G8 leaders look to head off euro zone crisis »

WASHINGTON (Reuters) - Leaders of major industrial economies meet this weekend to try to tackle a full-blown crisis in Europe where fears are growing that Greece could leave the euro zone bloc, threatening the future of the common currency. President Barack Obama, the G8 host, has urged European leaders repeatedly to do more to stimulate growth, fearing contagion from the euro crisis that could hurt the U.S. economy and his chances of re-election in November. ...

Iran may seek "tactical gain" with U.N. nuclear deal »

VIENNA (Reuters) - Iran and the U.N. nuclear watchdog are making headway towards a framework deal on how to tackle concerns about its atomic activity, diplomats say, a potential bargaining chip for Tehran in next week's negotiations with world powers. Iran says such an agreement is needed before it can consider a request by U.N. inspectors to visit the Parchin military site where they believe explosives tests relevant for developing nuclear weapons may have been carried out. ...

Exclusive: Drugmakers weigh emergency supply plan for Greece »

LONDON (Reuters) - International drugmakers are working with European authorities on emergency plans to keep medicines flowing into Greece if the country crashes out of the euro. Discussions have intensified in recent days, according to industry sources, and manufacturers are looking closely at the experience of Argentina's collapse in 2002, when some firms agreed to continue to supply medicines without payment for a period of time. ...

Banks' rising bad loans add to Spanish troubles »

MADRID (Reuters) - Spanish bank bad loans rose in March to their highest in 18 years, figures from the Bank of Spain showed on Friday, underscoring the problems facing the government as it attempts to clean up the sector and get its economy back on track. The Bank of Spain said bad loans rose to 8.37 percent of the banks' outstanding loans, the highest since August 1994 and up from 8.3 percent in February, which was also revised higher. The data came as Spain was set to name independent auditors to assess how much cash its banks are likely to need to rebuild their balance sheets. ...

Small-town don makes awkward ally for Serb liberals »

JAGODINA, Serbia (Reuters) - There's a fluffy toy tiger in the office of Jagodina's mayor, another cast in gold on his desk, and at least one more in his trophy cabinet. When Dragan Markovic, known by his nickname Palma (palm tree), opened a zoo five years ago in the central Serbian town he runs, he called it Tiger Zoo, a bit like his kick-boxing club, Palma's Tigers. ...

U.S. firms eye Myanmar as sanctions suspended »

WASHINGTON/HONG KONG (Reuters) - The suspension of U.S. sanctions barring investment in Myanmar in response to political reforms in the poor Southeast Asian state opens the door to U.S. firms queuing to scout for business in one of the last frontier markets. U.S. firms are expected to join those from Asia and Europe that have already moved into a market of up to 60 million people in the former British colony. Analysts and experts have said there will be opportunities for foreign companies across the industrial landscape - from energy, mining and construction to agriculture, finance and ...

Poll shows Greece electing pro-bailout government »

ATHENS (Reuters) - Greek voters are returning to the establishment parties that negotiated its bailout, a poll showed on Thursday, offering potential salvation for European leaders who say a snap Greek election next month will decide whether it must quit the euro. The poll, the first conducted since talks to form a government collapsed and a new election was called for June 17, showed the conservative New Democracy party in first place, several points ahead of the radical leftist SYRIZA which has pledged to tear up the bailout. ...

Palestinians see settlements thwarting state »

JERUSALEM (Reuters) - Surrounded by aides, including one whose only task seems to be light his cigarettes, Mahmoud Abbas sits in a vast presidential office and speaks of his ambition to create a Palestinian state. But outside his sprawling compound on the hills of the West Bank town of Ramallah reality on the ground is different - his dream is being built over by ever-expanding Jewish settlements. ...

Syria's Assad: Nations that sow chaos will suffer »

AMMAN (Reuters) - Syrian President Bashar al-Assad said on Wednesday that countries trying to "sow chaos" in Syria could be infected with it themselves, an apparent warning to Arab Gulf nations that back the insurgency aimed at forcing him from power. Assad's remarks, to a Russian TV channel, came after U.N. staff monitoring an increasingly shaky ceasefire were caught up in an attack that killed at least 21 people, and had to spend a night with rebel forces. ...

Baghdad market bombs kill at least four »

BAGHDAD (Reuters) - Three roadside bombs ripped through a Baghdad marketplace on Friday, killing at least four people and injuring at least 30 more near one of the capital's main Shi'ite neighborhoods, police and hospital sources said. The almost simultaneous blasts in Ma'amil, near the Sadr City district in eastern Baghdad, occurred in the early morning when there were few people attending the outdoor market that sells birds, witnesses said. "The three bombs exploded almost at the same time. ...

Top Israel court tightens enforcement of equal pay »

Israeli feminists on Friday welcomed a Supreme Court ruling they say will help enforce equal pay laws for men and women.

Divided but peaceful 2 years after Thai violence »

Just two years ago, Thailand was at war with itself. Rifle shots and exploding grenades rang out in Bangkok as troops crushed through barricades to disperse a nine-week-old insurrection. A retired nurse was the last to capitulate.

UN: Monitors alone cannot end Syria bloodshed »

The head of a U.N. observer team in Syria cautioned Friday that the mission cannot achieve a permanent end to the violence without genuine talks between the two sides that have been locked in a violent conflict for more than a year.

French autistic kids mostly get psychotherapy »

In most developed countries, children with autism are usually sent to school where they get special education classes. But in France, they are more often sent to a psychiatrist where they get talk therapy meant for people with psychological or emotional problems.

China sentences fugitive smuggler Lai to life term »

The man once considered China's most-wanted fugitive was sentenced to life in prison for smuggling and bribery in a lurid corruption case that reached into the highest echelons of the Communist Party and involved a decade-long extradition fight.

Peru's famed hostage raid investigated »

Peruvians traumatized by years of guerrilla violence cheered in 1997 when government troops raided the Japanese ambassador's residence to rescue hostages held for 126 days by leftist rebels.

Spanish stocks focus of investor concern »

The level of bad loans on the books of Spain's banks has risen to an 18-year high, the country's central banker reported Friday, increasing concern for the stability of Spain's financial sector and the country's place in the fragile eurozone economy.

French leader faces likely NATO ire on Afghanistan »

For President Barack Obama's relationship with France, it's out with "Sarkozy the American" and in with Francois Hollande the Socialist.

Imprisoned star of 'Reality' impresses at Cannes »

The breakout performance of the Cannes Film Festival so far is Aniello Arena's turn as a Naples fishmonger who becomes obsessed with appearing on a "Big Brother"-style TV show in "Reality."

Filipino Christian group protests Lady Gaga shows »

Scores of Christian youths in the Philippines chanted "Stop the Lady Gaga concerts" at a rally Friday calling for the pop diva's shows here to be canceled despite assurances from authorities that they won't allow nudity and lewd acts.