SAN FRANCISCO (Reuters) - California's government risks a financial 'meltdown' within 50 days in light of its weakening May revenues unless Governor Arnold Schwarzenegger and lawmakers quickly plug a $24.3 billion budget gap, the state's controller said on Wednesday.

TEHRAN (Reuters) - If Iranian voters deny President Mahmoud Ahmadinejad re-election on Friday, it may be more a verdict on his economic performance than on his fierce rhetoric against the United States and Israel, his defense of Iran's nuclear policy or his persistent questioning of the Holocaust.

SEOUL (Reuters) - World powers moved closer to punishing North Korea with new sanctions for its nuclear test while envoys from the reclusive communist state held talks with South Koreans on Thursday over a troubled joint factory park.

CARACAS (Reuters) - The Venezuelan government of U.S.-critic President Hugo Chavez on Wednesday ordered Coca-Cola Co to withdraw its Coke Zero beverage from the South American nation, citing unspecified dangers to health.

AP - Dozens of militants attacked three army posts in a tribal region that serves as the primary base for Pakistan's Taliban chief, triggering shootouts that left 20 insurgents and three soldiers dead early Thursday, intelligence officials told The Associated Press.

AP - Chrysler may have been granted a fresh start, but it still faces old problems: how to sell enough cars and realign its fleet away from the trucks and SUVs consumers seem to no longer want or be able to afford.

Reuters - If Iranian voters deny President Mahmoud Ahmadinejad re-election on Friday, it may be more a verdict on his economic performance than on his fierce rhetoric against the United States and Israel, his defense of Iran's nuclear policy or his persistent questioning of the Holocaust.

Reuters - World powers moved closer to punishing North Korea with new sanctions for its nuclear test while envoys from the reclusive communist state held talks with South Koreans on Thursday over a troubled joint factory park.

Reuters - The Venezuelan government of U.S.-critic President Hugo Chavez on Wednesday ordered Coca-Cola Co to withdraw its Coke Zero beverage from the South American nation, citing unspecified dangers to health.

AP - The most prominent American museum bearing witness to violence against Jews was the scene of bloodshed, its doors breached by an assailant who opened fire with a rifle, killing a guard in an attack linked to a white supremacist's hate.

AP - As the Obama administration takes a half-step toward taming executive pay, Congress might consider a fuller stride.

AP - President Barack Obama, facing challenges to his ambitious health care overhaul from Congress, is visiting supporters outside the capital and turning to them to muster up momentum for one of his top legislative priorities.

AP - Three American contractors detained during an investigation into the slaying of another American have been released on bond, but two others remain in custody on drug charges, Iraqi officials said Thursday.

AP - A tobacco control bill set to win Senate approval would give the federal government broad new powers to monitor and change a toxic substance that contributes to some 400,000 deaths every year.

AP - Miss California USA Carrie Prejean, who stirred up a hornet's nest of controversy when she said gays shouldn't be allowed to marry, got the word from pageant poobah Donald Trump on Wednesday: 'You're fired.'

AFP - World health officials were to meet on whether to declare a global flu pandemic, as Hong Kong ordered all of its primary schools shut after finding the first cluster of local swine flu cases.

AFP - Campaigning for Iran's hotly contested presidential election wrapped up after three weeks of mass rallies, a series of fiery television debates and mudslinging among the four candidates.

NEW YORK (Reuters) - U.S. foreclosure activity for May ebbed from April's record, but mortgages still failed at a staggering pace as President Barack Obama's rescue programs had not had time to fully take root, RealtyTrac said on Thursday.

SEOUL/MOSCOW (Reuters) - Russia does not expect North Korea to respond to U.N. sanctions for its nuclear test with moves that would further ratchet up tension, Itar-Tass news agency quoted a diplomatic source as saying on Thursday.

BAGHDAD (Reuters) - Media watchdogs have urged Iraq's government to end harassment and intimidation of journalists and push for the release of a freelance photographer working for Reuters, who is being held by the U.S. military.

BEIJING (Reuters) - China demanded on Thursday that the United States return 17 Chinese Muslims held at Guantanamo Bay to China and not send them to the Pacific island nation of Palau, which has agreed to accept the detainees.

AP - As the Obama administration takes a half-step toward taming executive pay, Congress might consider a fuller stride.

Reuters - The World Health Organisation (WHO) was poised on Thursday to declare that the new H1N1 virus has caused the first influenza pandemic in more than 40 years, health sources said on Thursday.

Reuters - U.S. foreclosure activity for May ebbed from April's record, but mortgages still failed at a staggering pace as President Barack Obama's rescue programs had not had time to fully take root, RealtyTrac said on Thursday.

Reuters - Russia does not expect North Korea to respond to U.N. sanctions for its nuclear test with moves that would further ratchet up tension, Itar-Tass news agency quoted a diplomatic source as saying on Thursday.

Reuters - Media watchdogs have urged Iraq's government to end harassment and intimidation of journalists and push for the release of a freelance photographer working for Reuters, who is being held by the U.S. military.

GENEVA (Reuters) - The World Health Organization (WHO) was poised on Thursday to declare that the new H1N1 virus has caused the first influenza pandemic in more than 40 years, health sources said on Thursday.

PARIS (Reuters) - Air France is not yet convinced that faulty speed sensors were to blame for the loss of one of its planes over the Atlantic, but it is replacing old sensors as a precaution, the airline's chief executive said on Thursday.

AP - Tehran was quiet after a week of frenzied campaign activity as Iranians prepared to head to the polls Friday in a crucial presidential election that will be closely watched across the Middle East and Washington.

AP - Stock index futures rose modestly Thursday morning, pointing to a higher opening on Wall Street ahead of some key economic data.

AP - A mug shot of Phil Spector released Wednesday reveals that prison has been a hair-raising experience for the legendary music producer. Spector, known for his many elaborate hairstyles over the years, had to abandon his wigs after being sentenced last month to 19 years to life for killing actress Lana Clarkson.

AP - A real estate agent says a resident of Boston's upscale Back Bay section plunked down $300,000 to own what is believed to be the priciest parking space in the city's history.

AP - The Orlando Magic, trying to become the fourth team in history to overcome an 0-2 deficit in the finals, were feeling better about their chances as they prepared for Thursday's Game 4.

Reuters - Air France is not yet convinced that faulty speed sensors were to blame for the loss of one of its planes over the Atlantic, but it is replacing old sensors as a precaution, the airline's chief executive said on Thursday.

Reuters - Russia does not expect North Korea to respond to U.N. sanctions for its nuclear test with moves that would further ratchet up tension, Itar-Tass news agency quoted a diplomatic source as saying on Thursday.

AFP - The World Health Organization gathered its top scientific experts for an emergency meeting on Thursday to decide whether to declare a swine flu pandemic, with 74 countries now affected by the virus.

GENEVA (Reuters) - The World Health Organization was poised on Thursday to declare that the new H1N1 virus has caused the first influenza pandemic in more than 40 years, health sources said on Thursday.

WASHINGTON (Reuters) - Sales at U.S. retailers rose in May and the number of workers filing new applications for jobless benefits fell for a fourth straight week last week, according to official data on Thursday that suggested the recession was abating.

TEHRAN (Reuters) - Iran's presidential candidates ended a hard-fought and bitter campaign on Thursday, the eve of an election which reformists hope will prevent hardline Mahmoud Ahmadinejad winning a second term.

BANNU, Pakistan (Reuters) - Pakistan unleashed helicopter gunships and artillery to kill scores of Taliban fighters, officials said on Thursday, after opening a second front against militants near their stronghold in the Waziristan tribal region.

BRUSSELS (Reuters) - North Korea is unlikely to respond militarily to planned U.N. sanctions for its nuclear test, although the possibility should not be completely dismissed, U.S. Defense Secretary Robert Gates said on Thursday.

AP - The World Health Organization has told its member nations it is declaring a swine flu pandemic — the first global flu epidemic in 41 years.

AP - The number of newly laid-off Americans filing jobless claims fell more than expected last week and retail sales grew in May for the first time in three months. But a rise in the number of people continuing to receive jobless aid signaled that an economic recovery is still far off.

AP - Four Guantanamo Bay detainees have been released and resettled in Bermuda, U.S. officials said Thursday.

AP - Iran's raucous election campaign fell silent a day before the vote as rallies were barred Thursday to give the public time to reflect on whether they want to keep hard-line President Mahmoud Ahmadinejad in power or replace him with a reformist more open to closer ties with the West.

AP - The nation's largest doctors group isn't sold on President Barack Obama's call for a public health plan and could be a hurdle to his reform efforts.

AP - 'Late Show' host David Letterman is apologizing, sort of, for jokes about Alaska Gov. Sarah Palin and one of her teenage daughters.

Reuters - The World Health Organization was poised on Thursday to declare that the new H1N1 virus has caused the first influenza pandemic in more than 40 years, health sources said on Thursday.

Reuters - Sales at U.S. retailers rose in May and the number of workers filing new applications for jobless benefits fell for a fourth straight week last week, according to official data on Thursday that suggested the recession was abating.

Reuters - Iran's presidential candidates ended a hard-fought and bitter campaign on Thursday, the eve of an election which reformists hope will prevent hardline Mahmoud Ahmadinejad winning a second term.

Reuters - Pakistan unleashed helicopter gunships and artillery to kill scores of Taliban fighters, officials said on Thursday, after opening a second front against militants near their stronghold in the Waziristan tribal region.

Reuters - North Korea is unlikely to respond militarily to planned U.N. sanctions for its nuclear test, although the possibility should not be completely dismissed, U.S. Defense Secretary Robert Gates said on Thursday.

AFP - The World Health Organisation declared a swine flu pandemic on Thursday, raising its alert to the maximum level six, the Swedish government said.

AFP - Iran is gearing up on Thursday for a fiercely-contested presidential election, with passions running high after a campaign of mass public rallies, stormy television debates and mudslinging.

GENEVA (Reuters) - The World Health Organization declared the first flu pandemic of the 21st century on Thursday, Sweden's health ministry said.

WASHINGTON (Reuters) - U.S. retail sales rose for the first time in three months in May and the number of workers filing new claims for jobless benefits last week hit the lowest level since January, suggesting the recession was abating.

AP - American households lost $1.33 trillion of their wealth in the first three months of the year as the recession took a bite out of stock portfolios and dragged down home prices.

AP - This lobster will catch your eye, but not because you're imagining its tail dipped in butter. It is bright orange and yellow, even though it's never been near a boiling pot.

Reuters - The World Health Organization declared the first flu pandemic of the 21st century on Thursday, Sweden's health ministry said.

Reuters - U.S. retail sales rose for the first time in three months in May and the number of workers filing new claims for jobless benefits last week hit the lowest level since January, suggesting the recession was abating.

AFP - The World Health Organisation was poised to declare its first influenza pandemic in 40 years after an emergency meeting of scientific experts Thursday on a swine flu outbreak which has hit 74 countries.

WASHINGTON (Reuters) - CIA Director Leon Panetta said on Thursday the U.S. intelligence agency believes al Qaeda leader Osama bin Laden is hiding in Pakistan and hopes joint operations with Pakistani forces will find him.

AP - An 88-year-old white supremacist has been charged with murder for killing the security guard who had opened the door to let him into the U.S. Holocaust Memorial and Museum, officials said Thursday.

AP - President Barack Obama went to the nation's heartland Thursday to challenge critics of his proposed health care overhaul, asking: 'What's the alternative?'

AP - More than 2 million households are in danger of seeing their major broadcast TV channels disappear into a fuzz of static when analog service ends Friday, according to surveys.

Reuters - CIA Director Leon Panetta said on Thursday the U.S. intelligence agency believes al Qaeda leader Osama bin Laden is hiding in Pakistan and hopes joint operations with Pakistani forces will find him.

AFP - The swine flu crisis has escalated into the world's first influenza pandemic in 40 years, the World Health Organization declared Thursday, after infecting tens of thousands of people in 74 countries.

WASHINGTON (Reuters) - U.S retail sales rose for the first time in three months in May and the number of workers filing new claims for jobless benefits last week hit the lowest level since January, fostering hope the recession was abating.

LONDON (Reuters) - The youngest detainee held at the U.S. prison at Guantanamo Bay, seized when he was just 14 years old, has been released after seven years in captivity, his lawyers said on Thursday.

NEW YORK (Reuters) - U.S. foreclosure activity for May ebbed from April's record, but mortgages still failed at a staggering pace as President Barack Obama's rescue programs had not had time to fully take root, RealtyTrac said on Thursday.

AP - Congress struck the government's strongest anti-smoking blow in decades Thursday with a Senate vote to give regulators new power to limit nicotine in cigarettes, drastically curtail ads and ban candied tobacco products aimed at young people.

AP - An 88-year-old white supremacist was charged with murder Thursday, a day after officials said he left a signed anti-Semitic screed in his car outside the U.S. Holocaust Memorial Museum, then gunned down a security guard who opened the door to let him in.

AP - The CIA believes Osama bin Laden is still in Pakistan, and the spy agency is hoping to close in on him as that country's military cracks down on the northwestern tribal area where he is thought to be hiding. CIA Director Leon Panetta told reporters after a speech on Capitol Hill Thursday that finding bin Laden remains one of the CIA's top priorities.

AP - President Barack Obama's controversial former pastor, the Rev. Jeremiah Wright, is blaming 'them Jews' for keeping him from speaking to the president. Wright, the former pastor of Chicago's Trinity United Church of Christ, said he hasn't spoken to Obama since he became president.

AP - Officers were not chasing a car that jumped a curb, crashed into a crowd and killed a woman and three young children, Philadelphia's police commissioner said Thursday.

AP - The forensics expert hired by David Carradine's family has concluded that the 'Kung Fu' actor did not commit suicide, but said that more information was needed from Thai investigators before the cause of death could be determined.

AP - A dog that ran off from its owner in Seattle's Seward Park found and ate some marijuana and got high. Owner Jen Nestor Waddell told KING-TV the 11-year-old black Lab mix named Jack was 'just stoned' May 12 after they returned home from the park. The dog's eyes glossed over and he had trouble walking.

AP - Pinch-hitter Colby Rasmus hit a go-ahead single in the eighth inning after a costly error by center fielder Cody Ross, sending the St. Louis Cardinals over the Florida Marlins 6-5 Thursday.

Reuters - U.S retail sales rose for the first time in three months in May and the number of workers filing new claims for jobless benefits last week hit the lowest level since January, fostering hope the recession was abating.

Reuters - The youngest detainee held at the U.S. prison at Guantanamo Bay, seized when he was just 14 years old, has been released after seven years in captivity, his lawyers said on Thursday.

Reuters - U.S. foreclosure activity for May ebbed from April's record, but mortgages still failed at a staggering pace as President Barack Obama's rescue programs had not had time to fully take root, RealtyTrac said on Thursday.

WASHINGTON (Reuters) - U.S. retail sales rose in May for the first time in three months and the number of workers filing new claims for jobless benefits last week hit a January low, fostering hope the recession was abating.

AP - The Senate struck a historic blow against smoking in America Thursday, voting overwhelmingly to give regulators new power to limit nicotine in the cigarettes that kill nearly a half-million people a year, to drastically curtail ads that glorify tobacco and to ban flavored products aimed at spreading the habit to young people.

AP - The Marine Corps commandant says that all but a few dozen of the 16,000 Marines now in Iraq will be out by next spring, putting a solid end date on a long-anticipated exit for the corps.

AP - Chastity Bono is having a sex change to become a man. A spokesman for the daughter of Sonny and Cher says Bono 'has made the courageous decision to honor his true identity' and began the sex-change process earlier this year.

AP - A dog that ran off from its owner in Seattle's Seward Park found and ate some marijuana and got high. Owner Jen Nestor Waddell told KING-TV the 11-year-old black Lab mix named Jack was 'just stoned' May 12 after they returned home from the park. The dog's eyes glossed over and he had trouble walking.

Reuters - U.S. retail sales rose in May for the first time in three months and the number of workers filing new claims for jobless benefits last week hit a January low, fostering hope the recession was abating.

Reuters - Iranians vote on Friday in a presidential election which pits hardline President Mahmoud Ahmadinejad against a former prime minister who sharply criticizes his economic record and seeks detente with the West.

WASHINGTON (Reuters) - The U.S. Senate on Thursday backed a historic plan giving the U.S. Food and Drug Administration sweeping power over cigarettes and other tobacco products, allowing the agency to curb advertisements, require stronger package warnings and inspect manufacturers.

TEHRAN (Reuters) - Iranians vote on Friday in a presidential election which pits hardline President Mahmoud Ahmadinejad against a former prime minister who sharply criticizes his economic record and seeks detente with the West.

LONDON (Reuters) - An African detainee held at the U.S. prison camp at Guantanamo Bay since he was a teenager has been released without charge after more than seven years in captivity, his lawyers said on Thursday.

BRUSSELS (Reuters) - North Korea is unlikely to respond militarily to planned U.N. sanctions for its nuclear test, although the possibility should not be completely dismissed, U.S. Defense Secretary Robert Gates said on Thursday.

AP - North Korea may be preparing for its third nuclear test, a show of defiance as the United Nations considers new sanctions on the dictatorship for conducting an underground nuclear explosion in May, according to a U.S. government official.

AP - All but a few dozen of the 16,000 Marines now in Iraq will be out by next spring, the Marine Corps commandant said Thursday, putting a solid end date on a long-anticipated exit. Gen. James T. Conway said his Marine commanders are already moving equipment out of Anbar Province, where his forces have largely been concentrated. But the larger exodus will begin shortly after the Iraqi elections.

AP - Aaron Cook pitched shutout ball into the seventh inning and the Colorado Rockies won their eighth straight game, holding off the Milwaukee Brewers 5-4 Thursday for another sweep.

Reuters - The U.S. Senate on Thursday backed a historic plan giving the U.S. Food and Drug Administration sweeping power over cigarettes and other tobacco products, allowing the agency to curb advertisements, require stronger package warnings and inspect manufacturers.

Reuters - An African detainee held at the U.S. prison camp at Guantanamo Bay since he was a teenager has been released without charge after more than seven years in captivity, his lawyers said on Thursday.

WASHINGTON (Reuters) - The U.S. Senate on Thursday backed a historic plan giving the U.S. Food and Drug Administration sweeping power over cigarettes and other tobacco products, allowing the agency to curb advertisements, require stronger package warnings and inspect manufacturers.

AP - If workers cleaning up the nation's most contaminated nuclear site didn't have enough to worry about, now they've got to deal with radioactive wasp nests. Mud dauber wasps built the nests, which have been largely abandoned by their flighty owners, in holes at south-central Washington's Hanford nuclear reservation in 2003.

AP - Michael Phelps has descended from the mountains of Colorado still stinging from two recent losses in the pool.

Reuters - The U.S. Senate on Thursday backed a historic plan giving the U.S. Food and Drug Administration sweeping power over cigarettes and other tobacco products, allowing the agency to curb advertisements, require stronger package warnings and inspect manufacturers.

AP - Iranians began voting Friday in a crucial presidential election pitting hard-line President Mahmoud Ahmadinejad against a pro-reform candidate who is more open to improving relations with Washington.

AP - Hedo Turkoglu scored 15 points, Dwight Howard grabbed 14 rebounds, and the Orlando Magic took a 49-37 halftime lead over the frustrated and foul-plagued Los Angeles Lakers in Game 4 of the NBA finals on Thursday night.

Reuters - Iranians began voting on Friday in a closely-fought presidential election pitting conservative President Mahmoud Ahmadinejad against more moderate rivals seeking better ties with the West.

AFP - Iran began voting for a new president after a fiery campaign which has seen moderate ex-premier Mir Hossein Mousavi emerge as the main challenger to incumbent hardliner Mahmoud Ahmadinejad.