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Fans of Apple computers got word that their favorite company is going into the phone business. Apple CEO Steve Jobs introduced its new iPhone, which combines a mobile phone — including a camera — with a music player. At the Macworld Conference and Expo in San Francisco, Jobs also introduced the Apple TV device.

President Bush says he is ready to increase the size of the U.S. military at a White House news conference where he discussed the situation in Iraq. The president said the year has been "a difficult year for our troops and the Iraqi people."

A House vote is expected Friday on a bill to require the Secretary of Health and Human Services to negotiate lower prices for the Medicare prescription drug program. President Bush opposes the measure.

The House votes to expand federal funding for human embryonic stem-cell research. Last year, President Bush cast the only veto of his tenure to keep a similar measure from being enacted. The Congress, then controlled by Republicans, failed to override it.

Violent crime is trending upward in many cities around the country. Nationally, the FBI says robbery was up 9 percent and murder up 1 percent in the first half of 2006. But the trend is uneven: Some cities are up, and others are down. That volatility has criminologists worried.

Reports say President Bush's new Iraq strategy is likely to be carried out by new commanders. Media reports say the president will replace the two top generals in the region.

Some lawmakers on Capitol Hill have raised the possibility of holding up congressional funding for the war in Iraq. But even some Democrats who are opposed to the conflict say it would be impractical to cut off funds.

Jury selection begins in the trial of Vice President Cheney's former chief of staff, Lewis "Scooter" Libby, who is charged with perjury and obstruction of justice in the Valerie Plame CIA leak case. Libby is charged with repeatedly lying under oath.

Gen. David Petraeus, President Bush's choice to take over the combat command in Iraq, tells senators about his plan of defense for Baghdad, featuring new sectors and walls. Petraeus says that the situation there is dire but not hopeless.

President Bush has surprised skeptics by proposing dramatically tougher fuel economy standards for cars and trucks. Starting in 2010, gas mileage would have to improve by 4 percent each year — in most cases, that's a one-mile-per-gallon increase every year.