LyrArc Article Gist
Amol Sharma and Paul Beckett of the WSJ interview Finance Minister Chidambaram about the Indian government's decisions to open up the insurance, retail and airline sectors to foreign investment, and bring the deficit down to close to 5.3% in 2013. Faced with slowing growth and the risk of credit ratings agencies lowering India's credit ratings the government of prime minister Manmohan Singh has decided to take some decisive steps, including a shift in coalition partners to maintain parliamentary support for these steps. When asked about what influenced the government's resolve to take these decisions, Chidambaram says credit ratings was one factor, another was the difficulty Indian companies were having raising capital inside the Indian market and overseas. In addition he says growth could not be sustained at earlier levels without new capital, and new foreign investment was needed for sustained growth. The Kelkar committee report provided a sense of urgency to the government by providing an independent view and showing the worst case scenario if the government maintained the status quo. Chidambaram says subsidies will now be transferred in the form of cash directly to beneficiaries and reduce costs by cutting leakage in the system.The government will use the list of LPG cooking gas households to transfer the subsidy for 6 gas cylinders directly to beneficiary accounts. The plan is to do the same for the Rural Employment Guarantee Program and subsidized foodgrains to cut the leakage that stems from duplication and falsification. The Indian government's ongoing program to use information technology to have computerized records of the the entire population and linking to the financial system, incuding a large rural population, now makes it possible to take these steps. On the Kelkar committee's recommendation to increase prices of basic commodities cooking gas, kerosene and food to reduce government subsidies, Chidambaram says this is ambitious and the government has to consider the political context even though it agrees that this has to be done over time....

LyrArc Article Gist
There are more women drivers in the U.S. than men. In 2011 50.5% of licensed drivers were women. This is an increase from the 39.6% figure in 1963, according to the Federal Highway Administration. Part of the reason for this is the decline in young men getting drivers licenses, and the larger share of older drivers with more women in that age group. Even though women still earn less than men the numbers are increasing, with women making 81 cents to every dollar made by men in 2012, increasing from 62 cents in 1979. In educaton levels achieved women are doing better- Labor Dept figures show 30% of women born in the early 1980's with bachelors degrees, and only 22% for men. That suggests their earning prospects will continue to increase. Studies by R.L. Polk show women prefer more fuel efficient cars. A study by RDA Group shows women buying the average new car in 2012 at a price 12% less than the average car bought by men. Only two of the top ten cars purchased by women in 2012 were U.S. brands- the Ford Escape at No.7 and the Chevy Equinox at No. 9. This shows that Ford, GM and Chrysler have more work to do to attract women customers....

LyrArc Article Gist
Wal-Mart and five other companies will invest $500 million in Chinese online retailer 360buy.com. Wal-Mart operates more than 200 stores in China. 360buy.com says it is growing fast, with sales in 2010 at $1.5 billon, up from $200 million in 2008. This coincides with rapid growth and the convenience of online retailing in China. Analysts says 360 buy manages its own goods and distribution, which are mostly consumer electronics. 360buy resembles Amazon in the US. i-Research, a firm in Shanghai, says online retail sales in China are taking off with sales growing from $8.5 billion in 2007, to $75 billion in 2010. Before 360buy the other major online retailer was Taobao.com, a subsidiary of Alibaba, which does not resemble Amazon or 360buy, as it is more of an online bazaar that maches buyers and sellers.

LyrArc Article Gist
GDP growth in the second quarter of 2010 was at 6.2% annual rate. GDP growth in 2009 was 4.5%. Foreign Direct Investment was $3.7 billion in the second quarter of 2010, according to the Investment Coordinating Board in Indonesia. This year foreign direct investment is expected to exceed the $14.87 billion of 2008. Indonesia still faces problems ranging from the lack of infrastructure building, a weak university system and corruption. The government of President Yudhoyono was reelected to a second five year term in 2009. Yudhoyono has made changes with more power going to local governments and efforts to reduce corruption. Indonesia has a large consumer market which is about two thirds of GDP. With a young population of 240 million, government policies for stimulus and popular cash transfer programs for the poor, the consumer market continues to grow.

LyrArc Article Gist
With housing, credit, the consumer and export markets all going out quickly in rapid sequence the predictions even with the Fed's stepping up to the plate with assets buildup to $5 trillion and the $1 trillion stimulus package Obama plans, it looks like 2009 and 2010 are going to be difficult years. After the 20% decline in 2008, BW's surveyed 45 economists see another 10% decline in house prices in 2009. Inflation sharply lower is expected down to 1.2% in 2009 from the 2.1% of 2008 end. The risks of a worse outcome than the 1973-75 and the 1981-82 downturns are high say economists at Citigroup and Chase JP Morgan, Global Insight. There is just too much happening at the same time and a self reinforcing dynamic that is not going to self correct anytime soon.

LyrArc Article Gist
Canada is the largest supplier of oil to the U.S., supplying more than 2 million barrels of oil imports a day. Here the heads of the U.S. and Canadian Chambers of Commerce argue that a new pipeline from Alberta, Canada to Texas would supply an additional 1.1 million barrels of oil a day. The pipeline project- called the Keystone XL pipeline- has been under review by the U.S. government since 2008. An Energy Dept study in February 2011 found that the project should go ahead, but it is being held up for further environmental studies by the Obama administration. The delays may be the result of opposition to Canadian oil sands development. At the same time significant progress has been made in reducing the environmental impact of oil sands development. About 80% of the water used in the process is now being recycled. Tailing ponds containing waste product from the oil shale process are also being reclaimed for green land and replanted with trees and shrubs. TransCanada says the Keystone XL pipeline could create 20,000 new American jobs for construction, and 250,000 jobs in the long run. Strict environmental standards can be followed say Donahue and Beatty, because the U.S. is partnering with Canada....

LyrArc Article Gist
Failure by EU leaders to take early and decisive action to reduce Greece's debt to sustainable levels in 2009. This was when the IMF report by Dutchman Bob Traa blew the cover off the Greek coverup of deteriorated finances. Policy missteps included ECB president Trichet and other EU leaders pushing austerity measures and not taking needed tough action on reducing the debt. By November 2011 a 50% reduction in debt with bondholders taking the losses is not enough to correct the situation. Greece's debt is discounted by 70% by Nov 2011. Analysts estimate an 85% reduction in Greek debt being necessary for Greece to pull through without a default.

LyrArc Article Gist
Huawei launches its smartphone model the Ascend P6 at the historic performing arts location Roundhouse in London. Huawei is using the same marketing tactics used by Apple and copied by Samsung to get customer attention. Huawei, the second largest supplier of telecom equipmen after Ericsson of Sweden, is not known for its consumer products. This is the first time it is adopting high profile marketing strategies to upset the duopoly of Apple and Samsung in the smartphone market. Other competitors are LG, ZTE, Sony and Lenovo, each trying to take market share from Apple and Samsung. Apple lost over 5 points of market share in smartphones in 2012 and Samsung gained close to 4 points by coming up with a low priced range of smartphones. Apple now has 17.3%, Samsung 32.7%, LG 4.8%, Huawei 4.6%, ZTE 4.2%, for 1st quarter 2013. Samsung now faces competition in the lower priced segments from Huawei, Lenovo, ZTE and HTC, companies in China with products for this segment.

LyrArc Article Gist
Ford's CFO Lewis Booth says Ford will take a charge to its first quarter 2011 earnings and use cash or shares to cut its debt by $3 billion. This would lower Ford's debt to $16.1 billion. It would reduce Ford's interest rate expense by $190 million. Ford spent $1.8 billion on interest expense in 2010. S&P rates Ford at BB- or three levels below investment grade. S&P will not change its rating because it considers this part of Ford's ongoing effort to reduce debt.

LyrArc Article Gist
The G-20 statement for the meeting in Washington D.C. in April 2013, says: "Japan's recent policy actions are intended to stop deflation and support domestic demand." Bank of Japan Governor Haruhiko Kuroda's response was that this will help the BOJ implement its monetary expansion program in an orderly way. Kuroda said: "Now that we have obtained the support of the international community, we will be able to implement our program with confidence." These moves come with a call for Europe to proceed with banking union and giving more time for austerity programs to reduce the slowdown in Europe. This happens as fears emerged of a global slowdown in April 2013.

LyrArc Article Gist
China's premier, Wen Jiabao, opened the National People's Congress, annual meeting of the Chinese parliament, by saying that China had lowered its growth rate to 7.5% from 8%. GDP growth for 2011 was 9.2%. Wen set an inflation target of 4%. The CPI index increased by 5.4% in 2011. Wen set 14% growth target for M2, China's broadest measure of money supply.

LyrArc Article Gist
Sony's Xperia Z smartphone as a competitor to Samsung Galaxy and Apple iPhone in 2013. Sony is now in third place in global smartphone sales with a 5% market share. Sony CEO Hirai says the basic building blocks are in place for Sony to secure the strong position in smartphone sales that its technology and assets deserve.

LyrArc Article Gist
The nuclear deal reached in the 2013 Geneva negotiations between Iran and the EU, U.S., Russia, France, Germany, UK and China, a diplomatic bloc named the P5+1. Iran gets sanctions relief that would bring in an additional $6-7 billion dollars. In return Iran agrees to increased International Atomic Energy Agency inspections of the heavy water reactor in Arak, to not start the facility or lead it with nuclear fuel. Earlier France had pushed for a complete dismantling of that reactor. Iran will cap its uranium enrichment to levels needed only for fuel in a reactor, of 3.5%-5%, and maintain its total low enriched nuclear fuel at the current level of about 6 tons for the six month period in which further negotiations will take place. As the EU representative put it, this provides the time and space to reach a serious deal. It does not ship out and destroy the estimated 19,000 centrifuge machines in Iran to produce nuclear fuel. A sticking point was Iran's insistence that it has a right to develop and use nuclear energy for peaceful purposes, which Iran says is part of the UN Nuclear Nonproliferation Treaty....

LyrArc Article Gist
After years of decline in Germany's rail system Deutsche Bahn this infrastructure suffering from old technology, broken bridges, lack of drivers, and train delays for 1 in 4 trains, is now up for revitalization. In 2017 about 2 million passengers claimed compensation for delays and were given average of 19 euros. 

ICE 4 is the new generation of high speed trains holding 830 people and 350 metres long. speed is 250 kilometres an hour and costs 22% less for energy.

LyrArc Article Gist
The passage of another round of austerity cuts through the Greek parliament by prime minister Papandreou leaves him with little political capital. Greece's debt is expected to get worse as the austerity cuts worsen the economic situation. This round of austerity cuts with no realistic restructuring of Greek debt is basically kicking the can down the road by governments in the EU say some economists. The implementation of the cuts will be a major challenge for Papandreou's government, which won the election on the basis of a social welfare program. Some analysts do not expect his government to last for the rest of 2011.

LyrArc Article Gist
Peter Baker describes Hillary Clinton's memoir "Hard Choices," about her days at the State Department as covering an enormous amount of ground about different countries but failing to bring the reader close to the events and how they happened. Clinton has written a politically safe memoir, says Baker, with an eye on the presidential election of 2016. There is little detail on her relationship with her rival for the Democratic nomination in 2008, U.S. president Obama. And on Clinton's struggles and hard times when faced with difficult issues the reader gets no more than a passing glimpse without inner details of the events. When compared to predecessor Dean Acheson's memoirs of his days at the State Department under Truman, this memoir looks rather tame, even in comparison with Defense Secretary Gates's recent memoir.

LyrArc Article Gist
A report released by the Organization for Economic Cooperation and Development (OECD) shows growing income inequality in 34 OECD countries. OECD Secretary General, Angel Gurria says: "The social contract is starting to unravel in many countries. This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that the greater inequality fosters greater social mobility. Without a comprehensive strategy for inclusive growth, income inequality will continue to rise." Countries with the largest ratios between incomes at the top and the bottom, are the United States, Turkey and Israel, roughly 14 to 1. Germany, Denmark and Sweden have ratios of 6 to 1, with their ratios up from the 1980's. Gaps in Chile and Mexico are at 25 to 1. The study covers the period from 1980 to 2008. Overall inequality went up by 25% in the U.S. from 1980. In 2008 the top ten percent in the U.S. earned $114,000, 15 times than incomes for the bottom 10%. The top 1% of Americans saw incomes go up from 1980 to 2008, increasing from 8 percent to 18 percent. The richest 1% having $1.3 million in after tax income, and the lowest 20% making $17,700. The trends have accentuated an increase at the highest end- the top 1% and top 10% of the people- and a sharp decrease for the bottom 20%, which can be grasped from the $17,700 and the $1.3 million, both at extreme ends. The study attributes the rise in inequality to a growing gap in wages for highly skilled workers as technology advances, a surge in foreign direct investment and a looser regulatory regime that reduces employee protections leading to wage premiums for financial jobs and smaller incomes for workers at the bottom. Income groups and professions and sectors that had the greatest influence in government were able during this period to get the greatest protection for incomes, and able also to maximize their incomes. Incomes in the financial sector increased dramatically in the last decade, as a result of deregulation leading to higher risk and speculative activities in the financial sector, leading to the financial crisis of 2008-2009. Financial crises further depress incomes at the lower end. Similiar income inequality trends can be seen for India and China. China has a Ginni coefficient of 0.5 according to researchers at Beijing Normal University, up from 0.3 three decades ago- a Ginni Coefficient above 0.4 is considered destabilizing. Another factor that played a part in these countries is corruption and lobbying by special interests for favored treatment of sectors or groups. Austerity measures taken in Europe and in the U.S. are likely to widen income gaps by depressing the lower end income groups, creating social unrest, especially in the absence of efforts to stimulate growth....

LyrArc Article Gist
This WSJ editorial says the U.S. Federal Reserve needs a chairman who is politically independent, especially since the Fed has not been politically independent since 2008. It calls Ben Bernanke a political sidekick of Timothy Geithner at Treasury since 2008. A Summers Fed would have become too much influenced by the White House, which would not serve the country well, as new policies will be needed to wind down the loose monetary and fiscal policies, says the editorial.

LyrArc Article Gist
The Mendenhall glacier flood that runs into a river and lake in Juneau, capital of Alaska, with risk of flooding for third straight year. This glacier is part of the Juneau Icefield that is melting twice as fast now compared to 2010 due to climate change.

LyrArc Article Gist
Bad loans in Spain's banking system reached a high of 8.16% of total loans by banks in Feb. 2012, according to the Bank of Spain. The total amount of bad loans was 144 billion euros.

LyrArc Article Gist
Grady Cash is an active runner at age 71. A sports hernia sidelined him at age 50 but he has found his way back into running. After a 2 year hiatus he returned to the track. He entered his first national track and field competition in 2004, and by 2015 eleven years later he was running in the 200 metres at the 2015 USATF Masters Indoor Track and Field Championships. Here he cam in last and had a revelation. Most of the runners were shaped differently than the long distance 1500 metres runners. These people were V shaped with tiny waists, broad shoulders and big leg muscles. From this he learned to do weightlifting at a local gym in Nashville and hired a trainer. After his retirement from financial planning he set up his own routine. He runs with a group at the Vanderbilt University track two afternoons a week ages from mid 20's to 76. A typical workout is eight repetitions of 200 metres that are sequentially faster. He does easy recovery runs on the trails. Mot important he tries to remain injury fee in the kind of routine he selects and listens to his body all the time not to overwork it and run  injury free the next day.  ...

LyrArc Article Gist
South Africa suffers from power shortages reducing output at metals and engineering firms. The electricity supplier Eskom has a large $20 billion funding gap and has cash shortages. About $230 million is owed by South African cities which collect payments. IMF estimates are for slower growth with a ceiling of 2.5% with the dire power situation. Growth in 2014 is estimated at a mere 1.4%. The government of president Zuma is not seen by experts as effective in tackling the economy and problems at Eskom. Moody's has cut Eskom's debt to junk status making it difficult to attract financing. Foreign investment is declining.

LyrArc Article Gist
British prime minister Starmer has introduced new legislation to "smash the gangs" that have people smuggling networks and made 150,000 illegal small boat crossings into the UK since 2018. Small boat crossings have started in 2025 with more people packed into small dinghies and 1098 making the crossing in January 2025.

The bill includes counterterorism powers to Border Force, police, National Crime Agency to target gangs. 

Migrants at sea in the Channel who refuse rescue by the French will face five years in prison as part of a new set of offences inthe bill- The Border Security, Asylum and Immigration Bill.

LyrArc Article Gist
As the price of oil hits $40 a barrel, and with the lack of investor confidence in China's economic policies in relation to the stock market and currency devaluation, global stock markets decline sharply in August 2015.

LyrArc Article Gist
The impact of the global financial downturn of 2011 on business in India's IT sector. With 80% of the sales of India's tech companies coming from markets in Europe and the U.S. firms such as Infosys are taking a cautious approach.