Reuters World News Highlights at 1800 GMT, Jan 05

GAZA - Israeli tanks, planes and ground forces pounded Gaza on Monday and the defence minister said the offensive against Hamas militants in the Palestinian enclave would go on until Israel was safe.

- - - -

LONDON - The prospect of tax cuts in Germany and the United States brought investors a measure of New Year cheer on Monday, and a survey of euro zone investor sentiment showed an unexpected improvement.

- - - -

MOSCOW/KIEV - The European Union on Monday scheduled talks with Russia to press for a speedy resolution of a dispute with Ukraine that has hit gas supplies to countries in eastern and southern Europe facing freezing temperatures.

- - - -

NEW DELHI - India handed over evidence on Monday to Pakistan that it said linked Pakistani militants to the Mumbai attacks and demanded a prompt investigation, piling diplomatic pressure on its nuclear-armed rival.

- - - -

BAGHDAD - The United States dedicated its new embassy building in Baghdad on Monday, a step meant to symbolise its transition from occupying power to an ally of a sovereign Iraqi government.

- - - -

ATHENS - Gunmen linked to Greece's most militant guerrillas shot and seriously wounded a policeman in Athens on Monday, weeks after the killing of a teenager by police prompted the worst riots in decades.

- - - -

HARARE - Zimbabwean President Robert Mugabe is expected to form a new government by the end of February despite stalled talks with the main opposition party, the state-run Herald newspaper said on Monday.

- - - -

VIENNA - More countries should offer to take in Guantanamo prisoners to help U.S. President-elect Barack Obama close the detention camp for terrorism suspects, the U.N.'s torture investigator said on Monday.

- - - -

BEIJING - China has launched a crackdown on websites as the country enters a politically sensitive year, with officials accusing search engines including Baidu and Google of spreading pornography and vulgarity.

- - - -

GENEVA - The current head of the World Trade Organisation (WTO), Pascal Lamy, is the only candidate to be the next director-general, since no one has emerged to challenge him for the job, a WTO spokesman said on Monday.