Mideast- Palestinian leader Mahmud Abbas urged Israel to stop all its settlement activity in the West Bank if it was serious about peace as the evacuation of settlers from Gaza was put on hold for the Jewish sabbath. Vatican Pope Benedict XVI called on Muslim leaders to fight the rancour and intolerance which he said was at the root of the terrorist violence seeking to poison ties between Christians and Muslims. Mideast Mahmud Abbas confirmed that the second ever Palestinian legislative elections are to be held in January next year, paving the way for an electoral showdown between his mainstream Fatah movement and the Islamists of Hamas. Iraq Kurdish leaders offered to compromise over Iraq's constitution but rejected Islam as the main source of law in the new charter, even as the United States dropped its opposition to a strong role for religion. US New legal troubles loomed for US pharmaceutical giant Merck and Co. after a Texas jury found it guilty in a wrongful death case brought by the widow of a man who died after using its blockbuster arthritis painkiller Vioxx. Bangladesh Bangladesh was hit by a nationwide strike called by the opposition to protest at a wave of bombings earlier in the week linked to an Islamic extremist group. Russia-China The first ever large-scale Sino-Russian war games moved on to Chinese soil with elite troops from the two former adversaries taking part, state media reported. Japan Riding on strong public support, Japan's Prime Minister Junichiro Koizumi launched his campaign for elections that will hinge on his plan to privatize the powerful post office -- effectively the world's biggest financial institution. Britain Police in London modified slightly a shoot to kill policy after its first use last month took the life of an innocent Brazilian man, mistaken for a suicide bomber, Scotland Yard confirmed. Greece Six days after the worst air crash to occur on Greek soil, Greek investigators have taken a step closer to piecing together the tragic Cypriot plane's final moments by matching blood found in the cockpit wreckage to a flight steward. Afghanistan-NATO-Spain State funerals were held for the 17 Spanish soldiers killed in a helicopter crash in Afghanistan, in the presence of King Juan Carlos and Prime Minister Jose Luis Rodriguez Zapatero. Ivory Coast Rebel forces in Ivory Coast were closely following developments in the capital after the country's former military chief called for the overthrow of President Laurent Gbagbo, a rebel spokesman said.