Manhunt for Berlin attacker stepped up, Turkey-Russia vow on detente, China pollution

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The manhunt resumed in Berlin for the attacker who drove a truck into a crowded Christmas market on Monday evening, killing at least 12 people and injuring 48 others. Citing insufficient evidence, authorities released the suspect, a Pakistani asylum seeker,  who they arrested in the immediate aftermath of the killings.

German Chancellor Angela Merkel said she was “shocked, shaken and deeply saddened” by the attack, which is the worst terror incident in Germany since the country began welcoming large numbers of refugees in 2015. Speaking at the chancellery on Tuesday morning, an ashen-faced Ms Merkel told reporters that it would be “particularly sickening” if it turned out the attacker was an asylum seeker.

The attack raises the re-election stakes for Ms Merkel, who is closely associated with her policy to sharply increase the number of migrants Germany welcomed last year. Ms Merkel’s critics have already seized on the tragedy to lambast her. (FT, WaPo)

In the news

Turkey-Russia detente After a Turkish policeman shot dead the Russian ambassador to Turkey on Monday, Russia and Turkey said their rapprochement would not be blown off course. The assassination has tested an often tense and volatile relationship between the two countries. A photographer who was present at the exhibition where the ambassador was killed captured the chaotic scene. (FT)

IMF backs Lagarde The International Monetary Fund has stood by managing director Christine Lagarde, who was found guilty of negligence in public office by a special Paris court on Monday. Despite the IMF board’s decision to retain her as chief, the conviction casts an unwelcome shadow that could undermine the IMF’s authority. (FT)

China’s airpocalypse The Chinese government has shut schools, restricted road traffic, and temporarily shut factories in some northern Chinese cities to reduce pollution during China’s most severe air pollution bout this year. On Tuesday authorities cancelled flights and closed some highways in emergency measures to cut down on air pollution during the national smog red alert. (FT, Guardian, AP)

Chinese and Indian GDP figures tell a story, just not a true one China is livid at India’s change in GDP data reporting, but many also question Beijing’s calculations. Is it time to ditch official GDP figures and focus more on raw data? (NAR)

Israeli billionaire detained Beny Steinmetz, the Israeli billionaire at the centre of an international investigation into alleged bribery to win African mining rights, was arrested on Monday on suspicion of bribing a foreign official. Listen to the FT’s podcast series: The Steinmetz affair. (FT)

Transgender rights flashpoint The North Carolina legislature plans to hold a special session on Wednesday to consider fully repealing a contentious law curbing legal protections for lesbian, gay, bisexual and transgender people. The law had led to boycotts by sports teams, businesses and entertainers, as public bathrooms become a flashpoint in the battle over transgender rights in the US. (NYT, BBC)

Trump makes it official Donald Trump has won enough electoral votes to become president, despite pressure on electors across the country to reject him. But at least seven electors defied the will of the voters in their states — a number not seen in roughly a century and a half. (WSJ)

It's a big day for

Sweden and Thailand Both countries’ central banks will announce interest rate decisions. The Swedish central bank, the Riksbank, currently remains at -0.5 per cent despite very strong GDP growth and an undervalued currency. (FT)

Food for thought

Democrats, demagogues and despots Demagogues have exploited populations’ fear and anger elsewhere. With both emotions having played centre stage in the UK and US this year, the FT’s Martin Wolf suggests it would be foolish to presume western democracies are immune to the same risks. (FT)

Black and blue African American police officers play a complex role in the US, where law enforcement and the black community have always had a fraught relationship. That role has become even more complicated after a slew of recent police shootings of black people around the country. (FT, Guardian)

Opioids go global With the US in the middle of an opioid epidemic that has killed more than 200,000 people, the makers of OxyContin, an opioid, are pursuing a new strategy: getting their pills into medicine cabinets around the world. The company is opening factories and running marketing campaigns in Asia, South America, and Africa, including training doctors to prescribe opioids to their patients. (LATimes)

Question marks over drones Amazon Prime Air, the company’s drones programme, could solve the “last mile” challenge in the delivery chain, believes founder Jeff Bezos. The critical question is whether we will ever allow the mass use of commercial drones over populated areas. (FT)

Train-crash Brexit So which is it to be: “hard” or “soft” Brexit? Maybe neither. The FT’s Gideon Rachman suggests a third possibility that is little discussed but increasingly likely: the “train-crash Brexit”. (FT)

Do women make better doctors? Female physicians earn less than male doctors, but may deliver better healthcare for patients, according to a study in JAMA Internal Medicine. Researchers from Harvard University found that elderly Medicare patients treated by women had a 4 per cent lower risk of dying prematurely and a 5 per cent lower risk of being readmitted to a hospital within 30 days compared with the patients cared for by male doctors. (Vox)

Video of the day

Markets outlook for 2017 The FT’s Roger Blitz and Luca Paolini, chief strategist at Pictet Asset Management, discuss what to watch for in markets in the coming year. (FT)