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.
Thursday, February 14, 2008
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.
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
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
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
Thursday, February 7, 2008
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.
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
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.
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.
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.
Wednesday, February 6, 2008
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.
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.
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.
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)
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.
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.
Sunday, February 3, 2008
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.
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.
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.
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.
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.
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.
Friday, February 1, 2008
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
"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.
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."
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."
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."
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