* Egypt: Israel must stop settlement Egyptian president Hosni Mubarak has told his Israeli counterpart construction work on land taken from Palestinians in 1967 must stop if there is to be peace.

* Iran begins war games to protect nuclear sites Iran began large-scale air defense war games aimed at protecting its nuclear facilities from attack.

* Mubarak: Jerusalem a ‘pan-Arab’ issue Jerusalem is not a Palestinian “problem” but a pan-Arab one, and Israel will suffer if a “just solution” is not found there, Egyptian President Hosni Mubarak warned.

* Peres: A united military is crucial President Shimon Peres warned of the evils represented by Iranian President Mahmoud Ahmadinejad.

* Fatah official: Abbas to postpone PA elections Palestinian Authority President Mahmoud Abbas is set to formally announce the postponement of the presidential and parliamentary elections that he called for January 24, a PA official said.

* New foreign policy chief to start work next week The EU’s new foreign policy chief, Catherine Ashton, will take up her duties next week, in a continuation of the political whirlwind which saw her suddenly propelled from her short stint as trade commissioner to taking on what will be one of the union’s most high profile jobs.

* EU Appointments Divide Internet Commentators European Union leaders Thursday picked two low-profile figures — Belgian Prime Minister Herman Van Rompuy and EU Trade Commissioner Catherine Ashton — as European Council president and EU high representative for foreign affairs.

* Gold hits new record high on weakening dollar The price of gold has hit a new all-time high, boosted by continued concerns about the weakening dollar.

* Lawyer: 9/11 defendants want platform for views The five men facing trial in the Sept. 11 attacks will plead not guilty so that they can air their criticisms of US foreign policy, the lawyer for one of the defendants said.