Frontpage: Tuesday, Jan. 3

- Panetta Set to Slash Pentagon Budget: The Defense Secretary plans to unveil a shrunken budget this week, part of a deal to cut $450 bil from military spending.
- Newt: Romney’s a Big Liar: There goes the “no negative campaigning.” Gingrich is in 4th place in the latest Iowa polls.
- Taliban Confirms Qatar Peace Talks: The Taliban in Afghanistan has announced that it plans to open a political office in Qatar in order to hold talks with the U.S.
- Murdoch Supports Santorum on Twitter: After a few mistakes on the microblogging site, Murdoch successfully used his account to support Rick Santorum on Monday night, saying it was “good to see santorum surging in Iowa.”
- Arab League Calls for Syria Ceasefire: “Gunfire should be stopped and there are snipers,” said Nabil Elaraby, secretary-general of the Arab League.
Photo: President Barack Obama and First Lady Michelle Obama return from Christmas vacation in Hawaii with their daughters Sasha (2nd L) and Malia (R). (Saul Loeb, AFP / Getty Images)

