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WASHINGTON (Reuters) - New U.S. claims for unemployment benefits fell slightly more than expected last week, offering a ray of hope for the anemic labor market recovery.



LONDON/WILMINGTON, Delaware (Reuters) - The tide of lawsuits unleashed by BP's oil spill in the Gulf of Mexico breaks into an Idaho courtroom on Thursday, just as the company's rivals are counting the cost of a ban on offshore drilling.



KABUL (Reuters) - The body of a second U.S. sailor who went missing in Afghanistan last week has been recovered, an Afghan police chief said on Thursday.



ISLAMABAD (Reuters) - Heavy monsoon rains in Islamabad on Thursday hampered recovery efforts at the site of a Pakistani plane crash that killed all 152 people on board a day earlier, a senior police officer said.



BEIJING (Reuters) - The United States should alter policy to take account of China's role as a major player on the world stage if it wants to avoid friction and instability, a major state newspaper said on Thursday.



KABUL (Reuters) - Afghan President Hamid Karzai questioned on Thursday the willingness of his Western allies to strike insurgent bases in Pakistan given the strong evidence of Islamabad's support for the Taliban.



PHOENIX (Reuters) - A U.S. judge on Wednesday blocked key parts of Arizona's tough new immigration law hours before it was to take effect, handing a victory to the Obama administration as it tries to take control of the issue.



NEW YORK (Reuters) - Foreclosures rose in 3 of every four large U.S. metro areas in this year's first half, likely ruling out sustained home price gains until 2013, real estate data company RealtyTrac said on Thursday.



BERLIN (Reuters) - Prosecutors in Germany have charged a suspected Nazi camp guard with helping to kill 430,000 Jews in the Holocaust and personally shooting 10 others.



TOKYO/DETROIT (Reuters) - Toyota Motor Corp said on Thursday it would recall nearly 417,000 high-end passenger cars and SUVs in the United States and Canada to fix steering problems.


