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Nato defence spending falls despite promises to reverse cuts

Europe's failure to pay its way in Nato is seriously worrying the US, which already provides 75% of all Nato defence expenditure (the US spends 3.8% of its GDP on defence).

Without any of its own maritime patrol aircraft, the UK recently had to request the help of Nato allies to search for suspected Russian submarines off the west coast of Scotland. In Germany there have been reports of serious malfunctions in military equipment.

Companies Quietly Apply Biofuel Tools to Household Products

A liquid laundry detergent made by Ecover, a Belgian company that makes “green” household products including the Method line, contains an oil produced by algae whose genetic code was altered using synthetic biology. The algae’s DNA sequence was changed in a lab, according to Tom Domen, the company’s manager for long-term innovation.

Unilever recently announced that it was using algae oil made by a company called Solazyme in Lux, a popular soap

You can think of Mr. Obama’s argument as falling into two categories (even if he didn’t say so): the reasons that overall economic growth may accelerate, and the reasons that middle- and low-income workers may benefit more from that growth than they have lately.

On the growth side of the ledger, both energy and education have been problems.

And the number of high-school and college graduates is rising. The financial crisis deserves some perverse credit, because it sent people fleeing back to school, much as the Great Depression did

How Putin Forged a Pipeline Deal That Derailed

The pipeline, known as South Stream, was Mr. Putin’s most important European project, a tool of economic and geopolitical power critical to twin goals: keeping Europe hooked on Russian gas, and further entrenching Russian influence in fragile former Soviet satellite states as part of a broader effort to undermine European unity.

The bill that Parliament took up on April 4 was arcane. But it swept aside a host of European regulations — rules that Mr. Putin did not want to abide by — for a pipeline that would deliver gas throughout southern Europe. Continue reading the main story Related Coverage In Diplomatic Defeat, Putin Diverts Pipeline to TurkeyDEC. 1, 2014

Why Do Americans Stink at Math?

The Americans might have invented the world’s best methods for teaching math to children, but it was difficult to find anyone actually using them.

In fact, efforts to introduce a better way of teaching math stretch back to the 1800s. The story is the same every time: a big, excited push, followed by mass confusion and then a return to conventional practices.

Italy Falls Back Into Recession, Raising Concern for Eurozone Economy

Some economists argue that the region is already well into a so-called lost decade.

Analysts surmised that the strained relations with Russia as well as turmoil in the Middle East had undercut demand for Italian exports, in particular fashion and other luxury goods.

Air France-KLM to Cut Investments by $680 Million

For several months, IBM has been seeking to sell its chip-manufacturing operations

The most likely buyer is GlobalFoundries, a large contract chip manufacturer, the person said, for a price of probably less than $2 billion.

Ms. Rometty stated that while IBM’s priorities were in fields like data analytics and cloud computing, and it had agreed to sell its industry-standard computer server business to Lenovo of China for $2.3 billion, she added: “But let me be clear — we are not exiting hardware.”

Europe, Facing Economic Pain, May Ease Climate Rules

On Wednesday, the European Union proposed an end to binding national targets for renewable energy production after 2020. Instead, it substituted an overall European goal that is likely to be much harder to enforce.

The cost of shipping a 40-foot container from Shanghai to the United States has risen to $8,000, compared with $3,000 early in the decade, according to a recent study of transportation costs. Big container ships, the pack mules of the 21st-century economy, have shaved their top speed by nearly 20 percent to save on fuel costs, substantially slowing shipping times.

Jeffrey E. Garten, the author of “World View: Global Strategies for the New Economy” and a former dean of the Yale School of Management, said that companies “cannot take a risk that the just-in-time system won’t function, because the whole global trading system is based on that notion.” As a result, he said, “they are going to have to have redundancies in the supply chain, like more warehousing and multiple sources of supply and even production.”

In a more regionalized trading world, economists say, China would probably end up buying more of the iron ore it needs from Australia and less from Brazil, and farming out an even greater proportion of its manufacturing work to places like Vietnam and Thailand.

Trucks here burn diesel fuel contaminated with more than 130 times the pollution-causing sulfur that the United States allows in most diesel.

Weidmann said the policies of austerity he supported would work slowly but staying the course was important. To him, a lost generation of young workers, who were denied skilled training and out of work for several years, is a matter for individual countries. He cannot see that sovereign states under the current arrangements are denied the funds to invest and improve productivity over the longer term. He cannot see that austerity, if only for this reason, is self-defeating.

Russia Presses Ahead With Plan for Gas Pipeline to Turkey

But in recent weeks, the Russian state-owned company Gazprom has shown signs that it is serious about proceeding with what it calls Turkish Stream.

Gazprom’s chief executive recently made it clear that Turkey is its new focus — and that if Europe wants more Russian gas then it will need to find its own way to tap into it.

In fact, creditors arguably are more responsible: typically, they are sophisticated financial institutions, whereas borrowers frequently are far less attuned to market vicissitudes and the risks associated with different contractual arrangements. Indeed, we know that US banks actually preyed on their borrowers, taking advantage of their lack of financial sophistication.

Every (advanced) country has realized that making capitalism work requires giving individuals a fresh start.

There is a fear that if Greece is allowed to restructure its debt, it will simply get itself into trouble again, as will others.

The euro is in greater peril today than at the height of the crisis

Two years ago forecasters were hoping for strong economic recovery. Now we know it did not happen, nor is it about to happen.

Today the eurozone has no mechanism to defend itself against a drawn-out depression. And, unlike two years ago, policy makers have no appetite to create such a mechanism.

Dubai, Once a Humble Refueling Stop, Is Crossroad to the Globe

Five years ago, the global credit crisis brought Dubai near bankruptcy. But the city has recovered its drive, helped partly by a $10 billion bailout from neighboring Abu Dhabi, and a return of investors from the Middle East and Eastern Europe

Dubai’s success has rattled its rivals, particularly airlines in Europe and the United States, which have complained that traffic was being siphoned from their hubs.

The gas flowing into Ukraine as of Monday was meant only to transit the country to Europe. “Gazprom supplies to Ukraine only the amount that has been paid for, and the amount that has been paid for is zero,” Gazprom’s spokesman, Sergei Kupriyanov, told reporters.

Gazprom, which has sought for the past decade to convince the Europeans that it is a reliable supplier and not an arm of Russian foreign policy, painted the dispute as strictly commercial.

Second, Gazprom has provoked economic ire in Europe over its plans to build an alternative gas route under the Black Sea for the company’s exclusive use, contradicting Europe’s open access laws. That has put the future of what is known as the South Stream pipeline in doubt.

As LED Industry Evolves, China Elbows Ahead

“LED lighting could see itself become the next solar, wind or other future opportunity that the U.S. will have given away by failing to address Chinese industrial policies and unfairly traded products,”

SolarWorld, a solar panel maker that complained to the American government about what it considered unfair advantages for Chinese competitors, was later the victim of a cyberattack by Chinese military officials, according to a recent indictment by the Justice Department.

A snapshot of Nigeria’s economy in 1990 gave little or no weight to fast-growing parts of the economy such as mobile telephony or the movie industry. At the time the state-owned telephone company had a few hundred thousand customers. Today the country has 120m mobile-phone subscriptions. On the old 1990 figures, the telecoms sector was less than 1% of GDP; it is now almost 9% of GDP. Motion pictures had not shown up at all in the old figures, but the industry’s size is now put at 1.4% of GDP.

The oil industry’s share of GDP is now put at just 14%, compared with 33% according to the old figures.

GUINEA: Winners and losers in Guinea’s bauxite industry

“Rather than making people richer, mining has made them poorer,” said Akoumba Diallo, a mining sector researcher. “It polluted their environments so they can’t grow crops or let animals feed near mining sites. And it is hard to get water anywhere because it’s contaminated.” With mining contributing to 85 percent of the country’s external revenue, and the World Bank estimating investments of up to US$20 billion in bauxite mining in Guinea over the next decade, the government is currently rewriting and renegotiating its mining contracts - unchanged for 25 years - with 15 companies to ensure Guineans are more likely to benefit from the wealth they spawn.

Mining companies are legally obliged to pay taxes to owners of the land they mine,