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By Ben Klayman and Bernie Woodall DETROIT (Reuters) - General Motors Co's first-quarter profit tumbled 88 percent on Thursday due to the massive recall for defective ignition switches, and shares fell 1.3 percent after the company said expectations for the rest of the year must be trimmed. While the company's results topped expectations on strong pricing for its redesigned pickup trucks in North America, it did not raise its full-year outlook by a corresponding amount. GM said in January its 2014 earnings would finish slightly higher. While leaving the outlook for the full year unchanged on Thursday, Chief Financial Officer Chuck Stevens said the stronger first quarter means the outlook for the rest of the year will have to come down.
By Jeffrey Heller JERUSALEM (Reuters) - Israel on Thursday suspended U.S.-sponsored peace talks with the Palestinians in response to President Mahmoud Abbas's unexpected unity pact with the rival Islamist Hamas group. The negotiations had appeared to be heading nowhere even before Wednesday's reconciliation agreement between the Palestinian groups plunged them deeper into crisis. The United States had been struggling to extend the talks beyond an original April 29 deadline for a peace accord. "The government of Israel will not hold negotiations with a Palestinian government that is backed by Hamas, a terror organization that calls for Israel's destruction," an official statement said after a six-hour meeting.