Missing US balloonists 'unlikely to have survived'

Two US balloonists who went missing over the Adriatic Sea while taking part in an endurance race are unlikely to have survived, race organisers have said.

Richard Abruzzo and Carol Rymer-Davis disappeared in a thunderstorm on Wednesday off the east coast of Italy.

Radar readings from their balloon's tracking device showed they plunged towards the sea at 80km/h (50mph) before signals stopped.

The pair were taking part in the Gordon Bennett gas balloon endurance race.

Ships and aircraft from Croatia, Italy and the US continued searching for them on Friday.

BBC News

Ferrari chief predicts 'big battle' for F1 crown

(CNN) -- Ferrari President Luca di Montezemolo is predicting a fight to the finish in the race to crown this year's Formula One world champion and has renewed his attack on the smaller teams struggling to keep pace with their more illustrious rivals.

Ferrari driver Fernando Alonso has won the past two races to surge back into contention in one of the closest title races in years.

With four races remaining, five drivers are still in with a chance of taking the crown, with Alonso 11 points behind leader Mark Webber of Red Bull.

The McLarens of Lewis Hamilton and defending champion Jenson Button, and the Red Bull of Sebastien Vettel, are all within 25 points of Webber.

"It will be a big battle," Montezemolo told CNN. "Our season has been strange because we won the first race, then we had troubles, but in the last five races we won three so I think we are in very good shape and I always think Ferrari is in condition to win the championship.

"My goal is to have Ferrari always on top".

CNN

Emanuel steps down for expected Chicago run

Washington (CNN) -- Veteran Illinois politician Rahm Emanuel -- long known as one of toughest men in American politics -- has stepped down from his powerful position as White House chief of staff, President Barack Obama officially announced Friday.

Emanuel has been temporarily replaced by White House Deputy Chief of Staff Pete Rouse while Obama searches for a long-term replacement.

Emanuel, who held a Chicago congressional seat for six years, is widely expected to run for mayor of his hometown.

The move has been anticipated since Chicago Mayor Richard Daley recently decided not to run for re-election.

Chicago "is the greatest city in the greatest country in the world," Emanuel said. I am "eager to see what I can do ... to make (it) even greater".

Obama, addressing a crowd of White House staffers, heaped praise on both Emanuel and Rouse.

CNN

US apologizes for infecting Guatemalans with STDs in the 1940s

Washington (CNN) -- The United States apologized Friday for a 1946-1948 research study that purposely infected people in Guatemala with sexually transmitted diseases.

A statement by Secretary of State Hillary Clinton and Secretary of Health and Human Services Secretary Kathleen Sebelius called the action "reprehensible".

"We deeply regret that it happened, and we apologize to all the individuals who were affected by such abhorrent research practices," the joint statement said. "The conduct exhibited during the study does not represent the values of the United States, or our commitment to human dignity and great respect for the people of Guatemala".

Clinton called Guatemalan President Alvaro Colom on Thursday night to inform him, said Assistant Secretary of State for Western Hemisphere Affairs Arturo Valenzuela.

"They were obviously concerned about this information. They were saddened by it," Valenzuela said in a telephone news conference Friday.

Guatemalan officials took into account that the experiments occurred more than 60 years ago, Valenzuela said.

CNN

Pakistan army says 'extra-judicial killing' video faked

The Pakistani military says it is investigating a video purporting to show a firing squad of uniformed soldiers shooting dead young men who were blindfolded and bound.

Its authenticity cannot be verified. It is unclear when or where it was filmed.

Human rights groups say they have previously documented extra-judicial killings by Pakistani troops but cannot vouch for the video.

Pakistani military officials have dismissed it as fabricated.

"No Pakistani Army soldier or officer has been involved in activity of this sort," army spokesman Maj Gen Athar Abbas told the BBC.

US voices concern

The individual who sent it to the BBC said many people in the Swat valley had the clip on their phones.

However journalists in Swat have told the BBC that the first they heard of the video was when it was reported in the New York Times two days ago.

It shows men in military clothing pushing a group of young men one by one through a forest.

BBC News

Trapped miners in Chile could be rescued by mid-October

Copiapo, Chile (CNN) -- Rescuers in Chile expect to reach 33 trapped miners as early as mid-October -- sooner than previously expected.

Crews could reach the miners between October 15 and October 30, Mining Minister Laurence Golborne said Friday. Officials had said earlier that it would be November.

The first test of a rescue capsule was carried out successfully Thursday.

Once one of the three drills working to reach the trapped miners breaks through, the rescue capsule will be lowered at least 600 meters (1,968 feet) to begin ferrying the men to the surface.

The men, trapped since August 5, have been surviving on supplies funneled to them from above ground through earlier bore holes, each about four inches in diameter.

CNN

Court rules Babri site to be shared

LUCKNOW, India: An Indian court ruled Thursday that a disputed site that sparked bloody riots in the past should now be divided between the Hindu and Muslim communities.

But in its compromise ruling, the court gave Hindus control over the area where the now-demolished Babri Mosque stood — and where a makeshift tent-shrine to the Hindu deity Ram now rests.

While both Muslim and Hindu lawyers vowed to appeal, immediate reaction to the ruling was muted and it seemed unlikely to spark violence, as the government had feared.

Hindus rushed to give thanks at temples in Ayodhya, where the atmosphere was peaceful. "It is very clear the case will go to the Supreme Court. It is not our final victory," said Nitya Gopal Das, president of a Hindu trust involved in the suit.

In Lucknow, where the decision was read, shops were closed, streets were deserted and police were on patrol.

And in Mumbai — a flash point for previous Hindu-Muslim violence over the temple dispute — Hindu and Muslim groups appealed for peace. "We hope all problems regarding matters with Hindus and Muslims can be settled in this amicable way," said Haji Arfat, a leader of the Hindu fundamentalist Maharashtra Navnirman Sena.

The chief minister of Gujarat state, which has seen some of India's worst religious riots, welcomed the ruling as clearing the path for building the Ram temple. "The judgment will also act as a catalytic agent in strengthening the country's unity," said Narendra Modi, who was Gujarat's chief minister in 2002 when Hindu mobs rampaged through Muslim neighborhoods in riots that left about 1,000 people dead, most of them Muslims. Those riots were triggered by a fire that killed 60 passengers on a train packed with Hindu pilgrims.

Over 2,000 people were killed in 1992 when Hindu fanatics razed the Babri Mosque built at the site in 1528 by the Mogul Emperor Babur. Hindus claim the site is the birthplace of Ram, and that a temple to the deity once stood there before the mosque.

Arab News

Macedonia Closer to Joining South Stream

Macedonia appears to be very close to being included in the South Stream gas transit pipeline after its government held talks with Gazprom officials on Friday.

"It is quite likely that Macedonia will be involved in gas pipeline "South Stream", with a number of options reviewed how to do this, whether as its arm or as transit line. We need to complete the technical analyses on the pipeline profitability, followed by the signing of an inter-governmental agreement with Russia on its realization," Macedonian Deputy PM and Finance Minister Zoran Stavreski said, as cited by the Macedonian agency MINA, after Friday's meeting with representatives of Russian energy giant Gazprom in Skopje.

Stavreski has clearly defined Friday's talks as a step forward in the realization of the gas pipeline in Macedonia and it was almost certain that the country would be involved in the project.

"Gazprom's arrival in Macedonia will make the country more attractive to investors due to the stability in supply with environment-friendly and cheap energy, but will at the same time result in the development of Macedonia's economy," he declared .

FYROM government has already established "Makedonija Gas", a special company to work together with "Gazprom" on South Stream. Depending on the gas needs of Kosovo and Albania, a South Stream arm towards Macedonia or a transit route would be constructed.

Gazprom head of project management Leonid Chugunov is quoted as saying that a period of at least one year was required for technical preparations in order to decide which of the two options to use.

Novinite

France fingerprints Roma deportees to prevent return

The French Immigration Ministry is to fingerprint Roma (Gypsies) who get financial aid after being deported.

From Friday, biometric records will be created on Roma and other foreigners who receive up to 300 euros (£259; $409) after they leave France.

Most of them are repatriated to Bulgaria and Romania.

Authorities say some expelled Roma make return trips to France to benefit several times from the humanitarian aid they get for going home.

In 2009 more than 15,200 return aid payments were made to immigrants, mostly Roma, who were expelled from France.

The French government classes the majority as "volunteers", who are given a cash payment of 300 euros per adult or 150 euros for each child.

The expulsion fund cost the French government 9m euros last year.

BBC News

EU urges Israel to reinstate settlement freeze

Jerusalem (CNN) -- The European Union foreign policy chief said she urged Israel to reinstate its settlement moratorium and is disappointed that they have not yet done so.

An Israeli settlement freeze expired on Sunday, sparking concern that the controversial issue could become a sticking point that would stall face-to-face talks between Palestinians and Israelis, which resumed last month after an 18-month hiatus.

Catherine Ashton said she had a "positive and constructive dialogue" with U.S. Mideast envoy George Mitchell and Israeli and Palestinian leaders. The EU is one of the entities in the Middle East quartet.

"Those of us engaged in the process have been very concerned that the ending of the moratorium puts at risk the possibility of long-term peace. I have urged Israel to continue the moratorium in order to allow the talks more time to make progress. I regret that so far they have chosen not to," she said.

The EU, noting it is the "biggest donor and partner" of the Palestinian Authority, has been working with the United States, the United Nations, and Russia in the quartet -- in an effort to bring peace to the region.

CNN

Hitler's watercolors snapped up by emerging market buyers

A collection of sixteen watercolors by Nazi leader Adolf Hitler sold for $164,800 to buyers from Russia, China and India at an auction in London on Thursday.

Richard Westwood-Brookes from Mullock's Auctioneers told the German news agency DPA that it was not surprising that the buyers had come from emerging economies.

"There is a great interest in World War II in these countries and a lot of people with a lot of money to invest," he said. "They look at these items as an investment".

"This shows that it has nothing to do with an obsession with the Nazis, or neo-Nazis buying it," he added.

A watercolor of a hillside scene, 'Ortschaft am Main' (German for Village on the Main), fetched the highest price, selling for $15,800.

Hitler painted the watercolors in 1908, when he was trying to forge a career as an artist. He was rejected twice by the Vienna Arts Academy.

RIA Novosti

South American leaders condemn attempted coup, kidnapping in Ecuador

(CNN) -- A group of South American leaders Friday condemned an "attempted coup" in Ecuador and praised troops for rescuing the country's president in a shootout with police.

In a statement issued after an emergency meeting in Argentina, the group of presidents and top officials pledged to send their foreign ministers to Ecuador later Friday to show support for President Rafael Correa, whom police allegedly kidnapped Thursday in an attempt to force him to revoke a new law.

Hours after the rescue, Correa repeated his claim that compensation issues were merely a pretext for police to kidnap him and try to overthrow his government.

"It was an attempt and a perfectly coordinated conspiracy," he said late Thursday.

Two people died in clashes between police and the military after hundreds of troops arrived at a hospital outside the country's capital to rescue Correa on Thursday night, Ecuador's Red Cross reported. At least 88 people were injured in unrest throughout the country.

CNN

Manchester City post $192m loss as wages exceed earnings

(CNN) -- Manchester City, English football's biggest-spending club, posted a loss of £121 million ($191.5 million) in the financial year finishing on May 31, 2010.

The club's earnings of $197m were exceeded by their wages alone, which amounted to $210m.

The loss is the second highest in Premier League history, dwarfed only by the £141m lost by Chelsea in 2004-05, the end of the first full year following the takeover by the Russian billionaire Roman Abramovich.

City have spent more than $500m on players since the club was bought by Sheikh Mansour of Abu Dhabi in 2008.

CNN

Musharraf jumps back into Pakistani politics

Islamabad, Pakistan (CNN) -- Former Pakistani president Pervez Musharraf has returned to the political stage in Pakistan, which he describes as a "demoralized" nation that needs an injection of vigor and leadership.

Once one of the United States' strongest allies in the fight against terror, Musharraf on Friday launched a new political party in Pakistan as an alternative to an administration he says is now beset with serious problems.

He cites widespread devastation caused by the spring flooding, a nose-diving economy, and a persistent extremist element, and said the current administration, which he calls corrupt, hasn't met those challenges.

"This is about leading, about support of the people and that's my strength," Musharraf said in a Connect the World interview with CNN's Becky Anderson. It is to be aired Friday.

"I don't see a political party out there now that is capable of bringing light back in the country. We need a new political culture that shuns dynasty politics," he says, saying that he wants a greater presence of women and minorities participating in the body politic.

CNN

Ikea reveals profit figures for first time

Hong Kong, China, and Stockholm, Sweden (FT.com) -- Ikea, the world's largest furniture retailer, has publicly disclosed its profits for the first time in an effort to rid itself of a reputation of being highly secretive.

The family owned, unlisted Swedish retailer said on Friday that the group's net profit had risen 11.3 per cent to €2.5bn ($3.4bn) in the 2009 financial year compared with the previous year.

The group's sales weathered the global economic downturn to rise 1.4 per cent to €21.8bn during the period. Sales recovered strongly in the 2010 financial year, rising 7.7 per cent to €23.1bn.

Net income has consistently stayed between 10 and 13 per cent of revenue over the past 10 years, according to the company. The proportion of sales in North America was 15 per cent last year, in Asia it was 6 per cent while sales in Europe dominated at 79 per cent.

The company, which employs 127,000 employees, said it paid €384m in tax in 2009. Operating income rose 4.4 per cent to €2.77bn while its assets totalled €37bn.

CNN

Obama set to confirm exit of key aide Rahm Emanuel

US President Barack Obama is set to confirm that Chief of Staff Rahm Emanuel will resign to run for the post of Chicago mayor.

Mr Obama has called a press conference for Friday afternoon in the White House to make a "personnel announcement".

US sources said the likely interim replacement would be Pete Rouse, who served as Mr Obama's chief of staff in the US Senate.

Mr Emanuel has made no secret of his desire to run for mayor one day.

The position of chief of staff is considered one of the most influential in the White House, and presidential aides have admitted Mr Emanuel's departure will be a loss to the administration.

Mr Emanuel - who has a reputation for brashness and abrasiveness - is a native of Chicago and represented Illinois's 5th district in Congress for six years.

Pundits have tipped Mr Emanuel to replace mayor Richard M. Daley since the latter announced on 7 September that he would be stepping down.

Mr Daley has been mayor of Chicago since 1989.

Mr Emanuel has shown himself to be a strong force in the White House.

White House spokesman Robert Gibbs would not confirm Mr Emanuel's departure but said of him: "The title 'chief of staff' in many ways says it all. He has been the energetic, inspirational leader of us, taking the president's promises and agenda and enacting them into law".

BBC News

'No pardon' for Ecuador rebels, says President Correa

Ecuador's President Rafael Correa has said there will be "no pardon or forgiveness" for those involved in a police rebellion against him.

Mr Correa had to be rescued by the army from a hospital in the capital, Quito, after he was trapped there for several hours by disaffected police.

The president was being treated after inhaling tear gas fired by police who were protesting at austerity measures.

Two people died and dozens were injured in the unrest, officials said.

The president and his supporters said the police revolt over a new law cutting benefits for public servants amounted to an attempted coup.

A state of emergency has been declared.

Mr Correa said there would be "a deep cleansing of the national police", and that he would "not forgive nor forget" what had happened.

The commander of Ecuador's police force has since resigned, a police spokesman said on Friday.

South American heads of state held an emergency meeting in Argentina and called for those behind the revolt to be tried and punished.

Mr Correa, a 47-year-old US-trained economist, was elected in 2006 and won a second term in 2009 - despite a decision to default on $3.2bn of global bonds which caused widespread fiscal problems for the government.

BBC News

Medvedev urges creation of mobile communications for special services

President Dmitry Medvedev has set Russia's security agencies the task of creating a reliable modern system for confidential mobile communications, the secretary of the Russian Security Council said Friday.

"We will work on this, and I hope such communications will appear soon: we have already done some groundwork," Nikolai Patrushev told journalists after a Security Council meeting.

Patrushev explained that he meant mobile phones on which confidential conversations could be held from any point on the Earth.

"And the talk cannot be intercepted," said Deputy Prime Minister Sergei Ivanov, who delivered a report at the meeting.

Patrushev said currently available systems are too bulky.

RIA Novosti