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Russian President Dmitry Medvedev said he had ordered Russian forces to stand down in Georgia, saying, "'The security of our peacekeepers and civilians has been restored." Foreign Minister Sergey Lavrov, meanwhile, said that Georgian President Mikheil Saakasvili "better go."
Investors are reacting positively as the ruble soars.
The Russian move comes after a French diplomatic trip to Moscow and a tough statement from U.S. President George W. Bush, though it's not clear whether those events had any impact.
The U.S. military admits to being surprised by the Russian counterattack.
Decision '08
The New York Times looks at John McCain's hard line on Russia.
Americas
A U.S. Coast Guard ship is heading north to map a piece of the Arctic shelf.
Mexico has a new anti-kidnapping squad.
U.S. gas prices reached a three-month low.
California gangs are getting into the identity-theft business.
Asia
Two provincial legislatures have expressed no confidence in Pakistani President Pervez Musharraf. Meanwhile, the military is battling militants outside Peshawar.
Attendance has been lackluster at the Olympics.
Another attack in western China.
Middle East and Africa
Outgoing Israeli PM Ehud Olmert is reportedly offering Palestinian President Mahmoud Abbas 93 percent of the West Bank, but only if he retakes Gaza from Hamas.
Nearly $100 billion has gone to contractors in Iraq.
Visiting Baghdad, Jordan's King Hussein called on Arab countries to support Iraq.
Europe
Europe's economic troubles threaten its unity.
Ah, the irony: French anti-immigrant politician Jean-Marie Le Pen is selling his headquarters to a Chinese university.
Today's Agenda
Power-sharing talks continue in Zimbabwe. So far, the FT is not impressed.
Australian PM Kevin Rudd is visiting Singapore.
Today is International Youth Day.
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