World News Briefs -- May 21, 2010

'Perfect Storm' As Market Tremors Hit China, Europe And The US -- The Telegraph

Capitulation fever has swept global markets on triple fears of faltering recovery in the US, Chinese credit curbs and Europe's intractable escalating debt crisis.

"It is the perfect storm," said Andrew Roberts, credit strategist at RBS. "People have been too complacent about risky assets. This is a global deflation scare and people need to get ready for falls in US and European bond yields to 2pc."

The global stock market sell-off continued for a third day on Friday in Europe and Asia. London's FTSE 100 dropped 2pc to trade below 5,000 for the first time since last November. Germany lost 2.4pc, France 2.2pc and Japan 2.5pc. Wall Street is set to open lower.

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MIDDLE EAST

Iran may cancel atom swap deal if sanctions passed.

Iran sanctions won't stop missiles: Russian senator.

U.S. hikers held in Iran describe captivity.

Iraqi politicians break bread, but not the standoff.

Yemeni separatists warn of South's rebels.

Jews in Arab east Jerusalem defy Obama peace push.

ASIA

Clinton condemns attack on South Korean ship.

U.S. - China talks to soothe troubles.

PM calls for reconciliation to heal Thai divide.

Rights groups say new evidence suggests Sri Lanka war crimes against Tamil Tigers.

Pakistan: 60 militants killed as troops repulse attack.

Pakistan blocks YouTube a day after shutdown of Facebook over Muhammad issue.

AFRICA

Ruling party expected to triumph in Ethiopian elections.

Somali President reinstates Prime Minister, cabinet.

Salva Kiir sworn in as south Sudan leader.

Malawi gay conviction is alarming precedent: UN.

EUROPE

Debt-riddled Europe faces critical talks.

Striking workers, but no riots this time, in protests over Greece debt bailout.

Paris heightens museum vigilance after big heist.

AMERICAS

Louisiana fears oil onshore is just the start.

Felipe Calderon calls Arizona immigration law racial profiling.

`Immediate' US aid in drug war slow to help Mexico.

TERRORISM/THE LONG WAR

Intelligence director knew his days were numbered.

House panel OKs probe of Gitmo lawyers.

3 Basques convicted in 2006 Madrid airport bombing.

ECONOMY/FINANCE/BUSINESS

German lawmakers approve euro rescue package.

Fed official: Europe's crisis poses risks to US.

U.S. stocks plunge most in year; Treasuries, Euro rally.

U.S. Senate passes finance bill.