Gulf oil rig explodes off La. coast GRAND ISLE, La. (AP) - An offshore oil rig exploded in the Gulf of Mexico on Thursday, west of the site of the April blast that caused the massive oil spill. A commercial helicopter company reported the blast around 9:30 a.m. CDT Thursday, Coast Guard Petty Officer Casey Ranel said. Seven helicopters, two airplanes and four boats were en route to the site, about 80 miles south of Vermilion Bay along the central Louisiana coast.
BUXTON, N.C. (AP) - Hurricane Earl packed winds near 140 mph as it blew toward North Carolina on Thursday, putting the Eastern Seaboard up to Maine on alert for a Labor Day weekend pounding by waves, gales and rain. A hurricane warning for the tip of Massachusetts, including Nantucket and Martha's Vineyard, joined earlier warnings and watches for hurricanes or tropical storms that stretch from North Carolina up to near the Canadian border.
Feds sue Arizona sheriff in civil rights probe PHOENIX (AP) - The U.S. Justice Department sued Sheriff Joe Arpaio on Thursday, saying the Arizona lawman refused for more than a year to turn over records in an investigation into allegations his department discriminates against Hispanics. The lawsuit calls Arpaio and his office's defiance "unprecedented," and said the federal government has been trying since March 2009 to get officials to comply with its probe of alleged discrimination, unconstitutional searches and seizures, and having English-only policies in his jails that discriminates against people with limited English skills.
WASHINGTON (AP) - A weak economy got a little lift Thursday with new data suggesting companies aren't pursuing mass layoffs and stores are a little busier. New applications for unemployment benefits declined for a second straight week after rising in the previous three. Retailers reported surprisingly strong sales in August. And more people signed contracts to buy homes.
Gen. Petraeus calls relationship with Karzai sound KABUL, Afghanistan (AP) - The top US military commander in Afghanistan says the sometimes strained relationship between the US and Afghan President Hamid Karzai is solid. Gen. David Petraeus (peh-TRAY'-uhs) says Karzai shares US concerns about corruption in his country. Petraeus acknowledged "friction" over the case of a close Karzai aide arrested this summer in a corruption probe. The aide was released after Karzai intervened.
WASHINGTON (AP) - Secretary of State Hillary Rodham Clinton formally opened the first direct peace talks between Israel and the Palestinians in nearly two years on Thursday, imploring the parties to ignore the long history of failed negotiations and make needed compromises to forge an agreement. At a ceremony in the State Department's ornate Benjamin Franklin room, Clinton said the Obama administration was committed to forging a settlement in a year's time. But, she stressed that the heavy lifting must be done by Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas.
Bernanke: Shut down banks if they threaten system WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system. "If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved," Bernanke said Thursday while testifying before the Financial Crisis Inquiry Commission.
MUMBAI, India (AP) - India has widened its security crackdown, asking all companies that provide encrypted communications - not just BlackBerry-maker Research In Motion - to install servers in the country to make it easier for the government to obtain users' data. That would likely affect digital giants like Google and Skype. "People who operate communication services in India should (install a) server in India as well as make available access to law enforcement agencies," Home Secretary G.K. Pillai told reporters. "That has been made clear to RIM of BlackBerry but also to other companies."
WEST HOLLYWOOD, Calif. (AP) - Grammy-winning rapper T.I. was arrested along with his wife on suspicion of possessing methamphetamines, five months after the hip-hop star finished a prison stint on weapons charges. The 29-year-old rapper and his wife, Tameka Cottle, were arrested Wednesday night in West Hollywood after deputies smelled marijuana and pulled the couple over, the Los Angeles County Sheriff's Department said. They were released from jail at about 4 a.m. Thursday after posting $10,000 bail each, sheriff's Deputy Luis Castro said.
NEW YORK (AP) - One woman's exit from the U.S. Open was jarring and sudden. Another's came off as sad and not all that surprising. Victoria Azarenka and Melanie Oudin said goodbye to Flushing Meadows in starkly different manners Wednesday - Azarenka, a concussion victim collapsing on the overheated court and Oudin a straight-set loser to a player who cared little about the 18-year-old's dreams of a fairy tale repeat.