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Daily Briefing

Iran vows revenge after the biggest attack since the 1979 revolution, Israel focuses assault on southern Gaza amid concerns over spread of the war, and North Korea moves to redefine relations with the South.

Plus, an exclusive report on Russian hackers inside a Ukrainian telecoms giant.

By Edson Caldas

Today's Top News

The scene of explosions during a ceremony held to mark the death of late Iranian General Qassem Soleimani. WANA via REUTERS

ALL EYES ON THE MIDDLE EAST

Iran's elite Revolutionary Guards and First Vice President Mohammad Mokhber vowed revenge for explosions that killed nearly 100 people. No one claimed responsibility for the blasts. A senior US official said it appeared to represent "a terrorist attack" of the type carried out in the past by Islamic State militants.
Israeli shelling killed 14 Palestinians this morning in a southern coastal area of Gaza packed with people who had fled attacks in other parts of the enclave, local officials said. Concerns that the war was spreading beyond Gaza are heightened after a drone strike killed a Hamas leader in Lebanon.
Members of the U.N. Security Council called on Yemen's Houthis to halt their attacks on shipping in the Red Sea and Gulf of Aden, saying they are illegal and threaten regional stability, freedom of navigation and global food supplies. Ocean freight rates are surging after new attacks.

UKRAINE WAR

Russian hackers were inside Ukrainian telecoms giant Kyivstar's system from at least May last year in a cyberattack that should serve as a "big warning" to the West, Ukraine's cyber spy chief told Reuters. The hack knocked out services for some 24 million users for days from Dec. 12.
Ukraine and Russia announced their first exchange of prisoners of war in nearly five months, with more than 200 freed by each side after what both said was a complex negotiation involving mediation by the United Arab Emirates. Follow the latest on the conflict.

IN OTHER NEWS

Thousands of rescuers in Japan are racing against time to find survivors of an earthquake that killed at least 81 people. In more news from the country, Japan Airlines said it expected losses of more than $100 million after one of its planes was destroyed when it collided with another aircraft at Tokyo's Haneda airport.
Former Paralympic star Oscar Pistorius will be released from prison on Friday after he was granted parole nearly 11 years after killing his girlfriend Reeva Steenkamp. On today's Reuters World News podcast, Correspondent Bhargav Acharya outlines the process of his release.
Former Harvard President Claudine Gay said in a New York Times opinion piece that she received emailed death threats and was called the "N-word" countless times prior to resigning following her congressional testimony on antisemitism and plagiarism allegations.

Business & Markets

Carrefour is telling customers in France it will no longer sell PepsiCo products like Pepsi, Lay's crisps and 7up because they had become too costly, in the latest tug-of-war over prices between retailers and global food giants.
Rocket and satellite maker SpaceX was accused by a US labor agency of unlawfully firing eight employees for circulating a letter calling founder and CEO Elon Musk a "distraction and embarrassment."
Activist hedge funds ValueAct Capital and Blackwells Capital moved to back Disney as the company defends itself against a board challenge from a third activist investor, Trian Fund Management.
China's services activity expanded at the fastest pace in five months thanks to a solid rise in new business, a private-sector survey showed, lifting the degree of optimism in the sector to a three-month high.
The contraction in euro zone business activity continued at the end of 2023 due to a persistent downturn in the dominant services industry, a survey showed, indicating the bloc's economy was in recession.

In threatening shift, North Korea moves to redefine relations with South

A soldier stands guard in the demilitarized zone separating the two Koreas. REUTERS/Kim Hong-Ji

North Korea is enacting changes to policy and government organizations that would treat South Korea as a separate, enemy state. Analysts say the moves could have North Korea's foreign ministry taking over relations with the South, and potentially help justify the use of nuclear weapons against Seoul in a future war.

Read the analysis.

And Finally...

Global interest in Elvis is undimmed 46 years after he died. Elvis Presley Enterprises LLC/Handout via REUTERS

Elvis Presley fans who missed out on seeing their hero when he was alive will be able to catch a glimpse of the King of Rock 'n' Roll perform later this year, thanks to virtual reality. Elvis Evolution will use AI and holographic projection, augmented reality and live theatre to recreate events in Presley's life and music.

Read more here: AI Elvis to make virtual reality comeback in London show

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