LyrArc Article Gist
New U.S. sanctions on two large Chinese companies, China National Offshore Oil Company, Semiconductor Manufacturing International Corporation, two of the largest companies in oil and chip industries, for ties to the military. The Trump administration is closing its term with sanctions on 35 of China's largest companies.

LyrArc Article Gist
Cuba needs 100,000 gallons of fuel a day. It produces 40,000 gallons a day on the island. The shortfall is leading to a humanitarian crisis with the dererioration faster than expected. Reports from Le Monde, El Pais, and other media show adire situation unfolding. To provide about 10,000 private companies with enough fuel to operate as they import $1 billion of food and goods each year the US government is allowing the flow of some oil to Cuba. This is about 100,000 gallons in small containers as a step to avoid a economic catastrophe. For Cuba, as in Venezuela, and Colombia, and also in Mexico, central America, thirty years of experimenting with ideological movements has led to unmitigated disaster with drug trafficking, drug cartels, migrant trafficking, economic mismanagement on a massive scale. The result is repercussions across the continent and disturbing the social, political and economic fabric of the United States.

LyrArc Article Gist
Just one day a week of work from home can boost productivity by 13%. Many companies are now planning to make this permanent to have workers not come to office every day of the week. Fujitsu in Japan, and digital tech companies in the U.S., service companies in law and accounting and other professions are also making the shift.

LyrArc Article Gist
This report in WSJ looks at the unanimous vote in the House of Representatives delisting hundreds of Chinese companies trading on U.S. stock exchanges. The Holding Foreign Companies Accountable Act passed by unanimous voice vote in the House of Representatives after a similar vote in the Senate in May, and will be signed into law by president Trump. The law says foreign companies should be delisted if they fail to comply with U.S. Public Accounting Oversight Board regulatory agency's financial audits for 3 years in a row. The basis of the law is that all companies should be equally treated and required to meet U.S. regulatory standards to be listed. It also ensures safety for investors who may be defrauded of their money investing in companies that have not met such audit requirements. Wirecard in Germany and some Chinese companies have failed in the past because of lax overseas standards. This gives three years for the Chinese companies to prepare. This report also points out that the MSCI Index has 43% Chinese companies even more than before. American investors can still buy these stocks on the Hong Kong exchanges so that if fairness and investor protection should prevail American investors have to think and act along the same lines. China is also decoupling from the U.S. to some extent and pushing to have its companies listed on the Hong Kong Shanghai and  Shenzen stock exchanges. For these reasons the access to global capital is not likely to be affected by this law particularly with the behaviour of major American institutional investors. China is providing incentives to these investors even though it did not do so in the past creating another hurdle to the goal of creating a level playing field in regulatory requirements stock for all companies listed on American exchanges and safety for investors.  ...

LyrArc Article Gist
According to U.S. Senate investigators Apple recorded $26 billion, 65% of its income worldwide for 2012, in Ireland. Ireland Operations International is based in County Cork, Ireland. Ireland has about 4% of Apple's worldwide workforce. Laws in the European Union allow digital companies such as Apple and Google and other large companies to pay little in taxes through such arrangements. Apple CEO Cook says Apple is not using any tax gimmicks. Apple negotiated a low 2% tax rate with the Irish government. The Senate hearings in the U.S. and a meeting of EU leaders has raised concern about this practice being allowed at a time when much needed infrastructure investments are being shelved in the U.S. and Europe because of budget deficits. Spending cuts in education and in R&D hurt long term economic growth. Government statistics show the average Ireland tax rate on gross income of companies in 2010 was 6%. Ireland has a low corporate tax rate for companies of 12.5% which it retained after EU pressures to change the rate when the Irish bailout was provided. Ireland has 4000 Apple workers, and 600 American companies employ 100,000 Irish workers....

LyrArc Article Gist
This editorial page opinion in The Economist says the increasing concentration in business is a real problem today. It says tech companies like Apple, Google, Facebook, Amazon are entrenching through acquisitions of smaller companies and startups leading to an unhealthy level of concentration, and control of entire markets. More competition is needed so that startups and smaller companies can grow, and new ideas or ways of doing things get a chance. A big problem is tax avoidance with individuals paying taxes like everybody else, and large tech companies like Google and Apple having the option to not have to pay just like everybody else. It calls for a "tough-but-considered" approach to tax avoidance. Its not that the money saved in taxes goes back to support millions of people hired by the industry through workers wages and future investment that builds a future for workers and the company. It cites figures showing 1.2 million employed in the top 3 carmakers in the U.S. auto industry in 1990, and only 137,000 employed by the top 3 companies in Silicon Valley including Apple and Google with capitalization of about $1 trillion.This contributes to a sense of unfairness that is being expressed in voter sentiment in the 2016 elections, especially with the wide divergence in the way that the top 45 percent has done in net worth of over $400,000 in 2013, after the 5% which is in the millions, and the bottom 50 percent at average overall net worth of $25,000 in 2013. A huge disparity that  U.S. Federal Reserve chairwoman Yellen, who cited these figures at a Boston Fed conference in Oct. 2014, says is "near their highest levels in the last one hundred years and probably much higher than for much of American history before then."  ...

LyrArc Article Gist
US to take stakes in American companies to help them achieve goals of Make in America with Intel stake the first action. The $8.9 billion Biden intended for Intel to make chips in the US will be handed over to Intel but for a stake in the company of 10%. For years Taiwan, South Korea, Japan and China have subsidized their companies in different and some hidden ways. Many times these companies have sustained losses as they built for the long term in volatile market situations. Nvidia now a trillion dollar company was at one time a company struggling to survive saved only by a Japanese corporate investor as shown in a recent WSJ report. The US has taken no such action losing its dominant position in many advanced industries including chips till the Biden and DJT administrations. Yet the media keeps voicing the old ideas of market capitalism as if there is such a thing when state capitalism operates with market capitalism in the Chinese model, and a form of semi state capitalism operates with market capitalism in Taiwan, South Korea and Japan with hidden subsidies by the state to build dominant positions in certain industrial sectors. Even US companies are willing to take such subsidies as when Elon Musk builds car plants in China with state assistance and support, which never comes up in the media even when the Chinese EV makers are learning from the Americans and Tesla is losing market share in China. Theory is for the textbooks and economists,  in business all forms of capitalism work including a mix of state and market, and America has to invent its way back to lead the way in advanced industries.  ...

LyrArc Article Gist
A study and analysis in the One Earth journal for climate change action shows oil companies owe about $209 billion annually to pay for damage caused from climate change. The leading companies accounting for about 10% of global emissions are Gazprom and Saudi Aramco. These companies have benefited greatly from the oil price surge. The US and European oil majors who also have profited greatly from the oil price surge come next. Further distorting the effects of wars, financial crises since 2010, the war in Ukraine creates price surges from which oil companies benefit while the vast majority of people in the world are affected by a cost of living crisis made worse by higher energy prices. This is what is important to keep in mind as the US under president Biden prepares to play a leadership role in correcting these unneeded and bad distortions on how it affects the lives of workers and families in the US and Europe, as well as in Asia, Latin America, Africa. ...

LyrArc Article Gist
A bill requiring that women make up 30% of nonexecutive supervisory board members of 100 companies by 2016 is likely to pass in the German parliament in Dec. 2014. Women make up 22% of the supervisory board of 30 companies on the DAX. The new bill requires that companies have to leave the positions unfilled if they cannot find women. France requires 20% of nonexecutive director positions go to women, which goes up to 40% in 2017. Women make up 29.7% of the boards of the 40 companies in France's CAC 40 index, which is up from 12.3% in 2011. The European Union has set a goal of 40% women on boards by 2020.

LyrArc Article Gist
Taiwanese disinformation prevention efforts include tracking down fake information sources, connecting with the government agencies, Google and Social media companies, and action making internet companies responsible for the information on their sites. Google has trained 110 people in Taiwan as part of this effort. Taiwan also places importance on the public getting trained to spot what is unlikely to be true and inconsistent.

LyrArc Article Gist
Changes to dividend policies for state owned companies made at the Third Plenum in Beijing in November 2013. Plans were approved for state owned companies in China to increase dividends for the government to get 30% of after tax profit by 2020, up from about 15%. Frangos says it would be difficult for the companies to implement the 30% target without having listed subsidiaries make dividends available to all investors.

LyrArc Article Gist
Where changes are being made that make America stronger business leaders wholeheartedly support and value the president's work and the people on his team working on it. Brad Smith of Microsoft says of Biden on cybersecurity "he has done more in his presidency than any president ever." CEO's of auto companies (Stellantis, GM, Ford) and Intel CEO Geisinger value the investment the government is making for climate change transition and investments in rebuilding semiconductor manufacturing to level the playing field with China, something the US Chamber of Commerce never advocated. It is the policy officer of the US Chamber of Commerce who uses the word "complicated" because the positions taken by the US Chamber of Commerce are at odds with what the American people need, or are demanding of the president. If one is talking about large oil companies, so called Tech companies such as Google and Apple that are not paying their fair share of taxes, and Pharma companies that are charging exorbitant prices, the president is only doing what is best for the American people. One could see this in the recent Senate hearings with Big Pharma companies ,when out of sheer frustration the senior Republican senator Mike Braun of Indiana warned the Pharma companies, that they were following a path that he other Republicans could no longer support. Banks faced tighter regulation because of banking crises including the 2009 crisis caused by the banks that hurt workers and middle class. Business relations with the Biden administration are being shaped then by a new vision for America and the American people, to point to a brighter future, not to pull back to the past. ...

LyrArc Article Gist
Xi Jinping's experience as Communist Party secretary in eastern Zhejiang province, and in running Shanghai, gave him insights on how the private sector had changed the province and the weakness of state run companies; as well as how state run companies operating efficiently such as SAIC in the automobile industry in Shanghai had achieved success by diversified ownership through listing on the Shanghai Stock Exchange. Studying how Singapore's Temasek has provided efficient management of state owned enterprises, which are run like private companies and have private investors and compete in markets; has reinforced the idea in the Communist Party that state ownership in key sectors can be maintained. The idea being adopted is retaining a majority controlling interest for the state at the same time as transformation of state run enterprises to operate similar to private enterprises takes place. The new plan put out by the Communist Party and the State Council, China's cabinet, takes up reform of the large state owned enterprises in China along these lines. The enterprises will take on private investors, list on stock exchanges, and operate like private companies hiring managers at the market rate. The energy, resources and telecom sector state enterprises will be reorganized as asset investment firms, and these enterprises will be required to operate like private companies to maximize profits, hire managers, and list on stock exchanges. ...

LyrArc Article Gist
Microsoft leaders for reasons of climate change action and aid to poor African and Latin American nations see the positives in Harris-Walz focus on investment in the future. A similar situation exists with JP Morgan Chase bank leaders. Intel and Ford Motor Company leaders see the Biden administration investment in American companies for stronger competition with Chinese or Taiwanese companies, and for climate change action by investing in EV industry technologies, in the same way. Overall cutting corporate taxes is not as big a priority for American business as government assistance and support to match the hidden subsidies Taiwan and China, South Korean governments give to their companies in Chips and EV's, other advanced technologies industries.

LyrArc Article Gist
Credit card companies do not disclose how much of the profits are from penalty fees. These companes target borrowers who rarely default but often pay penalty fees. The new bill makes high margins from this practice and lending to subprime borrowers difficult.

LyrArc Article Gist
The WSJ looks at $110 billion in projects which get financial support from the US government under the climate law of the Inflation Reduction Act. Many of the projects are being done by foreign companies. Panasonic is planning a third battery plant in the US and will get $2 billion in tax credits from the US government. Other companies are from South Korea such as LG, and from China. The intent is to build a US supply chain that depends on factories in the US and creates jobs in the US, yet because the US supply chain is so undeveloped with so little attention paid to it in the past, foreign companies will be needed.

LyrArc Article Gist
Microsoft CEO completed 36 major acquisitions since taking over from Steve Ballmer in 2014. In this report Jay Greene of WSJ points out a significant change under Nadella. Under Gates and Ballmer the heads of companies acquired were not brought into company executives discussions. Nadella invited these heads to join the rest of the company's top managers to meetings to hear different views. Nadella says Microsoft would not have missed big trends had it listened more. Under Ballmer acquisitions such as Nokia were not properly handled. Even under Gates in the earlier period products in Search later developed by Google did not get the attention they deserved and heads of companies acquired did not get  to actively participate. The Not Invented Here Syndrome applied to Microsoft managers. The aggressive attitudes did not produce the best results. Like Apple's Cook who has a collaborative style, Nadella has set out to open up the company to different ideas and people. Nadella has shifted the company away from earlier products to cloud computing and mobile computing to produce better results. Under Nadella open source software programming receives the openness and respect it deserves, after the Ballmer years. The change in attitude is real and Nadella as a Microsoft veteran for 24 years has been able to steer the company in a new direction. ...

LyrArc Article Gist
Howard Luttnick became an expert in SPAC's to build his financial business. SPAC is a publicly listed shell company created to take a private firm public through a merger. Howard Luttnick, the nominee for Commerce Secretary, used his experience on Wall Street to form SPAC's which made money for the finance professionals who set them up as they secured ultra cheap shares, but which as this WSJ report shows did not do well for many investors. Luttnick has called SPAC's as private equity for the public market meaning the public can get access to new idea companies including new tech through shares- sports betting firm DraftKings or space tourism firm Virgin Galactic in which ordinary people and wealthy individuals or companies can invest. Luttnick's comapny Cantor Fitzgerald owns three companies two publicly traded worth $2 billion and paying out $37 million, according to the WSJ, and  a third company which offers investment advice to SPAC's. It helped SPAC's raise $19 billion to take companies public, No.2 in this business after Citigroup. ...

LyrArc Article Gist
Mitsui, Mitsbishi of Japan and Shell of the UK are companies with large stakes in LNG projects in Russia. These stakes have continued through the war, with Shell hoping to sell to Chinese companies and no information yet about Japanese plans. Japan has shown no indication of divesting itself of these assets as it pursues its own energy interests during the war in Ukraine. 

LyrArc Article Gist
The NYT says many of India's largest and most profitable companies are "relative models of probity," and several ranking among the world's best governed companies including companies in the software and pharmaceutical sectors. Large parts of the Indian economy have little appetite for the risk taken on by the Adani Group and are run on a financially conservative basis. Infrastructure is unique for this kind of risk taking because of decades of neglect of Indian infrastructure during the 1995-2015 period, when China was rapidly building infrastructure with large investments and India fell behind. It is that catchup mode that induced Adani Group's aggressive efforts taking on debt for outsize goals that it was willing to adopt for coal, solar and port logistics. As a result the Indian economy with companies such as Infosys and Dr. Reddy's Labs says the NYT, is largely not affected by the problems of the Adani group's debt structure.    ...

LyrArc Article Gist
During 2018 negotiations China's vice premier Liu He asked finance business leaders "We need your help." This included  Black Rock, Goldman Sachs, JP Morgan, and others. In exchange China which has protected its financial markets from American finance companies now offered to give some opportunities, though as other companies in other industries have found out this could be limited by other priorities.  The Trump and now the Biden administration are pursuing the decoupling of the Chinese and American economies after learning through two decades that it is damaging to the U.S. economic position in the world. The new law passed by unanimous vote in Congress to be signed into law by president Trump requires Chinese companies to have financial audits inspected by U.S. regulatory agency for them to remain listed on U.S. exchanges. However as the WSJ points out in a separate article this does not restrict Chinese companies access to global capital in unfair competition with the U.S. because the law goes into effect over 3 years giving Chinese companies. American investors can also invest in the Chinese companies on the Hong Kong stock exchange unless their entire thinking process changes seeing what is best for America as best for them. ...

LyrArc Article Gist
Companies in retail, construction  entertainment sectors made layoffs in the first 2 years of the pandemic. White collar workers worked remotely and were not affected that much. In 2023 the layoffs are now affecting professionals and white collar workers. White collar workers are also paid more which creates savings for companies when they layoff higher paid professionals who do not perform critical tasks. In manufacturing and blue collar worker industries there are not many layoffs because companies are hoarding these workers as there are worker shortages. Many workers retired in manufacturing and blue collar leading to shortages in these sectors. Because this is not typical in the layoffs and hiring cycles seen previous to the pandemic this is an unusual situation.

LyrArc Article Gist
Areas for growth for the Indian drug Industry include the large growing domestic market, the outsourcing by US drug manufacturers, and sales in other developing countries of Asia, Middle East, Latin America and Africa. Analyst estimates are that India will spend $30 billion a year on drugs to improve care for its people in the next 10 years up from $8 billion today. And the distribution network is being developed by drug companies insdie India to reach more people. Also companies like Pfizer plan to double outsourcing of manufacturing drugs from 10% today to 20%.

LyrArc Article Gist
GE Appliances now owned by China's Haier Smart Home to invest $3 billion to modernize US factories after DJT Tariffs. It shows that Tariffs are leading to reshoring to the US by Chinese companies along wiht Japanese and European ones.

LyrArc Article Gist
The need to rest recharge after long days, weeks and months at work, is now being recognized as a necessity if knowledge workers are going to contribute to companies. At the other end is burnout that hurts both workers and companies. This report in NYT shows how company managers and heads of companies are pushing workers to take time off, go on vacation on a mandatory basis. A big part of the problem in the pandemic is that the work is out of the office and the lines of work and office are blurred. Disconnecting the way it should be done is not managed well these days, there is need for what in Germany is called "feierabend," disconnecting as a ritual to be followed at all times while working from home or office.