LyrArc Article Gist
Hon Hai has about 800,000 workers. About 400,000 are employed in the southern industrial town of Shenzhen. After a number of worker suicides (13 people have committed or attempted to commit suicide in 2010 so far), the company has announced that it will give 20% raise to its workers. Workers at one plant in Longhua are paid 900 yuan or $132, the legal minimum wage in Guangdong province, though many workers work overtime at 1.5 times the standard rate. The company is secretive about its activities and uses the trade name of Foxconn. It makes personal computers and other products for Apple, HP and other companies. The company uses a military style discipline and it is reported that there is excessive stress in working conditions.

LyrArc Article Gist
Fund manager BlackRock withdraws from Net Zero Initiative and its other commitments for ESG, Environment, Sustainability and Governance.

LyrArc Article Gist
Peter Coy says that as long as unemployment numbers keep going up and foreclosures keep increasing as aresult of the job losses housing prices will keep falling. He says that they may have to fall 20% more than the level they are at today. And that the foreclosure levels could become atidal wave if it becomes easier for alot of people to just hand their keys to the banks. This was what Martin Feldstein warned aginst in the WSJ oped pages several times in 2008. As more people are under water it makes sense to just hand the keys to the banks, and as long as this goes on, the economic recovery will be put off. A study cited by Coy done by Reinhart and Rogoff shows that housing crisis of this magnitude last about 6 years before all the bad effects wear off. And in addition to housing there are other things at work in this crisis especially in the job loss rate which is increasing (663,000 jobs lost in March), and the readjustment in savings rate upto 6.4% according to BW for 2009 till March, which suggests a serious drop in the consumption rate is underway and may go on for several years crimping demand and increasing unused manufacturing capacity. The stories in the media and other information reinforce this statistical information. The bit of good new from hard hit housing markets in California and Nevada and other staes has to be seen as no more than a limited play in the foreclosure markets, that does little to the broad brush strokes that are ocurring on the national and world landscapes in job losses and consumption. Coy a veteran analyst who has covered the housing market and warned during the boom of the likelihood of abust in a cover issue at the time, brings experience and reflection to the developments, and urges serious caution in interpreting signals that may have no broad meaning....

LyrArc Article Gist
Apple and protests over working conditions at factories of suppliers like Foxconn which make the iPads and iPhones. Issues related to Apple's large profit margins and the low wages paid to workers at supplier factories in China and other countries.

LyrArc Article Gist
This editorial in the WSJ responds to Donald Trump's comments about the system being "corrupt" and "crooked" and saying there could be violence at the convention. It says the rules are transparent and long standing in Wyoming, Colorado and other states where Trump has not campaigned or sought support. It calls on the Republican National Committee not to be intimidated by Trump's statements, especially as it says the the Republican party should not nominate a candidate who has the highest negative perceptions rating of a shocking 65% with national voters in a general election. Trump never complained when he won 99 delegates in Florida with 45% of the vote and 50 delegates in South Carolina with 32% of the votes cast- securing the most delegates because of a winner take all or winner take most system. It says Trump has so far won only 37% of all votes cast and won about 45% of the delegates, a process that can be seen as disproportionately favoring Trump because of the rules. This is particularly true because Trump's core support has remained at about 35%, and the fragmentation of the remaining vote has hurt the other candidates. About 83% of eligible voters have not voted in the primaries, making the process less representative than it should be. ...

LyrArc Article Gist
Interview with Robert Shiller of Yale University, by Simon Constable of the Wall Street Journal. Shiller tells Constable that the second dip recession is imminent. Shiller senses that when the National Bureau of Economic Research looks at third quarter data for 2010, it will find that the second dip of the recession started here. In other comments Shiller said that the U.S. is standing at the edge of deflation. The view on housing markets of Shiller, who is one of the creators of the Case-Shiller Home Price Index, is that housing prices could decline for the next 5 years. Shiller sees the US's chief concern as unemployment. He suggests that local governments and the federal government create jobs. One idea is to have a teacher's aide in each classroom.

LyrArc Article Gist
Eurocurrency is expected to weaken against the USA dollar in 2009, as the economies of Ireland, Spain and other countries in the EU weaken further after the bursting of bubbles in property and other markets.

LyrArc Article Gist
The 'Querdenker" ("lateral thinkers") movement in Germany now has branches in 50 towns across the country, and calls for freedom of opinion, expression, and assembly. Some of these protests are against the coronavirus restrictions, particularly because of economic difficulties and cultural attitudes towards restricted life during the first and now second lockdowns. It covers all backgrounds including far right and far left fringes and people of different views on other issues. A Berlin demonstration in late August brought out about 38,000 people and briefly some demonstrators attempted to rush into the Reichstag or parliament building. The police in Germany can only act if the town and municipal authority says it is right to intervene against unruly behaviour in demonstrations. The other factor protecting the Basic Law which protects freedoms in the German Constitution is that the courts in Germany have acted in favor of the demonstrators so that there remains a fair balance between the need for covid restrictions and the need to demonstrate against these restrictions affecting the right to work and economic freedoms. As well as the pushback against these restrictions for cultural and other reasons.  The initial fear of being infected is now being strongly offset by fears of the economic consequences of an extended lockdown particularly for vulnerable groups who cannot work from home such as in construction, manufacturing, transportation, retail and tourism related industries. The next big demonstration is set for Saturday November 14 in the eastern city of Leipzig with about 20,000 demonstrators expected and police getting reinforcements from neighboring states and federal police. ...

LyrArc Article Gist
This leader in The Economist magazine says a hard Brexit of the sort announced by Theresa May at a Conservative Party conference is clearly bad for Britain. It also point out that half of British people voted to remain. It is not clear that voters have voted for a hard Brexit, a soft Brexit, or voter alienation with elites and effects of years of austerity since the financial crisis have helped tilt the vote to Brexit. It points out that the rhetoric may be damaging Britain's chance of negotiating a Brexit that limits damage to GDP, which the Treasury estimates to be nearly twice the loss in GDP if a member of a single market as compared to leaving it. British government leaders may be overestimating the willingness of leaders of France, Germany and other countries to make concessions. By talking up to their party base politicians such as May may be putting German and French leaders to also toughen their positions on free movement as an integral principle of the European Union, and consequently of membership in a single market. ...

LyrArc Article Gist
The glass ceiling facing women as they face hurdles to reaching top management positions in China, India, Japan, S. Korea and other Asian countries. The need for proactive efforts and programs to develop women for top and middle management positions. The figures show women represented at levels as low as 1-3% at board level and senior management positions in China and Japan. Cultural attitudes, women's tendency not to push themselves forward when they feel they lack all the skills needed, and a lack of programs to develop women, lead to this lopsided situation where skills of talented women are not utilized.

LyrArc Article Gist
Chile's Constitutional Council that swung in one direction now swings in the other direction. The new Constitutional Council has elected 33 conservatives and 17 from the left parties as the mood swings to keep some aspects of the old constitution that helped the economy grow. There is concern about the effects of crime, immigration and the slow growth of the economy under the Boric government. The economy is expected to contract by 1% in 2023 according to the IMF.

LyrArc Article Gist
Finland faces a severe shortage of workers with about 60% of positions unfilled in the larger Helsinki area. About 100,000 new tech positions will have to be filled. In other lower wage sectors there is the problem of low wages as there is no minimum wage in Finland with sector by sector negotiation for wages. Far right parties are opposed to immigration. Ukrainian workers have to learn Finnish or English to integrate into the Finnish workplace. Elections will be decided on this issue in 2023.

LyrArc Article Gist
Apple's effort to use CSS, client side scanning to check images on smartphones for child abuse and other crime. This technology scans images on a smartphone and compares it with a database of child abuse material (CSAM) and notifies Apple if a match is found. This serves as an effort to make technology compatible with social needs of today after the balance had swung too far in the opposite direction allowing damage to civil society, to women, and to children.

LyrArc Article Gist
This article in German news service DW.com looks at Taiwan and the threat it faces from China. It looks at different scenarios that might erode Taiwan's status as an independent country. Taiwan's foreign minister Joseph Wu sees the internal situation in China as affecting China's approach to Taiwan. He says China "may find Taiwan a convenient scapegoat" because of the internal situation with floods in China, the economy affected by coronavirus, and other problems.

LyrArc Article Gist
Ben Bernanke former Fed chairman gets a Nobel Prize for an economic paper written in 1983 that showed the role central bankers need to adopt to prevent a banking crisis from transforming into an economic depression. Banks could feel the effects of a crisis but also could cause an economic crisis as happened in 2009 with catastrophic mortgage lending practices. Other economists with similar research including Douglas Diamond of the University of Chicago, and Philip Dybvig at Washington University also received the Nobel Prize.

LyrArc Article Gist
Since the last Women's World Cup Soccer the Netherlands and other European teams have caught up with the US. The gap no longer exists as shown in the Netherlands US women's soccer game in which the Dutch dominated the first half and led 1-0. The game ended 1-1 but the myths surrounding the US women's soccer team had fallen. The Dutch coach said his team was in better fitness shape than the Americans.

LyrArc Article Gist
This analysis concludes that it will be harder for developing countries to tackle job losses from robots. One problem is that taxing robot use would lead to investments in production in countries that allow robots. Opportunities exist for technology and robots in agriculture in India, by offsetting this with retraining agricultural workers for other work. China has managed the transition to robots by finding alternative opportunities for workers. Companies have shifted to robots with the higher wages in China and shortage of workers.

LyrArc Article Gist
China is moving to shift its economy in a new direction of self-reliance on domestic consumers and local investors. Mr. Xi calls it "domestic circulation." This also means less dependence on imported technologies and inward looking policies. As the pandemic has reduced demand in other countries and as the U.S. and West tighten controls on imports and introduce new restrictions, there is the sense that the entire policy has to shift quickly to dependence on domestic consumers and investors.

LyrArc Article Gist
India's challenges in securing $1.3 trillion in capital over 5 years for infrastructure spending. This is needed including capital from the private sector to support government funding, so that India can build the infrastructure to create new manufacturing hubs that compete with China as the world's manufacturing workplace. The Biden administration's determination to compete effectively with China using is own supply chain in Asia, and the EU's plan to follow what the Biden administration does, is likely to create a new kind of environment by 2024-2025 that will create a steady flow of capital to India and other parts of Asia to finance this effort for rebuilding its supply chain. The Biden administration is seeking to build a culture change from the old culture pushed by Reagan type free marketers that delivered lost decades in manufacturing and jobs in manufacturing for the US. Biden's State of the Union message was clear- "Folks we're just getting started. We're just getting started." By 2024-2025 the Adani story may just be a footnote to this story as other manufacturers and investors pick up the infrastructure challenges facing the US, EU and India for a new supply chain for the Free World built around self-reliance. The Ukraine war and China incidents such as one that happened recently, will accelerate the rebuilding of the new supply chain on the part of the US and the EU with partners in Asia. And change decades old assumptions and trade relationships over months, not years. ...

LyrArc Article Gist
New estimates of the coronavirus cases and deaths show Peru having twice as many than estimated before. Peru has the world's highest mortality rate per capita in the world. Most of the jobs were pushed into the informal sector in the last 2 decades. This is also true of Columbia and other Latin American countries. During the first and second wave of the coronavirus these people in informal jobs were the hardest hit having little access to health care. In Colombia the result of the stress from the pandemic and the other problems have led to street demonstrations and violence. The president Ivan Duque lacking public support faces violent street protests. Duque who is from former president Uribe's party won the electon in a runoff with a former leftist guerilla leader Gustav Petro who was Mayor of Bogota. Uribe and Duque had not supported the peace agreement with the rebel left movement in Colombia negotiated by presiddent Santos.  In Peru the election is between Mrs. Fujimori from the Fujimori family and a Marxist politician Castillo. The problems in the informal economy during the pandemic have led to the election of Castillo as the next president. Many of Latin America's problems from Brazil to neighboring countries remain unresolved even as Asian countries have moved forward, with lack of basic access to sanitation, tap water, health care and education, and lacking basic infrastructure. The pandemic has shown the weakness in decades of development in Latin America.   ...

LyrArc Article Gist
The increase in colorectal cancer, one form of cancer, to more people under 50 years shows the role of healthy and unhealthy habits in food and exercise in causing cancer. People with bad food habits, smoking, obesity, are more at risk of cancer in general. This report says recent generations have been more exposed to red meat, ultra processed foods and sugary beverages- it is a comment on the times and habits that had deteriorated after 1980's and the lack of awareness of the dangers until the pandemic hit hard.  The overuse of painkillers and other medications and the impact on good and bad bacteria in the gut of lack of careful use of medications. It also points to the need for reducing chemicals in the environment as the effects can be seen in higher cancer rates. It must be of the highest importance that all people in America in every region of the country be treated in the same way, not leaving chemicals to be dumped in areas that are poor or neglected- as more cases are seen this report says in the cities and towns along the Mississippi river, in southeastern states, and it shows the impact of trace chemicals of nickel, arsenic, and chromium from industrial plants, chemical plants, and coal production. Forever chemicals can be found as some reports show also in peaceful looking landscapes in America- such are the dangers unless the people of America insist that their leaders fight these wars before culture wars and over other issues not central to the welfare of all Americans in every part of this Nation. ...

LyrArc Article Gist
South African captain Dean Elgar reflects on how he is handling the leadership role for the cricket team building understanding and trust of players from different cultures and social backgrounds in the team- white, black, Afrikaans, English Afrikaans, Indian. He brings a remarkable sensitivity to his role and describes his style of listening and acting as a friend off the field to learn about the players on his team. It is a role like no other captain of a sports team faces. Elgar says he does'nt think there is another country in the world that has to deal with this kind of dynamics in society.   He says there is always light at the end of the tunnel, a glimmer of hope, as he take on all this pressure without showing it. Seeing him as many will on television on the cricket field during the 3 Test series at Centurion, Johannesburg and Cape Town, one senses the kind of change in South Africa that gives so much hope and optimism for the future. He say he always thinks we must'nt stop learning from each other, we must sit down and listen more. This has made him more concerned and wary about the past and even more emotionally attached to the players, as he handles the huge amount of diversity- a massive learning curve with a lot of humility. On the day of the death of Desmond Tutu as cricket commentators talk about his humble and unselfish spirit, Dean Elgar appears to have defined his own role in just the right way.   ...

LyrArc Article Gist
Critics say China uses debt trap diplomacy in Africa through its infrastructure investment projects. Silja Frohlich of DW.com speaks to Eric Olander of the non-partisan China Africa Project to make an assessment of what is happening. Olander says Africa is facing a demographic change of immense proportions with about a billion people that are being added by 2025. For African leaders what are their options- do they build the infrastructure that would lead to the industrialization that creates jobs for all these people, even as they use their children's future to borrow vast sums of money. Global and private markets would charge 7 times the interest that the Chinese are charging, says Olander. China has built roads, railways, bridges, hospitals, and other infrastructure for which there was not enough financing from other countries. Since the Belt and Road Initiative was launched 5 years ago it has built four new railways- the Mombasa-Nairobi railway, Addis Ababa-Djibouti (759 kms), Abuja- Kaduna (186 kms) and Angola's Benguela railway (1866 kms). China has also helped Africa to develop its options with alternative sources of investment helping it negotiate new investments from different sources as Kenya and Uganda are doing today.  At the conference in 2019 in Beijing President Xi offered cancellation of interest till 2018 for loans to Ethiopia. A new effort to introduce transparency and improve terms and offer debt forgiveness is underway to change China's image for investment in Africa. Olander sees China making a solid contribution over the past 10 years funded by Chinese money. ...

LyrArc Article Gist
India's prime minister Narendra Modi addresses a joint session of the U.S. Congress on June 8, 2016. The close ties between India and the U.S. were enhanced by the good personal relationship between U.S. president Obama and Modi. With a change in administration in 2017 both sides are eager to secure the foundations of the relationship, with India's agreement to the Climate Change Agreement, and other steps.

LyrArc Article Gist
The Guardian looks at high street, the small downtowns in urban areas across the north of England and the Midlands, coastal towns in decline, where Reform UK is offering an alternative to the decline.  Are Britain's best days in the past, and after the failure of Austerity, Brexit and the disappointment with Starmer, what lies ahead. If Farage wins and falters will this put Britain in a spiral of permanent decline? Boarded up shops, closed department stores and banks, with the rise of online shopping and online services, is creating a new situation on streets in mid and small towns in England. People see the decline all around them and this is creating anew mood in favor of trying something else after Labour and Tories have promised and things are taking a turn for the worse in the physical appearance of neighborhoods. Across the UK 34,000 shops closed in 2024, that is 37 a day, and this is true more for the north of England, the Midlands and deprived coastal towns, where Reform has come close to Labour in the last election. In one focus group in You.gov and other research a participant used strong words- that it was "soul destroying" to see the extent of the decline. Across Europe, in Germany as in UK, in France, the same sense of high street decline is evident. Underinvestment in transport, policing, healthcare, and social services. University of Warwick professor Fetzer  has studied this and the effects of austerity first under Cameron and Brexit under Johnson, the covid period, return of Labour but no lifting up program of large investments that would create a feeling of change, to replace the sense that somehow Britain was "going to the dogs," with half a million shoplifting offences in 2025, up 13% in 2025 over 2024, and the homelessness. ...