Reuters World News Highlights

BRUSSELS/LONDON – European officials are working on contingency plans in case Greece bombs out of the euro zone, the EU’s trade commissioner said on Friday, as European share prices tumbled and Germany warned of continuing financial turmoil.
– – – –

VIENNA – The U.N. nuclear chief will fly to Tehran on Sunday in an apparent bid to secure a deal enabling his inspectors to probe suspicions of atomic bomb research, a few days before Iran and world powers meet in Baghdad for broader talks on their dispute.
– – – –

MOSCOW – President Vladimir Putin will likely name allies to key economic posts when he unveils his new cabinet on Monday, asserting control over the government in a move that could hamstring reforms backed by his more liberal premier.
– – – –

WASHINGTON – U.S. President Barack Obama pressed Europe on Friday to shift toward a more pro-growth policy and away from austerity to tackle a crisis that threatens to push Greece out of the euro zone and send economic shockwaves worldwide.
– – – –

MANAMA – Tens of thousands of mainly Shi’ite protesters rallied in Bahrain on Friday against proposals for closer ties with other Gulf Arab countries, a plan pushed by Saudi Arabia to contain dissent in Bahrain and counter Iran’s regional influence.
– – – –

JERUSALEM – 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.