I’m not sure how this would be done with a single playlist (we use hourly playlists, so a new one starts after the bulletin).
But using Events you can set the current playing item to stop, play the news jingle, open the Line In on the soundcard, close Line In on the soundcard two minutes later, play an item (e.g. news out) and then start automation playback.
If a 120 minute recorded programme was playing (syndicate show is provided as one 120 minute slab of MP3 audio) if the event stopped the file to insert the newsfeed , would automation have to start a new file or would it continue playing the first file in the same position it had stopped , in effect pausing the file rather than stopping ?
It would always stop the playing file, play the news, then start the next item. So you must split the show into two files (or use the same file with two different set of cue points).