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Reuters World News Highlights at 0230 GMT, Sept 6

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WORLD-HIGHLIGHTS

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CANBERRA - Australia's Labor Prime Minister Julia Gillard is strongly tipped to form a new minority government within 48 hours, ending a fortnight-long political limbo with the backing of three kingmaker independents.

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TOKYO - Nearly two-thirds of Japanese voters prefer Prime Minister Naoto Kan to powerbroker Ichiro Ozawa as premier, media polls showed on Monday ahead of a Sept. 14 ruling party leadership race that appears too close to call.

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JERUSALEM - A peace deal with the Palestinians will require a creative, new approach to issues that have defied resolution in past negotiations, Israeli Prime Minister Benjamin Netanyahu said on Sunday.

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KABUL - Afghanistan's Taliban said on Sunday they would attempt to disrupt elections this month and warned Afghans to boycott the vote, the first explicit threat against the poll by the hardline Islamists.

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MADRID - The Basque rebel group ETA called a halt to armed attacks on Sunday but the government said the declaration was not enough and urged the weakened organisation to renounce violence once and for all.

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GUATEMALA CITY - A massive landslide buried a crowd trying to dig out a bus from deep mud on Sunday, killing at least 22 people with dozens more feared dead, as torrential rains battered Guatemala.

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WASHINGTON - President Barack Obama will ask the U.S. Congress on Wednesday to increase and permanently extend a tax credit for business research as a way of boosting job growth, an administration officials said on Sunday.

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JOHANNESBURG - Unions representing South African state workers are expected to announce on Monday whether they will accept a government wage offer they previously rejected and end a strike by 1.3 million employees.

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CHISINAU - Moldova's Western-leaning government acknowledged on Sunday that a referendum it had strongly backed to hold popular elections for president appeared to have failed because of low voter turnout.

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WELLINGTON - A state of emergency after a 7.1 magnitude earthquake is keeping much of New Zealand's second-biggest city shut on Monday but financial markets have mostly shrugged off the quake as the long-term economic impact is seen limited.


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