* U.S., EU indicate they prefer Kadima-Likud unity government in Israel While the make-up of the next government remains a question mark in Israel, it appears that the United States and the European Union have already weighed in with a clear preference for a unity government.

* Economic crisis bigger threat than Al Qaeda, US says The economic crisis has topped Al Qaeda as the US’ number one security risk.

* Turkey PM: Israel election results paint ‘very dark picture’ Turkey’s fierce censure of Israel’s offensive in the Hamas-ruled Gaza Strip will not end its role as a peace mediator in the Middle East.

* Israel Thinks U.S. Waiting for Iran Elections to Choose Policy The elections pit Ayatollah Muhammad Hatami against current President Mahmoud Ahmadinejad.

* Arab Sector Turns to Pan-Arabism, Communists Arab-Israelis are turning their backs on mainstream parties in favor of pan-Arab parties and the Communists.

* Israel, Iran liable to clash in 2009 over nukes, says U.S. intel chief Israel and Iran are liable to enter into a confrontation or a crisis sometime this year due to Tehran’s progress in its nuclear weapons program.

* Iran to US: Chess is better than boxing When it comes to dealing with Iran, the country’s parliamentary speaker said the United States would be better served taking up chess than continuing to box.

* G7 ministers focus on stabilizing world economy Finance ministers from the world’s leading industrialized nations were holding their second and last day of meetings in Rome on Saturday.

* Saudi king dismisses 2 powerful religious figures In an apparent bid to reform the religious establishment, Saudi King Abdullah on Saturday dismissed the head of the feared religious police and a hard-line cleric who issued an edict last year .

* Iranian ship carried munitions supplies A ship suspected of carrying arms from Iran to Gaza had no weaponry aboard but carried material for making munitions.