Deadly U.S. air strikes undermine mission, report says By SAEED SHAH  ISLAMABAD -- U.S. air strikes in Afghanistan are increasing and are causing ''unacceptably high'' civilian deaths, undermining the entire international mission in the country, according to a new report.Civilians are primarily being killed in unplanned air strikes called by U.S. forces on the defensive, says Human Rights Watch, a New York-based group.  FULL STORY

Taliban learning how to win key propaganda battles By PAUL KORING  WASHINGTON -- The Taliban, once dismissed as too stupid to know they would lose if they dared to fight well-trained Canadian and allied troops, have proved themselves resilient, if still ill-equipped, warriors, learning from their early defeats and adapting to stage sophisticated attacks, inflicting serious casualties and winning key propaganda battles.  FULL STORY

Suicide bombers get inside police headquarters Insurgents' ability to come within striking distance of top Afghan security commanders points to Taliban's intelligence strength By GRAEME SMITH  KABUL -- A pair of suicide bombers, trying to kill two of Kandahar's most powerful security commanders, got inside the provincial police headquarters yesterday and almost reached their targets before blowing themselves up.  FULL STORY

Taliban blast brings military toll to 97 Fallen soldier saved comrade's life in similar attack two years ago By GRAEME SMITH  KABUL -- A Canadian soldier who saved a comrade's life after a bomb attack two years ago was himself killed by a similar bomb yesterday, during a patrol atan undisclosed location in the Panjwai district west of Kandahar city.  FULL STORY

Crushed between public and private imperatives By SINCLAIR STEWART  NEW YORK -- Critics of Fannie Mae and Freddie Mac - and there are legions of them, parading up and down each side of the political divide - will find a measure of vindication in the U.S. government's decision this weekend to seize control of the troubled mortgage giants.  FULL STORY

BMO boss lauds Fannie-Freddie takeover CEO Bill Downe calls move good for global markets; analysts say Canadian banks, apart from a boost to TD, won't feel large impact By TARA PERKINS  -- The U.S. government's takeover of Fannie Mae and Freddie Mac is good news for global capital markets, says the chief executive of the Bank of Montreal.Canada's banking community has been watching the disintegration of the government sponsored entities closely, with the world's financial institutions continuing to feel the impact of the mortgage crisis emanating from the United States.  FULL STORY