* Arabs to re-offer Israel peace deal The Arab League plans to offer Israel the same land-for-peace deal it made in 2002, without changes Israel has been seeking.

* China to increase military spending China will boost military spending by 17.8 percent this year.

* Iran Denies Reported Support for 2002 Saudi Peace Plan A report by the Saudi Press Agency on Sunday said that Iranian President Mahmoud Ahmadinejad expressed support for Saudi-authored 2002 Arab plan for peace with Israel.

* Iran’s Ahmadinejad visits Saudi amid regional crises Iranian President Mahmoud Ahmadinejad left Saudi Arabia late Saturday after talks with King Abdullah.

* Turkey defies EU with own accession agenda Turkey has announced a “new strategy” in its EU relations, turning its focus away from the official Brussels accession talks timetable.

* Abbas, Haniyeh fail to make progress Palestinian Authority Chairman Mahmoud Abbas and Prime Minister Ismail Haniyeh failed to make progress on talks toward forming a unity government, an official said.

* World stock drop hits second week The global stock market slump has powered into its second week, pushing the UK’s main share index below 6,000 for the first time since October.

* Olmert meets with US official on Iran US Undersecretary of the Treasury for Terrorism and Financial Intelligence Stuart Levey held a series of meetings in Jerusalem Sunday.

* Report warns against Iran attack Military strikes against Iran could speed Tehran’s development of nuclear weapons, according to a UK think tank.

* Birthday declaration puts Merkel to EU constitution test German chancellor Angela Merkel is facing the first real test of her efforts to push a revised EU constitution.