Top news: Egyptian helicopters have reportedly launched airstrikes on militant targets in the Sinai Peninsula following an attack on Sunday that killed 16 soldiers. It is the first time Egypt has fired missiles in the area since the 1973 war with Israel. Gunmen also fired on seven government checkpoints on Tuesday night.
Security officials blame the attack on local militants who may have been joined by Palestinians who entered Egypt through the smuggling tunnels on the Gaza border. On Tuesday Israel handed Egypt six badly burned bodies it said were militants involved in the attacks. Egypt is reportedly taking steps to seal off the tunnels following the attacks.
Egyptian President Mohamed Morsi abruptly canceled plans to attend a funeral service for the slain soldiers on Tuesday after anti-Muslim Brotherhood protesters had chased his prime minister from an earlier prayer service. The protesters blame Egypt's Islamist ruling party for the attacks.
Legal: The military contactor formerly known as Blackwater has been ordered to pay a $7.5 million fine to settle charges of arms sales violations.
Asia
- At least one third of Manila has been submerged by flooding.
- Three NATO troops and an Afghan civilian were killed by a suicide bombing in Kunar province.
- India named former IMF Chief Economist Raghuram Rajan as a senior advisor to the government.
Middle East
- Syrian rebels have pulled back from parts of Aleppo as government troops launched a ground assault.
- Iran says the group of 48 Iranians captured by rebels in Syria includes some former Revolutionary Guards.
- Jordan confirmed that it is hosting Syria's defected prime minister.
Africa
- Gunmen killed three in an attack on a mosque in northern Nigeria, a day after an attack on a church in the same town.
- The foreign minister of Burkina Faso is in Northern Mali to meet with one of the leaders of Islamist militant group Ansar Dine.
- Speaking to students, Hillary Clinton urged South Africans to live up to the example of Nelson Mandela.
Europe
- The Bank of England has cut its growth forecast to near zero.
- Belarus has withdrawn its remaining embassy staff from Sweden over the teddy bear drop incident.
- A Russian court reduced the sentence of Mikhail Khodorkovsky's business partner Platon Lebedev.
Americas
- Hurricane Ernesto has hit Mexico's Yucatan peninsula.
- Brazil has deployed 9,000 troops to its borders for a two-day anti-crime operation.
- Argentina is seizing control of the company that prints the country's currency.
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