Happy Friday and welcome back to the Alley. Here are the early headlines.
At House Speaker John Boehner's request, the fiscal cliff talks now include only him and President Obama, congressional aides say, according to The New York Times.
Foreign aid critic Sen. Rand Paul is ready to make an exception for Israel, Roll Call reports.
Some GOP lawmakers are saying they can stomach a raise in tax rates in exchange for entitlement reform, The Washington Post reports.
ICYMI: Sen Jim DeMint takes a few parting shots at House Speaker John Boehner.