Tuesday Newswrap

Top story today, NATO has said that it will cool relations with Moscow in response to its actions in Georgia. NATO Secretary-General Jaap de Hoop Scheffer said, "The future of our relations with Russia will depend on the concrete actions Russia will take to abide by the words of President Dmitry Medvedev [regarding the peace plan], which is not happening at the moment," he continued "and finally... we also all agree, as you can see in the statement, that there can be no business as usual in our relations to and with the Russian Federation". Russian President Dmitry Medvedev has promised that the Russian withdrawal will be complete by Friday.

An Associated Press crew today saw Russian soldiers kidnapping Georgian troops and holding them prisoner at gunpoint. They also commandeered US Humvees awaiting transport back to the United States. Both Russia and Georgia have now accepted observers from Organisation for Security and Co-operation in Europe (OSCE) going in to the area to monitor developments. British Foreign Minister David Miliband accused Russia of breaching international law in its operations in Georgia. In another development in Georgia today, Russia and Georgia have successfully completed a prisoner swap.

In California, a court has ruled that doctors are not allowed to opt-out of treating people because they have a religious objection. The case was brought by a lesbian woman who was refused fertility treatment because of her sexuality. In the US Presidential election race, Obama looks ready to announce his Vice-Presidential running mate (requires free registration). Zambian President Levy Mwanawasa has died in a Parisian hospital. He was taken ill some time ago, it is widely expected that the Vice-President will succeed him.

In business, world markets sunk today after reports that Fannie Mae and Freddie Mac may be nationalised, which would leave their shareholders with virtually nothing. The former head of the IMF has warned that the current economic difficulties could destroy a string of US banks. US inflation has soared causing many jittery householders.

In Afghanistan, suicide bombers have attacked a US base killing 10 civilians and injuring 13 others. There were no US causalities. 10 French soldiers were also killed today in another attack in Afghanistan. In the US, tropical storm Fay has hit land in Florida. As power-sharing talks continue in Zimbabwe, inflation in the counrty has reached 11.2million percent. The rate is up from 2.2million in May. In February, the price of a loaf of bread in the country was less than 200,000 Zimbabwe dollars. On Monday, that same loaf of bread cost 1.6 trillion Zimbabwe dollars.

On the Olympics, Britain's medal count has broken a 100-year record. Odd news for today, Malaysia has cancelled an Avril Lavigne concert because she is too 'sexy' for an Islamic culture; Britain's domestic intelligence service, MI5, is seeking gay recruits and a trial collapses after a juror turns private investigator. In-depth, NPR looks at how rising food prices are threatening progress in developing nations.

Current Olympic rankings:

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