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Bloomberg television interviews Russian President Medvedev.

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India's leading energy official, Anil Swarup, the Coal Secretary, says India has to depend on what is available, with slow progress on nuclear power there is not much else. As India increases its growth rate to 7-8% India will increasingly be dependent on coal. The Modi government plans to double coal production. About 300 million people in India have no access to electricity. The country faces energy shortages in other areas. Even with a push for renewable solar and wind energy, coal is expected to provide 60% of energy needs in India in 2030. One government model shows solar and wind increasing from 6% to 18% by 2030. India points to per capita emissions which are 1.7 for India, 6.2 for China, and 17.6 for the U.S., according to the Carbon Dioxide Information Analysis Center.

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International Energy Agency estimates show the U.S. surpassing Saudi Arabia as the world's largest oil producer by 2020 because of the boom in shale oil production. The estimates are for 11.1 million barrels a day from the U.S. in 2020.

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Peter Altmaier is director of the chancellery in Berlin, and is the person closest to Angela Merkel. This report in the Economist points out that Altmaier has played a critical role in steps taken by Merkel- as chief whip in parliament for the CDU during the Greece financial crisis and bailouts, as environment minister implementing the program away from coal based electricity, and in negotiating deals such as the deal with Turkey on refugees, and now with Brexit negotiations. Merkel has asked Altmaier to write her manifesto for the September 2017 election. A member of the CDU's liberal wing, Altmaier is known for being a scholar on German history, especially Bismarck, and a workaholic. Here he is mentioned as a bridge maker for the CDU to the Greens Party and was part of a group of CDU and Green Party politicians who met at an Italian restaurant in Bonn. As the moderates are now dominant in the Greens Party, a CDU coalition with the Greens could be shaped by Altmaier if the election results move in that direction. ...

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Hubbard and Erdbrink report on U.S. president Trump's visit to Saudi Arabia to begin a new chapter in relations with the Gulf nations and the Saudis. Under president Obama the U.S. distanced itself from the Saudis and the Gulf nations, preferring to pursue a policy of closer relations with Iran and signing the Iran nuclear deal. This included a policy of staying out of Syria to the point of turning down a decision to deploy U.S. airpower to maintain no-fly zones to protect refugees. Syrian government forces fighting rebels were supported by Iran. The new policy is dictated by the new conditions in the Middle East. The U.S. has sought since the presidency of Reagan to balance the power relations in the region. With the nuclear deal signed and Iran respecting the deal according to independent reports, the U.S. allied with Iran in the battle against Islamic State in Iraq,  a shift was needed to balance the support provided to Iran by Russia which worsened the refugee crisis in Syria. The Republican party and Mr. Trump were critical of the Obama Iran policy during the nuclear deal negotiations. The safety of Israel is also a factor as non-state actors were supported by Iran threatening Israeli security. For these reasons the shift is an effort to rebalance the relations in the region. The arms deal in its size and president Trump's statement that Iran had "fueled the fires of sectarian conflict and terror," can be seen as this rebalancing. A business aspect of the large arms deal is that it will promote job growth in the defense industry in the U.S.. Other countries including Germany have seen growth in their defense industry. This is not the best way forward for the Middle East, yet it is a way the U.S. and nations in the region are adjusting to realities- the collapse of the Arab Spring from within and without the help from outside, the sectarian conflict arising from the Shiite pushback from Iran following the Baathist and Sunni control of Iraq which collapsed with the U.S.invasion, where the majority of people are Shiite yet with a strong Sunni presence. Elections brought Shiites in power, leading to a Sunni response in the form of Islami State caliphate move into Mosul, Iraq's second largest city after Baghdad. A decade of conflict and the efforts by the Bush administration ended in failure and sectarian conflict, resulting in the U.S. policy of rebalancing in favor of Iran to negotiate the nuclear deal. In this sense the arms deal does not solve anything. A similar rebalancing under Reagan by arming one side, followed by arming the other, led to involvement with ground forces under president Bush. It only leaves the region poor after years of sanctions against Iran to the point where a NYT reporter was not sure whether it was safe to fly from Tehran to Mashad with Iran Air because of the lack of spare parts for the airline. War torn, with millions of refugees in Syria and Iraq, the region remains broken in many ways, waiting for a sensible non sectarian view to prevail in the interest of the people in the region. The election of Rouhani in Iran by 57% of the vote is only a sign that young people in the region given a chance would opt for a different course in future. The rest of Asia has moved forward and shows a path that can be followed. ...

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Problems Russia faces in gaining entry into the WTO. This includes high import tariffs in Russia, arbitrary interpretation of rules, the customs union with Belarus and Kazakhstan, and corruption. Russia is the only major economy that is not part of the WTO. China was admitted in 2001. The WTO rules limit import tariffs and provides a legal system of dispute resolution for trade disputes. According to Business Europe, Russia increased tariffs for a range of factory products after the 2008 crisis. These tariffs alone cost EU companies $820 million a year. Russia's deputy prime minister Igor Shuvalov, says that without WTO access modernization and innovation for Russia will be very difficult. Companies like Boeing would be big winners with WTO entry for Russia. Tariffs on wide-body aircraft would then drop from 20% to 7.5%, and Russia expects to buy 1,000 new commercial aircraft in the next 20 years.

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The situation in urban areas of Iran- which experienced popular protests in an earlier election- before the elections in 2013.

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Under new proposed changes carbon emissions permits would be sold to industry and heavier polluters would have to pay more. And to make it fair to European companies exporters in other countries like China would have to buy these carbon permits to be able to export to Europe. There is similiar discussion about this in the USA which expects caps on greenhouse gas emissions in a few years. These changes wouldn't go into effect till 2013 at the earliest and industry will be trying to create a level playing field by then. Countries like China and India because they are developing have been exempt from the greenhouse caps under the Kyoto Protocol which expire 2012. Under the Kyoto Protocol which Europe signed and the USA did not sign, European companies are giving carbon permits free to emit a certain amount of greenhouse gas every year, the heavier polluters have to buy the permits from the ones that pollute less creating an incentive for companies to reduce emisssions.

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Criticism of Rumsfeld and Cheney from the elder president Bush about the presidency of his son George Bush, and the belligerent tone struck by Rumsfeld and Cheney during that period.

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Friedman on the $110 billion to fight wars in Afghanistan and Pakistan that does little to advance American interests and values. Especially today when the peoples of the Middle East are struggling to be free of the corrupt military regimes that have ruled their countries, and are trying to setup democratic processes in their countries. The pressing needs at home which are better attended to with these funds. The need to redirect some of this to help young people in the Muslim world bring new hope, development and democratic processes to their countries.

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This Journal editorial points to the 3 page letter from Gen. Dempsey that make a U.S. response in Syria seem difficult and laborious, cost $1 billion a month, and endless. Gen. Keane points to the Syrian air force operating from just 6 main air strips and with about 50 aircraft out of 100 operational, using this to terrorize the opposition and the countryside indiscriminately including civilian population. Taking these out with cruise missile and other strikes is all that is needed, not even a no-fly zone says Keane. Short of a proper response the U.S. and the Obama administration could only end up leaving the Assad regime in place for longer, says the Journal. Aid to rebel groups that can then do the work of completing the transition is the right strategy, says the Journal.

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US differences with Pakistan are based on two different perspectves that are not reconcilable. Recent events and the relationship between the US and Pakistan's army chief have confirmed that this is not going to change. US sees militants and Taliban inside Pakistan as havens for the short term as the US disengages from Afghanistan, whereas Pakistan's army sees them as useful elements in Pakistan's security interests in relation to India for the long term. Whe Kayani met with Obama in Washington, he handed Obama a 13 page document showing Pakistan's strategic perspective and emphasizing the gap between short term US interests and Pakistan's long term interests. The Wikileaks cables show Kayani discussing with US officials a possible removal of President Zardari and his preferred replacement. This made Kayani, normally reticent, to rant for hours on the irreconciliable differences between the US and Pakistan with a group of Pakistani journalists. He described Pakistan as the US's "most bullied ally," and said the frames of reference of the US and Pakistan regarding regional ssecurity "can never be the same," according to news accounts. And added that "the real aim of US strategy is to de-nuclearize Pakistan." Holbrooke and Admiral Mullen had hoped to reverse "a trust deficit" between the two sides. But this has not happened. General Petraeus is taking a tougher attitude and patience is thin on both sides. According to a Kayani friend, air marshal Chaudhry, Kayani is always asking Petraeus what the strategic objectives are in Afghanistan. US officials say they have given up on changing Kayani's thinking and that Kayani has told them: "I don't trust you." Kayani's position makes sense when one looks at the strongly anti-American public in Pakistan. Pakistani military and intelligence officials say a campaign against militants inside Pakistan incites domestic terrorism and uproots local communities. And by following Pakistan's own interests and frames of reference Kayani sends signals that win esteem among the Pakistani public. Opinion polls now show the military held in higher esteem than the Zardari administration. This puts the US in a no-win situation in Afghanistan with no clear objectives for the long term. This leaves the US in a time of tight budgets stretched thin to meet the needs in other defence areas that need attention, such as modernization of forces, trouble spots such as Korea, Iran and elsewhere, and resources needed for modernization of US infrastructure and supporting new technologies and industries. The lasting solutions that will take time, careful thought and preparation would be to integrate South Asia as a whole into an economic zone, extensive infrastructure building, and bring India and Pakistan closer through diplomacy and negotiations. See the articles by Richard Haas and others on the need to redirect resources. ...

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Coal India, is a state run monopoly which is a huge stumbling block for India's economic development. India lags behind Brazil, Indonesia, Thailand, Vietnam and Malaysia in the percentage of the population having electricity. Production methods do not use modern technology similiar to mines in other countries, and the average age of the 333,000 employees is 45-50 years. An eight hour shift at some mines produces as much coal as a mine in the U.S. does in 5 minutes, because of the lack of modern technology. About 300 million Indians lack electricity. The Modi administration's focus is on improving efficiency, introducing competition, and bringing major technological changes to the coal industry. Piyush Goyal, India's Coal minister faces one of the biggest challenges in the Modi administration. His focus is on efficiency, and the Modi administration has set a target of 1 billion tons for 2020, a 15% increase in production each year for the next 5 years.

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This WSJ editorial calls the ISI and Pakistan army's playing both sides of the game- acting as an ally of the U.S. and supporting the Taliban- unacceptable. The editorial points to the Taliban and its leader Mullah Omar running the operations out of Quetta, in Baluchistan. And the Taliban faction loyal to Jalaluddin Haqqani having sanctuaries in North Waziristan and the tribal regions of Pakistan. Al Quaeda's No. 2 Ayman al-Zawahiri, it says, could very well be in Pakistan in some compound in the manner of bin Laden.

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Mitt Romney on the weaknesses of America's position in the Middle East in policies for Syria, Libya, Egypt and the rest of the Arab world. The problems with Iran and the lack of results in bringing an end to Iran's nuclear program.