LyrArc Article Gist
The poor performance of GM shares since its IPO offering. GM shares in July 2012 were 41% below the November 2010 initial offering price. Ford was at its lowest level in 2 years. One problem facing both automakers is the weakness in European sales. A second is the uncertainty for U.S. sales in a weak economy.

LyrArc Article Gist
This commentary in the WSJ says it is essential that the U.S. get back manufacturing of all technological goods back to the U.S. or its allies. The dangers of depending on China or other countries not clearly allied with the U.S. is quite clear especially after the pandemic. The U.S. and European supply chains need to be completely remade, restructured, to avoid dependence on China or countries that are not allies. This is what supply chain renewal is about. Yet initiatives alone with hundreds of billions of dollars price tag re not the answer to the problem. What is needed are specific targeted actions such government direct assistance to key sectors to ensure U.S. technological advantages in worldwide competition. Giving a hole range of incentives and direct financial support to industries making everything from electronic and computer components to high tech parts that go to defense and civilian production.   The U.S educational component in this puzzle is university students in all high tech courses which should be kept for U.S. citizens or from key allied nations at American universities. The manufacturing base would mean securing incentives and aid to manufacturing industries, component by component, part by part, to secure American leadership and distinct advantage.  Job losses have to be reversed and industries relocated back to the U.S. And only in cases where it is advantageous to manufacture overseas to relocate in allied countries India, Japan or South Korea. U.S. labor has to be brought into the picture as a key participant in the national interest and given an important role. R& D efforts have to be developed component by component, technological part by part, and technology by technology, so that a systematic plan can be followed to secure American leadership for the rest of this century, is what experts including this one say is required today. ...

LyrArc Article Gist
Italian born Canadian Sergio Marchionne, a former tax consultant turned auto executive who joined Fiat in 2004, planned the acquisition of Fiat in 2009. GM's payout to Chrysler following a decision not to acquire Fiat, and the U.S. government's need to merge Chrysler with another auto company after a bailout, gave Marchionne the opportunity to acquire Chrysler on favorable terms. Hard bargaining with the government led to acquiring Chrysler for free, using the $2 billion from GM to show the government that it would make the needed investments to bring Chrysler back from bankruptcy. This decision, the bringing in of outside talent, and the revival of the auto industry following the bailout, has led to the success of Fiat Chrysler.  Sergio Marchionne had the right instincts to persuade the government that Fiat with its small cars including the Fiat 500 was the right company to run Chrysler, and supporting president Obama's fuel efficiency goals gave him the right credentials with the Obama administration. A chain smoker of cigarettes who also gulped down espressos, her was a workaholic sometimes carrying 5 smartphones. He passed away at the age of 66 from health complications. Ironically the Dodge Dart was presented as the car that would get 40 miles per gallon. Other efforts at fuel efficient automobiles have not happened in the way it was envisioned by the Obama administration. The Dart did not become popular. Only the redesigned Fiat made it as a hit in Europe. The plan to import small Fiats to the U.S. remained only on paper. As the auto industry revived Marchionne canceled plans to make nearly all of the Chrysler cars and shifted production to more popular Jeeps and Dodge Ram, a move followed by Ford and GM. Fuel efficiency issues from the bankruptcy period are still alive today with the decision to leave small car manufacturing to Japanese and German carmakers, and the efforts of the Trump administration to turn back the Obama administration fuel efficiency targets.  ...

LyrArc Article Gist
In the second quarter 2011 Goldman's revenue from trading, bonds, commodities and currencies declined 53% to $1.6 billon from $3.37 billion in the prior year. Goldman's value-at-risk, or VaR, declined to $101 million from $136 million the prior year. This indicator measures the dollar amount Goldman has at risk on any day at its trading desks. Goldman plans 1000 job cuts. Goldman set aside $3.2 billion in the quarter for compensation and benefits, a decline from $3.8 billion the prior year. Goldman's CFO says it was harder to navigate the volatility in markets in 2011 because of the political issues that were very difficult to analyze or predict.

LyrArc Article Gist
It may come as a surprise to know that there are as many new Saudi Arabian students in the U.S. as there are from Japan. Saudi Arabia sent 22,704 students to the U.S. in 2010-2011, according to the Institute of International Education. A big factor is the King's scholarship program which draws from all segments of the Saudi society. This is likely to have an impact on the modernization of Saudi Arabia.

LyrArc Article Gist
Mexico has emerged as the world's fourth largest exporter of cars in 2012 after Japan, Germany, and S. Korea. Mexico is expected to surpass S. Korea in a few years. In 2011 2.68 millon cars and trucks were manufactured in Mexico. Honda, Nissan, VW and other companies are building new plants in Mexico. Exports in 2012 are expected to reach 2.14 million cars. With the increase in wages in China's auto plants Mexican wages are highly competitive with China, considering the proximity to markets in N. America and Latin America. Wages in Mexico are about $40 a day for assembly line workers. By comparison wages in China are about $3 an hour. Honda plans to manufacture its Fit small car in Mexico. VW executives say a VW car made in Europe is imported into Brazil with 35% duty, into the U.S. with a 25% duty on trucks, and this can be avoided by making automobiles in Mexico. The quality and reliability of vehicles made in Mexico compares well with vehicles made in Japan, according to Nissan, and productivity at plants is high. There is also good avialability of engineers and plant workers. The growing automobile production also means new plants of auto suppliers from Japan, Germany and other countries in a snowball effect as new auto plants open creating new demand for components....

LyrArc Article Gist
Huaneng Power China's largest power utility company announced that electric power generation went up by 40% in the 1st quarter of 2010. Datang International Power said its electric power output was up by 33%. Continual power plant construction has led to China building 80% of the new generating capacity in recent years. Over the next 10 years China plans to spend $150 billion or so to increase capacity nine fold- it already has 21 nuclear plants being built. Much of the nuclear plant building knowhow is being acquired along the way. The Lingao plant in Guangdong which was started in 2005 and will be completed this year, uses 50% local content. In the next unit to be finished in 2011 it will reach 70%, and by 2012 China expects to reach 100%, and gain the ability to export its knowhow.

LyrArc Article Gist
The ECB reduced a short term lending rate to 0.75%. The People's Bank of China reduced its one year yuan lending rate by 0.31% percentage point to 6%. The Bank of England increased its bond buying program by 50 billion pounds to 375 billion pounds.

LyrArc Article Gist
Apple's deal with IBM in 2014 to jointly develop apps and mobile services for business customers.

LyrArc Article Gist
U.S. Federal Reserve minutes for Sept. 16-17, 2014 released October 8, show the mood shifting away from raising interest rates, as a stronger dollar and weak overseas growth are likely to lower U.S. economic growth, A stronger dollar is likely to keep inflation down. Fed officals showed serious concern about slowing economies of Europe, Japan and China lower U.S. exports. A former Fed adviser Jon Faust, director of the Center for Financial Economics at John Hopkins University, says even with no action from the Fed on interest rates, the stronger dollar makes financial conditions more restrictive, and acts as a tightening. The Fed minutes are before the crisis in Hong Kong which created geopolitical tensions and affects foreign investment climate for China, reducing Chinese growth even further.

LyrArc Article Gist
Lenovo is accelerating the integration of Motorola Mobility operations into Lenovo in 2015. About 40% of the 100 million plus smartphone shipments planned in fiscal year 2015 will be Motorola Mobility phones, compared to 30% of the 85 million shipped in 2014. Motorola phones will be priced in the $400 plus range and Lenovo's own smartphones below that price level. The focus is on reducing costs and sales growth to turn around the Motorola Mobility brand quickly. Lenovo is now in third place after Samsung with 241.5 million shipments and Apple with 169.2 milllion, for the first three quarters of 2014, according to IDC. Lenovo faces intense competition from Xiaomi and Huawei in China and emerging markets.