US credibility as world power takes a plunge worldwide
American diplomats have expressed fears that the mounting roar of the White House sex scandals might have an impact on America's ability to carry out an effective foreign policy.

Arafat, Netanyahu talk peace, but this time on the phone
Israeli Prime Minister Benjamin Netanyahu and Palestinian President Yasser Arafat conversed on the telephone on Tuesday for the first time in months to discuss long-stalled peace negotiations, a senior Israeli official said on Thursday.

Chinese cities brace for fresh tidal surge
Cities along the Yangtze river braced for a new tidal surge on Thursday as China slowly admitted the extent of the disaster from four months of flooding. The industrial city of Wuhan, which has already been badly hit by serious flooding, expected a new peak flood tide to hit on Friday.

  World Vignettes
  Monica gears up for date with grand jury
  Kofi Annan defers trip to hear Butler's woes
  East Timor to get limited immunity
  70 more die in Korea rains
  Singapore Press Holdings initiates capital distribution
  Brunei may seek foreign help to revamp economy
  Russia caught up in fighting markets
  Swiss banks to stay unhurt by Holocaust claims
  Taiwan's Acer group launches re-engineering
  Thailand seems all set to gamble to save banks
  CBOT, CME step up strategic alliance talks
  Germany seen immune to Russian woes
  Drought costs Texas farmers $1.75 billion
  HK's forex market tense amid speculative attacks
  European stocks under pressure on Wall St fears
  Toyota says yen not hurting companies
  Indonesia to import 1m tonnes of sugar
  World Briefing
  Cathay Pacific expected to see more red ink
  Wall Street uncertainty, currency instability rattle Asia
  Arco exit worries Californian oil producers
  Renault half-year sales jump 22%