UK supermarkets set for shake-up

Supermarkets may be forced to sell land to allow rivals to open in areas where there is not enough competition.
The measure is likely to be among the Competition Commission's suggestions to remedy problems it has identified in the UK's grocery market.
There could also be a call for an ombudsman to protect food suppliers in any disputes with the big four supermarket chains.
The regulator will release its long-awaited report at 1630 GMT.
According to market research group TNS Worldpanel, the UK's big four - Tesco, Asda, Sainsbury's and Morrisons - now account for more than three-quarters (76.2%) of the grocery market.
They stand to be most affected by any changes to the system.
See which supermarket has the biggest share of the market
'Too few supermarkets'
In October, the commission concluded that there were aspects of the grocery market which prevented or restricted competition.

A supermarkets ombudsman could protect suppliers
It said many people had too few large supermarkets to choose from in their local area which acted as a barrier to competition
The commission found, for example, that certain retailers hold on to land, which could prevent others from setting up shop nearby.
The commission is expected to recommend changes to the planning system to combat this problem.
These could involve a limit on the length of time supermarkets can keep undeveloped land and stopping supermarkets from imposing restrictive covenants on land to prevent competitors building on it.
Retailers could even be forced to sell stores or land in areas where they are too powerful.
The commission is also expected to call for a supermarkets ombudsman to protect suppliers in their dealings with the big chains.
In October, the commission said it was concerned about retailers being able to transfer unexpected costs to their suppliers.

BAE inquiry 'put lives at risk'

The government thought "British lives on British streets" would have been at risk if an arms deal inquiry had not been dropped, court documents show.
The claims were made at the start of a High Court challenge brought by the pressure groups Corner House Research and Campaign Against Arms Trade (CAAT).
The groups want to overturn a decision to halt a corruption inquiry into an arms deal between BAE and Saudi Arabia.
They claim that business rather than security reasons brought it to an end.
A lawyer for the groups argued that the decision had been influenced by hopes of winning new contracts.
BAE, the UK's largest defence group, has always said it acted lawfully.
The judicial review at the High Court in front of Lord Justice Moses and Mr Justice Irwin is expected to last for two days.
In the documents released to the court, Helen Garlick, assistant director of the Serious Fraud Office, was quoted as recalling what the Foreign Office told her about its fears of another bomb attack in the UK.
"If this caused another 7/7 how could we say that our investigation, which at this stage might or might not result in a successful prosecution was more important?," the notes quoted her as saying.
Judicial review
The Serious Fraud Office (SFO) had been examining whether BAE gave money to Saudi officials to help secure contracts in the 1980s.
The allegation investigated by the SFO centred on BAE's £43bn Al-Yamamah arms deal to Saudi Arabia in 1985, which provided Tornado and Hawk jets plus other military equipment.
BAE was accused of operating a slush fund to help it secure the contract.
The SFO inquiry into the Al Yamamah deal was stopped in December 2006 by the government, with attorney general Lord Goldsmith announcing that it was threatening the UK's national security.
Corner House and CAAT are trying to prove in court that hopes of winning a huge new arms contract from Saudi Arabia influenced officials.
Threats from members of the Saudi royal family to withdraw security and intelligence cooperation were also to blame, lawyers for the groups argue.
Under pressure
The SFO began its investigation into the Saudi arms deal in November 2004.
Documents released to the High Court showed that a year later BAE wrote letters to the Attorney General setting out the "reasons why the company considers it not to be in the public interest for the investigation to continue".
In one letter, BAE expressed concern that the disclosure of payments to agents and consultants involved in the deal would be seen by the Saudi Arabian government as a "serious breach of confidentiality by the company and the UK government".
It said this would "adversely and seriously" affect diplomatic relations between the UK and Saudi Arabian governments and "almost inevitably prevent the UK securing its largest export contract in the last decade".
Nicholas Hildyard, director of Corner House, said that the documents made it clear that national security, "the reason ultimately given for pulling the plug on this investigation", was used as a last resort.
"It was trotted out as a concern only when all these other special pleadings of commercial and diplomatic consequences had failed," he said.

Forex - Dollar up vs euro, sterling after overnight losses on Bernanke remarks

The US dollar was higher against the euro and sterling midway through the morning session in Sydney on Friday, trimming overnight losses after Federal Reserve Chairman Ben Bernanke warned of sluggish economic growth until the end of the year and indicated the central bank is prepared to continue cutting interest rates to revitalise the world's largest economy.
Hawkish comments from European Central Bank member Axel Weber, coupled with Britain's recent strong wholesale inflation figures, added to pressure on the greenback.
The euro was buying 1.4637 dollars versus 1.4639 dollars in late New York trade after Weber
said the ECB would see a noticeable upward trend of long-term inflationary expectations as a
"clear signal" that it needs to act.
The sterling was worth 1.9685 dollars compared to 1.9689 dollars overnight while the dollar was down at 107.86 yen from 107.92 yen.
''Most of the chairman's (Bernanke's) comments reflected continuing concern about economic prospects, with banks and Wall Street expected to take more hits and 'more expensive and less available credit' a source of restraint on growth, and by extension, the US dollar,'' said John Kyriakopoulos, head of currency strategy at NAB Capital.
Elsewhere, the Australian dollar was doing 90.19 US cents compared with 90.14 cents overnight on expectations the Reserve Bank of Australia will tighten interest rates further.
Sydney at 9.55 am (2255 GMT)
US dollar
107.86 yen
1.097 sfr
Euro
1.4637 usd
157.86 yen
1.6059 sfr
0.7436 stg
Sterling
1.9685 usd
212.334 yen
2.15877 sfr
Australian dollar
0.9019 usd
0.4582 stg
97.27 yen
New Zealand dollar
0.7864 usd

China yuan central parity rate set at record 7.1763 to dollar vs 7.1890

The central bank has set the yuan central parity rate at a record 7.1763 to the dollar, according to the China Foreign Exchange Trading System.
The rate, published on the official Chinamoney website (www.chinamoney.com.cn), compares with the midpoint of 7.1890 set the previous trading day.
The People's Bank of China (PBoC) started setting a daily central parity rate on Jan 4, 2006.
On July 21, 2005, China freed the yuan from its long-standing peg to the dollar in favor of a trade-weighted basket of currencies, and allowed the local unit to appreciate by 2.1 pct.
The PBoC allows a trading band of 0.5 pct on either side of the central parity rate

OIL DATA: Japan Jan Power Output Up 4.9% At 90.42B KWh

Electricity generated by Japan's 10 regional power utilities in January rose 4.9% on year to 90.42 billion kilowatt-hours owing to cold weather in the month and continued strong industrial demand, the Federation of Electric Power Companies said Friday. The utilities used 1.19 million kiloliters of crude oil in the month, down from 1.22 million kiloliters a year earlier, the federation said

Doctor held in Indian organ scam

A doctor alleged to be the mastermind of an organ trading racket in India has been arrested in Nepal, according to Nepalese officials.
Amit Kumar was reportedly discovered in a jungle resort in southern Nepal.
Indian police had been wanting to question Dr Kumar after they raided a house in Delhi which had been used to carry out illegal kidney transplants.
Officers say hundreds of poor labourers were lured from across northern India and bribed into selling their kidneys.
Banned
Kiran Gautam, the police chief in Chitwan district, about 160km (100 miles) south of Kathmandu, told Associated Press news agency Dr Kumar was being taken to the capital for questioning.
Nepal's minister of state for home affairs Ram Kumar Chaudhary told CNN that Dr Kumar was carrying $145,000 and a cheque for 900,000 euros when he was taken into custody.
Indian officials say they will start extradition proceedings as soon as possible.
Trade in human organs is banned in India but many continue to sell their kidneys to clients, including Westerners, waiting for transplants.
In January, police in Gurgaon, a suburb of Delhi, raided the illegal clinic after being tipped-off by a victim. Four people were arrested.
The donors were allegedly paid up to $2,500.
The clients are said to be wealthy Indians, and even some foreign visitors who were in urgent need of a kidney transplant and willing to pay large sums.

ADB Kuroda Says Asia Economy "Not Immune" To US Slowdown

Asian economic growth, although still strong, is not immune to the U.S. economic slowdown, Haruhiko Kuroda, president of the Asian Development Bank, said Friday. Although the impact of the subprime crisis on Asia has so far been limited, "a deep U.S. recession, should it occur, would slow down Asia significantly," Kuroda, a former top bureaucrat at the finance ministry, said at a Asian Development Bank and Asian Development Bank Institute joint symposium. He added that Asian banks' exposure to subprime losses is very limited, but the risks of a spillover from further credit market tightening is potentially large. Therefore, "it's important to expand domestic demand" to sustain Asian economic growth, he said. While the Japanese economy may be currently growing at 1%-1.5%, it seems likely to recover toward 2% in the second half of the year, he said. The negative impact of the construction slowdown due to a change in Japanses building standards laws is likely to fade, Kuroda said. Kuroda is seen as a possible candidate to replace Bank of Japan Gov. Toshihiko Fukui when his term ends in March.

Japan minister hopes G7 meeting to calm market

Japan said Friday it hoped to calm markets with candid talks on the US mortgage crisis at this weekend's meeting of finance ministers and central bankers from seven major nations.
Japanese Finance Minister Fukushiro Nukaga said Group of Seven participants should encourage financial institutions to make public ways to prevent a similar crisis that has pulled down global stock markets.
"We will have straight talk about the financial uncertainty, brought on by the US subprime mortgage issue and its effects on the global economy," Nukaga told reporters.
"With that said, it is important that we issue a firm message of global economic expansion and to secure market stability through international coordination," he said.
Nukaga, who will chair the meeting to be held in Tokyo Saturday, said calming the jittery market will be a key issue during the talks.
"To that end, I also wish to discuss information disclosure by financial institutions, ways to make up for their losses and how we will provide a feeling of security in the market," he said.
"We must make sure such incidents would not happen again. It's important that we talk about it," he said.
On expected bilateral talks with his US counterpart, Treasury Secretary Henry Paulson, Nukaga said financial stability and maintenance of robust Asian economies would be key subjects.
"The United States, Europe and Japan face different economic fundamentals. How do the individual countries and region bring their economies back to what it was before? How do we regain the sense of stability? We must make sure we make utmost efforts," he said.
"I also believe it is important for us to discuss how we will maintain the continued growth of emerging Asian nations, such as China and India," he said

Congress approves US economy plan

The US Congress has passed a $167bn (£86bn) economic stimulus plan aimed at helping to bolster the world's largest economy and avoid a recession.
The package includes one-off rebates of up to $600 for individuals and $1,200 for couples plus $300 for each child.
The Senate voted to approve measures after a week of manoeuvring that saw agreements to provide extra money to retired people and the elderly.
The House of Representatives followed suit a few hours later.
Fast action was needed, politicians said, to limit the damaging effect on the economy that the credit crunch and housing market woes were having.
President George W Bush welcomed the passing of the bill and said it would help stimulate consumer spending.
Treasury Secretary Henry Paulson also welcomed the approval, saying: "This package of payments to individuals and incentives for businesses to invest will support our economy as we weather the housing downturn."
'Direction change'
As well as the tax rebates, those on low incomes, who do not pay income tax, would receive a $300 payout, Congress agreed.
This is not a victory for Republicans or Democrats. This is a victory for the American people
Senator Mitch McConnell
The new measures were passed in a vote by 81-16 in the Senate, but only after Democrats dropped calls for more unemployment benefits, assistance with fuel bills and plans to offer certain industries tax breaks.
The package passed in the House by 380 to 34.
The approved package would "change the economic direction of this country", said Senate Majority Leader Harry Reid, a Nevada Democrat.
Republican Senator Mitch McConnell said: "This is not a victory for Republicans or Democrats. This is a victory for the American people."
However, some politicians are worried about the damage the plan will do to government finances - potentially doubling last year's budget deficit.
"We have to remember that every dollar being spent on the stimulus package is being borrowed from our children and our children's children," said Republican Senator Judd Gregg, who voted against the bill.

US shoppers tighten their belts

American retailers have revealed further evidence that US shoppers cut back their spending in shops and malls in January.
From department store Macy's to supermarket Wal-Mart, retailers revealed flat or falling sales.
The US Federal Reserve has cut interest rates to stimulate spending, which accounts for two thirds of the economy.
Higher fuel and food prices, the credit crisis and the housing slowdown are all depressing consumer sentiment.
In a further sign that US shoppers are spending less, Federal Reserve figures show that US consumer borrowing - which includes credit cards - grew at the slowest rate in eight months during December.
It rose at an annual rate of 2.1% in December, sharply down from November's 8.2% jump.
Luxury hit hardest
Wal-Mart, the world's largest retailer, said sales had risen 0.5% but said people were spending on staples, not treats after the Christmas holiday period.
"Customers appear to be holding gift cards longer and using them more often for food and consumables rather than discretionary purchases," it said in a statement.
The more upmarket names saw the biggest declines.
Department store owner Macy's said it was cutting 2300 management posts in a bid to cut costs after January sales fell more than 7%.
Sales at designer retailer Nordstrum fell 6.6% and Macy's saw a 7.1% fall.
Fellow department store chain Saks posted a better than expected 4.4% rise but warned of tough times ahead.
Discounter Costco was one of the few to see better than expected sales figures, up 7%.
The government hopes its proposed economic stimulus package will encourage spending, but some fear the effect will only be temporary, especially if the job market continues to deteriorate.
Last week, the latest jobs figures showed the first decline in employment since August 2003, providing further evidence that the US economy could be entering a recession.

Tattoos may help deliver vaccine

Scientists in Germany say that tattoos could be the ideal way of delivering vaccines into the body.
The researchers say that in tests undertaken with mice, tattoos were much more effective in provoking a response from the immune system.
Tattoos could be a useful way of delivering therapeutic vaccines in humans, including for some cancers.
Such vaccines have often failed to produce the expected immune response when delivered using an injection.
Vibrating needle
Tattoos have played a part in human culture for thousands of years.
Just over 100 years ago, the practice became more widely available with the invention of the electric tattoo machine in the United States. The same basic instrument is still in use to create tattoos today.
Now researchers in Germany say that the rapidly vibrating tattoo needle could be a useful way of delivering vaccines under the skin instead of insoluble ink.
In studies with mice, tattooing a vaccine produced 16 times more antibodies than a simple injection into muscle tissue.
The level of antibodies indicates the strength of the immune system's response.
Dr Martin Mueller, one of the researchers behind this work, says that the greater damage to the body caused by the tattoo needle may explain the better immune response.
The scientists say that the tattoo needles would never be suitable for preventative vaccines, such as measles, in children as the pain would be too great.
But there may well be a role for the technique in the routine vaccination of animals.

'Al-Qaeda boys' in training video

US and Iraqi forces have issued video footage which they say shows children under the age of 11 being armed and trained by al-Qaeda.
The US military said five tapes had been found when coalition forces raided suspected al-Qaeda hideouts north of Baghdad in December.
The videos showed boys brandishing guns and grenades during training exercises.
The Americans hope the images might persuade Iraqis to turn against the Islamic militants, correspondents say.
The footage compiled from the tapes features around 20 young boys running around with pistols, machine guns and rocket-propelled grenades.
In one scene, the boys take part in a mock kidnapping, where they force the volunteer to kneel in the dust with a pistol at his head.
Ransoms
The BBC's Jim Muir in Baghdad says the children are also shown posing in sinister black facemasks to announce the slaughter of their hostages.
The US military believes the footage was shot as raw material for propaganda films aimed at attracting new, young recruits.
US military spokesman Rear Admiral Gregory Smith said it did not appear that the boys had been kidnapped or press-ganged into taking part.
"Clearly there are families in which the adult males are part of al-Qaeda and you would assume that those children are growing up in that environment that would, unfortunately, produce the next generation of al-Qaeda," he said.
Iraqi defence ministry spokesman Mohammed al-Askari said the tapes were a "sign of desperation" by al-Qaeda and claimed that children were trained to kidnap to raise funds from ransoms.

UK consumers see interest rates cuts reversed with a year - Lloyds TSB

UK consumers expect any cut in borrowing costs to be short-lived, with more than half believing that interest rates will be higher within a year, according to a survey by a leading bank.
The Lloyds TSB Consumer Barometer found 52 pct of consumers expect interest rates will be above current levels in 12 months time, with 25 pct expecting them to be lower and 19 pct unchanged. The resulting balance of +27 pct is up by 2 percentage points on last month -- the first time the balance has grown after six months of successive falls.
This comes in spite of the fact the majority of economists are forecasting the Bank of England to cut interest rates tomorrow by a quarter point to 5.25 pct and take rates even lower over the coming months.
Trevor Williams, chief economist at Lloyds TSB, said consumers' expectation that any fall in borrowing costs will be short-lived probably reflects their outlook of rising inflation.
"Consumers are clearly increasingly feeling the strain of higher prices -- energy and food in particular -- and this is starting to convince them that the Bank of England will be forced to keep interest rates high in order to keep inflation under control," Williams said.
This is reflected in the fact that a balance of +84 pct of respondents expect prices in general to be higher in 12 months time.
The survey of 2000 people also found consumers are increasingly nervous about job security. A balance of 6 pct said they felt their job was less secure than a year ago, while a balance of 30 pct said they thought employment prospects in the UK in general are worse then they were 12 months earlier.

Foreigners Sold Net Y448.7B Japan Stocks Last Week

The foreign flight from Japan's stock market continued last week, Ministry of Finance data showed Thursday. Foreign investors sold Y448.7 billion of Japanese shares on a net basis during the week of Jan. 27-Feb. 2, MOF's weekly portfolio flow data showed. It marked the fifth straight week of net stock sales, and the 11th such week out of the last 13. The scale of net selling was smaller than the previous week's Y559.0 billion, but larger than any other week since mid-December, as the Nikkei 225 Stock Average continued to fall sharply. Foreigners also sold a net Y12.1 billion of Japanese bonds last week. They were net buyers in the Japanese money markets for the first time since New Year's week, taking a net Y273.0 billion of short-term money-market instruments. Japanese investors, meanwhile, were net buyers of foreign securities, purchasing a net Y113.2 billion of foreign shares and a net Y487.3 billion of foreign bonds.

Japan's January forex reserves hit record 996.04 billion dollars -

Japan's foreign exchange reserves rose to a record 996.04 billion US dollars at the end of January, supported by a stronger euro and rises in evaluation gains on US Treasurys, the Ministry of Finance said Thursday.
The previous record of 973.36 billion dollars was reached in December.
The yield on the 10-year Treasury fell to 3.597 percent from 4.027 percent, pushing up prices, while the strengthening of the euro increased the dollar value of euro-denominated assets.
The single European currency rose to 1.4861 dollars at the end of January from 1.4591 dollars in December, the ministry said.
The rise in gold price also inflated forex reserves, as the price of gold rose to 923.25 US dollars an ounce in December from 836.50 US dollars in December, it said.
Japan's forex reserves remain the second largest in the world next to China, whose holdings reached 1.53 trillion dollars at the end of December, according to the latest available figures from the Chinese government.
Foreign exchange reserves consist of securities and deposits denominated in foreign currencies, plus International Monetary Fund (IMF) reserves, IMF special drawing rights (SDRs) and gold.
At the end of January, Japan had foreign currency reserves of 968.48 billion dollars, IMF reserves of 1.41 billion dollars, SDRs of 3.06 billion dollars, gold reserves of 22.71 billion dollars and other foreign currency assets worth 376 million dollars.
Japan's reserves are closely watched for evidence of how the country is managing its foreign currency holdings. They are seen as having a significant impact on exchange rates and bond markets around the world, particularly the US government bond market.
The biggest changes in Japan's forex reserves usually occur when authorities intervene in the currency market to prevent the yen from appreciating rapidly. Monetary authorities have not intervened since mid-March 2004.
(1 US dollar = 106.40 yen)

Australian banks hike interest rates following central bank lifting target rate

Australia's fourth largest bank Westpac Banking Corp Ltd and and fifth largest St George Bank Ltd have become the latest banks to announce higher interest rates following the Reserve Bank of Australia (RBA) hiking its cash target a quarter percentage point to 7 percent on Tuesday.
Westpac said Thursday it will raise its home loan rates and business loan rates by a quarter percentage and will also move to increase selected personal and business deposit accounts by up to 0.30 percent.
St George will also raise its lending rates by a quarter percentage point.
On Wednesday the nation's largest home lender, Commonwealth Bank of Australia Ltd, took a more aggressive stance, hiking its mortgage rates 0.3 percentage points, putting a 0.05 percent premium on Tuesday's official rate hike.
Westpac said it continues to face funding pressures caused by the market volatility from the impact of the US subprime mortgage crisis, in addition to rate increases triggered by the RBA's decision.

China Coal in 'lacklustre' debut

Shares in China Coal Energy Corp have risen 28% on their $3.6bn (£1.8bn) debut on the Shanghai stock exchange.
The performance disappointed some investors, as in some recent Chinese listings companies have seen their share prices double.
Its shares were trading at 21.62 yuan, up 28% from their debut price of 16.83 yuan. The stock had been expected to trade in a range of 26 to 32 yuan.
China is the world's largest producer and consumer of coal.
"China Coal's relatively lacklustre debut reflected the weak stock market and the response to a downgrading of its share price by Goldman Sachs yesterday," said Chen Jinren, senior stock analyst at Huatai Securities.
China's main stock index dropped more than 3% on Friday after enduring its biggest monthly slide in January in more than a decade.
The country has seen a slew of initial public offerings in recent years but there are signs this could slow as equity markets tumble worldwide.

US warning set to hit Pfizer drug

Drugs giant Pfizer is expected to see a sharp fall in the sales of one of its best-selling products following a warning by US regulators.
The Food and Drugs Administration (FDA) said it was "increasingly concerned" that Pfizer's anti-smoking drug Chantix could cause suicidal thoughts.
"There are a number of compelling cases that... look as if they are the result of exposure to the drug," it said.
Pfizer has already added warning notices to Chantix labels.
'Worsening illness'
FDA officials said they have received almost 500 cases of suicidal behaviour and thinking, and 39 reports of completed suicides.
"Chantix may cause worsening of current psychiatric illness even if it is currently under control," said the FDA.
"It may also cause an old psychiatric illness to reoccur."
Chantix had sales of $280m (£142m) in the last three months of 2007.
The drug works by binding to nicotine receptors in the brain, thereby reducing withdrawal symptoms.

Yahoo bid 'should get approval'

With US politicians due to meet later this week to discuss Microsoft's offer for Yahoo, analysts ultimately expect any deal to secure regulatory approval.
As Yahoo's board mulls Microsoft's $44.6bn (£22.4bn) takeover proposal, a key congressional committee said it will scrutinise the bid on 8 February.
Members of the US Congress Judiciary Committee said any sale of Yahoo would raise important competition issues.
European regulators have said they would give the deal a fair hearing.
Competitive landscape
In a joint statement, Congress Judiciary Committee members Congressmen John Conyers and Lamar Smith said Microsoft's bid was "certainly one of the largest technology mergers we've seen".
At the end of the day, it's hard to see how regulators could reject this
Analyst Evan StewartZuckerman Spaeder
They added that it "presents important issues regarding the competitive landscape of the internet".
"The Committee will hear from experts who will weigh in on whether this proposed consolidation works to further or undermine the fundamental principles of a competitive Internet," they said.
Microsoft's relationship with European Union competition authorities is far more strained than that with those in the US.
In 2004 the European Commission fined Microsoft 497m euros for abusing its market dominance, a ruling the US company finally lost on appeal in September last year.
The Commission has since launched two new competition inquiries against Microsoft.
Yet Competition Commissioner Neelie Kroes has said that this continuing legal dispute would have no baring on approval for any takeover of Yahoo.
Challenge Google
Analyst Evan Stewart of Zuckerman Spaeder said regulators on both sides of the Atlantic would likely approve any successful Microsoft bid for Yahoo, because Google is currently so dominant in the internet search engine market.
"At the end of the day, it's hard to see how regulators could reject this," said Mr Stewart.
Fellow analyst William Mahnic of Case Western University agreed.
"The big thing here is that Google has such a huge share," he said.
Yahoo said its board was evaluating Microsoft's approach "carefully and promptly".
Both it and Microsoft have been struggling to compete with Google.

Colombo railway blast kills eight

At least eight people have been killed and up to 100 hurt in a suicide attack in the main railway station in Sri Lanka's capital Colombo, officials say.
Police said a female suicide bomber blew herself up as a suburban train pulled into a station platform.
The attack comes amid increased security ahead of celebrations on Monday to mark the 60th anniversary of Sri Lanka's independence from Britain.
On Friday, 18 people died in a blast in the central town of Dambulla.
Both attacks have been blamed on Tamil Tiger rebels.
The rebels, who have been fighting for an independent state in the north and east since 1983, have carried out frequent suicide and bomb attacks in the city and other areas.
The civil war has intensified since last month, when the government pulled out of a ceasefire with the rebels.
'Policeman bleeding'
The BBC's Roland Buerk in Colombo says there are large numbers of police in the station and the scene of the blast has been cordoned off.

Sri Lanka's military is busy rehearsing for Monday's parades
Eyewitnesses described what happened.
"I was near my counter and I heard a big blast. When I looked behind I saw a policeman bleeding," said ticket inspector Ravindra Pinto.
"As I took him and rushed out, I saw many men and women on the ground," he said.
Colombo station is situated in the heart of the city, near the president's offices and several major hotels.
Our correspondent says people are concerned that there may be more attacks to coincide with the anniversary.
Huge parades have been planned in the city, large parts of which have been closed off.
A bomb attack on the city zoo earlier on Sunday injured four people.
The blast, near an aviary, is thought to have been caused by a grenade.

Deadly earthquake shakes Rwanda

At least 21 people have been killed - many when a church collapsed - and some 200 injured in an earthquake in western Rwanda, reports say.
The quake, felt across several countries of the Great Lakes region, had a magnitude of 5.0. Police say the death toll could rise.
Its epicentre was 20km (12 miles) east of Bukavu, a town across the border in the Democratic Republic of Congo.
A powerful 6.8 magnitude earthquake rocked the region in December 2005.
But while it is prone to seismic activity it has mostly escaped major quakes in recent years.
The earthquake hit at about 0935 (0735 GMT).
It lasted about 15 seconds and was followed by two lesser tremors, which caused panic in Bukavu and in Rwanda, AFP news agency reported.
Power cuts
Rwandan radio said 10 people died when a church collapsed in Rusizi district.
The rest were killed in other parts of Rusizi and Nyamesheke district.
There were unconfirmed reports of two more fatalities in Bukavu.
Witnesses told AFP that public buses were being used to transport the injured to hospital.
The quake was also felt in neighbouring Burundi, disrupting hydroelectric power and causing a half-hour electricity cut.

'Breakthrough' in writers' strike v

A breakthrough has reportedly been reached during informal talks between striking Hollywood writers and production companies.
The two sides bridged the gap over the key issue of payment for projects distributed on the internet, the Associated Press news agency said.
A deal would end the three-month writers' strike that has crippled the US entertainment industry.
It could also resolve a deadlock over this month's Academy Awards ceremony.
Oscars organisers and producers have pledged to stage a show on 24 February, but only a deal with the Writers Guild of America would allow the ceremony to proceed as usual.
The strike, which began nearly three months ago, has hit film and TV production across the US and caused the cancellation of last month's Golden Globes awards ceremony.
But the guild has agreed to let writers work on the Grammys, to be held on 10 February, as a gesture of solidarity with musicians also facing challenges getting "compensation for the use of their work in new media".
Directors deal
Friday's breakthrough could allow the two sides to bypass formal negotiations, Variety and the New York Times reported.
Both sides will now have to agree the language of provisions before putting the deal to Writers Guild of America leaders, the New York Times said.
Any deal would then have to be approved by a majority of the guild's active members, which number more than 10,000.
The informal talks began in the wake of a tentative contract agreement between studios and the Directors Guild of America, which dealt with many of the same issues that have troubled writers.
The Los Angeles Economic Development Corporation says the strike has cost the region's film and TV industry at least $650 million (£330 million) in lost wages, with the wider economy losing over $1 billion (£508 million).
Neither the Writers Guild of America nor the Association of Motion Picture and Television Producers have commented on the reports.

Ban calls to end Kenya violence

UN chief Ban Ki-moon has called on all sides in Kenya to stop the violence that has wracked the country since December's disputed presidential poll.
"Look beyond the party lines. Look towards the future," he urged.
He met opposition leader Raila Odinga in Nairobi, after seeing President Mwai Kibaki on Thursday in Ethiopia.
Mediation talks between the government and opposition have resumed. At least three opposition supporters were shot dead by police in overnight clashes.
The latest violence was in the western town of Eldoret, where opposition MP David Too was shot dead by a policeman on Thursday.
The police say the MP was caught up in a domestic dispute but the opposition says he was assassinated.
Barbaric acts are being committed, civilian populations are being killed in atrocious ways, with women and children raped
Bernard Kouchner

The BBC's Wanyama Chebusiri in Eldoret says there were running battles overnight between opposition supporters and the police.
Thirteen people are in hospital with gun shot wounds, he says.
France has called on the UN Security Council to help stop the violence.
Foreign Minister Bernard Kouchner expressed fear that the country was being allowed to slide into a "deadly ethnic conflict."
More than 850 people have died in political and ethnic violence since the 27 December presidential elections, which the opposition says were rigged.
'Special responsibility'
Correspondents say the purpose of the UN secretary general's visit is to offer support to his predecessor, Kofi Annan, who is mediating talks between the two sides, and to be briefed on the humanitarian crisis.

There has been fresh violence in the Rift Valley
"I'm reasonably encouraged by the commitment and the willingness of all the political leaders as well the community leaders who are now looking at the possibility of resolving this issue though dialogue and peaceful means," Mr Ban told reporters, AFP news agency quotes him as saying.
"You have lost already too much in terms of national image... You lost many tourists, this is a very unfortunate situation for a country which has been enjoying freedom and security and stability," he said.
In a statement issued from Paris, Mr Kouchner called on the UN Security Council to act.
"In the name of its duty to protect, it must urgently come to the aid of Kenya's population," he said in a statement.
"Barbaric acts are being committed, civilian populations are being killed in atrocious ways, with women and children raped."
Honey-hunters hit
Mr Too was the second MP to be killed this week and his shooting led to the talks to be postponed until Friday.
As well as the trouble in Eldoret, police fired teargas to disperse protesters in the town of Kisumu, and in the MP's home town of Kericho, buildings were set alight.
Our correspondent says there is now a heavy security presence in Eldoret and the town remains tense.
Kericho is reported to be deserted with paramilitary police on the streets and shops and banks closed, he says.
A small community of honey hunters who live in the mountains overlooking the Rift Valley has also been caught up in the violence.
Some Ogiek houses have been burnt down and many have gone into hiding the forests where they lack food.
"When they are burning Ogiek houses they are saying it is because you voted for the Orange Democratic Movement," Kiplangat Cherugot, who works for a non-governmental organisation in the area, told the BBC's Network Africa programme.

Twin bombings kill 64 in Baghdad

Two bombs in busy Baghdad animal markets have killed at least 64 people.
The blasts, at least one of which was detonated by a female suicide bomber, came within 20 minutes of each other.
Friday morning's death toll was the city's highest since violence fell in the wake of a US troop surge in the second half of 2007.
Correspondents say a fragile sense of normality in the capital had followed significant security improvements since the troop surge.
A ceasefire announced in August by the Mehdi Army militia of Shia cleric Moqtada Sadr, as well as the emergence of local Sunni militia armed by the US military that took on al-Qaeda in Iraq, have also contributed to the sense of security.
Confidence shattered
PREVIOUS GHAZIL MARKET BOMBS
June 2006 - Four killed by two bombs left in bags
Dec 2006 - Three killed in mortar attack
26 Jan 2007 - 15 killed by bomb hidden in box of birds
23 Nov 2007 - 13 killed in attack blamed on Iranian-backed Shia militants
In pictures: Market attack
But that renewed confidence could be shattered by Friday's deadly bombings, the worst to hit the Iraqi capital since three car bombs killed 80 people last 1 August.
The blasts came shortly before the call to Friday prayers when many Iraqis were out shopping or meeting friends.
The first device was detonated by a female suicide bomber at around 1020 local time (0720GMT) in the popular Ghazil animal market, killing at least 46 people and injuring a further 80.
A popular spectacle for Baghdadis, the animal market only opens on Fridays and regularly draws large crowds, despite having been targeted by bombers twice in 2007.
Piled into wheelbarrows
Just 20 minutes after the first explosion, a second bomb tore through another crowded market in the Jadida area of east Baghdad, killing at least 18 people and injuring 30.

Police and medical officials piled the dead and injured into wheelbarrows, cars and the back of pick-up trucks to be transported to five hospitals across the city.
An official at the capital's Kindi hospital said at least 30 bodies had been received.
"We have a disaster here," he said. "There are too many bodies to count."

Microsoft wants to purchase Yahoo

Microsoft has offered to buy the search engine company Yahoo for $44.6bn (£22.4bn) in cash and shares.
The offer, contained in a letter to Yahoo's board, is 62% above Yahoo's closing share price on Thursday.
Yahoo cut its revenue forecasts earlier this week and said it would have to spend an additional $300m this year trying to revive the company.
It has been struggling in recent years to compete with Google, which has also been a competitor to Microsoft.


In a conference call, Microsoft's Kevin Johnson said that the combination of the two companies would create an entity that could better compete with Google.
It is a shotgun marriage, but the person holding the shotgun is Google
Tim Weber, business editor, BBC News website
W
"Today the market (for online search and advertising) is increasingly dominated by one player," he said.
Chairman quit
Yahoo confirmed that it has received an unsolicited offer and said that its board would evaluate the proposal, "carefully and promptly in the context of Yahoo's strategic plans and pursue the best course of action to maximize long-term value for shareholders."
Its chief executive, Jerry Yang, announced on Tuesday that he intended to lay off 1,000 staff as part of a restructuring plan.
Terry Semel, who stepped down as chief executive last June, also quit as non-executive chairman on Thursday.
Microsoft said that Yahoo shareholders could choose to receive either cash or shares.
YAHOO'S FALLING PROFITS
Oct to Dec 2007 down 23%
July to Sept 2007 down 5%
April to June 2007 down 2%
Jan to March 2007 down 11%
Yahoo shares have fallen 46% since reaching a year-high of $34.08 in October. They rose 54% in pre-market trading.
"Ultimately this corporate marriage was forced by the rise of Google, which has grown into a serious competitor for both Microsoft as a software company and Yahoo as an internet portal," said Tim Weber, business editor of the BBC News website.
"It is a shotgun marriage, but the person holding the shotgun is Google."
'Exorbitant premium'
According to its letter to Yahoo, Microsoft attempted to enter talks about a deal a year ago, but was rebuffed because Yahoo was confident about the "potential upside" presented by the reorganisation and operational activities that were being put in place at the time.
"A year has gone by, and the competitive situation has not improved," Microsoft's letter said.
But there has been some concern about the price that Microsoft is offering
This smacks of desperation from Microsoft who have consistently failed to achieve a meaningful online presence
Matt, UK
"To me, the premium seems exorbitant, for what is a dwindling business," said Tim Smalls from the brokerage firm Execution LLC.
"I personally don't see how the synergies of Microsoft-Yahoo is going to take on Google."
Other analysts were more enthusiastic about the offer.
"It is a fantastic offer. It is game on," said Colin Gillis from Canaccord Adams.
"This consolidates the marketplace down to Google versus Microsoft. These two companies will be going head to head."

Afghan senate backs death penalty

Afghanistan's upper house of parliament has issued a statement backing a death sentence for a journalist for blasphemy in northern Afghanistan.
Pervez Kambakhsh, 23, was convicted last week of downloading and distributing an article insulting Islam. He has denied the charge.
The UN has criticised the sentence and said the journalist did not have legal representation during the case.
The Afghan government has said that the sentence was not final.
A government spokesman said recently that the case would be handled "very carefully".
Now the Afghan Senate has issued a statement on the case - it was not voted on but was signed by its leader, Sibghatullah Mojaddedi, an ally of President Hamid Karzai.
It said the upper house approved the death sentence conferred on Mr Kambaksh by a city court in Mazar-e-Sharif.
Concerns
It also strongly criticised what it called those institutions and foreign sources which, it said, had tried to pressurise the country's government and judiciary as they pursued people like Mr Kambakhsh.
Some governments and international organisations have called for the sentence to be overturned.
A legal expert, Wadir Safi, told the BBC that parliament was not constitutionally allowed to intervene in a case in the way the Senate had done, and he was concerned the new statement might prejudice the independence of the judges.
Mr Kambakhsh's brother, Yacoub Kambakhsh, told the BBC that the journalist was very concerned about his future and said he had not had a fair trial or any lawyer to defend him.
But the provincial governor in Mazar has said the case is being handled with due process.
Mr Kambakhsh has at least two more courts in which to appeal and the sentence would have to be approved by President Karzai to be carried out.
He is a student at Balkh University and a journalist for Jahan-e Naw (New World).
He was arrested in 2007 after downloading material relating to the role of women in Islamic societies.

Gandhi's ashes scattered at sea

Ashes of Indian independence leader Mahatma Gandhi have been scattered off the coast of Mumbai to mark the 60th anniversary of his assassination.
An urn containing the ashes was opened and they were mixed with water from the Arabian Sea by his great-granddaughter Nilamben Parikh.
The ceremony was in accordance with Hindu rites.
Gandhi - called Mahatma or "Great Soul" - spearheaded a non-violent campaign against the British Raj.
'Come together'
His campaign culminated in India getting its independence in 1947.
"It is a day of thought and reflection for me and for all of us who can now look to carry his thoughts forward," Ms Parikh, 75, said.

A Mumbai display depicting Gandhi's assassination
"I feel on this occasion the whole nation will come together."
She and 10 other family members - descendants of Gandhi's four sons - boarded a boat and scattered the ashes about 1km (0.6 miles) out to sea.
Ms Parikh is descended from Gandhi's eldest son, Harilal, who had a turbulent relationship with his father and was not at his funeral, contravening Hindu tradition by which the eldest son lights the father's funeral pyre.
Her participation in the ceremony has been described by family members as a gesture of reconciliation.
After Gandhi's cremation, his ashes were distributed in 20 different containers to towns and villages across India for memorial services.
Some were kept and worshipped by wealthy industrialist families who supported Gandhi during his lifetime.
Moral conscience
In 1997, one such urn was found in a bank locker in the state of Orissa. They were later immersed in keeping with the family's wishes.
The BBC's Prachi Pinglay, who attended the Mumbai ceremony, says that many of those present at Chowpatty beach were in their seventies
Indian Home Minister Shivraj Patel and Maharashtra Governor SM Krishna represented national and state governments.
The ashes were taken to sea after police formed a guard of honour.
Gandhi was assassinated by a Hindu fanatic in 1948. Today he is widely revered as the nation's moral conscience.
His principles of truth and non-violence have been widely followed and worshipped.
However, some Hindus question his philosophy of non-violence.
Wednesday's ceremony was deeply moving for 72-year-old lawyer Trivedi, who stood at the barricade in Mumbai and watched his wife Usha Trivedi go with the boat to immerse the ashes.
He watched the media scuffle with police as they jostled to get on other boats to cover the ceremony with a certain amount of sadness.
"Isn't it an irony that when ashes of a man who practiced peace and non-violence are being immersed, there is so much commotion and chaos?" he asked.
As the ashes dropped deep into the sea, another follower with childhood memories of Gandhi, 72-year-old Dr Vora, was overcome with emotion.
"Hope he is reborn," she said.

Severed cables disrupt internet

Internet services have been disrupted in large parts of the Middle East and India following damage to two undersea cables in the Mediterranean.
There was disruption to 70% of the nationwide network in Egypt, and India suffered up to 60% disruption.
UK firms such as British Airways have told the BBC that call centres have been affected by the outage.
Industry experts said it could take up to one week to repair the damaged cables and resume full service.
International telephone calls, which have also been affected, are being rerouted to work around the problem.
'Degraded performance'
Disruption also occurred in the United Arab Emirates (UAE), Kuwait and Saudi Arabia, reported the Associated Press.
In Dubai, at least two internet service providers (ISPs) were affected.
An official at the provider, DU, told AP that a fault in a network between Alexandria, Egypt, and Palermo, Italy, was to blame.
DU issued a statement to alert customers to "a degradation in internet services and international voice calls for some customers during peak times".
The company said it was due to "cuts in two international submarine cable systems in the Mediterranean Sea this morning (Wednesday).
"We are working actively with the submarine cable system operators (FLAG Telecom and SEA-ME-WE 4) to ascertain the reasons for the cables being cut," it said.
FLAG Telecoms operate the Fiber-Optic Link Around the Globe (FLAG), a 28,000km (17,400 mile) long submarine communications cable.
SEA-ME-WE 4, or the South East Asia-Middle East-West Europe 4 project, is a submarine cable system linking South East Asia to Europe via the Indian subcontinent and the Middle East.
Repair work
Neither of the cable operators have confirmed the cause or location of the outage but some reports suggest it was caused by a ship's anchor near the port of Alexandria in Egypt.
One Indian internet service provider, Videsh Sanchar Nigam Ltd (VSNL), linked the problems in India to the disruption in Egypt.
"Information technology companies, software companies and call centres that provide online services to the UK or the US east coast are the worst affected," Rajesh Chharia, president of the Internet Service Providers' Association of India, told Agence France-Presse (AFP).
India is the world leader in offshore outsourcing, with the remote servicing of IT or other business processes worth an estimated £24bn.
AFP also reported disruption to telecommunications in Bangladesh and Sri Lanka.
Egypt's Telecommunications Ministry said it would probably take several days for internet services to return to normal following the disruption on Wednesday.
Emergency teams were trying to find alternative communication routes, including satellites, AP was told.
The ministry's Rafaat Hindy said: "Despite this being an international cable affecting many Gulf and Arab countries, we are closest to it and so we have a lot of responsibility.
"We are working as fast as we can."

Blast kills top Afghan official

The deputy governor of Afghanistan's Helmand province has been killed in a bomb attack on a mosque, officials say.
Deputy governor Haji Pir Mohammed was one of seven people - including the bomber - killed in the explosion at the start of afternoon prayers.
Eighteen people were also hurt in the suicide bombing in Helmand's provincial capital, Lashkar Gah, police said.
The Taleban say they carried out the attack. Helmand is a major stronghold of the Taleban.
Most of the 6,000 British troops serving as part of a Nato force in Afghanistan are also based in the southern province and Canada has 2,500 troops there.
Helmand is a centre for opium production and international efforts to curb the trade have had limited effect.

Mr Mohammed was killed at the start of afternoon prayers
The attack comes as three Western reports warn that Nato is not winning in Afghanistan and the country faces a humanitarian catastrophe.
Attacks by the Taleban during the past year have been the highest recorded since the regime was ousted by US-led forces in 2001.
According to Helmand's police chief, Mohammed Hussain Andiwal, Thursday's attack took place at the start of afternoon prayers in the mosque.
Child beggar
He said Haji Pir Mohammed had just earlier been in a meeting with Helmand's governor.
Those hurt included a four-year-old child who had been begging at the mosque's entrance, Mr Andiwal said.

According to a local health official interviewed by AFP news, six bodies had been brought to a local hospital, "including the deputy provincial governor".
The mosque where the attack took place is said to be close to several provincial government offices.
Meanwhile in Kabul, a suicide bomber driving a car killed one civilian and injured four others, including an army officer.
The interior ministry said the attacker targeted an army bus close to the city centre. The device is thought to have gone off early.

Iraq 'set for oil price windfall'

Oil refineries are key to the Iraqi economyIncreasing oil production and higher oil prices mean Iraq could be set for an influx of extra money towards reconstruction, a report has said.
Iraq could get an extra $15bn (£7.5bn) from its oil in 2008, special inspector general Stuart W Bowen Jnr said.
But the report said greater efforts were needed to establish how the money would be used, and to fight the corruption which eats into oil revenue.
Oil revenue makes up about 84% of Iraq's national revenue.
Iraq's oil production averaged 2.38 million barrels a day in the last three months of 2007, the report said, the highest level since the US-led invasion in 2003, but below pre-war levels.
Along with record oil prices, which hit $100 a barrel earlier this month, this had created "the opportunity for significant economic investment", Mr Bowen said.
"The possible rise in Iraq's revenue emphasises the need for the government of Iraq to pursue its fight against corruption with renewed vigour," the report added.
Violence continues
Mr Bowen has previously labelled offences such as theft, bribery, oil smuggling and fraud as a "second insurgency", threatening Iraq's development.
Violence also remained a "deadly threat" to the reconstruction the report said, with attacks on infrastructure in many industries - including oil - a regular problem.
"Despite the palpably improved security climate, violence continues to impede the efforts of agencies working on Iraq's relief and reconstruction," it said.
Of the $113.95bn spent on Iraq's reconstruction to the end of December, $47.5bn came from the US, $50.6bn came from Iraq itself and the remainder was from the international community.

Fed cuts US interest rates to 3%

The Federal Reserve has cut interest rates for the second time in nine days as it tries to keep the US economy from entering a recession.
The central bank lowered rates to 3% from 3.5% after a two-day meeting.
Last week, the Fed slashed the cost of borrowing by the largest amount in 25 years in a shock move to calm tumbling global stock markets.
The Fed is hoping the cuts will cushion the US economy from the worst effects of the credit crunch and housing slump.
"Financial markets remain under considerable stress, and credit has tightened further for some businesses and households," the central bank's Federal Open Market Committee (FOMC) said.
"Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labour markets."
Markets pleased
The half a percentage point cut was bolder than some economists were expecting and it pleased financial markets.
There's signs that our economy is slowing. There's some uncertainty in the economy,
President George W. Bush

US shares reversed early losses and gained ground on hopes for a revival in economic growth after the Fed's aggressive action.
But the main Dow Jones stock index ended the day lower as investors took profits.
"The members recognise that the threats to the financial markets and therefore to economic growth remain and that they had to get the Fed into accommodation mode," said Joel Naroff at Naroff Economic Advisors.
"They have done so in a very dramatic fashion and have made the financial markets very happy."
The rate cut was approved by a nine to one vote.
Richard Fisher, president of the Fed's Dallas region bank, voted against the cut, preferring no change in rates.
Weak growth
Data released earlier showed weak economic growth in the final three months of 2007 as the housing market slump deepened and consumer spending cooled.
Growth slowed to an annual rate of 0.6% between October and December, half the rate forecast and compared with a brisk 4.9% growth rate in the previous three months.

The Fed is aiming to lift confidence in the world's largest economy
Despite the growing evidence of a severe slowdown, President George W Bush encouraged Americans to have confidence in the US economy.
"There's signs that our economy is slowing. There's some uncertainty in the economy," the president said during a visit to a helicopter factory.
"But in the long run you've got to be confident about your economy. Inflation is down, interest rates are low, productivity is high, our economy's flexible, it is resilient," he said.
Criticism
Some observers criticised the Fed for bowing to the short-term priorities of financial markets.

The global credit crisis is rooted in problems in the US housing market
"The Fed looks foolish. It seems they're afraid of the market," said David Greenwald, a partner at Scalene Capital Management.
"Everyone knows that it takes a while for 75 basis points to get through the economy and by cutting 50 now, I just think they're not leaving much room in the future."
Interest rates have now been cut five times since 18 September 2007, when the Fed first lowered rates in response to the credit crisis.
The Fed cut the cost of borrowing by three quarters of a percentage point last Tuesday in an emergency unscheduled move.
The last two such emergency cuts were on 17 September 2001, shortly after the attacks of 11 September, and on 3 January 2001, in the wake of the dotcom bust.
The last time the Fed cut rates by as much as three-quarters of a percentage point was in August 1982, almost 26 years ago.

Deadly blast in Istanbul suburb

An explosion has killed at least 17 people and injured more than 40 at a textile firm's premises in a suburb of Istanbul, Turkish officials say.
The blast caused part of a five-storey building in the western Davutpasha district to collapse.
Injured people were carried out of the building, but some victims are said to be still under the rubble.
The city's governor, Muammer Guler, says it is not yet clear what caused the blast. But he ruled out terrorism.
The explosion happened at about 0930 local time (0730 GMT), starting a fire in the building.

A second blast reportedly happened just minutes later.
"White smoke was rising into the sky from the factory as we came to the front of the building. People were running around," a witness, who identified himself as Ali, told CNN Turk television.
Television pictures immediately after the blast showed survivors carrying the injured out of the building.
Rescue teams continued to search through the rubble for more survivors. A number of people were taken to hospital.
Mr Guler later said "right now, there is nothing linked to terror".
Businesses in the building included textile makers and an unlicensed fireworks manufacturer, officials said.
This is by far the most serious accident of its kind for some time, the BBC's Sarah Rainsford in Istanbul says.

Singer Spears taken to hospital

Singer Britney Spears has been taken to hospital by ambulance from her home in Los Angeles, police have said.
A police officer told Associated Press that the pop star was being taken to hospital to "get help", but did not say which facility she was being taken to.
The authorities have yet to disclose any further details.
Earlier this year Spears, 26, was admitted to hospital after refusing to surrender custody of her two sons in a stand-off with the police.
'Mental issues'
The star was released from the Cedar-Sinai Medical Center after a day and a half. The details of her medical treatment were not revealed.
Sole custody of Sean Preston, two, and Jayden James, who is one, was awarded to Spears' ex-husband Kevin Federline after the incident.
The singer was also denied visitation rights to her children.
Earlier this week, US talk show host Barbara Walters claimed that Spears has been receiving treatment for "mental issues".
She said Spears' manager Sam Lufti had told her the singer was suffering from psychiatric problems that are "treatable".
"She has been having mood swings. She's been having trouble sleeping," Walters said on her show The View.
TV therapist Dr Phil McGraw, who visited Spears during her hospital stay last month, said at the time that he thought she was "in dire need of both medical and psychological intervention".
McGraw, who cancelled a planned TV show on the singer's predicament, was later criticised by Spears' family for speaking publicly about the matter.

Harbhajan cleared of racial abuse

Harbhajan Singh has been cleared at an appeal hearing of racially abusing Australia all-rounder Andrew Symonds.
The India spinner had been found guilty of calling Symonds, Australia's only mixed-race player, a "monkey" during the second Test in Sydney this month.
But an appeal hearing ruled there was not enough evidence to convict Harbhajan of racial abuse but charged him with using abusive language.
Harbhajan pleaded guilty and was fined half his match fee and is free to play.
"The racial abuse charges have been dropped," said Niranjan Shah, secretary of the Board of Control for Cricket in India. "It is finished.
"The punishment is only for using obscene language."
I'm really happy and relieved, not just for Harbhajan, but for cricket
India skipper Anil Kumble
The appeal commissioner of the International Cricket Council, New Zealand high court judge John Hansen, is due to hand down an explanation for his ruling in Adelaide on Wednesday.
It is not clear if he will make recommendations about how such situations, where the word of one team is pitted against the other, can be avoided.
A spokesman for the ICC told BBC Sport senior officials at the governing body would need "a few days to digest what the commisioner says" before making any further comment.
But India have now lifted a threat to pull out of the rest of their tour, allowing their players - all of whom remained in Adelaide for the five-hour hearing - to move on to Melbourne for a Twenty20 game on Friday.
The Indian board and Cricket Australia released a joint statement endorsing the appeal decision.
"Controversy surrounding the incident involving Harbhajan Singh and Andrew Symonds on day three of the Sydney Test has come to a constructive conclusion," it said.
"Harbhajan Singh and Andrew Symonds said they had resolved the on-field issue between them in Sydney and now intend to get on with the game of cricket, which is most important to them.
606: DEBATE
Surely now is the time to let the matter go and get back to the bat and ball
Alex Trickett - BBC Sport
"Both captains also said they were satisfied with the outcome between their respective players and they looked forward to the cricket battles that lie ahead."
India skipper Anil Kumble added: "It's time to move on. This matter was lingering on for the last two weeks or so, although cricket was being played, but now the matter is settled.
"I'm really happy and relieved, not just for Harbhajan, but for cricket overall. It's time to start concentrating on the game."
Harbhajan's original punishment by match referee Mike Procter came after Australia captain Ricky Ponting made an official complaint about his alleged comments.
On-field umpires Mark Benson and Steve Bucknor levelled a charge under section 3.3 of the ICC code of conduct following Ponting's complaint.

Symonds was at the centre of the incident
The ICC revealed that a letter signed by all the players involved was tendered into evidence as an agreed statement of facts as to what took place during the Sydney Test match.
Video and audio evidence, verbal statements from players and legal submissions were also considered.
"Justice Hansen said that he was convinced that on all evidence submitted before him the charge of a level 3.3 offence was not proven, but that Harbhajan should be charged with a level 2.8 offence," an ICC spokesman said.
At the time of the incident, Harbhajan was batting alongside Sachin Tendulkar, who backed his team-mate's claim that he had not called Symonds a "monkey".
In the aftermath of Procter's decision, India suspended the tour and later warned they might abandon it if Harbhajan's appeal failed, a threat they later withdrew.
BBC sports editor Mihir Bose revealed that the Indians claimed Harbhajan had used a Hindi phrase that could be misheard as "big monkey" in English.
Following Australia's 2-1 victory in the Test series, the sides next face each other in a Twenty20 match in Melbourne before playing in a triangular one-day tournament which also involves Sri Lanka.

Indian interest rates unchanged

India's central bank has kept interest rates on hold at 7.75%, disappointing those who were hoping for a cut.
Economists said that rising food and fuel prices were more worrying for the Reserve Bank of India (RBI) than the impact of the sub-prime crisis.
Indian interest rates rose five times between June 2006 and last March and have been on hold since then.
Some economists thought a cut likely, particularly after the US Federal Reserve slashed rates last week.
Rupee concerns
But the RBI indicated that it was ready to cut interest rates if there was any sign of a slowdown.
"Developments in global financial markets in the context of the sub-prime crisis would warrant more intensified monitoring and swift responses with all available instruments to preserve and maintain macroeconomic and financial stability," it said.
The current gap between US interest rates and Indian interest is the largest in three years.
There is some concern that the disparity could push the rupee higher and make Indian exports less competitive on the world market.

Quarter of US iPhones 'unlocked'

More than a quarter of iPhones sold in the US have been "unlocked" to work on network providers other than Apple's exclusive partner AT&T, a study says.
One million iPhones, or 27% of those sold last year, have been adapted to work on other networks, said Bernstein Research analyst Toni Sacconaghi.
Apple recently admitted that the number of unlocked iPhones was "significant".
The iPhone, which was launched last summer, is tied to a single phone network in each country it is on sale.
While AT&T is Apple's chosen partner in the US, in the UK the iPhone is only officially available through O2, while in Germany it is tied to T-Mobile.
'Lost revenue'
Mr Sacconaghi said the high number of unlocked iPhones in the US would be a concern for Apple, as it receives a percentage of AT&T's contract fees from iPhone users.
He estimates that if Apple sells 10 million iPhones in the US by the end of 2008, but 30% of them have been unlocked to work with other phone networks, Apple will lose $500m (£251m) in revenues.
Apple and AT&T have declined to comment on the detail of the report.
Last month Vodafone failed in the German courts to get T-Mobile's exclusivity deal over the iPhone overturned.

Bird flu cull hit by 'corruption'

Several culling teams have stopped working in districts of West Bengal hit by bird flu, complaining of corruption.
They say that they are being put under pressure by local politicians to exaggerate the number of birds killed so that more compensation is paid.
Some of the extra money is pocketed by local politicians, they say.
Nearly 200 culling team members have withdrawn from working in Rampurhat and Baroncha in protest against "pressure for false certificates".
'Too tired'
"If we kill five birds, we are asked to certify the killing of 50 birds so that the villagers get more compensation, part of which is pocketed by the village politicians," alleged Pintu Ghosh, member of a culling team at Rampurhat.
The decision by some culling team members in Rampurhat and Baroncha in Murshidbad district is significant, because these are areas worst hit by bird flu, where culling targets have been constantly upped as the epidemic spreads.

Rural poultry farmers have been badly affected
The officials all work for West Bengal's health and animal husbandry departments.
In the district of Nadia, other culling teams have stopped work because they say they are "too tired".
"We are too few and our task is huge. We have been working relentlessly for the last week," said Chandan Das, a culling team member.
Desperate district administrators have threatened to arrest those members of culling teams who pull out of work.
On Monday, officials said that the epidemic has spread to 13 of West Bengal's 19 districts.
An outbreak has even been reported from Budge Budge, a suburb of the capital, Calcutta, officials say, even though 1.7 million birds have so far been culled.
Police checkpoints have been set up all around the city to prevent any possible smuggling of poultry, Calcutta's police commissioner Gautam Chakrabarty said.
"If this spreads to Calcutta, there will be panic and chaos," animal disease expert Barun Roy said.
The municipal authorities in Calcutta are not prepared for such a situation, he said.
'Alarming'
West Bengal's Health Minister SK Mishra said that the situation was "alarming" and that a total of 2.5 million birds would need to be disposed of.

Villagers are reported to be reluctant to hand over birds
In some areas just hit by bird flu, like Debra in West Midnapore district, villagers are actively resisting the culling of their backyard poultry, complaining of financial losses.
Experts say that this could be contributing towards the spread of the disease.
The H5N1 strain of bird flu is regarded as highly pathogenic and can cause disease and death in humans.
Health experts have warned that the outbreak could get out of control.
The only saving grace so far for the authorities is that no cases of human infection have yet been reported.
Tens of thousands of rural families, for whom poultry is the only major source of income, have been ruined.

Man Utd 3-1 Tottenham

Cristiano Ronaldo scored twice to put Manchester United into the last 16 of the FA Cup after an entertaining tie.

Wayne Rooney cleared Dimitar Berbatov's header off the line before Robbie Keane converted Aaron Lennon's cross to put Tottenham ahead in a lively first half.

Ryan Giggs teed up Carlos Tevez to level but Edwin van der Sar superbly denied Jermaine Jenas before half-time.

Ronaldo netted a penalty after Michael Dawson saw red for deliberate handball and he fired in the third near the end.

It continued United's long unbeaten run at home against Spurs - which began in December 1989 - and was no less than the Premier League champions deserved after a dominant second-half display.

They were tested, however, during an opening 45 minutes which featured plenty to admire from two sides that have won the Cup 19 times between them.

For all their fluid movements, the home team often lacked a telling final ball and Spurs drew encouragement from the success they had in containing the lethal triumvirate of Rooney, Tevez and Ronaldo.

Indeed, the visitors came desperately close to an opener in the 15th minute when Berbatov headed Lennon's corner goalwards, only to be thwarted by Rooney on the line.

The warning signs were there for the favourites and when a raking pass from Dawson was collected by Lennon, the winger's cross was met by Keane, who ghosted past the centre-halves to claim his fourth strike in as many games.

United responded with predictable vigour and after Cerny tipped over a fierce Ryan Giggs strike from the edge of the area they were deservedly level.

Lennon and Keane combined to put Tottenham in front

John O'Shea's deep ball caused confusion for Young-Pyo Lee and Dawson, allowing Giggs to nip in and lay-off to Tevez, who fired across Cerny and into the net.

Spurs were undaunted and, with the game opening up, almost regained the lead right on half-time.

Jenas raced clear down the middle following Steed Malbranque's defence-splitting pass and he got in an effort which Van der Sar pushed past the post.

More composure soon after the break would have yielded another Tottenham goal.

A slip from left-back Patrice Evra allowed Lennon to break free but he chipped over, and a clever punt from Keane created an even better opening for Jenas, who sidefooted off-target.

Those misses proved costly as Sir Alex Ferguson's men cranked up the pressure.

Ronaldo was enjoying more freedom and he really should have made it 2-1 when a sublime pass from Tevez sent him clear into the box.

But the goal United had been threatening duly arrived when Dawson was dismissed for using his arm to deny Rooney a shooting opportunity and Ronaldo fired home his 24th goal of the season from the spot.

The game looked up for Tottenham but they bravely ventured forward and Wes Brown's attempt to clear a Malbranque cross bounced back off the post.

However, any hopes the visitors were harbouring of a replay were ended when a dreadful error from Cerny saw Ronaldo's shot squirm under his body and over the line.

---

Man Utd: Van der Sar, O'Shea, Ferdinand, Brown, Evra (Simpson 90), Ronaldo, Carrick (Scholes 64), Hargreaves, Giggs, Rooney, Tevez (Anderson 81).
Subs Not Used: Kuszczak, Nani.

Booked: Evra.

Goals: Tevez 38, Ronaldo 69 pen, 88.

Tottenham: Cerny, Tainio (Defoe 81), Dawson, Huddlestone,Lee (Gunter 59), Lennon (Boateng 72), O'Hara, Jenas, Malbranque, Keane, Berbatov.
Subs Not Used: Robinson, Kaboul.

Sent Off: Dawson (68).

Goals: Keane 24.

Att: 75,369

Ref: Peter Walton (Northamptonshire).

---

BBC Sport Player Rater man of the match: Tottenham's Robbie Keane 7.61 (on 90 minutes).

Russia art show opens to public

An exhibition of treasured artworks from Russia which nearly failed to make it to the UK has opened in London.

The show, which is at the Royal Academy of Arts until 18 April, was threatened after the Russians were concerned some of the works could be seized.

The collection contains some works taken from private owners after the 1917 Russian Revolution.

A law giving immunity from seizure to cultural artefacts lent from abroad was pushed through by the government.

Highlight

The Russian authorities gave the loan of the paintings their final approval earlier this month after "maximum possible assurances" were given by the UK that they would not be threatened with legal claims from the original owners' descendants.

Some of the collection, which features work by Renoir, Cezanne, Picasso and Van Gogh, has never been seen in the UK.

One of the highlights is Matisse's The Dance, which was painted during a period when the artist's work was misunderstood.

It is hoped the exhibition will attract some 500,000 visitors.

PC sales lift Microsoft's profits

Microsoft's profits for the key Christmas trading quarter have soared 79%, driven by strong computer sales and the success of its Xbox console.

The US giant's net profit for October to December 2007 was $4.7bn (£2.4bn), compared with $2.6bn a year earlier.

Its latest profit was ahead of analyst targets, but the rise is exaggerated by 2006's figure being reduced due to delays to the Vista software system.

Microsoft's revenues for the last quarter of 2007 grew 30% to $16.37bn.

Halo 3

The company said shipments of its Vista operating systems had soared from October to December thanks to a double-digit rise in global computer sales.

Revenues at Microsoft's Client division, which includes Vista jumped 68% from a year earlier to $4.34bn.

Quarterly revenues in the company's games unit rose 3.1% to $3.06bn, thanks to the continuing popularity of the Xbox and its hit Halo 3 title.

"It appears that the Vista operating system is beginning to gain traction in the marketplace," said analyst Michael Cuggino of Permanent Portfolio Funds.

"It's a good sign for technology spending, both on the corporate side and the consumer side."

French trader 'staked 50bn euros'

he French trader at the centre of a massive fraud case had gambled around 50bn euros ($73bn; £37bn) before being uncovered, his employer has said.

Bank Societe Generale said Jerome Kerviel, 31, appeared to have been operating alone.

When the bank reversed all the deals he allegedly made, it was hit with a loss of 4.9bn euros.

Lawyers for Mr Kerviel, who is being questioned by police, said their client had "committed no dishonest act".

"He did not siphon off a single cent, and did not profit in any way" from the bank's assets, the lawyers told AFP.

They also accused the bank of trying to "create a smokescreen which would divert public attention from losses that were significantly more substantial than those it accumulated in recent months".

Kerviel 'co-operating'

Police have been given a further 24 hours to question Mr Kerviel. They say he is co-operating with their inquiry.

Mr Kerviel handed himself in on Saturday, two days after the scandal was revealed publicly. No charges have yet been brought against him.

In my opinion, it is his bosses and employers who should be looked into Sylviane Le Goff Aunt of Jerome Kerviel

By early afternoon on Monday police must either free him or present him to a judge for the opening of a full judicial investigation into charges of fraud.

"The detention is going very well," said Jean Michel Aldebert, head of the financial section of the Paris prosecutor's office. "He is talking about the things he has been accused of."

Societe Generale on Sunday accused its trader of using "fraudulent methods", and concocting "fictitious operations" to prevent detection.

It said his background in trader oversight enabled him to fool those supposed to monitor traders' activities.

He had committed some 50bn euros to purchases of "futures" portfolios - effectively betting on the future direction of the stock market - the bank said.

Journalists have yet to get a glimpse of Mr Kerviel

That was more than the bank's own worth - about 35bn euros - and about the size of France's entire annual budget deficit.

Traders are supposed to balance each purchase with a sale, but Mr Kerviel allegedly made up fictitious sales, leaving the bank massively overcommitted.

Societe Generale said the deals, once discovered last weekend, had to be "undone as soon as possible, due to the risks tied to the amount", even though "market conditions were very unfavourable".

Prices were falling on stock markets around the world, meaning when the positions were closed, the bank showed a 4.9bn euro loss.

The bank said its traders worked on the matter for three days, finally closing the positions on 23 January.

System 'haywire'

Analysts have suggested that Societe Generale's massive sell-off may have played a part in sparking the huge losses suffered by world stock markets early last week.

SOCIETE GENERALE IN FIGURES Founded in 1864 467bn euros in assets under management (as of June 2007) 22.5m customers worldwide 120,000 employees in 77 countries Societe Generale share price

Two legal complaints of fraud have been lodged against Mr Kerviel - one from a group of small Societe Generale shareholders, and the other from the bank itself.

But numerous analysts have queried how a middle-ranking employee could have been single-handedly behind such a colossal loss, reports the BBC's Hugh Schofield in Paris.

The case has stirred debate in France about the merits of speculative financial markets.

"We must stop with this system that has gone haywire and that has lost track of its aim," said President Nicolas Sarkozy, speaking on a trip to India.

"It appears to be time to... inject a bit of common sense into all these systems," he added.

'Shy'

Mr Kerviel disappeared after the news of the losses Societe Generale had incurred broke on Thursday, fuelling speculation he had fled.

But it is now reported that he was staying with his older brother, Olivier. Mr Aldebert said he had handed himself in voluntarily.

Police searched Mr Kerviel's Paris flat on Friday and also visited the Societe Generale headquarters, where he worked, leaving with documents and computer disks.

Meanwhile, Mr Kerviel's acquaintances have described a shy, considerate person who liked judo and sailing.

An aunt told French news agency AFP her nephew "must have been manipulated".

"They are an honest family, who have nothing to reproach themselves for," Sylviane Le Goff said.

"The young man has always been serious, reserved. In my opinion, it is his bosses and employers who should be looked into," she said.

She added that her sister had gone to Paris on Thursday to try and "comfort" her son.