GAZA (Reuters) - Israel pressed on with its ground offensive in the Gaza Strip for a fourth day on Tuesday despite new international calls for a ceasefire in a conflict in which more than 540 Palestinians have been killed.

WASHINGTON (Reuters) - The new U.S. Congress convenes on Tuesday under pressure to deal with a worsening economy by passing a stimulus package that Barack Obama could sign into law soon after being sworn in as president.

TOKYO (Reuters) - Toyota Motor Corp, reeling from its worst U.S. sales decline in more than a quarter of a century, will shut all its factories in Japan for 11 days as the global economic slump hits demand and company profits.

KIEV (Reuters) - Ukraine's state energy company Naftogaz said on Tuesday that Russia's Gazprom had cut gas supply to Europe via Ukraine to around a third of its normal flow and that the shortage would hit Europe in a few hours.

AP - Spending on health care slowed slightly in 2007 as consumers turned more to generic drugs instead of brand-names to fill their medicine cabinets, the government reported Monday.

AP - Left out of the national title game, Colt McCoy and Texas made the most of their trip to the Fiesta Bowl.

Reuters - The new U.S. Congress convenes on Tuesday under pressure to deal with a worsening economy by passing a stimulus package that Barack Obama could sign into law soon after being sworn in as president.

Reuters - Ukraine's state energy company Naftogaz said on Tuesday that Russia's Gazprom had cut gas supply to Europe via Ukraine to around a third of its normal flow and that the shortage would hit Europe in a few hours.

AFP - The heaviest fighting of Israel's war on Hamas raged in Gaza City early on Tuesday as Israeli Prime Minister Ehud Olmert rebuffed appeals to stop the death toll from mounting further.

AFP - One of Congo's main rebel military chiefs denied that Laurent Nkunda, head of the National Congress for the Defence of the People (CNDP), had been toppled by a dissident group.

GAZA (Reuters) - Israeli forces pressed closer and into cities in the Gaza Strip on Tuesday despite new international calls for a ceasefire in an 11-day-old conflict in which hundreds of Palestinians have been killed.

TOKYO/BEIJING (Reuters) - Toyota Motor Corp will shut all its factories in Japan for 11 days to combat a global slowdown that is not only hitting company profits but could, a report says, unleash a wave of social unrest in China.

MOSCOW/KIEV (Reuters) - Supplies of Russian gas via Ukraine to Bulgaria, Greece and Turkey stopped flowing on Tuesday because of a dispute between Moscow and Kiev over gas prices, officials in Sofia said.

AP - Although he calls himself a senator, Roland Burris has found little support among fellow Democrats in his effort to take the Senate seat to which embattled Illinois Gov. Rod Blagojevich appointed him.

AP - Health care continued to take up a greater share of the economy in 2007, as spending on hospitals, doctors and other services increased 6.1 percent to $2.2 trillion.

Reuters - Israeli forces pressed closer and into cities in the Gaza Strip on Tuesday despite new international calls for a ceasefire in an 11-day-old conflict in which hundreds of Palestinians have been killed.

Reuters - Toyota Motor Corp will shut all its factories in Japan for 11 days to combat a global slowdown that is not only hitting company profits but could, a report says, unleash a wave of social unrest in China.

Reuters - Supplies of Russian gas via Ukraine to Bulgaria, Greece and Turkey stopped flowing on Tuesday because of a dispute between Moscow and Kiev over gas prices, officials in Sofia said.

CHICAGO (Reuters) - Deep discounts failed to coax consumers to shop in December, but are sure to sap margins and will likely lead to a number of profit warnings when retailers report sales for the all-important holiday month this week.

SOFIA/MOSCOW (Reuters) - Russian gas supplies via Ukraine to south-eastern Europe and Turkey were halted on Tuesday and Austria and the Czech Republic reported sharp falls in supplies in a deepening row between Moscow and Kiev.

WASHINGTON (Reuters) - More Americans are burdened by chronic illnesses such as diabetes and high blood pressure, often having more than three at a time, and this has helped fuel a big rise in out-of-pocket medical expenses, a study released on Tuesday showed.

AP - The European Union calls the sudden and substantial cuts in Russian gas supplies to some member states 'completely unacceptable.'

AP - The Texas Longhorns will be No. 1 on at least one ballot. It belongs to coach Mack Brown. Brown said he made up his mind after Colt McCoy hit Quan Cosby for a 26-yard touchdown with 16 seconds to play, lifting the third-ranked Longhorns to a 24-21 Fiesta Bowl victory over No. 10 Ohio State on Monday night. The stunning strike capped an 11-play, 78-yard drive that took only 1:42.

Reuters - Deep discounts failed to coax consumers to shop in December, but are sure to sap margins and will likely lead to a number of profit warnings when retailers report sales for the all-important holiday month this week.

Reuters - All supplies of Russian gas via Ukraine to Bulgaria, Turkey, Greece and Macedonia were halted on Tuesday due to a dispute between Moscow and Kiev over gas prices, officials in Sofia said.

Reuters - More Americans are burdened by chronic illnesses such as diabetes and high blood pressure, often having more than three at a time, and this has helped fuel a big rise in out-of-pocket medical expenses, a study released on Tuesday showed.

AFP - Israeli troops battled Hamas fighters in major cities of overcrowded Gaza on Tuesday as Israel spurned appeals to halt a war on the Islamists that has killed at least 580 Palestinians.

AFP - The situation with deliveries of Russian gas to Europe 'changed very dramatically' overnight and is 'getting worse,' a top member of a European Union delegation in Kiev said on Tuesday.

LONDON (Reuters) - Dire economic data underlined the severity of recession in Europe on Tuesday, while Toyota Motor Corp said it would halt output in Japan in response to falling demand.

MOSCOW (Reuters) - Russian gas supplies via Ukraine to the Balkans, Turkey and south-eastern Europe were halted on Tuesday and flows to EU-member state Austria dropped by 90 percent in a deepening price row between Moscow and Kiev.

BEIJING (Reuters) - China faces surging protests and riots in 2009 as rising unemployment stokes discontent, a state-run magazine said in a blunt warning of the hazards to Communist Party control from a sharp economic downturn.

BEIJING/HONGKONG (Reuters) - A 19-year-old woman has died of the H5N1 bird flu virus in Beijing after coming into contact with poultry, health authorities in Beijing and Hong Kong said on Tuesday.

AP - Barack Obama's appointed successor declared Tuesday he's qualified to take a seat in the Senate and said he'll go to Capitol Hill to do just that.

AP - Israeli forces edged closer to Gaza's major population centers on Tuesday and attacked new targets, including a U.N. school, taking more civilian lives after ignoring mounting international calls for an immediate cease-fire. A Palestinian rocket attack wounded an Israeli infant.

AP - Wall Street headed for a moderately higher open Tuesday, regaining its upward momentum ahead of a fresh round of readings on the service sector, factory orders and pending home sales.

AP - The head of Ukraine's gas company Naftogaz says talks on resolving the gas dispute with Russia will resume Thursday.

Reuters - Dire economic data underlined the severity of recession in Europe on Tuesday, while Toyota Motor Corp said it would halt output in Japan in response to falling demand.

Reuters - Russian gas supplies via Ukraine to the Balkans, Turkey and south-eastern Europe were halted on Tuesday and flows to EU-member state Austria dropped by 90 percent in a deepening price row between Moscow and Kiev.

Reuters - China faces surging protests and riots in 2009 as rising unemployment stokes discontent, a state-run magazine said in a blunt warning of the hazards to Communist Party control from a sharp economic downturn.

Reuters - A 19-year-old woman has died of the H5N1 bird flu virus in Beijing after coming into contact with poultry, health authorities in Beijing and Hong Kong said on Tuesday.

AFP - Russia and Ukraine traded blame Tuesday as a dispute between the two bitter ex-Soviet rivals triggered major gas cuts in Europe in a dramatic escalation the EU slammed as unacceptable.

AP - Palestinian medical officials say at least 12 people are dead in an Israeli airstrike outside a U.N. school in the northern Gaza Strip.

AP - Investors waded back into the market Tuesday, sending stocks moderately higher ahead of a fresh round of readings on the service sector, factory orders and pending home sales.

Reuters - Dire economic data underlined the severity of recession in Europe on Tuesday, while Toyota Motor Corp said it would halt all production in Japan in response to plunging demand.

Reuters - Russia's worsening gas dispute with Ukraine cut supplies on Tuesday to Turkey and a swathe of European countries, threatening disruption as far west as Italy and Germany.

AFP - Israeli tanks and helicopter gunships went blazing into towns across the Gaza Strip on Tuesday, attacking Hamas targets and searching for its leaders as the war death toll approached 600.

WASHINGTON (Reuters) - The man named by the scandal-plagued governor of Illinois to replace President-elect Barack Obama in the U.S. Senate failed to gain entry on Tuesday when the chamber's secretary rejected as incomplete his credentials for the seat.

GAZA (Reuters) - Israeli tank shells killed at least 40 Palestinians on Tuesday at a U.N. school where civilians had taken shelter, medical officials said, in carnage likely to boost international calls for a halt to Israel's Gaza offensive.

AP - Roland Burris announced Tuesday he was rejected for Barack Obama's Senate seat, in a bizarre rainy-day scene on the Capitol grounds as lawmakers awaited the gaveling of the 111th Congress into session.

AP - An Israeli official says Palestinian militants fired on Israeli soldiers from the courtyard of a U.N. school where dozens of people died in fiery explosions.

AP - The Social Security Administration, bracing for the coming eligibility of 80 million baby boomers, is introducing an online application that will allow people to apply for retirement benefits in as little as 15 minutes.

AP - President-elect Barack Obama is promising that his economic stimulus plan won't include money for politicians' pet projects and will include provisions aimed at ensuring his administration is open and accountable to taxpayers and Congress.

AP - Stocks pared their earlier gains Tuesday following disappointing readings on pending home sales and factory orders.

AP - Nine flight attendants who couldn't meet the weight standards of India's national airlines have been fired, an official said Tuesday.

AP - Islamic militants posted sarcastic comments on an extremist Web site Tuesday ridiculing a recent announcement by First Lady Laura Bush that the family's cat had died.

AP - Phillies reliever J.C. Romero and Yankees minor league pitcher Sergio Mitre were suspended for the first 50 games of next season after testing positive for a banned substance.

Reuters - The man named by the scandal-plagued governor of Illinois to replace President-elect Barack Obama in the U.S. Senate failed to gain entry on Tuesday when the chamber's secretary rejected as incomplete his credentials for the seat.

Reuters - Israeli tank shells killed at least 40 Palestinians on Tuesday at a U.N. school where civilians had taken shelter, medical officials said, in carnage likely to boost international pressure on Israel to halt a Gaza offensive.

Reuters - Indian Prime Minister Manmohan Singh accused Pakistan on Tuesday of acting irresponsibly, saying November's Mumbai attacks must have had support from some of its nuclear-armed neighbor's official agencies.

AFP - The heaviest fighting of Israel's war on Hamas raged in Gaza's main city early on Tuesday as the Israeli government fended off appeals to stop the death toll from mounting further.

GAZA (Reuters) - Israeli shelling killed more than 40 Palestinians Tuesday at a U.N. school where civilians had taken shelter, medical officials said, in carnage likely to boost international pressure on Israel to halt a Gaza offensive.

BLAUBEUREN, Germany (Reuters) - German billionaire Adolf Merckle who was hit by a train on Monday evening killed himself, unhinged by financial turmoil and struggling to salvage his business empire, his family said on Tuesday.

WASHINGTON (Reuters) - How much does it cost to spend $350 billion?

WASHINGTON (Reuters) - Democrats sealed their increased control of the U.S. Congress on Tuesday with the swearing in of newly elected members expected to help enact President-elect Barack Obama's call for a massive economic stimulus package.

NEW YORK/LONDON (Reuters) - Dire economic data from the United States and Europe showed the world's two largest economies remain mired in recession, and Toyota Motor Corp said it would halt all production in Japan in response to plunging demand.

WASHINGTON (Reuters) - President-elect Barack Obama said on Tuesday that he expects to inherit a U.S. budget deficit approaching $1 trillion and that his administration would have to make some tough budget choices.

WASHINGTON (Reuters) - Many U.S. troops serving overseas are effectively excluded from voting because they are not given enough time to cast absentee ballots, according to a report released on Tuesday.

NEW YORK (Reuters) - American millionaires have seen their assets shrink by 30 percent during the economic crisis, a report said on Tuesday, with only 36 percent of them pleased with the performance of their financial advisers.

AP - An Israeli bombardment struck outside a U.N. school where hundreds of Palestinians had sought refuge on Tuesday, the U.N. and Palestinian medics said, killing at least 30 people — many of them children whose parents wailed in grief at a hospital filled with dead and wounded.

AP - President-elect Barack Obama says the nation probably faces huge deficits for years to come, but heavy spending is needed now to spur the economy.

AP - Wall Street proceeded cautiously Tuesday, with stocks rising moderately following disappointing readings on pending home sales and factory orders.

AP - Apple Inc. is cutting the price of some songs in its market-leading iTunes online music store to 69 cents and plans to begin selling all tracks without copy protection.

Reuters - Israeli shelling killed more than 40 Palestinians Tuesday at a U.N. school where civilians had taken shelter, medical officials said, in carnage likely to boost international pressure on Israel to halt a Gaza offensive.

Reuters - German billionaire Adolf Merckle who was hit by a train on Monday evening killed himself, unhinged by financial turmoil and struggling to salvage his business empire, his family said on Tuesday.

Reuters - How much does it cost to spend $350 billion?

Reuters - Democrats sealed their increased control of the U.S. Congress on Tuesday with the swearing in of newly elected members expected to help enact President-elect Barack Obama's call for a massive economic stimulus package.

Reuters - Dire economic data from the United States and Europe showed the world's two largest economies remain mired in recession, and Toyota Motor Corp said it would halt all production in Japan in response to plunging demand.

Reuters - President-elect Barack Obama said on Tuesday that he expects to inherit a U.S. budget deficit approaching $1 trillion and that his administration would have to make some tough budget choices.

WASHINGTON (Reuters) - President-elect Barack Obama said on Tuesday he expects to inherit a U.S. budget deficit approaching $1 trillion and his administration would have to make some tough budget choices.

AP - Roland Burris tried to take President-elect Barack Obama's Illinois Senate seat Tuesday but failed in a scripted piece of political theater staged just before the opening of the 111th Congress. 'Mr. Burris is not in possession of the necessary credentials from the state of Illinois,' declared Senate Majority Leader Harry Reid of Nevada.

AP - Israeli mortar shells struck outside a U.N. school where hundreds of Palestinians had sought refuge on Tuesday, killing at least 30 people — many of them children whose parents wailed in grief at a hospital filled with dead and wounded.

AP - President-elect Barack Obama apparently plans a more aggressive approach than the Bush administration to helping friendly nations get better at fighting terrorism within their own borders, the State Department's top counterterrorism official said Tuesday.

AP - Former Gov. Jeb Bush says he won't run for the U.S. Senate in 2010 to replace the retiring Mel Martinez. Bush made the announcement Tuesday, saying 'now is not the right time to return to elected office.'

AP - You couldn't miss the wedding band on Craig Ferguson's ring finger when he returned to CBS' 'The Late Late Show' from his holiday break. Ferguson held his left hand up to the camera and announced that he'd gotten married. The 46-year-old talk-show host said he'd tied the knot with art dealer Megan Wallace Cunningham.

AP - Jolene Solomon is beginning the new year with her life, her mule named Lou and little else. The Southern Standard in McMinnville reported Solomon had just finished eating supper on New Year's Day when Lou's braying and acting up got her attention.

AP - The chairman of the Senate Rules Committee has parted with many of her Democratic colleagues and says that the Senate should seat former Illinois Attorney General Roland Burris.

AP - President-elect Barack Obama has approached CNN's chief medical correspondent, Sanjay Gupta, to be the country's next surgeon general, the cable network said Tuesday.

AP - The Capitol rang loud with vows to fix the crisis-ridden economy Tuesday as Congress opened for business at the dawn of a new Democratic era. 'We need action and we need action now,' said Speaker Nancy Pelosi. Republicans agreed, and pledged cooperation in Congress as well as with President-elect Barack Obama — to a point.

AP - President-elect Barack Obama is defending his unexpected CIA nominee Leon Panetta, who faced a surge of skepticism in Congress on Tuesday but is not expected to draw serious opposition when his confirmation reaches the Senate Intelligence Committee.

AP - Republican Norm Coleman said Tuesday he is suing to challenge Democrat Al Franken's apparent recount victory in Minnesota's U.S. Senate race, delaying a resolution of the contest for weeks or months.

AP - Parkinson's sufferers who had electrodes implanted in their brains improved substantially more than those who took only medicine, according to the biggest test yet of deep brain stimulation. The study, which followed patients for six months, offers the most hopeful news to date for Parkinson's sufferers. The new technique reduced tremors, rigidity and flailing of the limbs and allowed people to move freely for nearly five extra hours a day.

AP - The Colorado Rockies have bolstered their starting rotation, acquiring right-hander Jason Marquis from the Chicago Cubs for reliever Luis Vizcaino.

Reuters - Israeli shelling killed more than 40 Palestinians on Tuesday at a U.N. school where civilians had taken shelter, medical officials said, in carnage likely to boost international pressure on Israel to halt a Gaza offensive.

Reuters - Aluminum producer Alcoa Inc said on Tuesday it will curtail metal production by about 18 percent and cut some 15,200 jobs to save cash and reduce costs as it seeks to counter the impact of the global economic downturn.

Reuters - Democrats celebrated their increased clout in the U.S. Congress on Tuesday, swearing in new members who are expected to help President-elect Barack Obama enact a massive economic stimulus package.

Reuters - U.S. Defense Secretary Robert Gates estimates the Pentagon will need about $70 billion more to pay for the wars in Iraq and Afghanistan this year, on top of the $65.9 billion already approved by Congress.

GAZA (Reuters) - Israel and Hamas studied a proposal by Egypt for a ceasefire in the Gaza Strip on Wednesday that won immediate backing from the United States and Europe, hours after Israeli shells killed 42 Palestinians at a U.N. school.

NEW YORK (Reuters) - Alcoa Inc said on Tuesday it would slash more than 15,000 jobs, halve capital spending and sell four businesses as it reduces aluminum production in the face of the global economic downturn.

NEW YORK (Reuters) - Bernard Madoff is cooperating with government investigations into his alleged $50 billion fraud, one of his lawyers said on Tuesday, as prosecutors sought to revoke his bail and jail him.

MOSCOW (Reuters) - Europe faced a deepening energy crunch and more sub-zero temperatures on Wednesday, with Moscow and Kiev showing little sign of a swift resolution of a pricing dispute that has slashed Russian gas supplies to the West.

NEW YORK (Reuters) - Dismal economic data from the United States and Europe pointed to further pain for the world's two largest economies, while aluminum maker Alcoa Inc plans to slash thousands of jobs and curtail operations to conserve cash in a deepening recession.

AP - France and Egypt announced an initiative to stop the fighting in Gaza late Tuesday, hours after Israeli mortar shells exploded near a U.N. school sheltering hundreds of people displaced by the onslaught on Hamas militants. At least 30 Palestinians died, staining streets with blood.

AP - Roland Burris failed to capture President-elect Barack Obama's old Senate seat Tuesday in a wild piece of political theater, but the Democrats' opposition cracked when a key chairwoman said seating him was simply the legal thing to do. Democratic leaders, set to meet with Burris on Wednesday, were searching for a way to defuse the dispute before it further overshadows the 111th Congress.

AP - President George W. Bush's national security adviser said Tuesday that Iran is the biggest challenge President-elect Barack Obama will face in the Middle East and that more sanctions will be needed to force Tehran to forgo its nuclear ambitions and support for extremists.

AP - The Grand Canyon, Mount Everest and Loch Ness will vie with more than 200 other spectacular places in the next phase of the global competition for the New 7 Wonders of Nature, organizers said Wednesday. The 261 nominees from 222 countries include some of the most famous mountain peaks, lakes, and other attractions, such as the Great Barrier Reef and Niagara Falls.

AP - Jason Giambi might just finish his career where it began more than a decade ago. The free-agent first baseman was close to completing a deal Tuesday to return to the Oakland Athletics nearly 14 years after making his debut with the club, according to two people familiar with the negotiations. The sides had reached a preliminary agreement, pending a physical, on what is expected to be a one-year contract with an option.

Reuters - Israel and Hamas studied a proposal by Egypt for a ceasefire in the Gaza Strip on Wednesday that won immediate backing from the United States and Europe, hours after Israeli shells killed 42 Palestinians at a U.N. school.

Reuters - Alcoa Inc said on Tuesday it would slash more than 15,000 jobs, halve capital spending and sell four businesses as it reduces aluminum production in the face of the global economic downturn.

Reuters - Bernard Madoff is cooperating with government investigations into his alleged $50 billion fraud, one of his lawyers said on Tuesday, as prosecutors sought to revoke his bail and jail him.

AFP - Israeli forces blazed into towns across Gaza on Tuesday striking Hamas targets and also hitting three UN-run schools in attacks that killed at least 48 people and sparked urgent new ceasefire calls.

AFP - Gas shortages spread across Europe reaching France and Italy on Tuesday as cuts in Russian supplies through Ukrainian pipelines escalated an increasingly bitter crisis in the depths of winter.

AP - France and Egypt announced an initiative to stop the fighting in Gaza late Tuesday, hours after Israeli mortar shells exploded near a U.N. school sheltering hundreds of people displaced by the onslaught on Hamas militants. At least 30 Palestinians died, staining streets with blood.

AP - Roland Burris failed to capture President-elect Barack Obama's old Senate seat Tuesday in a wild piece of political theater, but the Democrats' opposition cracked when a key chairwoman said seating him was simply the legal thing to do. Democratic leaders, set to meet with Burris on Wednesday, were searching for a way to defuse the dispute before it further overshadows the 111th Congress.

AP - Aruban prosecutors said Tuesday their investigation into the 2005 disappearance of U.S. teenager Natalee Holloway is nearing the end and appealed for anyone with information to come forward.

AP - The Cleveland Indians and free-agent pitcher Carl Pavano, a four-year bust with the New York Yankees because of injuries, agreed to a one-year, $1.5 million contract on Tuesday.

AFP - Israeli troops kept up their assault on Hamas fighters in Gaza as diplomats sought to persuade Israel to end an onslaught that has killed at least 660 Palestinians.

WASHINGTON (Reuters) - President-elect Barack Obama said on Tuesday he expects to inherit a U.S. budget deficit approaching $1 trillion and his administration would have to make some tough budget choices.

AP - Lisa Marie Presley is expressing her condolences over Jett Travolta's death and defending Scientology, the religion that Presley, John Travolta and Kelly Preston follow.

Reuters - President-elect Barack Obama said on Tuesday he expects to inherit a U.S. budget deficit approaching $1 trillion and his administration would have to make some tough budget choices.