USA/NEW ZEALAND - The United States and New Zealand conducted secret tests of a "tsunami bomb" designed to destroy coastal cities by using underwater blasts to trigger massive tidal waves. The tests were carried out in waters around New Caledonia and Auckland during the Second World War and showed that the weapon was feasible and a series of 10 large offshore blasts could potentially create a 33-foot tsunami capable of inundating a small city. The top secret operation, code-named "Project Seal", tested the doomsday device as a possible rival to the nuclear bomb. About 3,700 bombs were exploded during the tests.
UK - London's FTSE 100 rose above 6,000 for the first time in seventeen months as stock markets around the world rose strongly on news that the US had made a deal to avert the 'fiscal cliff'. The index of leading shares rose 1.9 per cent - or 113 points - to 6012 within two hours of the start of the first trading day of the New Year. Investors were encouraged the US Congress had finally backed an agreement to avert the so-called "fiscal cliff" of drastic tax rises and automatic spending cuts which had threatened to send the world's biggest economy back into recession.
USA - The Senate deal to avoid the "fiscal cliff" will add roughly $4 trillion to the deficit when compared to current law, according to new numbers from the Congressional Budget Office (CBO). The CBO determined Tuesday that the package, hammered out late Monday evening by Vice President Biden and Senate Minority Leader Mitch McConnell (Republican for Kentucky) would — over the next decade — come with a $3.9 trillion price tag.
UK - A survey of small firms has found confidence remains low, but this year promises to be a better one than the previous two years. The Federation of Small Businesses (FSB) said 2012 had been tough, but 2013 looked to be brighter. The FSB's national chairman, John Walker, said: "Confidence is still low, but our members are heading into 2013 with more confidence than they did going into either 2011 or 2012." He said, however, that it was early days and that the recovery would not be immediate: "The signs seem to be positive, but it's going to be a long road ahead, with some economists warning of a triple-dip recession and others expressing cautious optimism."
UK - One in 10 young people feel they cannot cope with day-to-day life - with those not in work, education or training more than twice as likely to feel this way - according to a Prince's Trust survey. Martina Milburn, chief executive of The Prince's Trust, said: "A frightening number of unemployed young people feel unable to cope - and it is particularly tough for those who don't have a support network in place".
USA - Even by Congress' high standards of messy brinkmanship, this was an extraordinary night. As the rest of America celebrated New Year's Eve, Democrat senators were shut in a meeting with Vice-President Joe Biden.
EUROPE - Six months ago, this week's EU summit was going to be the moment to agree upon a "specific and time-bound" roadmap for moving the eurozone towards deeper Economic and Monetary Union. Now the goals appear to be more modest. The financial markets are calmer. But the direction of travel - towards closer integration - is still pretty clear.
UK - The UK could be offered second-class status in the EU, under a proposal from some senior politicians in Brussels. Andrew Duff, a Liberal Democrat MEP, heads the Union of European Federalists, which has long pushed for more pooling of sovereignty.
UK - Last year's record rainfall has cost British farmers £1.3 billion, prompting calls for the government to provide insurance against extreme weather if it wants to preserve national food security. The National Farmers Union (NFU) estimates the extreme levels of rainfall in 2012 has cost the industry £600 million in lost output, especially from poor wheat and potato harvests, and another £700 million in extra costs such as feed for cattle, which could not graze in water-logged fields.
USA - The US Senate has approved a deal to avert tax hikes and spending cuts known as the "fiscal cliff". The bill, which raises taxes for the wealthy, came after lengthy talks between Vice-President Joe Biden and Senate Republicans.
VATICAN - The Pope will today give a public warning to David Cameron that his plans for same-sex marriage will undermine the family. Pope Benedict XVI’s New Year’s Day message warns that the Coalition’s reforms will reduce the status of marriage and harm the families that are built around it. He will say that such moves by politicians are ‘an offence against the truth of the human person’. The Pope warns there is ‘a need to acknowledge and promote the natural structure of marriage as the union of a man and a woman in the face of attempts to make it juridically equivalent to radically different types of union’.
USA - A sperm donor has been ordered to pay child support for the biological daughter he fathered to a lesbian couple who found him via Craigslist. Mr Marotta provided sperm which was used for artificial insemination by Ms Schreiner. In return, he gave up parental rights including financial duties for the child.
WALES, UK - Reverend Felix Aubel claims occult practices in rural Wales have been increasing during the two decades he has been working in the area. The minister spoke out after latest figures in the 2011 census has revealed 83 witches and 93 Satanists are living in Wales. He said there was an "unusual connection" between Christianity and witchcraft in some chapel circles in Wales. Reverend Aubel, who is the minister of five Congregational chapels in rural Carmarthenshire, said he has called out an exorcist after a witch placed a curse on one of his parishioners. He said: "This is not a joke and I would warn people not to get involved in the occult."
USA - In a sharp contrast between two of the nation's largest cities, Chicago recorded its 499th murder of 2012 on Thursday night while New York reported 414 murders as of Friday even though it has more than three times the population, according to police.
USA - Followers of cult leader, Warren Jeffs, who is behind bars for sexually assaulting young girls, are reportedly preparing for the end of the world tomorrow, after their former leader warned of Armageddon before midnight. Sam Brower, a private investigator who represents more than 100 former FLDS members, said law enforcement officers will monitor the situation in Jeffs' community closely - rather than just dismissing it as another false Armageddon warning from the radical preacher.