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Boris Johnson leads a new British government that is composed mostly of ministers who want to see Brexit happen, and giving the positions of Home Secretary and Foreign Secretary to persons who do not care what happens as long as Britain leaves the European Union. Johnson's date is October 31st for leaving the EU. Sajid Javid, a former Deutsche Bank AG executive is the new chancellor of the exchequer. Priti Patel is new Home Secretary. Dominic Raab a former lawyer who has called for parliament to be suspended if need be so that Brexit can be pushed through is the new Foreign Secretary. Dominic Cummings who headed the Leave campaign for the Brexit referendum in 2016 is the new adviser at 10 Downing Street. Johnson's strategy is to pack the cabinet with people loyal to his vision of leaving the EU October 31st regardless of what the EU does.  The EU has not changed its position and is even less likely to consider any new Irish border proposals. Three top ministers are opposed to Mr. Johnson's views and resigned. Treasury chief Philip Hammond, Deputy primeminister David Lidington, Justice Secretary David Gauke, all resigned in opposition to Mr. Johnson simply pulling Britain out of the EU. Johnson once said all he feared from Britain abruptly leaving the EU was a shortage of Mars bars. During the election in the Conservative party Mr. Johnson was mostly quiet and avoided any gaffes to sound statesman like, yet as the process unfolds Mr. Johnson is likely to face the same problems faced by his predecessor Mrs. May. Added to this is the new opposition of moderates like Mr. Hammond and Gauke in the Conservative party that could topple the government and lead to a general election with just three vote swing in the other direction doing this. Mr. Johnson has prepared for this by having Mr. Cummings as a top adviser in the event he faces a general election. Meantime the Labour party initially not favoring a second referendum with Mr. Corbyn's ambiguous views on Brexit, as shifted gradually to the leadership and the rank and file all favoring a second referendum and for Remain. As Greg Ip has pointed out in the WSJ this week the conditions have changed with protectionism, nationalism and hostility to globalization, and president Trump not planning concessions of any sort even for the UK in trade negotiations. This means to low productivity of less than 1% to support stifled wages, one would have to add a 3.5% hit to GDP from a no deal Brexit such as Mr. Johnson approves according to the IMF. With the migration issue not what it was three years ago and reduced to a trickle this new situation must be on the minds of Mr. Corbyn, Labour and Conservative moderates. ...

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Sabotage of two tankers in the Persian Gulf and reports of activity of Iranian proxy forces in Iraq and Syria have led to an American response with the dispatch of a aircraft carrier and other forces to the region.  This report in the NYT says Defense Secretary Shanahan has prepared plans for deployment of American forces in the region with one plan calling for 120,000 troops to be dispatched to the region. As president Trump is against American involvement in land wars in distant places, the force is designed as a precaution in case of an Iranian attack through proxy forces in Syria or Iraq and not for a land operation. National Security Adviser Bolton has taken a strong position on Iran since the days of the Bush administration. The U.S. withdrawal from the Iran nuclear deal, the sanctions on Iranian oil, are part of a new policy of the Trump administration. The European Union countries have followed a policy of preserving the nuclear deal of 2015, even though the U.S. is pressuring EU countries. The oil sanction have led to a sharp drop in oil exports and is hurting the Iranian economy. President Rouhani of Iran says Iran may withdraw from parts of the Iran nuclear deal and the Iranian response is leading to heightened tensions in the region.  It was only recently that the Democratic party Obama administration pursued the Iranian nuclear deal with opposition from Republicans in Congress and skepticism of Israel. The election of president Trump who says the deal was a bad one has reversed U.S. policy leading to a complete change in policy and a possible confrontation with Iran. U.S. policy can veer back and forth depending on the party or president in power who completely different perceptions of the region. Obama had sharp difference with Israel and Saudi Arabia, and a different perception of Iran. Trump and Bolton see Iran as a threat to the U.S. After Iran shipped most of its nuclear fuel out of the country in 2016 in exchange for lifting of economic sanctions under president Obama's nuclear deal it would take over a year for new uranium enrichment facilities to produce the materials for a nuclear bomb, according to this report in the NYT. When the Obama administration negotiated with Iran the window had shrunk to a few months.   ...

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Ford is facing a sales disaster in the China market after lagging in coming up with new models and falling behind in adopting new technology in the hyper competitive Chinese market. Sales dropped from 1.27 million vehicles in 2016 to 752,000 vehicles in 2018. In 2018 sales dropped by 37%, when the Chinese market declined by 3%. In 2019 the car market in China shrank by another 12% in the first half.  The problems stem from poor management. Alan Mulally started the China project, his successor from a Michigan furniture company CEO Jim Hackett was unable to grasp the challenges in China with new technology a key feature of keeping abreast of the Chinese market. A succession of new executives in China from U.S. or EUropean operations compounded the problem each group lacking the touch needed with local Chinese conditions. Some experts say Ford is now becoming irrelevant in the Chinese market after being a late starter in coming to China and then investing billions in a catch up effort. GM and VW started much earlier. Ford reported loss of $1.5 billion in 2018. From 5% in 2015 its market share dropped to 2.1% in first quarter 2019. Ford was complacent and applied a global strategy in China when local Chinese car companies were moving with lightning speed. Ford was asked to locate in the far interior of the country as a late comer to China and its partner Chang'an Auto was more concerned about keeping car jobs than introducing the latest technology and models. China is obsessed with new technology and there is no way Ford could be allowed to get away with outdated models. ...

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U.S. president Obama offers his own assessment of the divisive rhetoric of Trump and its origins in the way the Republican Party has opposed him throughout his two terms, including opposition to Obamacare, and ways to tackle poverty, joblessness, without offering alternatives. He says conservative news outlets encouraged this trend till Mr. Trump said he could do this better by raising the level of rhetoric. Democratic candidates Hillary Clinton, Bernie Sanders and voices in the Republican Party are critical of the way Trump conducts his rallies, and the abusive rhetoric for Latinos, Muslims and minorities.

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The Economist magazine says the difficult process of Brexit is now being put by Theresa May into the hands of the pro-Brexit ministers, Liam Fox, David Davis and Boris Johnson. Just staffing the Department for Exiting the EU under Davis, and the Department for International Trade under Liam Fox is taking a lot of time. And the differences between Fox and Davis also figure into the time it will take to invoke Article 50. It says the points put forward by Brexiters that Britain could revert to WTO rules do not work so well in practice, and it takes years to negotiate new trade agreements with other countries. It sees many problems, and says it is no wonder that Theresa May has told the Brexiter ministers to come up with answers as they are the ones who have sold this idea to the country.

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Automakers will have to ensure that 40 to 45% of a car's content is made by workers in the U.S. earning at least $16 per hour. If this is not met automakers pay a 2.5% tariff for cars brought in from Mexico. Mexico makes 2.3 million cars and Canada 1.8 million. Automakers invested tens of billions of dollars in Mexico turning it into a lower cost export hub. This has led to job loss in the U.S. Mr. Trump's efforts in the new trade deal with Mexico are designed to increase investment in the U.S. auto industry.

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There is little chance that Mexico is going to pay for a wall, or that it is possible to prevent remittances by Mexicans working in the U.S., says O'Grady in the WSJ. President Obama says about preventing each and every Western Union remittances transaction "good luck with that."

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Freeman contrasts the speeches given by Obama and Trump, one in Cairo after becoming president, and the other in Riyadh. Freeman says Obama did not give enough credit to American leadership and progress on women's rights, and was not critical of Iran during a period in which sectarian strife has led to the situation in Syria and Iraq. 

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The Fifth U.S. Circuit Court of Appeals granted a U.S. administration request staying the effect of a lower court ruling, giving the government the $3.6 billion in U.S. Defense Department funds to build a border wall. This money goes towards the goal of building 500 miles of the wall by the end of 2020. In a 2-1 decision the court majority cited a Supreme Court order from July 2019 that gave the Trump administration the go ahead to use military funds for border wall construction.

The $3.6 billion is part of a $6.7 billion plan of spending under an emergency declaration by president Trump on grounds of border security. So far 100 miles of border wall have replaced flimsier construction barriers that existed. The government now needs to convince private land owners along large stretches of the border along the Rio Grande and other areas to give up their land for the wall. 

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In a new first China's Chang'e-4 probe is about to touch down Jan 3rd on the dark side of the moon, and dispatch a rover in a vast crater to explore the moon. China is using this as the first step in setting up a planned lunar base by 2030. This happens as president Trump revives the U.S. space program after it languished under the Clinton, Bush and Obama administrations restricting to unmanned space exploration.

China National Space Administration is the best funded space agency in the world after U.S.'s NASA. Some experts say NASA has lost its focus falling victim to shifting political agendas. An earlier funded program to return astronauts to the moon by NASA was cancelled in 2010 during the Obama administration. This is now jolting the Trump administration into action to revive the programs whose goals are now harder to achieve for the moon program dates in 2023.

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Galston says the Republican establishment's support for Trump before the Republican primary in Iowa is shortsighted and a mistake.

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One of the first questions by moderators in the Univision debate in Florida focussing on immigration issues related to the anti-immigrant sentiment fostered by Donald Trump. Trumps statements on Hispanics and Muslims came under withering criticism from Clinton and Sanders. Hillary Clinton stated in reference to the Trump campaign slogan "Make America Great Again" that you can't make America great by doing things that do not reflect America's values. She said she would continue to speak up against the anti-immigrant sentiment created by Trump's derogatory statements about immigrants.

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The Wisconsin Republican primary turns out to be the turning point for the Cruz campaign. Following his landslide win in Utah, Cruz wins in Wisconsin by about 14 percentage points, and begins the long journey to close a signficant part of the gap with Donald Trump. Cruz's organization, and the anti-Trump groups efforts, ad spending, helped Cruz in his win. Trump was handicapped by a series of gaffes including one on abortion- saying he would penalize women having abortions- alienating women. Cruz's margin for voters making up their mind on the day of voting, excluding early voting, was higher at about 17 percentage points. Closer media scrutiny of statements by Trump and policy implications, including foreign affairs, European policy, the nuclear issues, happened in the week before the Wisconsin primary. This happens late in the campaign. The weak media vetting of the main candidates Trump and Cruz being lost in the coverage of Trump's sensational statements and twitter comments about wives, for which the media has come under criticsim. ...

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Ted Cruz wins the Wisconsin Republican primary election with 48% to Trump's 34%, with only 29% of voters who made up their mind late going to Trump compared to 46% for Cruz. About 37% of the voters in the Wisconsin primary said they would not vote at all or vote for Hillary Clinton if Trump was nominated. Showing deep discomfort with Trump exit polls showed 58% saying they were "concerned" or "scared" if Trump was elected. Cruz quoted John Kennedy and Winston Churchill, describing it as the turning point in the primaries.