PESHAWAR, Pakistan (Reuters) - A suspected U.S. drone fired two missiles on Friday in Pakistan's South Waziristan region on the Afghan border, but there was no word on casualties, a Pakistani intelligence source and a resident said.

AP - President-elect Barack Obama and his family have returned to Chicago from their 12-day holiday in Hawaii.

AP - Falling snow and a high threat of avalanches prompted officials to close three main east-west mountain passes in Washington state on New Year's Day and at least two of the highways were expected to remain shut down into Friday.

AP - Asian stock markets opened 2009 mostly higher Friday, with Hong Kong's benchmark up more than 2 percent, as shares in commodities and telecom companies advanced.

AP - The opening moments were filled with just about every problem Virginia Tech coach Frank Beamer feared his team would have against Cincinnati.

Reuters - A suspected U.S. drone fired two missiles on Friday in Pakistan's South Waziristan region on the Afghan border, but there was no word on casualties, a Pakistani intelligence source and a resident said.

AFP - Sri Lankan troops forced their way into the centre of the Tamil Tiger political capital of Kilinochchi on Friday after months of bitter fighting, an official at the president's office said.

CANBERRA (Reuters) - Australia is considering a U.S. request to re-settle inmates from the Guantanamo Bay military prison camp, but is unlikely to take any detainees, Acting Prime Minister Julia Gillard said on Friday.

BEIJING (Reuters) - Factories in China, India and Russia slashed output and jobs at a record pace in December in another sign the world's largest emerging markets were wilting under the recession that has gripped most industrialized nations.

PESHAWAR, Pakistan (Reuters) - A suspected U.S. drone fired two missiles on Friday in Pakistan's South Waziristan region killing at least three people in an area known as a stronghold of Pakistani Taliban commander Baitullah Mehsud.

MOSCOW/KIEV (Reuters) - European Union states were monitoring for any signs of a reduction in their gas supplies from Russia on Friday after Moscow cut off the gas to its neighbor Ukraine in a contract dispute.

BANGKOK (Reuters) - The cause of a fire in a Bangkok nightclub that killed 59 New Year revelers is still not clear so it is premature to file criminal charges, Thai police said on Friday.

AP - Motorists are driving less and buying less gasoline, which means fuel taxes aren't raising enough money to keep pace with the cost of road, bridge and transit programs.

AP - Freshly unemployed, former business executive Bruce J. Colburn flew to the far northwest corner of Montana in search of a place to die.

Reuters - Israeli warplanes struck targets in Gaza on Friday and Islamist fighters fired rockets into the Israeli port of Ashkelon, dashing international hopes of a ceasefire to end seven days of fighting.

Reuters - Australia is considering a U.S. request to re-settle inmates from the Guantanamo Bay military prison camp, but is unlikely to take any detainees, Acting Prime Minister Julia Gillard said on Friday.

Reuters - Factories in China, India and Russia slashed output and jobs at a record pace in December in another sign the world's largest emerging markets were wilting under the recession that has gripped most industrialized nations.

Reuters - A suspected U.S. drone fired two missiles on Friday in Pakistan's South Waziristan region killing at least three people in an area known as a stronghold of Pakistani Taliban commander Baitullah Mehsud.

Reuters - European Union states were monitoring for any signs of a reduction in their gas supplies from Russia on Friday after Moscow cut off the gas to its neighbor Ukraine in a contract dispute.

AFP - Israeli warplanes pounded militant targets including a mosque in Gaza on Friday as Hamas ordered a 'day of wrath' against Israel over the killing of a senior commander.

AFP - Sri Lanka said Friday its troops had finally fought their way into the centre of the unofficial capital of the Tamil Tiger rebels, who have been at war with the government for decades.

GAZA (Reuters) - Israeli warplanes struck targets in Gaza on Friday and Islamist fighters fired rockets into the Israeli port of Ashkelon, dashing international hopes of a ceasefire to end seven days of fighting.

MOSCOW/KIEV (Reuters) - Russian gas kept flowing to European Union states on Friday, a day after Moscow cut off flows to Ukraine in a contract dispute, but importers across the continent were watching for signs their supplies were faltering.

NEW DELHI (Reuters) - India's defense minister said on Friday Pakistan was still failing to crack down on militants blamed for the Mumbai attacks, and that New Delhi had not deployed troops despite tension with its neighbor. India has been mobilizing support across the world to press Pakistan to crack down on militant networks there which have been blamed for November attacks in Mumbai that left 179 people dead.

AP - Israel destroyed the homes of more than a dozen Hamas operatives and bombed one of its mosques on Friday, the seventh day of a blistering offensive in Gaza and the day after a deadly strike killed a prominent Hamas figure.

AP - World stock markets opened 2009 on a high note, with Hong Kong's index up more than 4 percent, as investors shrugged off more dreary economic news to focus on government moves to ease the global slump.

AP - President-elect Barack Obama will meet with congressional leaders to discuss his economic stimulus plan and other legislative issues soon after his arrival in Washington in the coming days.

AP - French actress Isabelle Huppert will head the jury of the 62nd edition of the Cannes film festival in May.

AP - Who's No. 1? How about USC. A week before Florida and Oklahoma meet in the BCS title game, No. 5 Southern California played like a champion in the 95th Rose Bowl, defeating No. 6 Penn State 38-24 on Thursday in a game not nearly as close as the final score might indicate.

Reuters - Russian gas kept flowing to European Union states on Friday, a day after Moscow cut off flows to Ukraine in a contract dispute, but importers across the continent were watching for signs their supplies were faltering.

Reuters - India's defense minister said on Friday Pakistan was still failing to crack down on militants blamed for the Mumbai attacks, and that New Delhi had not deployed troops despite tension with its neighbor. India has been mobilizing support across the world to press Pakistan to crack down on militant networks there which have been blamed for November attacks in Mumbai that left 179 people dead.

AFP - Sri Lanka said Friday its troops had finally captured the unofficial capital of the Tamil Tigers, dealing a major blow to the rebel outfit and its decades-old struggle for a separate homeland.

GAZA (Reuters) - Palestinian Islamists vowed revenge against Israel on Friday for killing a senior Hamas leader and his family, and said all options including suicide bombs were now open to 'strike at Zionist interests everywhere.'

BEIJING (Reuters) - Factories in China and India joined much of Europe in slashing output and jobs at a record pace in December, another sign the biggest emerging markets were wilting under the recession gripping industrialized nations.

AP - World stock markets kicked off the new trading year brightly Friday as European and Asian indexes rose, though trading volumes remained light with many traders not back at their desks until next week.

AP - Motorists convicted of driving drunk will have to install breath-monitoring gadgets in their cars under new laws taking effect in six states this week.

AP - They rang in 2009 a day late in Aspen after a former resident unhappy that his hometown has become a resort playground for the wealthy vowed 'mass death' and left four bombs around downtown before killing himself.

Reuters - Palestinian Islamists vowed revenge against Israel on Friday for killing a senior Hamas leader and his family, and said all options including suicide bombs were now open to 'strike at Zionist interests everywhere.'

Reuters - Factories in China and India joined much of Europe in slashing output and jobs at a record pace in December, another sign the biggest emerging markets were wilting under the recession gripping industrialized nations.

AFP - A suicide bomber carried out an attack outside the air force headquarters in Colombo on Friday, killing at least two airmen and wounding 32 others, police said.

GAZA (Reuters) - Palestinian Islamists vowed revenge on Israel on Friday for killing a senior Hamas leader and his family, and said all options including suicide bombs were now open to 'strike at Zionist interests everywhere.'

BAGHDAD (Reuters) - A suicide bomber killed at least 23 people on Friday at a gathering of Sunni Arab tribal leaders for a lunch in a town south of Baghdad, Iraqi security spokesman Major-General Qassim Moussawi said.

AP - A suicide bomber sneaked into a luncheon gathering called by the leader of a local tribe, killing 30 people and wounding 110 on Friday, police said.

AP - Laws mandating stores only sell cigarettes that are slow-burning and fire-safe went into effect in five states on New Year's Day.

AP - Wall Street saw a quiet start to the new year Friday as stocks edged higher ahead of a report on the manufacturing sector.

Reuters - Palestinian Islamists vowed revenge on Israel on Friday for killing a senior Hamas leader and his family, and said all options including suicide bombs were now open to 'strike at Zionist interests everywhere.'

Reuters - A suicide bomber killed at least 23 people on Friday at a gathering of Sunni Arab tribal leaders for a lunch in a town south of Baghdad, Iraqi security spokesman Major-General Qassim Moussawi said.

AFP - Israeli warplanes hit Gaza targets including a mosque and a house where three young brothers were killed as Hamas supporters staged angry protests against Israel's week-old offensive.

AFP - Sri Lanka said Friday its troops had finally captured the unofficial capital of the Tamil Tigers and urged the rebels to lay down their arms and end their decades-old struggle for a separate homeland.

NEW YORK (Reuters) - GMAC LLC on Friday said that as part of its $6 billion federal bailout and decision to become a bank, it will no longer have the exclusive right to provide low-interest loans to borrowers who buy General Motors Corp cars and trucks.

MOSCOW/KIEV (Reuters) - Russia accused Ukraine of stealing gas destined for the rest of Europe on Friday, a day after cutting supplies to its neighbor in a contract dispute.

NEW YORK (Reuters) - Factory activity fell to a 28-year low in December as the deepening year-old recession hammered the sector and produced a bleak outlook at the start of 2009.

AP - Nine Muslim passengers were kicked off a flight from Washington, D.C., to Florida after other passengers reported hearing a suspicious remark about airplane security.

AP - Manufacturing activity fell more than expected in December, hitting the lowest reading in 28 years as new orders and employment continue to decline.

AP - Peyton Manning can tell Brett Favre to move over and make room for him atop the roster of NFL Most Valuable Players.

Reuters - The ailing U.S. steel industry is pressing President-elect Barack Obama for a public works plan that could be worth $1 trillion over two years to boost flagging demand for U.S.-made steel, the New York Times reported in Friday's editions.

Reuters - GMAC LLC on Friday said that as part of its $6 billion federal bailout and decision to become a bank, it will no longer have the exclusive right to provide low-interest loans to borrowers who buy General Motors Corp cars and trucks.

Reuters - Russia accused Ukraine of stealing gas destined for the rest of Europe on Friday, a day after cutting supplies to its neighbor in a contract dispute.

Reuters - Factory activity fell to a 28-year low in December as the deepening year-old recession hammered the sector and produced a bleak outlook at the start of 2009.

Reuters - Factories in China, India and Eastern Europe joined the United States and other developed countries in slashing output and jobs in December, another sign recession is spreading to emerging markets.

AFP - Sri Lanka said Friday its troops had finally captured the unofficial capital of the Tamil Tigers and urged the rebels to lay down their arms and end their decades-old struggle for a separate homeland.

GAZA (Reuters) - The civilian death toll climbed in Israel's air offensive against the Gaza Strip on Friday and Palestinian Islamists vowed revenge for the killing of a senior Hamas leader and his family.

DEARBORN, Mich (Reuters) - Ford Motor Co expects industry-wide December U.S. auto sales to drop by some 35 percent from a year earlier with no sign of a turnaround in the first quarter of this year.

NEW YORK (Reuters) - GMAC LLC on Friday said that as part of its $6 billion federal bailout and decision to become a bank, it will no longer have the exclusive right to provide low-interest loans to borrowers who buy General Motors Corp cars and trucks.

MOSCOW/KIEV (Reuters) - European states started suffering from lower Russian gas supplies on Friday while Moscow accused Kiev of stealing transit gas a day after deliveries to Ukraine were cut in a contract dispute.

BEIJING/NEW YORK (Reuters) - Factories in China, India and Eastern Europe joined the United States and other developed countries in slashing output and jobs in December, another sign recession is spreading to emerging markets.

AP - The U.S. is preparing to pour at least 20,000 extra troops into southern Afghanistan to cope with a Taliban insurgency that is fiercer than NATO leaders expected.

AP - Colorado Gov. Bill Ritter is expected to name Denver public schools superintendent Michael Bennet to fill a Senate vacancy created by the promotion of Sen. Ken Salazar to Interior secretary in the Obama administration, sources said Friday.

AP - Wall Street started the new year optimistically Friday as investors brushed off a weaker-than-expected report on manufacturing and sent stocks sharply higher. The Dow Jones industrials jumped about 170 points.

AP - Peyton Manning can tell Brett Favre to move over and make room for him atop the roster of NFL Most Valuable Players.

Reuters - The civilian death toll climbed in Israel's air offensive against the Gaza Strip on Friday and Palestinian Islamists vowed revenge for the killing of a senior Hamas leader and his family.

Reuters - Ford Motor Co expects industry-wide December U.S. auto sales to drop by some 35 percent from a year earlier with no sign of a turnaround in the first quarter of this year.

Reuters - GMAC LLC on Friday said that as part of its $6 billion federal bailout and decision to become a bank, it will no longer have the exclusive right to provide low-interest loans to borrowers who buy General Motors Corp cars and trucks.

Reuters - European states started suffering from lower Russian gas supplies on Friday while Moscow accused Kiev of stealing transit gas a day after deliveries to Ukraine were cut in a contract dispute.

LOS ANGELES/NEW YORK (Reuters) - Everyone caught up in the scandal of accused Wall Street swindler Bernard Madoff wants to know where the money is.

WASHINGTON (Reuters) - Republicans in the Congress could stand in the way of Democratic President-elect Barack Obama's hopes of signing a massive economic stimulus plan into law right after he takes office on January 20.

MOSCOW/KIEV (Reuters) - European countries began to suffer from reduced gas supplies on Friday after Russia cut deliveries to Ukraine in a contract dispute.

AP - With time running out on the Bush presidency, the administration seemed increasingly ready Friday to let the crisis in Gaza fall to President-elect Barack Obama.

AP - Oregon is among a growing number of states exploring ways to tax drivers based on the number of miles they drive instead of how much gas they use, even going so far as to install GPS monitoring devices in 300 vehicles. The idea first emerged nearly 10 years ago as Oregon lawmakers worried that fuel-efficient cars such as gas-electric hybrids could pose a threat to road upkeep, which is paid for largely with gasoline taxes.

AP - Inauguration-week sermons would be videotaped to highlight Barack Obama's rise to power in an unprecedented quest by the Library of Congress to capture this transfer of power for posterity. The folks at the library's American Folklife Center are soliciting churches, synagogues, mosques and others for copies of sermons or passionate speeches that focus on the significance of the Jan. 20 inauguration of Obama as the country's first black president.

AP - No name on the marquee was more pleasing to theater owners in 2008 than Will Smith, according to a survey of movie exhibitors. Smith, star of 'Hancock' and 'Seven Pounds,' was voted the star who generated the most box office revenue for theaters in an annual survey by Quigley Publishing Co.

AP - Israel allowed several hundred Palestinians with foreign passports to flee Gaza on Friday, even as its warplanes bombed a mosque it said was used to store weapons and destroyed homes of more than a dozen Hamas operatives.

AP - AirTran Airways is apologizing to nine Muslim passengers kicked off a New Year's Day flight to Florida after other passengers reported hearing a suspicious remark about airplane security. One of the passengers says the confusion started at Reagan National Airport in Washington, D.C., when his brother was talking about the safest place to sit on an airplane.

AP - A top Senate Republican said Friday his caucus would block any attempt to seat the winner of Minnesota's close election until an anticipated court case is finished and an official election certificate is issued.

Reuters - Everyone caught up in the scandal of accused Wall Street swindler Bernard Madoff wants to know where the money is.

Reuters - Ford Motor Co expects industry-wide December U.S. auto sales to drop by some 35 percent from a year earlier with no sign of a turnaround in the first quarter of this year.

Reuters - Republicans in the Congress could stand in the way of Democratic President-elect Barack Obama's hopes of signing a massive economic stimulus plan into law right after he takes office on January 20.

Reuters - European countries began to suffer from reduced gas supplies on Friday after Russia cut deliveries to Ukraine in a contract dispute.

AFP - Warplanes killed three young brothers and demolished a mosque in Gaza on Friday as Hamas warned that a 'black destiny' awaits Israel if ground forces join the week-long offensive.

BEIJING (Reuters) - Factories in China and India joined much of Europe in slashing output and jobs at a record pace in December, another sign the biggest emerging markets were wilting under the recession gripping industrialized nations.

WASHINGTON (Reuters) - Republicans in Congress could stand in the way of Democratic President-elect Barack Obama's hopes of signing a massive economic stimulus plan into law right after he takes office on January 20.

PHILADELPHIA (Reuters) - Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

MOSCOW/KIEV (Reuters) - European countries began to suffer from reduced gas supplies on Friday after Russia cut deliveries to Ukraine in a contract dispute.

AP - Democratic leaders plan to grant few if any privileges next week to Roland Burris, the man picked by Gov.

AP - AirTran Airways apologized Friday to nine Muslims kicked off a New Year's Day flight to Florida after other passengers reported hearing a suspicious remark about airplane security. One of the passengers said the confusion started at Reagan National Airport just outside Washington, D.C., when he talked about the safest place to sit on an airplane.

AP - A mixed-race British couple has defied the odds — twice — by producing two sets of twins in which one sibling appears to be black and the other white. Dean Durrant's newborn daughter Miya has dark skin like him. Twin sister Leah has fair skin like her blue-eyed, red-haired mother, Alison Spooner.

AP - John Travolta's teenage son, Jett, died in the Bahamas after falling ill and hitting his head at his family's vacation home, police said Friday. A house caretaker found Jett, 16, unconscious in a bathroom late Friday morning. He was taken by ambulance to a Freeport hospital, where he was pronounced dead, according to a statement from chief police superintendent Basil Rahming.

Reuters - Factories in China and India joined much of Europe in slashing output and jobs at a record pace in December, another sign the biggest emerging markets were wilting under the recession gripping industrialized nations.

Reuters - Republicans in Congress could stand in the way of Democratic President-elect Barack Obama's hopes of signing a massive economic stimulus plan into law right after he takes office on January 20.

Reuters - Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

Reuters - European countries began to suffer from reduced gas supplies on Friday after Russia cut deliveries to Ukraine in a contract dispute.

AP - President George W. Bush on Friday branded the Hamas rocket attacks on Israel an 'act of terror' and outlined his own condition for a cease-fire in Gaza, saying no peace deal would be acceptable without monitoring to halt the flow of smuggled weapons to terrorist groups.

AP - Senate Democratic leaders plan to grant few if any privileges next week to Roland Burris, the man picked by Illinois Gov. Rod Blagojevich to represent the state in the Senate, even if Burris arrives on Capitol Hill with the proper credentials.

AP - President-elect Barack Obama's transition team is putting the finishing touches on an economic recovery plan that could run from $675 billion to $775 billion.

AP - Police get calls about drunken drivers all the time, but rarely do they come from the alleged offender. A 17-year-old girl in Bismarck called 911 on New Year's Eve 'to report herself driving under the influence,' police Lt. Randy Ziegler said. 'I've never heard of such a thing happening, and neither has anyone here.'

Reuters - Hamas's top leader warned Israel its army would be defeated if it invaded the Gaza Strip, while the United States said it envisioned a ceasefire with international monitoring that would ensure the Islamist group could not rearm.

Reuters - The assets of failed U.S. mortgage lender IndyMac are being bought by a group of private equity and hedge fund firms, including Dune Capital Management and J.C. Flowers & Co, which are putting up $1.3 billion in cash.

Reuters - Both President-elect Barack Obama and Vice President-elect Joe Biden will huddle with Democratic and Republican congressional leaders on Monday to try to advance a huge economic stimulus bill that Obama hopes can be enacted quickly, despite Republican reservations.

GAZA (Reuters) - Hamas's top leader warned Israel its army would be defeated if it invaded the Gaza Strip, while the United States said it envisioned a ceasefire with international monitoring that would ensure the Islamist group could not rearm.

WASHINGTON/NEW YORK (Reuters) - The assets of failed U.S. mortgage lender IndyMac are being bought by a group of private equity and hedge fund firms, including Dune Capital Management and J.C. Flowers & Co, which are putting up $1.3 billion in cash.

AP - A jail in northern Texas has been closed and its nearly 60 inmates transferred as authorities investigate what they call dangerous conditions for jailers and those behind bars — including cells that locked from the inside or contained recliners. Five inmates had already been moved from the Montague County jail to one in a nearby county this month after an FBI raid, said Jack McGaughey, district attorney for Montague, Clay and Archer counties.

Reuters - Hamas's top leader warned Israel its army would be defeated if it invaded the Gaza Strip, while the United States said it envisioned a ceasefire with international monitoring that would ensure the Islamist group could not rearm.

AFP - Israeli warplanes continued to pound Gaza on Saturday as the assault on Hamas entered its second week, with the Islamist group's leader warning of a 'black destiny' if ground troops are sent in.

AP - Utah is the best of the BCS busters.

AFP - Sri Lankan troops advanced Saturday on the military headquarters of the Tamil Tigers, a day after capturing the rebels' de facto political capital in the north of the island.