Bombs defused in Indian city

Police in India say they have defused at least 14 small bombs in the city of Surat in the western state of Gujarat.
The bombs, none of which had timers attached, were found in various locations around Surat, the hub of India's textile and diamond trade. Cities across India have been on high alert since a series of bombings in the southern city of Bangalore on Friday and Ahmedabad in Gujarat a day later. At least 50 people were killed and more than 100 injured in the blasts.

Indian interest rates rise to 9%

India's central bank has increased its key interest rate to 9% from 8.5% in a bid to dampen surging inflation.
It is the third time in two months that Indian interest rates have risen and more rate rises are expected. Inflation is running at a 13-year high, driven by the soaring cost of food and fuel which is biting into the spending power of India's poor. Many Asian countries are facing the same problem, threatening to curb rapid economic growth. In an attempt to discourage lending, the Indian Reserve Bank also raised the level of minimum cash reserves banks must hold in relation to customer deposits. India's main stock index, the Sensex, tumbled after the rate rise on worries that car and home loans will become more expensive, slowing consumer spending.
It closed down 557.6 points, or 3.9%, at 13,791.54 - a one-week low. "The hikes were above consensus. We expect lending and deposit rates to rise further and growth to slow significantly," said Macquarie Securities analyst Seshadri Sen. But Reserve Bank Governor Y. Venugopal Reddy said that compared with the rest of the world, the drop in growth rates would be marginal.

Rivals trade blame over Kashmir

India and Pakistan have accused each other of breaching a ceasefire in the disputed territory of Kashmir.

Alzheimer's drug 'halts' decline

UK scientists have developed a drug which may halt the progression of Alzheimer's disease.

World trade talks end in collapse

Marathon talks in Geneva aimed at liberalising global trade have collapsed, the head of the World Trade Organisation has said.

Karadzic on his way to The Hague

Former Bosnian Serb leader Radovan Karadzic is being flown from the Serbian capital Belgrade to the war-crimes tribunal in The Hague.

Branson unveils space tourism jet

The British business tycoon, Richard Branson, has unveiled an aircraft in the US that will be used for his project to launch tourists into space.

Australia abandons asylum policy

The new Australian government has abandoned the country's controversial policy of jailing all asylum seekers.

China rights 'worsen with Games'

The human rights situation in China has deteriorated, not improved, with its hosting of the Olympic Games this year, campaigners Amnesty International say.

Lingering pollution worries China

Lingering pollution worries China
China has admitted it could introduce further emergency measures to cut air pollution during the Olympic Games.

Turkish court deciding AKP's fate

Turkish court deciding AKP's fate
Turkey's Constitutional Court is meeting to consider if the governing AK Party should be banned for alleged anti-secular activities.

Iraq suicide blasts cause carnage

Iraq suicide blasts cause carnage

Suicide bombers have killed at least 47 people and wounded about 240 in attacks on crowds in the Iraqi capital Baghdad and the northern city of Kirkuk.