A short look at what is happening in the world this morning.
EU ready to double aid to Palestinians
BRUSSELS - The biggest donor to the Palestinians, the EU, is set to increase its aid in the wake of the Israeli pull-out from the Gaza strip, the European Commission said yesterday. It said it was contemplating doubling its aid to the West Bank and Gaza by up to €300 million - this year it provided about €280 million.
However, the commission said the increase in aid would depend on progress on the stalled "road map" to Middle East peace, and contributions from other donors.
In particular, it wants to see reforms to the Palestinian Authority's security services, as well as Israeli guarantees about border crossings that could end the Palestinians' economic isolation.
The Commission's plans also sound a self-critical note, reflecting internal pressures from EU officials who have called for the Union to do more to revive the road map, which sets out a path to the establishment of a Palestinian state. - (Financial Times service)
Crime writer wins poetry award
LONDON - A crime writer who also makes a living as a poet has scooped Britain's most valuable poetry prize - for his ninth collection.
David Harsent(62) of London won the £10,000 Forward Prize for Best Collection for Legion, which was described as "exceptional". His Det Sgt Stella Mooney crime fiction series is written under the pseudonym David Lawrence. - (PA)
Nelson items net record £4.65m
LONDON - A sale of Lord Nelson memorabilia has fetched a record £4.65 million at auction. The gold pocket watch he carried to his death at the Battle of Trafalgar in 1805 was sold yesterday to an anonymous bidder for £400,000 - making it the world's most expensive Nelson relic.
A portrait of Nelson in rear admiral's uniform by Lemuel Francis Abbott made £299,200 - more than double its estimate. A diamond cane presented to Nelson by the Greek island of Zante after the Battle of the Nile made £220,800.
The largest known fragment of the union flag from HMS Victory, which covered the coffin at his state funeral and was torn to pieces by distraught seamen, sold for £120,000. - (PA)
Giuliani plans to return to politics
NEW YORK - Rudolph Giuliani, New York City's former mayor, plans to return to politics, but he says it is too early to say if it will be for the 2008 presidential campaign.
Dubbed "America's mayor" after leading New York City after the September 11th attacks, Mr Giuliani has spent the years since working as a highly paid corporate executive and public speaker. - (AP)
Bishop on hunger strike rejects offer CABROBO - A Brazilian bishop on a hunger strike to protest against a river diversion project yesterday rejected the government's offer to negotiate and said he was ready to die to stop it.
The government had suggested postponing the $1.8 billion project to allow more debate on the plan to pump water from the Sao Francisco River. However Fr Luiz Flavio Cappio said it must be scrapped outright as it would benefit wealthy farmers in the parched area rather than millions of rural poor. - (Reuters)
Nobel chemistry prize awarded
STOCKHOLM - Frenchman Yves Chauvin and Americans Robert Grubbs and Richard Schrock have won the 2005 Nobel chemistry prize for showing how to tailor-make molecules for cheaper, cleaner chemicals and drugs to combat major diseases.
They were awarded the 10 million crown (€1.09m) prize for work in metathesis, where molecules "change partners" to create new molecules. - (Reuters)