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URGENT: Video shows beheading of second American journalist

DUBAI (Reuters) - The Islamic State militant group released a video purporting to show the beheading of U.S. hostage Steven Sotloff, the SITE monitoring service reported on Tuesday. A masked figure in the video also issued a threat against a British hostage, a man the group named as David Haines, and warned governments to back off "this evil alliance of America against the Islamic State", the monitoring service said. (Reporting by William Maclean, Editing by Angus MacSwan)

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Michigan Senate approves bill expanding Medicaid under Obamacare

(Reuters) - The Michigan state Senate on Tuesday voted 20-18 to approve a bill to expand Medicaid, the health program for the poor, under President Barack Obama's healthcare reform law.

Michigan Governor Rick Snyder broke with other Republican governors this year to support Medicaid expansion through Obamacare.

The Senate approved a version of a bill passed by the state House in June with some differences on Tuesday and the bill must return to the House for a final vote before it can be advanced to Snyder for his signature.

(Reporting by David Bailey; Editing by Eric Walsh)

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