Markets Slide As Republican Rift Adds To US Default Fears — The Telegraph Global markets continued to slide as US Republican leaders scrambled to rescue a plan to cut the budget defict on Friday after rebel conservatives refused to back it, increasing uncertainty that a damaging debt default can be avoided. Europe followed Asian markets lower and Wall Street was set to open down. The FTSE 100 fell 56 points – or 1pc – to 5,815.90, while France’s CAC-40 shed 1pc and Germany’s DAX lost 0.9pc. “We’re basically standing on the edge of an abyss peaking over, with the bottom nowhere to be seen,” said IG Markets strategist Ben Potter in a report. Read more …. MIDDLE EAST Syrian revolt still spontaneous and leaderless . Tens of thousands rally in Syria; troops open fire . 40 dead in clash between Yemen army and tribes. U.S. still open to Iraqi request for military presence after 2011 . US military officials in Iraq warn of growing Iranian threat . Report: Shot Iranian said to be nuke expert. ASIA Talks on long-term Afghan-U.S. partnership stalled. 18 civilians killed in Helmand bomb: Afghan police. Pakistan: Up to 100,000 flee Kurram offensive. South Korean envoy downbeat on nuclear talks. US bases hit hard as S. Korea flooding wreaks havoc. AFRICA Libyan rebels battle to regain the upper hand . Fear, confusion among Libya’s rebels after murky killing of military chief . AU forces gain ground against Somali militants. Eritrea bankrolls rebels who block Somali aid, claims UN. Tens of thousands rally for unity in Egypt. South Sudan admitted to African Union as 54th member. EUROPE Spain prime minister calls early election for 20 November . Spain’s PM calls early elections in November. NATO takes charge of Kosovo border crossings. Norway attacks: Memorial services for victims held. Poland: Russians made mistakes in 2010 plane crash. AMERICAS Analysis: Return of Guatemalan military looms as left falters. Mexico: Worse than wartime Baghdad. Study: Mexico homicides rose 23 percent in 2010. Teen killer’s light sentence dismays a violence-weary Mexico. Rural US disappearing? Population share hits low. TERRORISM/THE LONG WAR ‘I wanted to get even’: Muslim U.S. soldier arrested over ‘plot to bomb Fort Hood’ refused Afghan service. Ex-Counterterrorism aide warns against complacency on Al Qaeda. Al Qaeda still likely to use WMD: Former officials. ECONOMY/FINANCE/BUSINESS Ugly choices await US Treasury if debt deal isn’t reached. U.S. economy growing at slowest pace since recession. Apple now has more cash than the U.S. government. Meet the countries in the Triple-A debt club.

CHATTING WITH CHILDREN – U.S. Marine Corps Lance Cpl. Chandra Francisco talks to children in the Sangin district in Afghanistan’s Helmand province, July 17, 2011. Francisco and U.S. Navy Petty Officer 2nd Class Amanda Richeal, both members of Female Engagement Team 15, were supporting Charlie Company, 1st Battalion, 5th Marine Regiment, and the Afghan National Army. U.S. Marine corps Cpl. Katherine Keleher Talks On Long-Term Afghan-U.S. Partnership Stalled — Washington Post KABUL — Negotiations to set the terms of the U.S. partnership with Afghanistan in the decade after 2014 are faltering as the two countries struggle to bridge the gap between their demands, according to U.S. and Afghan officials. After months of talks, some of the officials involved are growing increasingly pessimistic about the prospect of a substantive “strategic partnership” declaration anytime soon that would allow for a long-term U.S. troop presence in exchange for protection guarantees for Afghanistan and support for the nation’s security forces. U.S. -led NATO forces are set to leave Afghanistan by the end of 2014. Read more …. More News On Afghanistan FACTBOX-Security developments in Afghanistan, July 29 — Alertnet ISAF Condemns Insurgent Attacks in Afghanistan — US Department of Defense ISAF Joint Command morning operational update — Dvids Civilians killed in Afghan roadside bombings — Al Jazeera Afghanistan bombs kill 23 civilians on bus and tractor — The Guardian IED kills 18 Afghan bus passengers — UPI 19 killed in Afghanistan after civilian bus hits mine — MSNBC Roadside bombs kill 17 in south Afghanistan: officials — Yahoo News/Reuters Roadside Bomb Kills At Least 18 In Afghanistan — Radio Free Europe Afghanistan: Eighteen civilians killed in Helmand blast — BBC Suicide Bombers Attack Afghan Provincial Capital — New York Times Suicide bombers, gunmen attack Afghan provincial capital — L.A. Times 7 Afghan suicide attackers kill at least 21 people — SF Gate/McClatchy News At Least 19 Killed In Afghanistan After Suicide Attacks — Atlantic Wire Taliban kill 21 during attempt to assassinate Afghan official — Boston.com/New York Times Taliban attack Hamid Karzai ally in southern Afghanistan — The Guardian Diggers help repel deadly suicide attack in Afghanistan — Herald Sun Coalition holds line on Taliban attacks, data show — USA Today Afghan police suffer worst casualties of war — AP Taliban declares open season on politicians — CBS As NATO troops withdraw, the Taliban target a fragile government — Globe and Mail Afghanistan’s Politics in Turmoil After String of Assassinations — Foreign Policy Association Taliban offer talks if US sets pullout date — Asia Times Report Clears Afghanistan Training Commander — US Department of Defense Mission offers young Army officer a lesson about life on the front lines in Afghanistan — Stars and Stripes Parents balk at ‘suicide’ schools — Asia Times Petraeus on Afghanistan progress (Video) — BBC Britain spent £18 billion on war in Afghanistan, figures show — Daily Telegraph MoD has no idea how much Afghan war will cost Britain, it admits as it cuts 7,000 more jobs — Daily Mail Costs of British military operations in Afghanistan estimated at £18bn — The Guardian Afghanistan campaign ‘set to cost £4bn’ — Independent Photos: The mail, a morale booster, finally arrives at remote Afghanistan outpost — Global Post Kandahar Mayor’s Killing Another Blow to U.S. Afghanistan Effort — Time Kandahar’s fallen hero — National Post editorial “The Wars of Afghanistan: Messianic Terrorism, Tribal Conflicts, and the Failures of Great Powers” — Washington Post A Map of the Most Dangerous Places for Journalists in Afghanistan — Atlantic Wire

Exclusive: Eritrea behind AU summit attack plot: U.N. report — Real Clear World/Reuters NAIROBI (Reuters) – Eritrea was behind a plot to attack an African Union summit in Ethiopia in January and is bankrolling al Qaeda-linked Somali rebels through its embassy in Kenya, according to a UN report. A U.N. Monitoring Group report on Somalia and Eritrea said the Red Sea state’s intelligence personnel were active in Uganda, South Sudan, Kenya and Somalia, and that the country’s actions posed a threat to security and peace in the region. Read more …. More News On Eritrea UN report accuses Eritrea of plotting to bomb AU summit — BBC Eritrea accused of planning terrorist attacks on its neighbours — The Telegraph Eritrea behind AU summit attack plot – U.N. report — Reuters Eritrea plotted to attack leaders at summit — Washington Times Eritrea planned massive bomb attack on African Union summit, UN says — The Guardian Eritrea accused of planning major bomb attack on African Union summit — Global Post Ethiopia and UN accuse Eritrea of backing Al Shabaab — Africa Report Factbox: U.N. Monitoring report on Somalia, Eritrea — Reuters

Nato Takes Over Kosovo Border Posts After Clashes — BBC Nato has deployed peacekeepers in the north of Kosovo after a border post with Serbia was burnt down and a Kosovo policeman killed. Serbian nationalists in Kosovo attacked the post on Wednesday after Kosovo’s government sent police to enforce a ban on imports from Serbia. Border posts in the area, which rejects Kosovan independence from Serbia, had been staffed by ethnic Serb police. Kosovo’s government suspected them of turning a blind eye to banned imports. Read more …. More News On Tensions In Kosovo On The Borders With Serbia NATO Takes Control at Kosovo Borders — New York Times Serb Police, NATO Boost Forces After Kosovo Violence — New York Times/Reuters NATO peacekeepers can fire if attacked in Kosovo — Stars and Stripes/AP NATO Takes Control of Troubled Kosovo Border Posts — Voice of America Kosovo Firebombing Underscores New Ethnic Tensions — New York Times EU urges Serbia, Kosovo to defuse tensions — CTV Kosovo: UN mission voices deep concern at recent clashes in north — UN News Centre UN Council rejects Serbia calls for Kosovo meet — AFP New Violence in Kosovo Could Pose a Quandary for an Overstretched NATO — Tony Karon, Time Historical EU Error To Blame for Kosovo Strife — Olaf Ihlau, Spiegel Online

The latest wave of repression came as tens of thousands took to the streets. Radio Free Europe Syria Erupts In Fresh Friday Violence — Al Jazeera Security forces reportedly fire on crowds in Deraa and key oil pipeline bombed as Syria sees more clashes. Security forces have fired at demonstrators in the southern city of Deraa as tens of thousands again took to the streets across Syria after Friday prayers to demand the downfall of President Bashar al-Assad, witnesses and activists said. “They are firing at demonstrators in alleyways and people are running for cover. Protesters have been trying to avoid heavy security in main streets,” a resident of Deraa told the Reuters news agency. Read more …. More News On The Unrest In Syria Tens of thousands rally in Syria; troops open fire — USA Today/AP Syrian Forces Crack Down on Thousands of Protesters — Voice of America At least one killed as Syria security forces open fire on demonstrators — Haaretz Syrian forces kill two at demos after blast — AFP Syrian forces fire at Deraa protesters-witnesses — Reuters Security Forces Fire on Crowds in Syria (Video) — UN Dispatch Reports: Clashes, pipeline explosion hit Syria — CNN ‘Saboteurs’ target oil pipeline in central Syria — Haaretz Explosion hits Syrian oil pipeline — UPI Assad faces armed challenge in oil-producing east — Reuters Syria: ’3,000 missing’ since start of uprising — Daily Telegraph Syrians Planning for Stepped Up Protests During Ramadan — New York Times New al Qaeda leader slams Syrian president, praises protesters — CNN Syrian revolt still spontaneous and leaderless — Washington Post Syrian opposition: Your silence is killing us — Daily Star