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This opinion piece in the NYT says president Trump is making the border wall with Mexico a big issue leading to the government shutdown as he seeks $5 billion in funding from Congress. Mr. Trump needs this politically it says because he will make it or sink politically based on how he meets his campaign pledge of building a border wall.

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One year after the tax cut analysis shows the effects were muted and most of the increase in business investment comes from the drop in energy prices. The U.S. economy grew 3% in 2018. The tax cut lowered the corporate tax rate to 21% from 35% and cut rates for closely held businesses. Analysis shows investment growth picking up from trends in 2016 and 2017.

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The Zero Energy Ready Home is now becoming a reality- what little energy they need can be derived from a roof full of soalr panels. Instead of conventional cooling and heating such homes use a heat pump, use enough insulation, and LED lighting. In 2020 California will require all new home to be Net Zero for energy use. The European Union also has set a goal of net zero for 2020 for all new home being built. In the U.S. only 8547 units of this type were built in 2017, with about 38,000 in construction.

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The resignation of U.S. Defense Secretary Mattis comes as a result of Mattis being unable to change plans by president Trump for a withdrawal from both Afghanistan and Syria. WSJ discloses that at a meeting on December 18 at the Pentagon, with John Bolton, White House National Security Advisor, Mike Pompeo, Secretary of State, and John Dunford, chairman Jt. Chiefs of Staff, Mattis could not temper the president's plans. On Thursday December 20th Mr. Mattis decided to resign. He then met Mr. Pompeo and onto the White House to meet president Trump. He and Mr. Trump discussed their contrasting world views in a 45 minute meeting, and Mr. Mattis handed over his resignation letter to Mr. Trump. Military officials were particularrly blindsided by the withdrawal from Syria. U.S. policy has vacillated back and forth in the intervention in Syria with president Obama also hesitant to commit troops in Syria. In the meeting Mattis understood that even a minimal presence in Syria was unacceptable to president Trump who ordered the removal of the 2000 troops there. The withdrawal from Afghanistan was also a result of limited patience with the war there in the 18th year and no sign that the Taliban influence had diminished since the war began- after Trump added 3000 troops to the 14,000 stationed in Afghanistan. The U.S. has 5500 troops in Iraq and there is talk about drawing this number down. The concern for the defense department is that how U.S. allies will see the withdrawal, and their perception of how reliable the U.S. is as a partner. For president Trump the cost is measured in terms of the long period the U.S. was engaged in the region without any tangible results, and U.S. not allies bearing most of the cost.      ...

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The U.S. government partially shutdown on December 22, 2018, after members of Congress failed to reach a deal on funding a border wall with Mexico that president Trump has supported. Mr. Trump is seeking $5 billion for constructing the border wall which he sees as needed for securing the border. Two bills in Congress provide $1.3 billion and $1.6 billion in spending. The shutdown comes at a time of Christmas holidays with Democrats and Republicans continuing negotiations for a deal. A House Bill provides $5.7 billion for the wall, but faces a hurdle in the Senate where 60 votes are required and Republicans have a slim 51-49 majority. The border wall with Mexico is part of Mr. Trump's core campaign pledge. Mr. Trump sought to blame Democrats for the shutdown.

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This report in the WSJ points out that president Trump's planned withdrawal from Afghanistan to reduce the number of the 14000 troops there by half is an attempt by Mr. Trump to bring the number below the 8400 troops there that president Obama left there at the end of this term. In this way president Trump could show that he has not increased the presence there as he prepares for reelection, for a war that is not popular, and which Mr. Trump sees as a waste of national treasure. The U.S. had at one time 100,000 troops there. But at no time was the U.S. close to ending the war or the insurgency. Since 2014, 45,000 Afghan forces were killed in the war. 

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Apple shares are down 25% says this WSJ article and asks the question whether Apple's best days are past. In the fastest growing markets in Asia and Africa, Apple iPhones are beyond the reach of about 95% of the population. The number of Apple iPhones sold in India have dropped 40% in 2018 compared to 2017. Apple's market share in India has fallen from 2% to 1%, according to Canalys research firm. The $1.8 billion in Indian sales is about half of what Apple executives had hoped for when Tim Cook visited India in 2016. Some call it a rout. Tim Cook seldom mentions India now. At the center of this is Apple's reluctance to change its business model of getting the highest margins, making not a range of handsets, but a few models selling at high prices. This is the strategy that Apple has used to revive the company from near bankruptcy in 1997. Competitors including Xiaomi, the Apple for China and India, tweak their phones constantly to address local concerns for battery life, and lower prices to get market penetration. Only 24% of Indians have a smartphone and India is fastest growing market. Friction with the Modi government which cannot be favorable to Apple's plans to push a high  margin product when competitors have similar but better value packages.   In price sensitive markets of Africa and Asia most people buy phones outright and use pay as you go plans, Apple is not popular. Even in China Apple's market share is down from 12.5% in 2015 to 8% in 2017, according to Canalys. Apple is reluctant to make many models offering lower prices and to address concerns such as battery life in India. In India 39 million people will add smartphones in 2018 with 75% costing less than $250, 95% costing less than $500. In Apple's lineup the iPhone 7 costs around $550. Competitors such as Xiaomi, OnePlus, Oppo, and Vivo flooded India with smartphones costing less than $200. Unlike Apple which spurns market research these companies do extensive research work on local situation. OnePlus has focussed on battery life and gained 30% share of the premium segment to Apple's 25%. By making the devices in India these companies avoid having to pay the 20% tariff. Apple has so far not put up a new plant with the restriction that India places of single brand retailers over 51% foreign owned to buy locally 30% of manufacturing materials. The Modi government felt Apple was not focussed enough on bringing high tech jobs to India and helping local manufacturing, a perception not conducive to expansion in India where "Made in India" is the government plan. This means opening Apple stores in India is less likely now.  The turnover of Apple India executives is also increasing with 3 new CEO's 2017- 2019. Apple's strategy of targeting wealthier Indians makes it not even a fringe player in the Indian market down to 1% of the market. Just as it shrinks in the Chinese market where most customers are price sensitive and the economy is slowing.   ...

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A split in the Conservative Party looks increasingly likely says this report in the Times. Party members in government and members of parliament are openly critical of each other. Some members of the party support even a no-deal Brexit, while others see this as dangerous for the economy. This report looks at its history when different factions struggled to control it. The party could struggle in future elections as a result.

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According to this report in The Times money taken from a sovereign investment fund was used for the film "Wolf on Wall Street," starring Leonard Di Caprio. Details of the 1MDB story first investigated by the Wall Street Journal read like a detective novel. Malaysia's former prime minister in his 90's returned this year to defeat his former protege Najib in an election that revolved around the 1MDB story and how the state investment fund had funds diverted away from development goals by Najib. Malaysia's Attorney General files criminal charges against Goldman Sachs bank for collusion in the loss of billions of dollars from the 1MDB Malaysia fund intended for development goals, according to this report in The Times. Two former employees are accused of misappropriating $2.7 billion. The statement by the Attorney General, Tommy Thomas about Goldman Sachs bank said: "They have fallen short of any standard... they have to be held accountable." ...

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Worst performing are Nissan and Renault cars, says this report in The Times, going up to 11 times the legal limit for emissions, according to a study for the UK.

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A pair of reports by the U.S. Senate Intelligence Committee shows that Google, Facebook and Twitter "evaded" and "misrepresented" themselves about the extent of activity by Russian trolls on their sites. 

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In a speech to 3000 party officials Xi Jinping says it is the "central and united leadership of the party that made possible this historic transition." He was speaking at the 40th anniversary of the Deng reforms to open up China's economy. He said China was right to have "lofty aspirations." Yet he said China "would not sacrifice the interests of other countries," while preserving its own interests. The speech comes as China is trying to find a way out of the trade tensions with the U.S. through negotiations. The U.S. sees China in the same way that it saw Japan's rise as an industrial power in the 1980's. and seeks to preserve U.S. economic strength and balanced trade relations that give no unfair advantages to Asian competitors. The U.S. negotiating team is led by the same negotiator who led the team that negotiated for the Reagan administration with Japan-Robert Lighthizer.

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Stock market volatility increases in the  4th quarter of 2018, accelerating the drop in oil prices, with global uncertainty about growth. The trade tensions between China and the U.S. are the background for this.