. It is part of the industrial effort to build world class manufacturing zones in India that fit in with the shift of manufacturing from China as part of the redesign of world supply chains to avoid overconcentration in any one part of the world.

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Taylor Swift Era's Tour gives a boost to local economies in the hospitality and entertainment sector. In Colorado 2 Taylor Swift shows added $140 million to the state's GDP. Occupancy records in cities in the US and Asia are broken with these Swift tours. The Swift concerts will play at many cities in Europe including Cardiff and Liverpool. Then why are concerts only in Singapore and Tokyo in Asian venues. Singapore provided additional funding for the concerts which could add with other concerts about $300 million to the local economy. Swift has a large following in Japan with people waiting camped overnight for these concerts.

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Stellantis reports a loss of $750 million on sales of 41 billion euros for third quarter 2023. As a company with operations distributed evenly all over the world Stellantis suffered smaller losses than GM and Ford. GM's losses of profit were $1.3 billion and Ford's $800 million. From the point of view of workers who want a settlement for fair wages in a cost of living crisis keeping losses sustained by the car company to a minimum so that the industry as a whole does better is important, because when the companies do better so do workers and management. 

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Expert views that the G-7 meetings in Cornwall and the Carbis Bay pledges were not adequate in providing financing for climate change goals. Climate finance falls far short of the $100 billion planned by 2020.

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On one hand the issue of the $165 million in bonuses going out to employees in the 370 person Financial Products Group, and oth the other the need to wind up the complex derivative contracts that are causing these huge losses at AIG. But are such huge payouts needed for these employees to do their job? Isn't this aprofessional responsibility of these employees? And AIG's retention-payment program was disclosed a year ago and the amount of the bonuses $400 million, says the Washington Post, had been widely reported. The company is set to pay according to the WPost $600 million in retention awards to about 4700 people throughout the global insurance units. WHat happens to the $600 million, as no opinion has been voiced on these upcoming payments. The whole idea of retention payment raises another question. Will the skills of these employees be needed in a long drawn out economic downturn spread over several years or longer. And will thefailure of such things as derivatives, and the tighter regulation, mean that they will play amuch smaller role in the future. And even in the insurance units will these skills draw a premium in a market where the supply of new talent is larger than the job market ? One expert has sugggested that even if some of them left, there would be younger people to replace them who might bring an even better set of qualifications, with amix of skills, caution and prudence. So is there something self-interested and spurious in the retention argument itself and shouldn't this bluff be called? ...

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Apple shares are down 25% says this WSJ article and asks the question whether Apple's best days are past. In the fastest growing markets in Asia and Africa, Apple iPhones are beyond the reach of about 95% of the population. The number of Apple iPhones sold in India have dropped 40% in 2018 compared to 2017. Apple's market share in India has fallen from 2% to 1%, according to Canalys research firm. The $1.8 billion in Indian sales is about half of what Apple executives had hoped for when Tim Cook visited India in 2016. Some call it a rout. Tim Cook seldom mentions India now. At the center of this is Apple's reluctance to change its business model of getting the highest margins, making not a range of handsets, but a few models selling at high prices. This is the strategy that Apple has used to revive the company from near bankruptcy in 1997. Competitors including Xiaomi, the Apple for China and India, tweak their phones constantly to address local concerns for battery life, and lower prices to get market penetration. Only 24% of Indians have a smartphone and India is fastest growing market. Friction with the Modi government which cannot be favorable to Apple's plans to push a high  margin product when competitors have similar but better value packages.   In price sensitive markets of Africa and Asia most people buy phones outright and use pay as you go plans, Apple is not popular. Even in China Apple's market share is down from 12.5% in 2015 to 8% in 2017, according to Canalys. Apple is reluctant to make many models offering lower prices and to address concerns such as battery life in India. In India 39 million people will add smartphones in 2018 with 75% costing less than $250, 95% costing less than $500. In Apple's lineup the iPhone 7 costs around $550. Competitors such as Xiaomi, OnePlus, Oppo, and Vivo flooded India with smartphones costing less than $200. Unlike Apple which spurns market research these companies do extensive research work on local situation. OnePlus has focussed on battery life and gained 30% share of the premium segment to Apple's 25%. By making the devices in India these companies avoid having to pay the 20% tariff. Apple has so far not put up a new plant with the restriction that India places of single brand retailers over 51% foreign owned to buy locally 30% of manufacturing materials. The Modi government felt Apple was not focussed enough on bringing high tech jobs to India and helping local manufacturing, a perception not conducive to expansion in India where "Made in India" is the government plan. This means opening Apple stores in India is less likely now.  The turnover of Apple India executives is also increasing with 3 new CEO's 2017- 2019. Apple's strategy of targeting wealthier Indians makes it not even a fringe player in the Indian market down to 1% of the market. Just as it shrinks in the Chinese market where most customers are price sensitive and the economy is slowing.   ...

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This report in WSJ shows how European countries are maintaining salaries of employees who would otherwise be laid off. Governments have setup programs in France, Britain, Germany and other countries to provide employers with the money for 80-84% of salaries up to 2500 pounds ($3165) in Britain and 5330 euros a month in France. As a result 1 worker out of three in the private sector in France for subsidy applications for 6.9 million workers are already received. For the German program 2.4 million workers will get this benefit. About 1 million companies in Europe retain employees with this program of governments simply sending out the salaries with funds directly to households. This helps to keep out the stress for families, particularly families with children. It is as if the employees are not really laid off but asked to stay at home for manufacturing facilities and work from home in shorter hours where work can be done remotely.  Money is quickly deposited into the bank account of employees in these countries, though it is slower in Italy and Spain. It is as if the European approach is put the whole economy on pause for 2 months and restart it almost like before with only a small dent in employment once the coronavirus is pushed out with lockdowns and strict control actions. This will cap German unemployment at 5.9% compared with 5% last year, only a modest increase. The cost is not that much considering what it accomplishes. 10 billion euros is the cost in Germany where the state fund for this has 26 billion euros. 10 billion pounds in Britain. And 20 billion euros in France.  The U.S. adopts a similar approach also through its $349 billion program which provides loans to companies with less than 500 employees to meet payroll for 8 weeks and pay some overhead. Loans are forgiven based on job retention and employees on the payroll and only if the employees are retained. Another program is for companies larger than this. And a third program targets entire industries such as airlines, aerospace, and companies in other industries so that they do not have to layoff employees. U.S. unemployment insurance is modified to work along similar lines maintaining incomes of employees laid off because of the pandemic. Another program sends checks directly of $1200 to households with lower incomes to help them and to help people at poverty level or without jobs. The thrust of both the European and American efforts is the same, lose as few jobs as possible, keep people's incomes steady, and do this in a way that the economy can pick up quickly to the former level in as short a time as possible. Compared to Europe U.S. unemployment will be higher predicted at 9.8% with the expected rebound lowering the unemployment in 2021. ...

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The Trump administration is preparing direct aid to Americans and American industries hurt by the coronavirus epidemic. Each check will be based on family size and income, according to a Treasury Department memo seen by WSJ. The direct payments in two rounds will be on April 6 and May 18. This is part of a $1 trillion stimulus program. $50 billion lending facility is being setup for the airlines. Another $150 billion goes to distressed sectors in the economy. $300 billion will go to a small business interruption loan program, which will go to temporarily cover payroll costs for employees. The idea is to put a safety net and support workers who will need help while they are not working. The measures include two weeks of paid emergency leave for a large number of people. Money also goes to additional Medicaid funding, more money for food stamps, and for unemployment insurance program. Congress has passed the bill and president Trump is expected to sign it into law. Other bills will follow in Congress. A third economic package will cover additional needs of agencies of government, with $11.5 billion for Department of Health and Human Services, and Departments of Defense, Veterans Affairs, Homeland Security. All this is being done in Congress and by the Trump administration at top speed. ...

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Blackstone's plans to sell its commercial real estate investments valued at $22 billion in regional parcels, a total of 100 office buildings and about 50 million square feet of space. Plans are to do this for an exit by as early as 2013.

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The IMF's managing director, Christine Lagarde, pointed to the urgent need to recapitalize European banks in September 2011. European banks face potential losses of 120 billion euros for Belgium, Spain and Italy, 60 billion euros for Greece, 20 billion euros for Ireland and Portugal, and 100 billion euros for other banking exposure, for a total of 300 billion euros, according to the International Monetary Fund. In the absence of recapitalization there could be further damage to EU economies from restricted lending by banks. IMF estimates show that deteriorating credit conditions could damage growth in the eurozone countries by 3.5 percentage points, and in the U.S. by 2.2 percentage points, creating another recession.

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Boeing plans to make an additional $3.5 billion payment for its pension liabilities ahead of the time due. This is a result of its increasing confidence as sales of Boeing jets have increased with a backlog of orders of $500 billion. Shares are up 36% in 2017.