Obama says Koran burning can badly damage U.S. abroad

WASHINGTON/GAINESVILLE, Florida (Reuters) - President Barack Obama said on Friday he hoped a Florida pastor would drop a plan to burn Korans on U.S. soil, saying such an act could deeply harm the United States abroad.

Obama says Republicans holding recovery hostage

WASHINGTON (Reuters) - President Barack Obama accused Republicans on Friday of holding the middle class hostage and defended his efforts to stimulate the sluggish economy as he tries to reverse grim election prospects for his fellow Democrats in November.

U.S. troops charged with murder of Afghan civilians

WASHINGTON (Reuters) - Twelve U.S. soldiers have been charged with gruesome crimes in Afghanistan ranging from murdering civilians to keeping body parts as war trophies -- revelations that the Pentagon said on Thursday damaged America's image around the world.

Iran cancels release of detained American: report

TEHRAN (Reuters) - Iran has canceled the planned release of a detained American woman because the legal process has not been completed, Tehran prosecutor Abbas Jafari Dolatabadi was quoted as saying on Friday.

Judge rules ban on gays in military unconstitutional

WASHINGTON (Reuters) - The U.S. military rule banning openly gay people from serving in the armed forces violates constitutional rights to free speech and due process, a federal judge in southern California ruled Thursday.

Castro says comment on Cuban economy misunderstood

HAVANA (Reuters) - Fidel Castro said on Friday his recent comment that communist-led Cuba's economic model does not work was badly understood and that what he really meant was that capitalism does not work.

Four dead in San Francisco suburb gas line inferno

SAN BRUNO, California (Reuters) - At least four people died after a gas line explosion and fire razed 38 homes in a San Francisco suburb, and officials expected the death toll to rise on Friday as firefighters search the wreckage.

Hitmen kill 25 in bloodiest day on Mexico-U.S. border

CIUDAD JUAREZ, Mexico (Reuters) - The murders of 25 people by suspected drug hitmen on the U.S.-Mexico border on Thursday was the bloodiest day in almost three years in an area gripped by an escalating drug war, officials said on Friday.

U.S. resumes funding controversial stem cell research

WASHINGTON (Reuters) - The U.S. government said it was resuming work on controversial human embryonic stem cell research on Friday after an appeals court ruled in its favor.

Obama sees enormous hurdles in Mideast peace talks

WASHINGTON (Reuters) - President Barack Obama said Friday he saw "enormous hurdles" ahead in Middle East peace negotiations, but said it was a risk worth taking and the United States would remain engaged even if talks break down.

Anti-Islam pastor called controlling, "mad"

MIAMI (Reuters) - The Florida Christian preacher who has received world fame and condemnation by threatening to burn a pile of Korans demands strict obedience and unpaid labor from his tiny flock and sells used furniture out of his sanctuary, those who know him say.

Obama makes call for religious tolerance

WASHINGTON (Reuters) - President Barack Obama made an impassioned plea for religious tolerance Friday, saying the United States is not at war with Islam, as he sought to quell signs of anti-Muslim sentiment at home that have raised tensions overseas.

Obama taps Goolsbee as top White House economist

WASHINGTON (Reuters) - President Barack Obama on Friday named a member of his inner circle as top White House economist and gave a strong personal endorsement to a leading candidate to run his new consumer protection bureau.

Analysis: Don't use the "s" word in Washington

WASHINGTON (Reuters) - "Stimulus" has become a dirty word in Washington.

Florida pastor's daughter says "he needs help"

BERLIN (Reuters) - The estranged daughter of a U.S. pastor who has threatened to burn copies of the Koran believes he has gone mad and needs help, she said in a German media interview conducted on Friday.

Analysis: Obama makes tax cuts a centerpiece of campaign

WASHINGTON (Reuters) - President Barack Obama dared Republicans on Friday to wage an election campaign on tax cuts, telling voters his opponents are the party of the rich and all but ruling out a compromise before November elections.

New York imam says no meeting planned with pastor

NEW YORK (Reuters) - The imam behind a proposed Islamic cultural center and mosque near the World Trade Center site said on Friday he has no meeting planned with the Florida pastor who had threatened to burn copies of the Koran.

Koran-burning plan is an attack on Islam: reports

DUBAI (Reuters) - A threat by a U.S. pastor to commemorate the September 11 attacks by burning copies of the Koran is an attack on Islam and a deliberate attempt to infuriate Muslims, Gulf Arab newspapers said.

Factbox: Highlights from Obama's news conference

WASHINGTON (Reuters) - President Barack Obama held a news conference on Friday at the White House. Following are some of the highlights from the question-and-answer session:

Obama says prepared to sign tax measure this month

WASHINGTON (Reuters) - President Barack Obama said on Friday he was prepared to sign a bill this month to ensure that U.S. middle class families get tax relief and said it makes no sense to taxes for the wealthiest Americans.