ISRAEL - Israeli Prime Minister Benjamin Netanyahu spoke with Russian President Vladimir Putin by phone Wednesday and reportedly told him that Israel won't allow Iran to become entrenched in Syria. Putin urged Netanyahu not to authorize further military action in Syria - but Netanyahu was adamant about Israel not permitting Iran to gain a foothold in the embattled state.

HUNGARY - Hungary will continue its anti-immigrant stance and will pursue a vision of the EU as a union of nations instead of the “United States of Europe,” PM Viktor Orban said after his party’s parliamentary elections victory. Orban believes the re-election triumph has given him a “strong mandate” to tackle the problems that concern Hungarians the most, he said on Tuesday. “The Hungarian people have defined the most important issues: these are the questions of immigration and national sovereignty,” the prime minister said. “It is entirely clear... from the election result that Hungarians have decided that only they can decide with whom they want to live in Hungary, and the government will stick to this position.”

UK - One of Britain’s top fund managers, who correctly predicted the recent share sell off, has said that it was only a taster, and that he is confident an “earthquake” will hit markets “within months”. Jonathan Ruffer, who oversees billions of pounds of savers’ cash and has a personal fortune of around £400 million, was last year revealed to be the mysterious buyer of $200 million worth of insurance to protect his portfolio from a rise in the volatility of American shares. When the US stock market began falling earlier this year, these contracts started to net Ruffer substantial gains, cancelling out losses from other investments.

USA - A new early warning satellite system reveals countries where shrinking reservoirs could lead to the taps completely drying up. Shrinking reservoirs in Morocco, India, Iraq and Spain could spark the next “day zero” water crisis, according to the developers of a satellite early warning system for the world’s 500,000 dams. Cape Town recently grabbed global headlines by launching a countdown to the day when taps would be cut off to millions of residents as a result of a three-year drought. Drastic conservation measures have forestalled that moment in South Africa, but dozens of other countries face similar risks from rising demand, mismanagement and climate change, say the World Resources Institute (WRI).

GERMANY - Over the last decade, German filmmakers have begun churning out lavishly produced movies and television series dealing with the dark side of Germany’s recent history. The latest, most expensive, and internationally most successful example is Babylon Berlin, a crime series set in the dying days of the Weimar Republic, now streaming on Netflix in Australia, Canada, and the United States.

USA - We are in the midst of watching the subprime auto lending bubble burst in its entirety. Smaller subprime auto lenders are starting to implode, and we all know what comes next: the larger companies go bust, inciting real capitulation ...smaller subprime lenders are starting to simply implode after being faced with losses and defaults. In addition to losses and defaults, Bloomberg reported this morning that there have been allegations of fraud and under reporting losses… The continued focus on borrowing and spending, instead of saving and underconsumption, will ensure not only that these bubbles continue to happen going forward, but they will get larger in size as time progresses.

RUSSIA - Russian Energy Minister Aleksandr Novak said the country is considering an option of payments for oil in national currencies, in particular with Turkey and Iran. According to him, both countries are interested but there is also a matter of conversion of currencies and their further use. “There is a common understanding that we need to move towards the use of national currencies in our settlements. There is a need for this, as well as the wish of the parties,” Novak said.

ISRAEL - Beyond the confrontation between Russia and the United States, the main story in the northern arena is the direct confrontation between Israel and Iran on Syrian soil. There is no more shadow war or contest through agents. The confrontation between Israel and Iran, it seems, is turning into a limited direct military confrontation. Israel has decided to remove the gloves. In the coming days, preparedness in the north of Israel is likely to be particularly high, given the possibility of retaliatory action from the Syrian side, and the chance of an American strike on Syria following their use of chemical weapons. At the same time, it has to be remembered that in less than a month, the US may withdraw from the nuclear agreement with Iran, making it irrelevant.

CHINA - China will not be easily cowed in a trade dispute... it’s worth noting China has a nuclear option. I’m referring to rare earth metals. These are elements like dysprosium, neodymium, gadolinium, and ytterbium. They aren’t actually rare, but they do play crucial roles in everything from smart phones to electric car motors, hard drives, wind turbines, military radar, smart bombs, laser guidance, and more. They’re also quite difficult to mine and process.

CHINA - While the main event this week will be the official start of the Q1 earning season which is expected to blockbuster, if mainly at the EPS level thanks to Trump's corporate tax cut... the biggest risk overhang remains the escalating trade war with China, and specifically Beijing's retaliation to the unexpected Trump escalation in which he told the USTR to consider an additional $100 BILLION in tariffs for a $150 BILLION total.

CHINA - China is evaluating the potential impact of a gradual yuan depreciation, people familiar with the matter said, as the country’s leaders weigh their options in a trade spat with US President Donald Trump that has roiled financial markets worldwide. Senior Chinese officials are studying a two-pronged analysis of the yuan that was prepared by the government, the people said. One part looks at the effect of using the currency as a tool in trade negotiations with the US, while a second part examines what would happen if China devalues the yuan to offset the impact of any trade deal that curbs exports. “It seems as if Beijing is showing the full extent of policies they could deploy,” said Viraj Patel, a strategist at ING Bank NV in London.

CHINA - On Friday, we reported that among the five "nuclear" options available to Beijing to retaliate against Trump's latest $100 billion in proposed import tariffs, was the choice whether to sell US Treasuries. But what if Beijing did not want to unleash a full-blown market nuke, and instead was hoping for a targeted EMP hit? Then it would simply stop buying US paper, instead of dumping it outright; in the process it wouldn't hurt the US too much - avoiding a furious tit-for-tat response - but would still send a clear signal to the White House, whose fiscal spending plan will more than double net Treasury issuance this year from under $500 billion to over $1 trillion, and which needs every possible marginal buyer of US paper, both domestic and foreign.

USA - The Republican overhaul of America's tax code and increased government spending are projected to boost economic growth to 3.3 percent this year but push the national debt to nearly the same size as gross domestic product by 2028, according to government data released Monday. "Such high and rising debt would have serious negative consequences for the budget and for the nation," the CBO report said.

SYRIA - The White Helmets, which claim to be an impartial NGO, saving civilians in war-torn Syria, have repeatedly been busted using false videos of their daily rescue operations. The Syrian Civil Defense, also known as the White Helmets, has published several clips and pictures, showing the alleged aftermath of the chemical attack in the city of Douma in Eastern Ghouta.

GERMANY - A traditionalist branch of the German Christian Democratic Union wants to throw over their longtime leader, Chancellor Angela Merkel. They are to begin with a “conservative manifesto,” demanding a return to Christian values.