Earl slows to tropical storm after hitting Canada HALIFAX, Canada (Reuters) - Earl has slowed to a tropical storm, with wind speeds of some 60 knots, or just below 70 mph, the Canadian Hurricane Center said on Saturday.

Taxpayers likely to face initial loss on GM IPO: sources NEW YORK/DETROIT (Reuters) - The U.S. government is likely to take a loss on General Motors Co in the first offering of the automaker's stock, six people familiar with preparations for the landmark IPO said.

Obama to address new economic ideas next Wednesday WASHINGTON (Reuters) - 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.

Curfew declared after 7.1 quake hits New Zealand WELLINGTON (Reuters) - 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.

Crime adds to misery for Pakistan's flood victims MEHMOOD KOT, Pakistan (Reuters) - Crime and the sale of donated aid supplies are undermining the aid effort for Pakistan's flood victims.

Mexican judge orders drug lord held 40 more days MEXICO CITY (Reuters) - A Mexican judge ordered Edgar "La Barbie" Valdez, believed to be one of the country's top drug bosses, held for 40 more days of investigation, the federal prosecutor's office said on Saturday.

Karzai announces "peace council" to push Taliban talks KABUL (Reuters) - An Afghan peace council to pursue talks with the Taliban has been set up, President Hamid Karzai said on Saturday, the latest step in a gradual move toward reconciliation with the Islamist insurgents.

Bomb kills 54 in Pakistan, Taliban threatens U.S. QUETTA, Pakistan (Reuters) - A suicide bomber struck a rally in the Pakistani city of Quetta on Friday, killing at least 54 people in the second major attack this week and piling pressure on a U.S.-backed government overwhelmed by a flood crisis.

Government says no leaking oil at Mariner platform HOUSTON (Reuters) - U.S. government inspectors found no leaking oil at Mariner Energy Inc's burned platform in the Gulf of Mexico, officials said late on Friday, allaying fears about more environmental damage after BP's massive spill.

BP replaces failed blowout preventer on Gulf well HOUSTON (Reuters) - 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.