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Israel's ambassador to the U.S., Michael Oren, describes Iran's efforts to make weapons grade nuclear material, escalating the enrichment process from 3.5% to 20%. He says Iran now has 225 pounds of 20% uranium and 11,000 pounds of 3.5%, enough for 5 nuclear bombs, and points out that 20% uranium can be enhanced to weapons grade in weeks. During the initial negotiations the P5+1 nations demanded suspension of enrichment acitivites at a time when the enrichment process was at 3.5%, and transfer of stockpiles abroad. As negotiations dragged on Iran escalated to 20% enrichment. current demands of the P5+1 are for cessation of 20% enrichment and removal of the 20% stockpile, and closing the facility at Qom, as a first step. This has been rejected by Iran. In this op-ed Oren says Israel alerted the world about the Iranian nuclear program 20 years ago, and as this has continued to what it is today, Israel's view is that much of that time was wasted and the window for international efforts to cease and dismantle Iran's nuclear program is almost shut. ...

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U.S. auto sales increased by 7.5% in October 2011. Chrysler sales were up 27% in October. Its Jeep vehicles had the best sales performance in 5 years. Jeep sales were up 25% and Ram pickup sales were up 21%. Ford Motor Company sales were up 6.2%, and GM sales were up 1.7%. Sales of Ford's F- series pickup trucks were up 7% and sales of Escape sport utility vehicles were up 30%. Lincoln sales declined 11%. For GM the Cruze small car and the Equinox crossover sales were up, while Buick sales were down 7% and Cadillac 12%. Because of limited vehicle supplies Honda and Toyota showed decline in sales by 1% and 7.9% respectively. The annualized seasonally adjusted selling rate in October was 13.26 million vehicles. Reasons given for the pickup in auto sales by analysts are that buyers had held off buying in 2009 and 2010 and are now back in the market as their vehicles show signs of aging. Hyundai sales were up 23%, VW's up 39.6% and Mercedes-Benz's sales up 28%.

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The problems in Chase bank's Investment Office unit were first reported in the WSJ April 5, 2012. Large positions were taken by Mr Michael Iksil, a trader in the London office that ruffled credit markets. Iksil reports to Achilles Macris, head of the European operations of the Investment Office unit, and Macris reports to Ms. Drew. At the time CEO Dimon and other executives reviewed trading positions and made no changes in strategies. After April 13 earnings call losses increased to $200 million a day, and review teams assigned to look into this found errors in the way the hedges were conducted. In early May Chief Risk Officer John Hogan and Europe head Daniel Pinto monitored the situation. The hedges were designed to reduce risk in the eurozone financial crisis, but the complex transactions based on relationships between a number of derivative indexes for investment grade and junk grade corporate bonds in U.S. and Europe worked in ways that led to large losses, and were so complicated that they were poorly understood....

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Trust bank is rescued with a $530 million injection by Russia's central bank in Dec. 2014. The bank was taken over by the Deposit Insurance Agency which guaranteed the deposits of customers. As Russia raises interests by 17%, the ruble stabilizes with a 5% gain on Dec. 22, 2014. Alexei Kudrin, former finance minister and the architect of Russia's improved finances during Putin's previous terms in office, told a news conference that Russia now faces a full fledged economic crisis that will be painful in 2015. He expects a drop of 40% in imports, inflation at 12 to 15%, and decline in living standards. He also said Russia's credit rating could fall to junk status making it difficult to obtain financing. Kudrin was critical of the way the Russian government handled the crisis, saying action was slow and the government did not act as one team. He called for improved relations with western partners- "For a way out of the crisis, it is of high importance to regulate relations with our foreign partners- first of all with Europe, the U.S. and other partners."...

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A.G. Lafley returns to P&G to take over from Robert McDonald as CEO. Lafley retired from the CEO position 4 years ago. He worked his way up in the detergent division starting as brand assistant for Joy dishwashing liquid in 1977. McDonald's role as CEO was marked by weak growth in the U.S. for P&G's premium priced brands during the period following the financial crisis of 2008-2009, when consumers were becoming frugal. McDonald increased emphasis on emerging markets but this could not make up for weak growth in P&G's largest market in N. America. Lafley had built up the premium brands during his period as CEO, and not focussed enough on reducing costs of manufacturing and overhead as much as competitors. This turned into a problem for P&G when consumers became more frugal and price conscious. In 2000 Lafley was brought back the first time after the abrupt departure of CEO Durk Jager following a large earnings shortfall and decline in share price. This time private investor Ackman had pushed for McDonald's replacement....

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Eisinger says the Federal Reserve's staff plays an important role in regulatory reform. He quotes Cornell law professor, Robert Hockett, who says the general counsels tend to become more conservative over time and inclined to support the status quo. This makes required regulatory changes such as increasing the capital reserves at banks and reducing leverage more difficult. Eisinger describes the position of the U.S. Federal Reserve's general counsel, Scott Alvarez, on disclosure of lending by the Fed during the banking crisis, and on capital reserves, which veered more to the position of the banks which preferred less information be released and capital reserves be left at the 5% level than the 6% proposed by the FDIC and the Office of the Comptroller of the Currency. Comments by Alvarez in nonpublic hearings to Congressional staff members on May 18, 2012, about the JP Morgan London Whale trading losses, according to Eisinger, shows lack of awareness of the overall implications of the breakdown in financial controls and supervision inside the bank....

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John Cochrane, professor at the Booth School of Business, University of Chicago points to the simple truths about U.S. healthcare- out of control pricing because of the pathologies created by previous laws and regulations. He points out that costs are high in healthcare because regulations keep them high. Supply of new doctors is controlled because Congress and the AMA made it that way with a cap on residency programs and AMA opposing the expansion of medical schools. In a system of open competition new hospitals and health care businesses would challenge old ones which is not happening in a regulated market with regulations working to limit competition for the firms already in the business and with the influence to limit competition. Insurance costs for major expenses in an open and deregulated competitive market without the regulations would be so much lower than todays costs that its likely we would not even need a mandate such as the one the Obama healthcare law imposes.

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Plans for the Quad countries to launch a new effort in the last quarter of 2021 to produce 1 billion vaccines in 2022 for adding to supplies in the Indo-Pacific region that includes Indonesia, Malaysia Thailand and Vietnam. Japan would provide the financing for the manufacture of vaccines in India using American technology and raw material supplies. Australia would help with delivery in the Indo-Pacific region. The foreign ministers of the Quad countries, US, Japan, Australia and India, will meet on June 29 in Matera, during a G-20 foreign ministers meeting in Italy. 

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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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Experts in Germany and the U.S. look at areas adversely affected by free trade and globalization and the increasing support for right wing parties in these areas. David Autor is a labor economist in the U.S. at MIT who has studied these trends. He says trends in free trade have hurt low wage workers. In 2014 he and David Dorn, Gordon Hansen, Jae Song, published a paper showing how trade with China was affecting different parts of the U.S. Lower wage workers, most of them with less education and skills were prone to be unemployed or face lower earnings in areas where cheap imports from China were replacing domestic production. Donald Trump has strong support with the white working class and less educated workers who form this group. He has accused China of "currency manipulation" and proposed a 25% tax on Chinese imports. Experts say there is no strong evidence that immigrants are causing this type of dislocation in the U.S. Yet immigrant bashing is used by Trump and other right wing politicians which is attributed to it being an easy tactic for politicians to appeal to the anxieties of working class voters....

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The French system what works and what does not work compared to the Anglo-Saxon systems of Britain and the USA. Health care works, public transport and high speed rail works, nuclear energy and the energy industry works, education works for small elite universities but fails in the larger system. The large public projects are executed well, and France has done well with its long tradition of the state building infrastructure projects. But when it comes to individual initiative and starting up new companies such as in computers and high tech of that kind, France does not do so well. And the state collects a larger proportion of taxes than in other countries to finance these benefits. France is also good at rule making, which serves it well in controlling the kinds of bubbles that regularly hit the Anglo-Saxon countries. And with 21% of jobs of all workers in France in the public sector and government, with 49% when one includes related sectors protected from economic downturns, the French workers are much better protected than workers in Britain, USA and other countries from economic downturns. Unemployment stays high in upturns and at 8%, and in downturns does not go too far above 8%....

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The unravleing of Borders bookstores chain in the US, after Borders management failed to anticipate and build on the new trend to electronic books and made a series of mistakes. Borders filed for Chapter 11 bankruptcy protection in early Feb. 2011. Its online strategies simply failed to come up with answers to the cultural trend to online shopping for books and buying e-book readers. A serious bad decision from which Borders never recovered was to transfer its internet operations to Amazon Inc. in 2001. Amazon quickly built up customer relationships with millions of customers. Other decisions followed which put Borders in an untenable position. Borders increased its debt from $159 million in 2001, to $554 million for the fiscal year ended Feb 2, 2008, using the money for overseas expansion and share buybacks, which did little to address the looming internet problem. By contrast Barnes and Noble took the opposite strategy of paying down all of its $667 million in debt. Borders has modest beginnings starting in 1971, when Tom and Louis Borders, started a small used bookstore. By the 1990's bookstores with tens of thousands of books in one location were changing the bookselling landscape, as smaller bookstores were closing. Borders was able to ride this wave. When the next wave hit in 2010 with the internet, Borders was unable to respond and went into permanent decline. A costly trip through bankruptcy court means Borders will have to close one third of its 674 Borders and Waldenbooks stores, and cut a large part of the 19,500 staff. This will mean customers shifting to Amazon, Barnes& Noble, Apple Inc. and Google Inc. Mike Shazin, CEO of Idea Logical Co, a New York consulting firm, says he expects 50% of bricks and mortar bookstores to go away in 5 years, and 90% to go away in 10 years. ...

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There are similarities in the Republican and Democratic party platforms in 2016. One area of agreement is in the reinstatement of Glass Steagall Act. That legislation made in the Depression period to separate commercial banking from investment banking was changed  when president Clinton made changes in a deal with Senators Phil Gramm and Jim Leach in 1999. The too big to fail problems of banks and the problems of investment banks during the 2008 financial crisis are attributed to the lack of Glass Steagall protections for financial stability and safety. The result is that in the post 2016 environment banks can expect a tougher regulatory environment. Another are is in trade where both parties are expected to take tougher positions to protect U.S. interests. The Republican platform calls for "better negotiated trade agreemets that put America first."

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50% of European CFO's surveyed by CFO magazine and 60% of Asian CFO's think the dollar decline is permanent devaluation compared to a third of US CFO's. The Commerce Dept figures show January exports 16.6% higher than a year earlier, and the trade deficit down by 7% in 2007 vs 2006 which will accelerae in 2008 with the larger dollar decline. As long as European and Asian economies continue to grow a bit slowly but not in a recession like the US the positive effect of growing exports should continue. So far for the last 6 quarters according to the WSJ exports have contributed 1 percentage point on average to economic growth measured at annual rate while the housing slump has subtracted just over one percentage point on average. So this is no small feat for exports and it has helped make the economy more resilient to the shocks of housing and oil price. As long as the growth overseas is not affected to a great extent by the economic slowdown in the US exports can continue to play this role. As the housing crisis is primarily a US and UK phenomenon this should not seruiously damage the economies of Asia and Europe and their ability to take in US exports....

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Daniel Yergin cites an estimate by IHS Cambridge Energy Associates which shows oil from shale and dense rock, which was about 1 million barrels a day in 2011, could reach 3 million barrels a day 2020. North Dakota where much of the production is taking place is now fourth in oil production in the U.S. after Texas, Alaska, and California, and is likely to move up to second place. U.S. imports of oil come primarily from Canada 25%, Mexico 11%, Venezuela 9%, and the Persian Gulf 16%. Canadian oil sands development has increased production and the completion of the Keystone pipeline will increase the share of oil imports from Canada. This is shifting the dynamic of oil away from the Persian Gulf, with the volatile politics in the region, and more towards North America.

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Efforts by BNP Paribas to get bondholders to take a 50% loss on Greek bonds, and exchange their old bonds for new ones that mature in 50 years. BNP Paribas is working for the Greek government to get other banks and bondholders to accept this exchange so that Greece can tackle its debt load and interest payments on debt. Some arm twisting by BNP Paribas to get bondholders who have insurance through CDS to accept the exchange. This is being done on the grounds that the I.S.D.A. committe would declare the restructuring in Greece as being "voluntary" and not a default, so that bondholders who do not accept this deal would not get paid through CDS insurance.

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Arne Duncan describes the improvements in K-12 education in two regions of the U.S.- the District of Columbia and Tennessee between 2011 and 2013, shown by the 2013 National Assessment of Educational Progress (NAEP). The hard work of educators, parents and school officials is paying off and offers examples for other parts of the country, says Duncan. Lessons include facing the facts, not dumbing down by setting low standards. With higher standards Tennessee students were only 34% proficient in math and 45% in reading compared to the 91-92% with lower standards. Republicans followed up on the work of Democrats in the state. Soliciting feedback from critics and experts- the feedback was used to improve systems and learning to help teachers and students. Schools chancellor Kaya Henderson says improving teacher quality was critical, and so was academic rigor. Still Duncan says more needs to be done, this only shows the right direction for states lagging behind, and one should not get complacent. The other areas college enrollment and dropout rates need to be followed carefully. International PISA results still show the U.S. at 27th in math and 14th in reading of 65 countries- making this only the beginning in setting the future course for U.S. educational improvements....

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Zarkadakis points to modern Greece's burden of history since the struggle for freedom from the Turks in 1821. The resurgence of European interest in ancient Greece, he says, burdened modern Greece with a narrative of their identity based on romantic and idealistic notions of Europeans in other nations. It also burdened ordinary Greek people with learning three Greek languages, including the language of the ancient Greeks. Failure to live up to the expectations of the intellectual classes of Europe from their perceptions of a distant past led them to look down on the people of Greece- as evident in perceptions in the German media about Greeks as lazy (the Mediterrranean peoples and lifestyles not as hardworking as the Germans) and liars (the national accounts being largely fudged till a Dutchman at the IMF presented the correct picture in 2009), and cheats (extensive tax evasion). He says this ignores the national traits of Christian Orthodox (which would suggest "mercy" or significant forgiveness of debt when debt reaches a point of becoming uncollectable) the economic history of successive defaults in 1893 and 1932 (lack of economic maturity), a strong cultural trend that tends to circumvent the governing authority. The desire to modernize Greece of the intellectual classes and governing politicians in Greece, and the dependence on the European Union as the sole guarantor of such modernization, has he points out led to a sort of arrogance that ignores the anxieties and fears of the ordinary people of Greece. This was evident in the way efforts to get a referendum on the austerity plans imposed on Greece were quashed by EU officials and the Greek politicians. ...

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Analysts see the likelihood of Greece exiting the eurozone at over 50%. The actions of the ECB under Mario Draghi to provide funding to weak banks through the Long Term Financing Operation have reduced the effect the effects of contagion from a Greek default spreading to banks in other EU countries. The fiscal pact signed in Jan 2012 at the EU summit with automatic penalties for countries lacking budget discipline provides Angela Merkel more room with her domestic political base to support the EFSF's capacity to help other eurozone countries. Greece with its deteriorating economic situation would then be considered a special case.