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The stimulus checks in government pandemic aid packages are being spent prudently in the US. Government aid checks were sent out in the first wave since March 2020 and now again in the second wave in 2021. The stimulus pandemic checks are being allocated wisely. A Federal Reserve Bank of New York study shows that Americans saved about 36% of the first stimulus payment checks, 29% was spent, and 35% was used to pay down debt. For the second stimulus payment underway in 2021 this survey also shows Americans are expected to spend even less and use even more to pay down debts. With stores mostly closed, travel restricted, and consumers not having the opportunities to spend, and the sense of insecurity, additional income from unemployment checks, saving has increased. Americans saved $1.4 trillion in the first 9 months of 2020 compared to half that in the same period in 2019, according to analysis by Berenberg Economics. That amount is about 10% of household spending. The tight spending during 2020 means, say economic researchers, that spending will jump in 2021 after the vaccination drive. The trend is positive in that Americans tended not to save enough. People in China and India, tend to save more giving government a larger pool of savings to draw from in national infrastructure spending. In November 2020 Commerce Department estimate is that saving in the U.S. was 12.9%, up from 7.5% in November 2019. Anecdotal evidence shows U.S. savings accounts for people at the lower end of incomes have been depleted for years, hit by the unemployment of the 2009 recession. This was caused by errors by the banking community and business. To this is added people in arts and culture, people in professions involving contact, travel and leisure, food, during this pandemic ten years later. National priorities need to be set to bolster this part of American society and its core social fabric. The steps to bring home manufacturing jobs under Mr. Trump and the "Buy American" initiative under Mr. Biden is just the first step. More steps are needed and the resources, implementation and drive to bring America back to the healthy society of social cohesion and upward mobility aspirations under presidents Truman and Eisenhower in the 1950's. ...

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This WSJ picture essay report from Afghanistan shows life in different provinces, and the road north from Kabul to Herat on the Iranian border. It says that while the Taliban restrict freedoms, the end of the fighting brings peace to the countryside so long plagued by war, and relief for Afghans from endless war.  It also is year of a severe drought that is expected to cripple agriculture, the worst since 1980. It was just this kind of drought in 1972 that crippled agriculture leading to a famine in the country under King Zahir Shah. For some 300 years since 1700 the British kept foreign powers out of the British Empire's surrounding regions including Afghanistan and Tibet. That drought led to the King's brother-in-law taking control of the country in 1974, conducting a repression of Communist leaders who responded by action inside the military leading to 2 communist factions inside the military taking control. These factions fought for control and invited the Soviets into the country with a friendhship treaty. India under prime minister Indira Gandhi had just fought a war in 1971 to set up a free nation of Bangladesh out of the old East Bengal. It had to deal with millions of refugees from Bangladesh in 1971-72 when these changes were taking place in Afghanistan. British policy had maintained peace for so long but Indira Gandhi was not aware of the dangers from the ousting of a king who had ruled since 1933 and the wars that followed. Bringing Russia into Afghanistan after centuries of peace led to the first error America made fighting a proxy war in Afghanistan under the Reagan policy. After a brief period following a ten year struggle and withdrawal of Russia, the US entered Afghanistan in a 20 year conflict which led to the withdrawal this year. President Biden finally ended the war saying Afghanistan had never been united in its history. Because of the far flung provinces and mountainous terrain, the nature of the country, this is correct. It is also a graveyard of empires which is why the British carefully, rigorously carried out a policy of no foreign powers in Afghanistan and Tibet, both neighboring India, ensuring peace since 1700. ...

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The Economist magazine says Mr. Trump's claim that he could fix things because he is an outsider is now quickly proving to be false. The lack of experience works against the Trump administration as it stumbles from one crisis to another. The tweets that were used to turn voter sentiment against opponents now work the other way. There are other problems that are noted here but not emphasized to the extent they need to be. Mr. Trump, as Peggy Noonan, a Reagan aide, has pointed out in the WSJ, risks alienating the very blue collar vote, and older voters whose interests he claimed to defend. This happened with the Ryan Republican House health care bill as millions of poor Americans approaching retirement were one of the worst affected groups. The Economist points out that the next project to tackle tax reform has the same possible consequences for the Trump blue collar base, as it says Republican plans for tax reform are seen as regressive. Tax reform has eluded previous administrations, and requires more experience in building coalitions which the Trump administration lacks in its confrontational attitude towards Congressmen on both sides of the aisle who disagree with him. Improving the U.S. trade position, infrastructure investment are other areas that the administration plans to tackle, yet the first 100 days show that the lack of experience and the lack of a calm composed mind is hurting the Trump administration, to the point of policies that hurt the very voters who put their faith in the Trump administration to improve things. A similar process is unfolding in Britain as it faces a Brexit negotiation that the Economist points out has been badly handled by prime minister Theresa May, and could lead to worsening the economy if no deal is reached because the European Union sees that it is not in its interest to do so, and Ms. May realizes only later that she has taken nationalist sentiment a bit too far for a European economic arrangement to work and provide mutual benefit. A continent wide economic arrangement that it was the wisdom of past leaders from Britain, France and Germany to support for over six decades is not easily undone by one vote, or one government. ...

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Emmerentze and Germano provide this exceptional look with wide ranging interviews at a brand which has failed to make headway in the U.S. market for 2 decades, after being a prominent brand in the 70's and slipping ever since. Adidas share price declined by 38% in 2014, declining to 57 euros, recovering to 70 euros by March 2015. The economic crisis in Russia affected Adidas sales. A major problem area is the U.S. market where Nike has made major progress, and other competitors such as Under Armour and Skechers are rapidly increasing market share. Adidas is now No. 3 behind Under Armour in retail sports apparel and footwear sales, according to Stern Agee and SportsScanInfo. The U.S. operation has been tightly controlled from headquarters in Herzogenaurach, in a rural part of Germany. During CEO Herbert Hainer's leadership since 2001 share price quadrupled but the U.S. operation has languished, because say retail experts the operation does not reflect the culture savvy management style of Nike and other U.S. competitors. U.S. sales are 43% of the global athletic apparel and footwear market, and the global market of $51.6 billion moves in relation to fashion trends set in the U.S. market. CEO Hainer and managers in Germany are seen as very focussed on spreadsheets and analytical approach to sales in over 100 countries. The only design studio outside headquarters in Portland, Oregon, was setup in Brooklyn, N.Y. recently, and the 4th CEO during Hainer's leadership since 2001 is the first to be given some degree of autonomy in making design and marketing decisions. Nike's market share in athletic footwear has increased from 35% in 2005 to 47% in 2014, as Adidas remains stuck at about 10%. The Reebok acquisition for $3.8 billion in 2005 is seen by U.S. Adidas managers as a distraction. Retail store executives visiting Germany say Adidas product cycle from design to product introduction of 18 months was just too long to meet the rapidly changing preferences in the U.S. This is now being cut to 6 months. In recent years Adidas has expanded rapidly in emerging markets but management has failed to grasp the fact that trends in growing markets such as China, India, Brazil and Mexico are set by pop culture trends in the U.S. ...

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The NYT's Kristof gives this exceptional report on the use of cancer causing chemicals all around us in many consumer products. With the increased use of chemicals has come the tripling of asthma rates in the last 25 years, leukemia up by 1% a year, increasing obesity, and breast cancer rates increasing from 1% in 1975 to 12% today with only some of it from better detection. Doctors at the Mt. Sinai School of Medicine in New York, say American girls who had puberty at the age of 17 in 1800, now have puberty at the age of 14, even 12. Earlier menstrual cycles increase the risk of breast cancer because of increased exposure to estrogen. Studies show exposure to pesticides, PCB's and other cancer causing chemicals increase the risk of cancer, and a link to early puberty. Asian women moving to the U.S. are also experiencing higher rates of breast cancer as they move to societies with higher use of chemicals in daily life, say experts at Mt. Sinai. Poor eating habits and lifestyles with less exercize are also to blame, but chemicals also play a role. Americans are moving towards shunning packaged processed foods for fresh food in their diet, and more are learning the benefits of regular exercize, but the same degree of public awareness is lacking for the extensive use of chemicals in our consumer society. In other societies around the world that are copying us such as in China, India and Brazil, the situation is even worse, with the spread of a reckless idea that modernization requires jettisoning health safety concerns. Even a simple pizza box has PFAC's chemicals made to make the box resistant to grease. In 2015 where products are labeled environmentally friendly by large companies to attract buyers and build the right image in the minds of consumers, consumers asking questions and making better choices make a difference by offering a seal of approval. Carpets have chemicals, and most disposable plastic containers contain chemicals that could seep into the food if heated. The use of plastic containers and microwaves is common practice in todays society, where less cooking is done on the stove than in the period before 1960. The sheer size of the chemicals developed since 1950 is staggering- more than 80,000 chemicals according to the Children's Environmental Health Center at Mt. Sinai. And this Center says less than 20% have been tested for toxicity. ...

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President Trump reiterated his threat to place tariffs on $300 billion of Chinese goods in addition to earlier tariffs on $250 billion in goods.  The problem China faces is that it China imports less, far less than the U.S. does. China has only $10 billion in U.S. goods to place tariffs on. This is after placing tariffs on $110 billion in U.S. goods, mostly agricultural products such as soyabeans in retaliation for U.S. tariffs on the $250 billion of Chinese goods. China could place a ban on imports from Boeing or restrict the access for U.S. companies to the Chinese market. U.S. companies have invested billions of dollars in the China and employ about 2 million Chinese in well paying jobs. Concerns about unemployment would be uppermost to prevent these jobs being affected. Other concern for China is the loss of foreign investment as relations deteriorate. Already supply chains in some products such as clothing and consumer products is shifting other countries in Asia. In automobiles the regional hubs are expected to shift with India as a potential hub for Asia, and Mexico preserving its place as a North American hub following renegotiation of NAFTA. In media the dispute is leading to a shift from Chinese consumers buying Adidas instead of Nike and Huawei smartphones instead of Apple.  For an already slowing economy this hurts China more than the U.S. which is why the U.S. is pushing China to settle with an agreement that the U.S. can trust to bring down China's trade surplus. For the U.S. as most of the loss in exports is in agricultural products the solution has been to provide government aid to farmers, and for Mr. Trump to use the issue to point out that he is fighting for U.S. interests and for fairness. This is why the trade dispute poses more problems for China. Because the surplus is so wildly skewed in China's favor after the inaction of many U.S. presidents just as it was for Japan in the eighties, the situation appears to be headed towards a definite reversal of the lopsided trade surplus enjoyed by China. In the process the U.S. plans to build up the competitive edge it has lost to some degree.  ...

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The failure of regulators is one of the features of the last decade leading to the losses of capital that could have been better allocated to infrastructure, health education and paying down debt in the U.S. and Europe. This WSJ report says fintech or financial technology companies faced little regulation or critical oversight from regulators as regulators tried to foster growth in that sector. This puts more burden on shareholders to be vigilant, it says. Wirecard went into insolvency with huge losses and debt and accounts in the Philippines for over a billion dollars that were later proved not to exist. The astonishing aspect of the Wirecard scandal is the way German regulators not only did not investigate but pushed back against critics of the company's finances, that there was something fishy about the finances. Wirecard was established in 1999, and is described as a slow-burning story since 2016 when the stock price took off for a wild ride. This report says government regulators are relaxing important rules in the hope of coming up with a winner- this is proving to be a dangerous exercize and an exercize in folly, as it leads to losses of capital with no one taking responsibility among government officials or regulators. In the case of Wirecard the German officials even filed a criminal complaint against accusers, and banned short selling. of stock.    British and European financial watchdogs are acting as cheerleaders and watchdogs at the same time says the WSJ. Watch out it says when regulators play this kind of double role. During the financial crisis of 2008 the revolving door between companies being regulated and the regulatory agencies themselves was a defining feature of that period leading to huge losses of capital. Today this has taken on a new  and additional dimension, each time making things worse, even as infrastructure investments, investments in health and education are being deprived of capital because they benefit the public, and are not a benefit to small groups of well connected people willing to flagrantly conduct activities such as setting up accounts that do not exist for over a billion dollars.   ...

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At the end of 2008 China's crude steel making capacity was 660 million tons, but production was only about 500 million tons. The draft plan for steel industry for phaseout of backward production capacity onlyphases out 25 million tons. Capacity for automobile production is 12 million but only 9.37 million were sold in 2008. The government plan encourages mergers but not much thought has bee given to reducing capacity. About 30% of aluminium capacity is idle, 20% of cement capacity, and 70% of semiconductor production is idle. Some of this overcapacity may have to be written off at this rate says a World Bank specialist. The Stimulus spending of $585 billion would help utilize some of this capacity but the concern is that once its clear that 10% growth rates each year are a thing of the past there will still be alot of unneeded capacity that will have to be written off at great expense.

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British prime minister Theresa May, says Britain opposes the unilateral declaration of independence by the Catalan parliament. The Foreign Secretary and the shadow Foreign Secretary also expressed the need for Spanish constitutional integrity and sovereignty. The European Union has not supported the Catalan move.

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Thomas Bach is a German fencing athlete who won the Olympic Gold medal. He is from Wurzburg, Germany and was elected in 2013, in office as International Olympic Committee president till 2025. In the new election in 2025 Bach supported Coventry of Zimbabwe, a winner of the gold medal in swimming for the job, over a candidate from Spain whose father Samaranch held the same job, and COE a candidate from Britain. Other candidates were from Japan and France. The process of voting and the people voting is not representative of the world's people. As countries such as Germany and Spain are dominant. Britain and France, China and India have never elected a representative from their country as IOC president in the 20th century or the 21st. IOC presidents are there for long periods, as long as 20 years. Avery Brundage of the US was IOC president from 1952-1972  for 20 years followed by Morris of Ireland for 7 years. Following this in 1980 another 20 year term for a Spanish businessman Antonio Samaranch, whose son tried to run in 2025. In 2001 12 years for a Belgian Jacques Rogge, followed by another 12 years for German Thomas Bach.  In 20th century no one from France or Greece, no one from India or China has been elected IOC president and the election process is an insider's affair, even thought the games are watched in China, India and other parts of the world by hundreds of millions of people. ...

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Efforts to bring the two sides together for ceasefire succeed for Black Sea but hit snags along the way. Russia wanting to get sanctions lifted on it's Agricultural Bank to lift grain and fertilizer exports. A separate deal on not attacking energy infrastructure was negotiated.  Fundamentally NATO needed to be reconstituted at the end of the Cold War. Russia's apparent weakness was temporary as it converted to a market economy from the Soviet model. It's GDP is not a correct representation of it's capabilities and need for respect as an advanced European economy. With US-Russian cooperation nothing like Syria and Venezuelan disasters would have happened disrupting the fabric of American and European democratic systems. Russian conditions include ones that were clear from the early days of the war. Ukraine joining NATO threatens Russian security. That this was not to be allowed. And Ukraine to relinquish territory now controlled by Russia in Crimea and in Ukraine's east. DJT in the US has ruled out joining NATO for Ukraine. These territories have been integrated into Russia and it is unlikely that this would change so that continuation of the war after so many lives are lost doesn't make sense. Europeans particular Baltic Republics and Poland are concerned about Russian intentions- this too is not going to change by continuation of the war. It can be addressed by putting in concrete safeguards. ...

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Peter Orszag's role in the healthcare debate and the formulation of health care policy proposals. One proposal of Orszag, who heads the Congressional Budget Office, is to set up a new agency with powers to cut spending and implement changes in Medicare. Says Orszag, "one of the reasons we have such disjointed and skewed incentives is that we have an excessively political process." At a recent meeting with House Democrats, one Congresswoman said her top priority is winning higher payments for oxygen suppliers, and Orszag was taken aback. For years officials have been trying to cut payments to oxygen and medical equipment suppliers, which are said to be inflated. When a new competitive bidding process was set to take effect last year, industry supporters in Congress were able to delay the plan, and these supporters are still fighting to block changes says the WSJ. Here is a 40 year old Orszag, with degrees from Princeton and London School of Economics, who got his early experience in the Clinton adminstration at age 24. He then followed this with a number of policy oriented jobs, ending with appointment to head CBO in 2007. And he faces the whole system of Congressmen from both parties beholden to interests in the healthcare industry, who provide the donations for them to finance their election campaigns. Dan Eggen describes this in the Washington Post, 7/21/2009. Max Baucus of Montana, and to some extent Grassley of Iowa, are senators from both parties who Eggen points out are beholden to the healthcare industry because of large donations they receive from the interests in the healthcare industry. These interests want to see their payments system protected. The further escalation in health care costs, which would make the whole healthcare system unaffordable even as it delivers poor results, can only be prevented by making cost control an exercize that is not influenced by healthcare industry donations. Jackie Calmes describes the huge hurdles in achieving a deficit neutral move to universal health care in the U.S. in the NYT 6/26/2009. See the link. The exchange between Grassley and Orszag on the issue of the $177 billion in savings needed from the payments to health insurers under the Medicare managed care plans- which allow seniors to obtain Medicare coverage outside the government run program -went as follows. These are dubbed overpayments by outside experts and efforts have been made to cut them in Congress. When Mr Grassley raised concerns about the impact of such cuts in a hearing, -and Grassley has opposed the cut for this overpayment to insurers- Orszag responded saying: "I very firmly believe that capitalism is not founded on excessively high subsidies to private firms. This is what this system delivers right now." ...

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Drew Western, a professor of psychology at Emory University, asks the question about Obama that is on many people's minds- who is this man who wrote the book "Dreams of My Father." And what happened to him? It is as if he is asking did they conjure up something that didn't exist, was there really too little about the man in a book written when the young Obama was still in law school- about his experience growing up between two races, except a remarkable effort to grapple with that experience. It would say little about the man himself, the choices he would make, the decisions he would face as he entered his thirties, and forties, a period that provides the crucible and the formative experiences in the development of character. It is as if readers had appended their own chapter at the end of the book and conjured up many things that really did not exist. And which would serve as a kind of Rorschach test experience where readers were free to read into the picture whatever they wished to see- and something Obama could use to be all things to all people. Drew Western draws from his knowledge of psychology and his direct or virtual conversations with about 50,000 people to reflect and make some hypotheses about what has happened to Obama, or what Obama was always about. He starts by pointing out what was missing in the inauguration speech and has been missing ever since- a clear sense of narrative and a vision, a story about what had happened and how it could be made different in the midst of the global financial crisis of 2008-2009. Western provides several hypotheses for what has happened. Obama simply lacks the experience to handle the presidency -having been merely a community activist and not run a city, a state or a business, and had accomplished little before becoming president, and had an unremarkable career as a law professor having published nothing during his 12 years at the University of Chicago except an autobiography. And remarkably says Western voted 130 times in the Senate as "present" instead of "yea" or "nay," suggesting a tendency not to take a stand on difficult issues. The auto fuel efficiency standards issue may be the singular exception. The challenges of a presidency are much larger, and the challenges in 2009 were even greater. Obama could not measure upto the task. A related hypothesis is that given the lack of experience and the inability to make the narrative because of an unresolved identity, Obama is willing to do whatever it takes to dial for dollars and get re-elected. ...

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Brings together Intel, tapping into its server technology and the One Laptop Per Child Project of Mr. Negroponte at MIT Media Lab. Advanced Micro Device joined up in 2005. The price of a PC has been brought down to $100 by the One Laptop Per Child Foundation. How much impact will the project now have, now that a number of backers have joined the effort? Two competing approaches, how has that been resolved? Intel based on training teachers, One Laptop based on self learning in groups, Intel using Windows, One Laptop using open source, one controlled by Intel and Microsoft and less price sensitive and the other more chance to bring price down as its open to any manufacturer or software developer thats right for the goals of One Laptop.

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Coventry, Hull, Bootle, the list goes on and on, the cities destroyed in the Blitz as England was bombed in the Battle of Britain. Then there are the German cities Essen, Dresden. In Ukraine Kharkiv, Mariupol are 90% destroyed says this report in The Times. What has been destroyed is shown here in figures and pictures. The Times looks into how will it be rebuilt and the cost.

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Ruth Igielnik of the NYT says judicial elections in Wisconsin have always been non partisan. The politicization is recent since 2011. In 1990 there was little correlation between court picks and partisan races, today the correlation is almost exactly, as she shows on a graph. State Supreme Court election results in Wisconsin and US presidential election results have become increasingly correlated from 0.3 in 1990 to 0.95 in 2023.

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Responding to criticism of the Clinton Foundation which has affected Hillary Clinton's ability to win voter support in her contest with Bernie Sanders, the Clinton family has decided to take action in August 2016. The Clinton Global Initiative will be discontinued in 2017. Bill Clinton and Chelsea Clinton will stop raising funds for the Clinton foundation. The Clinton Foundation will not accept funds from foreign donors. What started as a do-good effort to raise funds for worthy causes such as world health, poverty and hunger turned out -because of its very success in raising large amounts of money from corporate donors- into a distraction for the election campaign of Hillary Clinton in 2016. It opened up Hillary Clinton to charges of having conflicts of interest from outsiders Sanders and Trump. Hillary Clinton discontinued her association as a board member of the foundation in 2015 when she began her campaign. Bill Clinton continued to give paid speeches and raised $2.6 million. All that fund raising appears to have been a big mistake and not even fair to the candidate, as it gave rise to misperceptions about the candidate going far beyond what the Clintons ever understood about was happening. As former Labor Secretary Robert Reich put it, it gives rise to accusations of impropriety that may affect an election, without the voters getting a chance to evaluate the candidates on the basis of what each candidates program or agenda is. In this the Clinton family may have realized that in retrospect the entire foundation activity appears to be a small matter, when put next to the choices facing the U.S. and the world in 2016 for the next decade and beyond. The Clinton Foundation in future would be managed by people independent of the Clinton family and circle. The next step would be setting it up as a public foundation, a new board and professional staff. Was it all worth the problems it has created for voters being able to get a clear idea of what each candidate offered, an not acting as a huge and dangerous distraction which Hillary Clinton and the country and the world could do without, considering the significance of making good choices in a general election- very much so. The foundation and the fund raising made it possible for outsiders Sanders and Trump to turn this election into one of slogans and accusations, to which the Clintons were unprepared to respond, acting as a distraction  which was bad for the country and the world. ...

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Hard hitting article by an expert in the field of manufacturing and the automobile industry. Problems facing GM and Ford in his view- Note the following: 1) The engineering system with chief engineer in charge of product, concurrent and simultaneous engineering. Better development system for new products at Toyota. 2) How to work with suppliers by leaving room for suppliers to make a profit while attacking every kind of waste jointly. 3) Hardest hitting point on the culture. GM and Ford have cultures that turn competent people into Dilberts. And noting that if ordinary people -Dilberts even- are put in a great business process they become great team players. 4) Customer Service at Lexus. Customers cheerfully pay more because they love the treatment. 5) Labor relations- Union and management know what does not make sense yet no accomodation has been reached, because their conversation has broken down. Womack's comments leave a lot to think about and reflects a feeling that seems to run outside of the midwest- that if GM and Ford can't get a grip on their problems and fix them other companies like Toyota can replace them. A sense that Toyota as a global company is as much of an American company as GM or Ford. ...

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In India 70% of smartphones sold in 2015 cost less than $150. Apple's market share in India is really small at about 2%. Apple iPhone sales were up 56% in the 1st quarter of 2016 over the same quarter in 2015, according to CEO Tim Cook. iPhones cost about $300-$1000 without a data plan in India reducing the size of the market. In May 2016 Apple applied for approval from the Indian government to sell refurbished or certified iPhones at lower cost. In India the best selling iPhone is the older 5S which costs about $300. It makes up 50% of iPhone sales in India for 1st quarter in 2016, according to Counterpoint. Apple has no model at the low end, as the SE model will cost even more at $500. The Indian market is growing at 26% in 2016 over prior year, making it the next largest market after China. Another approach Apple is taking is seeking approval to open its own retail stores and sell online. A waiver has been given by the government for using locally made parts. Apple's high prices and margins remain a significant barrier in opening up the Indian market, when lower priced Korean and Chinese smartphone models offer attractive options to price conscious Indian buyers....

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As HP separates into two separate companies that can be focussed and nimble, CEO Meg Whitman says that it has been a difficult road for HP. The new organization will have a lower cost basis by making job cuts as HP sales shrink- about 30,000 additional job cuts will be made in addition to the 55,000 announced earlier, mostly in enterprise services as the outsourcing operations have declined. HP sales and profits have declined with profit of $8.76 billion in fiscal 2010 on $126 billion in sales dropping to $5 billion in profit on $111.5 billion sales by fiscal 2014. Meg Whitman, CEO, says this should complete the changes and set the business up for future growth in new business areas. She also says HP has not done anything stupid in the last 4 years, alluding to the losses on the ill advised Autonomy acquisition. A big shift is being made in the Enterprise Services Group by setting a rule that no single account should be more than 10%- in 2013 just 3 accounts made up 65% of operating profit. One area of growth is cloud computing related business where it sees revenue growth of 20% for the next couple of years. Other areas include data analytics....

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The repeated denials by VW officials from global headquarters in Wolfsburg, Germany, and from VW in the U.S., since 2012- when the problem of higher emissions on roads compared to emission test readings first came to public attention- show that VW management took the problem lightly. The deep consequences of such a move to hide real emissions, not just from the EPA but from unwary buyers, appears to have been entirely missed by management. Even when the issue was raised by the EPA, VW stated to EPA that the differences in results on roads vs actual emissions tests were technical flaws. In December 2014 VW even made a voluntary recall of half million diesel vehicles. Yet the high emissions on roads continued till VW officials told EPA about the software that was the real cause in August 2015. Even then VW officials offered to personally apologize, and asked for certification of 2016 models in the U.S., missing entirely the deep consequences of their actions. VW now says that the software to conceal the real emissions was installed on 11 million vehicles worldwide. VW management has set aside $7.7 billion as provision for penalties. The VW stock declined by 35% by September 22, 2015....

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Afghanistan, says aUN report, s seeing the development of narco-catels similiar to Columbia, where drug profits are seen as more imortant than insurgent ideology. The interdiction of opium crops says the UN office on Drugs and Crime has reduced production by 10% with 22% less land being cultivated. But this does not mean that the flow of opium has beeen affected. A stockpile of 10,000 tons of opium has been built up and is in the hands of narco-gangs, which is about 2 years supply for world demand. This also suggests that the efforts to cut financing of the insurgency are being dwarfed by the access for terrorists to this large source of financing. It also raises other questions about the billions of dollars that can be used for terrorist purposes. As the war situation deteriorates this financing suggests two ways in which the situation becomes intractable, first through the financing of the insurgency, and second through the corruption in the government of Afghanistan that this engenders. with the complete loss of confidence among ordinary people in the government. In these circumstances a democratic election does not have anywhere near the kind of credibility that for example the Iraqi elections had. Quite the reverse....

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Whitacre is basically blunt about his mission from the Obama adminstration when he attends meetings at the Tech Center in Warren or at the Westin Detroit Airport hotel and the San Antonio club: get GM growing again, he wants to see market share north of 20%. The Obama administration, Bloom and others are clear about the government wanting to get its $50 billion for the USA and $9 billion for Canada back as early as possible. He has told GM's Henderson he will be replaced it things don't change fast enough, and he wants product out faster, 2 year development times for new cars instead of three years today. The same message has been passed on to middle and upper middle managers in diagonal meetings. And what are readers commenting on this- and readers views matter a lot because GM has a wrong perception out there that hurts sales- a third of twelve readers said they cannot understand why young people are not moved up to run the company especially from design and engineering, one mentions Whitacre's age 70 years. A third just don't think much will change, and one says he will buy aFord. And a third says Whitacre is the guy who can shake things up and he should. ...

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The countries that would be affected the most from a slowdown in China are the commodity producer countries- Australia, Brazil, S. Africa, Chile. Other countries include Thailand, Indonesia and Vietnam. Currencies such as the Australian dollar, the South African Rand, the Brazilian Real and the Chilean peso would decline in value. South Korea, Taiwan and Japan which supply large machinery for construction and manufacturing would be affected. Oversupply of steel and other products in China would mean higher exports causing a drop in steel prices and prices of other items. There would be a decline in commodity prices. Germany which provides the high tech machinery for China's industrialization will be affected. Exports growth to China from Germany increased by 44% in 2010. It has been pointed out that China is the seventh largest export market for Germany, coming after France, the U.S., the Netherlands, the U.K., Italy and Austria, exports to EU countries being the largest market for Germany. A global economic slowdown, with the Chinese slowdown as a part of this would impact German exports, leading to a slower growth in Germany. The U.S. would be affected also because exports were picking up in 2010-2011, and remain the one bright spot for the U.S. economy's recovery....

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Areas in the "too big to fail" part of Dodd-Frank U.S. financial reform legislation where work remains to be done to prevent a future crisis include: the creation of living wills by the largest banks so that they can be dismantled in an orderly fashion, and the designation of which banks are systemic risks by the Financial Oversight Stability Council. The FDIC and the Federal Reserve have yet to finalize the rules for creating "living wills" for large banks. The rules are expected to be finalized by fall 2011. The FOSC is working on the designations and what criteria to use for selecting the non-bank firms that pose systemic risks. Progress has been made at the FDIC by finishing several rules for implementing a new system to wind down a large failing bank. The FDIC is hiring staff for a new office that focusses specifically on large complex financial firms. Fed Governor Daniel Tarullo has led the effort for higher capital reserve requirements for U.S. banks, requirements that would be closer to 14% for capital reserves. In an editorial on June 16, 2011, the Wall Street Journal said that if the Federal Reserve is serious about controlling systemic risk then it should support capital reserve requirements of 14%....