Venezuelan President Hugo Chavez dared the United States to expel his ambassador or cut off diplomatic ties in retaliation for his rejection of Washington's choice for ambassador to Caracas.

Tensions have been growing over Chavez's refusal to accept American diplomat Larry Palmer and also over U.S. criticisms of a legislative offensive by the president's congressional allies. Lawmakers have granted Chavez expanded powers to enact laws by decree for the next year and a half, a change that opponents condemn as antidemocratic.

Rafa Benitez's spell as Inter Milan coach ended after just six months on Thursday.

The Serie A champions announced that they have reached a "mutually satisfactory agreement" with Benitez to terminate his contract, which ran until the end of next season.

Britain's Royal Mint has released a commemorative coin featuring supposedly lifelike portraits of Prince William and his bride-to-be — but critics say Kate Middleton has a right to be horrified.

Images of the couple on the memento bear little resemblance to either the prince or his 28-year-old betrothed. Middleton appears plump in the face and lips and has bags under her eyes. Some critics claim William looks like Al Gore.

South Korean tanks fired artillery and fighter jets zoomed by to drop bombs Thursday in the military's largest air-and-ground firing drills of the year — a show of force a month after a deadly North Korean artillery attack.

The drills, at training grounds in mountainous Pocheon about 20 miles (30 kilometers) from the Koreas' heavily fortified border, signaled South Korea's determination to demonstrate and hone its military strength at the risk of further escalation with North Korea.

The U.S. Treasury Department has expanded punitive sanctions against Iran over its nuclear and missile programs and support for Hizbullah.

The Department added five Iranian companies to its financial blacklist, including two banks, an insurance company, a freight forwarder and the state-owned shipper, the Islamic Republic of Iran Shipping Lines.

South Koreans stopped their cars, donned gas masks and ducked into underground shelters Wednesday in the country's biggest-ever evacuation drill — a government attempt to prepare traditionally indifferent citizens for possible new attacks by North Korea.

Fears of war on the divided Korean peninsula have intensified since the rivals fired artillery shells at each other last month across their tense western sea border. Four South Koreans on a front-line island were killed; the North's casualties are unknown.

Rome was on Wednesday recovering from a night of violence that left 90 people injured and dozens arrested after Italian Prime Minister Silvio Berlusconi survived a crucial no-confidence vote.

Berlusconi scraped through by just three votes, with 314 lawmakers voting in his favor, 311 against and two abstentions in the 630-seat lower house.

The Iraqi journalist who threw his shoes at former President George W. Bush said Tuesday he is suing Iraq's prime minister for his detention and alleged torture during the nine months he spent in custody.

Muntadhar al-Zeidi spoke during the signing in Beirut of his first book, entitled "The Last Salute to President Bush."

Yahoo Inc.'s holiday trimmings will include 600 to 700 layoffs in the Internet company's latest shake-up triggered by lackluster growth.

Employees could be notified of the job cuts as early as Tuesday, according to a person familiar with Yahoo's plans. The person asked for anonymity because Yahoo hadn't made a formal announcement.

Richard Holbrooke, a brilliant and feisty U.S. diplomat who wrote part of the Pentagon Papers, was the architect of the 1995 Bosnia peace plan and served as President Barack Obama's special envoy to Pakistan and Afghanistan, died Monday, the State Department said. He was 69.

Calling Holbrooke "a true giant of American foreign policy," Obama paid homage to the veteran diplomat as "a truly unique figure who will be remembered for his tireless diplomacy, love of country, and pursuit of peace." Holbrooke deserves credit for much of the progress in Afghanistan and Pakistan, the president said.