US shoots down Iranian drone

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Daily Briefing

By Kate Turton

Hello. The US shoots down an Iranian drone approaching its aircraft carrier, a new arms race looms as the clock ticks down on the last Russia-US nuclear treaty, and global software stock selloff deepens amid growing concerns about AI.

Plus, meet Penny, the winner of this year's Westminster dog show.

Today's Top News

The USS Abraham Lincoln. REUTERS/Mike Blake/File Photo

The US has shot down an Iranian drone it says aggressively approached of its aircraft carriers. A few hours after that incident, a US-flagged vessel was approached by Iranian speedboats ordering it to stop. It sped away under a US destroyer escort. Listen to Idrees Ali share more details on both incidents on the Reuters World News podcast.
Israeli tank shelling and airstrikes killed 20 Palestinians including four children in Gaza, health officials said, the latest violence to undermine a truce in the enclave.
President Donald Trump and Colombian President Gustavo Petro said they had a cordial meeting in their first face-to-face encounter, defying the fears of some analysts and advisers who questioned whether the two would get along.
Trump signed a spending deal into law that ends a partial US government shutdown and gives lawmakers time to negotiate potential limits on his immigration crackdown.
State prisons in the United States became more violent and nearly 50% deadlier over the past five years as authorities struggled to keep enough guards on the job, according to a government-funded report.
Ukrainian and Russian negotiators began a second round of US-brokered talks in Abu Dhabi, seeking to advance efforts to end Europe's biggest conflict since World War Two.
Spanish and Portuguese authorities braced for the impact of Storm Leo, suspending classes in some areas and warning against travel, just one week after deadly Storm Kristin wreaked havoc across the Iberian Peninsula.
Greenland, the coveted Arctic island, experienced its warmest January on record this year, as a rate of warming four times faster than the global average redraws the outlook for sectors from fishing to mining.

Business & Markets

The deep selloff in global software stocks entered a second day, reflecting growing concerns about how advances in artificial intelligence might impact these companies' livelihoods. Listen to our Morning Bid podcast for more on this story.
Walmart became the first retailer ever to hit $1 trillion in market valuation, riding on a year-long rally that has seen its shares rise nearly 26%, placing it among the ranks of Big Tech heavyweights such as Nvidia and Alphabet.
Seventy-five years ago, the idea of harnessing the power of the skies was little more than fantasy spun by futurists like Arthur C. Clarke and Isaac Asimov. Elon Musk's mega-merger of his companies xAI and SpaceX this week brings this sci-fi dream a step closer.
Prime Minister Sanae Takaichi should not count on the Bank of Japan's help in taming sharp bond yield rises given the huge cost of intervention, including the significant risk of igniting unwelcome yen falls, sources say.
Novo Nordisk's shares tumbled as much as 20% as the Danish obesity drug giant warned it would face "unprecedented" price pressures in 2026.
Ford and China's Geely are in discussions about a potential partnership, eight people with knowledge of the ongoing talks said, as the world's carmakers look to share heavier technology and manufacturing costs.
China warned Panama there would be "heavy prices" to pay after a court ruling there annulled Hong Kong-based CK Hutchison's contract to operate two ports at the Panama Canal.

New arms race looms as clock ticks down on last Russia-US nuclear treaty

Barack Obama and Dmitry Medvedev, who were then and Russian presidents, sign the new Strategic Arms Reduction Treaty in Prague, April 8, 2010. REUTERS/Jason Reed/File Photo

The last nuclear treaty between Russia and the United States is due to expire within hours, raising the risk of a new arms race in which China will also play a key role.

The web of arms control deals negotiated in the decades since the 1962 Cuban Missile Crisis, considered the closest the world ever came to intentional nuclear war, was aimed at reducing the chance of a catastrophic nuclear exchange.

Unless Washington and Moscow reach a last-minute understanding of some kind, the world's two biggest nuclear powers will be left without any limits for the first time in more than half a century when the New START treaty expires.

Read more

And Finally...

Penny after winning the 'Best in Show' competition at the 150th Westminster Kennel Club dog show in New York City, February 3, 2026. REUTERS/Shannon Stapleton

Penny, a 4-year-old Doberman pinscher, won Best in Show at the Westminster Kennel Club dog show, capturing the most prestigious dog show prize in the United States.

Penny cut a majestic stance in the final round of judging, when the finalists of seven groups competed at New York City's Madison Square Garden.

Read more

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