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British Firms back up the Stern Review a study commissioned by the British government by joining together on carborn emissions reduction. The 18 top companies in Britian backing up the Stern Review include Tesco, BP and BT employ 2 million people and have $2 trillion in revenue. What the Stern Review pointed out is that investing 1% of GNP now will save costs worth 20% or more of GNP in future years. Heres how- the companies will develop a standard on how companies regularly report emissions, will invest in technology and emissions saving projects, and will reduce emissions froim cars and offices.

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Within minutes of the SNB's decision to lift the cap on the euro the Swiss Franc surged 30% against the euro and 18% against the dollar. FXCM, retail currency broker, suffered severe losses and the company needed a $300 million investment from Leucadia National Corp. to survive. Citigroup and Deutsche Bank AG each had losses of $150 million. Hedge Funds Discovery and Comac also suffered losses. FXCM losses stem from use by FXCM clients of borrowed money, along with higher leverage the company also has lower margin requirements. Interestingly FXCM fought CFTC efforts under Dodd-Frank legislation to limit leverage to 10 to 1- saying "it would have a devastating impact and drive it overseas." The limit finally set at 50 to 1, meant that an investor could borrow $50 for every dollar he put in of his own. The leverage meant large losses for inexperienced investors and threatened the survival of FXCM in a matter of minutes.

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The owner of the Sips Cafe in midtown Manhattan is one of many investors stuck with large losses on the day the Swiss National Bank removed its cap on the Franc.

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Possible downgrade of France's major banks after the credit rating downgrade for France on Jan. 13, 2012.

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This editorial in the Economist says Scots should get fiscal autonomy, and manage their own affairs including setting minimum wage, and tax rates. It says England should not subsidize Scotland as it currently does, and this will lead to Scotland bearing additional cost of about 8 billion pounds. It reminds readers that only about 50% of Scottish voters voted for the Scottish National party in the 2015 general election, and once Scotland has to balance its own books voters would have a chance to rethink the level to which they want a welfare state. As in Quebec the nationalist party may not have the same voter support when it has to tackle the difficult tasks involved in self government. This also means Scots would not be voting on how to manage affairs in England, leading to a federation for England, Scotland, Wales and Northern Ireland.

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The low voter turnout helped protest parties such as the National Front in France and the Independence Party in Britain. The average across the EU was 43% turnout, with turnout in Britain at 36%, Slovakia 13%. Renzi in Italy led the Socialists there to 40% of the vote, and Merkel's CDU got 35% of the vote in Germany. The UMP came in second with 20% of the vote to Marie Le Pen's National Front's 25%, and Hollande's Socialists at 13% in France. In Britain the Independence Party won with Labor and Conservatives in second and third place. There are deep misgivings in Britain for Jean Claude Juncker who is the candidate for EU President from the centre-right European People's Party, which has 213 seats in the 743 seat parliament. Misgivings stem from whether Juncker can deliver on promises for a EU without much of the bureaucratic tendencies for Britain's 2017 referendum. The German SDP party's candidate is also contesting the election for EU president. Next come the centre-left parties of Socialists and Democrats with 190 seats. In the past EU president was chosen not by parliamentary election but by government leaders....

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Forecasts from French bank BNP Paribas show Britain's national output or GDP is expected to grow 5.4 percent in 2022, faster than economic growth in China of 5.3%. China's growth is slowing sharply because the manufacturing sector is facing energy shortages, and the construction sector is faced with decades of buildup of debt that cannot be paid.

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Early elections in Turkey for parliament and the presidency called by president Erdogan are giving the opposition a chance. The economic growth during the early Erdogan years is beginning to fade with Turkey's rising debt levels, companies with large debt repayment, and the loss of half the value of Turkish currency Lira since 2014.  Muharram Ince of the Republican People's Party, CHP, is able to connect to religious voters from his secular base. The CHP has allied itself with the Islamist SP Party, and the nationalist party Iyi led by Meral Aksener. This alliance is now poised to challenge Mr. Erdogan in the coming election with a different combination of forces loosening Mr. Erdogan's grip on Islamist voters and nationalist voters, by bringing together the nationalist, secular and Islamist in a new way. The focus of this alliance is not dividing the country between Islamist and secular as in recent elections, but more along the lines of keeping some of the basic elements of democracy eroded in Mr. Erdogan's efforts to setup what the opposition leader Mr. Ince calls a "one man regime." As in Malaysia's recent election corruption is also an issue raised by the opposition. ...

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The Bangladesh election resulting in a clean election from the comments of independent observers, and the election of the secular party Awami League run by the daughter of Mujibur Rehman, who led the movement that founded Bangladesh. The Awami League won a sweeping majority of 230 seats in an election with a 70% turnout with a lot of younger voters voting for the first or the second time. For one third of the voters this was their first election, and for another 23% this was their second election after the one in 2001. And that they swept aside the opposition BNP which had allied with Islamist parties and with the main Islamist party Jamaat-e-Islami able to win only 2 seats, is a sign that there is a shift in opinion in Bangladesh among the younger voters. THe main concern of voters is the price of food, as 45% of the 150 million Bangladeshis live on less than a dollar a day. The lower prices of fuel and commodities and lower inflation as a result of the global economic crisis and the good rice harvest in Bangladesh improves things for these people even as the global crisis reduces growth rate from 6.2% in 2008....

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The Spanish election produced a better than expected result for the Sanchez government. This report in CSIS shows that after a brief period Spain is returning to dominance of the Party Popular or the Socialist Party, the two governing parties in Spain, with smaller parties doing poorly. Both the PP and the Socialist Party are vying for support of a majority of 176 seats with the help of smaller parties. The VOX did not do as well as expected and a PP VOX party government looks less likely says this report. Even if a government with Partido Popular is formed it will continue most of Spain's foreign policy of supporting NATO and the EU. Mr. Sanchez formed a new government in 2020.

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The third pick of songs by chancellor Merkel for a farewell ceremony at the Defense Ministry, after her first pick of a Christian hymn from the 18th century "Holy God we praise thy name," is one that was on East German pop charts in 1974. It is "You forgot the color film," by Nina Hagen. The song is an angry lament that admonishes Hagen's boyfriend Michael, for not bringing the color film during their visit on holiday to Hiddensee Island. As a result she sings "no one will believe how beautiful it was here." The lyrics were written by Edward Demmler and it was sung by Nina Hagen in conventional schlager style. Merkel spent much of these 16 years seen on television sticking to strict austerity measures for European Union countries. Not investing in childcare, education, retirees, healthcare, and the infrastructure for broadband, roads and bridges, leaving Germany and with it the European Union in stagnation. Only in her last years was she persuaded by her vice chancellor Scholz of the SDP of the need to invest heavily in Germany and the European Union to fight the coronavirus pandemic with aid to the people of Germany and European Union. As she leaves she ponders the lessons both of the GDR in the east and the Federal Republic in the west, both had their flaws and their potential and both could learn from what was missing in the other. An opportunity for reflection and understanding. It is to Scholz and the Greens that is left the task of making the Federal Republic what it could be, to reaching as much of its potential for the good of Germany and the good of the European Union. Even though the singer became a punk artist after moving to the west following the fall of the Berlin Wall, she was a conventional. schlager style singer before that. So that 16 years after trying out the free market version of capitalism Merkel who grew up as a young East German teenager in the former German Democratic Republic realizes that this period after the fall of the Berlin Wall was not all that it was made out to be. As the Guardian puts it this embrace of her East German identity is no characteristic of Merkel as during these 16 years she rarely brought up her growing up years in East Germany. ...

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H-P CEO Apotheker says that to be successful in the business of consumer devices like the PC it would have to invest a lot of capital that could be better invested elsewhere. This capital invested in a low margin business such as PC's coud be freed up to generate the size of capital H-P will need to compete in software and services with companies such as Oracle and IBM. As part of this makeover of H-P the company will take a $1 billion restructuring charge to shut down the tablet and smartphone operations. H-P invested $1.2 billion for the Palm acquisition in 2010 to acquire an operating system for those devices. Apotheker expressed disappointment with the sales of the tablet devices and smartphones. This decision happens 10 years after the decision by H-P to acquire Compaq Computer Corporation for $25 billion. In 2008 H-P acquired Electronic Data Systems for $13.9 billion. With the new strategy Apotheker is focussing on software. Apotheker brings experience in software as CEO of SAP Inc in his previous position and understands the software business. The agreement for the acquisition of U.K. software firm Autonomy for $10.3 billion this week is part of the makeover of H-P under Apotheker....

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The next tranche of aid to Greece is 31.5 billion euros on Nov.12, 2012. Greece has agreed to a package of austerity measures of 13.5 billion euros of spending cuts and tax increases. About 85% of this will go to recapitalizing Greek banks which took losses on sovereign Greek bonds under an agreement. The hope is that Greek banks will lend to businesses but there is skepticism in Greece about bank's willingness to lend. The economy is expected to contract by 6.5% in 2012. Under the agreement civil servants on "special salaries" will see cuts of 35%. Associate professors at universities will see the count reducd from 15,226 to 2000. A majority of tax exemptions will be ended. About 5000 civil servants in 2012 and 20,000 in 2013 will face salary cuts and be transferred to other jobs or dismissed. The package has to be passed in the Greek parliament. Finance minister Stournaras says Greece needs to reduce the interest rate on its debt and extend payback periods. Stournaras says Greece will be given more time to implement the austerity measures. The Merkel approach to the Greek crisis is causing a rift within the eurozone with France's president Hollande and the SDP opposition leader in Germany critical of the way it is being handled....

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More private sector participation in building India's infrastructure. Infrastructure spending will target moving upto 9% by 2011 from today's 5% of GNP which amounts to $50 billion. Views expressed by Ahluwalia, deputy chairman of the Indian government's Planning Commission.

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H-P alleges that Autonomy Inc. misrepresented its revenue before its acquisition for $11.1 billion in Oct. 2011. H-P made a surprise announcement Nov. 20, 2012, about a $9 billion charge it is taking for the Autonomy acquisition. Mike Lynch, founder of Autonomy Inc. says he cannot see how 300 people doing due diligence and Deloitte doing its accounting could have missed such a big elephant. Lynch tells the WSJ that he has not been contacted about this by the Serious Fraud Office. The Autonomy Inc. acquisition is unusual because it reflects a period of high CEO turnover at H-P with the hiring of former SAP CEO Apotheker to run the company, following the resignation of CEO Mark Hurd for relations with a female employee. Apotheker made the highly criticized decision to shift H-P away from its main business of PC's and into software. The Autonomy acqusition was the first step and it was widely observed that he had overpaid for the acquisition. A few months later Apotheker was fired by the H-P Board, with the Board itself coming under severe criticism. Lynch says most of the best Autonomy employees in the company he founded over ten years ago had left the company because of culture conflicts with H-P managers. This had already resulted in destruction of much of the intellectual value of the company....

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World leaders meet at the UN for action on climate change, especially Obama and Hu Jintao of China who represent countries that generate 40% of carbon emissions worldwide. Hu set the target for nuclear power at 15% of energy for 2020 from 8% now, and India set atarget of 20% for renewable sources of energy for 2020. President Obama said he saw the need for the developing industrial nations, by which he meant China, India and Brazil, to adopt targets for curbing emissions in any agreement, but Hu Jintao was vague about any specific targets. So the gap remains as the US goes to the Copenhagen talks on climate change in late 2009.

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Obama calls for countries to join together for action on the important global issues- nuclear proliferation and disarmament, poverty and hunger, climate change, economic growth, financial crisis- without naming them.

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Germany's export oriented economy and its export oriented companies are struggling in 2021 with broken supply chains and high energy prices. This report in the WSJ looks at how Germany needs to rebuild its economy in a different way. German industrial output was 9% below its 2015 level in August, compared to 2% for the eurozone as a whole, according to EU's statistics agency. Italy's growth was 5% over the same period. There is a redirection underway to bring more production back home after years of outsourcing and outshoring. Other changes taking place are the policies being put in place for net zero emissions by 2050, and the targets for 2030 that would make this possible. This also changes prospects for Germany's large auto industry. By 2030 30-50% of all cars will have to be electric cars. About 30% of Germany's industrial output and exports are tied to overseas demand, 4 times that in the US. From 2003 when competitive overhauls took place under chancellors including Mr. Schroeder, German industrial growth was sustained by demand from China. Now with China looking to internal demand following global tensions on trade, sales of some companies are looking flat instead of sustained year over year growth. What will happen now? Here is what the likely new chancellor from the Social Democrats has to say about the overhaul of the German economy and industry- "It will be the biggest industrial modernization project that Germany has carried out probably for over 100 years, and it will really help our economy." The SDP and Greens that together share the same ideas for rebuilding Germany around infrastructure and climate change and upward mobility, badly neglected in the Merkel years, plan big investments. Big investments are to be made in climate protection, high speed internet, education, research and infrastructure. Germany's net investment rate has been around 0.5% of economic output since 2000, compared to 1% for Italy and 1.5% for the US, according to the World Bank. This WSJ report even says net public investment has fallen below zero as existing assets depreciate. To achieve this transition Germany has identified several problems. One is the delays in investment projects that cost German companies 55 billion euros a year, about half the money invested in research and development, according to Germany's statistics agency. Germany was thought to be an industrial powerhouse but the quality of work in projects and delays so apparent in the Berlin Brandenburg airport infrastructure project clearly shows a decline over the past two decades. This will need to be fixed. Other problems are in getting more workers as Germany faces a shortage of workers for factories to 2030.     ...