And Icelandic volcano erupts, missing local town for now.

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Daily Briefing

Israel kept pounding the shattered Gaza Strip, lava from a large volcanic eruption in Iceland appeared to flow away from the only town in the area, and Kyiv's wartime economy faces a more challenging 2024.

 

Plus, one photo from every week of 2023.

 

By Kate Turton

Today's Top News

 

An Israeli military vehicle seen from Southern Israel, December 18, 2023. REUTERS/Clodagh Kilcoyne

  • Israel kept pounding the shattered Gaza Strip while Yemen's pro-Palestinian Houthi movement vowed to defy a US-led naval mission and keep hitting Israeli targets in the Red Sea.
  • A number of container ships are anchored in the Red Sea and others have turned off tracking systems as traders adjust routes and prices in response to maritime attacks by Yemen's Iran-aligned Houthis. Correspondent Philip Stewart tells the Reuters World News podcast more about the US task force to protect ships there.
  • A volcano erupted in southwest Iceland, spewing lava and smoke across a wide area after weeks of intense earthquake activity, threatening a nearby town. Watch our livestream of the eruption.
  • A magnitude-6.2 earthquake jolted a remote and mountainous region on the northern edge of the Qinghai-Tibetan plateau just before midnight on Monday, killing at least 118 people and injuring hundreds, according to Chinese state media.
  • Ukraine's embattled economy can weather the next few months until foreign aid arrives, but 2024 is certain to be tougher than this year and Kyiv will need to rely more heavily on its own resources.
  • The Vatican said in a landmark ruling approved by Pope Francis that Roman Catholic priests can administer blessings to same-sex couples as long as they are not part of regular Church rituals or liturgies.
  • A federal judge ordered a halt to the removal of a Confederate monument at Arlington National Cemetery shortly after US Army crews began work to dismantle the tall bronze statue as required by Congress under a Jan. 1 deadline.
 

Business & Markets

 
  • For investors who braved their 'bonds are back' call in a turbulent year, euro zone debt was the big winner and a souring economy with tighter purse strings mean its allure will continue in 2024.
  • The Bank of Japan maintained ultra-loose monetary settings in a widely expected move, underscoring policymakers' preference to await more clues on whether wages will rise enough to keep inflation durably around its 2% target.
  • Listen to David Shepardson tell the Reuters World News podcast how the Biden administration is trying to push for more protection of passengers after Southwest Airlines agreed to a record-setting $140 million civil penalty over the December 2022 holiday meltdown.
  • Importers of coffee to the European Union are starting to scale back purchases from small farmers in Africa and beyond as they prepare for a landmark EU law that will ban the sale of goods linked to the destruction of forests, a cause of climate change.
  • China's disappointing post-COVID recovery has raised significant doubts about the foundations of its decades of stunning growth and presented Beijing with a tough choice for 2024 and beyond: take on more debt or grow less.
  • Big defense firms are expecting strong demand in 2024 as the US and its allies load up on expensive weaponry and munitions with an eye on what they perceive as more aggressive actions from Russia and China.
  • Dutch airline KLM is set to face off with environmentalists in an Amsterdam court over whether its advertisements misled customers in an alleged case of "greenwashing".
 

Trump would install loyalists to reshape US foreign policy on China, NATO and Ukraine

 

Trump speaks during a rally in Reno, Nevada. REUTERS/Carlos Barria

Donald Trump in a second term would likely install loyalists in key positions in the Pentagon, State Department and CIA whose primary allegiance would be to him, allowing him more freedom than in his first presidency to enact isolationist policies and whims, nearly 20 current and former aides and diplomats said.

 

The result would enable Trump to make sweeping changes to the US stance on issues ranging from the Ukraine war to trade with China, as well as to the federal institutions that implement - and sometimes constrain - foreign policy, the aides and diplomats said.

 

And Finally

 
  • One photo from every week of 2023
 

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