AP, TOKYO  -- Sales are improving in Japan for Sony Corp.'s PlayStation Portable handheld video game machine, and a beefed up version with a clearer display is expected to add momentum, a senior executive said Tuesday.

The portable game machine faces tough competition from Nintendo DS -- the handheld machine from the Japanese manufacturer of Pokemon and Super Mario games.

REUTERS, BANGKOK- Thailand's political turmoil is threatening its lucrative tourist industry as travelers cancel trips and foreign governments issue travel warnings, while business leaders fear foreign investors will be scared off.

REUTERS, WASHINGTON- Expensive advertising of prescription drugs directly to consumers may do little to encourage sales, US and Canadian researchers reported on Monday.

REUTERS, TALEGAON, India- General Motors Corp's most important priority is to turn around its North American business and it will continue investments in emerging markets, its chief operating officer said on Tuesday.

REUTERS, NEW YORK- The manufacturing sector likely stalled for a second straight month in August as the persistent housing slump and tight credit conditions crimped the overall business climate.

However, strong overseas demand thanks largely to a weak dollar has been a bright spot for exporters, analysts said.

Hurricane Gustav

Agencies

The partially rebuilt levees in New Orleans have held against hurricane Gustav, but authorities today warned of more storms to come after the weather system weakened and veered to the west of the city.

Dramatic television footage showed waves being forced by 110mph winds over the tops of the flood defences on the west side of the city, just like Katrina in 2005.

ST. PAUL — A series of disclosures about Gov. Sarah Palin, Senator John McCain's choice as running mate, called into question on Monday how thoroughly Mr. McCain had examined

Dalits, the untouchables at the bottom of Hindu caste system, are the last to be rescued and are getting the smallest rations in the aftermath of the floods in north India, say aid agencies working in the inundated villages, reports The Guardian.

The lowest castes, who generally eke out a living on the fringes of Indian society, are said to be suffering "relief discrimination". Hundreds of thousands of people are huddling in relief camps after the Kosi river changed course in Bihar and swamped hundreds of square miles.

The Guardian Online

Thailand's army chief said today he would refrain from using force to break up anti-government protests, despite the state of emergency declared hours after one demonstrator was killed and dozens injured in violent clashes.

General Anupong Paojinda said he had decided on a softly-softly approach, fearing that hardline measures would create greater problems.

Police in Japan have been left red-faced by an apparent murder that turned out to be an unusual case of mistaken identity, reports The Guardian.

AP, HONG KONG -- Stocks fell around the world Monday, led by Asian exchanges as concerns about a slowing global economy weighed heavily on the markets. Oil prices declined sharply as Hurricane Gustav weakened, but investors were still waiting to see how much damage the storm might do to Gulf Coast oil operations.

Essential Commodities

Staff Correspondent

The wholesale and retail traders in the city were caught ducking blames on Tuesday for the soaring prices of essential commodities.

Bdnews24.com

Brigadier general Zakir Hasan said Tuesday late evening that detainees are not normally released on bail if their papers are not processed by 6pm.

Desk Report

The Truth and Accountability Commission continued hearing cases for a second day on Tuesday with the statements of two couples in two cases at its Hare Road office.

Embezzlement charges

Staff Correspondent

Khandaker Mahbub Hossain, son of former BNP health minister Khandaker Mosharraf Hossain, was arrested and sent to jail on Tuesday on charges of embezzling Tk 48 lakh public funds with his minister father.

Agency

Lt General Masud Uddin Chowdhury, who held key army posts, has been appointed new high commissioner to Australia, the foreign ministry announced on Tuesday.

HC asks govt, EC to explain

Desk Report

The High Court has ordered the government and the Election Commission to explain why barring teachers, of MPO educational establishments, from contesting elections should not be declared illegal and unconstitutional.

The government has made changes to eleven administrative posts, the establishment ministry said in a statement on Tuesday, reports bdnews24.com.

Agency

Playwright, poet and former Chittagong University teacher Zia Haider died of cancer at City Hospital on Tuesday morning, aged 72, his younger brother said.

Workers issues

Staff Correspondent

Foreign adviser Iftekhar Ahmed Chowdhury leaves for Kuwait Wednesday on a two-day official visit to meet Kuwaiti officials over Bangladeshi workers' problems.