* Nasrallah: We're not scared of Israel Last week, a senior IDF officer told Yedioth Ahronoth that Hezbollah faces the gravest crisis in its history.
* Bethlehem Mayor's Christmas Wish: Sanctions on Israel Bethlehem Mayor Victor Batarseh lashed out at Israel this week at a tree-lighting ceremony in honor of the Christmas holiday.
* Christians flee central Iraq in thousands, UN reports The UN refugee agency says thousands of Iraqi Christians are fleeing from central provinces of the country.
* Japan defence review warns of China's military might Japan has unveiled sweeping changes to its national defence polices, boosting its southern forces in response to neighbouring China's military rise.
* N.Korea says war with South would go nuclear North Korea warned that another war with South Korea would involve nuclear weapons.
* Oil prices rise to nearly 92 dollars World oil prices rose on Friday as the dollar fell against the euro amid improving demand for crude.
* This week in Haaretz 1949 / Jerusalem is declared the eternal capital of Israel On December 9, 1949, the U.N. General Assembly voted to implement the resolution to internationalize Jerusalem.
* Israel Remembers the Holy Temple and the Holocaust on Tevet 10 Friday is the tenth day of the Hebrew month of Tevet, a fast day on which Jews remember the siege of Jerusalem.
* EU leaders agree to tweak treaty, keep bail-out fund unchanged European Union premiers and presidents have agreed to a surgical change to the bloc's treaty to enable the creation of a permanent bail-out fund from 2013.
* UN mulls internet regulation options The United Nations is considering whether to set up an inter-governmental working group to harmonise global efforts by policy makers to regulate the internet.