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WSJ's Monica Langley provides an exceptional report with a close look at the first woman CEO at a large corporation in the cusp of great change. IBM CEO Ginni Rometty is remaking IBM by moving out of existing businesses and shifting to new growth areas such as analytics, cloud computing, new R&D advances. She sees her job as building the IBM of the future, and this includes divestments and phasing out of some businesses, acquisitions, and building some businesses such as the Watson Heath Care business from scratch. In some fast growing areas such as cloud computing this means competing with other established competitors, Amazon, Google, and Microsoft. Rometty's job is tough because of the size of IBM with 380,000 people in 170 countries, a culture that lacks the agilityof younger companies, and the older businesses which continue to slow IBM's progress, and where divestments reduce revenues. IBM sales are down for 12 consecutive quarters from the year earlier quarter. IBM's share price is down about 10% since Rometty became CEO in Jan. 2012, resulting in investor dissatisfaction with results. Rometty's goal is for 40% of IBM's revenues to come from corporate markets in analytics, cloud computing, cybersecurity, social networking, and mobile technologies, increasing it from 27% of about $93 billion in sales in 2014, and 15% of $105 billion in sales in 2013. Sold off and divested are low end servers, IBM's chip maker, and other hardware businesses. It is so extensive that whats left of the mainframe business is focussed on new technologies for mobile. Rometty setup a partnership with Apple for the corporate mobile market, and started Watson Health as a new venture in analytics for healthcare using its Watson Computer technology. Rometty grew up in Chicago, one of 3 daughters raised by a single mom, who says she was taught to be "fearless" by her mother. She graduated from Northwestern University with majors in electrical engineering and computer science, joining IBM as a systems engineer in 1981. She carries a backpack, school size notebooks, on her frequent trips to see customers in person and is constantly prodding employees at IBM to go faster. Rometty has a passion for scuba diving in her spare time and always carries the gear with her. Christine Lagarde at the IMF is one of the few women heading large organizations that have the same level of energy. Lagarde's passion is swimming having competed in sychronized swimming, and both Rometty and Lagarde describe the loss of a parent in different ways as a significant impact in their life. ...

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How Mamdani won NYC - 20-40% increase in turnout on a 100 degree F day. And by increasing the liberal coalition of the 2021 Democrat primary of Kathryn Garcia in lower Manhattan, and of Maya Wiley in other parts of NYC. This is what a Washington Post Analysis of the 43% of the vote won by Zohran Mamdani a 33 year old NYC resident shows, as his opponent Andrew Cuomo got 36%.

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Bundeswehr started in 1955 by chancellor Adenauer of the CDU -with civilian leadership embedded in a democracy. In 2025 80% of Germans hold a positive view in a recent survey. It started with 101 volunteers in 1955 with enrollment up to 400,000 in the Cold War and down to 200,000 more recently. Being restructured for the issues facing the EU today in 2025 by chancellor Merz of the CDU. 

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De Aenile describes the volatility in stock markets after the Brexit vote. Earnings growth is slow and expectations are declining. Indexes of emerging markets are trading at 10 times earnings, say experts. The S&P 500 ended the quarter at 19 times earnings, compared to historical average of 15, according to this report. Uncertainty remains high in Europe and the U.S., and monetary policy is stuck in a low interest rate environment.

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A lot has been written about inflation in car pricing. This is true also of airlines and hotels this summer. Dawn Gilbertson in the WSJ says the 2023 travel rush continues, hotels and airlines have pricing power, and inflation is squeezing budgets. The solution is to have Plan B destinations, shorter trips, and plan airline reservations in advance looking at different alternatives based on airline and alternative destination choices. Average daily hotel rates have jumped to $180 this year in the US, up 10% since 2022 and 15% since 2019.

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Hard as it is to believe average leisure time in developed nations declined by 10-15% in the 2010's. After achieving the 8 hour day the burdens of childcare and blurring of the boundaris between work and leisure have led to this situation. This has led to the idea of "time poverty." 

For women who bear the greater share and burden of child care in normal times, and heavy burden during the pandemic, this is a situation that brings with it mental health issues.

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Vanguard's Chief Investment Officer Greg Davis, says there is a 40% chance of a recession in the U.S. by 2020, and that the prospects for the stock market have worsened quite a bit. U.S. stocks are expected to return 3.9% down from the earlier prediction of 8% in 2013 over 10 years annualized. In Europe the stocks are expected to return 6.5% down from 8.7% earlier prediction in 2013.

Bonds and cash offer safer alternatives with attractive rates.

Vanguard's 10 year annualized returns for a diversified portfolio of U.S. bonds is up from 1.7% in 2013 to 3.3%, for Treasury bonds 3.0%, and for international bonds up from 1.8% to 2.9%. Money market funds also offer relatively attractive returns as safe haven on 10 year annualized basis of 2.9% up from 1.5%. For the lower risk money market funds are attractive to investors for making adjustments.

 

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Greg Ip says in WSJ that China turned to lender after 2010 and financed loans for development, for roads, highways and infrastructure in Asia and Africa. Between 1970 and 1990 the World Bank was extensively involved in infrastructure projects, by 1990 it retreated from this role and China after 2010 was lending at double the rate of the World Bank for it Belt and Road Initiative programs. At G20 New Delhi, India, Biden and Modi, leaders of Brazil, and South Africa, agreed on advancing the World Bank's loan capacity by $100 billion for next decade under leadership of Ajay Banga. Thjis is happening at the meeting of finance leaders in Marrakech, Morrocco in 2023. The IMF and the World Bank were set up after World War II under the agreements signed at Bretton Woods, New Hampshire, as postwar finance system. The IMF was to serve as lender to countries facing short term finance crises, and the World Bank to finance development in poor countries such as India, Indonesia and after 1990 China. The largest borrowers from the World Bank were India, China and Indonesia. India is at $37 billion loans outstanding in 2021, China at about $21 billion after repaying much of its loans. By 2010 Brazil, Mexico, China and India had shifted to international capital markets for development support. Total outstanding debt of World Bank is $460 billion in 2021. ...

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A proposal by the former FDIC chairman, Sheila Bair, to now extend the U.S. Federal Reserve loans made to American bankers to everybody in this country. This will level the playing field, and bring a true sense of equality, with everyone entitled to the same benefit. And this could be done in Europe too, because the ECB could level the playing field by making the low interest loans it made recently to European bankers now available to everybody in Europe. And wouldn't that be a good idea? Yes, it comes from someone who has a good knowledge of banking, seeing us all through a financial crisis, and a keen sense of what is good for the U.S. and Europe. Bair makes her point in a novel way, yet it voices the feelings of the middle class in the U.S. and Europe.

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Some estimates of the cost of the Iran War for the US are about $13 billion over 10 days of the war. US president DJT asks Congress for $200 billion to finance the war. Iran refuses to back down on the closing of the Straits of Hormuz. Much of the oil going through the Straits of Hormuz goes to Asia, 90% from Kharg Island in Iran goes to China. Oil from the UAE goes through the Straits to Japan and India.

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Tau proteins in the blood is a cause for Alzheimer's. Scientists in Sweden have found a way to detect this protein in blood tests using kits that are commercially available. This detection can be 15 years earlier before the onset of the disease. This is a revolutionary finding and would make it possible to screen for Alzheimer's early on.

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Members of the U.S. Congress question GM CEO, Mary Barra, about a failed ignition switch. Members of Congress cite a 2005 memo saying the defect would not be corrected because it would cost 90 cents per car and the warranty-cost savings were about 10-15 cents per car.