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The WSJ discloses that the U.S. Federal Trade Commission's Bureau of Competition 160 page report in 2012 described Google's anti-compettitive practices and recommended a anit-trust lawsuit for three anti-competitive practices. The WSJ obtained documents based on the Freedom of Information Act. Mullins and Winkler provide a detailed account of the practices cited in the report as anti-competitive. The FTC Commissioners did not act on the report and instead voted unanimously in 2013 to end the investigation after Google agreed to some voluntary changes. The report stated a different conclusion: Google's "conduct has resulted-and will result- in real harm to consumers and to innovation in the online search and advertising markets." Mullins and Winkler point out that this report shows Google's statement that no wrongdoing was found is incorrect.

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A very relevant comment about the media coverage on Putin's negotiations in Beijing for supplying natural gas to China, by a reader of the WSJ, Frank Peel. He points out China and Russia do not share the same goals and Putin talked about the Chinese as tough negotiators after signing the deal. The price as a "commercial secret" is because its years, could be 5, before gas actually flows to China from Siberian fields. Russia, is a smaller oil based economy- having failed to make the transition to a diversified economy- and very susceptible to the economic conditions in Europe and the U.S., as the 2008 crisis showed with very steep drops in output. President Obama has also pointed to this. Russia also shares with Argentina the tendency for elites- in the case of Russia a newly created oligarchy of business interests under Putin and his predecessor- to shift capital out of the country, making it even more susceptible to loss of value of the currency, the ruble. Devaluation of the ruble experienced under Yeltsin was severely traumatic for Russia, and the head of Russia's central bank went on state television recently to reassure ordinary Russians that this would not happen. The rainy day sovereign fund of over $400 billion acts as a cushion for shocks in short periods, but sustained loss of foreign investment would damage prospects for future improvements in standards of living or economic growth....

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This WSJ editorial says president Obama's inaction, including the smaller step of not putting in place a safe zone in Syria, comes at a price for Liberals. The recent action by Governors in Michigan and other states turning down Syrian refugees, it says is one of the moral consequences of Obama's policies. For Liberals it says a policy of inaction and turning America's back to the needs of ordinary Syrians during the Arab Spring is not neutral, it also has consequences. The consequences for Liberals is the steady stream of refugees to Europe, and the greater intolerance in western societies as the safe havens created by these policies in the Middle East lead to terrorist actions in Europe or the U.S. In short doing little or nothing carries risks for the kind of society liberals want to see. Through developing policy in response to the Bush Administration's policies the Obama administration makes a series of errors of its own that compromise liberal values, including the collapse of the Arab Spring without American and western support, and the creation of a huge refugee crisis in Syria, Iraq, with a spillover to Jordan and Turkey, and further spillover to Europe. Liberals in Europe also face a similiar situation, including Liberals in France....

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Of the nine positions on China's Politburo Standing Committee, which effectively runs the country, only Xi Jinping and Li Keqiang will remain as China moves to a transition in leadership. There is considerable uncertainty about the direction in which Xi Jinping and Li Keqiang will take the country- whether continuing the status quo or making efforts to introduce democratic processes in the country and shift away from the export model for the economy.

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Porter cites research by Andrew Berg and Jonathan Ostry of the IMF, which shows the strong connections between having a vibrant middle class, lower inequality and the sustainability of economic growth. In countries with higher inequality growth comes in spurts which fizzle out, and there are sharp contractions. Having good income distribution is important according to Berg and Ostry, if the process of economic growth is to be sustained. This logic is also supported by the need for a strong middle class for consumer spending, to provide the demand that supports growth.

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Columbia University Professor and Nobel Prize winner, Edmund Phelps, gives suggestions for reviving the economy. He sees structural problems in the economy and recommends more inclusion. Higher employment, he says, will require a higher level of investment activity, higher business investment and new technology and products. Inclusion will require more attention to jobs gained at all levels. He suggests a program similiar to Singapore's, with a program of tax credits for companies employing low-wage workers.

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Syriza party's young leader Alexis Tsipras retains popularity even as Greece accepts the third bailout program from the EU with conditions for pension reform and tax changes. He now says some of the pension reforms were necessary even in the absence of the bailout conditions, saying it is not normal for someone to retire at age 45 or 50. He also says that he is fighting tax evasion so that the rich pay their share of taxes. The mainstream parties have lost confidence because the programs did not ensure a equitable sharing of tax and other measures, and more of the burden falling on the poor. In contrast to Portugal where the tax burden is shared more equitably, more of the burden in Greece has fallen on the poor and less affluent.

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U.S. Federal Reserve chairman Bernanke, says the Fed will keep interest rates low till unemployment reaches 6.5%, as long as inflation remains at about 2%. If unemployment reaches 6.5%, and this is because more people are dropping out of the labor market, he will take this into account. If unemployment stays high the Fed indicated in its statement that it would tolerate a higher inflation of 2.5%, as long as the longer term outlook was for inflation to be at 2%. Bernanke said this doesn't mean monetary policy is on autopilot, because the Fed will watch conditions carefully and will leave room for flexibility- keeping an eye out for new asset bubbles that could develop, and monitoring labor market conditions and inflationary pressures and inflation expectations. If inflation falls well below 2%, or unemployment rate falls mainly because of people dropping out of the labor market, the Fed may continue to keep interest rates low. This policy was announced as U.S. fiscal cliff deficit negotiations continued in Dec. 2012 with one scenario being considered by both political parties being going over the Jan. 1 deadline before coming to an agreement. Bernanke pointed to this, saying "this is a major risk factor right now." The Fed's activist policy in economic policy has given financial markets and business a measure of stability not provided by government and Congress. Fed policy is to buy $40 billion of mortgage securities, and $45 billion of long term Treasury securities for each month in 2013. It will fund the purchases by adding reserves to the banking system, which is to say that it will print money to buy more bonds. This is a major decision by the Fed in that the Fed has shied away from unemployment targets in the past. Bernanke described this action as a new"automatic stabilizer" in the U.S. financial system- if unemployment rises investors know this pushes the Fed's interest rate increases further down the road and would drive interest rates down, if unemployment drops sooner than expected, investors anticipating Fed's rate increases would drive long term interest rates up, to keep stable growth....

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IMF forecasts for Greece's growth rate are proving too optimistic. The IMF forecast is for zero growth in 2013, and increases of 2.3% and 2.9% in 2014 and 2015. Even in its pessimistic projections the IMF forecasts a 1% downturn in 2013 and growth of 1.3% and 1.9% in 2014 and 2015. The government sector was a large part of the economy. Now that this is shrinking, the export sector which only represents 20% of GDP is too small to generate needed growth. Greece also lacks the competitiveness and the large foreign enterprises that operate in Ireland, making growth less likely. A major problem is also the 40 billion euros Greeks have withdrawn from their banks in recent years. Even the figure of 120% of GDP that is expected in 2020 under the March 2012, 130 billion euro bailout is a very hypothetical figure, having no sound basis. Landon Thomas cites a confidential study the IMF had circulated in February 2012, showing the long term prospect for Greek debt if growth does not materialize because of lack of competitiveness. It would increase the debt to GDP ratio to 178% by 2015, and leave it at the current level of 160% of GDP in 2020. Some experts say the whole debt sustainability analysis makes no sense, with the question being insolvency in the case of Greece, not illiquidity. And requiring a focus to bring debt to manageable level to create prospects for growth. The Wall Street Journal emphasizes this in its editorial on Feb. 29, 2012....

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Michael Phillips of the WSJ provides a profile of typical Donald Trump supporters, a couple Joey and Tina Elias, driving from Alabama to Pensacola, Florida to attend a Trump rally. Joey, 46 years old, lost his job in 2010, and has since worked at jobs a little above the minimum wage. Tina, 44 years old, is assistant director of a daycare center. They have worked hard to build a house on a 3 acre plot of land, after living for several years in a mobile home. They have 2 children, and Joey says he has to worry about job security before making any purchases. They are against free trade, as its not seen as favoring working Americans. They favor a strong military, because they see president Obama as defunding the military and weakening America overseas. They say they are not racially motivated, believe in God, but not church going. They don't feel strongly about social cultural issues, believing in live and let live. They say they like Trump not because he is saying anything new, only because he has voiced their concerns, they have felt this way for a long time. They want to see America winning- and to win as the country wins. What is striking is that the couple face some of the same job insecurity, and the paycheck to paycheck job insecurity and fear of losing what they have with job loss, that is being felt by average working Americans after the 2009 economic crisis. On the Democratic side Bernie Sanders is gaining support from white working class people who share the same anxieties about economic insecurity following the 2009 economic crisis....

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Ian Thompson takes over as the new Chief Credit Officer at S&P. He replaces Mark Adelson, who will remain as a senior fellow at S&P. He was hired by the previous CEO, Deven Sharma. Deven Sarma was replaced by former Citigroup excutive, Doug Peterson, in September 2011, weeks after the downgrading of the U.S. sovereign credit rating. Ian Thompson reported to Mr. Adelson, as the head of the Asia-Pacific region. Adelson joined in 2008 with the task of making it difficult to earn the highest credit rating for issuers following the subprime mortgage crisis, in which credit rating firms gave top ratings to lower quality mortgage securities. Mr. Jacob, the structured finance chief, will also be leaving S&P. The frequent management changes are viewed as making it harder for S&P to win back credibility in its ratings.

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Zampano and Emsden describe the difficulties new premier Matteo Renzi will have with a divided parliament and opposition in parliament from the parties of Berlusconi and Grillo. A poll by IXE shows 53% of Italians support Mr. Renzi compared to 37% for former premier Letta. He is expected to focus on economic measures and institutional reforms are likely to slow down because of the political situation with no party having a clear mandate. European elections in May 2014 will be a first test for Renzi and the Democratic party.

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This interview with Donald Trump by the publisher, editors and columnists of The Washington Post, Ryan Jr., Hiatt, Lane, Marcus, Diehl, Armai, Attiah, provides an exceptional insight into the views of Donald Trump on domestic and foreign policy, on his campaign for president. It is the result of an effort to get Trump to state his policies on different issues without the fuzziness in which Trump has carried out his campaign, often taking different sides of the same issue. In some situations Trump is pressed hard on his positions or controversial statements, to clarify what he has not clarified in the burst of media attention Trump received in the past 6 months, especially on television media. First some myths and realities. A recent March 19, 2016, issue of the Economist cites the Pew Trust in showing that only about 17% of eligible Republican voters voted in the primaries. A person watching television news media coverage on Fox News, CNN, or MSNBC, would get the impression that the voter turnout was tremendous- this is not confirmed by the Pew Trust survey. The Economist points out that had the other eligible voters cast their ballots and even if Trump had a share of these votes, the results might look different. With a highly fragmented vote in the Republican primaries, and about half of the vote going to candidates other than Trump, Trump's voter support would add up to about 8-9% of eligible Republican voters based on the Pew Survey results. The question here would be is this a representative sample of the U.S. or of the Republican Party. And is one likely to make false generalizations about the nature of the Republican party from such a limited sample of voter opinion. Is voter sentiment inadequately reflected, and results hopelessly skewed because of the lack of good candidates in the Republican Party, and Trump's tactical rhetoric appealing to a group of working class Americans left out in the technological progress of the last decade. In the process is the hard work of the founders of the Republic, Washington, Adams, Jefferson, Madison and the framers of the Constitution being undone by a minority of disaffected voters with legitimate grievances on distribution of economic benefits of the technological progress, trade and global manufacturing networks- with a level of divisive rhetoric and decline in levels of public debate rarely seen. These are the clarifications sought from Trump and his response. Attiah raises the question of divisive rhetoric on minorities Hispanics and Black people- Trump says he is only talking about people here illegally, that he gets support from Hispanics here legally. He turns the question to Muslims and says there is a serious problem there that means being careful about how people are being admitted into the U.S. Questions about Trump's controversial statements about a wall with Mexico are not raised. Ryan pushes hard on the question of the libel laws standard that Trump says he is going to change, asking whether this would happen if Trump thinks the reporting "is wrong" but there is no malice. Trump wants the reporting to be fair for him, that reporters call him to check if he did this or that and why, before writing stuff about him, and he sees the reporting from the Post as very bad about him. He says his lawyers would have to tell the media, that he believes he should loosen up the standards so that this kind of coverage does not continue. On ISIS Trump pulls back when asked by Diehl about statements that suggested he would send the number of troops the generals wanted on the ground- estimated at 20,000 to 30,000- saying he would find it very, very, difficult to do that. On a nuclear option for ISIS Trump says he does not favor that. Suggesting that Trump like the other candidates in the election know there are no easy ways to tackle ISIS. Trump would rely on other countries in the region for help with troops on the ground, something that president Obama also favors, with limited results. Diehl also pushes hard on NATO- Trump says hundreds of billions of dollars are going to NATO and the whole burden for defending South Korea falls on the U.S. when it is not now a rich country that it once was. Diehl corrects him by saying for the public record that its not hundreds of billions, and South Korea, Japan pay 50% of the cost for defending their region. Trump wants to see 100% for the Korean peninsula defense borne by the South Koreans and Japan. Trump seees NATO as a good concept but needing more help from Germany, Poland, Baltics. At one point the Washington Post journalists tell Trump this is a position he shares with president Obama. Trump responds to questions from Hiatt about how he would handle the situations in black communities such as Ferguson, Missouri, and Baltimore, Maryland. Trump says he feels law enforcement is important and should play a big role in preventing the destruction of property from day one. He says jobs are what hurts inner cities but offers no solution about how to get the jobs lost in the steel industry for Baltimore, black neighborhoods sitting ironically next to the John Hopkins high technology university complex. Trump brings up the response that jobs could be created if the U.S. simply did not spend money on supporting nationbuilding overseas, a policy that president Obama has supported, and which the public has favored in the U.S. As Holman Jenkins brings up in a column on March 22, 2016 in the Wall Street Journal, these policies are being pursued today, and most of these jobs are not coming back so how would Trump bring them back or do anything about it, especially when Chinese workers in China's factories are being displaced by robotics in places such as Hon Hai factories. The more one thinks about it many of things Trump is saying are already being done, and there are no new solutions Mr. Trump has for today's problems of lack of upward mobility for the middle and working class- a priority for Sanders and Clinton also, not just for Trump. As a television personality and a candidate with a understanding of voter concerns, Trump artfully voices voter concerns of working class Americans for problems that defy easy solutions. Are there risks with Trump's approach that Trump has failed to think through or grasp? Does the unpredictable behaviour Trump suggests that would get allies thinking and trade partners responding lead to unpredictable consequences? Divisive rhetoric creates additional distractions in tackling the problems of the middle class and working class Americans. Divisive rhetoric within the NATO alliance would create additional distractions in tackling the problems of defending the European Union, such as using the very show of unpredictability. Diehl pushes Trump on this question. Would trade threats to China lead to a withdrawal from the Senkaku Islands by China? Trump says he thinks this would cause the Chinese to retreat . What if the Chinese see it differently, in their relations with Japan and South Korea, with a long difficult history, not necessarily in their relations with the U.S. Would a trade war hurt the global economy, and hurt confidence in U.S. fianncial markets just when the U.S. and European economies are staging a recovery, and when the economes of China, Japan and India are in a sensitive phase? These questions could not be raised because of time constraints, but must be on the minds of the editors of the Post and the WSJ, coming from different ends of the political spectrum. How would this help tackle the problem of upward mobility for working class Americans that all the candidates in the presidential election share? ...

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Germany's deputy finance minister, Jorg Asmussen, was nominated by the German government to the executive board of the ECB. This follows the resignation of Jurgen Stark. Asmussen was originally appointed by the previous finance minister, Peer Steinbruck, and is from the SPD party. He was retained by Finance Minister Schaeuble because he had experience with the global financial crisis of 2008. Both Asmussen and the new Bundesbank president, Jens Weidmann, are students of Axel Weber, who was a professor before becoming central banker.

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Tata Motors gets a great deal to have 2 wellknown brands in which Ford has invested some $10 billion for a billion adn half. Is favored to make the deal. Both brands may be turning the corner after years of effort and Tata's management resources and investment potential could make this a good deal for Tata Motors. But there are some risks including the ones mentioned. The US market which accounts for more than 25% of sales is declining, and the fuel saving technologies needed to compete in Europe after 2012 with new mandated emissions reductions mean that Tata will have to develop these technologies in a market where the Germans have significant advantages with their fuel saving technology development. The Halewood factory in Liverpool where the Land Rover Freelander and the Jaguar X-type are made is at risk because with total output of 261,000 Tata may decide to close one of the three factories. This acquisition will push Tata up the learning curve in American and European markets, knowledge which it can use in developing markets for new models it develops in the future with innovation and aggressive pricing....