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| September 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Lloyds List)

Bombs hit Israel

BOMB blasts ripped through two buses in the southern Israeli city of Beersheba, killing at least 12 people, in attacks claimed by Hamas. The bombings broke a five-month lull in such violence in Israel.

A MILITANT Iraqi group said it had killed 12 Nepali hostages and showed pictures of one being beheaded and others being gunned down in the worst violence against captives since a wave of kidnappings erupted in April.

Meanwhile, an anxious French government accelerated its diplomatic bid to save two French reporters held hostage in Iraq as a fresh kidnapper deadline neared for Paris to scrap a ban on Muslim headscarves in schools.

REPUBLICANS hope to show voters a softer side on the second day of their convention, with first lady Laura Bush and movie star turned California Governor Arnold Schwarzenegger taking centre stage.

FORMER Yugoslav President Slobodan Milosevic launched his long-delayed defence, branding his war crimes trial a 'distortion of history' and blaming the West for Yugoslavia's collapse.

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