President Joe Biden and Qatar’s prime minister confirmed that Israel and Hamas reached a ceasefire deal that aims to end the war in Gaza. It is set to take effect on Sunday. The first phase of the agreement includes a six-week truce and a withdrawal of Israeli forces from populated areas. Hamas will initially release 33 Israeli hostages in exchange for more than 1,000 Palestinian prisoners. Mr Biden said that “phase two” would be “a permanent end of the war”. Both sides still have to formally approve the agreement. Israel’s cabinet is expected to vote on Thursday. Mr Biden, who leaves office on Monday, called the deal “one of the toughest negotiations I’ve ever experienced”.
Wall Street banks delivered robust fourth-quarter results, led by strong performance in their trading and investment-banking divisions. Goldman Sachs posted $4.1bn in profits, more than double the previous year, as equities trading hit record levels. JPMorgan also excelled, with trading revenues jumping 21% to $7bn. Wells Fargo’s profits increased by 47%, despite flat loan growth.
Russia launched large air strikes on Ukraine, firing dozens of missiles and drones at power infrastructure across the country. Ukraine’s air force said it destroyed most of the missiles and shot down or jammed many of the drones. However, the strikes reportedly damaged some power facilities. On Tuesday Ukraine said it had launched its biggest aerial attacks yet on military infrastructure inside Russia.
Nearly 80 bodies have been recovered from an illegal gold mine in South Africa since a court-ordered rescue mission began on Monday. Police had been in a standoff with the mine for months, blocking workers’ access to food and water to force them to surface. Hundreds of miners have emerged since the sweep began; they were arrested for illegal mining and immigration offences.
Britain’s annual inflation rate was 2.5% in December, down from 2.6% in November. The unexpected drop increases the likelihood that the Bank of England will cut interest rates at its next meeting in February. The news provided a boon for Rachel Reeves, the chancellor, who has faced criticism this month after British bond yields jumped sharply.
Germany’s economy contracted for a second consecutive year in 2024, according to the Federal Statistics Office. Europe’s largest economy shrank by 0.2% last year; it is grappling with weak global demand, a struggling automotive sector, high energy costs and an ageing population. The country’s central bank expects growth of just 0.2% in 2025.
America’s Food and Drug Administration banned Red 3, a dye, in food. Studies have linked the colouring, made from petroleum, to cancer in animals. It is found in some 9,000 American food items. It is already prohibited in the European Union, and was banned from American cosmetics in 1990.
Figure of the day: 2.7%, Argentina’s monthly inflation rate in December, down from 25.5% a year earlier. Read the full story.
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