An update from London on some of the international stories we expect to develop on Friday:

N. Korea accuses Seoul: Tensions between North Korea and South Korea escalated Friday, a day after Seoul blamed the North for sinking one of its warships in March. Full story

Thailand works to restore order after clashes: Police "rapid-response" teams comb the streets of Bangkok to prevent further disruption following clashes between anti-government protesters and troops. Full story

BA announces record losses: British Airways has posted a pre-tax loss of $765 million. It does not take into account losses incurred from the travel disruption caused by the volcanic ash cloud or strike action taken by some workers. Full story

Sarkozy, Merkel agree on financial approach: French president Nicolas Sarkozy says there is no dispute with German chancellor on how to handle Europe’s economic troubles. Full story

Reports: Bansky stolen from star’s home: UK media say that a portrait by Banksy was among artwork taken from the London residence of model Kate Moss.

Do kids write less? Letter-writing appears to be a dying among children, a survey by the charity World Vision has found. A quarter of kids haven't written a letter in the past year, it found.