* Barak approves purchase of F-35s Israel to receive first 20 fighters in 2015, cost estimated at $2.75b.

* Israel to reject preconditions Abbas to hold PLO C’tee meeting before deciding on direct talks.

* Arab League Lobbies to End Israel’s Nuclear Ambiguity Arab League nations are lobbying the United States and other Western powers to end Israel’s nuclear ambiguity.

* China passes Japan as No. 2 economy Beijing’s $5 trillion GDP still far behind US’s $15 trillion.

* Petraeus hedges on US exit date from Afghanistan The new commander of foreign forces in Afghanistan, Gen David Petraeus, says he will not be bound by a 2011 target date to start withdrawing US troops.

* N.Korea warns of severest punishment over war games North Korea’s military threatened Sunday to launch the “severest punishment” against South Korea for staging massive joint war games with the United States this week.

* Attacks in Iraq Rise During Ramadan Another violent day following insurgents’ threats to escalate their attacks during the Muslim holy month of Ramadan.

* Muslims Set Aside $30 Million for Keeping Jerusalem Muslim The Holy Al Quds Fund announced that it will invest $30 million in projects for “safeguarding the Arabic and Islamic nature” of the Old City of Jerusalem.

* US warns Turkey that strained Israel ties could hinder arms deal Obama tells Turkish prime minister that Ankara’s position on Israel and Iran could lower its chances of obtaining US weapons, the Financial Times reports.

* Ground Zero mosque must be built Hamas official: Muslims have right to build just like Jews.