TEL AVIV (Reuters) - Elder statesman Shimon Peres lost the leadership of Israel's Labour Party on Thursday in an upset election victory for a trade union chief who vowed to end an alliance keeping Prime Minister Ariel Sharon in power.

WASHINGTON (Reuters) - The United States and European allies would allow Iran to pursue limited nuclear activities under a proposal they hope will head off a confrontation over Tehran's suspected nuclear weapons program, The New York Times reported in its Thursday edition.

WASHINGTON (Reuters) - Iraqi deputy prime minister Ahmad Chalabi was welcomed on Wednesday by a U.S. administration that once shunned him, sparking denunciations by critics who blame him for discredited pre-war intelligence.

WASHINGTON (Reuters) - President George W. Bush praised the influence of Federal Reserve Chairman Alan Greenspan and boxing legend Muhammad Ali as he honored them on Wednesday with the Presidential Medal of Freedom, the country's highest civilian award.

Reuters - Right on the main aisle, next to the colored pencils and stuffed toys, a French hypermarket set up a rack of Korans, Muslim prayer collections and books to explain Islam to children.

AFP - The United States has called for North Korea to act immediately in dismantling its nuclear weapons program, after the Stalinist regime put forward another go-slow approach at six-party talks in Beijing.

AP - Suicide bombers carried out nearly simultaneous attacks on three U.S.-based hotels in the Jordanian capital Wednesday night, killing at least 57 people and wounding 115 in what appeared to be an al-Qaida assault on an Arab kingdom with close ties to the United States.

AP - Two suicide bombers detonated themselves near a restaurant frequented by Baghdad police Thursday morning, killing at least 33 people and injuring 19, police said.

Reuters - A suicide bomber killed 35 people and wounded at least 25 more in a crowded restaurant in central Baghdad frequented by security forces during breakfast on Thursday morning, police said.

Reuters - Iraq's al Qaeda said on Thursday it had carried out the bomb attacks on three international hotels in Amman which killed at least 57 people.

Reuters - Shimon Peres was ousted as leader of Israel's Labour Party on Thursday in an upset victory for a trade union chief whose vow to end a ruling alliance with Prime Minister Ariel Sharon could trigger early elections.

AFP - Jordan was hunting the masterminds of the worst terror strikes in the kingdom's history that killed 57 people, with the authorities refusing to rule out a link to homegrown militant Abu Musab al-Zarqawi.

AFP - Indonesia confirmed that master bomb-maker and Islamic radical Azahari Husin, one of Asia's top terror suspects and most wanted men, was killed in a shootout with police.

AP - Al-Qaida claimed responsibility Thursday for three suicide bomb attacks on Western hotels that killed at least 56 people in the Jordanian capital, and the terror group's Web posting linked the deadly blasts to the war in Iraq.

AP - Two suicide bombers detonated themselves near a restaurant frequented by Baghdad police, killing at least 33 people and seriously injuring 19, police said.

AP - Two cases of bird flu have been detected in fowl in Kuwait, a senior official said Thursday, the first evidence the virus has spread to the Persian Gulf region.

AP - Dwane Casey has brought a defensive mind-set to the Minnesota Timberwolves this season, and it's paying off. Minnesota beat the Los Angeles Lakers 88-74 on Wednesday night and snapped Kobe Bryant's 30-point game streak at four games.

Reuters - A suicide bomber wearing an explosive vest blew himself up in a crowded Baghdad restaurant frequented by the security forces during breakfast on Thursday, killing 35 people and wounding at least 25 more, police said.

Reuters - Iraq's al Qaeda group claimed responsibility on Thursday for suspected suicide bombings on luxury hotels in U.S. ally Jordan that killed 57 people and wounded 110.

Reuters - President Bashar al-Assad said on Thursday Syria would cooperate fully with a U.N. probe into the killing of a former Lebanese prime minister but held little hope that it would avert pressure on Damascus.

Reuters - Indonesian police on Thursday confirmed one of Southeast Asia's most wanted militants had been killed during a gunbattle with police, saying he tried to blow himself up but failed to detonate a bomb in time.

AP - Al-Qaida claimed responsibility Thursday for three suicide bomb attacks on Western hotels that killed at least 56 people, linking the deadly blasts to the war in Iraq and calling Amman the "backyard garden" for U.S. operations.

AP - France's worst civil unrest in decades abated a day after the government toughened its stance by imposing emergency measures and ordering deportations of foreigners convicted of taking part in the riots that have raged for two weeks.

AP - Two suicide bombers blew themselves up near a restaurant frequented by Baghdad police, killing at least 33 people and seriously injuring 19, while a car bomb killed seven army recruits in Saddam Hussein's hometown, police said.

AP - The House of Commons' vote to quash Tony Blair's anti-terror legislation dealt the prime minister his first-ever defeat — an embarrassing setback that raises doubts about his political future.

AP - A judge ruled that a former security guard who was fired for seeing ghosts cannot be denied unemployment benefits.

AP - A House committee's report on whether former Baltimore Orioles slugger Rafael Palmeiro lied under oath when he denied taking steroids was to be released Thursday, a day after he publicly offered a possible explanation for his failed drug test.

Reuters - The Qaeda group led by America's deadliest foe in Iraq on Thursday claimed bombings that ripped through luxury hotels in Jordan's capital and killed 57 people.

Reuters - Iraq's al Qaeda said on Thursday it had carried out a suicide bomb attack at a Baghdad restaurant that killed 35 people, according to an Internet statement.

Reuters - President Bashar al-Assad promised on Thursday to cooperate with a U.N. inquiry into the killing of a former Lebanese prime minister, but said Syria would not sacrifice its own national interest in the process.

Reuters - Iran is not being fully open with U.N. inspectors about its nuclear program and may still be hiding something from the international community, Germany's designated foreign minister said on Thursday.

AFP - The group of Al-Qaeda's Iraq frontman Abu Musab al-Zarqawi claimed the Amman hotel bombings and vowed to pursue attacks on Jordan for providing a "protective wall" for Israel and US-led forces in Iraq.

AFP - The violence that has wracked France's city suburbs for two weeks has shown clear signs of being on the wane, as police reported another decrease in the number of overnight incidents.

AFP - The Bank of England left its key interest rate steady at 4.50 percent for the third month in a row.

AP - Hundreds of angry Jordanians rallied Thursday outside one of three U.S.-based hotels attacked by suicide bombers, shouting, "Burn in hell, Abu Musab al-Zarqawi!" after the terrorist's group claimed responsibility for the blasts that killed at least 56 people.

AP - Violence in France fell sharply overnight, the police chief said Thursday, one day after the government toughened its stance by imposing emergency measures and ordering deportations of foreigners involved in riots that have raged for two weeks.

AP - Two suicide bombers blew themselves up Thursday in a restaurant frequented by police, killing at least 33 people and seriously injuring 19, while a car bomb killed seven army recruits in Saddam Hussein's hometown, police said.

AP - A Boeing Co. jet arrived in London on Thursday at the end of an attempt to break the record for the longest nonstop flight by a commercial jet.

AP - Prime Minister Tony Blair withstood severe criticism Thursday over his first-ever legislative defeat and slapped back at Parliament, accusing lawmakers of failing to take the threat from terrorism seriously enough.

AP - It would seem to be lights out for Shannon on "Lost." The spoiled Daddy's girl was apparently killed off Wednesday night as the ABC thriller made good on its promise to eliminate one of its characters.

Reuters - North Korea must halt its nuclear weapons program now to show it is taking negotiations on disarmament seriously, the United States said on Thursday on the second day of six-party talks in Beijing.

Reuters - A suicide bomber blew himself up in a crowded Baghdad restaurant frequented by the security forces at breakfast time on Thursday, killing 35 people and wounding 25 in an attack claimed by al Qaeda in Iraq.

Reuters - Secretary of State Condoleezza Rice left for the Middle East on Thursday with aims of reviving Arab-Israeli peace hopes and bolstering a U.S. campaign to spread democracy in the region, despite Israeli political turmoil and deadly hotel bombings in Jordan.

AP - At least one American was among the 56 people killed by suicide bombers in attacks on three U.S.-based hotels Wednesday night, a U.S. Embassy official said Thursday. At least two other Americans were wounded. The victims were not identified. The official spoke on condition of anonymity in accordance with embassy rules.

AP - Violence in France fell sharply overnight, the police chief said Thursday, one day after the government toughened its stance by imposing emergency measures and ordering deportations of foreigners involved in riots that have raged for two weeks.

AP - Two suicide bombers blew themselves up Thursday in a restaurant frequented by police, killing at least 33 people and seriously injuring 19, while a car bomb killed seven army recruits in Saddam Hussein's hometown, police said.

AP - A Boeing Co. jet arrived in London from Hong Kong on Thursday, breaking the record for the longest nonstop flight by a commercial jet. The 777-200LR Worldliner — one of Boeing's newest planes — touched down shortly after 1 p.m. (8 a.m. EST) at London's Heathrow Airport after a journey of more than 11,664 miles. The previous record was set when a Boeing 747-400 flew 10,500 miles from London to Sydney in 1989.

USATODAY.com - New York Times reporter Judith Miller left the paper Wednesday amid concerns about her reporting on weapons of mass destruction in Iraq and lingering questions about why she spent 85 days in jail protecting a source, only to come out and identify him.

AP - Prime Minister Tony Blair withstood severe criticism Thursday over his first-ever legislative defeat and slapped back at Parliament, accusing lawmakers of failing to take the threat from terrorism seriously enough.

AP - The trade deficit soared to a record in September as the Gulf Coast hurricanes helped push America's foreign oil bill to an all-time high. The politically sensitive deficit with China also set a record.

AP - Baseball star Rafael Palmeiro will not be prosecuted on perjury charges after lawmakers said Thursday there isn't enough evidence to prove he lied when he told a congressional panel under oath that he had "never used steroids" — six weeks before failing a steroid test.

Reuters - North Korea must halt its nuclear weapons program now to show it is taking negotiations on disarmament seriously, the chief U.S. negotiator said on Thursday on the second day of six-party talks in Beijing.

Reuters - Syrian President Bashar al-Assad launched a scathing attack against Lebanon's leaders on Thursday, accusing them of turning their country into a hotbed of conspiracy against Damascus.

Reuters - Russia, the United States and the European Union stepped up attempts on Thursday to end months of deadlock over Iran's nuclear program.

AFP - The United States called on North Korea to act immediately to dismantle its nuclear weapons program as six-nation talks on Korean disarmament moved toward a recess with no solution in sight.

AFP - The US trade deficit exploded to a new record high of 66.1 billion dollars in September after hurricanes battered the world's biggest economy.

AP - At least one American was among the 56 people killed by suicide bombers in attacks on three U.S.-based hotels Wednesday night, a U.S. Embassy official said Thursday. At least two other Americans were wounded. The victims were not identified. The official spoke on condition of anonymity in accordance with embassy rules.

AP - A Boeing Co. jet arrived in London from Hong Kong on Thursday, breaking the record for the longest nonstop flight by a commercial jet. The 777-200LR Worldliner — one of Boeing's newest planes — touched down shortly after 1 p.m. (8 a.m. EST) at London's Heathrow Airport after a journey of more than 13,422 miles. The previous record was set when a Boeing 747-400 flew 10,500 miles from London to Sydney in 1989.

AP - Baseball star Rafael Palmeiro will not be prosecuted on perjury charges after lawmakers said Thursday there isn't enough evidence to prove he lied when he told Congress under oath that he had "never used steroids" — six weeks before failing a steroid test.

Reuters - The al Qaeda group led by America's deadliest foe in Iraq claimed responsibility on Thursday for three suicide bombings that ripped through luxury hotels in Jordan's capital and killed 56 people.

Reuters - A suicide bomber blew himself up in a crowded Baghdad restaurant frequented by the security forces at breakfast time on Thursday, killing 35 people and wounding 25 in an attack claimed by al Qaeda in Iraq.

AFP - Jordan rounded up suspects over triple hotel bombings claimed by Abu Musab al-Zarqawi's Al-Qaeda group that killed 56 people, including foreigners, in the deadliest attacks in the kingdom's history.

AFP - President Jacques Chirac said that France needed to learn the lessons from the urban violence that has wracked poor city suburbs for two weeks, as the unrest continued to subside.

AFP - President Bashar al-Assad said he was almost sure of Syria's "innocence" in the murder of former Lebanese prime minister Rafiq Hariri, in a keynote address.

AFP - The US trade deficit exploded to a new record high of 66.1 billion dollars in September as devastating hurricanes sent the country's oil import bill soaring, the Commerce Department said.

AP - Hundreds of angry Jordanians rallied Thursday outside one of three U.S.-based hotels attacked by suicide bombers, shouting, "Burn in hell, Abu Musab al-Zarqawi!" after the terrorist's group claimed responsibility for the blasts that killed at least 56 people. At least one American was killed and two were wounded, the U.S. Embassy said.

AP - Bombers killed 42 people Thursday at a Baghdad restaurant favored by police and an army recruiting center to the north, while Iraqi troops along the Iranian border found 27 decomposing bodies, unidentified victims of the grisly violence plaguing the country.

AP - Scientists have discovered a biological brake for a hunger hormone: a competing hormone that seems to counter the urge to eat.

AP - In the era when dinosaurs ruled the Jurassic earth, a 13-foot oceanic crocodile with a short snout and a mouthful of deadly teeth hunted large creatures in the sea, scientists reported Thursday.

AP - Ashlee Simpson may have followed sister Jessica's lead by launching a singing career, but she's not interested in mirroring her romantic life by linking up with a famous guy.

AP - Chris Carpenter of the St. Louis Cardinals won the NL Cy Young Award on Thursday, capping a satisfying comeback from shoulder surgery that jeopardized his career only a few years ago.

Reuters - Jordan's King Abdullah pledged on Thursday to "pull from their holes" militants behind three suicide bombings that ripped through luxury hotels in Jordan's capital and killed 56 people.

Reuters - U.S. Secretary of State Condoleezza Rice on Thursday denied Washington and its European allies had a proposal that would let Iran pursue limited nuclear activities to try and avoid a confrontation with Iran.

Reuters - Syrian President Bashar al-Assad said on Thursday his country would cooperate with a U.N. inquiry into the killing of a former Lebanese prime minister, but would not sacrifice its own national interests.

Reuters - U.S. Secretary of State Condoleezza Rice on Thursday urged Israel to do more to help the Palestinians before January's elections and said she hoped problems of access to Gaza could be resolved soon.

AFP - Jordan's King Abdullah II vowed to hunt down the perpetrators of the triple hotel bombings claimed by Al-Qaeda that killed 56 people in the deadliest attacks in the kingdom's history.

AP - Senate Democrats sought to force Republicans to take a stand on the increasingly unpopular war in Iraq on Thursday, raising the possibility of requiring President Bush to outline a timetable for a phased withdrawal of U.S. forces.

AP - Two days after suffering a stinging election defeat, a conciliatory Gov. Arnold Schwarzenegger took responsibility for the failure of his initiatives and said he learned that he needs more patience in seeking government reform.

AP - In the early morning sun, 12-year-old Walid Salim strides to the yard of his school, kisses Iraq's flag and hoists it high. At a lunchtime cafe, three 18-year-old friends gather to eye girls and talk cars.

AP - Dell Inc.'s quarterly income disappointed Wall Street for a second straight quarter Thursday as the world's largest personal computer maker saw its income fall on repair and restructuring charges.

Reuters - Republican Sen. John McCain, a major backer of the Iraq war, said on Thursday the Bush administration must make broad changes in its strategy to confront the insurgency in Iraq, and commit more troops and resources to the effort.

Reuters - A Russian plan aimed at satisfying the world that Tehran's atomic aims are peaceful has won tentative backing from the United States and the European Union's top powers, diplomats said on Thursday.

Reuters - Iraqi Vice President Adel Abdul Mahdi on Thursday predicted an upsurge in attacks like the Jordan hotel bombings as militants shift to targets in other Middle Eastern countries.

Reuters - U.S. Senate Judiciary Committee Chairman Arlen Specter urged Supreme Court nominee Samuel Alito on Thursday to avoid a potential controversy by promptly explaining why he ruled in two cases involving firms that helped managed Alito's investments.

AFP - President Bashar al-Assad hit back at international pressure on Syria over former Lebanese premier Rafiq Hariri's murder, protesting its innocence but vowing to cooperate with a UN probe.

AFP - Ellen Johnson Sirleaf looked set to make history as Africa's first female elected president, with just over 10 percent of votes left to be counted in Liberia's run-off election.

WASHINGTON (Reuters) - The House of Representatives intelligence committee, which is examining a series of national security leaks, will investigate a Washington Post story on a secret CIA global prison system, officials said on Thursday.

AMMAN (Reuters) - Jordan's King Abdullah pledged on Thursday to 'pull from their holes' militants behind three suicide bombings that ripped through luxury hotels in Jordan's capital and killed 56 people.

SAN FRANCISCO (Reuters) - A chastened Arnold Schwarzenegger took the blame for his election day drubbing and said on Thursday he would heed the voters' message and work closely with Democrats to solve California's problems.

AP - Thousands of Jordanians rallied in the capital and other cities shouting "Burn in hell, Abu Musab al-Zarqawi!" a day after three deadly hotel bombings that killed at least 59 people. Officials suspected Iraqi involvement in the attacks, which were claimed by al-Qaida's Iraq branch.

AP - Dell Inc.'s quarterly income disappointed Wall Street for a second straight quarter Thursday as the world's largest personal computer maker saw its income dip 28 percent on repair and restructuring charges.

AP - Chris Carpenter was ready to call it quits. Toiling in Double-A two years ago, trying to work his way back from shoulder surgery, he pitched a game in Tennessee just before the All-Star break and couldn't even play catch afterward because his right arm hurt so much.

AFP - The US trade deficit exploded to a new record high of 66.1 billion dollars in September, data showed, intensifying political tension as oil imports surged and Chinese goods flooded in.

AP - Religious broadcaster Pat Robertson warned residents of a rural Pennsylvania town Thursday that disaster may strike there because they 'voted God out of your city' by ousting school board members who favored teaching intelligent design.

AP - The makers of a popular birth-control patch warned millions of women Thursday that the patch exposes them to significantly higher doses of hormones and may put them at greater risk for blood clots and other serious side effects than previously disclosed.

AP - Wal-Mart Stores Inc. on Thursday said it no longer employs a worker who wrote to a shopper that Christmas is a mix of world religions, but that the company does support the generic greeting, 'Happy Holidays,' as being more inclusive amid year-end celebrations by numerous faiths.

Reuters - The U.S. Senate demanded a classified account on Thursday of whether the CIA was running a secret prison system as it debated a bill that would regulate the Bush administration's treatment of military detainees.

Reuters - Republican Sen. John McCain, a major backer of the Iraq war, said on Thursday the Bush administration must make broad changes in its strategy to confront the insurgency in Iraq, and commit more troops and resources to the effort.

Reuters - White House political adviser Karl Rove, still under threat of indictment in the CIA leak probe, made a rare public appearance on Thursday to decry the growth of judicial activism and praise President George W. Bush's conservative court appointments.

PARIS (Reuters) - France started a long holiday weekend on Friday as two weeks of civil disturbances appeared to die down but a police chief said he feared rioters might be planning protests in central Paris.

SINGAPORE (Reuters) - The world's biggest airliner, the European Airbus A380, touched down in Singapore on Friday, completing its first flight to Asia -- the most competitive market for planemaker Airbus and its U.S. rival Boeing.

AP - Sean Connery will receive the American Film Institute's Life Achievement Award, its highest honor for a career in film, the institute announced Thursday.

AP - Four years of frustration flowed out of every heavy hit and every pinpoint pass when Fresno State finally ended Boise State's domination of the Bulldogs and the entire Western Athletic Conference.