Washington  - Struggling US carmaker Chrysler LLC and Italian maker Fiat Motor SA said Monday they had reached a deal in principle on a new partnership, less than two hours after the US government said the merger was the only way for Chrysler to keep its emergency loans.

Chrysler chief executive Bob Nardelli, announcing the agreement, said the alliance would help the US carmaker preserve jobs and build more fuel-efficient cars.

"Chrysler has consistently said that the alliance with Fiat enhances its business model (and) expands its global competitiveness," Nardelli said in his statement.

Washington - The United States on Monday welcomed an Afghan Supreme Court ruling extending President Hamid Karzai's term until an election in August.

The court ruled Sunday that Karzai should stay in power after his term ends May 22, until the elections are held.

"The United States strongly supports and welcomes this ruling," said State Department spokesman Gordon Duguid. "We believe that the continuity of government in this critical period before elections is vital and contributes to creating stability."

New York  - UN Secretary General Ban Ki-moon sounded an optimistic note for Haiti, saying its future looks better than any emerging markets thanks to US trade legislation approved by Washington last year.

"Haiti stands a better chance than almost any emerging economy, not only to weather the current economic storms, but to prosper," Ban said in an opinion piece to be published in the New York Times on Tuesday.

Washington - Struggling US carmaker Chrysler

San Francisco  - In a move that could ring in big changes in the way customers use their mobile phones, internet telephone company Skype will introduce its free software for the iPhone on Tuesday, with versions for other smartphones following in May, the New York Times reported Monday.

Skype already boasts that 400 million customers around the world are using its peer-to-peer telephone system that allows free calls to other Skype members and cheaper rates than other phone companies for calls to landlines and mobile phones.

Washington  - The struggling US car industry will be given one last chance to restructure operations or lose the government's support, President Barack Obama announced Monday, declaring that General Motors Corp and Chrysler LLC had so far failed to prove that they can survive.

In a dramatic government intervention in the industry, Obama called for a series of changes in the two companies' outdated business models and forced out long-time GM chief executive Rick Wagoner, who will be replaced by the company's president Fritz Henderson.