San Francisco - California's powerful prison guards union has launched a recall campaign aiming to oust Governor Arnold Schwarzenegger in a snap election.

The 30,000-member California Correctional Peace Officers Association (CCPOA) on Monday charged that the former action movie star's "catastrophic leadership failings" had left the largest US state "in far worse shape" than before he was elected after a similar recall effort booted out his predecessor Democrat Gray Davis in 2003.

Washington - In potentially the largest financial bailout in US history, the rescue of mortgage giants Fannie Mae and Freddie Mac was necessary to shore up an economy going through one of its worst crises since the Great Depression, US officials argued.

The decision to place Fannie and Freddie in conservatorship represents the government's most significant intervention to date in the struggling mortgage industry. A series of dramatic steps by the Federal Reserve to provide fresh capital have not been enough to keep the two lenders afloat.

Washington - The United States plans to bring another 8,000 troops home from Iraq by February while expand its military presence in Afghanistan, President George W Bush was to announce Tuesday.

The Iraq force reductions were recommended by General David Petraeus, commander of US forces in Iraq, due to a sharp drop in violence in Iraq over the last several months, Bush will say, according to prepared remarks released late Monday.

Los Angeles - Cable news channel MSNBC has ousted news hosts Chris Matthews and Keith Olberman from anchoring its election coverage after a series of on-air feuds plus complaints from Republicans that the duo were too left-leaning in their coverage.

The channel said Monday that it had promoted chief White House correspondent David Gregory to anchor its election coverage, though Matthews and Olberman will remain as analysts.

Washington  - US stocks soared early Monday as investors welcomed the US government's takeover of beleaguered mortgage giants Fannie Mae and Freddie Mac.

The Dow Jones Industrial Average and broader Standard & Poor's 500 index both climbed more than 2 per cent in morning trading in New York, before retreating slightly from their early highs. Asian and European stocks also made extensive gains Monday.

On Sunday night, Serena Williams jumped with joy after ousting Jelena Jankovic with a straight-set win over 6-4, 7-5, in a thrilling match full of spectacular strokes and momentum swings. This was William’s third U.S. Open championship and ninth Grand Slam title.

In the final four games, Williams was simply inexorable managing a straight-set win over Jankovic.