Yemeni President Ali Abdallah Saleh minced no words in condemning the perpetrators of Wednesday's attack against the U.S. Embassy in Sanaa and all other attacks on foreigners, calling them a "blow to Yemen's national interests."

Using an angry and accusatory tone to his voice, President Saleh suggested that Islamic extremists must be arrested "wherever they may be."

"Attacks against foreigners damage our nation, our national interests, and national stability," he said. "God willing, we will track down the perpetrators in their hiding places and even grab them from their houses."

Addressing a gathering in the Red Sea port city of Hodeida, the president also asserted that Islamic extremists branding slogans like "death to America" and "death to Israel" to stir up public wrath were "harming the security and stability of their country."

The State Department warned U.S. citizens this week to avoid unessential travel to Yemen. - See Yemeni President Vows More Arrests in US Embassy Attack for the full report.

John McCain is nursing a narrow lead over Barack Obama in Florida even as voters say the Democrat is more trusted to handle their most important issue: the economy, according to a new Miami Herald poll.

The poll, taken Sept. 14-17 -- when Wall Street turmoil dominated world and national news -- gives McCain a 47 to 45 percentage point lead over Obama, with 7 percent undecided. The poll's margin of error was 3.5 percentage points.

But if the economic crisis deepens, ''Obama is in a position to improve his poll numbers, given the confidence in his handling of the economy,'' said Democratic pollster Tom Eldon of Schroth, Eldon & Associates, who conducted the poll with Republican pollster Kellyanne Conway. The poll was also underwritten by the St. Petersburg Times and Bay News 9.

McCain's razor-thin lead virtually guarantees, however, that ''once again, Florida is going to be the pivotal battleground state in this election,'' he said.

The survey of 800 likely voters echoed the economic jitters of the nation, as 43 percent of voters said the economy should be the next president's top concern. That's a three-to-one margin over the next two top issues: managing the war in Iraq, at 14 percent, and protecting us from terrorism, at 12 percent. - See Herald's Florida poll: McCain 47%; Obama 45% for the complete report.

South Africa faces a power vacuum, after the ruling African National Congress forced President Thabo Mbeki to resign and his deputy said she would follow suit.

ANC leader Jacob Zuma is president-in-waiting, with the ANC having nominated him to succeed Mbeki. He can't take up the post until elections, due next year, are held because he isn't a lawmaker. A caretaker president is set to be appointed by parliament this week, with Baleka Mbete, the speaker of legislature and ANC chairwoman, the frontrunner for the post.

Zuma, 66, ousted Mbeki as party leader in December, with the support of South Africa's biggest labor unions and the Communist Party, which believe he will back their demands for increased spending on social programs. Zuma has pledged to improve the health and education systems and to do more to fight crime. He also has ruled out wholesale changes to Mbeki's economic policies.

``The critical question for the economy is whether there will be policy continuity,'' Goolam Ballim, chief economist at Standard Bank Group Ltd., Africa's biggest bank, said in an interview from Johannesburg late yesterday. ``The day-to-day governing of South Africa could enter a stage of inertia which would have an immediate impact on financial markets.' - See South Africa Faces Power Vacuum After ANC Forces Mbeki to Quit for the full report.

A massive suicide truck bomb ripped through a luxury hotel in the Pakistani capital Saturday night, killing at least 60 people and wounding more than 250 as the building was engulfed in flames, officials said.

Witnesses and officials said the bomber drove up to one side of the heavily guarded hotel and detonated more than a ton of explosives, leaving a 30-foot-deep crater.

Television footage of the Islamabad Marriott Hotel, located just blocks from major government buildings, showed smoke billowing and flames leaping from windows as bloodied survivors staggered out of the lobby.

Police said that many people had been trapped inside and that the death toll would probably rise. Officials said some of the victims were foreigners, including at least one American. Marriott said in a statement that several hotel security guards who had gone out to examine the truck were among the dead.

The bombing occurred just hours after the new president of this nation of 160 million delivered his first speech to Parliament and vowed to free Pakistan from the "shackles of terrorism." - See Blast Kills Dozens in Pakistan for the complete report and images.

In an ornate palace built by Saddam Hussein, the United States military command in Iraq changed hands Tuesday from Gen. David H. Petraeus, who created the strategy known as the surge, to Gen. Ray Odierno, who oversaw its day-to-day operations across a country that has witnessed a significant drop in violence.

Attending the hour-long hand-over ceremony were Defense Secretary Robert M. Gates; Adm. Mike Mullen, chairman of the Joint Chiefs of Staff; Gen. Martin Dempsey, acting Central Command commander; and senior Iraqi government and military officials. Mr. Gates later traveled on to Kabul, Afghanistan.

In his first, brief comments as commander of the multinational forces in Iraq, General Odierno said, “We must realize that these gains are fragile and reversible, and our work here is far from done.”

Formerly the No. 2 commander, he faces the challenge of improving on the hard-earned security gains in Iraq with fewer troops, as the United States begins preparations to withdraw 8,000 troops by early next year. The overall American military presence in Iraq — 15 combat brigades and support and logistics personnel — would then number about 138,000.

General Petraeus takes over as commander of the American military’s Central Command - See Odierno Succeeds Petraeus in Iraq for the complete report.

The Federal Reserve left its main interest rate at 2 percent, rebuffing calls by some investors for a cut after Lehman Brothers Holdings Inc.'s bankruptcy shook markets worldwide.

``Downside risks to growth and the upside risk to inflation are both of significant concern,'' the Federal Open Market Committee said in a statement in Washington. ``The committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability.''

Chairman Ben S. Bernanke and his colleagues noted that financial strains have ``increased significantly,'' signaling that they will continue to address the turmoil with emergency lending and aim monetary policy at a longer-term economic forecast.

Stocks initially fell after the decision, then rallied after a report that the central bank is considering a loan to American International Group Inc. That would be a shift from yesterday, when officials were inclined against providing funds.

``Tight credit conditions, the ongoing housing contraction, and some slowing in export growth are likely to weigh on economic growth over the next few quarters,'' the FOMC statement said. ``Over time, the substantial easing of monetary policy combined with ongoing measures to foster market liquidity, should help to promote moderate economic growth.'' - See Fed Keeps Rate at 2%, Rebuffing Call for Reduction for the full report.

Financial markets are betting on an interest-rate cut by the Federal Reserve some time this month, but it's not certain that the central bank will deliver it at Tuesday's regularly scheduled meeting of its rate-setting panel.

A month ago, the Fed signaled strongly that its next move would be to raise interest rates, not cut them. But that was before the seizure of Fannie Mae and Freddie Mac, before the extraordinary collapse of Lehman Bros., and before the weekend fire sale of Merrill Lynch.

For Fed policymakers, the question at Tuesday's meeting of the Federal Open Market Committee will be: Although we said 'no' to any direct aid to Lehman Bros., Merrill Lynch, or American Insurance Group, what more should we do to ease credit conditions for a financial market that's still under siege?

For investors, the question will be: How lucky do you feel? There are compelling arguments for a rate cut from the current 2% target rate, and equally compelling reasons to think the Fed won't cut rates, at least not on Tuesday.
The lack of guidance could make for one of the most interesting "Fed day" trading sessions in recent years. - See Market looks for a rate cut, but it's not certain for the full article.

Polling in five key battleground states shows John McCain and Barack Obama neck-and-neck with seven weeks left until Election Day.

McCain holds a slight advantage over Obama in Colorado, Florida, and Ohio, while the candidates are tied in Pennsylvania and Virginia. In only one state — Florida — does the gap between McCain and Obama exceed three percentage points in polls with a four-and-a-half percentage point margin of sampling error.

The overriding message from these results is that the race remains very close.

The biggest change is in Colorado, where McCain now leads by 48 percent to Obama’s 46 percent. Just a week ago, Obama had a three-point edge in this western state. The current results are similar to the Rasmussen Reports Colorado polling conducted in Aug., just before the Democratic convention.

McCain now holds a 49 percent to 44 percent advantage in Florida. Last week, the candidates were tied at 48 percent in the Sunshine State.

In Ohio, McCain continues to have the advantage, 48 to 45 percent. That’s closer than the results from last week, which showed McCain with a 51 to 44 percent advantage over his Democratic rival. - See FOX News/Rasmussen Reports Poll: Race Remains Close in Swing States for the complete report.

American International Group Inc., the biggest U.S. insurer by assets, may be propped up by $70 billion to $75 billion in loans arranged by Goldman Sachs Group Inc. and JPMorgan Chase & Co., according to people familiar with the situation.

The Federal Reserve urged AIG to seek private capital and discouraged the insurer from expecting a loan from the central bank, according to two people with knowledge of the discussions. Goldman and JPMorgan are working with AIG to determine how much the New York-based insurer needs, said two more people, all of whom declined to be identified because negotiations are private.

Wall Street's biggest firms are working together to avoid a failure at AIG, which sold the banks and other investors protection on $441 billion of fixed-income assets, including $57.8 billion in securities tied to subprime mortgages. The companies convened at the New York Fed for a fourth consecutive day, this time to discuss AIG, which plunged 61 percent today in New York trading. - See AIG Seeks Funds From JPMorgan, Goldman After Fed Balks at Loan for the complete report.

Bolivian President Evo Morales and a group of South American leaders have begun an emergency summit in an effort to resolve a political crisis in his country.

Mr. Morales and the other heads of state started their meeting Monday in Santiago, Chile. After arriving in Chile, Mr. Morales said he was looking for support from his South American counterparts. He also accused opposition Bolivian governors of mounting a coup against him.

South American leaders scheduled the talks to discuss the conflict that killed at least 28 people last week.

Government and opposition supporters clashed last week over Mr. Morales' plans to rewrite the constitution and redistribute land and natural gas revenues to the poor. The conflict pits the rich against the poor, many of whom are indigenous people like the president himself.

The governor of the oil-rich Tarija province, Mario Cossio, told reporters he and Mr. Morales will meet when Mr. Morales returns from Chile. - See Regional Leaders Gather to Discuss Bolivian Crisis for the full report.

EU foreign ministers said the measures would continue until the new government took steps to restore democracy.

Robert Mugabe said he was committed to national unity and would do "his best".

His rival Morgan Tsvangirai, the new prime minister, said the agreement provided the best hope for Zimbabwe and called for its full implementation.

EU foreign policy chief Javier Solana said a decision on lifting sanctions on Zimbabwean officials had been postponed until October.

Diagram of Zimbabwe's power-sharing deal

The International Monetary Fund, which suspended financial and technical assistance in 2006, said it stood ready for talks with the new government about stabilising the economy.

But it added that Harare would have to take clear steps to resolve the economic crisis in a country where inflation stands at more than 11,000,000%.

'Painful compromises'

In a statement, the 27 EU ministers said they would watch for the agreement's implementation, especially the "immediate cessation of all forms of intimidation and violence".

UK Foreign Secretary David Miliband said Zimbabwe's new administration would have to make significant progress before the lifting of sanctions was considered.

Meanwhile, a senior US diplomat told the BBC that Washington wanted to help Zimbabwe, but would need to see proof that Mr Mugabe had relinquished some genuine power to Mr Tsvangirai, leader of the Movement for Democratic Change (MDC). - See US and EU keep Zimbabwe sanctions for the full report.

The United States stepped up the diplomatic skirmish with its left-wing adversaries in Latin America on Friday, saying it would expel the Venezuelan ambassador and declaring that Venezuela’s top two intelligence officials had supported the “narco-terrorist activities” of rebels in the region.

The moves heightened the political tensions that have been building between the United States, Venezuela and Bolivia in recent days. On Wednesday, Bolivia’s embattled president, Evo Morales, expelled the American ambassador there, Philip S. Goldberg, accusing him of supporting rebellious groups in eastern Bolivia.

Then on Thursday, President Hugo Chávez of Venezuela said he was expelling the American ambassador to his country, Patrick Duddy, contending that an American-supported coup plot had been discovered.

The State Department responded by declaring Bolivia’s ambassador to Washington persona non grata. Then on Friday morning, it said it would expel Venezuela’s ambassador, while the Treasury Department accused the Venezuelan intelligence officials of aiding Colombia’s largest rebel group, the Revolutionary Armed Forces of Colombia, or FARC, “even as it terrorized and kidnapped innocents.”

The department said that the head of Venezuela’s military intelligence agency, Hugo Carvajal Barrios, protected drug shipments from seizure by Venezuelan anti-drug authorities and helped provide weapons to the FARC, which the United States considers a terrorist organization. The department also said that Henry Rangel Silva, the director of the DISIP intelligence agency, “materially assisted” the FARC’s drug trafficking activities and pushed for greater cooperation between the Venezuelan government and the rebels. - See U.S. Calls Venezuelan Officials Rebel Supporters for the full report.