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Kenya's political rivals have signed a power-sharing agreement aimed at ending weeks of bloodshed sparked by a disputed presidential election in December. More than 1,000 people died in the unrest; more than a quarter-million were displaced. The deal creates a prime minster post for opposition leader Raila Odinga.

A new Osama bin Laden videotape surfaced Friday, and Michael Hayden gave a rare speech in New York, saying al-Qaida leaders continue to plot a "high-impact" attack on the United States. The CIA director also defended the government's program of detaining and interrogating prisoners.

Army Surgeon General Eric Schoomaker says he was mistaken when he denied that the Army had told the Veterans Affairs Department not to help injured soldiers challenge their disability ratings. Schoomaker says the whole thing was a misunderstanding, and it is fine for the VA to help the soldiers.

Kosovo's parliament declared the territory a nation on Sunday, mounting a historic bid to become an "independent and democratic state" backed by the U.S. and European allies but bitterly contested by Serbia and Russia.

As Barack Obama and Hillary Clinton squabble over race, John Edwards enters the fray, trying to peel off enough votes to give him a chance in the crucial South Carolina Democratic primary on Jan. 26. More than half of the Democratic voters are expected to be African Americans.

President Bush and Federal Reserve Chief Ben Bernanke have both endorsed the idea of a stimulus package for the economy. Bernanke said at a House Budget Committee hearing that if Congress is going to act, it should do so quickly and make sure its actions are temporary. The president said he'll lay out his plan Friday.

The Federal Reserve has cut a key interest rate by a quarter of a percentage point, seeking to stem the flow of bad news surrounding the U.S. economy. The action pushes the federal funds rate down to 2 percent — the lowest level since late 2004.

French President Nicolas Sarkozy confirms he and wife Cecilia will separate, leaving him devoid of an important adviser. Also, public transportation has come to a halt as part of a 24-hour strike by the public sector unions. The strike is in response to Sarkozy's proposed pension reform.

Turkey's parliament has passed a motion authorizing military attacks against Kurdish rebels in northern Iraq. The United States government and Iraqi leaders have warned Turkey not to enter Iraq.

The Senate approves tighter ethics rules. The ethics reform bill makes it illegal for legislators to accept gifts, meals, and even travel from lobbyists. And it requires them to make public 48 hours in advance any plans for spending on pet projects. It goes now to President Bush.