Morning Brief: Suspense and suspension

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In a surprise move, John McCain “suspended” his campaign yesterday in order to return to Wall Street to work on a resolution to the financial crisis. He suggested that Friday’s debate be postponed, a suggestion that was promptly rejected by Barack Obama’s campaign. Reaction to the move is split along party lines, and Senate majority leader Harry Reid suggested that McCain really wouldn’t be all that much help. The status of the debate remains unclear.

Congress appears close to reaching a deal on the $700 billion bailout plan. Appearing on television last night, President Bush said the U.S. is in the midst of a “serious financial crisis” and urged Americans to support the bail-out plan. He also invited both presidential candidates to meet with him at the White House today. The Times’ Vikas Bajaj explains why it’s so hard to put an accurate price on the “toxic” assets.

Washington Mutual is looking for a buyer to help absorb its mortgage losses. General Electric cut its third quarter outlook, causing a sharp drop in its share price. Sovereign wealth funds are showing little interest in injecting capital into U.S. markets.

Government intervention in succeeding in settling the jittery market…in China.

Asia

North Korea expelled U.N. monitors and announced plans to restart its nuclear program.

India and Pakistan pledged to renew stalled negotiations. A Pakistani militant group claimed responsibility for last weekend’s hotel bombing in Islamabad and vowed more violence today.

Indian PM Manmohan Singh is making one last push to finalize a civilian nuclear deal with the U.S.

The WHO condemned China for its milk scandal.

Middle East and Africa

After months of dispute, Iraq finally passed a law paving the way for provincial elections. The status of the disputed city of Kirkuk remains unresolved, though.

Iraq’s largest humanitarian organization is facing embezzlement charges.

Israeli President Shimon Peres fired back at Iran at the UN, describing it as “at the centre of violence and fanaticism in the world.” Mamoud Ahmadinejad met with a fringe group of anti-Zionist Jews.

A Rwandan former prosecutor was sentenced to life in prison for his role in the 1994 genocide. A prominent French writer is also on trial in Paris for “inciting racial hatred” in a book about the conflict.

Nigerian police have arrested over 200 suspected Niger Delta militants.

Americas

A Guantanamo Bay military prosecutor stepped down over his office’s suppression of evidence.

Hugo Chavez signed an energy cooperation deal with China.

Mexico’s drug violence continues to spiral out of control.

Even hardline Cuban exiles are now pushing for the U.S. to lift the embargo to provide hurricaine relief.

Europe

Condoleezza Rice had an awkward meeting with Russian Foreign Minister Sergei Lavrov in New York. Russia snubbed the U.S. by declining to participate in a G8 meeting on Iraq today.

Airline unions dropped their objections to the takeover of Alitalia airlines.

This week’s massacre in Finland may have been linked to an earlier shooting.

The Camorra mafia has “declared war” on the Italian state.

Today’s Agenda

South Africa’s parliament is expected to appoint African National Congress MP Kgalema Motlanthe as interim president.

President Bush meets with Barack Obama and John McCain at the White House.

China launches a manned space flight which will include the country’s first ever spacewalk.

Zimbabwe’s Robert Mugabe will address the UN.