Morning Brief, Friday, August 10

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Asia

Pakistan's President Musharraf almost declared a state of emergency, but a 2 AM phone call from Condi may have stopped him. Meanwhile, President Bush calls for free and fair elections in Pakistan, which could be a big mistake.

While the rest of the world is busy fixing an economic crisis, China's trade surplus gets bigger, reaching its second-highest level to date.

At least 57 are dead after clashes between suspected militants and military forces in the Philippines.

Middle East

The Bush administration wants the UN's help with a series of talks in Baghdad between the US and Iraq's neighboring countries.

Gaddafi's son admits that the five Bulgarian nurses and one Palestinian doctor held in Libya for eight years were tortured.

The UN warns that Gaza will face a severe economic meltdown and "disastrous consequences" if border crossing are not reopened.

Europe

The US sub-prime lending debacle went global. France's largest bank suspended three of its investment funds and the European Central Bank injected $130 billion into the economy to keep rates in check. Other central banks around the world followed suit.

Russia resumed Cold War-style air patrols over NATO and US Territory.

Sarkozy goes globe-hopping, while the Pope tries to get as far away from an anti-Semitic priest as possible.

Elsewhere

Uncertainty about the global economy tops the news. Before he heads off to Kennebunkport, President Bush says that everything should be just fine, but not everyone agrees. Paul Krugman writes there is nothing policymakers can do about this. If, like me, you are wondering just how we got into this mess in the first place, you can learn more about the liquidity crisis here.

South Africa fires its health minister, but she says it's because she criticized hosptial conditions.

Today's Agenda

• The UN's mandate in Iraq is set to expire. The security council is expected to vote today to continue and expand the Iraq mandate. 
• Discussions on the fate of Western Sahara continue today.
• Fresh talks over Kosovo's status between US, EU, Russian, and Serbian officials are planned.

Yesterday on Passport

• China threatens the "nuclear" option
• Private equity: "It's kind of like sex"
• No carbon here: Abu Dhabi's carbon-free city