CHINA - Tensions over the South China Sea have been brewing for years, which could be one reason why markets ignored the reports about the missiles last week, and have generally viewed the worsening tensions between the US and China as a non-issue. Back in 2015, the International Criminal Court ruled in favor of the Philippines, declaring that the country could officially exert sovereignty over some of the disputed islands. But China ignored the ruling, and threatened military confrontation should the Philippines try to enforce the ruling. Admiral Philip Davidson, President Trump's pick to lead the US Pacific Command, has repeatedly warned that China is trying to muscle the US out of the Pacific so it can assert unilateral domination over the territory.

USA - In the first quarter of 2018, the number of Social Security beneficiaries topped 62,000,000 for the first time, according to data released by the Social Security Administration. In fact, people receiving Social Security benefits in the United States now outnumber the population of Italy.

USA - President Donald Trump announced his decision to withdraw from the Iran deal on Tuesday, keeping his campaign promise to end the agreement reached by former President Barack Obama. “This was a horrible one-sided deal that should have never, ever been made,” Trump said. “It didn’t bring calm, it didn’t bring peace, and it never will.”

USA - President Donald Trump says “great things” can happen for the Iranian people following his announcement that the US was withdrawing from a global nuclear agreement. Trump predicted Tuesday that Iranians would someday “want to make a new and lasting deal” and that “when they do, I am ready, willing and able.” He added that a new deal could lead to the “peace and stability we all want in the Middle East.” Despite lobbying from European allies, Trump moved forward with his campaign promise to pull out of the President Barack Obama-era agreement. The Iranians have been sharply critical of the Republican president’s plan to withdraw. The possibility of the nuclear deal collapsing has raised concerns it might embolden Iran to strike Israeli targets.

MIDDLE EAST - A surfeit of Arabic-language newspapers have recently published articles discussing Israel’s superiority over Arab states, saying Israel’s strong democratic ethos and its willingness to prosecute its leaders is partly why it is the only stable country in the region, a Middle East Media Research Institute (MEMRI) report released this week said. The articles also cited Israeli education, innovation and its superior health service, as contributing factors to its astounding success. The writers urged Arab countries to learn from Israel and warned that if they do not they will remain repressed societies. Former Egyptian official Reda Abd Al-Salam wrote on the Egyptian news site the Nile Press that despite Muslim supplications, Allah has answered the prayers of the “sons of apes and pigs,” referring to the Koranic description of Jews, by giving them prosperity.

MIDDLE EAST - Starting last weekend, the number of Gaza residents willing to participate in the riots along the border fence was dropping. Hamas is no longer hiding the fact that the demonstrations are not intended to be quiet marches but rather attempts to carry out attacks on Israeli forces and civilians as well as damage the fence and military equipment. We can assume that leading up to May 15, on which the Palestinians mark the "catastrophe" ("Nakba") of their displacement during Israel's War of Independence, the border will heat up again and Hamas will spur on Gazans to head out for the "marches of return," reminding Israel and the world that the Palestinians are still committed to the dream of return, which in essence means the destruction of the State of Israel.

UK - Students at Cambridge University are being given guinea pigs to help ease their stress levels. Bosses at the famous university's Lucy Cavendish College say the furry pets will improve mental well-being. Other initiatives aimed at supporting students through their hardest term in previous years have included 'take a break' sessions, manicures, ice-cream and massages.

RUSSIA - China has significantly boosted oil imports from Russia, while the latter has been selling less crude to Europe. An analyst told RT that Beijing has become a more preferable partner in the oil trade for Moscow. RT’s source in Russia’s largest oil exporter Transneft has said that since January 1, the country is pumping more oil to China, while exports to Europe have plunged. Earlier, Bloomberg reported that Russia will have shipped 19 percent less oil through its ports on the Baltic and Black Seas in the first five months of 2018, and sold 43 percent more oil to China through March. With the launch of oil futures in renminbi, both China and Russia have said they could reduce the use of the US dollar in oil trade.

ISRAEL - There have been coups and revolutions, external invasions and proxy conflicts, but the Middle East hasn’t seen a head-to-head war between major regional powers since the 1980s. There’s a growing risk that one is about to break out in Syria, pitting Israel against Iran. The Islamic Republic’s forces are entrenching there, after joining the fight to prop up President Bashar al-Assad. The Jewish state, perceiving a direct threat on its border, is subjecting them to an escalating barrage of airstrikes. Nobody expects those strikes to go unanswered. In Tehran, Hossein Salami, deputy commander of the Revolutionary Guards, said that “100,000 missiles are ready to fly’’ in Israel’s direction, and warned they could bring about its “annihilation and collapse.’’

USA - The United States has raised concerns with China about its latest militarization of the South China Sea and there will be near-term and long-term consequences, the White House said on Thursday. US news network CNBC reported on Wednesday that China had installed anti-ship cruise missiles and surface-to-air missile systems on three manmade outposts in the South China Sea. It cited sources with direct knowledge of US intelligence. Asked about the report, White House spokeswoman Sarah Sanders told a regular news briefing: "We’re well aware of China’s militarization of the South China Sea. We’ve raised concerns directly with the Chinese about this and there will be near-term and long-term consequences."

ISRAEL - As Israel faces rising tensions with Iran, Syria and Gaza, its Parliament passed a new law allowing the prime minister and defense minister to decide alone whether their nation will go to war. The legislation, which comes after multiple attacks inside Syria widely believed to have been carried out by Israel, makes it much easier for Prime Minister Benjamin Netanyahu to declare war. Although the new law restricts the use of that power to “extreme circumstances,” it has provoked domestic criticism for concentrating it in the hands of just two people.

HAWAII - Hawaii's Big Island remains on high alert on Saturday after a massive 6.9-magnitude earthquake struck a day after the region's Kilauea volcano exploding, spewing toxic gas clouds and molten lava. A preliminary 5.6 magnitude earthquake struck the region earlier on Friday. Lava flows from the volcano have covered 48 square miles, according to the US Geological Survey. Following the most recent dramatic earthquake, more lava fissures were reported in a residential subdivision, where residents have been ordered to leave.

SWEDEN - Total world military expenditure rose to $1739 billion in 2017, a marginal increase of 1.1 per cent in real terms from 2016, according to new figures from the Stockholm International Peace Research Institute (SIPRI). China’s military expenditure rose again in 2017, continuing an upward trend in spending that has lasted for more than two decades. Russia’s military spending fell for the first time since 1998, while spending by the United States remained constant for the second successive year. ‘Continuing high world military expenditure is a cause for serious concern,’ said Ambassador Jan Eliasson, Chair of the SIPRI Governing Board. ‘It undermines the search for peaceful solutions to conflicts around the world.’

USA - One of Donald Trump's main arguments for cancelling the Iran nuclear deal has been Iran's role in devastating conflicts in Iraq, Syria, Yemen and Lebanon. Iran and Saudi Arabia have been locked in a proxy war for almost 40 years, competing for regional supremacy from Iraq to Syria and Lebanon to Yemen. US President Donald Trump has strongly backed Saudi Arabia in its efforts to counter Iran's influence in the region. On multiple occasions, Trump has cited constraining Iran’s influence in the Middle East as cause for canceling the 2015 Iran nuclear deal, which he claims allows Iran to continue to terrorize the region. Saudi Arabia has vowed to pursue nuclear weapons in the event the Iranians restart their nuclear program.

INDIA - India joined the world’s top military spenders last year, coming in fifth place after the United States, China, Saudi Arabia, and Russia, respectively, a defense budgets independent watchdog revealed in an analysis released Wednesday. "Tensions between China and many of its neighbors continue to drive the growth in military spending in Asia,” declared Siemon Wezeman. “The Indian government plans to expand, modernize and enhance the operational capability of its armed forces, motivated at least partially by tensions with China and Pakistan,” the assessment adds. China and its ally Pakistan consider India to be their regional military and economic rival.