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Automakers have huge problems servicing debt, with GM servicing $45 billion debt. Also all that inventory in trucks but also cars weighs heavily as cost for automakers, cars 28% overstocked, trucks 13% overstocked, as sales fall according to Credit Suisse analysts. And overseas bright spots are gone with global financial crisis. And Goldman estimates GM will use up $9 billion in 2009, and working capital cash balances need to be $11 to $14 billion. So do lower oil prices matter, not so much for automakers. And Chrysler is a bad choice for merger partner says a Merrill Lynch analyst because of its product and overexposure to the US market.

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The difference in the styles of Wagoner and Henderson who is no 2 at GM. Henderson is direct and has tackled the problems facing GM with more boldness.

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The Biodiversity Summit COP15 in Montreal in December is covered in this report in the Guardian. It was meant to be held in Kunming, China but was shifted to Montreal, Canada, because of China's zero Covid policy. China, US, EU, India and other Asian, African, Latin American nations are strong supporters of restoring biodiversity on the planet.

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Mr. Ambani's Jio company is targeting both ends of the pyramid. It is investing $25 billion on a 5G network coming in late 2023. At the lower end a new $12 mobile phone calld JioBharat by India's largest telecom provider aims to reach 250 million people who use 2G mobile phones. Mobile phone penetration in India is about 46% in 2021, up from 17% in 2016, according to World Bank. This is largely due to the efforts of Mr. Ambani who built a 4G network from scratch and has 440 million subscribers with some of the lowest data rates in the world. The new phone has a smaller screen, physical keyboard, camera and runs on 4G. 

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Intel Board members disagreements on how to run the company 2025. Lip-Bu Tan replaced Pat Gelsinger as CEO only a few months back.  Pat Gelsinger had a close relationship with Biden and also had close relations with VP JD Vance. Lip Bu-Tan has no such relations and is seen by DJT and Senator Cotton as "conflicted" in his ties to China as an early investor in Chinese chipmakers. DJT calls for Tan's immediate resignation as CEO of Intel in 2025. Lip-Bu Tan left the Board a few months before the ouster of Gelsinger. It now appears that the ouster of Gelsinger as Intel's recovery proceeded but only gradually was a poor decision of the Board.  This report also shows an acting head of Intel Yeary recently considering selling of the manufacturing business to TSMC which is a staggering revelation considering that the US is trying to build its own dominant chip making business in the US, which it had ceded to TSMC in Taiwan after inventing the computer chip. ...

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The mysterious disappearance of $1.2 billion from customer accounts at MF Global. Jan Corzine, CEO of MF Global, former governor of New Jersey, former senior executive at Goldman Sachs, tell the U.S. Congress he has no idea what happened to the money.

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Mike Pence on DJT and the Republican Party in 2025. Mike Pence puts a score on the First 100 Days of the DJT administration. The WINS- The Border- Mike Pence says border crossings are down. Crossings were 140,000 in March 2024 under Biden, a year later they were 4000 or 3% of the previous crossings. A video of gangs was shown at the DJT rally in Warren, Michigan, the Linken Riley Act and other efforts to put spotlight on victims of crime- this is doing what even legislation would take time to produce results, putting into effect a democratic mandate and the rule of law, this is not arbitrary or by force. US military capabilities- Mike Pence points to the attention to defense, yet makes no mention of the US Navy. How can the US build when it has stopped building ships to the point that it takes 6-7 years to build simple frigates in the US by European companies, when 55% of shipbuilding is done in China with ships built in 1-2 years. How is the US without restoring its industrial base going to build its Navy? This is a question Mike Pence, the Conservatives in the Republican Party have to answer. Or if they do not take on this question are they using a playbook that is obsolete, was obsolete for a decade, and is now dangerous as if this opportunity to rebuild is not taken USA may lose its leadership in the world. Foreign Investment coupled with US and US Government investment- Mike Pence and Conservatives in the Republican Party, Wall Street interests say the US is losing foreign investment through its tariffs program, and faults it for targeting Europe, Canada, India, America's allies. DJT includes these countries because it makes it easier to come to an agreement with China that offers to abide by the original rules of fair trade when it is not singled out. It is to convey beyond a doubt to China that the US intends to play fair and expects the same from China as one of China's friends throughout its struggle with British and Japanese imperialism and colonialism. In this Wall Street fails to understand what happened to China, the history of Gen. Joe Stilwell in China in fighting the Japanese in China 1920-1945 A fact check shows Mike Pence and Wall Street are not right, foreign investment as shown on the White House site is about $5 trillion in commitments, it includes a commitment by Korean, Japanese and European, America's own companies to invest in American manpower and jobs, in American communities across 51 states.   ...

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Skeptical reception of the Administration's plan as Senators on the Banking Committee question, Paulson, Bernanke, Cox and Lockhart. The plan is only a few pages long and has no details wich alarms Senators as letting Treasury act with absolute impunity. The Senators are concerned about accountability, transparency and strict oversight. They are also concerned about protecting taxpayers money and taking equity in return for funds as on way to ensure that the taxpayers benefit from the upside in this as with the Swedish example in 1992. And Senators are concerned about the high rate of foreclosures and the need to help homeowners avoid foreclosure about which this plan is silent leaving in the words of one senator " a gaping hole" in the plan as home prices will continue to deteriorate as long as nothing serious and comprehensive is done about the foreclosure rate. Neither Bernanke or Paulson had anything to say about addressing foreclosures with broad comprehensive steps. And reflecting the outrage across the country the Senators want to see a cap on executive compensation of CEO's or some way in which CEO's of these financial institutions benefit while the taxpayers bear the burden. Summing up for the committee the head of the Senate Banking committee said that the Administrations plan was "unacceptable." ...

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Southwest hedged against oil price increases and has hedges through 2009 at $51 a crude oil barrel. This has proved to be a smart move as it has provided Southwest with a hedge worth over $2 billion with most of the hedges value being realized over the next 2 years. Airline fuel costs are substantial and evey dollar increase in the price of crude translates intoa $80 million increase in the fuel bill for American Airlines. The hedges for the first 9 months of 2007 cost Southwest about $42 million, so its surprising that other airlines, United, Delta, American, Jet Blue and Northwest did not hedge against rising prices. Maybe they thought that at prices of $52 at the beginning of this year why hedge if prices go down to $40. Or they were too distracted by looking for merger options, or pricing options or other things. What will happen now if oil prices keep climbing? Can airlines raise fares. Yes but revenue per mile is'nt going up significantly as the mix of seats changes with price increases, more of the lower priced seats are sold than the higher priced ones and revenue per seat has not improved. For example even in an environment where 6 industry fare increases ocurred in the 3rd quarter Southwest average ticket price for that period was $105.37 only 62 cents higher than the previous year. Southwest now hopes to gain in this cycle as the other airlines may scrap some routes or ground some planes and Southwest can expand in those areas. ...

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The credit crunch itself will take out some of the price pressures and a sinking housing market will slow inflationary pressures also so risks of inflation as the Fed lowers rates are small. Once the housing and credit markets stabilize the Fed can be expected to raise rates.

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DJT tariffs are selective and reciprocality makes them fair. This also cushions the impact on consumers and countries. Countries who have blatantly unfair tariffs for decades can then decide as in EU, China, India, Japan, S. Korea, Mexico and Canada, can decide how they will respond by looking at what they need to do for fair trade. Some tariffs are intended also as domestic policy for failure to control of fentanyl into the US as with CMC countries Canada, Mexico and China. US producers will make goods sourced from these countries at home and as DJT says about autos from Mexico this will lead to American producers in Detroit picking up production and bringing manufacturing back home to USA. Most goods Americans use were made in the US in the postwar period from 1950-1980, American manufacturing will get the boost it so badly needs after unfair trade practices from other countries in the EU, Japan, Taiwan and China. By April this policy will be in place, by June in 6 months the policies will be fully operational at entry ports in the US including Los Angeles and Long Beach. All tariffs are selective, carefully evaluated for individual countries and products and regions based on reciprocality a principle that is fair to all countries and the principle on which the world trading system is founded. Individual companies and industries that gain this or that benefit may present it differently saying is good or bad based on their interest and profits- for the US and American people the principle of reciprocality provides a yardstick that is both fair and in the long term interest of bringing jobs and higher wages to the US. ...

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The government of Hamid Karzi released Mr Dastagir from jail 2 months ago even though he was aTaliban commander in an area near Turkmenistan. This fuels feeling among ordinary Afghan people that the corrupt or criminal can get themselves out of jail. In this case the tribal elders who advocated his release may themselves have faced threats from the Taliban and argued for his release. He was killed in a US pinpoint bombing raid.

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China Merchant Port Holdings takes a 70% stake in the Hambantota Port project, in an agreement with Sri Lanka Ports Authority. It will handle the commercial operations of the port under a 99 year lease. This is part of the plan to convert the $6 billion Sri Lanka owes to China into equity. Hambantota port has losses of $300 million since 2011. China plans to invest $600 million to develop the port. The port project is a $1.12 billion lease to China. Sri Lanka's ports minister says the port will not be a military base for any country and will operate under Sri Lankan law. China is making the investment as part of its One Belt, One Road Initiative, which has aroused concern in Japan, India and Australia.