Good morning. It’s Thursday, January 8, 2026. Today’s brief opens with Trump’s push for a record $1.5 trillion defense budget, rising tensions between Saudi Arabia and the UAE over a smuggled separatist leader, and new US sanctions aimed at tightening pressure on Russia while Ukraine peace talks continue. Plus, Pakistan and Saudi Arabia explore a fighter-jet swap deal, Canada prepares a rare diplomatic trip to China, and Australia launches a national inquiry after the Bondi Beach attack.
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Trump Proposes $1.5 Trillion Defense Budget, Threatens Contractors Over Performance
US President Donald Trump on Wednesday proposed raising US military spending to $1.5 trillion in 2027, citing global instability and recent US military actions, including the operation to capture Venezuelan leader Nicolás Maduro.
The proposal would represent a sharp increase over the projected $901 billion defense budget for 2026 and comes as US forces remain deployed in the Caribbean and as Trump signals a more aggressive national security posture abroad.
Trump said higher tariff revenues justify the increase, though critics note those funds fall short of covering the administration’s broader spending promises.
Alongside the proposal, Trump threatened to cut Pentagon business with defense contractors, particularly Raytheon, unless they halt stock buybacks and invest more in weapons production capacity.
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US Navy Leaders Signal Ingalls’ Key Role in Trump’s Golden Fleet Push
Senior US Navy and Marine Corps leaders toured Ingalls Shipbuilding in Pascagoula, Mississippi, on Wednesday, highlighting the shipyard’s capacity to help build US President Donald Trump’s planned “Golden Fleet” of advanced warships.
Secretary of the Navy John Phelan, Chief of Naval Operations Admiral Daryl Caudle, and Marine Corps Commandant General Eric Smith said Ingalls has the workforce, facilities, and quality standards needed to rapidly produce next-generation frigates and potentially future battleships.
The visit underscored the administration’s push to expand the maritime industrial base, speed ship production, and deliver modern vessels designed to last decades.
Ingalls Shipbuilding hosted the Secretary of the Navy and other top military leaders Wednesday and showed them the shipyard has the capacity and workforce to build a share of the nation’s Golden Fleet.https://t.co/bPGXD4zR2n
— Stars and Stripes (@starsandstripes) January 8, 2026
Officials stressed that labor shortages remain the biggest constraint, even as Ingalls prepares to deliver its first new FF(X) frigate by 2028 under an accelerated timeline tied to national security priorities.
Trump Backs Sweeping Russia Sanctions as Peace Talks With Ukraine Continue
US President Donald Trump has approved a tough new sanctions bill targeting Russia as his administration continues negotiations to end the war in Ukraine, according to lawmakers and the White House.
Senator Lindsey Graham said Trump gave the green light during a meeting on Wednesday, confirming support for legislation designed to cut off Moscow’s economic lifelines by imposing tariffs and secondary sanctions on countries that buy Russian energy and other exports.
Senator Lindsey Graham says President Trump has given the green light to a bipartisan sanctions bill against Russia. Graham said the bill, developed with Senator Blumenthal, would empower the U.S. to penalize countries buying cheap Russian oil that fuels Putin’s war. He says it… pic.twitter.com/ujKKYfiNTB
— NOELREPORTS 🇪🇺 🇺🇦 (@NOELreports) January 8, 2026
The bipartisan bill, co-written by Graham and Senator Richard Blumenthal, aims to weaken Russia’s ability to finance its war nearly four years after its invasion of Ukraine.
A Senate vote could come as early as next week, though the timing remains uncertain amid other legislative priorities.
Trump Orders US Exit From Dozens of Global Bodies
US President Donald Trump on Wednesday signed an executive order withdrawing the United States from 66 international organizations, including the United Nations population agency and the treaty underpinning global climate negotiations, marking a major pullback from multilateral cooperation.
The decision follows an administration review that concluded the organizations were mismanaged, wasteful, or conflicted with US sovereignty and policy priorities, according to the White House and Secretary of State Marco Rubio.
The withdrawals target many UN-affiliated bodies focused on climate, labor, migration, and development, as well as several non-UN groups, and build on earlier US exits from agencies such as the World Health Organization and UNESCO.
📝 US President Donald Trump signs a “Presidential Memorandum” ordering agencies to withdraw from 66 international organizations deemed against American interests
🏛️ White House says exits cover 35 non-UN groups and 31 UN entities, then removes the announcement page shortly… pic.twitter.com/A9C7YmAgI5
— Anadolu English (@anadoluagency) January 7, 2026
Critics warned the move weakens US influence on global issues, especially climate change, while administration officials said Washington will instead selectively engage in institutions where it sees strategic competition with China.
Saudi Arabia Accuses UAE of Smuggling Yemeni Separatist Leader, Deepening Rift
Saudi Arabia on Thursday accused the United Arab Emirates (UAE) of smuggling a Yemeni separatist leader wanted for treason out of Yemen and flying him to Abu Dhabi, sharply escalating tensions between the two former allies.
A Saudi military statement alleged that Aidarous al-Zubaidi, head of the Southern Transitional Council (STC), fled Yemen by boat to Somalia before being flown to the UAE with Emirati assistance.
#Breaking: As I reported earlier, the Coalition’s spokesperson @CJFCSpox 🇸🇦 has just confirmed that the fugitive UAE 🇦🇪-linked terrorist ‘Aidarous Al-Zubaidi’ was ordered by an Emirati intelligence officer to go to Abu Dhabi, where he has now arrived.
Notably, he first fled from… https://t.co/pmVzPwABBl pic.twitter.com/I13YpYwe4U
— Salman Al-Ansari | سلمان الأنصاري (@Salansar1) January 8, 2026
The accusation comes as Saudi Arabia moves against the STC after its forces advanced in southern Yemen and appeared poised to push for secession, prompting Saudi airstrikes and the expulsion of al-Zubaidi from Yemen’s Presidential Leadership Council.
The UAE, a key backer of the STC, did not immediately respond, while the dispute underscores the collapse of Saudi-Emirati coordination in Yemen’s long-running war, a conflict that has killed more than 150,000 people and destabilized a critical region along major global shipping routes.
Pakistan, Saudi Arabia Weigh JF-17 Jet Deal in Swap for $2B in Loans
Pakistan and Saudi Arabia are in talks to convert about $2 billion in Saudi loans into a deal for JF-17 Thunder fighter jets, deepening military cooperation between the two allies, according to Pakistani sources reported by Reuters.
The negotiations come as Pakistan faces severe financial strain and seeks to expand arms exports, while Saudi Arabia looks to strengthen defense ties amid uncertainty over US security commitments in the region.
The proposed deal, potentially worth up to $4 billion including additional equipment, would involve the Pakistan- and China-developed JF-17, a combat-tested and lower-cost aircraft.
🇵🇰🇸🇦 Reuters: Pakistan and Saudi Arabia are holding talks to convert $2 billion in Saudi loans into a deal to purchase JF-17 fighter jets, strengthening military cooperation between the two countries months after they signed a joint defense agreement last year. pic.twitter.com/KcG1agSSOr
— Defence Index (@Defence_Index) January 8, 2026
Talks follow a mutual defense pact signed last year and reflect a long-standing security and financial partnership in which Saudi Arabia has repeatedly supported Pakistan during economic crises.
Canada’s Carney to Visit China as Ottawa Seeks to Cut Reliance on US
Canadian Prime Minister Mark Carney announced on Wednesday that he will visit China next week to meet President Xi Jinping, marking the first trip by a Canadian leader in more than eight years as Ottawa works to diversify trade and reduce dependence on the United States.
The visit, scheduled for January 13 to 17, comes amid strained relations with Washington, including US tariff threats and rhetoric questioning Canada’s sovereignty.
Carney said Canada aims to expand global partnerships, particularly with China, its second-largest trading partner, as more than three-quarters of Canadian exports currently go to the US.
Prime Minister Mark Carney will make an official visit to China next week as his government tries to rebuild relations with the Asian superpower and reduce Canada’s economic reliance on the US. https://t.co/5GdqKaLJTH
— Bloomberg (@business) January 7, 2026
The trip follows years of tense Canada-China relations over arrests, trade disputes, and retaliatory tariffs, but signals renewed efforts by both sides to stabilize ties and address economic pressures facing Canadian exporters.
Australia Launches Royal Commission on Antisemitism After Bondi Mass Shooting
Australian Prime Minister Anthony Albanese announced on Thursday a national royal commission to investigate antisemitism following the deadly shooting at a Jewish holiday event in Sydney’s Bondi Beach that killed 15 people.
The inquiry, led by former High Court Justice Virginia Bell, will examine the scale and causes of antisemitism in Australia, review the circumstances of the Hanukkah attack, and recommend measures for law enforcement, social cohesion, and countering extremism.
Albanese said the attack was an antisemitic terrorist act inspired by the Islamic State group, with a surviving suspect facing murder and terrorism charges.
Joint Media Release PM @AlboMP @Tony_Burke @MRowlandMP : Establishment of Royal Commission on Antisemitism and Social Cohesion https://t.co/1HhAMB4rW2 pic.twitter.com/Pil8n5qu9w
— Department of the Prime Minister and Cabinet (@pmc_gov_au) January 8, 2026
The commission, the country’s highest level of public inquiry, will report by December 14, one year after the shooting, as the government also moves to strengthen gun laws and curb hate speech.
Sources: News Agencies