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.
Police arrested Yoon Suk Yeol, South Korea’s president, after a six-hour stand-off at his residence. Investigators will question Mr Yoon on charges of insurrection, following his attempt to impose martial law in December. He was (separately) impeached afterwards, but did not appear for the first day of his impeachment trial on Tuesday. Authorities previously tried to arrest Mr Yoon on January 3rd, but were stopped by his security staff.
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.
American senators grilled Pete Hegseth, Donald Trump’s pick to be secretary of defence, at a confirmation hearing. Mr Hegseth has been accused of frequent drunkenness and sexually assaulting a woman, claims which he denies. He said he had faced “a co-ordinated smear campaign orchestrated in the media”. If confirmed, Mr Hegseth would be perhaps the most inexperienced man ever to run the Pentagon.
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.
Meta, the parent company of Facebook, Instagram and WhatsApp, plans to cut around 5% of its global workforce—roughly 3,600 employees. In a memo to staff Mark Zuckerberg, the chief executive, said that “low performers” would be let go “faster”. The social-media giant, which shed more than 21,000 jobs in 2022 and 2023, is reallocating resources to its artificial-intelligence initiatives.
Figure of the day: 26%, the amount by which homelessness in England has risen in the past five years. Read the full story.
American politics matters intensely to the rest of the world. Read The US in brief—a daily update to help you keep on top of the political stories that matter. Sign up here to receive it as a newsletter, each weekday, in your inbox.