Israel and Hamas reportedly reached a ceasefire deal for the war in Gaza. The agreement is said to include a six-week truce and a phased withdrawal of Israeli forces. Hamas is expected to initially release 33 Israeli hostages in exchange for more than 1,000 Palestinian prisoners. Both sides would still have to formally approve the agreement. Israel’s cabinet is expected to vote on the matter on Thursday.
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.
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.
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.
Figure of the day: 26%, the amount by which homelessness in England has risen in the past five years. Read the full story.
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