PRESS DIGEST - Wall Street Journal - Aug 29

    Aug 29 (Reuters) - The following were the top stories in The Wall Street Journal on Friday. Reuters has not verified these stories and does not vouch for their accuracy.

    * Barack Obama launched a historic general election campaign by promising a middle-class economic renewal and pledging to "fix the broken politics of Washington." The presidential candidate faces challenges and uncertainties no other presidential contender has confronted.

    * The U.S. has put "under review" bilateral talks with Russia focused on missile defense and nuclear disarmament as part of a broader re-evaluation, escalating its response to Moscow's   actions in Georgia. The European Union's ex-communist countries want an EU summit to show Russia it will pay a price for actions in Georgia.

    * Delphi Corp's <DPHIQ.PK> woes are raising doubts about its ability to survive. The auto-parts maker is laboring to craft a plan to emerge from bankruptcy-court protection, but odds are increasing that Delphi instead will be liquidated.

    * A still vulnerable New Orleans will commemorate the third anniversary of Hurricane Katrina under the threat of Tropical Storm Gustav, which swamped eastern Jamaica on a path to hit the Cayman Islands with winds near hurricane force.

    * Jefferson County, Alabama, is expected to default on an interest payment and could face a bankruptcy filing.

    * Dell Inc's <DELL.O> net fell 17 percent, raising questions about its turnaround effort and the business-spending climate. Shares were down 10 percent after hours.

    * The Justice Department issued new internal guidelines to restrict prosecutor leverage in white collar crime cases. Defendants scored a big victory in a separate, closely watched tax case involving former KPMG [KPMG.UL] officials.

    * Boeing Co <BA.N> presented its machinists with a final three-year contract offer, hoping to smooth a volatile relationship with its largest labor union and avoid a second strike since 2005.

    * The U.S. economy was much stronger in the spring than first thought, with gross domestic product rising 3.3 percent because of better exports and less inventory liquidation by businesses,    but the pace is expected to slow over the rest of the year.

    * Lehman Brothers Holdings Inc <LEH.N> is reportedly planning another round of layoffs. Between 1,000 to 1,500 jobs could be cut.