* ‘Iran could trigger nuclear arms race in Middle East’ If Iran is allowed to pursue a nuclear weapons capability, countries around the world might feel compelled to take the same path.

* Coalition talks: Bibi, Lieberman optimistic Prime Minister-designate Benjamin Netanyahu and Yisrael Beiteinu Chairman Avigdor Lieberman met Thursday evening in an attempt to advance the formation of a new government.

* Obama to Beef Up PA Army The Obama administration has made plans to strengthen the emerging Palestinian Authority army that is currently being trained at an American-built base in Jordan.

* Optimism in Teheran It isn’t everyday we’re given insight into the strategic thinking of Iran’s supreme leader Ayatollah Ali Khamenei. But on Wednesday he addressed the Fourth International Conference for Support of Palestine in Teheran.

* Clinton says U.S. is ‘testing waters’ in outreach to Iran, Syria U.S. Secretary of State Hillary Clinton said on Friday that the Obama administration was “testing the waters” in its diplomatic overtures to Iran and Syria.

* Livni, Turkish FM meet to repair ties In an apparent attempt to patch up Turkish-Israel ties, which had badly deteriorated since Operation Cast Lead, Foreign Minister Tzipi Livni met with her Turkish counterpart.

* China to be ‘decisive’ on economy China’s central bank governor, Zhou Xiaochuan, has said China will respond quickly and dynamically to cope with the global economic slowdown.

* Russia building anti-satellite weapons Russia is working to develop anti-satellite weapons to match efforts by other nations.

* Brown claims he is on brink of deal for international banking regulation Gordon Brown will claim today his visit to the US this week has put him on the verge of winning international agreement on principles for banking regulation.

* Gorbachev criticizes Putin’s party In some of his strongest criticism of his successors, Mikhail Gorbachev on Thursday likened Vladimir Putin’s United Russia party to the worst of the communists he once led and helped bring down.