Politics suddenly shouted last week to make its presence felt in a world obsessed with mundane money matters. Nobel Peace Prize for Obama evoked disbelief, derision and delight in about equal measure but curiosity was curiously missing; who is trying to nudge Obama in what direction, and whether the award is likely to deliver the agenda are questions not being even asked.

While the US is struggling to come up with a medicare plan acceptable to the majority, and is even contemplating taxes on expensive (Cadillac) medicare plans bought by the rich, reports of medicare fraud having become more profitable than drugs smuggling have come in. After having successfully sent the world scurrying for swine flu vaccines and antibodies, the pharma industry is now offering a vaccine that could help cocaine addicts.

Realising the enormity of ageing of its population, Japan is considering payments of $300 a month for 15 years to parents of newly borns, in addition to a lump sum payment of $6,000 on birth, day care subsidies and waiver of tuition fees. In all, a stimulus package of about $71 bn a year. This, despite the country having one of the lowest percentage of working mothers in the developed world.

Excessive volatility has made it difficult for those who trade in real goods and services to carry on their businesses, one example being the US cotton trade, where four traders (Dreyfus, Olam, Noble and Cargill) now control over one half of trade because too many have folded up.

US tax revenue declined 25% in the year that ended 30 Sep and in Euro terms, its per capita income is down 25%, compared to the year 2000. Trade deficits of a large number of developing countries are declining because they are importing less. Hit by recession, Italy has come up with its third tax amnesty scheme in the current century, expecting repatriation of over $120 bn of slush funds held abroad by its businessmen. Protesting against low milk prices that might cost EU dairy industry Euro 14 bn in 2009, farmers blockaded streets of Brussels with tractors and cattle last week, when some poured milks on police personnel.

However, China and Japan continue to record surplus in their external trade and now even Hong Kong has forex reserves almost equal to India which is, of course, in addition to China’s massive hoard of over two trillion.

Globalization continues to change plans and perceptions in amazing ways. While China appears to have reconciled itself to the length of the road to making its currency globally acceptable, Japan is talking of an Asian version of the EU. Elsewhere, after the US could no longer ignore its environmental responsibilities, its companies are talking of fulfilling their obligations by preventing deforestation in far away Africa, which they think will be a cheaper option! South Africa is offering its farmers land in Congo, Zambia and Sudan.

Newspaper advertising plunged 29% in Q2 and even Internet advertising in the US dipped 5% to $10.9 bn. Google ad sales were, however, up 4% in H1. YouTube, which it bought in 2006 for $1.65 bn, now has a billion hits a day. Apple has silently bought a small mapping firm because it doesn’t want to keep using Google maps. Dell is closing its plant in N.C. and the state is asking what about the incentives given barely a few years ago?

Julius Baer is buying ING’s Swiss private banking business for $500 mn, Banco Santander (Spain) has raised $8 bn from an IPO by its Brazilian subsidiary, and EFG of Switzerland is expanding Asia-Pacific operations because only a tenth of the region’s millionaires are clients of private banks. LBBW, a German firm, has emerged as the best currency strategist, beating the world’s largest currency trader Deutsche Bank.

Anheuser-Busch (Belgian brewer) is selling its theme parks business to Blackstone for $2.7 bn. PepsiCo soft drinks sales in the Americas dipped 6% but grew 9% globally in Q2, though snacks sales grew all over. Wal-Mart has started converting Tamiflu capsules into liquid form so kids and the elderly can take it easy. Kimberly-Clark of Kleenex and Huggies fame has bought the drugs business of I-Flow.

While the auto industry is suffering the consequences of quick decisions and quicker changes in models and designs, GM is trying to change its corporate culture to ensure even quicker decisions and enforce accountability at the same time. GM says it has sold its Hummer division to Tengzhong of China while the Chinese govt says no application for approval has been received. Ford’s dilemma about Volvo, perhaps the best bus-maker of the world, remains unresolved, though Geely of China and a US consortium have shown interest.

Oil and gas firm ConocoPhillips says it would sell assets worth $10 bn over the next two years and shall cut capital spending to pare debt, Monsanto continues to face falling sales of seeds and agri-chemicals, and DuPont is gaining market share in corn seeds, of course genetically modified. Alcoa has cut 19,000 jobs since June of 2008 and has cut costs by nearly $2 bn.

Versace has closed all its stores in Japan, Brigitte, Hamburg fashion magazine, has decided to replace professional models with its own staff members, luxury retailers Saks and Neiman Marcus continue to lose money, and profits of Levi Strauss plunged 41% in Q3, though sales in China and India are doing well. In India it is selling jeans on 3 EMIs!

Merrill Lynch says oil will rise above $100 next year and Italy’s Silvio Berlusconi says he is the best prime minister ever, the reason why he has had to spend $300 mn in legal fees since entering politics and that doesn’t include the cost of the divorce settlement he will have to make in the near future. What should ordinary folks do? Buy a “Primo Puel” for a companion, like a million Japanese have, and experience the man-made doll respond to sight and sound.

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