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BBC news 2016-06-02

Hello. I am Fiona MacDonald with the BBC News.

The Iraqi Prime Minister has announced the start of a large military operation to recapture Fallujah from Islamic State fighters, the city which is 65 kilometers west of Baghdad has been controlled by IS for the past two years. James Earl reports. Using his official Twitter feed, Haider al-Abadi said zero hour for the liberation of Falluja has arrived. Speaking on Iraqi television later on Sunday evening, he predicted a great victory for government forces. Early in the day, civilians are warned to leave the area. Iraqi forces virtually surrounded the city and have been heavily reinforced in preparation for assault on several fronts. The operation follows gains elsewhere by Iraqi troops including most recently the capture of the western town of Rutba.

The Greek parliament has approved a series of economic and financial reforms after emergency debate on further austerity measures, the prime minister Alexis Tsipras said he was confident Eurozone creditors will now unlock funds the country need to repay loans. From Athens, here is Yolande Knell. Protesters gathered outside the parliament building, as the latest austerity measures will voted through following four days of emergency debate. Tax rises on a range of goods and services will not be introduced over the next two years and Greek says Athens will gradually be transferred to a new privatisation funds. The Prime Minister Alexis Tsipras is trying to show his sticking to the term of bailout deal, Greece's third in five years that he struck with international creditors last July.

The world largest insurance company Axa says it diverting itself from all its tobacoo related assets. The French Multinational media announcement on the sidelines of the annual World Health Assembly in Geneva. From here, Imogen Foulkes reports. Over half a century after the first government warnings about the health risks of smoking, most of the biggest players in the health insurance market still invest in tobacco. Despite ever stricter regulations on packaging and advertising, People still smoke and tobacco remains a good financial bet. But now Axa the world's largets insurance company, says it will ended investment, getting rid of 1.9 billion dollars of tobacco related equity and bounds.

All direct votes in Austria's presidential election have been counted, but the result is too close to call. Norbert Hofer the candidate of the far-right Freedom Party and the former Green party leader, Alexander van der Bellen are neck in neck. They will have to wait until the hundreds of thousands of postal votes have been counted on Monday. You are listening to the latest world news from the BBC.

President Obama has begun a visit to Vietnam, aimed at strengthening defense and economic ties. He is the third US president to visit since the end of the Vietnam War. From Hanoi, Jonathan Head reports. Vietnam is hoping the US will ease restrictions on sales of military equipment. Trading and investment are also important issues in the poor but rapidly growing economy of 90 million people.

The first World Humanitarian Summit organised by the United Nations begins today in Istanbul. Heads of states, aid agencies and others will discuss the financial response to crisis and held better to distribute aid. President Erdogan of Turkey, who is hosting the summit, has described the international aid system has broken. He is calling for a new machanism for sharing the burden of refugees.

The Libyan coast guards said it intercepted about 850 African migrants attempting to reach Europe in flatable boats, an official said the migrants included 11 pregnant women.
The British director Ken Loach has won the Palme d'Or for best picture at the Cannes Film Festival for his film, I, Daniel Blake about poverty. Having accepted the award, Mr Loach said austerity was a dangerous project driven by what he called new liberal ideas. The festival's Grand Prix went to the Canadian director Xavier Dolan for the movie It's Just the End of the World. Shahab Hosseini from Iran won best actor for his part in The Salesman, a movie which also received the best screen play award. BBC news.