The Economy & The Fiscal Cliff
• U.S. stocks increase in first day of 2013 trading following "cliff" deal
• With "cliff" deal reached, House members turn attention to Sandy bill
• Despite deal reached, budget fights anticipated over next coming months
• LIVE COVERAGE: Latest political news from Reuters
HASSAN SHAMI, Iraq Servicemen from the U.S.-led coalition were seen near the front line of a new offensive in northern Iraq launched on Sunday by Kurdish peshmerga forces that aims to retake a handful of villages from Islamic State east of their Mosul stronghold.