Politics

Greece edged towards a deal on Saturday to avert a chaotic default, hammering out a plan for recapitalising its tottering banks, but other issues remain - and it must still persuade its political leaders to back painful reforms involved in the rescue.

Russia and China have again vetoed a U.N. Security Council resolution on Syria condemning President Bashar al-Assad's nearly year-long crackdown on anti-government protests.

Tens of thousands of people in Russia are braving bitter cold weather in Moscow to participate in a pair of political rallies: one calling for Prime Minister Vladimir Putin to step down, the other supporting him.

Western powers say a vote on the United Nations Security Council resolution on Syria will go ahead Saturday as the bloodshed intensified in the flashpoint city of Homs leaving more than 200 people dead.

Greece is to resume marathon talks with European and IMF officials on Saturday as negotiations to produce a bailout deal for its crisis-hit economy by next week reached a climax.

Greece's government on Saturday struggled on in talks with lenders to secure a 130 billion euro bailout before turning to the trickier task of persuading political leaders to back the unpopular reforms involved in the rescue.

Prime Minister Lucas Papademos is set to meet the leaders of the parties in his coalition government on Saturday amid mounting pressure from Greece’s lenders for further structural reforms and austerity measures.

Greek Prime Minister Lucas Papademos and Italy's Mario Monti were appointed within days of each other last November to replace politicians who took their countries to the brink of financial collapse.

Greece's government struggled on Friday to agree tough labour reform that appeases both wary political leaders and irate lenders faced with a rising bill to save the country from bankruptcy.

Iran's Supreme Leader Ayatollah Ali Khamenei warned Friday that Iran will retaliate against Western-backed oil sanctions and threats of attack, as media reports say U.S. Defense Secretary Leon Panetta fears Israel could strike Iran in the next few months.