United States

President Donald Trump’s executive order to ban citizens of seven Muslim-majority states from entering the US for 90 days, and temporarily freeze all refugee arrivals (including Syrians indefinitely), has been interpreted widely as an attempt to curtail the inward migration of Muslims, which Trump and his supporters argue pose a threat to national security. It has also been challenged legally, and today a showdown between the DOJ and a San Francisco Court of Appeals is scheduled for 6pm, at which point the Trump order may be formally rejected, forcing Trump to engage the Supreme Court.

At noon on Tuesday, the Senate is expected to vote whether to confirm Trump's controversial nominee for education secretary, billionaire Betsy DeVos, following an unusually fiery debate including an all-night Senate session, that has left her at risk of becoming the first cabinet nominee in 28 years to be rejected. Although Senate Republicans and the White House have said they are confident they have the votes to confirm Mrs.

Trump's ongoing spat with Iran escalated on Tuesday, when Iran's Supreme Leader, Ayatollah Ali Khamenei dismissed the US president's warning to Iran to stop its missile tests, saying the new U.S. president had shown the "real face" of American corruption. "We are thankful to (Trump) for making our life easy as he showed the real face of America," Khamenei said according to his website. He made the remarks in an address to the commanders of the Army Air Force on the verge of the Islamic Revolution’s victory anniversary which falls on February 10 this year.

• Senate to Vote on DeVos Confirmation Amid Fiery Debate (WSJ)
• Investors Cut Back on Commercial Property (WSJ)
• Euro, European bonds unnerved by French politics (Reuters)
• Trump’s Dodd-Frank Do-Over Diverted to Slow Lane (BBG)
• In GOP, Divide Grows Over Pace of Obamacare Repeal (WSJ)
• Syria Detains Opponents as It Reasserts Control (WSJ)
• Gaga’s Halftime Drone Swarm Was Pretaped (BBG)
• Tom Brady’s Missing Super Bowl Jersey Could Be Worth $500,000 (BBG)
• The New Face of American Unemployment (BBG)

Paul Singer, founder and President of Elliot Management Corporation is known for being a skeptic of traditional market pundits. In his fourth quarter letter, he made several different predictions about the market. He acknowledged the highly unpredictable environment that we have highlighted before in our articles about Trump and the markets. The letter also contains a specific warning about the worsening situation in China.