Saudis Order Iran Out; Terror Group Quotes Trump: Sunday Wrap

  • Fed's Fisher says central bank could use rates to stem bubbles
  • Tesla's sales for year come in on low end of target range

Here are highlights of the top breaking-news stories around the world on Sunday:

Saudi Arabia responded to an attack on its embassy in Tehran by severing diplomatic relations with Iran and ordering its diplomats out of the country. The surprise action, stemming from Saudi Arabia’s execution on Saturday of a prominent Shiite cleric, brought on the biggest crisis between the two Middle East powers since the 1980s and further damaged already stumbling efforts to end the war in Syria.

U.S. Federal Reserve Vice Chairman Stanley Fischer said it might be necessary for the central bank to increase interest rates if financial markets were overheating, though the first line of defense should be using regulatory tools to prevent bubbles from developing.

Shire Plc is close to acquiring U.S. drugmaker Baxalta Inc. for something around $32 billion.

Elon Musk’s Tesla Motors Inc. hit the low end of a target range it had already lowered on unit sales for the fourth quarter and year, reflecting the difficulties it has acknowledged of producing a vehicle as complex as its new Model X. 

Republican presidential front-runner Donald Trump’s reaction to learning that his comments about Muslims are being used in a recruitment video by the Somali-based terror group al-Shabab: Well, I gotta say what I gotta say.

Angelo, Gordon & Co. co-founder John Angelo died after a long fight with cancer.

Hong Kong police opened a missing person’s case on the disappearances of five people with ties to a bookstore that stocked political materials banned in mainland China.

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