Author: Greg Palkot

US Treasury Secretary Timothy Geithner called on Europe and Greece to act today to implement programs aimed at stabilizing roiling markets.   

“The markets want to see action,” Geithner said at a press conference with the new UK Chancellor of the Exchequer George Osborne.

Geithner tacked on stops in London and Germany following his Asia trip in the wake of troubles in financially-ailing Greece and the Eurozone. Today’s session was mainly supportive.   

“This is mostly a meeting of the minds,” Howard Wheeldon, analyst from London’s BGC Partners told Fox News, “No decisions were expected.”

In the wake of Germany’s unilateral action last week to stamp out certain speculative trading, the Treasury Secretary did push for Europe to work together on new regulations, saying the US was committed to a “comprehensive and consistent approach to financial reform.”

Geithner also encouraged Europe to look at “stress tests”’ and other methods to maintain oversight of banks here. 

While a new approach was pitched today by the EU to impose levies on banks to create a fund to support financial institutions, analysts say nations here have been slow to act.

“Stress tests are bad if the country is not willing to back them up,” Michael Hewson of CMC Markets explained to Fox News, “or if they don’t want to hear the news.”

With 45% of  UK trade and 25% of US trade with Europe, Geithner said the US is looking not just for stability but for “strength in its recovery.”

That recovery , according to experts here , still seems a way off.

The Korean peninsula is on “edge” again, as a new war of words is breaking out between North and South Korea.  Veteran Korea watchers tell Fox News they are concerned.

“This is pretty drastic,” Daniel Pinkston of the International Crisis Group told Fox News from Seoul, “everybody is on alert.”

John Swenson-Wright, Korea expert at London’s Chatham House, called the developments a “serious situation.”

After South Korea formally accused the North of torpedoing its ship the Cheonan, killing 46, and described the North as its principal enemy, Pyongyang has retaliated…with rhetoric.

The North Korea state news agency said Tuesday Pyongyang would “sever ties” with the South.

More significant, according to experts, is word from a dissident group that the North’s National Defense Commission has put North Koreans on “full combat alert.”

While the order has not been confirmed, ICG’s Pinkston calls the report “credible.”

And Chatham House’s Swenson-Wright, described the announcement as “significant.”

“A lot is riding on the next few days,” he added.

As expert Swenson-Wright noted, there remain  “…a lot of questions.”

One question is why the North would possibly want to trigger a new conflict.

Most point to a possible succession crisis with an ailing Kim Jong-Il apparently looking to pass his post to his son. The military moves, according to Swenson-Wright could be used for “domestic consumption” to bolster the stature of the regime.

The other question is whether these new words could turn into new actions.

So far, according to Seoul-based Pinkston there have no “unusual movements” of North Korean military personnel and  no signs of actual mobilization.

However, what Pinkston does note is that in tense situations like this, the risk of “miscalculation” by either side, is very real.

Which is why the region remains tense.

LONDON    The first commercial promoting abortion services is airing on a British TV network.

The outfit behind it, Marie Stopes International, is one of the biggest abortion providers in the UK. It say the ad is “clear and non-judgemental”

“The ad is not about abortion,” Julie Douglas, marketing manager of Marie Stopes told Fox News, “It doesn’t mention abortion.  It’s about unplanned pregnancy.”

But  pro-life advocates in the UK say the commercial is ALL about abortion and it’s going mass-market. 

“This advertisement will go in between advertisements for car insurance and cornflakes,” Anthony Ozimic of the Society for the Protection of Unborn Children asserted to Fox, “Many people have objected to it on that basis.”

As in the States, abortion is a controversial subject here.  It is legal in Great Britain. where abortion rates are some of the highest in Europe.  And with the National Health Service, the government here picks up the tab.       

For its part, Channel 4, the TV network airing the commercial, says it’s running it at an “appropriate time,” after 10:00 in the evening.

It says it’s been approved for broadcast by government authorities.

And that it’s up to the viewers to make their own judgement about its content.

That UK government approval is actually based on Stopes’ non-profit, charity status.  If it was a profit-making firm, the spots wouldn’t be allowed. 

As for the public, three quarters of those questioned in one survey said they had no problem with the ads airing.

“If people want to go for that,” one Londoner told us, “they should go for that.”

Another remarked, “I don’t think most people will object.”

But others are angry and want to push the Culture Minister of a new Conservative-led government to act against the commercial.

“The Minister should call on them to reverse the decision,” advocate Ozimic told us, “or overrule them if he has the power to do so.”

This ad campaign has just started…and so has the outrage.

Embattled Chief Executive of BP Tony Hayward come up with some controversial comments regarding the oil spill in Gulf of Mexico.  This time talking to Fox News sister network Sky News.

There has been some success in reducing the flow of the leak and the amount of  “oily liquid” clean up crews are picking up.

So Hayward told Sky while a detailed environmental assessment will be needed decide the impact :

“…everything we can see at this moment suggests that the overall environmental impact will be very, very modest.”

He said basically same thing to the UK’s Guardian newspaper last week :

 “…The Gulf of Mexico is a very big ocean.  The amount of volume of oil and dispersant we are putting into it is tiny in relation to total water volume.”

The reaction to the latest comment?  At the very least, environmentalists we’ve talked to describe the “modest” characterization as “premature.”

“This has the potential,” according to Colin Butfield of the World Wildlife Fund, “to be a major environmental disaster

The numbers ARE building :

The estimated amount of oil released so far in the Gulf  is some 5 million gallons.   Over a million more than the Santa Barbara oil spill of 1969. Getting closer, day by day to the 11 million gallons spilled in the Exxon Valdez incident.

UK-based author of recently-published “Oil  :  Money, Politics and Power” told Fox News Hayward is “…fighting against terrible odds.   He’s at the mercy of his engineers.”

At the same time, Bower has been critical of BP Hayward’s public relation approach to the crisis.

Regarding the “hits” BP is now taking from the White House, Hayward told Sky, “I think it is natural that the administration demonstrate they are on top of  it”

The folks in the Gulf elsewhere are probably hoping BP will “get on top of it” as well.

LONDON Greece seems to have edged back from the financial abyss…again.

On the eve of a large tranche of debt coming due Wednesday, the European Union has handed over the equivalent of 18 million dollars in bail-out money.   That plus IMF help should tide over the troubled Greek government for now.

“The first precipice was May 19^th,” John Sittilides of Trilogy Advisors told Fox News, “the obligation will be paid off.”

With EU finance ministers meeting today in Brussels, the actions of the international community have stabilized the markets in Europe as well as the common currency, the Euro.  Both were down sharply Monday.

“We are seeing more stability,” Bronwyn Curtis of HSBC told us, “People who feared risk have already gotten out.”

Still no analysts feel Europe or the EU is out of the woods. Some have said the long-term stability of the Euro remains in question.

“There are deep-seated problems,” Curtis added, “A lot depends on politics.”

Some predict the Euro will sink to parity with the US Dollar in the coming weeks.   The Euro is now roughly worth $1.23.  Some do not preclude some countries even falling out of the Eurozone.

“The Euro has been found wanting,” Howard Wheeldon of BGC Partners told Fox.

Meanwhile there is a war of words being conducted between the US and Greece.    

Greek Prime Minister George Papandreou was quoted Sunday saying that an investigation into US bank conduct during the Greek troubles was possible and that a lawsuit against certain US banks could not be ruled out.

At the same time the US Senate voted to add an amendment to a finance reform package Monday aimed at blocking US funding of IMF moves to help countries in financial trouble.  A move aimed some see at Greece.

According to Fox News freelance Producer Anthee Carassava in Athens, there doesn’t seem to be any “repercussions”  in Greece to this.

The Greeks, according to Carassava, are now more taken with the resignation of the Deputy Tourism Minister after it turned out her husband may have tax arrears of nearly $7 million dollars!

LONDON Critics of British Petroleum have told Fox News past cost-cutting by the London-based oil giant helped to contribute to the rig explosion and oil spill disaster now unfolding in the Gulf of Mexico.

Tom Bower, author of the 2009 book “The Squeeze, Oil, Money and Greed in the 21^st Century,” told Fox, British Petroleum’s economizing led to a lack of engineers, an overdependence on out-sourcing, and even a lack of supervisors to keep an eye on the sub-contractors.

The explosion which led to the oil spill in Gulf while occurring on an oil rig operating for BP was run by another company, Transocean. BP has said while it assumes responsibility for the incident, it is still waiting for an investigation to show Transocean’s role .

Critics say if there was at least a supervisor on the rig, BP would already have a better understanding of the incident

It is also charged a voluntary remote control cut-off switch might have headed off the oil spill. When Fox put that to BP spokesman Robert Wine, he told us that was Transocean’s responsibility.

As to the broader charge that BP has stripped its engineering ranks, spokesman Wine told Fox News those numbers are being built back up and that subcontractors are actually bringing “expertise to the operation.”

BP’s Wine DID admit to Fox News, in the wake of a series of other safety-related incidents involving BP including the deadly fire at a Texas City refinery in 2005, the company is in the midst of a “renewal” of “procedures” aiming at improved safety and a reduction of oil spills.

While the exact dimensions of the spill are still being assessed, its already taking its financial toll on the BP oil giant.

Nick McGregor, oil analyst for London-based Red Mayne Bentley told Fox News that 20 billion dollars has been written off the market value of the company. He said thats four to five times the total cost of the devastating 1989 Exxon Valdez spill.

“People are uncertain how this is going to go,” McGregor told us, “they don’t know how bad it’s going to get.”

As to the charge that engineering cut-backs at BP might have contributed to the disaster, McGregor said that only during the “post-mortem” stage of the probe would it be clear where the exact fault lies.

He did acknowledge the broader difficulties of running such a large company in situations like this. Sometimes, McGregor noted “…the folks at the top don’t know everything that is going on throughout the firm.”

For British Petroleum, much of this analysis will have to wait. It is in full damage control…and prevention mode.

“It is not a question of whether we WILL stop the spill,” BP’s Robert Wine told us, “it’s a question of WHEN.” He went on to say, “The most important thing is, it doesn’t happen again.”

LONDON: The third and final face-to-face US-style debate between the contenders for the U.K. Prime Minister job is now history. There was no “knock-out punch,” no major gaffe, no “game-changer.”

But our sister newspaper The Sun probably summed it up best on their front page :

“Breakfast Election Special : Scrambled Clegg and Toast…Cameron’s full of Beans”

Translation for Americans :

Third –party challenger Nick Clegg is doing well but stumbling on his own rhetoric.

Hapless incumbent PM Gordon Brown and third standing in the polls is “toast.”

And Conservative candidate David Cameron is out in front.

The theme of the last debate was the economy. And while that did spark some back and forth, the one thing most people were waiting for was whether Brown would mention again his sorrow about calling a voter a “bigot” behind her back but on microphone.

We didn’t get a real apology, just a throwaway line at the outset about how he doesn’t always get things right.

So now with election day next Thursday, May 6 we are in the homestretch. The only real drama among most analysts is whether front runner Cameron’s party will garner enough Parliamentary seats to govern on its own and not via a coalition or despite an unworkable “hung parliament.”

Then again who knows? A week in politics in the UK is the same as in the States : A lifetime. Keep your fish and chips ready.

If there are any American political junkies out there in this pre-mid term election lull, needing a super-strength “fix,” look no farther than the UK election brawl.

The race for a new British Prime Minister and Parliament is getting down and dirty…just the way we like it.

Front runner Conservative candidate David Cameron had an extended and emotional face-off on the street this week with the father of a disabled child complaining about government service.

Now that third party Liberal Democrat challenger Nick Clegg is a contender his genealogy (Dutch and Russian background, Spanish wife) has been raked over the UK nationalistic coals.

But nothing beats the gaffe-gate incumbent Labour Prime Minister Gordon Brown has gotten himself stuck in.

After a discussion with a disgruntled retiree he met on the stump, which included immigration policy (the woman was concerned about the number of eastern European newcomers here), the PM sped off in his car and muttered to his aide something about the woman being a “bigot.”

What he didn’t know is the wireless microphone which our sister network Sky News had attached to him for their pool coverage of the day was still on, his remarks dutifully recorded, and then broadcast to England.

The rest of the day, needless to say, was spent with Brown trying to extricate his foot from his mouth, apologizing to anyone who would listen (even a new face-to-face meeting with the lady in question).

That didn’t stop every newspaper spreading the event all across their front pages. The Daily Telegraph declared it a “Day of Disaster.”  Our sister newspaper The Sun was more succinct : “Brown ‘Toast’” 

Any pol watcher in the states will say this just goes with the territory. Gaffes are part of the domain, especially ones said into microphones thought to be…dormant (W’s less-than-friendly remark about a NY Times reporter, Reagan’s declaration of war on Russia, the list goes on).

But for some folks here in Britain this is just one more sign of the Americanization of the one-time controlled and careful British electoral process.

Thursday night will see the last of three American-style TV debates between the candidates. It s the first time this has happened in Blighty.

The analysis of the debates has been dominated more by how the candidates looked and spoke…rather than what they actually said.

What the Brits haven’t done is extend their campaign to the epic length our “Run’s for the White House” clock in at. It’s only a month long, election day is May 6. A lot of people here are grateful for that.

But what it does mean that all this US branded sleaze, stump, hustings, and gaffes comes at voters in a much more concentrated way. Which is leaving the British public gasping for air.

As for the issues involved? It’s one more way the UK is following us down into the political gutter. Those have become decidedly secondary to the personality race.

And that race, by the way, remains, “neck and neck.”

Again…the way we like it.

European stock markets are rebounding slightly today after they, along with the US and Asian markets, took a big hit overnight following new fears about the Greek economic situation.   

Standard & Poor’s graded Greek debt as “junk” Tuesday, as German officials spoke of the possibility of Greek debt holders not receiving full re-payment.

“We are looking very clearly at the chance of Greece defaulting,” Howard Wheeldon of BGC Partners stock firm told Fox News Wednesday.

And the chance of other European countries like Portugal following Greece down is becoming more real.  “The contagion factor is enormous,” John Sitilides of Trilogy Advisors told Fox.  “Portugal is very much in public play.”

While the IMF has agreed to a bail-out package for Greece, the European Union is still weighing its portion of the deal.  “The EU is showing its huge exposure and weakness,” BGS’s Wheeldon told Fox.

Experts tell Fox News banks with exposure to Greek debt even in better-off countries like France and Germany could also be threatened.

And our own stock markets could see further effects.

Sources in Yemen tell Fox News the government has launched a series of raids against terrorist hide-outs in the capital of Sana’a. This following an attempted failed suicide attack against the British ambassador there.

The Yemen Interior Ministry says they believe Al Qaeda is linked to that attack.

We are told the bomber jumped in the direction of the motorcade as it passed by on its way to the British embassy.

The Ambassador and British staff were unhurt in the “small explosion.”  Three people including two Yemeni policemen are reported hurt.

The nearby US embassy is urging Americans to “remain vigilant” in light of the attack. There are reports of heightened security at the embassy. The American embassy was the target of a deadly attack in September 2008.

The Britsh embassy is closed to the public and British authorities say they are assisting the Yemeni’s in a probe of the attack.

The incident also occured in the vicinity of the Movenpick and Sheraton hotels which foreign guests frequent.

All of this comes amid increased attention on Yemen and its Al Qaeda chapter, Al Qaeda in the Arabian Peninsula. It is believed the affiliate is linked to last year’s Fort Hood shootings and the Christmas bombing attempt.

While there has yet to be any claim of responsibility, earlier this year Al Qaeda threatened attacks against western interests in the country.

A beautiful island in Greece was the setting for an ugly pronouncement from Prime Minister George Papandreou today :   His country is broke and wants to activate a bail-out deal arranged with the European Union and the International Monetary Fund…to the tune of 60 billion dollars.

“The moment has come, since markets aren’t giving us time,” Papandreou said, “to make the decision, so that Greece can have support.”

The move came as fears rose that Greece would not make the deadline for refinancing its debt next month, that its money woes were bigger than feared, and that it could even face default.

It also came as public workers conducted more strikes effecting everything from ferries to hospitals as the Greek government implements  needed economy moves.

“The IMF will be demanding austerity measures that are politically unpopular,” Terry Roth of Dow Jones told Fox News, “we could see more public protest.”

Those protests have already gone violent and there could be more trouble.   The current bail-out package will only be enough, we are told, to get Greece through this year. There are more cuts to come.  

While there is resistance from Germany and others to helping Greece, the risk of not helping and seeing problems grow and spread, is even bigger.

“Everybody, despite some concerns and opposition,” economist Vassilis Vlastaklaris of Beta Securities is quoted as saying, “will be convinced there is no way around ‘solving’ Greece.”

As for why the US should care about and help rescue Greece, analysts tell us it’s already had an effect on our markets, it could have a “knock-on effect” for other European (and US-allied) countries, and might even cast a shadow over American state and municipality efforts to raise their own funds.

 It IS a “small world” after all.

LONDON  The second round of the US-style TV debates between contenders for the UK Prime Minister job is over.

Friday morning British newspaper headlines and instant polls gave the edge to Conservative party challenger David Cameron. “Cameron Wins with Passion,” The Daily Express declared.

Third party Liberal Democrat challenger Nick Clegg, who did so well in the first debate last week, fended off some tougher-sounding  opponents. “Clegg Weathers the Storm,” announced the Guardian.

As for incumbent Labour Prime Minister Gordon Brown, the best he could hope for is that the “…Election becomes a Three Horse Race” as The Financial Times noted.

The debate ran on Fox News sister network Sky News which led the fight for the first-ever party leader face-offs.  They’ve become a big hit here and have made a difference in the campaign.

Last night’s theme was foreign policy. For folks here, how close the UK should be to the troubled European Union was a major point.

The argument over how to handle immigration became as heated as in the States.   A proposal from Nick Clegg for an amnesty for illegal immigrants was batted down by his rivals. 

The US was only a blip in the foreign policy discussion.  Clegg got a bit of heat for his suggestion that the UK’s relationship with America is too close.       

But mostly, US viewers would have been at home with the good old-fashioned politicking on display.

Poll leader Cameron played to the camera like any American debate participant, and acted, if not Presidential, than Prime Ministerial, which is what he wanted. 

Nick Clegg continued to use the equal time debate format to grow his stature like third-party candidate Ross Perot did in the 1992 US Presidential debates.

The un-telegenic Prime Minister Brown, who continues to look a bit like Richard Nixon in the famous 1960 TV duel with John Kennedy, literally tried to put a “brave face” on it all and upped his game a bit.

What was the main catch phrase of the night coming from all three?  You guessed it, “Change”    Maybe even change Brits can believe in… 

…In between the soccer match, the prime time soap opera, and the rare mild UK spring evening, which competed with the debate for attention.

The last debate of the campaign is next week. Election day is May 6^th.

AMSTERDAM     Operations at the important European air hub of Schiphol in Holland were getting back to normal Wednesday.

The instances of long lines and mass confusion in the past few days here have eased as concerns regarding the Icelandic volcanic ash cloud diminish and flights pick up.

Officials for Eurocontrol, the body that regulates air travel in Europe, is reporting air traffic is now at 75% of regular levels.

That has still left some travelers out in the cold.  Flights to places like London, Glasgow, Munich and Stockholm, scheduled to leave from Amsterdam, are showing as cancelled or delayed on the “departures board” here.

Air travelers coming from other airports with connections to still “questionable” final destinations were told they would have to end their trip in Amsterdam and wait before trying to move onwards.

A Fox News team traveling from Dubai was on one of the first planes to operate out of an airport hit by the recent closures. The Dutch-based KLM plane flew from Amsterdam to the Mideast overnight Monday.    The crew then “turned around” and flew back to Amsterdam early Wednesday.

The flight attendants seemed to take the disruption in their stride, telling us their “down days” happened to coincide with the flight bans and so they were ready to get back to work.

As for the passengers on board on board the flight, with many travelers having to wait days before they’re accommodated, they were happy to be flying as well.

DUBAI Stranded transit passengers in Dubai are beginning to find their way back to the skies as flight bans ease in Europe and concerns about the Icelandic volcanic ash cloud start to break up.

According to Tim Clarke, the President of the biggest airline in the region, Emirates, it’s happening just in the time.    

He told the press here today there would be an economic “implosion” in the aviation industry if the disruption were to go on much longer.  Clarke estimated his carrier alone has lost $50 million since the start of the flight ban lat week.

Dubai airport officials were thrilled today to see a flight arrive from Amsterdam.   Passenger volumes have been down as much as a third at this key regional air hub.

Still with outright flight bans or limitations still in place in the UK and elsewhere, air traffic volume in Europe was only at about 50% of normal levels Tuesday.   At least 8 more Emirates flights to the UK were cancelled.

Emirates like other airlines are operating tactically, heading to major airports that are ramping up operations like Paris’ Charles de Gaulle and avoiding the still-closed London Heathrow.

This gradual “lift-off” of air travel means many of those 8,000 transit passengers remain stuck in Dubai.  Hoteliers here aren’t complaining. They’ve seen occupancy levels soar accommodating the grounded travelers.

One hotel operator IS upset, though.    The owners of the Armani hotel, the first of a chain planned by the Italian designer Girogio Armani, had to postpone its grand opening at the Burjh Khalifa tower planned for this week until later this month due to lack of glitterati.

One star who was happy to make his way OUT of Dubai, though, was Tom Jones.   He performed here over the weekend and the “What’s New Pussycat” crooner managed to sneak away to an undisclosed destination.

As for a Fox News team, also grounded for the last few days in Dubai, they managed to secure air travel which should see them back at their London home base by mid-week. 

We should, add, however, as they do in this part of the world, “Inshallah,” or, “God-willing.”

DUBAI Thousands of stranded air travelers here in Dubai are hopeful Monday as it appears the air travel restrictions in Europe due to the Iceland volcanic ash cloud are easing. 

Over 80,000 passengers for the region’s biggest airline, Emirates, have been effected by the disruption.   Emirates management says it has been losing $10 million dollars a day during this period.    That includes covering hotel and food costs for 6,000 travelers here in Dubai caught out in the first days of the crisis.

The combination of successful test flights over the weekend by European carriers and the lessening and dissipation of the ash cloud has led to the improvement in the travel picture.

Close to a third of air traffic was allowed to operate Monday in Europe.   And air flight bans in the UK, France and Germany will be eased starting Tuesday.  

Still, the crisis is far from over.   Total lifting of air travel restrictions in Europe has not happened yet.   And it’s estimated it will take days before the thousands impacted will make it to their destinations.

In the meantime, stuck travelers are making the most of it in warm sunny Dubai.

Fox News has learned more test flights relating to ash cloud safety fears have been completed Sunday.

Dutch air carrier KLM tells Fox News it hopes to resume flights “as soon as possible.”

KLM spokesperson Ellen van Ginkel tells us there were “no irregularities” observed connected to the ash cloud following a test flight it ran Saturday at normal altitudes over Holland.

Van Ginkel reveals to Fox News that some of the 9 test flights it is running today from  Duesseldorf Germany to Amsterdam have been completed and will later today detail the results.

KLM tells us they are waiting on permission from EuroControl the EU body regulating air travel in Europe for “permission to fly.”

An official from Eurocontrol tells Fox News they are still examining engine data from yesterday’s KLM flight before they make a pronouncement.

Fox News has been told by an aviation source that German carrier Lufthansa continues to aggressively test flight safety over Europe as well.   It has been reported Lufthansa ran successful low altitude flights yesterday.

Much of the airspace over Europe remains closed due to safety fears relating to the volcanic ash cloud from Icelland Travel curtailment however is costing airlines hundreds of millions of dollars.  In addition to disruption to travel there are new concerns that airlines might need government bail outs if the restrictions continue.

Additionally there are some questions Sunday whether safety concerns relating to the ash cloud are overblown. UK travel expert Simon Calder asked a BBC questioner today whether the ash cloud worries might turn into the “Swine Flu” of aviation.  (Health dangers regarding the recent Swine Flu outbreak did not reach levels feared).

DUBAI,UAE  The effect of the volcanic ash cloud coming from Iceland and hovering over Europe is affecting air travel across the globe. Including here in the Mideast air hub of Dubai, home to the biggest airline in the region, Emirates Airlines. Over 40,000 Emirates passengers have been effected so far, and dozens of flights.

Among those hit, the Fox News team traveling from an assignment in Yemen hoping to connect to London this Saturday.   Not until at least Monday, is the latest word from the Emirates web site. 

And don’t even think of trying to do some strategic forward booking.  We tried, and an Emirates official told us it is blocking new reservations until May 5th! It will only look at re-booking passengers when the “no-fly” zone is lifted in Europe, and the threat to jet engines from the tiny volcanic particles is gone.

Other area airlines like Etihad, Gulf Air, and Qatar Air, all with a lot of traffic to and from the UK and Europe, are equally hard hit. 

Dubai International Airport was a scene of congestion and frustration.  Waits at immigration counters for transiting passengers now grounded lasted at least an hour (we can attest to!).  

It’s costing Emirates a million dollars a day just putting up thousands of stranded passengers.  And as of Saturday, the airline is not even helping out those caught out : They’re on their own  

Hotels in Dubai are at the point of bursting. The place we’re staying at, the Jumeirah Beach Sheraton, boasts 256 rooms and we’re told is 100 per cent “plus” booked out. And its not taking any forward bookings either.  

So, in the meantime, stranded travelers are making the best of it.  Enjoying clear blue Gulf skies…without a speck of ash in sight…for the time being!

The hunt is heating up for US-born terror suspect and cleric Anwar al-Awlaki. 

In its strongest statement yet, a diplomat for the Yemen government told Fox News it considers Awlaki a “fugitive” and wants him for questioning regarding “recent ties with Al Qaeda figures.”

The diplomat also told Fox Yemen Yemen is “addressing the findings linking Awlaki” to last year’s Fort Hood shootings and the Christmas bombing attempt. 

It is believed Awlaki is hiding in southern Yemen.

The White House has reportedly signed off on a “kill or capture “ order targeting Awlaki for his terror associations.

A western diplomat in Sana’a has revealed to Fox News Awlaki is now considered to be fully “operational” as a terrorist, and that he is involved in “the recruitment of volunteers, the conception of acts, and their implementation.”

Awlaki is thought to be, according to the diplomat, in the “upper tier” of Yemen’s Al Qaeda chapter, Al Qaeda in the Arabian Peninsula.

Now, it appears, both the US AND Yemen have put Awlaki in the “upper tier” of their “Most Wanted” lists.

There are more problems for Pope Benedict.   Documents published  indicate he could be involved in yet another child abuse scandal.

It’s all about a now deceased priest Lawrence Murphy.  There are accusations he abused up to 200 children at a school for the deaf in Wisconsin up until the 1970’s.

After some twenty years in 1996 an Archbishop in Wisconsin informed then-Cardinal Ratzinger in Rome who handled these matters.  There was no response.

Religious proceedings were then pressed against Murphy but then dropped following a letter from priest to Ratzinger.

There was no apology this week from the Pope   Just a strong defense in the form of a Vatican statement.

Rome claims Wisconsin authorities didn’t act against priest. Church law doesn’t specify any exact penalties

The Wisconsin Archdiocese didn’t tell Vatican until long after the incidents.

And by the time attention was paid Murphy was old and sick.

Of course all this comes time when the Pope is dealing with range of abuse scandals including in Ireland and Germany. Probably the last thing the Vatican needed was another publicity flare-up.