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Hyundai is benefitting from the popularity of small cars. Hyundai increased sales in June year over year by 14% when USA auto sales declined by 8%. Its Elantra compact sales went up by 69%, its Accent subcompact sales increased by 91% and sales of its midsize sedan Sonata went up by 24%, according to Autodata. Hyundai which was trying to go upscale with the sedan Azera and the Genesis which was designed to compete with Lexus, is now focussing on small cars and trying to increase its share of the market with smaller cars. It will introduce a new Elantra wagon for the USA this year, the first of about 6 new small car models it hopes to bring out in the next 5 years. Hyundai is also considering manufacturing the Elantra at a new plant in West Point, Georgia, which was previously going to make a pickup and a SUV for its affiliate Kia Motors. The popularity of its small cars and the weaker Korean currency are helping Hyundai post large operating earnings with estimate of $2.3 billion this year, up 25% on sales of $33.7 billion, up 11%, according to brokerage Korea Investment and Securities. Sales of Hyundai SUV's are suffering the same fate that other SUV's are facing, down 41% in June 2008....

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Greece's GDP will decline by 10% and unemployment go up from 16% to 26%, according to the IMF. Yet Greece is coming out of the crisis better having acted early in mid March 26 days after the first case on Feb 26 to impose a lockdown. The country had Day 50 with 2,192 cases and 102 deaths. Greece will reopen gradually on May 4.

Greece's long economic crisis actually helped as people realizing the weak condition of the public health system after cuts in spending, were keen on cooperating with government action. Some family members are elderly in every family and this also played a part with Greek culture placing importance on protecting the older members of society.

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Christopher Ward, appointed executive director of the Port Authority of New York in 2008, and three engineers from the Port Authority, Pagliettini, O'Connor, and Puza, are the men behind the new look of Ground Zero. The 16 acres of Ground Zero, say observers, have changed at a remarkable pace and the whole place is coming to life. The goal is to have the project completed by the 10th anniversary of the 9/11 events, and have New Yorkers back to where they were before it happened. The fountains, oaks planted, the square, 104 stories tower and the names of the dead inscribed along the borders, returning it to New Yorkers and letting the symbolism speak for itself.

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Distorted priorities from the last 2 decades and lack of investment allocation for healthcare are hurting states in the U.S at a critical time. With 16 million cases of coronavirus and 300,000 deaths in December, including over 3000 deaths a day by December 12, the situation is dire. Yet states lack the billions needed to conduct the vaccination program to pay for the trucks, get the refrigeration and storage, pay the nurses and the medical personnel, outreach costs, and other costs for a massive vaccination program. Some estimates are that states need about $9 billion for the vaccination programs. New York alone needs $1 billion. For years billions of dollars were wasted in distorted priorities that benefited certain groups at the expense of society as a whole. The very large companies that benefited paid little or no taxes. 

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The caretaker government of prime minister Mark Rutte in the Netherlands will commit to following austerity plans in its Stability Program report to the European Union. Elections are now set for September 12, 2012. The government was able to get the support of two smaller left-leaning parties to austerity plans. Opposition parties have questioned the policies and said they will reverse them if elected. Rutte's Liberal party and Jaeger's Christian Democrats, with the help of the Christenunie, D66, and Groenlinks, now hold a slim 2 seat majority in the 150 seat Dutch parliament. The Freedom party that had previously supported Rutte withdrew support for austerity policies that it said would hurt pensioners. The moves help avert a credit ratings drop by the credit ratings agencies leading to a loss of the Dutch triple A credit rating. The measures will increase the sales tax from 19% to 21%, make health care spending cuts and impose a pay freeze on civil servants. Savings achieved will be 11 billion euros. Rutte described his actions as: "the government's respose to the acute crisis in confidence in the financial markets." Earlier in the week Fitch Ratings had threatened to lower the Netherlands credit rating. The measures will reduce the Dutch deficit to 3% in 2013 from 4.5% in 2012 to meet EU fiscal compact rules. The changes to the health system are part of changes advocated by the OECD and the IMF because of surging health care costs for an aging Dutch population. There is concern about the sales tax increase because of its effect on consumer spending, and recent comments by S&P managing directors and others in financial markets emphasize the need for economic growth, as austerity measures by itself are inadequate solutions....

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The in-house manufacturing approach has benefitted Lenovo. This was especially evident during the flooding in Thailand when PC manufacturers were faced with a shortage of hard drives. Because Lenovo assembles its own computers unlike competitors Dell and H-P, it was able to move quickly to focus on products for which hard drives were available and emphasize high profit margin products. The additional flexibility and speed helped Lenovo increase market share from 13.7% to above 14% in the 4th quarter of 2011, and ship 13 million computers. H-P experienced a market share decline to 16% in the 4th quarter 2012 from 18% the prior quarter. Profit for Lenovo after several years of losses was $473 million for the fiscal year ending March 31, 2012. Lenovo co-founder Liu Chuanzhi and Mr Yang took control in 2009 and refocussed the company on China and emerging markets leading to increasing sales. Mr. Yang has been with the company since 1988, when it was not called Lenovo. He became CEO in 2001 and recently he has taken the post of CEO and chairman. Yang's four year plan in 2009 was focussed on increasing its network of resellers in China to the point that even in rural areas customers could reach a Lenovo store with customer service. At meetings in 2009 the decision was taken to increase in-house manufacturing to 50% from 30%. Lenovo hoped to gain an advantage with its own manufacturing capabilities in working closely with suppliers to come up with differentiation in key components such as display screens, battery and storage, and improve existing products for a market edge. Lenovo is also promoting its brand with increased advertising to promote customer acceptance of the brand....

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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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Indian efforts to develop and produce the booster vaccine.

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Japan release of 80 million barrels of oil from about 470 million in its total oil reserves for emergencies- March 18 2026. It gets 90% of its supplies from the volatile Middle East and little has been done about this leaving Japan in a situation similar to Germany when it under Merkel allowed an over dependence on Russian oil. The Nordstream pipelines built at cost of billions to transport Russian oil to Europe are now remaining unused after the Ukraine war in its 5th year. 470 million barrels or 254 days of reserves cannot support the Japanese economy in wars that stretch out over longer periods. 

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China's exports to US declined by 30% in 2025 from $438 billion in 2024 to $308 billion in 2025. The US trade deficit with China declined by 31% from $295 billion in 2024 to $202 billion in 2025. US had a $178 billion trade deficit with Vietnam and some of this could be China's exports to the US through Vietnam and this should be taken into account. For the world as a whole China had a trade surplus of $1.2 trillion in 2025 as it continues to push its exports on the rest of the world.

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Naval blockade of Iran cutting off oil exports and securing the Hormuz for navigation April 12 2026. Speaking on Hannity TV show General Keane and South Carolina Senator Graham say the goal is to get the enriched uranium out of Iran. Senator Graham says the Pope is a good man but he has no idea about the danger posed by enriched uranium in Iran and the development of a "dirty bomb" and ballistic missiles. The US Navy is able to control the seas around the Gulf and the Red Sea to check all sea traffic in the area and has all the capabilities to do this.

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US shifts to Naval Blockade strategy, says ceasefire on, no war powers authorization needed from Congress. Naval blockade started on April 13 on its 18th day on May 1. It means Iran's economy is affected by lack of oil revenues to finance the economic needs the longer the blockade goes on, with US goal to remove danger of nuclear materials inside Iran requiring ti to be shipped out to Russia or a third safe country. This is a goal that is supported by all nations that do not want to see nuclear weapons in a dangerously volatile region with 5 decades of wars by 2025.

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German Chancellor Merz says welfare entitlements are becoming a strain on the economy. The welfare entitlements growing in size puts huge strain on the budgets of US, Germany, UK, and France. Small changes in the Medicaid program in work requirements became politicized in the US spending bill passed in Congress. The size of the Medicaid program in 2025 is an example. Started in the LBJ administration it was $1 billion in 1965 covering 4 million people increasing to $10 billion covering 20 million people in 1976. 50 years later it covers 3.5 times the number of people at 71 million at a cost that is staggering of $900 billion. US population in the 50 years increased from 218 million to 342 million by 57% when the Medicaid population grew at 355% of 6 times the actual population growth showing that the country in some ways was growing much poorer and unhealthier and that other factors were also at work. As a percentage of the size of the economy  Medicaid growth was $10 billion when GDP was $1700 billion in 1975 or .00059% vs $900 billion when Medicaid is $900 billion  when economy GDP in 2025 is 30,000 billion or .03000 which is 50 times the percentage in 2025 vs 1975. At work in this is the ballooning cost of the way medicine is practiced in the US, and other factors.   ...

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Hillary Clinton's estate tax plan would increase the estate taxes on the largest estates from 40% today and her proposed 45% to the higher figure of 65% proposed by Senator Bernie Sanders. Compared to the current $5.45 million exemption only the first $3.5 million would be exempt from estate tax for individuals ($7 million for a married couple). The top rate of 65% would apply to individuals with over $500 million. Beyond $10 million a 50% rate, and beyond $50 million a 55% rate.

The latest proposal adds $260 billion over 10 years adequate to pay for simplified small business taxes, and for expanding child tax credit.  Over 10 years Clinton would increase taxes by $1.5 trillion to pay for expanded education assistance, paid family leave and other programs. She would increase federal revenue by 4% and have the burden fall on only a small portion of households.

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Gallup found last summer that only 16% of Americans polled had "quite a lot" of confidence in newspapers, in its decades long polling of "Confidence in Institutions." For TV news only 11% trust it. Bret Stephens of NYT says the right approach to give marginalized communities a voice is to create more diverse newsrooms not let objectivity be eroded. He reminds people that in a democracy its not just about reporting, it's also about listening, listening to all the people. He quotes Arthur Miller- "A good newspaper, I suppose, is a nation talking to itself." President Biden showed this in his State of the Union address, by working hard to listen to what the nation is saying about itself, about communities all across America that were for too long being ignored while jobs were sent overseas and communities suffered. For far too long, a period that stretched into four decades, turning them into the "invisible" people. Ninety years after Carl Sandburg's "The People, Yes" the task is one of restoring that voice of the people of America. About Lincoln, Sandburg wrote that he said Yes to the paradoxes of democracy, Yes to the hopes of government, No to debauchery of the public mind, Yes to people struggling in the middle of illusions, which of the faiths and illusions would he or she choose for his portion of the light, to take one out of the wilderness. If death was in the air, so was birth.   ...

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About 19% or one in five do not have access to books at home in Britain, new research shows. A recent report shows 51% of parents find books just too expensive. The National Literacy Trust Report shows 64% of parents say the amount of money they have to spend on books has decreased. The findings are alarming as 1 in 13 children do not read at all, and only half of the children read daily.  This has serious repercussions on children's futures- in school, in college and in the job market. Reading habits develop with access to books at home and at libraries. Owning books encourages children to develop reading habits. The very basis of the fair societies and democracy of the UK, US and Europe is the access to books and reading for all parts of society and people at all income levels. Without this democracy cannot be sustained as the population is less and less literate and unable to preserve and protect its freedoms or misled by political leaders. The current threats to freedom Mr Biden has pointed out at Independence Hall in Philadelphia arise from this neglect that opened up with the neglect of manufacturing communities in the US and Europe which gradually eroded incomes and access to the goods and services that were opened up through the improvements of the last half of the 20th century. And improvements then lost in the "free markets" period of the last three decades that shifted manufacturing and jobs overseas, and reduced incomes of ordinary people.  ...

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Pressed by tariffs from DJT China is trying to become technologically sufficient, yet this comes at a considerable cost, says this report in WSJ. Made in China 2025 was put out in 2014 when president Xi was beginning his plans for the Chinese economy. It is 2025 now and a look at the nation's investment plans show China putting $250 billion a year in advanced manufacturing sectors from automobiles to solar panels and AI, says Centre for Strategic and International Studies CSIS in Washington. This is giving China an edge but at the cost of using up valuable resources and some wasted spending at a time of stagnant government revenues. China's new production needs new markets with overcapacity such as in the electric automobile industry. This overcapacity comes at a cost when the US and other countries are restricting imports from China with new trade policies. During the DJT first term in 2016 China pulled back reference to make in China 2025 but this was temporary and China's 2021 Economic Plan puts top priority to be self sufficient in Science and Technology. Industrial support for EV's went from $15 billion in 2019 to $45 billion in 2023 (CSIS). 48% of 11 million new vehicles were EV's in 2024 with BYD and Geely the main ones of 100 brands. In shipbuilding $132 billion was invested in 2010-2018 taking China from 5% in 1999 to 48% of total manufacturing of shipbuilding in 2025 worldwide. The same is true for manufacturing aircraft and chemicals. ...

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This story in the NYT showing America's GE building a wind turbine three times as large as the Statue of Liberty in New York harbour, comes after a decade of bad news from GE, beginning with its role in the mortgage financial crisis when its stock dropped to new lows. Bad bets on conventional power generation in its power division are leading to the change at GE where it is now investing in renewable energy. Under CEO Immelt GE did not anticipate the surge in growth of renewable energy powered by government subsidies. Now GE is pursuing an aggressive strategy by building larger wind turbines than its competitors Vestas in Denmark and Senvion in Germany. A 12 megawatt turbine is planned by GE called Haliade-X, to be built at a cost of $400 million for demonstration in 2019, shipping units in 2021. Competitors are looking at building a 10 megawatt wind turbine. Vestas SA and Mitsubishi Heavy Industries have a 9.5 megawatt wind turbine in operation as prototype in Denmark. The bit of good news comes with the backdrop of big changes at GE as its power division falters badly. GE under Immelt badly misjudged the market for gas and coal turbines, building inventory and resorting to aggressive pricing, not anticipating the push evident in Germany and in China towards renewable energy. The shift to renewable energy reduced demand for conventional power in Germany and the U.S. In Germany. Electric companies in conventional power generation are struggling. At GE orders declined by 25% and profits by 50% in the 4th quarter over the prior year. 12,000 job cuts are planned in the power division, 18% of its workforce. Older board members at GE are expected to leave, and GE under new CEO/Chairman John Flannery plans to shed $20 billion in assets in a major restructuring and shift to renewables.   Larger wind turbines of 10 megawatts or larger are the next stage in wind energy as the Netherlands and Germany move to build wind farms free of subsidies. The economics of larger wind turbines are critical as less geographic acreage is needed with larger turbines. ...

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It is OK to haggle in this economy says this report in WSJ, and shows how to do it. Because retailers are increasing their profit margins significantly. Here is advice. From an expert at the University of Pennsylvania - try practicing with a script and always show respect.  An expert at Carnegie Mellon University says if you never hear no then you have not been assertive enough. Food prices are up  5-10% in the US, 15-20% in Europe. Car prices are up significantly in US, so are airline prices. Prices of all kinds of products are up out of line with anything that happened in the past.

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About 14 million people or 16% of Turkey's population is in the earthquake zone. Much of the area is in rubble and people say there is not the equipment and support to find family members trapped in the damaged buildings. Millions are homeless, sleeping in tents, cars, and next to open fires in the wintry cold, says this report in WSJ. Criticism is mounting says this report that the response in the first 48 hours was slow and uncoordinated leading to loss of lives. Turkey which faces 200 earthquakes above magnitude 4 each year has faced earthquakes before, and knew that one like that in 1999 could happen again.

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Phased retirement is getting greater acceptance from management in the US. In 2021 23% of employers had these arrangements up from 16% in 2016, according to the Society for Human Resources Management. Of this 8% have phased retirement on a formal basis, and 15% have this on an informal ad hoc basis. Human resource experts say that companies should leverage the voice of experience rather than lose this valuable resource with shift from full time to 100% retirement in one move.

A survey by Mercer LLC of executives worldwide show 38% of executives saying they offer phased retirement, which show a definite trend in favor of phased retirement in 2022. 

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Britain's Office of National Statistics shows that the deaths during this pandemic match the deaths during World War I in 1918 and World War II in 1940. The vivid picture of Winston Churchill at Coventry Cathedral in England with this story in The Times tells a lot about what has happened and what is happening today. There were 608,000 deaths in 2020 exceeded only slightly by the deaths in 1918 when deaths were 611,000. 1940 showed a jump of 16% from 1939 in deaths, 2020 showed a 15% increase.

With 168,000 of the deaths in private homes there is say health care experts "a silent crisis raging."

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France's finance minister Bruno Le Maire announces a $45 billion effort to cap energy price increases for electricity and gas to 15% increase. Earlier efforts had capped the increase to 4% till the end of 2022 in a tariff shield (bouclier tarifaire). France's public accounts minister says the budget being presented is "a budget to protect." Windfall taxes on energy companies will reduce the cost of the $45 billion to $12 billion. Other protection is offered in the form of increasing income tax brackets by 5% to lower the tax burden. In the absence of this effort the energy prices could have increased by more than 60%, says the Finance Ministry.

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President Biden has asked for $18 billion for child care stabilization, the children's infrastructure of today. Republican controlled Congress is not responding. Nationwide 16000 childcare providers closed their doors across 37 states in 15 months of 2020 through March 2021. Childcare givers in the US make less than parking attendants, says this story in The Washington Post. Federal grants provided help in Wisconsin and other states, but this money dried up and more childcare centers have closed. This is the soft infrastructure that America needs and is so crucial- for its children and for mothers and fathers. The losses reverberate through local economies. And it disrupts parents, especially mothers ability to work.