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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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Amazon close to resolving pricing dispute with Warner Bros: WSJ

(Reuters) - Amazon.com Inc has resumed preorders of movie discs from Time Warner Inc's Warner Bros Studio as the companies are close to resolving a pricing dispute, the Wall Street Journal reported citing people familiar with the matter.

In mid-May, Amazon started refusing pre-orders of upcoming home video movie titles including "The Lego Movie," "300: Rise of an Empire," "Winter's Tale" and "Transcendence."

Amazon had been seeking more favorable pricing terms from Warner, the report said. (http://on.wsj.com/1pw2vVW)

Amazon did not immediately respond to emails seeking comment on the report. Warner Bros declined to comment.

Amazon has a record of being involved in combative negotiations.

The e-commerce retailer is in an ongoing dispute over contract terms with Hachette, a unit of French media company Lagardere SCA. Last month, Amazon removed an option to pre-order Hachette titles, including "The Silkworm" - an upcoming novel written by author of the Harry Potter series J.K. Rowling.

Authors and other publishing insiders have criticized Amazon for unfairly wielding its power as a major retailer to gain an edge in contract talks.

(Reporting by Soham Chatterjee; Editing by Lisa Shumaker)

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