United States

We start our Sunday with some gloomy predictions from Morgan Stanley's appreciately named "Sunday Start" periodical, in which the bank's Chief Global cross-asset strategist, Andrew Sheets, explains why the market return under the Obama administration will be a tough act to follow. His argument in a nutshell: "good market environments often involve a shift from economic despair to optimism, and a shift in psychology from ‘fear’ to ‘greed’. Both occurred over the last eight years, producing returns well above the long-run average.

Following Rex Tillerson’s “astonishing” and “unprofessional” comments made during his confirmation hearing, Chinese state media has predicted a “large scale war” in the South China Sea if US tries stopping China accessing its man-made islands. The former ExxonMobil CEO likened China’s island-building in the South China Sea to “Russia’s taking of Crimea” during his Senate confirmation hearing on Wednesday.

Submitted by Chris Martenson via PeakProsperity.com,

Fair warning, my family just received a 61.5% increase in our healthcare insurance premium of 2017, on top of last year’s 24.8% increase, so I am quite annoyed at the moment.  For my non-US readers, perhaps what follows will interest you as a means of understanding how and why Donald Trump came to be elected President.  I am going to be channeling some of my inner crank today.

One of the reasons behind the first ever visit by a Chinese president to next week's Davos boondoggle is that, as reported last week, president Xi was open to a meeting with US president-elect Donald Trump’s team, if clearly not the president-elect himself, who will be far busier on January 20 - the day the World Economic Forum in Davos ends - getting inaugurated.

Jerusalem’s Grand Mufti Muhammad Hussein has voiced his objection to plans by president-elect Donald Trump to move the US embassy in Israel to Jerusalem. Trump during his campaign called for the US embassy to be moved from Tel Aviv to Jerusalem, “the eternal capital of the Jewish state.” During a sermon Friday at the al-Aksa mosque the Grand Mufti condemned Trump’s plans and said such a move would be an “assault” on all Muslims.