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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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Obama, Pelosi say 'clean' bills needed for debt ceiling, restart

U.S. House Minority Leader Nancy Pelosi exits the White House to speak to reporters after a meeting between House of Representatives Democra
U.S. House Minority Leader Nancy Pelosi exits the White House to speak to reporters after a meeting between House of Representatives Democra

WASHINGTON (Reuters) - President Barack Obama spoke by phone on Sunday with Nancy Pelosi, Democratic leader in the House of Representatives, to discuss the need for "clean" legislation that would increase the debt limit for a year and restart government, free from any other policy demands, the White House said.

"The President and the Leader also discussed their willingness, once the debt limit is raised and the government reopened, to negotiate on a longer-term budget solution that will grow our economy and create jobs," the White House said in a statement.

(Reporting by Roberta Rampton; Editing by Eric Walsh)

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