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Wednesday, May 2, 2012 8:30 PM PDT

Today's Reuters World News Headlines - Yahoo! News: Australia delays F-35 plane orders to aid budget Malaysia mosque a source of hope for heroin addicts Chinese dissident seeks exile, strains U.S.-China ties Britain's Osborne hits out as EU bank capital talks stall Clinton urges China to help on Iran, North Korea China's Hu says U.S., China need to trust each other China sturdy enough for reforms: Geithner China must act urgently to curb city emissions: World Bank News Corp board supports Murdoch after UK report China dissident Chen says wants to leave for U.S. Arbitrators appointed for Air Canada labor disputes Obama's top security adviser to travel to Russia Sarkozy fails to down Hollande in French vote duel China-U.S. deal over dissident sours, Chen fears for life Libya drops ban on religion-based parties World Bank also aids developed countries: Zoellick Bickering, tensions pepper French election debate Once poster child of crisis, Iceland recovers U.N. food index set to ease, inflation fears remain Gingrich pulls plug on "wild ride" White House bid Russia to make hi-tech case against NATO missile shield Canada OKs Ontario's Darlington nuclear expansion Canada says on track to meet budget despite GDP drop News Corp board supports Murdoch after UK report U.N. committee sanctions three North Korea companies Nokia files patent lawsuits against HTC, RIM Argentine lower house starts YPF takeover debate Poland says boycotting Ukraine would push it towards Russia Chinese activist told CNN he wants to leave China Saudi Arabia warns Iran over Gulf islands, Bahrain Iran seeks end to sanctions at talks, hits out at France Russia to make hi-tech case against NATO missile shield Egypt clashes over army rule leave up to 11 dead U.S. says never spoke to Chen about any threats to his family Tunisia jails policemen for revolution deaths Libya drops ban on religion-based parties Sudan says it pumping oil from Heglig field Gunfire in capital as Mali junta hunts "mercenaries" Move over Merkel: German state finds its own "mummy" Sudan says agrees in principle to AU peace roadmap Australia delays F-35 plane orders to aid budget Wed,2 May 2012 08:15 PM PDT Reuters - CANBERRA (Reuters) - Australia will delay orders for its first squadron of Lockheed Martin F-35 joint strike fighters to help with budget savings, the government said on Thursday, in the latest setback for the long-delayed and over-budget international project. Defence Minister Stephen Smith said a decision on when to take delivery of the 12 stealth aircraft would be pushed back two years, putting Australia on the same timetable as the United States, which has also delayed initial purchases. ... Full Story Top Malaysia mosque a source of hope for heroin addicts Wed,2 May 2012 08:07 PM PDT Reuters - KUALA LUMPUR (Reuters) - For 30 years, Feisal Fakharudin lived a heroin addict's life, sleeping on streets, getting into trouble with police and rotating in and out of drug treatment centers. In Malaysia, a Muslim-majority country where drug addiction is still taboo, his habit made him a social outcast until he found support from an unlikely source -- the Ar Rahman mosque nestled in the bustling capital city of Kuala Lumpur. ... Full Story Top Chinese dissident seeks exile, strains U.S.-China ties Wed,2 May 2012 08:00 PM PDT Reuters - BEIJING (Reuters) - Blind Chinese dissident Chen Guangcheng says he wants to leave for the United States rather than stay in China, throwing into doubt a deal used to coax him out of the U.S. embassy in Beijing and defuse a standoff that has strained China-U.S. ties. That standoff appears all the more troublesome for the United States, with Chen saying on Thursday that he feared for his and his family's safety if he stayed in China under an agreement that U.S. officials initially said he was happy with. ... Full Story Top Britain's Osborne hits out as EU bank capital talks stall Wed,2 May 2012 07:47 PM PDT Reuters - BRUSSELS (Reuters) - Britain's George Osborne accused fellow EU finance ministers of trying to water down Europe's bank capital rules and said this would make him "look like an idiot", as talks about a law to stop another financial crisis unraveled in Brussels. In remarks at the negotiating table, Osborne, who says he wants much tougher controls to avoid a repeat of the current crisis, fumed that regulation being discussed could dent the credibility of Europe and harm London, its top financial centre. ... Full Story Top Clinton urges China to help on Iran, North Korea Wed,2 May 2012 07:36 PM PDT Reuters - BEIJING (Reuters) - Secretary of State Hillary Clinton urged China on Thursday to help defuse tension over Iran, North Korea and other global flashpoints, seeking to salvage talks that have been overwhelmed by negotiations over a dissident. In her opening remarks to the two-day U.S.-China Strategic and Economic Dialogue, Clinton pressed China on human rights but avoided mention of Chen Guangcheng, a blind rights activist who sought protection in the U.S. embassy until he left under a deal to stay in China - a deal he later said he regretted. ... Full Story Top China's Hu says U.S., China need to trust each other Wed,2 May 2012 07:05 PM PDT Reuters - BEIJING (Reuters) - China and the United States need to know how to trust each other, Chinese President Hu Jintao said on Thursday at the start of annual U.S.-China talks. The Strategic and Economic Dialogue gets under way in Beijing as China and the United States attempt to resolve a thorny dispute involving the fate of blind Chinese dissident Chen Guangcheng. China has sharply criticized the actions of U.S. diplomats, who sheltered Chen in the U.S. embassy in Beijing. (Reporting by Andrew Quinn and Ben Blanchard; Editing by Don Durfee and Ken Wills) Full Story Top China sturdy enough for reforms: Geithner Wed,2 May 2012 06:58 PM PDT Reuters - BEIJING (Reuters) - Treasury Secretary Timothy Geithner said China is strong enough to handle the economic and financial reforms that the United States seeks. Geithner, who is in Beijing with Secretary of State Hillary Clinton for annual talks with Beijing, said firms in both countries must compete on a level playing field in order for global trade to thrive. But the talks risk being upstaged by the case of blind Chinese dissident Chen Guangcheng, who left protective cover in the U.S. Embassy on Wednesday after having sought refuge there following his escape from 19 months of house arrest. ... Full Story Top China must act urgently to curb city emissions: World Bank Wed,2 May 2012 06:36 PM PDT Reuters - BEIJING (Reuters) - China must act urgently on multiple fronts if it is to cut greenhouse gas emissions from its rapidly expanding cities and hit government targets for curbing carbon intensity, a new report from the World Bank said on Thursday. Cities generate an estimated 70 percent of energy-related greenhouse gases and with China set to increase its number of urban residents by 350 million over the next 20 years, the Bank says the case for urgent action is strong. ... Full Story Top News Corp board supports Murdoch after UK report Wed,2 May 2012 05:52 PM PDT Reuters - (Reuters) - News Corp's board of directors came out in full support of Chief Executive Rupert Murdoch on Wednesday, some 36 hours after a British parliamentary committee had described him as unfit to run a major international business. "The Board based its vote of confidence on Rupert Murdoch's vision and leadership in building News Corporation, his ongoing performance as Chairman and CEO, and his demonstrated resolve to address the mistakes of the Company identified in the Select Committee's report," the company said in a statement following a board meeting. ... Full Story Top China dissident Chen says wants to leave for U.S. Wed,2 May 2012 05:23 PM PDT Reuters - BEIJING (Reuters) - Blind Chinese dissident Chen Guangcheng wants to leave for the United States rather than stay in China, telling Reuters his safety cannot be assured under a U.S.-China deal that had persuaded him to give up refuge in the U.S. embassy in Beijing. Chen left the embassy on Wednesday, where he had taken refuge for six days after escaping house arrest, appearing to be satisfied with a diplomatic solution which would have allowed he and his family to remain in China in better circumstances. ... Full Story Top Arbitrators appointed for Air Canada labor disputes Wed,2 May 2012 04:50 PM PDT Reuters - TORONTO (Reuters) - The Canadian government said on Wednesday it has appointed two arbitrators in a bid to resolve drawn-out labor contract disputes between Air Canada and its pilots and machinists unions. The country's No. 1 airline has seen its profits hurt over the past year by rising fuel costs and a steady stream of feuds with its unions. Its shares, which have fallen nearly 60 percent in the last 12 months, closed on Wednesday at 96 Canadian cents a share on the Toronto Stock Exchange. ... Full Story Top Obama's top security adviser to travel to Russia Wed,2 May 2012 04:46 PM PDT Reuters - WASHINGTON (Reuters) - President Barack Obama's top security aide will be in Moscow this week for meetings with Russian officials on the U.S.-Russia relationship and other issues, the White House said on Wednesday. National Security Adviser Tom Donilon's two-day trip comes ahead of a G-8 leaders' summit the United States is hosting this month as well as an expected White House meeting between Obama and Russian President-elect Vladimir Putin. ... Full Story Top Sarkozy fails to down Hollande in French vote duel Wed,2 May 2012 04:20 PM PDT Reuters - PARIS (Reuters) - French President Nicolas Sarkozy and Socialist Francois Hollande clashed repeatedly in their only television debate but the conservative incumbent failed to land a knockout blow to shake his challenger's lead for Sunday's runoff. Hollande, ahead in opinion polls by six to 10 points, seemed calm and unflappable during the nearly three-hour debate on Wednesday while Sarkozy, struggling to catch up with the moderate social democrat, was often agitated and tense. ... Full Story Top China-U.S. deal over dissident sours, Chen fears for life Wed,2 May 2012 04:19 PM PDT Reuters - BEIJING (Reuters) - Blind Chinese dissident Chen Guangcheng appealed to President Barack Obama to help him escape China with his family, telling journalists he feared for his life just hours after leaving the U.S. Embassy under a deal that Washington had hoped would defuse the crisis with Beijing. Chen left the embassy on Wednesday after securing guarantees that, according to U.S. officials, would have allowed him to relocate within the country in safety with his family and pursue his studies. He had been holed up in the embassy for six days after escaping house arrest last month. ... Full Story Top Libya drops ban on religion-based parties Wed,2 May 2012 03:46 PM PDT Reuters - TRIPOLI (Reuters) - Libya has dropped a ban against parties based on religion, tribe or ethnicity, an official said, after the law irked Islamist parties in the run up to the first free election in June. The ruling National Transitional Council's judicial committee on Wednesday read out a raft of news laws including an amended version of one governing formation of political parties, making no mention of the ban, which was announced last week. ... Full Story Top World Bank also aids developed countries: Zoellick Wed,2 May 2012 03:40 PM PDT Reuters - WASHINGTON (Reuters) - Outgoing World Bank President Robert Zoellick on Wednesday gave an impassioned defense of the institution he has run for five years and urged his successor to focus on developing countries as clients rather than aid recipients. Zoellick said it was in the economic and security interest of rich countries like the United States to continue supporting the World Bank, which provides loans and other assistance to help poor countries to tackle of wide array of problems. ... Full Story Top Bickering, tensions pepper French election debate Wed,2 May 2012 03:32 PM PDT Reuters - PARIS (Reuters) - A televised debate between France's presidential rivals veered repeatedly into schoolyard bickering, with Socialist Francois Hollande mocking Nicolas Sarkozy for having no other defense than to keep calling him a liar. Their body language in Wednesday's late-night showdown also betrayed the rivals' differing stress levels. Hollande, running well ahead in polls, was unflappable and poised while Sarkozy, battling to stave off defeat in Sunday's runoff, seemed twitchy, agitated and on edge. ... Full Story Top Once poster child of crisis, Iceland recovers Wed,2 May 2012 03:24 PM PDT Reuters - GRINDAVIK, Iceland (Reuters) - In this small Icelandic village, sailors are making double their pre-crisis pay, haddock sales to places like Boston and Brussels are booming and unemployment is almost zero - signs of this island's surprisingly rapid rise from the ashes of banking ruin. While much of Europe wallows in recession, the economy of this volcanic island in the mid Atlantic is growing at a clip that has surprised many people, thanks to a currency fall - in which the crown lost almost half its value to the euro - an export and tourism boom as well as growing consumer confidence. ... Full Story Top U.N. food index set to ease, inflation fears remain Wed,2 May 2012 03:09 PM PDT Reuters - MILAN (Reuters) - World food prices are expected to ease in April after three months of rises due to falls in some grain prices, but inflation worries are still simmering as soybean and rice prices climb - fanning fears of hunger and social unrest in poor countries. Record high food prices in February 2011 contributed to protests connected to the Arab Spring uprisings in the Middle East and North Africa last year. ... Full Story Top Gingrich pulls plug on "wild ride" White House bid Wed,2 May 2012 03:07 PM PDT Reuters - ARLINGTON, Virginia (Reuters) - Newt Gingrich ended his run for U.S. president on Wednesday after dazzling in televised debates but slumping to defeat in dozens of Republican primaries under attack from rivals who portrayed him as the consummate Washington insider. The former U.S. House of Representatives speaker, the face of the Republican Party in the mid-1990s, badly trailed front-runner Mitt Romney in polls and his campaign piled up a debt of $4.3 million. ... Full Story Top Russia to make hi-tech case against NATO missile shield Wed,2 May 2012 02:51 PM PDT Reuters - MOSCOW (Reuters) - The United States said on Wednesday it was fully committed to completing an antimissile shield in Europe even as Moscow promised to use computer modeling to show an international conference how the NATO system threatens its security. A dispute over the system has slowed improvements in Russian-U.S. ties and is likely to remain an irritant after Vladimir Putin returns to the Kremlin next week for a six-year presidential term. Washington says the shield, due to be completed in four phases by roughly 2020, is meant to counter a potential threat from Iran. ... Full Story Top Canada OKs Ontario's Darlington nuclear expansion Wed,2 May 2012 02:36 PM PDT Reuters - CALGARY, Alberta (Reuters) - Canada's natural resources minister said on Wednesday he approved Ontario Power Generation's plans for a multibillion-dollar expansion of the Darlington nuclear power station near Toronto, saying the project is not likely to cause adverse environmental impact. The project, which had been vetted by a joint review panel, would add four new reactors generating up to 4,800 megawatts. Government-owned Ontario Power Generation must now seek a site preparation license from the Canadian Nuclear Safety Commission. ... Full Story Top Canada says on track to meet budget despite GDP drop Wed,2 May 2012 02:15 PM PDT Reuters - OTTAWA (Reuters) - The Canadian government is set to meet economic goals laid out in its March budget despite a surprise drop in gross domestic product in February, Finance Minister Jim Flaherty said on Wednesday. Statistics Canada said on Monday that the economy shrank by 0.2 percent in February from January. Analysts were expecting a 0.2 percent month-on-month increase. "I'm very cautious about looking at statistics that relate only to one month ... So far I'm comfortable the indicators that I see (show) that we're on track with our budget expectations," Flaherty told BNN television. ... Full Story Top News Corp board supports Murdoch after UK report Wed,2 May 2012 01:55 PM PDT Reuters - (Reuters) - News Corp's board of directors came out in full support of Chief Executive Rupert Murdoch on Wednesday, some 36 hours after a British parliamentary committee had described him as unfit to run a major international business. "The Board based its vote of confidence on Rupert Murdoch's vision and leadership in building News Corporation, his ongoing performance as Chairman and CEO, and his demonstrated resolve to address the mistakes of the Company identified in the Select Committee's report," the company said in a statement following a board meeting. ... Full Story Top U.N. committee sanctions three North Korea companies Wed,2 May 2012 01:41 PM PDT Reuters - UNITED NATIONS (Reuters) - A U.N. Security Council sanctions committee on Wednesday added three North Korean state companies to a U.N. blacklist of firms banned from international trade in response to Pyongyang's rocket launch last month. The decision by the Security Council's North Korea sanctions committee came after China consented to sanctions on the trio of companies. It falls far short of the roughly 40 firms the United States, European Union, South Korea and Japan had wanted to blacklist after Pyongyang's launch. ... Full Story Top Nokia files patent lawsuits against HTC, RIM Wed,2 May 2012 01:16 PM PDT Reuters - HELSINKI (Reuters) - Wounded cellphone maker Nokia has turned on one of its former allies in the patent protection battlefield by filing lawsuits against rival smartphone maker HTC as it steps up its efforts to raise funds. Nokia, based in Finland, filed several lawsuits in Germany covering 45 hardware and software patents, ranging from power management to data encryption technologies against HTC, Canadian rival Research In Motion and tablet-maker ViewSonic. In the United States it filed against HTC and ViewSonic, including a complaint to the U.S. ... Full Story Top Argentine lower house starts YPF takeover debate Wed,2 May 2012 12:47 PM PDT Reuters - BUENOS AIRES (Reuters) - Argentina's lower house started debating the renationalization of the nation's largest energy company on Wednesday, a measure that is popular at home despite fierce criticism abroad. President Cristina Fernandez angered Spain and other European trade partners last month when she unveiled her plan to expropriate a 51-percent controlling stake in YPF from Spanish oil major Repsol. ... Full Story Top Poland says boycotting Ukraine would push it towards Russia Wed,2 May 2012 12:45 PM PDT Reuters - WARSAW (Reuters) - The West should not boycott Ukraine during the European soccer championship in June as that would hamper its European ambitions and force the ex-Soviet country back into the arms of Russia, Poland's President Bronislaw Komorowski said on Wednesday. Led by Germany, leaders of several European Union countries have called off scheduled visits to Ukraine during the Euro 2012, a tournament co-hosted by Poland that starts in just over a month, in protest against the treatment of imprisoned former prime minister Yulia Tymoshenko. ... Full Story Top Chinese activist told CNN he wants to leave China Wed,2 May 2012 12:33 PM PDT Reuters - (Reuters) - Blind Chinese dissident Chen Guangcheng told a CNN reporter he felt "let down" by the United States after he left the U.S. Embassy for a Beijing hospital on Wednesday, and CNN quoted him as saying he now feared for his life and wanted to leave China. "He wants to leave and he wants to leave as soon as possible. He's made this appeal directly to President Barack Obama himself," a CNN reporter said on air. He said he had spoken to Chen for about 15 to 20 minutes by telephone after Chen was reunited with his wife. Earlier U.S. ... Full Story Top Saudi Arabia warns Iran over Gulf islands, Bahrain Wed,2 May 2012 11:57 AM PDT Reuters - RIYADH (Reuters) - Saudi Arabia repeated on Wednesday that it would not tolerate threats to the Gulf Arab states' sovereignty, the latest warning to Iran after President Mahmoud Ahmadinejad's visit to an island claimed by both Tehran and the United Arab Emirates. The warning, the third in as many weeks by a member of the six-nation Gulf Cooperation Council (GCC), comes amid increased nervousness in the region over Iran. ... Full Story Top Iran seeks end to sanctions at talks, hits out at France Wed,2 May 2012 11:57 AM PDT Reuters - VIENNA/DUBAI (Reuters) - Iran said on Wednesday it would seek an end to sanctions over its nuclear activities at talks with big powers later this month and it sought to turn the tables on its Western foes by accusing France of helping Israel develop "inhumane nuclear weapons". An adviser to Iranian Supreme Leader Ayatollah Ali Khamenei said the negotiations in Baghdad on May 23 should lead to the lifting of punitive measures on Tehran, Iranian media reported. The comments reflect a hardening public line in the Islamic Republic that an end to sanctions is vital to the success of the talks. ... Full Story Top Russia to make hi-tech case against NATO missile shield Wed,2 May 2012 11:54 AM PDT Reuters - MOSCOW (Reuters) - Russia will use computer modelling to show how a missile shield the United States and NATO are deploying in Europe could threaten its security, a senior defense official said in remarks published on Wednesday. A dispute over the system has hampered improvements in Russian-U.S. ties and is likely to remain an obstacle to better relations after Vladimir Putin returns to the Kremlin next week for a six-year presidential term. Washington says the missile defense system, to be installed in four phases by 2020, is meant to counter a potential threat from Iran. ... Full Story Top Egypt clashes over army rule leave up to 11 dead Wed,2 May 2012 11:33 AM PDT Reuters - CAIRO (Reuters) - Eleven people were killed in Cairo on Wednesday, medics said, when armed men attacked protesters demanding an end to army rule, prompting several candidates to suspend presidential campaigns and heightening doubts on the transition to democracy. Leaders from Islamist and secular camps blamed the trouble on hired "thugs" doing the bidding of entrenched interests behind military rule and warned the generals not to use it as a pretext to delay their departure; the army reaffirmed its stated commitment to handing power to civilians by July. ... Full Story Top U.S. says never spoke to Chen about any threats to his family Wed,2 May 2012 10:59 AM PDT Reuters - WASHINGTON (Reuters) - The U.S. State Department sought on Wednesday to counter reports that Chinese dissident Chen Guangcheng may have left the U.S. embassy in Beijing because of physical or legal threats to his family, saying that it never discussed any such threats with him. "At no time did any U.S. official speak to Chen about physical or legal threats to his wife and children. Nor did Chinese officials make any such threats to us," State Department spokeswoman Victoria Nuland said in an emailed statement. "U.S. ... Full Story Top Tunisia jails policemen for revolution deaths Wed,2 May 2012 10:49 AM PDT Reuters - TUNIS (Reuters) - A Tunisian court has jailed two policemen for 20 years each for killing a protester last year, a judicial source said, in the first punishment meted out to security officials over their crackdown on the revolution that ousted Zine al-Abidine Ben Ali. The court also fined the police officers 80,000 dinars ($60,000) each for their role in the death of Salim al-Hadhary, the source said. The money will go to the victim's family. ... Full Story Top Libya drops ban on religion-based parties Wed,2 May 2012 10:37 AM PDT Reuters - TRIPOLI (Reuters) - Libya has dropped a ban against parties based on religion, tribe or ethnicity, an official said, after the law irked Islamist parties in the run up to the first free election in June. Members of the ruling National Transitional Council's judicial committee on Wednesday read out an amended version of a law governing the formation of political parties, making no mention of the ban, which was announced last week. ... Full Story Top Sudan says it pumping oil from Heglig field Wed,2 May 2012 10:30 AM PDT Reuters - El-Tayeb Siddig HEGLIG, Sudan (Reuters) - Sudan said on Wednesday the Heglig oilfield, scene of intense fighting with South Sudan last month, has been repaired and has started pumping the oil that is the lifeblood of the north's economy. The two countries have been embroiled in weeks of fighting along their 1,800 km (1,200 mile) border, threatening to tip the region, which sits on one of Africa's most significant oil deposits, into a full-blown conflict. ... Full Story Top Gunfire in capital as Mali junta hunts "mercenaries" Wed,2 May 2012 10:25 AM PDT Reuters - BAMAKO (Reuters) - Gunfire rang out in Mali's capital Bamako on Wednesday in the third day of clashes between the military junta and soldiers loyal to the ousted president, forcing residents to flee. A Malian security source told Reuters the junta's troops were asking people to leave their buildings as they searched for loyalist fighters, including suspected foreign mercenaries, who had mounted a counter-coup attempt. "We're looking for red berets," yelled one junta soldier, before firing his rifle into the air. ... Full Story Top Move over Merkel: German state finds its own "mummy" Wed,2 May 2012 10:23 AM PDT Reuters - BERLIN (Reuters) - A potential rival to conservative German Chancellor Angela Merkel could spring to national prominence later this month if she clinches victory for the Social Democrats (SPD) in a major regional election. Polls indicate Hannelore Kraft, 50, a tram-worker's daughter with a ready smile and common touch, will win the closely-watched May 13 vote in North Rhine-Westphalia (NRW) and be re-elected premier of Germany's most populous state. ... Full Story Top Sudan says agrees in principle to AU peace roadmap Wed,2 May 2012 10:18 AM PDT Reuters - KHARTOUM (Reuters) - Sudan's Foreign Ministry said on Wednesday it had agreed "in principle" with a seven-point roadmap drafted by the African Union to end its festering conflict with neighboring South Sudan. In a statement, it said Foreign Minister Ali Ahmed Karti had sent a letter voicing Khartoum's tentative assent to African Union Commission chief Jean Ping. No details were given. ... Full Story Top

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