2009-07-03 06:19:03 -

NEW THIS DIGEST
AFGHANISTAN. Marines exchange fire with Taliban in searing heat.
HONDURAS-COUP. OAS head pessimistic Honduras coup leaders will quickly restore president.
US-HONDURAS-ANALYSIS. Analysis: US leverage small in Honduran coup.
MYANMAR. UN chief in Myanmar to lobby for Suu Kyi's release.
NKOREA-MISSILE. NKorea fires missiles; launch toward US feared.
US-GUANTANAMO DOCUMENTS. Newly released documents describe chaos, torture allegations in Guantanamo's early months.
LIBYA-AU SUMMIT. African leaders launch «African Unity» as first step to hypothetic continent-wide federation.
MEXICO-SWINE FLU. World health officials tackle swine flu pandemic, spreading in Southern Hemisphere, Europe.
MICHAEL JACKSON. Lawyer: Rowe deciding whether to seek custody.
OBAMA-AP INTERVIEW. Obama to tell Putin: Time to move past Cold War.
VENEZUELA-NATIONALIZATION. Bank purchase increases state control in Venezuela.
TOP STORIES
AFGHANISTAN
NAWA, Afghanistan _ U.S. Marines suffer their first casualties of a massive new military campaign as they engage in sporadic gunbattles along 55 miles (88 kilometers) of Taliban-controlled heartland in southern Afghanistan. Moved. By Jason Straziuso. AP Photos. AP Graphic.
WITH: US-AFGHAN-SOLDIER CAPTURED; GERMANY-AFGHANISTAN
HONDURAS-COUP
TEGUCIGALPA, Honduras _ A top diplomat says he is heading to Honduras to demand the return of the president toppled at gunpoint _ a mission he says is likely to meet rejection, bringing diplomatic and economic punishment for the impoverished Central American nation. By Will Weissert and Bert Wilkinson.
US-HONDURAS-ANALYSIS
WASHINGTON _ The coup that deposed the president of Honduras exposed the small leverage that even millions of dollars in aid and longtime military cooperation will buy. By National Security Writer Anne Gearan.
MYANMAR
YANGON, Myanmar _ The U.N. secretary-general says he will lobby Myanmar's junta chief directly for the release of pro-democracy leader Aung San Suu Kyi, acknowledging that his high-profile mission will be «very difficult.» Developing. By John Heilprin.
NKOREA-MISSILE
SEOUL, South Korea _ South Korea says it is closely monitoring North Korean military sites to see if the the communist nation launches more missiles in coming days after firing four short-range ones off its eastern coast. Lead by 0430 GMT. By Kwang-tae Kim. AP Photos. AP Graphic.
WITH: US-NORTH KOREA MISSILE; NKOREA-MISSILE-TIMELINE
FRANCE-CRASH INVESTIGATION
LE BOURGET, France _ Air France Flight 447 slammed into the Atlantic Ocean, intact and belly first, at such a high speed that the 228 people aboard probably had no time to even inflate their life jackets, French investigators say in their first report into the June 1 accident. By Greg Keller and Emma Vandore. AP Photos.
YEMEN-PLANE CRASH
LE BOURGET, France _ A severely bruised young girl believed to be the only survivor of an Indian Ocean plane crash has flown back to Paris, where she was embraced gently by her father, who tried to lift her spirits with a joke. By Michel Euler and Tom Maliti. AP Photos.
MICHAEL JACKSON
LOS ANGELES _ Deborah Rowe, the ex-wife of Michael Jackson and the mother of two of his children, has not reached a final decision on whether to seek custody of the children, a lawyer said. By Entertainment Writer Anthony McCartney. AP Photos NYET735, CAMM106, NYJD208, NYDG107, CAMR105, NY109, CAJH102.
LIBYA-AU SUMMIT
SIRTE, Libya _ Concluding marathon talks late into the night, African leaders agreed Friday to a Libyan-driven push to transform the African Union and in theory greatly extend its powers. By Alfred De Montesquiou. AP Photos NN120, NN112, NN1102.
CHINA-ANNIVERSARY WOES
BEIJING _ Until last week, Alice Li's summer plans were simple: work part-time at a convenience store, study for graduate exams and go to the amusement park with friends. The upcoming celebration of 60 years of communist rule in China has changed all that. For many students in Beijing, the summer holidays will instead center around government-mandated drills for an elaborate parade to mark the Oct. 1 event. Moved. By Audra Ang. AP Photos.


MEXICO-SWINE FLU
CANCUN, Mexico _ Swine flu is running wild in the Southern Hemisphere and is spreading rapidly through Europe, with Britain projected to reach 100,000 daily cases by the end of August. The virus is even showing signs of rebounding in Mexico. By Olga R. Rodriguez.
US-GUANTANAMO DOCUMENTS
WASHINGTON _ Newly released Defense Department documents and memos about the first years of operation of the jail at the U.S. Guantanamo Bay Naval Base portray a chaotic and sometimes violent operation that its own commanders described as dysfunctional. By Pamela Hess and Nedra Pickler.
INDIA-GAY RIGHTS
NEW DELHI _ New Delhi's gay community celebrates a landmark court ruling decriminalizing homosexuality _ a decision that could end widespread police harassment and be a harbinger for gradual acceptance of homosexuals across this deeply conservative country. Moved. By Muneeza Naqvi. AP Photos.
OBAMA-AP INTERVIEW
WASHINGTON _ Days from his first Moscow summit, President Barack Obama declared that former Russian President Vladimir Putin «still has a lot of sway» in his nation and needs an in-person reminder that the Cold War is over. By White House Correspondent Jennifer Loven. AP Photos DCPM103, DCPM105, DCPM107, DCPM108, DCPM101, DCPM102.
BUSINESS & FINANCE
WORLD MARKETS
HONG KONG _ Asian stocks retreat in early trade after the U.S. lost more jobs than expected last month, dousing hopes of a quicker end to recession in the world's largest economy. Tokyo and Hong Kong markets drop about 1 percent. By 0430 GMT. By Jeremiah Marquez.
VENEZUELA-NATIONALIZATION
CARACAS, Venezuela _ President Hugo Chavez is taking a big step toward increasing state control over the economy by nationalizing Venezuela's third-largest bank, bringing more than one-fifth of bank deposits into the socialist government's growing portfolio. By Fabiola Sanchez.
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