Israel frees Palestinians as talks gesture

US Secretary of State John Kerry says Israeli and Palestinian negotiators will resume peace talks. Source: AAP

ISRAEL says it will release some Palestinian prisoners as a "gesture", as the two sides agreed to meet to pave the way for their first direct talks in three years.

The announcement came hours after US Secretary of State John Kerry told reporters in Amman late on Friday that Israeli and Palestinian negotiators had laid the groundwork to resume the frozen peace talks.

Kerry said that as a first step Palestinian negotiator Saeb Erakat and his Israeli counterpart Tzipi Livni would meet him in Washington "to begin initial talks within the next week or so".

The last round of direct talks broke down in 2010 over the issue of Israeli settlements in the West Bank and east Jerusalem. The issue of continued expansion of Jewish settlements remains one of the biggest stumbling blocks between the two sides.

On Saturday, Israeli Intelligence Minister Yuval Steinitz said his government would engage in the staged release of a "limited number" of prisoners, some of whom have been in Israeli jails for 30 years.

Steinitz provided no other details but said "there will definitely be a certain gesture here".

Kerry's announcement came after he spent four days consulting the Israeli and Palestinian leadership from his base in an Amman hotel and a late Friday helicopter dash to the Palestinian Authority in Ramallah.

Just minutes before boarding a plane to fly home, Kerry told reporters both sides had reached "an agreement that establishes a basis for resuming direct final status negotiations".

"This is a significant and welcome step forward," he added, having doggedly pushed the two sides to agree to resume talks in six intense trips to the region since becoming the top US diplomat in February.

But he warned that the issues separating the sides were "difficult" and "complicated".

A US State Department official said Kerry had wrenched a commitment from both sides "on the core elements that will allow direct talks to begin".

The Israelis and Palestinians remain far apart on final status issues including the borders of a future Palestinian state, the right of return of Palestinian refugees, and the fate of Jerusalem which both want as their capital.

Palestinian president Mahmud Abbas has also repeatedly called for a freeze to Israeli settlement building and a release of prisoners.

Analysts cautioned against reading too much into the latest developments.

Chico Menashe, diplomatic commentator for Israeli public radio, likened the situation to "a half-baked cake Kerry removed from the stove. Kerry convinced the Israelis and Palestinians it was edible, and both sides agreed to eat it."

Gal Berger, Palestinian affairs correspondent for Israel's public radio pointed to the fact that Yitzhak Molcho, the personal envoy of Prime Minister Benjamin Netanyahu, has already been holding talks with Erakat, which were still ongoing.

"Now Livni is being added, but it is still not a meeting at the level of the leaders (Netanyahu and Abbas)," he said.

Predictably, the Islamist Hamas movement which runs the Gaza Strip rejected a return to talks, its spokesman Sami Abu Zuhri saying Abbas had no legitimate right to negotiate on behalf of the Palestinian people.

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Shop alone ban for women in Pakistan area

TRIBAL elders and Islamic clerics in northwest Pakistan have barred women from shopping in bazaars without a male relative.

The decision was taken on Friday in the Karak district of conservative Khyber Pakhtunkhwa province, which borders the restive tribal areas along the Afghan border.

"We have decided that women will not visit bazaars without a male relative," said Maulana Mirzaqeem, a cleric and tribal elder.

"Those who will visit markets without male relatives will be handed over to police."

"They spread vulgarity and spoil men's fasting in Ramadan," Mirzaqeem said, adding that the ban would be publicised using loudspeakers at local mosques.

The decision had been taken due to the sanctity of the holy month, the cleric said - it is not clear whether the ban will be lifted after Ramadan.

A senior government official in Karak confirmed the move.

Taliban threats and social taboos have deprived millions of women of their rights in Pakistan.

In most parts of the northwestern tribal areas, women are confined to their homes and do not go shopping or work outside.

Pakistani women in much of Khyber Pakhtunkhwa cover their heads and bodies, either with salwar kameez and scarves, or head-to-toe burqas.

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Tutu pays tribute to Mandela after visit

Nelson Mandela was visited by fellow peace laureate, archbishop Desmond Tutu (pic). Source: AAP

A DAY after turning 95, Nelson Mandela was visited by fellow peace laureate, archbishop Desmond Tutu, who praised him for continuing to inspire the world even from his sickbed.

"We have a special gift in a man who can unite not only South Africa but the world, even from his sickbed," Tutu told journalists on Friday outside a Pretoria hospital where the anti-apartheid icon is critically ill.

Tutu said he found Mandela asleep but managed to hold his hand.

"He inspired us to become a great country and the world to become compassionate," he said.

Tutu also read the messages of support posted by the public on the wall of the MediClinic Hospital.

Mandela celebrated his 95th birthday on Thursday, six weeks after he was admitted in hospital for treatment for a respiratory condition. The much-loved icon spent the day surrounded by his family in hospital and also received a visit from President Jacob Zuma and other prominent politicians.

Mandela's granddaughter Ndileka described him as "steady and improving."

His condition had in the last two weeks said to have been "precarious".

Mandela's birthday, which was in 2010 declared by the United Nations as the International Mandela Day, is dedicated to good causes.

People are urged to spend 67 minutes of their time doing charity work. The number symbolises the years Mandela spent in politics.

Mandela was rushed to hospital on June 8 with a recurring lung infection that had already put him in hospital three times in less than a year.

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Berlusconi allies guilty over prostitutes

A Milan court has found three of Silvio Berlusconi's associates guilty of procuring prostitutes. Source: AAP

A MILAN court has found three of Silvio Berlusconi's associates guilty of procuring prostitutes - including the then underage Ruby - for racy parties held at the former Italian premier's villas.

Failed showbusiness agent Lele Mora and television host Emilio Fede were sentenced on Friday to seven years each in jail, while showgirl-turned-politician Nicole Minetti was given five years behind bars.

Among the girls allegedly recruited by the trio for parties at billionaire Berlusconi's villas was Moroccan-born Karima El-Mahroug, a then 17-year-old exotic dancer nicknamed "Ruby the Heart Stealer".

Berlusconi was sentenced in a separate trial in June to seven years in jail for paying for sex with Ruby and abusing his power to hide the liaison - though the punishment was suspended on appeal.

The Milan court on Friday banned Moro and Fede for life from holding public office and working with minors, while Minetti was given a five-year ban on holding public office.

All three were ordered to pay court costs.

In his summing up speech in May, prosecutor Pietro Forno said the three had arranged "orgies" at Berlusconi's mansion and cited the tycoon's ex-wife Veronica Lario, who accused her then husband of consorting with "young virgins".

His colleague Antonio Sangermano said the three were like "tasters of fine wine" and had obtained financial advantages from Berlusconi because "they know all the secrets" of those nights.

"They carried out a sort of exam of the capacities of the young women and then injected them into the circuit of soirees," Sangermano said. Minetti was also an active participant and "performed sexual acts for money," he said.

All three denied the charges, insisting that while they may have invited girls to the premier's Milan villas, it was to attend nothing more than elegant dinner parties.

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Court convicts five over Costa Concordia

AN Italian judge has accepted plea bargain agreements for four Costa Concordia crew members and a manager from owners Costa Crociere, in the first legal punishments for last year's shipwreck.

Deputy commander Ciro Ambrosio, third officer Silvia Coronica, helmsman Jacob Rusli Bin, cabin service manager Manrico Giampiedroni and Costa Crociere crisis co-ordinator Roberto Ferrarini were indicted for manslaughter and causing serious injuries.

Ferrarini, who had been accused of delaying rescue operations in a bid to minimise damage to the company's reputation, was handed a 34-month jail term, the longest sentence.

Giampiedroni was given a 30-month term.

Ambrosio, Coronica and Indonesia-born Rusli Bin - who allegedly failed to understand orders from captain Francesco Schettino - had also been indicted for causing a shipwreck.

They were handed jail terms of 23, 18 and 20 months respectively.

In a plea bargain, defendants admit their guilt in return for lowered punishments whose length is usually agreed on by the prosecution and defence, and approved by a judge. They thus avoid facing trial.

Saturday's decision left Schettino as the sole defendant in court proceedings that started this week in Grosseto, central Italy.

He faces multiple charges including manslaughter, shipwreck and abandoning his vessel.

Prosecutors say he could face up to 20 years in jail.

Schettino's lawyers argue that the captain - who was portrayed as a coward by international media after it emerged that he had abandoned the ship before all the passengers had been evacuated - is being made a scapegoat.

They claim that other people's blunders and security shortcomings on the Concordia are being overlooked.

This week, the lawyers renewed calls for Schettino to also be granted a plea bargain, suggesting a jail term of three years and five months, but prosecutors opposed the bid.

The Concordia hit a reef and ran aground off the island of Giglio on January 13, 2012, after it was steered dangerously close to the coast, killing 32 of its 4229 passengers.

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Poachers kill two Kenyan wildlife rangers

Two Kenyan wildlife rangers have been killed in a gun battle with suspected elephant poachers. Source: AAP

TWO Kenyan wildlife rangers have been killed in a gun battle with suspected elephant poachers, the Kenya Wildlife Service (KWS) said Friday.

A gang of poachers armed with AK-47 rifles opened fire on several rangers on Thursday in the Kipini Conservancy, a private game reserve on Kenya's coast.

Two rangers were killed, according to the state-run conservation group.

Poaching has increased dramatically in the East African country in the past two years due to rising demand for ivory in East Asia.

This year alone, more than 160 elephants have been killed for their tusks.

Since December 2011, six KWS rangers have been killed by poachers, the group said.

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Elderly woman critical after home fire

AN elderly woman is critical after suffering a cardiac arrest during a Sydney house fire.

Fire crews were called to the cottage home in Burwood, in the city's inner-west, about 6pm (AEST) on Friday.

They located the woman, aged in her 80s, on the floor unconscious and not breathing, a NSW Fire and Rescue spokesman told AAP.

Emergency crews performed CPR before she was rushed to hospital in a critical condition.

Firefighters searched the entire house but did not find other victims.

The blaze was contained to a bedroom, resulting in minor damage to the home.

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Rudd surprises with hardline boat plan

PRIME Minister Kevin Rudd may have neutralised Labor's biggest policy weakness by declaring Australia will never again receive asylum seekers coming by boat.

The hardline plan to force all boat arrivals to Papua New Guinea for processing and resettlement is aimed at removing incentives for people to take the dangerous journey to Australia.

The boat problem was the last major policy issue for Rudd to resolve, after ticking off Labor party reforms and announcing he would "terminate" the fixed carbon price, ahead of the federal election.

The resettlement plan appears to have taken the coalition by surprise, even though Opposition Leader Tony Abbott admits it's a "very promising development".

It may force Abbott to rethink his own asylum policies, which now appear considerably softer than what Rudd is proposing.

But big questions remain over how much the plan will cost and whether it will smash the people smuggling businesses operating out of Indonesia.

As well, conditions at Australia's Manus Island processing centre in PNG aren't yet up to scratch.

Construction work has been painfully slow, with 215 people currently being housed in temporary tents and former staff at the centre, refugee advocates and the High Commissioner for Refugees describe living conditions as "harsh".

A permanent 600-bed facility isn't due for completion until January.

Litigation could also impede the success of the Australia-PNG deal.

PNG's opposition party has unsuccessfully mounted a legal challenge to the country's Manus Island centre, but that won't stop another challenge.

Australian human rights lawyers may also head to the courts to argue the government is breaching Australia's international obligations under the United Nations Refugee Convention.

Rudd's pledge to review the arrangement in 12 months may also backfire, as it could give people smugglers hope it might be overturned.

As the prime minister has conceded, people smugglers may try to "test our resolve" by bombarding Australia with a wave of boats - before PNG is in a position to accommodate all the new arrivals.

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Hong Kong shares close flat

HONG Kong shares have ended flat, with profit-taking offsetting a positive lead from Wall Street, where the Dow and S&P ended at record highs.

The benchmark Hang Seng Index edged up 17.20 points to 21,362.42 on turnover of $HK47.96 billion ($A6.78 billion) on Friday.

Stocks took their cue from mainland China, where the country's slowing economy dragged down the mainland bourses.

Property shares were among the hardest hit amid worries about the potential expansion of mainland property taxes. China Overseas fell 2.1 per cent to $HK20.75.

Shares of China Resources Power continued to slump, falling 4.5 per cent to $HK16.86.

Chinese shares closed down 1.52 per cent. The benchmark Shanghai Composite Index fell 30.75 points to 1,992.65 on turnover of 87.5 billion yuan ($A15.65 billion). The index lost 2.30 per cent for the week.

Investors continued the sell-off from Thursday after China's finance minister Lou Jiwei said the government will not introduce big stimulus policies this year.

"The government made clear it won't launch any massive stimulus policies, so investors' expectations of a rebound in the domestic economy and the stock market (have been) dashed," Sinolink Securities analyst Tao Jinggang told AFP.

Heavyweight financial shares and property stocks led the declines.

Micro-lender Sunny Loan Top tumbled 8.98 per cent to 8.21 yuan and Pacific Securities slipped 4.14 per cent to 4.86 yuan.

Poly Real Estate slumped 5.57 per cent to 10.18 yuan, while Gemdale lost 5.07 per cent to 6.56 yuan.

Resources shares were also lower, with Baotou Steel Rare-Earth dropping 6.84 per cent to 22.06 yuan and coal producer China Shenhua Energy off 1.12 per cent at 15.92 yuan.

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Kerry in West Bank dash for more talks

Palestinian politicians have rejected John Kerry's proposal for peace talks with Israel. Source: AAP

US Secretary of State John Kerry is dashing to the West Bank to meet Palestinian president Mahmud Abbas as he battles to salvage his Middle East peace bid.

A Palestinian official announced the surprise move after Kerry met twice with Palestinian chief negotiator Saeb Erakat on Friday morning in his Amman hotel.

The whirlwind diplomacy came after the Palestinian leadership in Ramallah rejected Kerry's proposals for a framework to guide the relaunch of peace talks with the Israelis stalled for nearly three years.

Erakat had planned to tell Kerry that a return to talks could not happen based on his plan, a Palestinian official told AFP on condition of anonymity.

"Erakat will inform Kerry that without a clear basis on the 1967 borders, a settlement freeze and a clear position on the release of Palestinian prisoners held by Israel, the Palestinian side thinks there will be no talks," he said.

Their first meeting lasted barely 45 minutes, but Kerry and Erakat then went back into talks which lasted over an hour and half, State Department officials said.

Shortly after the second talks broke up, a Palestinian official told AFP that Kerry was now travelling by Jordanian helicopter to the West Bank to meet Abbas.

The setback to Kerry's peace push came from the governing Revolutionary Council of Abbas's own Fatah movement, which demanded changes to the US plan.

The broader Palestine Liberation Organisation, which also includes leftwing factions less sympathetic towards a compromise, said it was also drawing up a formal response to Kerry's proposals.

Talks have stuttered and started for decades in the elusive bid to reach a final peace deal between the Arab world and Israel.

But they collapsed completely in September 2010 when Israel refused to keep up a freeze on settlement building in Palestinian territories.

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Asian shares mixed after Bernanke comments

ASIAN markets have closed mixed in a muted reaction after US Federal Reserve chief Ben Bernanke said the bank had no plan to wind down its stimulus until the economy is back on track.

The comments, which came as a closely watched report said growth was moderate, helped calm nervous dealers as Wall Street ended in positive territory.

Tokyo rose 1.32 per cent, or 193.46 points, to 14,808.50 as confident forex dealers pushed the dollar back above the 100 yen level, while Sydney added 0.24 per cent, or 11.7 points, to close at 4,993.4.

However, Seoul fell 0.64 per cent, or 12.01 points, to 1.875.48 and Hong Kong dipped 0.12 per cent, or 26.65 points, to 21,345.22 while Shanghai shed 1.05 per cent, or 21.52 points, to 2,023.40.

In the first of his two days of testimony to Congress, Bernanke told Representatives the vast bond-buying program would remain in place until the Fed is happy the economy can stand on its own two feet.

"I emphasise that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course," Bernanke said.

When launching the scheme in September the bank said it would only reel it in when unemployment had fallen to a satisfactory level.

Bernanke said the economy was expanding at a moderate pace and showed solid signs of strength in various areas, a view supported by the Fed's Beige Book report, which was also released on Wednesday.

SMBC Nikko Securities general manager of equities Hiroichi Nishi said: "Bernanke's words were nothing new, but did have a calming effect for those still harbouring jitters about a near-term end of the US easing policy."

The testimony lifted US shares. The Dow added 0.12 per cent, the S&P 500 put on 0.28 per cent and the Nasdaq was up 0.32 per cent.

On forex markets the US dollar broke back above the 100 yen barrier as traders saw the news as a boost for the regional economy.

In afternoon trade the greenback was at 100.25 yen, compared with 99.60 yen in New York late Wednesday, while the euro fetched $US1.3109 and 131.37 yen against $US1.3125 and 130.73 yen.

On oil markets New York's main contract, West Texas Intermediate for August delivery, was down eight cents at $US106.40 a barrel, while Brent North Sea crude for September shed 11 cents to $US108.50.

Gold cost $US1,270.00 per ounce at 0810 GMT (1810 AEST), compared with $US1,286.30 late Wednesday.

In other markets:

- Taipei fell 0.78 per cent, or 64.07 points, to 8,194.88.

- Manila closed 1.12 per cent higher, adding 73.63 points to 6.648.35.

- Wellington fell 0.34 per cent, or 15.59 points, to 4,563.39.

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Malaysian sex bloggers on sedition charge

A MALAYSIAN couple known for a sexually explicit blog have been charged with sedition after they caused outrage by posting a Ramadan greeting on Facebook which showed them eating pork.

Alvin Tan, 25, and Vivian Lee, 24, pleaded not guilty to publishing or distributing a "seditious publication" and two other charges in a Kuala Lumpur district court in Muslim-majority Malaysia on Thursday, a court official said.

They were denied bail and so will be jailed pending trial, she said. The next court date has been set for August 23.

Sedition is punishable by up to three years in jail.

The duo had posted a greeting for the Muslim fasting month of Ramadan on social networking site Facebook last week, showing a poster of them eating pork, which is forbidden in Islam.

They later apologised in a video on YouTube for the posting, which sparked widespread anger. Their Facebook page is no longer accessible.

The other charges were causing disharmony on the grounds of religion and possessing or producing obscene material, which is punishable by up to five years in jail, the official said.

Prime Minister Najib Razak criticised the couple on Wednesday while discussing implementing a new law to replace the colonial-era sedition act, which has been slammed by critics as a tool to crack down on dissent.

"The insolent and impudent act by the young couple who insulted Islam showed that freedom of expression and irresponsible opinion can jeopardise the community," he was quoted by The Star as saying.

Last year Lee, a kindergarten teacher, and Tan, a former law student at the National University of Singapore, sparked outrage in Malaysia and Singapore by posting erotic photographs and videos of their lovemaking as well as close-ups of their genitals on a blog.

The duo, who said they aimed to destigmatise sex, shut down the blog because of family pressure in the conservative countries, where pornography is illegal.

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Quitting refugee convention oppn option

A COALITION government would keep open all options for dealing with asylum seeker boat arrivals including withdrawing Australia from the United Nations refugee convention.

But opposition immigration spokesman Scott Morrison said that would take a year to take effect, when action was needed at once.

Asked if a coalition government would take Australia out of the 1951 convention, he replied that he thought all options had to be kept open.

"If you were to withdraw from the convention it wouldn't take effect for a year. That's the process. What we think we have to do immediately is things that have an impact right now," he told ABC television.

Mr Morrison said boats could be successfully turned back and that was supported by a number of senior former military officers.

"I am very confident about the navy's capacity to get the procedures in place as they did last time for this policy to be effective," he said.

Mr Morrison declined to reveal just how the policy would be applied.

"The smugglers will find out about that when they are confronted," he said.

"This is a war against people smuggling and you have got to approach it on that basis and we will not cease until it is done."

Mr Morrison said in every case on every occasion at every opportunity, a coalition government would put in place a deterrent.

"We will do that all the way back from our border, all the way up through the region, all the way up to the source countries as well. That is the resolve it takes to beat this."

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Navalny: ambitious crusader against Putin

RUSSIA'S charismatic protest leader Alexei Navalny, sentenced to five years in a prison colony, has galvanised the opposition with lacerating attacks on President Vladimir Putin and the Russian elite.

Navalny is a new breed of Russian protest leader who wants to become a player in mainstream politics after building up a huge internet following with sharply written blogs and corruption exposes.

He emerged as the key figure in the mass opposition protests that rocked Russia in the winter of 2011-2012 ahead of Putin's return for a third Kremlin term last May.

But his sentence on Thursday in a controversial embezzlement case, which supporters denounced as ordered by the Kremlin to eliminate a dangerous foe, will disqualify him from taking part in politics.

His sometimes volcanic rhetoric inspired supporters in a way never seen before in post-Soviet Russia, provocatively declaring at a rally in December 2011 that he could muster enough protesters to take the Kremlin.

He has boldly stated an ambition to become president in 2018 polls and "change the country" and also registered to run for mayor of Moscow in September elections.

But both ambitions will be in tatters if the verdict is confirmed on appeal.

Twice jailed briefly for administrative offences during the protests, he is no stranger to tough street talk and told a policeman who roughly arrested him last May that he would prosecute him afterwards.

Navalny has vowed that should he win power he will put in prison his enemies, a pledge that has troubled some liberals who fear a cycle of revenge justice.

"I am sure that sooner or later I will have them jailed," he told Moscow Echo radio in an interview ahead of the verdict hearing.

Since Putin's return for a third presidential term, Navalny has toned down his role in mass rallies and has turned his focus on exposing sleaze among top lawmakers in the ruling United Russia party.

Defiant to the last, just days before the verdict he published a detailed report accusing one of Putin's closest confidants, the head of Russian Railways Vladimir Yakunin, of possessing a vast undeclared business and property portfolio.

It was Navalny who dreamt up the infectious slogan calling United Russia "the party of swindlers and thieves", which it has not managed to shake off.

But held back by the lack of coverage on state television, he has yet to make an impact in the regions beyond his Moscow powerbase and many Russians have no clue who he is.

Even in the Russian capital, just eight per cent said they would vote for him in the mayoral elections and just 32 per cent were even aware of his candidacy.

Navalny, 37, began his anti-corruption crusade in 2007, buying up shares in state-controlled companies and grilling management at their annual general meetings.

Realising the power of the internet well before the Russian elite, he published reports alleging corruption and mass embezzlement at giant enterprises on his Rospil website (Rospil.info), which built up a loyal following.

In his last Live Journal blog post before the verdict, he called on Russians to keep up the fight.

"Simply understand this: there's no one else but you," he wrote. "If you are reading this, then you are the resistance."

Navalny makes astute use of the colloquial forms of the Russian language - where plays on words are hugely popular - in a way never dreamt of by any Kremlin official.

Seeking to present himself as an ordinary guy, Navalny lives with his wife Yulia - who has become an increasingly visible presence at his side - in a humdrum and otherwise unremarkable Moscow suburb called Maryino.

"Navalny is someone like you - he is not someone backed by oligarchs and bureaucrats," says his campaign literature for the mayoral elections. "Let's change Russia, starting with Moscow."

Nevertheless, his views on ethnic relations trouble liberals, in particular in such a multi-cultural country like Russia which is home to an estimated 20 million Muslims.

He coined the slogan "it's time to stop feeding" Russia's volatile North Caucasus and has spoken at the ultra-right Russian Marches, behaviour that earlier led to his expulsion from the liberal Yabloko party.

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Troops shoot dead six Kashmir protesters

INDIAN paramilitary forces have shot dead six people protesting against an alleged incident involving troops in a religious seminary in Kashmir, police say.

Troops fired on protesters who had gathered outside a Border Security Force (BSF) station on Thursday in the district of Gool, 230 kilometres south of the main city of Srinagar, two police officers said on condition of anonymity.

"It is mayhem. Six are dead and dozens injured. The death toll could rise further," said one officer.

Protesters clashed with troops over an incident on Wednesday evening in the seminary attached to a mosque in Gool, witnesses said.

The head of the seminary, Qari Shabir, said four BSF troopers came into the seminary looking for militants, at the same time that a caretaker of the seminary was alone reciting prayers for Ramadan.

"They beat him up... That is when Abdul Lateef (the caretaker) raised an alarm and people started to assemble and the word spread," Shabir told AFP by telephone from Gool.

Other local residents said the troops had entered the mosque to complain about the loud recitation of prayers by worshippers during the holy month of Ramadan.

The angry protesters clashed outside the station on Thursday with troops who started firing, witnesses said.

"The BSF soldiers fired indiscriminately, downing protesters left, right and centre," one witness who declined to be identified told AFP by telephone from the nearby village of Dharam.

Kashmir is India's only Muslim-majority state and a long-running separatist insurgency has been a source of perennial tensions between residents and security forces which often spill over into violence.

About a dozen armed rebel groups have been fighting Indian forces in Kashmir since 1989 for independence or a merger with Pakistan.

The fighting has left tens of thousands, mostly civilians, dead.

Nuclear-armed rivals India and Pakistan have each administered part of Kashmir since the partition of the subcontinent after the end of British rule in 1947.

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Microsoft cuts internal divisions

MICROSOFT announced a big internal re-organisation last week, drastically slimming down the number of sub-divisions and teams within it.

CEO Steve Ballmer said it was a "far-reaching realignment of the company" and gave it a name: One Microsoft.

The aim is to act faster, to respond to a rapidly changing market better, to work together as a single (very large) team.

Cynics, of course, might say it was also to regain ground lost to Apple in recent years. You can read Ballmer's memo to staff at www.tinyurl.com/ballmer-memo.

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Two new celebrity Tweeters get it right

"WELCOME to my Twitter account," wrote Prince Andrew, the Duke of York last week, making his debut on the social networking site.

A couple of days later, Manchester United football club joined in the tweeting too, with the message "New era, same spirit. The season starts here. Let's do this."

If you needed any confirmation that Twitter has truly become part of the media establishment, these new members provide it.

What's interesting though is seeing how celebrities and football teams actually use Twitter.

The Duke, like a lot of famous tweeters, has somebody doing most of the work for him. His feed (@TheDukeOfYork) is updated several times a day with news and photos. He's already got over 30,000 followers. It's a good way to stay in touch with a lot of people.

Crucially though, and unlike many celebs, the Duke does occasionally chip in with tweets he's written and posted himself. They're marked with his "AY" initials at the end. This is great because it shows he's got the keys to the account. Maybe he fishes a phone out of his pocket to send a quick update, just like the rest of us.

Manchester United, meanwhile, uses its account (@ManUtd) like a traditional newswire. There's a lot of news to get out to a huge number of fans - it already has more than 397,000 followers - and it acts as the voice of the Club. That's quite a difficult job to do.

Every big organisation finds it hard to speak with one voice, especially when there are a lot of people in charge of different things.

United's feed is working well so far, because it's an informal but informative mix of news, fixtures, quotes, photos and gags. And that's exactly what Twitter is all about; not so much a corporate voice, but a comprehensive one.

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China's toll from Typhoon Soulik mounts

AT least 295 people have been confirmed dead or missing after rainstorms and Typhoon Soulik hit China, causing floods, landslides and buildings to collapse, the government says.

Torrential rains have battered the southwestern province of Sichuan since July 7 and have led to 68 deaths, with another 179 people missing, the ministry of civil affairs said in a statement on Monday.

Another 41 deaths and two missing were reported from other parts of the country due to heavy downpours and mountain torrents, according to the ministry.

Three more were killed and two were missing in Guangdong province in the south after Soulik lashed the Chinese coastline on Saturday, it added.

A scenic area in Guangxi was closed and managers detained after eight people were killed in a flash flood when a dam collapsed upstream, the official Xinhua news agency reported on Monday.

Officials were calculating the cost of the typhoon, it added, with the Zhejiang city of Wenzhou alone facing a direct economic loss of 210 million yuan ($A37.65 million).

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Hong Kong shares end 0.12% higher

HONG Kong and Shanghai stocks rose on Monday after Chinese economic growth data for the April-June quarter came in as forecast.

Hong Kong's benchmark Hang Seng Index added 0.12 per cent, or 26.03 points, to 21,303.31 on turnover of HK$45.98 billion ($A6.57 billion).

Beijing's statistics office said gross domestic product (GDP) grew 7.5 per cent year-on-year in the second quarter, in line with a median forecast by economists questioned by AFP.

While the figures show second consecutive slowdown, investors were pleased it was not worse than expected.

Brokerages rallied, with Shenyin Wanguo closing up 2.8 per cent at $HK2.60 while China Galaxy rose 1.5 per cent to $HK4.83.

But utilities declined, with Hong Kong & China Gas falling 1.3 per cent to $HK19.40 and Power Assets declined 0.8 per cent to $HK68.65.

Chinese shares closed up 0.98 per cent. The Shanghai Composite Index rose 19.90 points to 2,059.39 on turnover of 88.0 billion yuan ($A15.83 billion).

"The GDP number pretty much confirmed what investors had expected, that China's economy is slowing down," Changjiang Securities analyst Wu Bangdong told Dow Jones Newswires.

"But investors still hope that there might be some supportive policies."

Financial stocks led the gains. China Citic Bank rose 4.27 per cent to 3.91 yuan and Haitong Securities advanced 3.98 per cent to 10.98 yuan.

Media and entertainment shares rose on bargain hunting. Zhejiang Daily Media Group jumped 6.25 per cent to 28.03 yuan while Chinese Universe Publishing and Media gained 3.30 per cent to 19.08 yuan.

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France vows to punish Mali hostage killers

A body found in northern Mali may be that of Philippe Verdon (R) kidnapped by al-Qaeda in 2011. Source: AAP

FRENCH President Francois Hollande says there is a "very strong" chance that a body found in northern Mali is that of a French hostage and vowed the killing would not go unpunished.

Philippe Verdon, who was kidnapped by al-Qaeda in the Islamic Maghreb (AQIM) from a hotel while on business in northeastern Mali in November 2011, was already believed to be dead.

His captors announced in March that the 53-year-old had been executed in response to France's military intervention in Mali.

"We found a body 10 days ago in northern Mali, we are doing everything possible to confirm that this could be, alas, the body of Philippe Verdon," Hollande said at Mali's embassy to Paris, where he was awarded the highest rank in the country's National Order on Monday.

"We will then determine the cause of death and nothing will go unpunished," Hollande said.

AQIM is holding hostage eight Europeans, including five French nationals.

French forces intervened in Mali in January to help the weak Malian military drive out Islamist rebels who had seized control of the country's north.

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