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Reuters World News Highlights at 0745 GMT, Sep 04

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ISLAMABAD - Pro-Taliban Pakistani militants are trying to fuel a sectarian rift, Interior Minister Rehman Malik said on Saturday, as a new wave of violence piled pressure on a government already struggling with a flood crisis.

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WASHINGTON - President Barack Obama said on Friday he would outline new measures next week to boost the U.S. economy, but analysts were skeptical he would be able to deliver a big enough package to lift growth significantly.

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JOHANNESBURG - Striking South African state workers held small-scale protests on Friday as union and government negotiators prepared for bargaining next week aimed at ending the three-week walkout by about 1.3 million.

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BEIJING - North Korea is angling for foreign investment with a new government body set up to attract money into the isolated country, but little is likely to be forthcoming, a regular visitor to Pyongyang said on Friday.

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WELLINGTON - Authorities declared an overnight curfew for Saturday after a major earthquake hit New Zealand's second biggest city, Christchurch, bringing down power lines and bridges and wrecking roads and building facades.

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TEHRAN - Iranian President Mahmoud Ahmadinejad urged Palestinians to keep up their armed struggle against Israel a day after Israeli and Palestinian leaders agreed to continue talks on a U.S.-backed peace deal.

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HYANNIS - Hurricane Earl, which earlier in the week was a storm of major proportions that threatened the U.S. East Coast, weakened to a tropical storm on Friday as it swirled offshore towards Canada.

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SEOUL - South Korean Foreign Minister Yu Myung-hwan has resigned following accusations of nepotism involving his daughter's employment, government sources and the ministry said on Saturday.

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HOUSTON - BP Plc successfully replaced a failed blowout preventer from atop its ruptured Gulf of Mexico oil well late on Friday, the top U.S. official overseeing the spill response said.

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MAPUTO - Mozambique police fired rubber bullets and teargas at demonstrators on Friday as rioting flared in the capital following two days of protests over high bread prices in which ten people were killed and hundreds wounded.


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