International

Date: Tue, 6 Jan 2009 05:02:08 -0500
TOP STORIES as of 1000 GMT -- 06 January, 2009

TOLL RISES AS ISRAEL ENCIRCLES GAZA CITY
As the Israeli military surrounds densely populated Gaza City,
it says it has killed 130 Hamas fighters since beginning a
ground offensive over the weekend.

GAZA HORRORS SOW SEEDS FOR FUTURE VIOLENCE
Children in Gaza and Israel say they are frightened, having
witnessed terrible images of tragedy during the conflict.
Psychiatrists worry that the violence will sow the seeds for
future violence.

ARAB LEADERS MEET TO PRESENT GAZA RESOLUTION
Foreign ministers from several Arab nations huddle in New York
-- the eve of Palestinian President Mahmoud Abbas' address to
the U.N. Security Council -- to work up a U.N. draft resolution
calling for an immediate cease-fire in Gaza.

UKRAINE: RUSSIA CUTS EUROPE GAS SUPPLY
A natural gas dispute between Russia and Ukraine flared Tuesday
when Ukraine accused the Russian supplier of blocking pipelines
to Europe, and two Eastern European countries said their supply
from Russia had been cut or reduced.

HUNDREDS IN AFGHANISTAN PROTEST GAZA INCURSION
Hundreds of people in southern Afghanistan have burned Israeli
flags and shouted anti-Israel and anti-American slogans to
protest Israel's military action in Gaza, according to
eyewitness accounts from a CNN stringer.

REPORT: CHINA TARGETS WEB SITES WITH 'PORN'
China has released a blacklist of 19 major online portals and
Web sites, including Google and Baidu, that it claims provide
and spread pornographic or obscene content, state media
reported.

TOYOTA EXTENDS SHUTDOWN OF PLANTS IN JAPAN
Toyota announced Tuesday it will idle all 12 of its wholly owned
factories in Japan for an extra 11 days in response to the
slumping auto market.

OBAMA PROPOSING $300B TAX CUTS
U.S. President-elect Barack Obama launched his campaign for a
massive package of tax cuts and spending proposals aimed at
reviving an economy mired in recession.

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BUSINESS

U.S. ECONOMIC STIMULUS MEETING RAISES HOPES
Congressional leaders from both parties are optimistic that U.S.
President-elect Barack Obama's package of tax cuts and spending
proposals will revive the beleaguered economy.

ASIA MARKETS UP; U.S. STOCKS LOWER
Asian Pacific markets traded up Tuesday, as a stronger dollar
made export-related stocks favorable to investors.

LEADERS MEET TO END UKRAINE GAS CRISIS
European and Russian leaders are holding crisis meetings Monday
to try to defuse a dispute between the Russian energy giant
Gazprom and Ukraine's state-run gas company Naftogaz Ukrainy.
Gazprom chief executive Alexey Miller, pictured, was to meet
Russian Prime Minister Vladimir Putin.