The world at 11 a.m. Times in EDT.

NEW & DEVELOPING
— Adds WALL STREET, BRITAIN-LIBYA, LIBYA, URBAN LEAGUE-MIDDLE CLASS
— TERROR HEARINGS — Lawmaker: More than 40 Americans radicalized and joined Somali terror group to fight. Hearing is under way.
— POLYGAMIST LEADER — Hearing begins at noon
TOP STORIES
WALL STREET
NEW YORK — Stocks fall as lawmakers remained at odds over how to avoid a debt default. A weak report on orders for manufactured goods also weighed on stocks. House Speaker John Boehner had planned to hold a vote on his debt-limit plan, but that was postponed after conservative lawmakers scoffed at the proposal and congressional budget officials said it would have cut spending less than advertised. By Business Writer Chip Cutter.
AP photos.
— DEBT SHOWDOWN — Budget analysts say Senate Democratic plan cuts deficits by $2.2. trillion, less than promised. AP photos
— DEBT SHOWDOWN-SHORT TERM — A central question is how long new borrowing authority should last. But the nation often has increased the debt ceiling by shorter periods than either side proposes. A Spin Meter story.
NORWAY-MASSACRE
OSLO, Norway — Prime Minister Jens Stoltenberg vows that the twin terror attacks that have stunned his country will not intimidate Norway and that his countrymen will fight back with “more democracy.” Norwegians will defend themselves by showing they are not afraid of violence and by participating more broadly in politics, he says. By Ian MacDougall And Karl Ritter.
AP photos, video, graphic.
GLOBAL ECONOMY TRACKER
Wealthy countries all over the world are dealing with debt and strained budgets as they mop up after the Great Recession. But the United States is in a bigger fix than almost everyone else. The U.S. federal debt, as a percentage of the overall economy, was 95 percent in the first three months of 2011, the fifth-highest in the world, according to the Associated Press Global Economy Tracker. By Economics Writer Paul Wiseman.
AP photos. AP Interactive GLOBAL ECONOMY TRACKER.
— URBAN LEAGUE-MIDDLE CLASS — Urban League study says black middle class hit hard by downturn; college unemployment rate up. AP photo.
CLOSING WALTER REED
WASHINGTON — Walter Reed Army Medical Center, the Army’s flagship hospital where privates to presidents have gone for care, is closing its doors after more than a century. Hundreds of thousands of the nation’s war wounded from World War I to today have received treatment at Walter Reed, including 18,000 troops who served in Iraq and Afghanistan. By Kimberly Hefling.
AP photos, video.
AFGHANISTAN
KANDAHAR, Afghanistan — A suicide bomber, explosives hidden in his turban, walks into the office and kills the mayor of Kandahar — the second assassination this month of a powerful figure in the southern Taliban stronghold. Mayor Ghulam Haider Hamidi had been mentioned as a person to replace President Hamid Karzai’s powerful half brother who was gunned down July 12 by a close associate in his heavily fortified home. By Mirwais Khan.
AP photos, video.
PHILANDERING POLITICIANS-ANALYSIS
WASHINGTON — There’s been risque tickling. Raunchy twittering. Emailed photos. Stolen sex tapes. And in the latest episode of Washington’s own unseemly take on “Sex and the City,” Rep. David Wu is resigning in response to allegations by an 18-year-old woman that she had an “unwanted sexual encounter” with the congressman. Seems like sex scandals snagging Washington politicians are piling up faster than the federal debt. An AP News Analysis by Nancy Benac.
INTERNATIONAL
BRITAIN-LIBYA
LONDON — Britain officially recognizes Libya’s main opposition group as the country’s legitimate government, and expells all diplomats from Moammar Gadhafi’s regime. By Raphael G. Satter.
AP photos.
— LIBYA — Libyan state TV shows Lockerbie bomber, in wheelchair, attending pro-Gadhafi rally. AP photos.
SKOREA-LANDSLIDE
SEOUL, South Korea — Walls of mud barreling down a hill bury 10 college students sleeping in a resort cabin and flash floods submerge the streets and subway stations in Seoul, killing at least 32 people. By Sam Kim And Hyung-Jin Kim.
AP photos, video.
HEALTH
HYPNOSIS SURGERY
LONDON — As the surgeons cut into her neck, Marianne Marquis was thinking of the beach. As she heard the doctors’ voices, she was imagining her toes in the sand, the water lapping. Marquis had been hypnotized before surgery to have her thyroid removed. She’s among a growing number of surgical patients at the Cliniques Universitaires St. Luc in Brussels who choose hypnosis and a local anesthetic to avoid the groggy knockout effect of general anesthesia. By Medical Writer Maria Cheng.
AP Photos
NATIONAL
AIRSPACE VIOLATORS
DENVER — Authorities say fewer pilots are violating airspace restrictions this year despite a recent weekend surge near the presidential retreat at Camp David, Md. The North American Aerospace Defense Command scrambled fighter jets twice on July 9 and once on July 10 to intercept private planes that were flying near Camp David and weren’t in radio contact with civil aviation officials. Federal Aviation Administration statistics show 122 airspace violations so far in 2011. At that pace, the total would be about 220 for the full year. That would be the lowest by far since 2008, when the agency began tracking the numbers in detail. By Dan Elliott.
ALSO GETTING ATTENTION
— STREET CROSSING DEATH — Georgia mother weighing offer for new trial after getting probation in son’s jaywalking death.
— NEW ZEALAND GOLDFISH — New Zealand goldfish survive Christchurch quake, 134 days without food before being rescued
— EAST AFRICA-FAMINE-MINNESOTA — In US, Somalis rally to send help for famine back home; former refugees remember own misery. AP photos.
— AMY WINEHOUSE-SALES — Amy Winehouse gets posthumous sales bump as fans purchase her music after her death. AP Photos.