A BBC News article reports that Volkswagon (VOW:XETRA) is backing away from merger talks with Porsche (PAH3:XETRA). I first told you about this merger, which would consolidate company operations, back on May 8, here on the Emerging Markets Blog. The BBC reports that VW is suspending talks with Porsche saying that, “constructive negotiations were not possible at the moment.” Porsche has a significant amount of debt, and VW wants the luxury car company to reduce that debt. Ironically, Porsche took on about $12.2 billion in debt so that it could increase its stake in VW… The history between these two companies is long and complicated, and while VW says its backing away from the table, the two own stakes in each other and were founded by the same family. Porsche says the talks are still ongoing.

The news made my jaw drop a bit: “Toyota Motor Corp. lost 765.8 billion yen ($7.74 billion) in its fiscal fourth quarter, leading the world’s largest auto maker by car sales to its first full-year loss in 59 years and setting the stage for even worse results in the current fiscal year.” (from the Wall Street Journal) The first full-year loss in 59 years! That’s astounding… It seems like the auto industry doesn’t quite know which end is up… General Motors (GM:NYSE) just posted a $6 billion loss in its first quarter, but is seeing some interest in the potential sale of its Opel division from some European buyers - including Fiat SpA (F:Milan), who has already entered a deal with Chrysler, and has said it would be interested in GM’s Latin America, Russia and China operations. Porsche (PAH3:XETRA) and Volkwagon (VOW:XETRA) are going to merge… Russia’s OAO GAZ Group (GAZA:Russia) is selling its LDV brand (a U.K. van maker) to Malaysian-based Weststar - and also showed interest in GM’s Opel division. And Ford (F:NYSE) wants to convert one of its SUV manufacturing plants to an electric vehicle production line. It’s like a giant game of 52-card pick up, where the cards raining down magically turn into cash… GM gets leaner, losses debt and gains potential government investments… European car makers find synergy and savings in merged operations… And everyone goes home happy, right? Only when people start buying cars again.

I’ve been writing about Central and Eastern Europe a little bit recently for Taipan Insider, and I decided to take a trip down memory lane.

As you know, on my trips, I take a lot of pictures. Sometimes it’s hard to share them all with you, so we’ve created a Flickr account to post them all… Well, most of them, anyway. I’ve still got some photos from my trip to Vietnam and Singapore, and from Spain and Morocco to post, but you can find my Eastern Europe trip and my South America trip already posted.

I’ll also be taking the video camera and digital camera to South Africa, which is my next trip early next month. Like trip South America trip I’ll be compiling an in-depth investment video for you, but don’t forget to check out any photos on the Flickr site.

And feel free to send along any comments or questions! Use the form on the blog, or email me at insider@taipanpublishinggroup.com.

I’m sitting in our Baltimore office on the fourth floor of a beautiful historic building. The blinds are up, and I’m watching flurries float down in the grey of winter.

A lovely scene that I’m sure I’d appreciate much more if I wasn’t so darn cold…

I arrived at work this morning to a near-empty building, a single coworker hanging around to tell folks that the heat is broken, and that most of our publishing crew has headed down to the local coffee shop, Donna’s, to get warm.

I’ve spent my morning shivering over a quickly cooling cup of coffee as a pounded out my article for Taipan Insider for tomorrow.

I figured I’d wait it out. They said they were fixing the heat, but that was about two and a half hours ago, and now my fingers feel like they’ve been making snowballs for, well, for about two and a half hours.

This must be what it feels like in Eastern Europe right about now. Gas from Russia is still not flowing right, after 19 days. There’s a deal on the table that all parties are expected to sign, if their cold hands can grip a pen.

Right now, it’s 37 degrees in Prague, with a chance of snow tonight. It’s 30 here in Baltimore, and as I’ve said, we’ve already got the flurries…

Stay warm, folks.