U.S. Military Fires Back At Iranian Proxy

Good morning and happy Wednesday! We hope you had a wonderful holiday weekend. You may have received a gift card recently or given one to someone. Gift cards are big business; Americans are expected to spend $30B on them this holiday season and 70% of the cards will be cashed in over the next six months. As for the rest? There are billions of dollars in unused gift cards out there and things can get complicated with them. Have a great day!

In Today’s Brief

• Trump: Another bid to get charges dismissed

• Gaza: Israel says war could continue for months

• Kanye West: Antisemitic comments apology

• Holiday sales: Slow growth amid inflation

... and more

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1) U.S. airstrikes hit Iranian-backed group in Iraq

President Joe Biden ordered airstrikes on an Iranian-funded group in Iraq after U.S. military personnel were wounded in a drone attack.

• The operation: U.S. forces attacked Kataib Hezbollah, a militia group backed by Tehran, and its affiliate groups. The airstrikes came after Kataib Hezbollah took credit for a Christmas day drone attack on Erbil Air Base in northern Iraq. Three servicemembers were injured in the drone attack, including one in critical condition. The retaliatory airstrikes hit three installations used by the militia. Iranian-backed groups have attacked U.S. forces at least 100 times in Iraq and Syria since the start of the Israel-Hamas war in Gaza.

• The aftermath: The Pentagon said the airstrikes destroyed their targets and likely killed militants, but said there were no indications of civilian casualties. But Iraqi officials criticized the airstrikes and said one member of its military and civilians were killed. Iraqi Prime Minister Mohammed Shia al-Sudani said the airstrikes constituted hostile acts that violated their national sovereignty and could strain U.S.-Iraqi ties.

• Big picture: The airstrikes will renew fears the Gaza war could eventually escalate to engulf larger portions of the Middle East. They also come as the U.S. is dealing with the Yemeni-based Houthi Rebels, another Iranian-sponsored group, in the Red Sea. The Houthis are attacking commercial and military ships with drones and missiles, slowing international commerce in the region's critical waterways. A U.S.-led maritime security pact has launched while some major shipping companies have said they will resume transport activities. But the attacks have not subsided and other nations have shown hesitancy to participate with the task force. Biden has reportedly considered direct airstrikes on the Houthis.

2) Ukraine deals Russia a Black Sea blow

A Ukraine missile attack has caused significant damage to a Russian warship in the Black Sea, likely hindering Russia's naval capabilities as the region's war approaches its second anniversary.

• What happened: Russia has conceded the Novocherkassk, a large landing ship, was damaged by Ukrainian missiles while docked in a Crimea port while at leas one person was killed. The Ukrainians say they destroyed the ship and the attack should prevent Russia from using it to carry armored vehicles, tanks and troops ashore. Ukraine has struggled for momentum in recent weeks as its counteroffensive has failed to deliver anticipated gains and international aid support has waned.

• The impact: Russia has controlled Crimea since illegally annexing it in 2014. Russian President Vladimir Putin recently suggested he wanted to seize more parts of coastal Ukraine, calling Odessa -- where the Ukrainian Navy is based -- a Russian city. Ukraine has had consistent success attacking Russia's Black Sea fleet during the war, even as it has become mired in what many analysts say is a ground stalemate.

• Navalny located: Alexei Navalny, Russia's most prominent opposition leader, has been located. Navalny, who is imprisoned on charges and convictions the world community has rebuked as illegitimate, is now at a remote penal colony in Siberia. His aides and attorneys had no contact with him for two weeks after his removal from a penal colony closer to Moscow. Navalny said he is in good health and compared himself to Santa Claus, as he resurfaced on Christmas Day.

3) Third-party candidate buzz continues

The prospect of a third-party candidate shaking up next year's presidential election -- and harming or helping the major party candidates -- continues to be a hot topic.

• Manchin's next move: West Virginia Sen. Joe Manchin's flirtation with a presidential bid continues. The retiring Democratic lawmaker is scheduled to appear at a Jan. 12 event in New Hampshire that typically hosts presidential candidates. Manchin and his daughter are attempting to raise $100M for a centrist group called Americans Together; Manchin has said he will embark on a two-month national tour to start the new year. Manchin has been consistently coy about his presidential plans.

• RFK Jr. ballot plan: A super PAC supporting Robert F. Kennedy Jr.'s independent bid has centered its efforts on gaining ballot access in seven key states -- Arizona, California, Georgia, Illinois, Michigan, New York and Texas. It will also work on ballot issues in other states. Kennedy's current polling numbers are the strongest for an independent candidate since H. Ross Perot's insurgent 1992 run; the super PAC, American Values 2024, has said it believes Kennedy could prevail if no candidate receives 270 Electoral College votes and the election is sent to Congress for the first time in almost 200 years.

• Also in the mix: Dr. Cornel West, a progressive author and professor who previously supported Vermont Sen. Bernie Sanders' presidential bids, has said he will run as an independent. The Green and Libertarian Parties will again have candidates with substantial ballot access. And the No Labels group is expected to attempt to launch a candidate. Democrats and Republicans have argued Kennedy, Manchin and others could have varying impacts on President Biden and former President Donald Trump, the current GOP frontrunner.

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Quick Tips

U.S. News

• Former President Trump has asked a federal appeals court to throw out his election interference case on presidential immunity grounds. The filing comes after the Supreme Court declined Special Counsel Jack Smith's request for an expedited hearing on the argument (More)

• Harvard University continues to face pressure to force out President Claudine Gay amid plagiarism accusations. Gay has been under fire since her controversial testimony at a House hearing on campus antisemitism (More)

• Spirit Airlines has apologized after accidentally placing an unaccompanied 6-year-old on the wrong flight last week. The boy was sent from Philadelphia to Orlando, but he was supposed to travel to Fort Myers, Florida (More)

World News

• Israeli officials, including Prime Minister Benjamin Netanyahu, said the war in Gaza could continue for months as Israel remains committed to destroying Hamas. The militant group has rejected a peace proposal by Egypt that would have seen a Palestinian government overhaul (More)

• A Turkish parliament committee approved Sweden's application to join NATO. Turkey has delayed Sweden's entry into the alliance while seeking concessions, but President Recep Tayyip Erdogan is expected to sign off on its admittance following a full parliamentary vote (More)

• Mexico has launched an army-run commercial airline company. Mexicana Airlines, which was previously run by the government and shut down in 2010, will carry travelers from Mexican cities to resort destinations (More)

Entertainment & Sports

• Kanye West apologized for past antisemitic remarks yesterday in an Instagram post written in Hebrew. West, who has repeatedly praised Adolf Hitler, said, "I deeply regret any pain I may have caused" and claimed his outbursts were unplanned (More)

• The Color Purple made $18M domestically on Monday, its release date. It was the largest Christmas Day box office opening since 2009 and the second-biggest in history (More)

• Sam Allison became the second Black referee in English Premier League history yesterday and the first in 15 years. Allison officiated Luton Town's 3-2 victory over Sheffield United (More)

Business & Markets

• Major indexes closed higher yesterday. The Nasdaq notched an all-time high and record close while the S&P 500 pushed closer to its all-time high (Dow +0.43%, Nasdaq +0.54%, S&P 500 +0.42%).

• National retail sales increased 3.1% over the holiday season, according to Mastercard, failing to meet projections and lagging behind last year’s 7.6% rise. Analysts attributed the tepid results from Nov. 1 to Dec. 24 to higher interest rates, inflation and a lack of retailer discounts (More)

• Apple has appealed an import ban on some of its Apple Watches and filed an emergency request in federal court. The Biden Administration declined to veto a government tribunal ruling amid Apple's patent dispute with medical monitoring technology company Masimo (More)

Tips & Tricks

• Feel Good: Holiday travel can be brutal. So officials at Portland International Airport came up with a unique idea to alleviate stress: Therapy llamas. No, really. A pair of llamas and their handlers patrolled the terminal to take photos, receive pets and lift spirits.

• Sneak Peek: Amazon Prime has dropped a trailer for Expats, an upcoming series starring Nicole Kidman. Based on the novel The Expatriates, the series tells the story of a group of women living in Hong Kong and how they cope with a life-changing event.

• Look Back: It has been 30 years since NBC took a chance and tabbed Conan O'Brien to replace David Letterman in its late-night programming lineup. While O'Brien's time with the network eventually ended with controversy, his style transformed the genre. Vanity Fair has assembled an oral history of O'Brien's first year behind the desk.

• Play Ball: Steve Garvey, a 10-time All-Star first baseman for the Los Angeles Dodgers and San Diego Padres in the 1970s and 1980s, has emerged as a serious player in next year’s Senate race in California. Republicans believe he is their best shot at a statewide win since Arnold Schwarzenegger’s time as governor while Democratic rivals fear he could swing the election to Rep. Adam Schiff, the current frontrunner.

• Go Deep: Seattle-based drinkware manufacturer Stanley has always had a strong business. The company was founded over a century ago and it boasted $70M in annual sales. But then its 40oz water bottle became a cultural phenomenon in 2020. And now the company is on track to drive $750M in sales in 2023 after capitalizing on its breakthrough moment.

• Best Friend: Owning a pet may not just be good for your soul. It may also be good for your brain. A new study by Chinese researchers suggests that older people with pets experienced more gradual cognitive decline than those who did not have pets. The study found that having pets reduces loneliness, which is a key risk factor for dementia and cognitive decline.

• Life Hack: Check out this roundup of clever tips culled from Reddit over the last year. There are too many good ones to shout them all out. But the simple kitchen trick to protect your eyes while cutting onions is certainly a highlight.

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Links

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Looking Ahead …

The new year will bring a deluge of new album releases, including some by top stars. Billboard has compiled a running calendar of 2024 release dates, with new music from Sheryl Crow, Lenny Kravitz, Jennifer Lopez, Green Day, Usher and others already on deck. 

Question of the Day

Last week's results:

Which Christmas movie would you pick from this list?

It’s a Wonderful Life (47%)

Elf (19%)

Home Alone (19%)

Die Hard (15%)