Reuters World News Highlights

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ISLAMABAD – The United Nations will withdraw some of its  staff from Pakistan because of safety concerns, a U.N.  spokeswoman said yesterday, highlighting security threats  posed by increasingly brazen Taliban militants.

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MOSCOW – Russian gas will move via Ukraine without  interruption this New Year as the ex-Soviet states have a  10-year supply deal in place, Russia’s monopoly gas exporter  said yesterday, easing fears in Europe of a repeat gas war.

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ANKARA – Talks between Turkey and the IMF over a possible  stand-by loan arrangement were progressing, a ruling party  official said yesterday, following a newspaper report that  Prime Minister Tayyip Erdogan had told his party leadership that  the Fund had accepted Turkey’s terms.

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REYKJAVIK – Iceland’s president said yesterday he would  delay signing an amended bill to repay more than $5 billion lost  by savers in Britain and the Netherlands when the island’s banks  collapsed.

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– U.S. President Barack Obama faces a long list of  challenges as he returns from his Hawaiian holiday and begins  the new year.

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WASHINGTON – Last week’s failed plot to bomb a U.S.  passenger jet has exposed lingering fissures within the U.S.  intelligence community, which had information from interviews  and clandestine intercepts but did not put the pieces together,  officials said.

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JERUSALEM – Israeli Prime Minister Benjamin Netanyahu has  proposed an Egyptian-hosted summit with Palestinian President  Mahmoud Abbas as a possible way to resume stalled peace talks,  Israeli officials said yesterday.

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JAKARTA – The Indonesian resort island of Bali faces a risk  of attack on New Year’s Eve, a statement issued by the U.S.  Embassy quoted the island’s governor as saying, but the  governor’s office denied making any such comment.