UK - A world wine shortage has been predicted after forecasts that production would slump to its lowest level in at least 37 years following inclement weather that ruined grape harvests across the globe. The fall is likely to push up prices, as demand exceeds supply, and see Italy overtake France – where the flow of wine is set to dry up by nearly a fifth - as the largest producing country. Production is expected to fall by 24% in Argentina, with Spain, Hungary and New Zealand also suffering reductions, according to the figures.

USA - As of Monday, the federal government has operated without a formal budget for three and a half years. Senate Majority Leader Harry Reid “last adopted a budget on April 29th, 2009,” according to a Monday press release from the Senate Budget Committee’s Republican staff. “A budget requires only 51 votes to pass and yet the Majority has refused to even meet its legal obligation to draft one,” said the release.

CHINA - China has started making concerted efforts to chase Japanese ships out of waters surrounding the disputed Senkaku islands in the East China Sea, ratcheting up tensions between Asia’s two largest economies. The Chinese State Oceanic Administration – which enforces the nation’s maritime interests – said four of its ships on Tuesday tried to expel Japanese vessels out of waters where they were operating “illegally”. Mr Li said the Chinese government was still restraining itself and would not lightly add to the tension. “But if the Japanese don’t change their ways and return to the path of negotiation, such friction could increase,” he said. “Then, it would not be a question of just four vessels but many more.”

USA - “Career day” at Tularosa New Mexico Intermediate School went terribly wrong after a 10-year-old boy says a police officer used his Taser gun to show him what cops do to people who don’t follow orders. Officer Chris Webb of the New Mexico Department of Public Safety is being sued in court after allegedly using his Taser-brand stun gun on a school playground to send 50,000 volts of electricity into a young boy’s body, forcing the child to blackout. Amnesty International claims that Taser-guns, like the ones available worldwide through Taser International, have contributed to the death of more than 500 Americans in the last few years.

USA - Joan Stevens was one of several early voters at the polls on Monday. But when Stevens tried to cast her ballot for president, she noticed a problem. Upon selecting “Mitt Romney” on the electronic touch screen, Barack Obama’s name lit up. It took Stevens three tries before her selection was accurately recorded. “You want to vote for who you want to vote for, and when you can’t it’s irritating,” Stevens said. Stevens said she alerted Jackie Smith, a board of elections member who was present. Smith declined to comment, but Stevens says she mentioned that the machine had been having problems all day.

GERMANY - For decades, almost half of Germany's gold has been stored deep below the Federal Reserve Bank of New York. Now, with the euro crisis swirling, German politicians are asking their central bankers to take stock of the reserves. Some even say that the gold should be shipped home.

NEW YORK, USA - Hurricane Sandy has turned New York and surrounding cities into a disaster zone. Manhattan is without power and large parts of the island are flooded. Transformer stations have exploded, cars are floating down Wall Street, and at least 16 people have been killed.

USA - It's a post-apocalyptic scene in lower Manhattan today. The streets are deserted, there is no electricity and there is debris everywhere - mattresses, sandbags swept away by the superstorm, tree branches. At 09:07, morning high tide, the water surges once again, though it is nothing like last night's 13ft surge. It's spookily quiet - no lights anywhere, and a dark grey, still menacing sky. Cars are piled up against one another on Avenue C - There were explosions at the local electricity sub station - "lighting up the sky," says one woman. The worst has come to pass - massive loss of power, flooded subways, and the Brooklyn Battery Tunnel is flooded, with water spilling out into the West Side Highway.

USA - Key developments as Hurricane Sandy hits US east coast, leaving several dead, millions without power and billions of pounds worth of damage. Sandy made landfall in New Jersey at 8pm local time (midnight GMT), leaving Atlantic City underwater, and hurling a record-breaking 13-foot wall of seawater at New York City.

USA - One Christian preacher has blamed Hurricane Sandy on the US government's support for gay marriage and abortion. On his website Defend Proclaim the Faith, Chaplain John McTernan says: "Once a nation legalises sin, like abortion and homosexual 'marriage', that nation falls under the direct judgment of the Holy God of Israel. God does not destroy a nation right away but first warns." He concedes that his readers might be angry with him, but insists that it doesn't change the fact that America "has fallen under the judgment hand of God".

GERMANY - Angela Merkel: The British are “for free trade, for greater competitiveness, so they are a very good partner”;

Wolfgang Schäuble: The British voice is “sorely needed in the European competition of ideas”.

USA - Grand Central deserted and subway CLOSED for only second time in history as New York goes into lock down. BA and Virgin Atlantic have cancelled all flights from London to East Coast states today - affecting those on half-term holiday. Up to 2,500 holidaymakers could be left stranded in New York City as state comes to stand still. More than 7,000 flights cancelled globally as Philadelphia International Airport and Newark International Airport each had more than 1,200 cancellations. New York Stock Exchange closes for first time since 9/11 As many as 65 people reported dead across Caribbean. Sandy could be the largest storm to ever hit the United States.

USA - The United States runs the risk of a recession far deeper than many investors and policymakers may think if lawmakers fail to avert looming tax hikes and cuts to public spending. Absent action by Congress, the country will face the so-called fiscal cliff at the start of next year, a combination of lower spending and higher taxes that is expected to extract about $600 billion from the economy. Many economists think every dollar of deficit reduction will subtract nearly the same amount from economic growth. But research by economists in academia and at the International Monetary Fund suggests a dollar of deficit reduction could drain as much as $1.70 from the economy, making the prospective belt tightening much more dangerous.

EUROPE - European Central Bank President Mario Draghi has backed German calls for a European super-commissioner to oversee national government budgets. German Finance Minister Wolfgang Schaeuble wants the "currency commissioner" to be given the power to veto national budgets. "I explicitly support this proposal," Mr Draghi told Der Spiegel magazine. Plans to impose strict limits on budget deficits have already been agreed by 25 of the 27 European Union members. Only the UK and the Czech Republic have opted out of the new rules. "If we want to re-establish trust in the eurozone, countries must pass a part of their sovereignty to the European level," said Mr Draghi.

VATICAN - When the Vatican proclaimed 2013 as the “Year of the Faith,” I wondered if this meant a rethinking of the ecumenism that has long characterized the Catholic Church’s respectful relationship with other faith communities.