Reuters World News Highlights

ROME – An Italian political crisis that has rattled the euro zone deepened on Wednesday when two party leaders ruled out the most likely options to form a government and avoid a new election.

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ALMATY – Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears about its atomic ambitions.

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VATICAN CITY – Pope Benedict bid an emotional farewell at his last general audience on Wednesday, acknowledging the “rough seas” that marked his papacy “when it seemed that the Lord was sleeping.”

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ISTANBUL – Jailed Kurdish militant leader Abdullah Ocalan is proposing to withdraw his fighters from Turkey by August if Ankara pushes through reforms under a draft plan to end a 28-year insurgency, media reports said on Wednesday.

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WASHINGTON – Positions hardened on Wednesday between President Barack Obama and Republican congressional leaders over the budget crisis even as they arranged to hold last-ditch talks to prevent harsh automatic spending cuts beginning this week.

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WASHINGTON – Conservative U.S. Supreme Court justices on Wednesday signaled strong doubts about the ongoing validity of a key part of the Voting Rights Act, passed in 1965 to end a century of attempts by formerly slaveholding Southern states to block blacks from voting.