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The Homeland Security Department and city officials around the United States increase the terror alert level to Orange on mass-transit lines in light of transit bombings in London. Officials are encouraging commuters to travel as usual, while keeping an eye out for suspicious activity.

Oil prices fell on world markets Sunday as traders expressed relief that Hurricane Rita spared most of the refineries along the Texas Gulf Coast.

China bows to international pressure and announces it will revalue its currency. The yuan will be revalued by 2.1 percent, less than what the United States wanted and perhaps not enough to satisfy congressional critics who want protectionist measures to stem the flow of Chinese imports. The Yuan will now be pegged to a basket of international currencies.

Amid growing criticism of U.S. strategy in Iraq, President Bush prepares to deliver a policy address Wednesday on the state of the war. On Monday, the president spoke about plans to change immigration laws. Both issues are dividing the country ahead of midterm elections in 2006.

Maryland lawmakers Thursday overrode Gov. Robert Erlich's veto and approved a measure, directed at Wal-Mart, requiring a certain level of expenditure on employee health care. Unions are vowing to push for similar laws in at least 30 other states.

Turkey's government has ordered the slaughter of hundreds of thousands of domestic birds in an effort to control an outbreak of avian flu. U.N. agencies say Turkey is taking adequate measures, but warns neighboring countries to be on alert.

For the first time since the U.S. led the recent invasion of Iraq, the House and Senate are both debating the war. In the House, Democrats are attacking the policies of President Bush, while Republicans are defending them as part of the war on terror.

Attorney General Alberto Gonzales is grilled about federal domestic surveillance during an appearance at the House Judiciary Committee. Gonzales refused to elaborate on the program, other than to say he believes it is legal. Both Republicans and Democrats accused him of stonewalling.

Saddam Hussein's trial resumes in Baghdad with a new chief judge, and descends into chaos almost immediately as Saddam and three other defendants shout at the judge and walk out of the court.

Leaders of the Senate Homeland Security and Governmental Affairs Commitee are proposing that the Federal Emergency Management Agency be eliminated. After investigating the response to Hurricane Katrina, the committee releases a draft report recommending the creation of a new National Preparedness and Response Authority to replace FEMA.