Morning Brief, Friday, January 4

Iowa Caucuses

SAUL LOEB/AFP/Getty Images

Young Democrats and independent voters powered Barack Obama to a 7-point victory over John Edwards, followed closely by Hillary Clinton. Among Republicans, evangelical voters turned out to give Mike Huckabee a 9-point win over Mitt Romney.

Asia

In Pakistan, all eyes are on former PM Nawaz Sharif. President Pervez Musharraf defended his government Thursday from accusations of complicity in the Bhutto assassination and said she didn’t follow security procedures. British investigators, charged with looking into her death, have arrived in Islamabad.

North Korea’s state newspaper is getting testy: “(We) will further strengthen our war deterrent capabilities in response to U.S. attempts to initiate nuclear war.”

Japan’s Nikkei index fell 4 percent Friday, reaching depths not seen in 17 months. 

Burma celebrated 60 years of independence.

Middle East

Turkish authorities detained four individuals suspected of involvement in Thursday’s bombing in the southeastern city of Diyarbakir.

Iran’s Supreme Leader Ali Khamenei ruled out an immediate resumption of ties with the United States, but left the door open to a future rapprochement.

Palestinian PM Salam Fayyad slammed Israel over its recent raids in Gaza.

Europe

British Council officials are vowing to defy the Russian government and reopen their cultural centers on Jan. 14.

France, set to assume the EU presidency in July, is calling for “diplomacy of the euro.” Whatever that means.

Serbia’s prime minister has presented the EU with an ultimatum: It’s either us or Kosovo. 

Elsewhere

Venezuelan President Hugo Chávez reshuffled his cabinet.

Kenyan police successfully thwarted a major protest by the angry opposition, which vowed to try again today.

Citing “philosophical differences,” Intel has withdrawn from the One Laptop Per Child project.

Today’s Agenda

• U.S. President George W. Bush will meet with Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke to discuss possible stimulus measures for the teetering U.s. economy.

Yesterday on Passport

• The top 10 foreign policy gaffes from the campaign trail
• Have Ugandan troops entered Kenya?
• The Iranian solution