The Wall Street Journal-20080116-World-Wide

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Romney's win in Michigan leaves the Republican contest in flux.

The party still has no apparent front-runner in the presidential race and no clear path to the nomination for any contender. McCain took second, followed by Huckabee. Romney's victory came in the first state where economic distress was a dominant concern. South Carolina's primary Saturday will be a test for the field, gauging Southern views of candidates.

At a Democratic debate in Las Vegas, Clinton and Obama blamed aides and campaign surrogates for fueling a controversy over race.

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The Supreme Court limited investors' ability to sue in securities- fraud cases. The 5-3 ruling upholds protections for third parties such as advisers accused of abetting fraud in cases like Enron. The spotlight now shifts to the SEC, which the court found has exclusive authority to pursue such actions, and raises the stakes in November's presidential election.

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Europe has become a far more lucrative place to do business for Latin American drug cartels, fueling a cocaine boom throughout the Continent and driving an illegal euro-laundering industry.

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A panel recommended more than doubling the federal gas tax to boost transit aid. The NTSB said a design error caused a Minnesota bridge collapse that killed 13.

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A bomb hit a U.S. Embassy vehicle in Beirut, killing at least three Lebanese. It was the first time U.S. diplomatic interests were a direct target of violence since the 1980s.

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The Taliban vowed to attack Kabul restaurants favored by Westerners, a new mode of violence now aimed at civilian targets.

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The Saudi oil minister said the kingdom would tap reserve-production capacity if needed, after Bush complained about crude prices.

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Israeli troops killed 19 in Gaza fighting and a Hamas sniper shot dead a kibbutz volunteer, stoking tensions amid peace negotiations.

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Kenya's Parliament elected an opposition figure as speaker, setting the stage for fresh wrangling over the disputed presidential vote.

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Republican Rep. Richard Baker will resign his Louisiana seat to lead a hedge-fund trade group as Congress heightens industry scrutiny.

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A majority of French births for the first time were to unwed mothers in '06, a sign of further distancing from traditional social mores.

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The FDA's ruling that products from cloned animals are safe to eat sets the stage for a battle with lawmakers and consumer groups.

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The U.S. reported the largest number of births in 45 years, nearly 4.3 million in 2006, a trend counter to other wealthy nations.

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Brazil signed accords with Cuba offering economic aid and sealed a deal to drill for oil off the island's coast in moves to strengthen ties.

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Died: Judah Folkman, 74, cancer-research pioneer, Monday.

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