Morning Brief, Monday, August 13

Washington

WIN MCNAMEE/Getty Images News

Karl Rove plans to resign at the end of August. More from the Wall Street Journal on U.S. President George W. Bush's closest advisor and the White House's top strategerist.

Middle East

Fatah denies it is holding unofficial talks with Hamas. 

Tensions are high in Iraq's mostly Shiite south. Also, Iraqi PM Nuri al-Maliki plans to hold a reconciliation meeting this week.

Iranian President Mahmoud Ahmadinejad replaced his technocratic oil minister. 

Asia

Food prices have driven China's monthly inflation rate to 5.6 percent, the highest in 10 years.

After initially snubbing a four-day meeting of tribal leaders, Pakistan's Pervez Musharraf delivered a conciliatory message in Kabul, Afghanistan, on Sunday. 

The co-owner of a Chinese factory that caused a massive recall of U.S. toys killed himself.

Europe

Poland plans to hold early elections no later than November. 

Ex-President George H.W. Bush joined an informal discussion of policy with Nicolas Sarkozy at the former's Kennebunkport compound. 

Archaeologists in Hungary discovered well-preserved cypress trees that are some 8 million years old.

Elsewhere

China and Chad, sittin' in a tree, d-r-i-l-l-i-n-g? 

All 26,000 peacekeepers headed to Darfur will be African, says the head of the African Union.

Turnout was high in Sierra Leone's elections, the first since U.N. peacekeepers left the country two years ago.

Ethiopian and Somali forces fighting in the Horn of Africa are violating international law, according to Human Rights Watch. 

Today's Agenda

• All eyes will be on the volatile financial markets today, where central banks around the world are looking to safeguard the liquidity of major banks. So far, European markets appear to be recovering.
• Fidel Castro turns 81 years old. This year's celebrations will be comparatively subdued.
• Analysts will closely monitor Robert Mugabe's speech for Heroes' Day, a memorial day for those killed during Zimbabwe's war for independence, for policy shifts.
• U.S. Assistant Secretary of State Richard Boucher arrives in Islamabad for talks with Pakistani officials.