The European Union finance ministers canceled their meeting Tuesday, causing concern that the governments needed more time to strike up a plan to deal with the mushrooming debt crisis. The finance ministers from all 27 countries agreed to meet early Wednesday ahead of the evening summit of EU leaders to sign off on a plan for the debt crisis. The EU’s executive arm in Brussels, the European Commission, said Tuesday that the ministers are still on track to craft an agreement. There appears to be a consenus that 110 billion euros are needed to be pumped into the banking system to with Greek's potential default. Early reports Tuesday of disputes in Germany and Italy, as well as discord in the European Central Bank, had many wary about how an agreement could be reached at Wednesday’s summit. Pessimism over the plan was reflected globally as worldwide stocks fell Tuesday.

Misery loves company. In what would be the second largest arrest on Wall Street this year, federal prosecutors are expected to file criminal charges against Rajat K. Gupta for insider trading. The former director of Goldman Sachs and Procter & Gamble and current head of McKinsey & Company, Gupta has been under investigation for leaking corporate secrets to Raj Rajaratnam, the Galleon Group hedge-fund manager who was recently sentenced to 11 years in prison for illegal trading. The case against Gupta would provide a chance to tie up a major loose end in the investigation into Rajaratnam’s hedge fund. In a Newsweek exclusive, Rajaratnam spoke about how he was betrayed.

A 2-week-old baby girl has been rescued from a fallen building in southeast Turkey, 72 hours after the 7.2 earthquake struck the region. The baby, Azra Karaduman, was pulled naked from the rubble, wrapped in a blanket, and handed over to paramedics. Rescuers later pulled her mother from the rubble, but her father is still reported to be trapped. At least 366 people died in the earthquake.

What happens when the 99 percent get kicked out by the cops, only to return later that evening? Mayhem. The Occupy Oakland protest, which is one of the largest in the country, reached a tipping point late Tuesday, as demonstrators trying to reclaim their campgrounds clashed with police. The authorities have reportedly used tear gas and percussion grenades to fight back. Police raided the Oakland movement earlier in the day and arrested 85 because of a lack of “safe and sanitary” conditions. Some reports say that as many as 500 people have been tear gassed. Meanwhile, police in Atlanta have also started evicting protesters.

Will this revive his flagging campaign? Texas Gov. Rick Perry unveiled a new economic proposal on Tuesday that he says will balance the nation’s budget by 2020. The centerpiece of the Perry plan is a flat tax of 20 percent that all Americans would have the option to choose over their current tax rate. The corporate tax rate would slip to 20 percent, too, down from 28 percent. Perry would make up for the drop in federal revenue with a balanced-budget amendment and a federal spending cap of 18 percent of GDP. Critics immediately slammed the proposal, saying it amounts to a massive tax break for the rich.

The heat is on—and we’re not just referring to his campaign chief smoking in his new video. A new CBS/New York Times poll shows that the former CEO of Godfather’s Pizza is the frontrunner in the GOP election, garnering 25 percent of the vote. In second place and 4 percent behind Cain was Mitt Romney, and Newt Gingrich in third with 10 percent of the vote. Rick Perry fell to fifth place with a dismal 6 percent. The survey was held from October 19 to 24, and includes the Las Vegas GOP debate. It does not, however, include Cain’s much talked about “smoking” campaign video.

Look who’s in the clink now. Eight New York City Police Department officers—five on the force, three retired—were arrested Tuesday and charged in federal court for smuggling firearms from New Jersey to New York. Four other men, including a New Jersey corrections officer, were also charged in the operation that involved driving M-16s, handguns, and other stolen merchandise across state lines. The arrests are a huge blow to Mayor Michael Bloomberg’s fight to get guns off city streets, one of the NYPD’s biggest initiatives under his administration.

IBM has appointed Virginia Rometty, the company’s current head of global sales and senior vice president, to be chief executive in 2012, making her the first woman ever to lead the legendary U.S. computer technology company. Rometty, 54, will take over for Sam Palmisano on Jan. 1, who will remain chairman of the board of directors after heading the company for more than a decade. Rometty's new role at IBM makes it the largest U.S. corporation by market value to be headed by a woman. (IBM is also known for its eco-friendliness, coming in at No. 1 on Newsweek's 2011 green rankings.) She joins a select group of women at the helm of U.S. tech companies, including Meg Whitman, the former head of eBay who was recently named CEO at IBM’s biggest rival, Hewlett-Packard.

Hurricane Rina is heading for Mexico’s Yucatan coast on Wednesday, and forecasters said they are unsure whether the storm will hit Cuba or southern Florida next, but it’s clear that Rina, reaching about 110 miles per hour and classified as a Category 2 hurricane, is poised to get even stronger as it nears land. Mexican officials said they are preparing more than 1,100 shelters that can accommodate up to 200,000 people. The area was badly damaged by Hurricane Wilma in 2005, when Cancún’s famous white-sand beaches were washed away in the storm surge. In some hurricane-related good news: all 29 passengers on a Nicaraguan naval ship were found alive, two days after they were reported missing.

So much for keeping a low profile: Amanda Knox’s Italian former  boyfriend, Raffaele Sollecito, has broken his silence for the first time since they were both acquitted of murdering Meredith Kercher. In an interview with the Italian weekly Oggi, Sollecito claims he and Knox speak on the phone every day. “We need each other,” he tells the weekly. “We spent four years in a circle of hell, we suffered unspeakably and it ruined our lives.” The couple spent four years in prison after being charged with sexually assaulting and murdering Kercher, Knox’s then-roommate who was found half-naked with her throat slit in her bedroom in November 2007. Sollecito also said he gladly accepted Knox’s invitation to visit her in Seattle. “I could go at any moment—I really want to see her again, to speak with her and look into her eyes.”

Europe, you're bringing the U.S. markets down. The Dow plummeted 207 points Tuesday, spooked that Europe will not avert financial meltdown. The NASDAQ dipped more than 2 percent. Meanwhile, Netflix shares dropped 35 percent following the news Monday that the movie-rental company had lost 810,000 subscribers between the second and third quarters. The company was set to open at its lowest levels since March of last year. Netflix wasn't the only tech company hurting: Amazon's quarterly profit fell a dizzying 73 percent after it spent heavily on its tablet.

After parting ways this summer, J.Crew executive Jenna Lyons is reportedly in a “messy divorce” with artist husband Vincent Mazeau. The New York Post’s Page Six reports that Lyons, who earns $5 million a year, fell in love with a woman who also works in the fashion industry after the split. Lyons has appeared on Oprah and caused a controversy after painting her son’s toenails pink in a catalog.

A Florida court on Tuesday released the names of the 12 jurors who acquitted Casey Anthony of the murder of her 2-year-old daughter, Caylee. A judge had instructed the names to be withheld from the public during a three-month “cooling off” period because some of the jurors had received death threats after the controversial verdict. Anthony was found not guilty of killing Caylee and released from a jail a few weeks later, having already served four years for a charge of lying to the police. She is now serving probation on an unrelated check-fraud charge in an undisclosed location in Florida.

Time for a new name? The Northern Lights, also known as the aurora borealis, were seen as far south this year as Atlanta on Monday night. The solar flares, which illuminate the sky and make it seem almost green, usually go only as far south as Boston or Seattle, but a solar outburst this year caused the light show to be visible in cities such as Memphis, Atlanta, and Oklahoma City. Meteorologist Jim Branda said a storm at the sun’s surface was blown off, and the solar wind scattered it—but don’t get too used it, since the southern light show is visible only once every three or four years and only if the sky is clear.

This would be a perfect presidential ad—if everyone loved smoking as much as the characters on Mad Men. In what looks to be Herman Cain’s new 2012 spot, chief of staff Mark Block speaks into the camera, saying, “Together we can do this. Together we can take this country back.” If the ad ended there, there would be no controversy. But as a dramatic song plays in the background, Block is seen smoking a cigarette. Cue the intro of Herman Cain. If the ad is really from Cain’s campaign, it’s another unconventional move for an already unconventional candidate. Block previously served on a group that has opposed smoking bans.

The smartphone wars are moving on to the living room: Bloomberg says Jeff Robbins, the Apple software engineer who designed iTunes, is leading the company’s efforts to build a television set. The late Apple CEO Steve Jobs told Walter Isaacson in his new biography that he had “finally cracked” how to make a Web TV. “It will have the simplest user interface you could imagine,” Jobs says in the new book. Nothing is official yet, but analysts expect the television in late 2012 or 2013.

It’s a new day for Rick Perry: the Texas governor will endorse a national, optional flat-tax rate of 20 percent in a speech in South Carolina on Tuesday, one day after he announced several new hires to his flagging presidential campaign. The new staffers include senior adviser Joe Allbaugh, who was George W. Bush’s 2000 campaign manager and a close associate of Karl Rove. Perry’s campaign will also begin to run television ads in Iowa this week.

Michele Bachmann will not be happy about this. The Centers for Disease Control panel voted Tuesday to recommend boys as young as 11 receive the HPV vaccine. Doctors say vaccinating boys and men will help prevent transmission of the virus that causes cervical cancer to women as well as protect boys and men from cancers of the penis and rectum. Although the vaccine has been approved for men since 2009, it hasn’t been heavily promoted for them. HPV is the No. 1 sexually transmitted disease in the U.S.; at least 50 percent of sexually active people will have it at some point in their lives. The vaccine is already recommended for girls between the ages of 11 and 26.

Ick: Dr. Phil is set to pay to exhume the grave of Rebecca Zahau, the woman whose death was ruled a suicide after she was found hanging with her hands and feet bound in her boyfriend’s San Diego mansion. Zahau’s family, apparently, does not believe she killed herself and so will allow for Dr. Phil to examine the body for further signs of foul play. He plans to air a show about the results in November, according to Radar Online.

So much for New Hampshire. GOP candidate Michele Bachmann’s former New Hampshire staff members—who quit last week in frustration—say that while they hold no ill will toward her, they were treated as second-class citizens. The news release goes on to say that the campaign team was “rude, unprofessional, dishonest,” and “cruel.” It adds that the campaign was “abrasive, discourteous, and dismissive” of the voters in the state. The five staffers quit Friday after saying that the national team had ignored them.

The Syrian government is torturing patients in state-run hospitals in order to squelch dissent, according to a new report by Amnesty International. The government has "given security forces a free rein in hospitals,” according to Amnesty researcher Cilina Nasser, and medical personnel sometimes participate in the abuse. Security forces routinely remove people from hospitals, and doctors and nurses face a “dilemma” when patients need blood: the government controls the blood bank, so any request alerts it to the patient’s presence. According to the report, many people are choosing to forgo medical treatment, even for serious wounds.

Police in Texas are searching for a stout black man in his 30s or 40s who is suspected of sexually assaulting at least four women in cities and towns near Dallas. The common thread? His victims, now in their 50s or 60s, were all members of the same sorority, Delta Sigma Theta. A Plano police spokeswoman said the assailant “made it obvious to our victims that he knew information ... about them personally,” and none of the women believe they had known him. In each case, he entered the women’s homes overnight when they were alone. The national Delta Sigma Theta organization has issued a warning to all alumnae in the Dallas area.

James Murdoch had a rough start to the week on Monday. First, the British Parliament called him back to testify about phone hacking at News International. Then, a majority of News Corp.'s independent shareholders voted to remove him from the company’s board. That wasn’t enough to boot him, as the Murdoch family and the supportive Saudi Prince Alwaleed bin Talal control at least 47 percent of all shares. Still, 35 percent of all shareholders—and 67 percent of independent shareholders—voted against his reelection. His brother Lachlan hardly fared better, with 34 percent of all shareholders and 64 percent of independent shareholders voting against him. Rupert Murdoch, however, was better off than his sons: 86 percent of shareholders voted to reelect him to the board.

Rick Perry may think President Obama’s birth certificate is a “distractive issue,” but he still has a lot to say about it. After telling a couple of interviewers over the weekend that he doesn’t know whether Obama’s birth certificate is real, Perry refused once again on Monday to take a clear stand. “I don’t have any idea,” he said. “It doesn’t matter. He’s the president of the United States. He’s elected. It’s a distractive issue.” But Perry said since his own grades “ended up on the front page of the newspaper,” he thought everyone should reveal their personal records. “It’s fun to poke at him a little bit and say, ‘Hey, how about let’s see your grades and your birth certificate.’” Republican leaders attacked Perry for his shifty responses, but his campaign said Perry’s statements showed he doesn’t take birthers seriously.

The new Libyan government took the body of Muammar Gaddafi into the desert and buried it in a secret location at dawn on Tuesday. Gaddafi’s tribe, the Qaddafa, had asked for his corpse so he could be buried in his hometown of Sirte; the government, however, refused the request out of fear that the grave might become a shrine. Gaddafi’s corpse had begun to decompose after four days in a meat locker, which was ineffective due to the constant opening of the door. Meanwhile, the Global Post claims that a frame-by-frame video analysis shows that Gaddafi was sodomized by a knife or stick in the moments leading up to his death.

Angry Oaklanders will have to sleep elsewhere. Dozens of Occupy Oakland protesters were arrested overnight Tuesday when 200 police officers stormed their tent city and dismantled it. Eighty-five people were arrested in the raid. Police also tore up the demonstrators’ cardboard signs and overturned couches. After the raid, Oakland Mayor Jean Quan issued a statement saying that the area would be reopened during normal park hours for peaceful protests—but “over the last week it was apparent that neither the demonstrators nor the city could maintain safe and sanitary conditions” at the encampment.

It hasn’t been a good week for the Lohan clan. Just as Lindsay began working at an L.A. morgue for a community-service mandate, her father got himself arrested in Tampa. Michael Lohan was charged with domestic violence after getting physical during a fight with his girlfriend. The Associated Press reports that the two were scheduled to appear in court Tuesday for another domestic-violence case—sparking a fight that lasted all day and resulting in Lohan supposedly grabbing his girlfriend’s arms, pushing her down, throwing jewelry and clothing around, and perhaps even banging his head into the bathroom door.

Masked Somali gunmen kidnapped an American aid worker and her Danish colleague on Tuesday, two Kenyan officials said. The 30-year-old American woman and 60-year-old Danish man were taken by the gunmen in northern Somalia, said the officials, who asked not to be named because they were not authorized to speak to the media. The two Westerners work for the Danish Demining Group, which helps dispose of unexploded bombs and teaches communities about land mines—but the roles of the two kidnapped workers is unclear. Since Kenya sent 1,600 forces into Somalia to fight the terrorist organization Al-Shabab, Americans in Kenya have been warned of a heightened terror risk.

A massive trove of documents recovered during the American invasion of Iraq in 2003 give a highly unusual look into the most intimate thoughts of a foreign leader and his government. The documents, which include notes and recorded meetings, remain mostly classified, but the government has released a portion of the collection to outside researchers. Among the revelations: Saddam Hussein had a conspiratorial view of the Reagan administration, and believed the U.S. had sold arms to Iran in order to prolong the Iran-Iraq War in 1986. He badly misread a meeting with American diplomat April Glaspie, which led him to believe the U.S. would stand by when he invaded Kuwait in 1990.

Legendary news commentator Andy Rooney, who signed off from 60 Minutes earlier this month after 33 years and more than 1,000 broadcasts, has been hospitalized after suffering complications from minor surgery he underwent last week. CBS announced that Rooney, 92, is currently in stable condition, though the reason for surgery and nature of the complications were not disclosed. His family has asked that their privacy be respected during this tough time.