WORLD at 1600GMT

NEW THIS DIGEST:

TURKEY-HEADSCARF. Court warns against Islamic headscarves in schools.

VATICAN-JESUITS. Jesuits elect Spaniard as new chief.

INDIA-BIRD FLU. New bird flu cases confirmed in India.

CHINA-BANK MISCONDUCT. China finds US$118 billion in misconduct at state banks.

TOP STORIES:

IRAQ

BAGHDAD _ Hundreds of thousands of Shiites beat their heads and chests and whip themselves with chains across much of Iraq to honor the martyrdom of one of their most revered saints. Bombs and a rocket attack kill at least nine worshippers in northern Iraq. Developing. By Sameer N. Yacoub. AP Photos.

KENYA-VIOLENCE

NAIROBI, Kenya _ Kenya's opposition party, bloodied by protests in which more than 20 people have died, calls for another day of rallies as well as economic boycotts and strikes over the disputed presidential election. Developing. By Katherine Houreld. AP Photos.

WITH: UGANDA-KENYA REFUGEES

SPAIN-TERROR ARRESTS

MADRID, Spain _ Fourteen suspected Islamic militants arrested in Spain may have been planning a terrorist action in Barcelona, the interior minister says. More arrests are expected and the country is on high security alert. Developing. By Harold Heckle.

PAKISTAN

DERA ISMAIL KHAN, Pakistan _ Pakistani intelligence officials say they arrested a teenage suspect in the killing of former Prime Minister Benazir Bhutto and police say they foiled suicide attacks by militants against the country's Shiite minority. Moved. By Slobodan Lekic. AP Photos.

US-ELECTIONS

WASHINGTON _ Republican presidential hopefuls faced off in Nevada caucuses and a hard-fought South Carolina primary on Saturday, contests likely to winnow the field of rivals in a race overshadowed by the mounting threat of economic recession. Democrats shared the stage in Nevada. Developing.

RUSSIA-MILITARY

MOSCOW _ Russia's military chief of staff says Moscow could use nuclear weapons in preventive strikes in case of a major threat. The comments do not appear to mark a policy shift, but are made at a time of increasingly strained relations between Moscow and the West. Moved. By Steve Gutterman.

TURKEY-HEADSCARF

ISTANBUL, Turkey _ Turkey's top administrative court warns against allowing Islamic-style headscarves in universities, joining a chorus of critics forcing the government to back down from its campaign to lift the ban. Moved.

WITH: TURKEY-SLAIN JOURNALIST

CHINA-BROWN

SHANGHAI _ British Prime Minister Gordon Brown shifts the focus of his official visit to China from business opportunities to the environment, pledging Britain's help to reduce greenhouse gas emissions. Developing. By Jane Wardell.

WITH: CHINA-NORTHERN ROCK

NETHERLANDS-PROSTITUTION

AMSTERDAM, Netherlands _ The City of Amsterdam shows off what it hopes will become the new face of its ancient red light prostitution district: former brothel windows that have been converted to storefronts for artists and fashion designers amid the city's ongoing crackdown on criminality. By Toby Sterling.

WITH: NETHERLANDS-FREE SPEECH

ISRAEL-PALESTINIANS

GAZA CITY, Gaza Strip _ Israeli air strikes kill two Hamas militants in Gaza a day after Israel sealed the territory and bombed an empty Hamas government ministry in an intensifying campaign to halt rocket fire on Israeli border towns. Moved. By Ibrahim Barzak. AP Photos.

INDIA-BIRD FLU

CALCUTTA, India _ Officials confirm new outbreaks of bird flu in western India as health workers slaughtered more poultry in a bid to curb the spread of the disease. Moved. By Manik Banerjee. AP Photos.

VENEZUELA-COLOMBIA-REBELS

CARACAS, Venezuela _ Relatives of hostages held by Colombia's largest rebel group seek help from Venezuelan President Hugo Chavez, who helped secure the release of two captives last week. By Christopher Toothaker. AP Photos.

US-HOLLYWOOD LABOR-TALKS

LOS ANGELES _ Striking Hollywood writers could begin informal talks with studio chiefs as early as next week in an effort to end a two-month walkout that has hobbled the entertainment industry, according to a person familiar with the bargaining strategy of the writers guild. By Lynn Elber.

VATICAN-JESUITS

ROME _ The Jesuits, a Roman Catholic order known for intellectual excellence and missionary work, choose a 71-year-old Spanish priest with top academic credentials and extensive experience in Asia to be their new leader.

INDONESIA-SUHARTO

JAKARTA, Indonesia _ Former Indonesian dictator Suharto's condition has improved and he has a good chance of recovering, his doctor says. Moved. By Zakki Hakim.

BUSINESS & FINANCE:

CHINA-BANK MISCONDUCT

BEIJING _ Auditors found misconduct at Chinese banks involving about 860 billion yuan (US$118 billion; 86 billion) last year and 177 bank managers have been fired, news reports say.

US-ECONOMY-STIMULUS

WASHINGTON _ President George W. Bush says "the kind of spending projects that would have little immediate impact on our economy" should not be part of any stimulus package, setting the stage for a possible clash with Democrats. Moved. By Jennifer Loven. AP Photos.

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