Reuters World News Highlights

WASHINGTON – The Democratic Party chief said yesterday he  was feeling more optimistic that Democrats would retain control  of the U.S. Congress with just days left before the Nov. 2  election.
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GYEONGJU –
Excited talk of currency wars has given way to an  uneasy truce, but what has so far been a phoney war could yet  break out into outright hostilities.
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PARIS – His ratings are in tatters and most of France  loathes his pension reform, but President Nicolas Sarkozy hopes  to turn the page swiftly with a cabinet reshuffle and some  image-boosting initiatives as G20 president.
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BAGHDAD – A Sunni-backed, cross-sectarian alliance which won  the most votes in Iraq’s March election said on Sunday it  rejected the government’s auction of gas field contracts, adding  a new element of uncertainty to the deals. – – – –
KABUL – Afghan President Hamid Karzai said yesterday he was  committed to disbanding private security companies, but  signalled he may consider exceptions for some development  projects after Washington asked for more discussions.
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LANZHOU, China – Chinese police yesterday broke up protests  against Japan in the northwestern city of Lanzhou over a  territorial dispute that has stoked tensions between Asia’s two  biggest economies.
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MOGADISHU –
Somali pirates seized control of the  German-owned merchant vessel Beluga Fortune in the Indian Ocean  yesterday, the second hijacking in the region in as many days, a  regional maritime official said.

GUANTANAMO BAY U.S. NAVAL BASE, Cuba – Canadian captive Omar  Khadr strolled across the sun-baked yard in one of the communal  camps at the Guantanamo Bay U.S. detention center in Cuba,  clearly aware that journalists were staring at him through the  fence. – – – –
JERUSALEM – Prime Minister Benjamin Netanyahu urged the  Palestinians on Sunday not to take unilateral steps towards  statehood, saying Israel was working closely with Washington on  ways to restart peace talks.
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WASHINGTON – The wife of a U.S. aid contractor jailed in  Cuba has written to President Raul Castro expressing her  husband’s regret for his work there and told Reuters the White  House has done little to gain his release.