http://css-tricks.com/creating-a-slick-auto-playing-featured-content-slider/
you can integrate it to your theme and edit news and pictures manualy or you can create/edit an existing block from your news modules (I tried to do it with publisher) and copy the same effect to the block.
below the code I added to publisher , I created a new block and added a jquery effect, so maybe it can be useful for you to do yours,
<head>
<link rel="stylesheet" type="text/css" href="<{$xoops_url}>/modules/publisher/css/featuredcontentglider.css" />
<script type="text/javascript" src="<{$xoops_url}>/modules/publisher/js/jquery-1.2.1.pack.js"></script>
<script type="text/javascript" src="<{$xoops_url}>/modules/publisher/js/featuredcontentglider.js"></script>
<script type="text/javascript">
featuredcontentglider.init({
gliderid: "canadaprovinces", //ID of main glider container
contentclass: "glidecontent", //Shared CSS class name of each glider content
togglerid: "p-select", //ID of toggler container
selected: 0, //Default selected content index (0=1st)
persiststate: false, //Remember last content shown within browser session (true/false)?
speed: 500, //Glide animation duration (in milliseconds)
autorotate: true, //Auto rotate contents (true/false)?
autorotateconfig: [3000, 2] //if auto rotate enabled, set [milliseconds_btw_rotations, cycles_before_stopping]
})
</script>
</head>
<div id="canadaprovinces" class="glidecontentwrapper">
<{foreach item=item from=$block.items}>
<div class="glidecontent">
<{if $item.image_path}>
<img src="<{$item.image_path}>" alt="<{$item.clean_title}>" title="<{$item.clean_title}>" width="250"/><br />
<{/if}>
<{$item.titlelink}><br />
<{$item.summary}><br />
</div>
<{/foreach}>
</div>
<div id="p-select" class="glidecontenttoggler" style="font-family: verdana; width:326px; height:19px; font-size:2mm; font-weight:bold; text-align:right">
<a href="#" class="toc">1</a>
<a href="#" class="toc">2</a>
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<a href="#" class="toc">9</a>
<a href="#" class="next">Next</a>
</div>
</div>