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South Korea urges reconciliation with North
The South Korean president is calling on North Korea’s new leader to take the opportunity to return to negotiations after the death of his father Kim Jong-il. President Lee Myung-bak said South Korea would be willing to help the North under the right circumstances: “We hope there will be a turning point to solve North Korea’s nuclear problem this year. As soon as North Korea suspends nuclear activities in progress, six-party talks should be able to resume.” People in North Korea continue to pay their respects to the former leader Kim Jong-il, two days after his state funeral. Analysts say it is unlikely the policies of the North will change significantly under his son. At 27, Kim Jong-un is seen as lacking experience, and is already showing signs of ruling the reclusive state in the same manner as his father. North Korea walked out of talks on nuclear disarmament in 2008 after objecting to what it viewed as intrusive inspections of its atomic facilities. More about: Kim Jong-il, Kim Jong-un, North Korea, Nuclear weapons, South Korea

Spain’s King makes plea for unity as he opens parliament
King Juan Carlos of Spain has called for unity and commitment from politicians to get the country through its worst financial crisis in decades. The appeal came as he officially opened the Spanish parliament in Madrid. The King and other royals received a standing ovation as they entered the chamber. It was the first parliamentary session since Mariano Rajoy took over as prime minister. Rajoy’s government has a mammoth task on its hands when it comes to getting Spain’s economy back on track. “I am sure the representatives will know how to work together to solve the conflicts and problems we will face,” King Juan Carlos said, as he addressed parliament. “We have to trust in ourselves, we will also have to transmit that confidence to citizens.” The King’s appearance came as a fraud investigation continued to engulf his son-in-law. Inaki Urdangarin is accused of siphoning off funds from public contracts, awarded to a non-profit organisation he headed up between 2004 and 2006. He denies the allegations. More about: Economy, Financial Crisis, Mariano Rajoy, Parliamentary debate, Spain

Suspected Mexican drug cartel head captured
Police in Mexico have arrested the suspected leader of the “La Linea” drug cartel. Arturo Bautista was picked up in the northern city of Ciudad Juarez, close to the US border. La Linea is the armed wing of the notorious Juarez cartel. In 2006, the army was sent into Ciudad Juarez as part of the Mexican government’s crackdown on drugs. The city lies south of the US city of El Paso, Texas and is a key transport route for billions dollars of drugs entering America. More than 7,000 murders have been reported in Ciudad Juarez over the last three years. In total, across Mexico, some 46,000 people have keen killed in drug related violence since 2006. More about: Arrest, Drug trafficking, Mexico

The Syrian League returns
Arab League peace monitors arrived in the Syrian city of Homs on Tuesday, to see for themselves the extent of the clashes there between the army and protesters. And while the violence has turned parts of Homs into a war-zone that could lead to civil war, the Syrian football league has resumed in Damascus. The championship was put on hold in April and according to the country’s Football Association, this decision was taken to allow national and junior teams to attend other tournaments. More about: Bashar al-Assad, Football, Syria

Turkey and Russia reach deal over gas pipeline
Turkey has reached agreement with Russia to allow a pipeline to be built under the Black Sea to transport Russian gas to Europe. The deal, removing a major obstacle to the South Stream project, was signed in Moscow after talks involving both countries’ governments and energy companies. It follows prolonged deadlock between Russia and Turkey over the proposed route which runs through Turkish territorial waters. Due for completion in 2015, South Stream is seen as a rival to the EU-backed Nabucco pipeline which is set to ship gas from the Caspian region to Austria. Vladimir Putin had declared that South Stream – which also involves Italian, French and German companies – could avoid Turkey by taking an alternative route. Relations have now warmed markedly, the Russian prime minister thanking Turkey over its decision. The EU has said it does not want to block South Stream, but it has admitted it wants to reduce European dependence on imported Russian gas. More about: Ankara, Russia, Transport, Turkey

Iowa kicks off Republican nominations
Republican presidential hopefuls are vying for position ahead of the Iowa caucus on January 3. Front-runner moderate, Mitt Romney is counting on a strong showing that could set him on the path to the nomination and the chance to take on Barack Obama. But at the back of his mind is the fact Iowa helped derail his last run for the presidency four years ago. He has a slight edge over rival Ron Paul whose ability to give Obama a fight has been questioned by his party over his libertarian-leaning, anti-government stance. Coming up into third with a late surge is the little known Christian conservative Rick Santorum. Until recently he was in the second tier of candidates but Iowa is known for giving lesser-funded and organised candidates a chance. Phil Elliott, AP Political Reporter explained: “Iowa doesn’t have a terrific record of predicting winners or losers in this state. Yes, they got Barack Obama right four years ago but they also went with Mike Huckabee. If you take a look back, it really is a mixed bag. Really, though, the elections and caucuses in Iowa serve more to get candidates out of the race than to propel anyone towards a win.” The Iowa vote is followed by primaries in New Hampshire and South Carolina on January 10 and 21. All three are known for political upsets and have subsequently become some of the most watched events in the election process. More about: Republicans, USA presidential elections 2012

Cubans queue for Spanish citizenship
With a worldwide deadline for people living abroad to apply for Spanish citizenship on Tuesday, hundreds of Cubans waited outside the embassy in the capital Havana. Spain has given the opportunity to anyone whose Spanish parents or grandparents left the country during the civil war in the 1930s, and in Cuba where internet access is not freely available, many wanted to make sure they would have the chance. One person trying to take advantage of the offer was teacher Daisy Ramos who explained why it was important for so many Cubans. “Everyone is trying to take advantage of this in order to travel and be able to visit our families; a father, a son, a brother. These are difficult situations, family separation is very difficult,” she said. Spain’s government is trying to address the legacy of exiles who left under the rule of General Franco, and it presents a big opportunity for people living in Cuba where travel restrictions are very tight. More about: Cuba, Freedom of movement and travel, Immigration, Spain

Denmark makes money on safe haven loans
The eurozone’s loss is Denmark’s gain. So desperate are investors to find safe havens away from the eurozone debt crisis that they are paying the Danish government to lend it money. Denmark is offering negative interest rates on some short term government bonds it has just sold saying it is a “flight into safety” with investors more concerned about getting their money back than the interest they can earn. Ove Jensen, head of the debt management department at the central bank, said secondary market rates on the bills had been negative since the bank’s last T-bill auction last month. “(But) this is the first auction we have had with negative interest rates,” he said. “This is proof of investors’ strong confidence in the stabilisation-focused fiscal policy here at home and Denmark’s potential status as a safe haven in a troubled and debt-plagued Europe,” said Nykredit chief economist John Madsen. More about: Denmark, Economy, Euro, Eurozone in crisis, Interest rates

UK’s Prince Philip makes first appearance after operation
The husband of Britain’s Queen Elizabeth has made his first public appearance after a health scare. Prince Philip, who is 90, attended a new year’s day church service near one of the royals’ residences at Sandringham. Philip appeared to be walking comfortably as he went to and from the St Mary Magdalene church, watched by a small crowd of well-wishers. Over Christmas he spent four nights in hospital following an operation for a blocked artery in his heart. More about: British politics, Queen Elizabeth II, Royal families, United Kingdom