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Reuters World News Highlights at 1645 GMT, Sep 03

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QUETTA, Pakistan - A suicide bomber struck at a rally in the Pakistani city of Quetta on Friday, killing at least 54 people in the second major attack this week, piling pressure on a government struggling with a flood crisis.

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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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WASHINGTON - U.S. employment fell for a third straight month in August, but the drop was far less than expected and private hiring surprised on the upside, easing pressure on the Federal Reserve to prop up economic growth.

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BAGHDAD - After an explosive device tore through the back of an armoured SUV carrying Chinese oil workers in Iraq in mid-July, security contractors said the U.S. military, not China's Daqing Petroleum, was the likely target.

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LONDON - BP Plc said the cost of dealing with its oil spill in the Gulf of Mexico had risen to $8 billion as the oil giant prepared to release the findings of an internal probe into the causes of the disaster.

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BERLIN - The grounds for criticising Germany for growing at the expense of others are fading, though it is still unclear whether its recovery will drag the rest of the euro zone with it.

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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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PARIS - France's trade union bosses said on Friday that the country's labour minister, increasingly plagued by an influence-peddling scandal, was no longer fit to defend a controversial reform of France's pension system.

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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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MILAN - Russia's plan to extend its grain export ban destabilises markets but does not bring closer a repeat of the 2007/2008 food crisis, a senior UN economist said on Friday as new protests flared in Mozambique after food riots.

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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 that saw seven people killed and hundreds wounded.

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DAKAR - Is Ghana being hit by the resource curse even before the oil starts flowing?


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