RAY SUAREZ: Heavy fighting broke out in Iraq today between Iraqi forces and Shiite militia. The clashes happened in Baghdad and the southern oil port of Basra. At least 25 people died there.
Until last December, Basra was patrolled by British forces, who then moved to the outskirts of the city. We have a report narrated by Neil Connery of Independent Television News.
NEIL CONNERY, ITV News Correspondent: On the streets of Basra, a major offensive by Iraqi forces targeting Shiite militias. Iraq's second city looking more like a war zone, with running battles between government troops and the Mahdi Army militia.
Some of the militia were determined to fight back however they could. This is a concerted effort by the government to try and regain control of the city which the militia effectively rule. British troops haven't been involved in the operation, but coalition forces are helping to provide air surveillance to the Iraqis.
MAJ. TOM HOLLOWAY, British Forces Spokesman: Prime Minister Maliki yesterday came down from Baghdad with a number of his key advisers and is currently in an Iraqi army base inside Basra City, from where he is personally overseeing its operations. It's an indication of how seriously he and his government take this.
NEIL CONNERY: This is the Shiite cleric Muqtada al-Sadr, whose Mahdi Army is being targeted. His spokesman urged Iraqis to protest and threaten civil revolt. But who will win in this battle of wills in the country's second city at least is still not clear.
RAY SUAREZ: At the White House today, press secretary Dana Perino called the Iraqi forces' decision to fight insurgents a "brave" one.
The U.S. Supreme Court issued a ruling today dealing with the death penalty, international law, and presidential powers. Justices ruled 6-3 President Bush overstepped his authority when he ordered a Texas court to re-open a Mexican's death row case. He'd been prevented from consulting Mexican diplomats, a violation of international treaties.
The court also heard two terror-related cases, one argued by Attorney General Michael Mukasey. We'll have more on the Supreme Court right after this news summary.
In economic news, steep drops in consumer confidence and home prices renewed fears of recession today. The Conference Board said confidence unexpectedly hit a five-year low in March. The business-backed research group blamed the credit crunch, weak job market, and rising prices.
And a report from Standard & Poor's found home prices slid nearly 11 percent in January. That's the largest decline ever on record.
On Wall Street today, the Dow Jones Industrial Average lost 16 points to close at 12,532. The Nasdaq rose 14 points to close at 2,341.
The economy and housing crisis dominated the presidential campaign today. In California, Republican John McCain warned against a hasty, government-led mortgage bailout. He recommended maintaining or even raising the required down payment for purchasing a home.
McCain's comments came a day after Democrat Hillary Clinton called for aggressive federal intervention to help homeowners in trouble. We'll have much more on the housing crisis later in the program tonight.
Trustees for Social Security and Medicare warned today both benefit programs are in trouble. An annual report showed the Social Security fund will be depleted by 2041, requiring scaled back benefits, and Medicare will exhaust its hospital insurance fund by 2019. Neither date changed from last year's report.
In Washington, Treasury Secretary Henry Paulson renewed his call for action from Congress before it's too late.
HENRY PAULSON, U.S. Treasury Secretary: The facts are clear. The sooner Social Security and Medicare are reformed, the fairer reforms will be to future generations.
The serious concern raised by the Trustees Report demand the attention of America's policymakers and the public. Americans who will depend on Social Security and Medicare expect us to address the long-term funding issues.
RAY SUAREZ: Trustees warned financial pressures will start well before 2019. Medicare is expected to pay out more in benefits than it collects this year.
Pentagon officials admitted today the U.S. mistakenly sent ballistic missile parts to Taiwan. Four electrical fuses were sent from an Air Force base in Wyoming in 2006. They did not contain any nuclear material. Taiwanese officials alerted the Air Force, but the parts were not recovered until a year later.
At the Pentagon today, Deputy Defense Secretary Ryan Henry called the error "disconcerting."
RYAN HENRY, Deputy Undersecretary of Defense: In an organization as large as DOD, the largest and most complex in world, there will be mistakes. But they cannot be tolerated in the arena of strategic systems, whether they are nuclear or only associated equipment as was in this case.
RAY SUAREZ: Taiwan had originally ordered helicopter batteries. Defense Secretary Gates ordered an investigation, with an initial assessment due by April 15th.
A federal appeals court today rejected a New York state airline passenger rights law. It required airlines to provide water, food, clean toilets, and fresh air to passengers delayed in a plane on the ground. But the court decided the state law interferes with federal laws that already regulate air travel.
The governor of Virginia today defended a settlement offer for the families of the 32 Virginia Tech shooting victims. Each family would receive $100,000 and the chance to question officials about the massacre. They would then give up their right to sue the state and the university. Governor Tim Kaine called the deal "creative, fair, and justifiable." Families have until the end of March to accept or decline the offer.
