SAN JUAN, Puerto Rico – Islanders set up emergency shelters and airlines canceled flights Sunday as newly born Hurricane Earl churned toward the northern Caribbean. Cruise lines diverted ships to avoid the storm’s path.

The U.S. National Hurricane Center in Miami said that Earl, with maximum sustained winds of 75 mph, could hit the northern Leeward Islands later Sunday.

Center forecasters said Earl could strengthen into a major hurricane by today, probably while east of Puerto Rico. Major hurricanes are those Category 3 and higher.

Meanwhile, the Category 1 Hurricane Danielle was bringing dangerous rip currents to the U.S. East Coast.

It was gradually weakening as it headed over the open Atlantic northeast of the British territory of Bermuda.

Nation

White House readies loans for the jobless

The Obama administration plans to set up an emergency loan program for the unemployed and a government refinancing effort to help homeowners pay their mortgages after home sales dropped in July, Housing and Urban Development Secretary Shaun Donovan said.

“The July numbers were worse than we expected, worse than the general market expected, and we are concerned,” Donovan said Sunday on CNN’s “State of the Union” program.

2 officers slain; suspect in standoff

Two police officers were shot to death in a tiny Native village in southeast Alaska and authorities were in a standoff Sunday with the suspect, local officials said.

Bob Prunella, acting Hoonah city administrator, said officers Tony Wallace and Matt Tokuoka died after the shooting late Saturday.

He didn’t know what led to the shooting.

The suspect, 45-year-old John Marvin Jr., had barricaded himself in his home, and Alaska State Troopers and other law enforcement agencies were at the scene Sunday, authorities said.

Fire burns at site of Tennessee mosque

Authorities are investigating a fire that damaged at least one construction vehicle at a Tennessee location where a mosque is being constructed.

Federal investigators wouldn’t say whether they believe the fire early Saturday was intentionally set at the suburban Nashville project in Murfreesboro, which has faced vehement opposition.

World

Abbas threatens to ditch peace talks

Palestinian President Mahmoud Abbas warned Sunday that he will not back down from his threat to pull out of new peace talks with Israel if it resumes construction in West Bank settlements.

The negotiations are set to resume this week in Washington after months of American mediation efforts.

Bus overturns in Ecuador; 36 die

A bus ran off a highway and overturned on Sunday, killing at least 36 people, Ecuadorean officials said. At least 12 others were badly hurt.

The bus was on a straight, well-paved strip of highway about 55 miles south of its destination, Quito, when the accident occurred. “It seems like the driver fell asleep,” transit police spokesman Juan Zapata said.

19 die in shootout in Chechen town

A shootout between the Chechen president’s personal protection detail and suspected separatist insurgents left 19 people dead early Sunday, including five civilians, officials and media reports said.

At least 12 suspected insurgents and two security officers were killed when the rebels entered Tsentoroi, Russia, Ramzan Kadyrov’s home village, his spokesman told The Associated Press.

TV reports said five civilians were killed in the crossfire.

Russian skinheads club concert-goers

Scores of bare-chested skinheads attacked a crowd of about 3,000 people at a rock concert in central Russia on Sunday, beating them with clubs, media reports said.

Dozens of people were left bloodied and dazed in the attack, television and news agencies reported, and state news channel Rossiya-24 said a 14-year-old girl was killed at the concert in Miass.

Volcano erupts for 1st time in 400 years

A volcano in western Indonesia spewed hot lava and sent sand a mile high into the sky early Sunday in its first eruption in 400 years.

Government volcanologist Surono, who uses only one name, said Mount Sinabung in North Sumatra province started rumbling a few days ago and the minor morning eruption had mostly stopped.

It caused no major damage, he said.