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House rejects stopgap security agency funding, partial shutdown looms

WASHINGTON - The House of Representatives on Friday failed to approve a stopgap funding bill for the U.S. domestic security agency in an embarrassing setback for Republican House Speaker John Boehner, increasing the threat of a partial agency shutdown at midnight.

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U.S. economy slowed in fourth quarter, but growth outlook still favorable

WASHINGTON - U.S. economic growth braked more sharply than initially thought in the fourth quarter amid a moderate increase in business inventories and a wider trade deficit, but strong domestic demand brightened the outlook.

4:25pm EST

Senate fails to advance bill blocking Obama immigration order

WASHINGTON - A stand-alone U.S. Senate bill to block spending on President Barack Obama's November 2014 immigration order failed to clear a procedural vote on Friday after the provisions were stripped from a Department of Homeland Security funding bill.

1:01pm EST

Deaths shake Ukraine truce; Poroshenko wary of Russian threat

KIEV - Ukraine on Friday reported the first deaths in three days in east Ukraine and President Petro Poroshenko said Russia would pose a "military threat" even if a ceasefire holds. | Video

World, Russia 4:47pm EST

Islamic State under pressure as Kurds seize Syrian town

BEIRUT - Kurdish forces dealt a blow to Islamic State by capturing an important town on Friday in the latest stage of a powerful offensive in northeast Syria, a Kurdish militia spokesman said.

World, Syria, United Nations 11:05am EST

North Korea steps up threats over drills; U.S. Congress advances sanctions bill

SEOUL/WASHINGTON - North Korea ramped up threatening language against the United States on Friday, days before the start of annual joint U.S.-South Korean military exercises, while a bill to stiffen sanctions against Pyongyang advanced in the U.S. Congress.

British TV shows student picture of 'Jihadi John' in baseball cap

LONDON - British television broadcast the first picture of Mohammed Emwazi as a student on Friday, showing the man identified as the Islamic State "Jihadi John" killer with a mustache and goatee beard wearing a large baseball cap. | Video