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Steady job growth continues in US The US created fewer jobs than expected in December, but analysts said that the dip in hiring was not enough to derail the world's biggest economy. According to Labor Department figures, 157,000 new jobs were added last month. That took 2004's total to 2.2 million, the best showing in five years. Job creation was one of last year's main concerns for the US economy. While worries still remain, the conditions are set for steady growth in 2005, analysts said. The unemployment rate stayed at 5.4% in December, and about 200,000 jobs will need to be created each month if that figure is to drop. "It was a respectable report," said Michael Moran, analyst at Daiwa Securities. "Payroll growth in December was a little lighter than the consensus forecast, but we had upward revisions to the prior two months and an increase in manufacturing employment." "Manufacturing is a cyclical area of the economy and if it's showing job growth, it's a good indication that the economy is on a solid growth track." That means that the Federal Reserve is likely to continue its policy of raising interest rates. The Fed lifted borrowing costs five times last year to 2.25%, citing evidence the US economic recovery was becoming more robust. Job creation was one of last year's main concerns for the US economy, and proved to be a main topic of debate in the US presidential election. While demand for workers is far from booming, the conditions are set for steady growth. "Overall, compared to the previous year it looks great, it just keeps going stronger and stronger and I expect that to be the case" in 2005, said Kurt Karl, economist at Swiss Re in New York. Meanwhile, economists cautioned against reading too much into data from the Federal Reserve showing an unexpected $8.7bn drop in consumer debt in November. A fall in consumer spending, which makes up about two-thirds of all US economic activity, could help limit the extent of any future interest rate rises. But economists said there could be a number of reasons for a fall in the borrowing, which include credit cards and personal loans, while noting that such figures can vary on a month-to-month basis.

Boeing unveils new 777 aircraft US aircraft firm Boeing has unveiled its new long-distance 777 plane, as it tries to regain its position as the industry's leading manufacturer. The 777-200LR will be capable of flying almost 11,000 miles non-stop, linking cities such as London and Sydney. Boeing, in contrast to European rival Airbus, hopes airlines will want to fly smaller aircraft over longer distances. Airbus, which overtook Boeing as the number one civilian planemaker in 2003, is focusing on so-called super jumbos. Analysts are divided over which approach is best and say that this latest tussle between Boeing and Airbus may prove to be a defining moment for the airline industry. Boeing plans to offer twin-engine planes that are able to fly direct to many of the world's airports, getting rid of the need for connecting flights. It is banking on smaller, slimmer planes such as the 777-200LR and its much-anticipated 787 Dreamliner plane, which is set to take to the skies in 2008. The 777-200LR, which had its launch delayed by the 11 September attacks in the US, is the fifth variation of Boeing's twin-aisle 777 plane. The company offically "rolled-out" the new 777 in Seattle at 2200 GMT. Better fuel efficiency from engines made by GE and lighter materials mean that the plane can connect almost any two cities worldwide. "Boeing has the latest variant in a very successful line of airplanes and there is no doubt it will continue to be very successful," said David Learmount, operations and safety editor at industry magazine Flight International. But the 777-200LR "is a niche player", Mr Learmount continued, adding that reach was not the only criteria airlines used when picking their aircraft. Mr Learmount pointed out that the 777-200LR has been on the market for a couple of years and only had limited success at attracting orders. He also said that while the plane may be able to fly to Sydney from London in one hit, prevailing winds meant that it would have to stop somewhere on the return journey. For Airbus, the future is big - it is pinning its hopes on planes that can carry as many as 840 people between large hub airports. From there, passengers would be ferried to their final destinations by smaller planes. Airbus is also keeping its options open and plans to compete in all the main categories of aircraft. It has been producing a rival to Boeing's 777 line for more than a year. "Airbus is now where Boeing was a few years ago" with its product range, said Flight International's Mr Learmount. Both Boeing and Airbus have been taking orders for their new planes. Boeing said it expected to sell about 500 of its 777-200LR planes over the next 20 years. It already has orders from Pakistan International Airlines and EVA of Taiwan. These orders should help underpin the company's profits. Boeing said earnings during the last three months of 2004 dropped by 84% because of costs relating to stopping production of its smallest airliner, the 717, and the cancellation of a US air force 767 tanker contract. Net profit was $186m (£98m; 143m euros) in the quarter, compared with $1.13bn in the same period in 2003.

Sport betting rules in spotlight A group of MPs and peers has called for a tightening of regulations controlling betting on sport. The Parliamentary Group on Betting and Gaming held a substantial inquiry into betting last year. It followed fears that a massive increase in betting on sport, such as that done using the internet and mobile phones, has led to more cheating. The all-party group recommended 15 ways to protect punters and improve the integrity of sports betting. They include a proposal for raising the maximum jail sentence for gambling cheats above the current two years. Lord Condon, head of the International Cricket Council's anti-corruption unit, who originally made the call for longer prison sentences, said the two-year penalty was "derisory". "You could get a bigger sentence for failing to pay your hotel bill criminally than you could for corruption in major sports. "Symbolically, a higher penalty, perhaps as the Bill passes through the two Houses, might be appropriate." The report recommended the governing bodies of sports have a say in the type of bets offered to punters, and for bookmakers to set up "audit trails" - something the new betting exchanges already do - to allow suspicious betting patterns to be traced. Lord Faulkner of Worcester, who chaired the inquiry, said: "Whilst we accept that the greater part of sports betting is neither corrupt nor unfair to punters, the evidence convinces us that the growth of betting exchanges - because of the facility they provide to bet against a result - has increased the potential for corruption. "It is important that the government works with sporting administrators to review the difficulties faced by governing bodies in convicting the guilty and penalising them appropriately." The panel's aim was to try to define what constitutes cheating, assess how much might be going on and suggest what the government might do to put it right. As well as the growth of internet and mobile phone betting, there has been the creation of betting exchanges which allow punters to fix odds between themselves. Betting exchanges allow punters to back (to win) but also lay (to lose) a horse. This means they can control their odds at winning by placing their money both ways.

Qantas considers offshore option Australian airline Qantas could transfer as many as 7,000 jobs out of its home country as it seeks to save costs, according to newspaper reports. Chief executive Geoff Dixon was quoted by The Australian newspaper as saying the carrier could no longer afford to remain "all-Australian". Unions criticised the possible move - which may affect cabin and maintenance staff - saying Qantas was profitable. More than 90% of the airline's staff are based in Australia. Qantas confirmed it was looking at whether it might recruit and source products overseas - potentially through joint ventures - but said it would continue to create jobs in Australia. Despite making a record Australian dollars 648m ($492m) profit last year, Qantas has argued that it needs to make considerable savings if it is to remain competitive. "We're going to have to get the lowest cost structure we can and that willmean sourcing things more and more from overseas," the newspaper quoted Qantas chief executive Geoff Dixon as saying. Early this year, Qantas increased the number of flight attendants based in London from 370 to 870. If Qantas were to follow the lead of other airlines moving staff 'offshore' 7,000 jobs could shift overseas, the newspaper reported. In a statement, Qantas said it was looking to build its operations overseas. However, it stressed this would not result in large scale redundancies in its home market, where most of its 35,000 staff are employed. "We are totally committed to continuing to grow jobs in Australia," Mr Dixon said. "We are, however, operating in a global market and there is no room for complacency simply because we are currently profitable and successful." Unions reacted angrily to the reported disclosure, arguing that Qantas was profitable and did not need to take such action. "We could understand if Qantas was a struggling airline about to go under," Michael Mijatov, international division secretary of the Flight Attendants Association, told Agence France Presse. "Qantas announced a record profit last year and is on course this year for an even greater profit so it is totally unnecessary." In an effort to meet the challenge posed by low cost carriers, Qantas sought a tie-up with Air New Zealand last year However, the deal was thrown out by the New Zealand High Court on competition grounds.

Call to overhaul UK state pension The UK pension system has been branded inadequate and too complex by a leading retirement think-tank. The Pensions Policy Institute (PPI) said replacing the state pension with a "citizen's pension" would help tackle inequality and complexity. The change would see pensions being calculated on length of residency in the UK rather than National Insurance (NI) contributions. Reform could reduce poverty by aiding people with broken employment records. The PPI added that once the state system was reformed the government should look at options to overhaul private and workplace pensions. The think tank's proposals were made in response to the recent publication of the Pensions Commission's initial report into UK retirement savings. According to the Pensions Commission's report 12 million working people are not saving enough for their retirement. As a result, living standards could fall for the next generation of UK pensioners. The report added that a combination of higher taxes, higher savings and/or a higher average retirement age was needed to solve the UK pension crisis.

Stallone evicted from Big Brother Jackie Stallone, mother of actor Sylvester, has become the first star to be evicted from Celebrity Big Brother. She and John McCririck faced the public vote on Friday - 67% of people voted to keep the racing pundit in the house. Stallone, 71, appeared not to have enjoyed her time in the house saying: "I'm a total wreck, I need a vacation, this was a nightmare". But she was pleased to have patched things up with actress Brigitte Nielsen, her former daughter-in-law. "That alone was worth $1m," she said. Stallone joined the Channel 4 show on Monday as a surprise for Nielsen. She was hot favourite to be evicted first, with odds of 1/4 to leave. But McCririck has made some enemies with his outspoken views about women. Ladbrokes spokesman Warren Lush said: "We may have underestimated the power of the anti-McCririck brigade, but it's so hard to call with him, there are people out there who either love him or hate him, there is no middle ground." The bookmakers have made former Happy Mondays dancer Bez favourite to win the show at 7/4, while Blazin' Squad singer Kenzie is second at 2/1. "Bez has wooed the viewers and looks the one to beat, he's kept his nose clean and doesn't take anything too seriously," Mr Lush said. Earlier on Friday 15 protesters from the Fathers 4 Justice campaign group were arrested after entering the Big Brother compound at 0300 GMT and throwing fireworks. Feminist icon Germaine Greer quit the show earlier in the week over what she called "bullying" tactics used by the programme's producers. The show is currently attracting an average audience of about 4.2 million viewers a night.

Abbas 'will not tolerate' attacks Palestinian leader Mahmoud Abbas has said he will not tolerate attacks such as last Friday's suicide bombing in the Israeli city of Tel Aviv. In an interview ahead of a meeting in London to discuss Palestinian reforms, Mr Abbas said such attacks were against Palestinian interests. The Palestinian Authority (PA) was exerting "a 100% effort" to end the violence, Mr Abbas added. The attack, which killed five, was the first of its kind since he took office. Mr Abbas confirmed Israel shared information with the PA in the hunt for the organisers of the attack. The Israeli government refuses to accept Syria's denials that it was implicated in the nightclub bombing. Israeli officials gave an intelligence briefing to foreign ambassadors on Monday, explaining Syria's alleged involvement. British foreign minister Jack Straw said there had been a "continuing stream" of information suggesting Palestinian militant groups were operating from within Syria. In an email interview in the British newspaper the Independent, Mr Abbas said: "We believe peace is possible now and we are ready to negotiate with Israel to reach a true and lasting peace based on justice and international legitimacy." He added: "We have an opportunity and it would be irresponsible if we, the Israelis, or the world allow it to slip away." Tuesday's meeting on Palestinian reform is being hosted by British Prime Minister Tony Blair. Also due to attend are US Secretary of State Condoleezza Rice, UN Secretary General Kofi Annan, World Bank officials and foreign ministers from 23 European and Arab countries. The conference was a "vital step" in renewing the peace process, Mr Straw said. "It's a high-level attendance, which reflects the sense of momentum and opportunity created by recent events," he added. A spokesman for Mr Blair said the Prime Minister expected the conference to discuss "a comprehensive, co-ordinated and, above all, practical work plan for both the Palestinian Authority and the international community". Israel will not attend, but is said to be closely watching the outcome.

Broadband in the UK growing fast High-speed net connections in the UK are proving more popular than ever. BT reports that more people signed up for broadband in the last three months than in any other quarter. The 600,000 connections take the total number of people in the UK signing up for broadband from BT to almost 3.3 million. Nationally more than 5 million browse the net via broadband. Britain now has among the highest number of broadband connections throughout the whole of Europe. According to figures gathered by industry watchdog, Ofcom, the growth means that the UK has now surpassed Germany in terms of broadband users per 100 people. The UK total of 5.3 million translates into 7.5 connections per 100 people, compared to 6.7 in Germany and 15.8 in the Netherlands. The numbers of people signing up to broadband include those that get their service direct from BT or via the many companies that re-sell BT lines under their own name. Part of the surge in people signing up was due to BT stretching the reach of ADSL - the UK's most widely used way of getting broadband - beyond 6km. Asymmetric Digital Subscriber Line technology lets ordinary copper phone lines support high data speeds. The standard speed is 512kbps, though faster connections are available. "This breakthrough led to a dramatic increase in orders as we were suddenly able to satisfy the pent-up demand that existed in many areas," said Paul Reynolds, chief executive of BT Wholesale which provides phone lines that other firms re-sell. BT Retail, which sells net services under its own name, also had a good quarter and provided about 30% of the new broadband customers. This was a slight increase on the previous three months. Despite the good news about growth in broadband, figures from telecommunications regulator Ofcom show that BT faces increasing competition, and dwindling influence, in other sectors. Local Loop Unbundling, (LLU), in which BT rivals install their hardware in exchanges and take over the line to a customer's home or office, is growing steadily. Cable & Wireless and NTL have announced that they are investing millions to start offering LLU services. By the end of September more than 4.2 million phone lines were using so-called Carrier Pre-Section (CPS) services, such as TalkTalk and One.Tel, which route phone calls across non-BT networks from a local exchange. There are now more than 300 different firms offering CPS services and the percentage of people using BT lines for voice calls has shrunk to 55.4%.

Brits return Keane to number one Brits success has helped return Keane's award-winning album Hopes and Fears back to the top of the UK album chart. The debut album, which took the best British album title at the Brits on Tuesday, moved up seven places from number eight to number one. Also capitalising on Brits success were the Scissor Sisters whose eponymous album moved three places to number two. U2's latest single Sometimes You Can't Make It On Your Own took the top spot in the singles chart, ahead of Elvis. The track, from their current album How To Dismantle An Atomic Bomb, pushed Eminem's Like Toy Soldiers from number one to number three. Elvis' Wooden Heart, which entered the chart at number two, is the sixth in a series of 18 reissues to mark the 70th anniversary of Presley's birth. There are currently six re-released Elvis' tracks occupying spots in the top 40 singles chart including Are You Lonesome Tonight at number 20, It's Now or Never at number 27 and Jailhouse Rock at number 37. Soldier, by Destiny's Child, Ti and Lil Wayne, debuted at number four, while Almost Here, the duet from former Westlife star Brian McFadden and Delta Goodrem, fell from number three to number five. There was more follow up to Brits success for Franz Ferdinand won best rock act and best British group last week. Their self-titled album moved from 13 to number four. Last week's number one album Tourist, by Athlete, fell to number three.

Five million Germans out of work Germany's unemployment figure rose above the psychologically important level of five million last month. On Wednesday, the German Federal Labour Agency said the jobless total had reached 5.037 million in January, which takes the jobless rate to 12.1%. "Yes, we have effectively more than five million people unemployed," a government minister said earlier on ZDF public television. Unemployment has not been this high in Germany since the 1930s. Changes to the way the statistics are compiled partly explain the jump of 572,900 in the numbers. But the figures are embarrassing for the government. "With the figures apparently the worst we've seen in the post-war period, these numbers are very charged politically," said Christian Jasperneite, an economist with MM Warburg. "They could well put an end to the recent renaissance we've seen by the SPD [the ruling Social Democrats] in the polls, and with state elections due in Schleswig-Holstein and North Rhine-Westphalia, they may have an adverse effect on the government's chances there." The opposition also made political capital from the figures. It said there are a further 1.5 million-2 million people on subsidised employment schemes who are, in fact, looking for real jobs. It added that government reforms, including unpopular benefit cuts, do not go far enough. Under the government's controversial "Hartz IV" reforms, which came into effect at the beginning of the year, both those on unemployment benefits and welfare support and those who are long-term unemployed are officially classified as looking for work. The bad winter weather also took its toll, as key sectors such as the construction sector laid off workers. Adjusted for the seasonal factors, the German jobless total rose by 227,000 in January from December.

Economy 'strong' in election year UK businesses are set to prosper during the next few months - but this could trigger more interest rate rises, according to a report. Optimism is at its highest since 1997 and business will reap the benefits of a continuing rise in public spending, say researchers at BDO Stoy Hayward. The Bank of England is expected to keep rates on hold this week - but they could go up later in the year. Rates are likely to rise after the anticipated general election in May. The BDO optimism index - a leading indicator of GDP growth two quarters ahead edged up in January to 102.5, from 102.2 in October. The rise is due, in part, to an increase in public spending and increased merger and acquisition activity. The only thing blighting business optimism this year will be uncertainties associated with the general election, BDO said. Its BDO's output index - which predicts GDP movements a quarter in advance - remained at 100.8 for January, implying GDP growth at 2.9% in the second quarter of 2005. However, the output index is being held back by recent interest rate rises, sterling's strength against the dollar and high oil prices, the group noted. Its inflation index, which has risen continuously over the last 8 months, climbed to 110.0 in January from 108.0 in October last year. "The UK is looking strong going into the general election, but businesses need to prepare themselves for a jolt ahead as the Bank of England reacts to growth and inflationary pressures," said Peter Hemington, partner at BDO Stoy Hayward. "Growth will probably slow by the end of 2005 and it is likely that we will see higher interest rates or a sharp drop in demand for products and services."

Britney attacks 'false tabloids' Pop star Britney Spears has attacked "false" and "desperate" US tabloid magazines, questioning their honesty after they reported she was pregnant. In a letter on her website, the singer named celebrity tabloids Us Weekly, In Touch and Star as the worst offenders. "Until you face what is going on in your life, I guess you'll remain a false tabloid," the 23-year-old wrote. Stories about the state of her marriage to Kevin Federline and rumours about a pregnancy have recently appeared. But the chart-topping singer's letter did not shed any further light on those stories. In February, Spears clashed with Us Weekly for publishing pictures of her honeymoon in Fiji without permission. The couple, who married in Los Angeles last September, claimed staff took photographs of them which were later sold. They said they allowed the pictures to be taken after they were assured they would only be used for a private scrapbook, which they later received as a souvenir. Us magazine was unrepentant about their decision to publish, saying: "Britney should start her own magazine if she'd like to dictate her own coverage." "Coming from a celebrity who sold pictures of both her wedding and her stepdaughter, it's unlikely the issue here is privacy," they added. Spears claimed that other magazines were approached with the pictures but chose to contact her instead.

Blair Labour's longest-serving PM Tony Blair has become the Labour Party's longest-serving prime minister. The 51-year-old premier has marked his 2,838th day in the post, overtaking the combined length of Harold Wilson's two terms during the 1960s and 1970s. If Mr Blair wins the next election and fulfils his promise to serve a full third term, he will surpass Margaret Thatcher's 11 years by the end of 2008. In 1997, Mr Blair became the youngest premier of the 20th century, when he came to power at the age of 43. The last prime minister to be installed at a younger age was Lord Liverpool, who was a year his junior in 1812. Mr Blair's other political firsts include becoming the first Labour leader to win two successive full terms in power after the 2001 Labour landslide. And the birth of the Blairs' fourth child, Leo, on 20 May, 2000, was the first child born to a serving prime minister in more than 150 years. The last "Downing Street dad" was Lord John Russell in 1848. Labour won a huge majority of 167 over the Conservatives in 2001, but Mr Blair has since been criticised by many in his own party. The war in Iraq and reforms of the health service and education system have provoked dissent from backbenchers. Gordon Brown, chancellor of the exchequer under Mr Blair, became Britain's longest-serving chancellor of modern times in 2004. Former Labour leader Lord Kinnock said the chancellor would be best placed to take over from Mr Blair. When asked about the future leadership of the party, he told ITV Wales' Waterfront programme: "That contest is a long way away and it will occur only when the Prime Minister, Tony Blair, decides he's subscribed all he can and then wants to go. "I think that the main contender will be Gordon Brown, who is a man of virtually unmatched capability and now great experience." Both Mr Brown and Mr Blair rose to prominence when Lord Kinnock led Labour between 1983 and 1992.

Yukos heading back to US courts Russian oil and gas company Yukos is due in a US court on Thursday as it continues to fight for its survival. The firm is in the process of being broken up by Russian authorities in order to pay a $27bn (£14bn) tax bill. Yukos filed for bankruptcy in the US, hoping to use international business law to halt the forced sale of its key oil production unit, Yuganskneftegas. The unit was however sold for $9.4bn to state oil firm Rosneft but only after the state auction had been disrupted. Yukos lawyers now say the auction violated US bankruptcy law. The company and its main shareholders have vowed to go after any company that buys its assets, using all and every legal means. The company wants damages of $20bn, claiming Yuganskneftegas was sold at less than market value. Judge Letitia Clark will hear different motions, including one from Deutsche Bank to throw out the Chapter 11 bankruptcy filing. The German lender is one of six banks that were barred from providing financing to Gazprom, the Russian state-owned company that was expected to win the auction for Yuganskneftegas. Deutsche Bank, which is also an advisor to Gazprom, has called on the US court to overturn its decision to provide Yukos with bankruptcy protection. Lifting the injunction would remove the uncertainty that surrounds the court case and clarify Deutsche Bank's business position, analysts said. Analysts are not optimistic about Yukos' chances in court. Russian President Vladimir Putin and the country's legal authorities have repeatedly said that the US has no jurisdiction over Yukos and its legal wranglings. On top of that, the firm only has limited assets in the US. Yukos has won small victories, however, and is bullish about its chances in court. "Do we have an ability to influence what happens? We think we do," said Mike Lake, a Yukos spokesman. "The litigation risks are real," said Credit Suisse First Boston analyst Vadim Mitroshin The dispute with the Russian authorities is partly driven by President Putin's clampdown on the political ambitions of ex-Yukos boss Mikhail Khodorkovsky. Mr Khodorkovsky is in jail on charges of fraud and tax evasion.

Honour for UK games maker Leading British computer games maker Peter Molyneux has been made an OBE in the New Year Honours list. The head of Surrey's Lionhead Studios was granted the honour for services to the computer games industry. Mr Molyneux has been behind many of the ground-breaking games of the last 15 years such as Populous, Theme Park, Dungeon Keeper and Black and White. He is widely credited with helping to create and popularise the so-called god-game genre. Speaking to the BBC News website Mr Molyneux said receiving the honour was something of a surprise. It's come completely out of the blue," he said, "I never would have guessed that I'd have that kind of honour." He said he was surprised as much because, not too long ago, many people thought computer gaming was a fad. "It was thought to be like skateboarding," he said, "a craze that everyone thought would go away." Now, he said, the gaming world rivals the movie industry for sales and cultural influence. "Britain plays a big part in it," he said. "It's one of the founding nations that made the industry what it is." Mr Molyneux has been a pivotal figure in the computer games industry for almost 20 years. His career started at Bullfrog Studios which in 1987 produced Populous one of the first God-games. The title gave players control over the lives a small population of computerised people. Mr Molyneux said that his involvement with the games industry started almost by accident as back in the early days game making was more a hobby than a career. "I thought everyone would treat Populous as weird," he said, "but it became a huge international success." He left Bullfrog in 1997 to set up Lionhead Studios which was behind the ambitous and widely acclaimed game Black & White. One of the next titles to come from Lionhead puts players in charge of a movie studio and tasks them with producing and directing a hit film. The veteran game maker says he has one problem still to solve. "Being an absolute geek I've got no idea what I'm going to wear when I go and pick it up," he said.

School sport 'is back', says PM Tony Blair has promised that "sport is back" as a priority for schools. The prime minister launched a £500m initiative to allow school sports clubs in England to provide up to three hours of extra activity a week by 2010. "It's an important part of education and it's an important part of health," Mr Blair said. But the Conservatives say government proposals - which include two hours' PE within school for 75% of pupils by 2006 - are unrealistic. The latest move is aimed at encouraging more diversity in sport, with activities such as yoga and Tai Chi being options. Launching the initiative, Mr Blair completed an agility course and shot basketball hoops with students from the all-girl Waverley Sports College in Southwark, south London. He said: "You've got to bring back school sport. It's got to be done differently than it was 30 or 40 years ago. It's still very, very important." Earlier, Education Secretary Charles Clarke told BBC News there were at least three areas which needed "a coherent framework" and "dedicated funding". These were training for PE teachers, establishing more specialist schools and the development of partnerships for activities such as inter-school competitions. He added the government had originally pledged "for every pupil to get at least two hours of high-quality physical education" a week. The proportion was currently at 62%, and the government was hoping this would rise to 85% by 2008 and 100% by 2010. The money for the initiative will come from a new £500m fund. The £500m move will also increase the number of specialist sport colleges from 350 to 400. But the Conservatives warned of rising obesity levels and said that since only a third of children do two hours of sport a week currently, the government is promising something it cannot guarantee. Shadow spokesman for sport Hugh Robertson said: "I suspect the correct way to tackle it is to look at the other end of the spectrum and try to enable the clubs - which is where the real passion for sport exists - to deliver the school sport offer." He said more emphasis should be put on traditional sports, saying that an "anti-competitive sport agenda" had been pursued in recent years. Martin Ward, of the Secondary Heads Association, said members did not like "ring-fenced funds" and that it should be up to the schools themselves to decide how to spend their money.

Turkey turns on the economic charm Three years after a gruelling economic crisis, Turkey has dressed its economy to impress. As part of a charm offensive - ahead of 17 December, when the European Union will decide whether to start entry talks - Turkey's economic leaders have been banging the drum to draw attention to recent achievements. The economy is growing fast, they insist. Education levels among its young and large population are rising. Unemployment levels, in percentage terms, are heading fast towards single digits. Inflation is under control. A new law to govern its turbulent banking system is on the cards. The tourism industry is booming and revenues from visitors should more than double to $21bn (£10.8bn) in three years. Moreover, government spending is set to be frozen and a burdensome social security deficit is being tackled. Income and corporate taxes will be cut next year in order to attract $15bn of foreign investment over the next three years. A loan restructuring deal with the International Monetary Fund (IMF) is pretty much in the can. And following recent macroeconomic restructuring efforts, its currency is floating freely and its central bank is independent. The point of all this has been to convince Europe's decision makers that rather than being a phenomenally costly exercise for the EU, allowing Turkey in would in fact bring masses of economic benefits. "The cake will be bigger for everybody," said Deputy Prime Minister Abdullatif Sener earlier this month. "Turkey will not be a burden for the EU budget." If admitted into the EU, Turkey would contribute almost 6bn euros ($8bn; £6bn) to its budget by 2014, according to a recent impact study by the country's State Planning Organisation. As Turkey's gross domestic output (GDP) is set to grow by 6% per year on average, its contribution would rise from less than 5bn euros in 2014 to almost 9bn euros by 2020. Turkey could also help alleviate a labour shortage in "Old Europe" once its population comes of age. By 2014, one in four Turks - or about 18 million people - will be aged 14 or less. "A literate and qualified Turkish population," insisted Mr Sener, "will make a positive impact on the EU." This runs contrary to the popular view that Turkey is getting ready to dig deep into EU taxpayers' wallets. However, Turkey's assertions are confirmed by Brussels' own impact studies, which indeed say that Turkish membership would be good news for the EU economy. But only over time. Costs are projected to be vast during the early years of Turkey's membership, with subsidies alone estimated to exceed 16.5bn euros and, according to some predictions, balloon to 33.5bn euros. This would include vast agricultural subsidies and regional aid, though such payments should decline as the country's farm sector, which currently employs one in three Turks, would employ just one in five by 2020. Such high initial expenses would be coupled with risks that the benefits flagged up by Turkey's government would never be delivered, say those who feel the Turkish project should be shunned. Some fear that rather than providing an educated, sophisticated labour force for Europe at large, the people who will leave Turkey to seek work abroad will be poor, uneducated - and plentiful. More recently, less palatable concerns - at least in liberal European circles - have been voiced, with senior EU or member state officials talking darkly of a "river of Islam", an "oriental" culture and a threat to Europe's "cultural richness". Of course, many opponents are politically motivated - their views ranging from xenophobic prejudices about the country's Muslim traditions to well-documented concerns about the government's human rights record. Yet their economic arguments should not be dismissed out of hand. Critics insist that much of the optimism about Turkey's economic roadmap has been over-egged - an argument amplified by a 134% rise in the country's current account deficit to $10.7bn during the first 10 months of this year. The country's massive debt - which includes $23bn owed to the IMF and billions borrowed via the international bond markets - also remains a major obstacle to its ambition of joining the EU. "In the new member states of the European Union, gross public debt is typically about 40% of gross domestic product," says Reza Moghadam, assistant director of the IMF's European Department. "At about 80% of GDP, Turkey's gross debt is double that figure." Turkey's debts have largely arisen from its efforts to push through banking reform after a run on the banks in 2001 caused the country's devastating recession. "There is no question that although Turkey is doing much better than in the past, it remains quite vulnerable," says Michael Deppler, director of the IMF's European Department. "Its debt is far too high for an emerging economy." A key factor for EU decision makers should be whether or not Turkey has met its economic criteria. But economics is not a science. And although the state of Turkey's economy is important, as is its pace of reform, the final decision on 17 December will be taken by politicians who will, of course, be guided by their political instincts.

Peer-to-peer nets 'here to stay' Peer-to-peer (P2P) networks are here to stay, and are on the verge of being exploited by commercial media firms, says a panel of industry experts. Once several high-profile legal cases against file-sharers are resolved this year, firms will be very keen to try and make money from P2P technology. The expert panel probed the future of P2P at the Consumer Electronics Show in Las Vegas earlier in January. The first convictions for P2P piracy were handed out in the US in January. William Trowbridge and Michael Chicoine pleaded guilty to charges that they infringed copyright by illegally sharing music, movies and software. Since the first successful file-sharing network Napster was forced to close down, the entertainment industry has been nervous and critical of P2P technology, blaming it for falling sales and piracy. But that is going to change very soon, according to the panel. The music and film industries have started some big legal cases against owners of legitimate P2P networks - which are not illegal in themselves - and of individuals accused of distributing pirated content over networks. But they have slowly realised that P2P is a good way to distribute content, said Travis Kalanick, founder and chairman of P2P network Red Swoosh, and soon they are all going to want a slice of it. They are just waiting to come up with "business models" that work for them, which includes digital rights management and copy-protection standards. But, until the legal actions are resolved, experimentation with P2P cannot not happen, said Michael Weiss, president of StreamCast Networks. Remembering the furore around VCRs when they first came out, Mr Weiss said: "Old media always tries to stop new media. "When they can't stop it, they try to control it. Then they figure out how to make money and they always make a lot of money." Once the courts decided that the VCR in itself was not an illegal technology, the film studios turned it into an extremely lucrative business. In August 2004, the San Francisco-based US Court of Appeals ruled in favour of Grokster and StreamCast, two file-sharing networks. The court said they were essentially in the same position that Sony was in the 1980s VCR battle, and said that the networks themselves could not be deemed as illegal. P2P networks usually do not rely on dedicated servers for the transfer of files. Instead it uses direct connections between computers - or clients. There are now many different types of P2P systems than work in different ways. P2P nets can be used to share any kind of file, like photos, free software, licensed music and any other digital content. The BBC has already decided to embrace the technology. It aims to offer most of its own programmes for download this year and it will use P2P technology to distribute them. The files would be locked seven days after a programme aired making rights management easier to control. But the technology is still demonised and misunderstood by many. The global entertainment industry says more than 2.6 billion copyrighted music files are downloaded every month, and about half a million films are downloaded a day. Legal music download services, like Apple iTunes, Napster, have rushed into the music marketplace to try and lure file-sharers away from free content. Sales of legally-downloaded songs grew tenfold in 2004, with 200 million tracks bought online in the US and Europe in 12 months, the IFPI reported this week. But such download services are very different from P2P networks, not least because of the financial aspect. There are several money-spinning models that could turn P2P into a golden egg for commercial entertainment companies. Paid-for-pass-along, in which firms receive money each time a file is shared, along with various DRM solutions and advertiser-based options are all being considered. "We see there are going to be different models for commoditising P2P," said Marc Morgenstern, vice president of anti-piracy firm Overpeer. "Consumers are hungry for it and we will discover new models together," agreed Mr Morgenstern. But many net users will continue to ignore the entertainment industry's potential controlling grip on content and P2P technology by continuing to use it for their own creations. Unsigned bands, for example, use P2P networks to distribute their music effectively, which also draws the attention of record companies looking for new artists to sign. "Increasingly, what you are seeing on P2P is consumer-created content," said Derek Broes, from Microsoft. "They will probably pay an increasing role in helping P2P spread," he said. Looking into P2P's future, file sharing is just the beginning for P2P networks, as far as Mr Broes is concerned. "Once some of these issues are resolved, you are going to see aggressive movement to protect content, but also in ways that are unimaginable now," he said. "File-sharing is the tip of the iceberg."

Windows worm travels with Tetris Users are being warned about a Windows virus that poses as the hugely popular Tetris game. The Cellery worm installs a playable version of the classic falling blocks game on PCs that it has infected. While users play the game, the worm spends its time using the machine to search for new victims to infect on nearby networks. The risk of infection by Cellery is thought to be very low as few copies of the worm have been found in the wild. The Cellery worm does not spread via e-mail like many other viruses. Instead it browses computer networks for PCs that have not shut off all the insecure ways they connect to other machines. When it infects a machine, Cellery installs a version of Tetris that users can play. As the game starts up the worm also starts a music file to accompany it. At the same time the virus starts scouring networks for other vulnerable machines. The virus does no damage to machines but heavily infected networks could slow down as scanning traffic builds. Productivity may suffer too if users spend time playing Tetris. PCs running Windows 95, 98, ME, NT, 2000, and XP could be vulnerable to the worm. "If your company has a culture of allowing games to be played in the office, your staff may believe this is simply a new game that has been installed - rather than something that should cause concern," said Graham Cluley, spokesman for anti-virus firm Sophos. So far the number of people infected by Cellery is thought to be very small and the risks of further infection is very low. Sophos urged users and companies to update their anti-virus software to keep themselves protected.

Australia rates at four year high Australia is raising its benchmark interest rate to its highest level in four years despite signs of a slowdown in the country's economy. The Reserve Bank of Australia lifted interest rates 0.25% to 5.5%, their first upwards move in more than a year. However, shortly after the Bank made its decision, new figures showed a fall in economic growth in the last quarter. The Bank said it had acted to curb inflation but the move was criticised by some analysts. The rate hike was the first since December 2003 and had been well-flagged in advance. However, opposition parties and some analysts said the move was ill-timed given data showing the Australian economy grew just 0.1% between October and December and 1.5% on an annual basis. The figures, representing a decline from the 0.2% growth in GDP seen between July and September, were below market expectations. Consumer spending remains strong, however, and the Bank is concerned about growing inflationary pressures. "Over recent months it has become increasingly clear that remaining spare capacity in the labour and goods markets is becoming rather limited," said Ian Macfarlane, Governor of the Reserve Bank. At 2.6%, inflation remains within the Bank's 2-3% target range. However, exports declined in the second half of 2004, fuelling a rise in the country's current account deficit - the difference in the value of imports compared to exports - to a record Australian dollar 29.4bn. The Australian government said the economy remained strong with unemployment at a near 30 year low. "The economy has been strong and it is properly moderating but it doesn't look to me like it's slowing in any unreasonable way," said Treasurer Peter Costello. Stock markets had factored in the likelihood of a rate rise but analysts still expressed concern about the strength of the economy. "That 1.5% annual growth rate is the lowest we have seen since the post-election slump we saw back in 2000-1," said Michael Blythe, chief economist at the Commonwealth Bank of Australia. "This suggests the economy really did slow very sharply in the second half of 2004."

Sluggish economy hits German jobs The number of people out of work in Europe's largest economy has risen for the tenth straight month as growth remains stubbornly slow. German unemployment rose 7,000 in November to 4.464 million people, or 10.8% of the workforce. The seasonally adjusted rise showed a smaller rise than expected, as government measures to encourage job creation began to take effect. But officials said stagnant growth was still stifling the job market. "There are clear signs of a revival in domestic demand," said Frank-Juergen Weise, head of the Federal Labour Agency, in a statement. "But growth of 0.1%... in the third quarter is still insufficient to deliver positive momentum to the labour market." High oil prices and the soaring euro - which damages the competitiveness of exporters - were also having a negative effect, he said. The brunt of the unemployment is still being felt in the eastern part of Germany, where the rate is 18.8%. With unemployment stuck above 4 million for years, the government of Chancellor Gerhard Schroeder has put job creation at the top of the agenda. A controversial package of measures to shake up incentives to get back to work, paid for by cutting some cherished benefits, has sparked anger among some German workers. Strikes in a number of industries, notably among the country's iconic carmakers, have demonstrated the displeasure - as well as fears about further job losses as outsourcing takes hold. Among the new initiatives are the so-called "one-euro jobs" which top up unemployment benefit. The scheme's formal launch is January, but hirings for these positions are already taking place and affecting the unemployment statistics, economists said. "The deterioration of the labour market does not come as a surprise," said Isabelle Kronawitter at Hypovereinsbank. "Job creation measures probably prevented a stronger increase in the seasonally adjusted numbers."

Radcliffe eyes hard line on drugs Paula Radcliffe has called for all athletes found guilty on drugs charges to be treated as criminals. The marathon world record holder believes more needs to be done to rid athletics of the "suspicions and innuendoes" which greet any fast time. "Doping in sport is a criminal offence and should be treated as such," the 30-year-old told the Sunday Times. "It not only cheats other athletes but also cheats promoters, sponsors and the general public." Radcliffe's comments come at a time when several American sports stars are under suspicion of steroid use. "Being caught in possession of a performance-enhancing drugs should carry a penalty," she added. "The current system does not detect many of the substances being abused by athletes. "This means that often athletes do not know if they are competing on a level playing field, if their hard work and sacrifice is being trumped by an easier scientific route. "Often, when an athlete puts in a good performance, they are subjected to suspicions and innuendoes instead of praise. "Having been on the receiving end of accusations like this I can testify as to how much this hurts."

Deutsche Boerse boosts dividend Deutsche Boerse, the German stock exchange that is trying to buy its London rival, has said it will boost its 2004 dividend payment by 27%. Analysts said that the move is aimed at winning over investors opposed to its bid for the London Stock Exchange. Critics of the takeover have complained that the money could be better used by returning cash to shareholders. Deutsche Boerse also said profit in the three months to 31 December was 120.7m euros ($158.8m; £83.3m). Sales climbed to 364.4m euros, lifting revenue for the year to a record 1.45bn euros. Frankfurt-based Deutsche Boerse has offered £1.3bn ($2.48bn; 1.88bn euros) for the London Stock Exchange. Rival pan-European bourse Euronext is working also on a bid. Late on Monday, Deutsche Boerse said it would lift its 2004 dividend payment to 70 euro cents (£0.48; $0.98) from 55 euro cents a year earlier. "There is a whiff of a sweetener in there," Anais Faraj, an analyst at Nomura told the BBC's World Business Report. "Most of the disgruntled shareholders of Deutsche Boerse are complaining that the money that is being used for the bid could be better placed in their hands, paid out in dividends," Mr Faraj continued. Deutsche Boerse is "trying to buy them off in a sense", he said.

Games help you 'learn and play' 'God games' in which players must control virtual people and societies could be educational, says research. A US researcher has suggested that games such as The Sims could be a good way to teach languages. Ravi Purushotma believes that the world of The Sims can do a better job of teaching vocabulary and grammar than traditional methods. The inherent fun of game playing could help to make learning languages much less of a chore, said Mr Purushotma. There must be few parents or teachers that do not worry that the lure of a video game on a computer or console is hard to resist by children that really should be doing their homework. But instead of fearing computer games, Ravi Purushotma believes that educationalists, particularly language teachers should embrace games. "One goal would be to break what I believe to be the false assumption that learning and play are inherently oppositional," he said. He believes that the "phenomenal ability" of games such as The Sims and others to capture the interest of adolescent audiences is ripe for exploitation. The hard part of learning any language, said Mr Purushotma, were the basic parts of learning what different words refer to and how they are used to build up sentences. Boring lessons drumming vocabulary into pupils couched in terms they do not understand has made many languages far harder to learn than they should be. "The way we often teach foreign languages right now is somewhat akin to learning to ride a bike by formally studying gravity," he said. By contrast, said Mr Purushotma, learning via something like The Sims may mean students do not feel like they are studying at all. This was because The Sims does not rely solely on words to get information across to players. Instead the actions of its computer controlled people and how they interact with their world often makes clear what is going on. The incidental information about what a Sim was doing could reinforce what a player or student was supposed to be learning, said Mr Purushotma. By contrast many language lessons try to impart information about a tongue with little context. For instance, he said, in a version of The Sims adapted to teach German, if a player misunderstood what was meant by the word "energie" the actions of a tired Sim, stumbling then falling asleep, would illustrate the meaning. If necessary detailed textual information could be called upon to aid players' or students' understanding. One of the drawbacks of The Sims, said Mr Purushotma, was the lack of spoken language to help people brush up on pronunciation. However, online versions of The Sims, in which people have to move in, meet the neighbours and get to know the local town, could be adapted to help this. Although not wishing to claim that he is the first to suggest using a game can help people learn, Mr Purushotma believes that educationalists have missed the potential they have to help. Getting a simulated person to perform everyday activities in a make-believe world and having them described in a foreign language could be a powerful learning aid, he believes. Before now, he said, educational software titles suffer by comparison with the slick graphics and rich worlds found in games. But, he said, using pre-prepared game worlds such as The Sims has never been easier because tools have been made by its creators and fans that make it easy to modify almost any part of the game. This could make it easy for teachers to adapt parts of the game for their own lessons. "I'm hoping now to re-create a well-polished German learning mod for the sequel by this summer," he told the BBC News website. "I'm encouraged to hear that others are thinking of experimenting with Japanese and Spanish." Earlier work with a colleague on using Civilisation III to teach students about history showed that it could be a powerful way to get them to realise that solving a society's problems can not always come from making a single change. A report on the experiment said: "Students began asking historical and geographical questions in the context of game play, using geography and history as tools for their game, and drawing inferences about social phenomena based on their play." Mr Purushotma's ideas were aired in an article for the journal Language Learning and Technology.

Protect whistleblowers, TUC says The government should change the law to give more protection to employees who raise health and safety concerns about their workplaces, the TUC has said. It said data from employment tribunals suggested 1,500 "safety whistleblowers" had lost their jobs since 1999. Some firms found it cheaper to sack a worker than to improve buildings or change working conditions, it said. The Health and Safety Executive said it was trying to get workers more involved in helping to make workplaces safer. The TUC figures were drawn from unfair dismissal cases at tribunals were health and safety were the main issue. Safety representatives were often ignored when raising concerns because there was no legal duty to respond, claimed the union organisation. General secretary Brendan Barber said: "It shouldn't be a firing offence to object to unsafe work. "Workers should not be placed in the situation where they are forced to choose between risking their job or risking their personal health and safety." Mr Barber, who said the "problem is far worse than official statistics show", called for a legal system that "protects safety whistleblowers". He added that workers who are not in a union, as well as casual and migrant workers, "stand little chance of redress." Rory O' Neill, editor of union-backed Hazards magazine, which conducted the research, said: "Giving union safety reps more rights in more workplaces is the ultimate win-win. "Death and injuries at work increased last year, for the second time since the turn of the century. "It would be a fatal mistake not to take full advantage of the union safety effect." The TUC has called on the government to appoint "roving" safety reps and to increase spending on health and safety work inspections. The Health and Safety Executive had said that it had launched an initiative to make factories and offices safer, with more worker involvement.

Blair hails Turkey-EU talks deal Tony Blair has hailed a deal bringing Turkey a step closer to EU membership as important for the world's future "peace and prosperity". Mr Blair has been a leading advocate of Turkish membership despite controversy surrounding the idea. Leaving a Brussels summit Mr Blair said "the fact Turkey is a Muslim country does not mean it should be barred". The deal to open formal talks with Ankara came despite an EU demand for Turkey to recognise Cyprus. It was agreed the issue can be tackled at a later date but Turkish premier Recep Erdogan had to accept negotiations did not guarantee his country full EU membership. If it joins, Turkey may have to accept restrictions to limit migration by its citizens. Mr Blair said having Turkey in the EU was of "importance to the future peace and prosperity of my country, Britain, and the wider world". "We are stating a fundamental principle that the fact Turkey is a Muslim country does not mean it should be barred from Europe. "On the contrary, if it fulfils the same principles of human rights, then Muslim and Christian can work together." Under the agreement, Turkey must issue a written statement promising to sign an accord effectively recognising the Greek Cypriot government, but gives Turkey more time to sell the idea to its people. The internationally recognised southern part of Cyprus is an EU member, but Turkey, which occupies northern Cyprus, had previously insisted it would not bow to demands to recognise the country, calling the issue a "red line". It could take up to 15 years before Turkey is able to join, and entry cannot be guaranteed. The EU has also announced that it will start accession talks with Croatia in April 2005. However, talks will begin only if the country co-operates fully with the UN war crimes tribunal for the former Yugoslavia.

Brown targets OAPs and homebuyers Gordon Brown has doubled the level at which house buyers pay stamp duty to £120,000 as he put the economy at the heart of Labour's election campaign. The chancellor also unveiled a one-off £200 council tax refund for pensioners and a rise in child tax credit. Mr Brown put 1p a pint on beer, 4p on a bottle of wine and 7p on 20 cigarettes but froze petrol duty until September. The Tories called it a "vote now, pay later" Budget. The Lib Dems branded it a "sticking plaster" for the election. Tory leader Michael Howard predicted the Budget would do nothing to help Labour's "faltering" election campaign. "This government and this chancellor have run out of solutions to the problems Britain faces," Mr Howard told MPs. "Their only answer is to tax, to spend and to waste - to get people to vote now and pay later." He ended his response with an election challenge to Labour, saying "bring it on". Liberal Democrat leader Charles Kennedy attacked Mr Brown for failing to mention the environment and for his record on social justice. "How can it be right in Britain today that the poorest 20% pay more in tax, as a proportion of their income, than the richest 20%?" he asked. Mr Kennedy criticised Mr Brown for failing to mention the "ticking bomb" of council tax revaluation, saying it was "high time" the system was replaced by a "local tax based on the ability to pay". During his 49 minute speech Mr Brown told MPs he had defied the pundits by hitting his growth target of 3.1% for 2004. He said his Budget struck a balance "between tax cuts that are affordable, investments that are essential and stability that is paramount". He rejected across-the-board tax cuts in favour of targeted help for families. The child tax credit will rise in line with earnings, giving families an extra £5 a week. In contrast, the personal income tax allowance will rise only in line with inflation from £4,745 to £4,895 next month. Mr Brown told MPs child benefit would rise to a maximum of £63 a week for the first child and £111 for two children. Despite his giveaways, Budget documents show Mr Brown clawed back £265m through a clampdown on tax avoidance and increased revenue from a windfall tax on oil companies. He also scrapped stamp duty relief for commercial property in disadvantaged areas - a measure brought in just over three years ago. BBC political editor Andrew Marr suggested the sweeteners were not big enough to have a transforming effect on voters. But trust in Mr Brown's economic stewardship would be a central election issue, he said. Mr Brown also unveiled plans for a memorial to the Queen Mother, funded through a special coin to celebrate the Queen's 80th birthday. Other measures include equal tax status for same-sex couples and a deal with the Council of Mortgage Lenders to boost low cost home ownership. The level where people start paying inheritance tax will also rise from £263,000 to £275,000 from April. Mr Brown said he had met his financial "golden rule" with a £6bn surplus and he said public borrowing would continue to fall over the next five years. The economy had grown for 50 consecutive quarters, he said, and was forecast to continue doing so over the next year, with a forecast of 3% to 3.5% in 2005 and 2.5% to 3% in 2006. The first £2bn of value-for-money savings identified in the Gershon Review have been achieved, the chancellor said. Some 12,500 civil servant posts have been axed, and 7,800 relocated out of the south east of England, he added. SNP leader Alex Salmond said Mr Brown had failed the "tartan test" as there were no measures to boost the Scottish economy. Simon Thomas, of Plaid Cymru, called it a budget for Middle England. UK Independence Party leader Roger Knapman attacked the plans for pensioners saying they needed "more money and the dignity of being allowed to spend it how they want," not "free bus rides". The Green Party said the Budget was a "wasted opportunity" for environmental protection, adding: "Brown obviously has an eye on the coming election, and has taken his eye off the needs of the planet."

Hewitt falls to Dent in Adelaide Lleyton Hewitt suffered a shock defeat to Taylor Dent in the quarter-finals of the Australian Hardcourt Championships in Adelaide on Friday. The top seed was a strong favourite for the title but went down 7-6 (7-4) 6-3 to the American. Dent will face Juan Ignacio Chela next after the fourth seed was too strong for Jurgen Melzer. Olivier Rochus beat third seed Nicolas Kiefer 6-7 (4-7) 7-6 (8-6) 7-5 and will take on second seed Joachim Johansson. The Swede reached the last four by beating compatriot Thomas Enqvist 6-3 4-6 6-1. "I felt like I was striking the ball much better," said Johansson. "I felt like I had a lot of break chances, I didn't take care of them all, but I broke him four times and he only broke me once. "I felt that was the key to get up in the set early." Hewitt played down his defeat and insisted he is focused solely on the Australian Open, which starts on 17 January. "When you've been number one in the world for a couple of years and won a couple of slams, you look at the big picture and what motivates you," said Hewitt. "That's the Grand Slams and Melbourne's as big for me as any of the four. Even if I don't win Sydney next week it's no big deal."

Web photo storage market hots up An increasing number of firms are offering web storage for people with digital photo collections. Digital cameras were the hot gadget of Christmas 2004 and worldwide sales of the cameras totalled $24bn last year. Many people's hard drives are bulging with photos and services which allow them to store and share their pictures online are becoming popular. Search firms such as Google are also offering more complex tools for managing personal photo libraries. Photo giants such as Kodak offer website storage which manages photo collections, lets users edit pictures online and provides print-ordering services. Some services, such as Kodak's Ofoto and Snapfish, offer unlimited storage space but they do require users to buy some prints online. Other sites, such as Pixagogo, charge a monthly fee. Marcus Hawkins, editor of Digital Camera magazine, said: "As file sizes of pictures increase, storage becomes a problem. "People are using their hard drives, backing up on CD and DVD and now they are using online storage solutions. "They are a place to store pictures, to share their pictures with families and friends and they can print out their photos." While many of the services are aimed at the amateur and casual digital photographer, other websites are geared up for enthusiasts who want to share tips and information. Photosig is an online community of photographers who can critique each other's work. On Tuesday, Google released free software for organising and finding digital photos stored on a computer's hard drive. The tool, called Picasa, automatically detects photos as they are added to a PC - whether sent via e-mail or transferred from a digital camera. The software includes tools for restoring colour and removing red eye, as well as sharpening images. Photos can then be uploaded to sites such as Ofoto. Many people use the sites to edit and improve their favourite photographs before ordering prints. Mr Hawkins added: "The growth area is that you can order your prints online. Friends and family can also access pictures you want them to see and they can print them out too. "Rather than just a place to dump your pictures, it's about sharing them." The vast majority of pictures remain on a PC's hard drive, which is why search tools, such as those offered by Google, become increasingly important. But some historians and archivists are concerned that the need for perfect pictures will mean that those poor quality prints which offered a tantilising glimpse of the past may disappear forever. "It's one thing taking pictures, it's another finding them," said Mr Hawkins. "But this is the same problem that has always existed - how many of us have photos in wallets tucked away somewhere?"

Wi-fi web reaches farmers in Peru A network of community computer centres, linked by wireless technology, is providing a helping hand for poor farmers in Peru. The pilot scheme in the Huaral Valley, 80 kilometres north of the capital Lima, aims to offer the 6,000-strong community up-to-date information on agricultural market prices and trends. The Agricultural Information Project for Farmers of the Chancay-Huaral Valley also provides vital links between local organisations in charge of water irrigation, enabling them to coordinate their actions. More than 13,000 rural inhabitants, as well as 18,000 students in the region, will also benefit from the telecoms infrastructure. The 14 telecentres uses only free open source software and affordable computer equipment. The network has been three years in the making and was officially inaugurated in September. The non-government organisation, Cepes (Peruvian Centre for Social Studies) led the $200,000 project, also backed by local institutions, the Education and Agriculture ministries, and European development organisations. "The plan includes training on computers and internet skills for both operators and users of the system," said Carlos Saldarriaga, technical coordinator at Cepes. Farmers are also taking extra lessons on how to apply the new information to make the most of their plots of land. The Board of Irrigation Users which runs the computer centres, aims to make the network self-sustainable within three years, through the cash generated by using the telecentres as internet cafes. One of the key elements of the project is the Agricultural Information System, with its flagship huaral.org website. There, farmers can find the prices for local produce, as well as information on topics ranging from plague prevention to the latest farming techniques. The system also helps the inhabitants of the Chancay-Huaral Valley to organise their vital irrigation systems. "Water is the main element that unites them all. It is a precious element in Peru's coastal areas, because it is so scarce, and therefore it is necessary to have proper irrigation systems to make the most of it," Mr Saldarriaga told the BBC News website. The information network also allows farmers to look beyond their own region, and share experiences with other colleagues from the rest of Peru and even around the world. Cepes says the involvement of the farmers has been key in the project's success. "Throughout the last three years, the people have provided a vital thrust to the project; they feel it belongs to them," said Mr Saldarriaga. The community training sessions, attended by an equal number of men and women, have been the perfect showcase for their enthusiasm. "We have had an excellent response, mainly from young people. But we have also had a great feedback when we trained 40 or 50-year old women, who were seeing a computer for the first time in their lives." So far, the Huaral programme promoters say the experience has been very positive, and are already planning on spreading the model among other farmers' organisations in Peru. "This is a pilot project, and we have been very keen on its cloning potential in other places," underlined Mr Saldarriaga. The Cepes researcher recalls what happened in Cuyo, a 50-family community with no electricity, during the construction of the local telecentre site. There it was necessary to build a mini-hydraulic dam in order to generate 2kW worth of power for the computers, the communications equipment and the cabin lights. "It was already dark when the technicians realised they didn't have any light bulbs to test the generator, so they turned up to the local store to buy light bulbs," recalls Carlos Saldarriaga. "The logical answer was 'we don't sell any', so they had to wait until the next morning to do the testing." Now, with the wireless network, Cuyo as well as the other communities is no longer isolated.

High fuel costs hit US airlines Two of the largest airlines in the US - American and Southwest - have blamed record fuel prices for their disappointing quarterly results. American Airlines' parent AMR reported a loss of $387m (£206m) for the fourth quarter of 2004, against a $111m loss for the same period a year earlier. Meanwhile, Southwest Airlines saw its fourth-quarter 2004 profits fall 15% to $56m, against $66m a year earlier. Both said high fuel bills would continue to pressure revenues in 2005. American, the world's biggest airline by some measures, said it expected to report a loss for the first quarter of 2005. Southwest, which has the highest market value of any US carrier, said it would remain profitable despite high fuel prices. AMR's shares were flat in Wednesday morning trading on the New York Stock Exchange, as the results were slightly better than analysts had anticipated. AMR's chief executive Gerard Arpey said the airline's difficulties reflected the situation within the industry. "AMR's results for the fourth quarter of 2004 reflect the economic woes that plagued the airline industry throughout 2004 - in particular, high fuel prices and a tough revenue environment," he said. For the full year, AMR posted a loss of $761m, lower than 2003's $1.2bn loss and an indication that the airline has successfully cut costs. AMR added that as part of its cost cutting measures, it is postponing the delivery of 54 Boeing jets. Shares in Southwest fell 65 cents to $14.35 as analysts voiced their disappointment. "The results came in below our already conservative estimate for the quarter," said Ray Neidl, an analyst at Calyon Securities. Both American and Southwest have been squeezed by cut-throat competition in the US airline industry, as a glut of available seats has led to fierce price reductions.

UK net users leading TV downloads British TV viewers lead the trend of illegally downloading US shows from the net, according to research. New episodes of 24, Desperate Housewives and Six Feet Under, appear on the web hours after they are shown in the US, said a report. Web tracking company Envisional said 18% of downloaders were from within the UK and that downloads of TV programmes had increased by 150% in the last year. About 70% were using file-sharing program BitTorrent, the firm said. "It's now as easy to download a pirate TV show as it is to programme a VCR," said Ben Coppin from Envisional. A typical episode of 24 was downloaded by about 100,000 people globally, said the report, and an estimated 20,000 of those were from within the UK. Fans of many popular US TV programmes, like 24, usually have to wait weeks or months until the latest series is shown in the UK. But in some cases, said the report, people were able to watch the new episodes in Britain before US audiences on the west coast of the country. "Missing a television show presents little problem to anyone with a basic knowledge of the internet," explained Mr Coppin. "Two clicks and your favourite programme is downloading. In effect, the internet is now a global video recorder." Exact figures are difficult to pin down, but it is thought that about 80,000 to 100,000 people in the UK download TV programmes. Some may just want the odd episode, others are downloading regularly. Many broadcast analysts agree that the net is radically altering the way people get content, like TV programmes. This presents a challenge to broadcasters who are concerned that channel schedules may become less important to people. It is also of concern to them because advertisements are usually cut out of the downloaded programmes. The industry has coined the term "time-shifting" to describe this trend of being able to watch what you want, when you want. The increased popularity of personal digital video recorders, TiVo-type boxes which automatically record programmes like Sky+, have also contributed to the trend. There are also numerous programs available on the net which automatically search and store TV programmes for viewers, effectively creating a personal video recorder on a computer. Within half an hour, recorded episodes can be uploaded - or posted - onto file-sharing networks or other download sites. Because they tend to be shorter then full-length films, they can be processed - digitised - quickly. More people with high-speed broadband connections in the UK also means that episodes can be downloaded quickly. According to Jupiter Research 40% of homes with broadband say it helps them pick and choose the programmes they want to see or that friends have recommended. The Envisional reports said that the TV industry should consider offering a legal way to download shows. The BBC ran a trial of what it calls the Interactive Media Player (iMP) last year, which was based on a peer-to-peer distribution model. It let people download programmes it held the rights to up to eight days after they had already aired. It is looking to do a more expansive trial later this year. The BBC already allows radio fans to hear programmes they missed online up to a week after broadcast. About six million people in the UK now have a fast, always-on net connection via cable or phone lines.

Brewers' profits lose their fizz Heineken and Carlsberg, two of the world's largest brewers, have reported falling profits after beer sales in western Europe fell flat. Dutch firm Heineken saw its annual profits drop 33% and warned that earnings in 2005 may also slide. Danish brewer Carlsberg suffered a 3% fall in profits due to waning demand and increased marketing costs. Both are looking to Russia and China to provide future growth as western European markets are largely mature. Heineken's net income fell to 537m euros ($701m; £371m) during 2004, from 798m euro a year ago. It blamed weak demand in western Europe and currency losses. It had warned in September that the weakening US dollar, which has cut the value of foreign sales, would knock 125m euros off its operating profits. Despite the dip in profits, Heineken's sales have been improving and total revenue for the year was 10bn euros, up 8.1% from 9.26bn euros in 2003. Heineken said it now plans to invest 100m euros in "aggressive" and "high-impact" marketing in Europe and the US in 2005. Heineken, which also owns the Amstel and Murphy's stout brands, said it would also seek to cut costs. This may involve closing down breweries. Heineken increased its dividend payment by 25% to 40 euro cents, but warned that the continued impact of a weaker dollar and an increased marketing spend may lead to a drop in 2005 net profit. Carlsberg, the world's fifth-largest brewer, saw annual pre-tax profits fall to 3.4bn Danish kroner (456m euros). Its beer sales have been affected by the sluggish European economy and by the banning of smoking in pubs in several European countries. Nevertheless, total sales increased 4% to 36bn kroner, thanks to strong sales of Carlsberg lager in Russia and Poland. Carlsberg is more optimistic than Heineken about 2005, projecting a 15% rise in net profits for the year. However, it also plans to cut 200 jobs in Sweden, where sales have been hit by demand for cheap, imported brands. "We remain cautious about the medium-to-long term outlook for revenue growth across western Europe for a host of economic, social and structural reasons," investment bank Merrill Lynch said of Carlsberg.

S Korea spending boost to economy South Korea will boost state spending next year in an effort to create jobs and kick start its sputtering economy. It has earmarked 100 trillion won ($96bn) for the first six months of 2005, 60% of its total annual budget. The government's main problems are "slumping consumption and a contraction in the construction industry". It aims to create 400,000 jobs and will focus on infrastructure and home building, as well as providing public firms with money to hire new workers. The government has set an economic growth rate target of 5% for next year and hinted that would be in danger unless it took action. "Internal and external economic conditions are likely to remain unfavourable in 2005," the Finance and Economy Ministry said in a statement. It blamed "continuing uncertainties such as fluctuating oil prices and foreign exchange rates and stagnant domestic demand that has shown few signs of a quick rebound". In 2004, growth will be between 4.7% and 4.8%, the ministry said. Not everyone is convinced the plan will work. "Our primary worry centres on the what we believe is the government's overly optimistic view that its front loading of the budget will be enough to turn the economy around," consultancy 4Cast said in a report. The problem facing South Korea is that many consumers are reeling from the effects of a credit bubble that only recently burst. Millions of South Koreans are defaulting on their credit card bills, and the country's biggest card lender has been hovering on the verge of bankruptcy for months. As part of its spending plans, the government said it will ask firms to "roll over mortgage loans that come due in the first half of 2005" . It also pledged to look at ways of helping families on low incomes. The government voiced concern about the effect of redundancies in the building trade. "Given the economic spill over and employment effect in the construction sector, a sharp downturn in the construction industry could have other adverse effects," the ministry said. As a result, South Korea will give private companies also will be given the chance to build schools, hospitals, houses and other public buildings. It also will look at real estate tax system. Other plans on the table include promoting new industries such as bio-technology and nano-technology, as well as offering increased support to small and medium sized businesses. "The focus will be on job creation and economic recovery, given that unfavourable domestic and global conditions are likely to dog the Korean economy in 2005," the ministry said.

Church urges Nelly show boycott Church ministers are trying to prevent rapper Nelly performing in Arkansas, saying they do not want his "vile and filthy lyrics" in their town. More than 20 Jonesboro ministers urged music fans to boycott Nelly's 12 March concert at Arkansas State University in a bid to have it cancelled. "Jonesboro is a wonderful city because of what does not come here," said the Reverend Adrian Rodgers. But a venue spokesman said more than 5,500 tickets had been sold so far. Mr Rodgers, of the Fullness of Joy Church, said he was concerned about the rapper's lyrics that include references to drugs, sex and violence, and songs that the minister said were demeaning to women. Ministers were worried that bringing such acts to Jonesboro would lead to problems. "Tear the tickets up," Mr Rodgers said. "Do not go and do not allow your children to go." Tim Dean, director of the Arkansas State University venue, said ticket sales had been brisk. "It would appear that with ticket sales over 5,000, many others have expressed their right to find Nelly's music entertaining and worth spending their time and money on," he said. Nelly has sold more than 30 million singles and albums worldwide, and in September 2004 simultaneously occupied the number one and two positions in the US albums chart. He has had 12 UK hit singles, including Hot in Herre, Dilemma and recent number one Over and Over.

Howard backs stem cell research Michael Howard has backed stem cell research, saying it is important people are not frightened of the future. The controversial issue was a feature of the recent US presidential election, where George Bush opposed extending it. But the Tory leader argued there was a moral case for embracing science which could help victims of Alzheimer's, Parkinson's and Motor Neurone disease. "I believe we have a duty to offer hope to the millions of people who suffer devastating illnesses," he said. The use of embryonic stem cells in the UK is already allowed. Stem cells are master cells that have the ability to develop into any of the body's tissue types. Scientists hope that by growing such cells in the laboratory they can programme them to form specific tissue such as kidney, heart or even brain tissue. Mr Howard acknowledged there were genuine concerns about stem cell research. But he argued: "We mustn't be frightened of change or nostalgic about the past - we must be optimistic about the future. "Politicians must create the right framework so that the great potential of science can be harnessed for the benefit of mankind. "With the life expectancy of the average Briton now around the mid-70s, society has a responsibility to enhance the quality of people's lives as they grow older. "I know many people are concerned about stem-cell research. They are fearful of meddling with what they see as the stuff of souls. "I respect those concerns. But I also believe we have a duty to offer hope to the millions of people who suffer devastating illnesses like Parkinson's, Multiple Sclerosis, Motor Neurone Disease, Alzheimer's and - as we saw in the papers today - now possibly heart problems." Mr Howard acknowledged there were "no easy answers" over such an issue but it was necessary to "have the courage to do what we know to be morally right". He added: "Of course, stem cells are still a recent discovery. More research needs to be done. But we must look at their potential in a responsible and grown-up way. The hopes of millions of people rest on what could be achieved." Former Superman actor the late Christopher Reeve was an advocate for the research after he was paralysed in a horse riding accident. Mr Howard made his remarks during a speech in Westminster to the Conservative National Women's Committee on ambitions and values.

Download chart debut is delayed The inclusion of downloaded music in the official singles chart has been delayed for a month. The British Phonographic Industry (BPI) had planned to include download formats in the chart from 20 March. But the date has been put back to 17 April to create a "level playing field" for independent labels. The BPI is concerned that independent repertoire is not adequately represented online and said they were looking at ways of rectifying it. BPI chairman Peter Jamieson said: "The inclusion of download formats in the Official UK Singles Chart is the most significant development in the charts for 20 years. "But for a multitude of reasons the current chart representation of independent repertoire at the major download outlets is poor. "I am very pleased we have secured this delay on behalf of independents. We have to try and establish a realistic 'level playing field' of opportunity. The Official UK Charts are run by The Official UK Charts Company (OCC) - a joint venture between the BPI and the British Association of Record Dealers (BARD). At an OCC board meeting on Wednesday, the OCC board agreed with BPI members that the 20 March start date be postponed. Download formats will now be included in the Official UK Singles Chart for the first time in the chart published on 17 April - the sales week beginning 10 April. The US has already merged downloaded singles into its Billboard Hot 100 chart.

Clarke to unveil immigration plan New controls on economic migrants and tighter border patrols will be part of government plans unveiled on Monday. Home Secretary Charles Clarke wants to introduce a points system for economic migrants and increase deportations of failed asylum seekers. Tony Blair has said people are right to be concerned about abuses of the system but there is no "magic bullet". The Tories say Labour is acting too late while the Lib Dems say the plans may not produce an efficient system. The government's new five-year plan is designed to show how Labour would reform immigration and asylum controls if it wins the election, expected to be held in May. Ministers deny they have been spurred into action by Tory campaigning or because the prime minister is worried too little has been done. Instead, they say the plans are part of an "evolving" process aimed at winning public confidence. Mr Clarke is expected to announce an end to the automatic right to settle for immigrants' families, and the introduction of fingerprinting for all visa applicants. The prime minister on Sunday said immigration would be "toughened up" to ensure only those immigrants with skills the UK really needs will be granted work permits. But he rejected the Tories' call for a quota on economic migrants, saying no "arbitrary figure" could reflect the UK's needs. Mr Blair told BBC Radio 4's Westminster Hour: "We should cut the number or increase it depending on the country's needs... "The public are worried about this, they are worried rightly, because there are abuses of the immigration and asylum system." But he defended the UK's current regime, saying all systems around the world were subject to abuse. Tory proposals to cap the number of asylum seekers and process all claims abroad would not work, argued Mr Blair. He said: "We will not be... pretending there is some simple easy way of processing Britain's asylum seekers in some other country, because no such other country exists." Conservative shadow home secretary David Davis said the government had failed to remove 250,000 failed asylum seekers from the UK and limits on economic migrants had been a "shambles". "What we are seeing today is a rather panicky response from the government after eight years of failure," he said. Liberal Democrat home affairs spokesman Mark Oaten said Labour was right to reject the Tories' idea of quotas on asylum. But he said it was yet to be seen if Mr Clarke could deliver "a fair and efficient asylum system".

Wood - Ireland can win Grand Slam Former captain Keith Wood believes Ireland can win only their second Grand Slam - and first since 1948 - in this year's RBS Six Nations Championship. After claiming their first Triple Crown for 19 years last season, Wood tips his former team-mates to go one better. "Things have been building up over the past few years and I think this is the year for Ireland," he told BBC Sport. "There is a great chance to win a Grand Slam. A lot of things are in our favour with England and France at home." Ireland have finished runners-up three times, including last year, since the old Five Nations became Six in 2000, and not finished outside the top three in the past five years. Despite being without flanker Keith Gleeson, coach Eddie O'Sullivan has not had to contend with the sort of casualty lists that have hit England and Scotland in particular prior to the tournament. "For Ireland to win it we need to stay relatively injury free, and fortunately we are one of the few teams that have done that so far," Wood added. "It is going to be tough and we need to take all the luck and opportunities that come our way." Ireland's last game of the tournament is against Wales in Cardiff - a fixture they have not lost since 1983. But despite their traditional hospitality when the Irish are visiting, Wood believes Wales might end their four-match losing run against England in Cardiff. "So many of the major England players have either retired in the last year or are injured that I think it will be very hard for them down in Cardiff," Wood added. "Wales have had four brilliant games in the last year or so and lost all four, so the time is right for them now to beat one of the major teams."

Deutsche Boerse set to 'woo' LSE Bosses of Deutsche Boerse and the London Stock Exchange are to meet amid talk that a takeover bid for the LSE will be raised to £1.5bn ($2.9bn). Last month, the German exchange tabled a 530 pence-per-share offer for LSE, valuing it at £1.3bn. Paris-based Euronext, owner of Liffe in London, has also said it is interested in bidding for LSE. Euronext is due to hold talks with LSE this week and it is reported to be ready to raise £1.4bn to fund a bid. Euronext chief Jean-Francois Theodore is scheduled to meet his LSE counterpart Clara Furse on Friday. Deutsche Boerse chief Werner Seifert is meeting Ms Furse on Thursday, in the third meeting between the two exchanges since the bid approach in December. The LSE rejected Deutsche Boerse's proposed £1.3bn offer in December, saying it undervalued the business. But it agreed to leave the door open for talks to find out whether a "significantly-improved proposal" would be in the interests of LSE's shareholders and customers. In the meantime, Euronext, which combines the Paris, Amsterdam and Lisbon stock exchanges, also began talks with the LSE. In a statement on Thursday, Euronext said any offer was likely to be solely in cash, but added that: "There can be no assurances at this stage that any offer will be made." A deal with either bidder would create the biggest stock market operator in Europe and the second biggest in the world after the New York Stock Exchange. According to the FT, in its latest meeting Deutsche Boerse will adopt a charm offensive to woo the London exchange. The newspaper said the German suitor will offer to manage a combined cash and equities market out of London and let Ms Furse take the helm. Other reports this week said the Deutsche Boerse might even consider selling its Luxembourg-based Clearstream unit - the clearing house that processes securities transactions. Its ownership of Clearstream was seen as the main stumbling block to a London-Frankfurt merger. LSE shareholders feared a Deutsche Boerse takeover would force them to use Clearstream, making it difficult for them to negotiate for lower transaction fees.

Bank set to leave rates on hold UK interest rates are set to remain on hold at 4.75% following the latest meeting of the Bank of England. The Bank's rate-setting committee has put up rates five times in the past year but rates have been on hold since September amid signs of a slowdown. Economic growth slowed in the previous quarter, as manufacturing output fell, while consumer confidence has slipped. There is also growing evidence that the previously booming UK housing market is now cooling. House prices fell 0.4% in October, according to the Nationwide, their biggest monthly fall since February 2001. Last month, Bank of England governor Mervyn King said that the economy had hit a "softer patch" after rapid economic growth in the first half of 2004. Richard Jeffrey, chief economist at Bridgewell Securities, said it was very unlikely that the Bank of England would put rates up again this time around. "There have been sufficient signs in the economy of a slowdown to stay the Bank of England's hand," he told BBC Radio 4's Today programme. However, Mr Jeffrey said he believed the slowdown in economic activity was temporary and it was dangerous to assume that rates had peaked. "I still think interest rates are going up," he said. "We are not out of the woods."

Mac Mini heralds mini revolution The Mac Mini was launched amid much fanfare by Apple and great excitement by Apple watchers last month. But does the latest Macintosh justify the hype? Let us get a few things dealt with at the outset - yes, the Mac Mini is really, really small, and yes, it is another piece of inspired Apple design. There is more to be said on the computer's size and design but it is worth highlighting that the Mac Mini is a just a computer. Inside that small box there is a G4 processor, a CD/DVD player, a hard drive, some other technical bits and bobs and an operating system. A DVD burner, wireless and bluetooth technologies can be bought at extra cost. And if you do not have a monitor, keyboard or mouse then you will need to purchase those also. It is not the fastest computer for the money but for under £400 you are getting something more interesting than mere technical specifications - Apple software. The Mac Mini comes bundled with Mac OS X, the operating system, as well as iLife 05, a suite of software which includes iTunes, web browser Safari, iPhoto, Garage Band and iDVD. I doubt many PC lovers would seriously argue that Windows XP comes with a better suite of programs than Mac OS X. Of course, users of open source operating system Linux draw up their own menu of programs. For people who want to do interesting things with their music, photos and home movies then a Mac Mini is an ideal first computer or companion to a main computer. "It's a good little machine with a reasonable amount of power and just perfect for the average computer user who wants to leave the tyranny of Window and viruses," said Mark Sparrow, technical and reviews editor at Mac Format magazine. He added: "In essence, it's a laptop in a biscuit tin, minus the screen and the keyboard. "The software bundle that comes with the mini makes your average budget PC look a bit sick." The relatively low price of the machine has also encouraged the more technically-savvy to experiment with their Macs. One user has already created a "dock" to enable him to plug in and out his Mac Mini in his car. The small size of the machine makes it a practical solution for in-car entertainment - playing movies and music - as well as navigation. Another user has mounted his Mac Mini to the back of his large plasma screen and then controls the computer via a wireless keyboard and mouse. When it was first announced some pundits thought the Mini was designed as a sort of stealth media centre - ie the machine would be used to serve TV programmes, music, films and photos - partly due to its small, living room friendly design. But there are obvious reasons why this is not the case - at least not in the here and now The hard drive - at 80GB for the larger model - is too small to be realistically used as media centre. While commercial Personal Video Recorders are on the market with smaller than 80GB hard drives it is worth remembering that they only store TV content. A media centre computer has to store music, files and photos and as such 80GB just seems too small. Most PCs running Windows Media Center have at least 120GB hard disks. Coupled with the lack of a TV tuner card, a digital audio out and any kind of media centre software bundled with the machine then the Mac Mini should be judged on what it is, not what it is not. But that has not stopped more enterprising users from adapting the Mac Mini to media centre uses. So - is the Mac Mini just another computer or a revolution in computing? Graham Barlow, editor of Mac Format, understandably has a rather partisan viewpoint. "It's just a Mac, but we should be very excited - it's revolutionary in its size (smaller than PCs), looks (looks better than PCs), and the fact that it's the first Mac designed to really go for the low-cost PC market." The design of the Mac Mini is further evidence of a future when PCs are more than just bland, bulky boxes. There are a number of companies who already produce miniature PCs based on mini-ITX motherboards. But at the moment these PCs tend to be either for the home-build enthusiast or expensive pre-built options based around Microsoft's Media Center software. But for the value the Mac Mini offers, bringing some of the best software packages within reach of more consumers than ever before, Apple is to be congratulated. Let us say then that if the Mac Mini is not a fully fledged revolution - it is a mini revolution.

Labour MPs' fears over squabbling If there is one thing certain to stiffen the spines of Labour MPs it is the prospect of losing their seats at a general election. And it was largely that fear that led to Tony Blair and Gordon Brown being read the riot act during a meeting of the parliamentary Labour party. The views expressed by both backbenchers and Labour peers over the claimed squabbling between the two men starkly demonstrated the widely-held view within the Labour party that the two most powerful figures in the government are jeopardising the next election. As one hugely-disgruntled backbencher said before the meeting: "It is time they realised it's not just my seat they are threatening but if they go on like this they could put the election in doubt." It is a sentiment that is now running throughout the Labour benches with MPs eager to underline the message to their leaders to stop the squabbling and get on with the job at hand. As Paul Flynn said: "What has deeply upset the party is in this time of all times, when we wanted to come together, we wanted to lead on the global issues, to change politics for the next decade, the whole thing was wrecked by a piece of childishness by the two main people in the party, two people we greatly respect." Stephen Pound echoed the message, saying: "We know that the one thing that could entirely jeopardise what we are trying to achieve, not for the Labour Party but for this country, is the appearance of division. We remember the 1980s". They backed the suggestion that unless the squabbling stopped, the people briefing on behalf of the two men would be "named and shamed". The dressing down appears to have done the trick, with Mr Brown joining his alleged rival Alan Milburn - who the prime minister put in charge of election planning in Mr Brown's stead - and Deputy Prime Minister John Prescott at an election poster launch. But the effect of all this is to have achieved two things. Firstly, nobody is attempting to suggest any more that the stories of the rift between the chancellor and the prime minister are fictions created by the media and authors. Even Mr Prescott admitted that, had he still been a backbencher, he would have been giving Mr Blair and Mr Brown the same message. Secondly it has also underlined the view that the election campaign has, to all intents and purposes, kicked off. But whether the telling off and the subsequent change in behaviour by the two men will do any good - or can even be sustained through the campaign - remains to be seen. Even as the MPs were expressing their fears it emerged that, while Mr Brown is in Africa for a week, the prime minister is to deliver a keynote speech on election themes for a third term. And he is expected to repeat his recent insistence that the next manifesto will be "New" Labour through and through. Similarly, some were pointing out that the chancellor, during the election poster launch, once again refused to deny the claim that he told the prime minister he could never trust anything he said. None the less, what some believe now is that the effect of the warnings from the backbenchers will actually be to silence the Brown camp, effectively strengthening the prime minister's hand. For example, will those Brownite briefers suggest their man is unhappy at the prime minister's timing or subject matter, as may have been the case in the past? What all seem agreed on, however, is that this sniping simply cannot be allowed to go on through the election campaign. Mind you, we have heard similar pledges before.

Bollywood draws global stars British actress Antonia Bernath is making her debut in Kisna - the Warrior Poet, marking a growing trend for non-Indian stars to appear in Bollywood films. Directed by Bollywood veteran Subhash Ghai, the film is set in the British Raj and Bernath plays an army general's daughter who falls in love with a rural boy, Kisna. "I liked the fluid nature of film-making. We improvised quite a lot," says Bernath. "At times it felt very chaotic but Mr Ghai was quite clear about what he wanted." Picked from more than 200 girls in an audition in London, Bernath cut short her education at Bristol's Old Vic Theatre School to take up the opportunity. It is not often that somebody gets to play the lead role straight out of a drama school. She spent three weeks learning Hindi and taking dance lessons. "Initially, I was a bit sceptical about how people would respond to me," Bernath says. "But I found the Hindi film industry very warm and encouraging. I even had a few offers before the work on Kisna was completed." Films are one of India's biggest exports and those like Lagaan and Monsoon Wedding have broken the traditional boundaries of colour and culture. Spurred by this, Bollywood producers are trying to go global in all aspects of film-making, be it technical or artistic. From young heart-throbs like Nick Moran of Lock, Stock and Two Smoking Barrels to model Sophie Dahl, many non-Indian stars want to make the most of this opportunity. "Bollywood has truly gone global," says Taran Adarsh, editor of Indian film journal Trade Guide. "Directors are now attempting to woo non-Asian audience to increase their share in the overseas film market." Kisna has been shot simultaneously in Hindi and English, with the English print shortened by an hour to accommodate the Western audience. The film even has a song composed in English by AR Rahman, the director of the popular West End musical, Bombay Dreams. "Identification is a popular cinematic device. Use of European or American actors can be viewed as a step in that direction," says Adarsh. The cast of Kisna also includes British actors Michael Maloney, Caroline Langrishe and Polly Adams. Another actress, Annabelle Wallace, plays the lead role in a bilingual romantic comedy Dil Jo Bhi Kahey (Whatever the Heart Says), which also stars Indian screen legend Amitabh Bachchan. Actor and Producer Aamir Khan's forthcoming venture The Rising is set against the backdrop of the Indian mutiny of 1857, with British actor Toby Stephens in a key role. But it isn't only the Western actors looking eastwards. Bollywood sweetheart Aishwarya Rai, recently seen in Bride and Prejudice alongside New Zealand actor Martin Henderson, is building her international career. And, many other Bollywood stars have their eyes set on Hollywood. "Hollywood or Bollywood, it's the box office that determines whether something is a passing phase or a trend," says Adarsh. Kisna - the Warrior Poet opens in the UK on 21 January.

Microsoft gets the blogging bug Software giant Microsoft is taking the plunge into the world of blogging. It is launching a test service to allow people to publish blogs, or online journals, called MSN Spaces. Microsoft is trailing behind competitors like Google and AOL, which already offer services which make it easy for people to set up web journals. Blogs, short for web logs, have become a popular way for people to talk about their lives and express opinions online. MSN Spaces is free to anyone with a Hotmail or MSN Messenger account. People will be able to choose a layout for the page, upload images and share photo albums and music playlists. The service will be supported by banner ads. "This is a simple tool for people to express themselves," said MSN's Blake Irving. This is Microsoft's first foray into blogging, which has taken off as a web phenomenon in the past year. Competitors like Google already offer free services through its Blogger site, while AOL provides its members with journals. Accurate figures for the number of blogs in existence are hard to come by. According to blog analysis firm Technorati, the so-called blogosphere, has doubled every five and a half months for the last 18 months. It now estimates that the number of blogs in existence has exceeded 4.8 million, although some speculate that less than a quarter are regularly maintained.

Alicia Keys to open US Super Bowl R&B star Alicia Keys is to open February's Super Bowl singing a song only previously performed there by Ray Charles and Vicki Carr. Keys, who will sing America the Beautiful, will be accompanied by 150 students from the Florida School for the Deaf and the Blind. Charles, who died last year, attended the school as a child in 1937. Keys said she was "very excited", describing Charles as "an artist I admire, miss and respect". "I know that this is going to be a very touching and memorable moment," she said. It will be her first performance at the Super Bowl, which will be watched by millions in the US on 6 February. Sir Paul McCartney will provide the half-time entertainment in the slot filled by Janet Jackson last year. Organisers have promised there will be no repeat of her nipple-baring incident that sparked thousands of complaints on US TV's most-watched broadcast. A National Football League spokesman said they were "comfortable" this show would be acceptable to a mass audience. The game and show were watched by 144 million people in the US in 2003. Twenty CBS-owned TV stations were fined $550,000 (£300,000) by the country's TV regulatory agency after more than 542,000 complaints were made about Janet Jackson's "wardrobe malfunction". Sir Paul said: "There's nothing bigger than being asked to perform at the Super Bowl. "We're looking forward to rocking the millions at home and in the stadium."

Baywatch dubbed 'worst TV import' Surf show Baywatch has won the title of worst TV import of all time in a poll of UK television executives. The programme, which starred David Hasselhoff and Pamela Anderson during its 12-year run, was shown in 140 countries at its height. Model Anna Nicole Smith's reality show and The Dukes of Hazzard were runners-up in the Broadcast magazine survey. The Simpsons and Dallas and 24 were among the magazine's list of the best all-time imports from the US. Soap operas Knots Landing, Falcon Crest plus The Bold And The Beautiful all made the top 10 of Transatlantic TV howlers. The Jerry Springer Show, which came in at sixth on the list, did not fare well. Broadcast magazine said: "British TV never realised how low it could go before Jerry showed the way." Baywatch rose to the top of the list for having "mind-numbingly predictable scripts: beachgoer is saved from drowning," according to the magazine. Just inside the all-time worst top 10 came Extreme Makeover, which sees members of the public given thousands of pounds worth of plastic surgery. Other American shows which won praise were The X-Files, I Love Lucy, Twin Peaks and Star Trek.

Gadget growth fuels eco concerns Technology firms and gadget lovers are being urged to think more about the environment when buying and disposing of the latest hi-tech products. At the Consumer Electronics Show in Las Vegas earlier this month, several hi-tech firms were recognised for their strategies to help the environment. Ebay also announced the Rethink project bringing together Intel, Apple, and IBM among others to promote recycling. The US consumer electronics market is set to grow by over 11% in 2005. But more awareness is needed about how and where old gadgets can be recycled as well as how to be more energy efficient, said the US Environmental Protection Agency (EPA). Of particular growing concern is how much energy it takes to recharge portable devices, one of the fastest growing markets in technology. The Consumer Electronics Association (CEA) has predicted that shipments of consumer technologies in 2005 will reach more than $125.73 billion (nearly £68 billion). Ebay's initiative pulls together major technology firms, environment groups, government agencies and eBay users to give information about what to do with old computers and where to send them. The online auction house thinks that its already-established community of loyal users could be influential. "We really became aware of the e-waste issue and we saw that our 125 million users can be a powerful force for good," eBay's David Stern told the BBC News website. "We saw the opportunity to meet the additional demand we have on the site for used computers and saw the opportunity too to good some good for the environment." But it is not just computers that cause a problem for the environment. Teenagers get a new mobile every 11 months, adults every 18 months and a 15 million handsets are replaced in total each year. Yet, only 15% are actually recycled. This year, a predicted two billion people worldwide will own a mobile, according to a Deloitte report. Schemes in the US, like RIPMobile, could help in targeting younger generations with recycling messages. The initiative, which was also launched at CES, rewards 10 to 28-year-olds for returning unused phones. "This system allows for the transformation of a drawer full of unused mobile phones into anything from music to clothes to electronics or games," said Seth Heine from RIPMobile. One group of students collected 1,000 mobiles for recycling in just three months. Mr Heine told the BBC News website that what was important was to raise awareness amongst the young so that recycling becomes "learned behaviour". Europe is undoubtedly more advanced than the US in terms of recycling awareness and robust "end of life" programmes, although there is a tide change happening in the rest of the world too. Intel showcased some its motherboards and chips at CES which are entirely lead free. "There is more and more awareness on the consumer side, but the whole industry is moving towards being lead free," Intel's Allen Wilson told the BBC News website. "There is still low-level awareness right now, but it is on the rise - the highest level of awareness is in Europe." A European Union (EU) directive, WEEE (Waste Electronic and Electrical Equipment), comes into effect in August. It puts the responsibility on electrical manufacturers to recycle items that are returned to them. But developments are also being made to design better technologies which are more energy efficient and which do not contain harmful substances. Elements like chromium, lead, and cadmium - common in consumer electronics goods - will be prohibited in all products in the EU by 2006. But it is not just about recycling either. The predicted huge growth in the gadget market means the amount of energy used to power them up is on the rise too. The biggest culprit, according to the EPA, is the innocuous power adaptor, nicknamed "energy vampires". They provide vital juice for billions of mobile phones, PDAs (personal digital assistants), digital cameras, camcorders, and digital music players. Although there is a focus on developing efficient and improved circuits in the devices themselves, the technologies inside rechargers are still outdated and so eat up more energy than is needed to power a gadget. On 1 January, new efficiency standards for external power supplies came into effect as part of the European Commission Code of Conduct. But at CES, the EPA also unveiled new guidelines for its latest Energy Star initiative which targets external power adapters. These map out the framework for developing better adaptors that can be labelled with an Energy Star logo, meaning they are about 35% more efficient. The initiative is a global effort and more manufacturers' adaptors are being brought on board. Most are made in China. About two billion are shipped global every year, and about three billion are in use in the US alone. The EPA is already working with several companies which make more than 22% of power supplies on the market. "We are increasingly finding companies that not only want to provide neat, hi-tech devices, but also bundle with it a hi-tech, efficient power supply," the EPA's Andrew Fanara said. Initiatives like this are critical; if power adaptors continue to be made and used as they are now, consumer electronics and other small appliances will be responsible for more than 40% of electricity used in US homes, said the EPA.

Singer Christina Aguilera to wed Pop star Christina Aguilera is to marry music executive Jordan Bratman, the singer's agent has confirmed. Bratman, 26, proposed to Grammy-winning singer Aguilera, 23, on holiday at an undisclosed location. The pair have been together for more than two years. "No wedding plans have been set yet," said Aguilera's agent Meghan Prophet. Aguilera burst onto the pop scene in 1999, winning a best new artist Grammy in 2000. Her hits include What a Girl Wants, Dirrty and Beautiful. Bratman presented his fiancee with a diamond ring designed by jeweller Stephen Webster on Friday, said Ms Prophet. New York-born Aguilera reached number one in the UK with her debut hit Genie in a Bottle in October 1999. Her early success was cemented by two further Grammys in subsequent years. In 2002, Aguilera won best pop collaboration for the hit track Lady Marmalade with Lil' Kim, Maya and Pink, and last year she picked up the award for best female pop vocal performance for Beautiful. Her most recent single, Car Wash, featuring Missy Elliott, reached number four in the UK charts last November.

US blogger fired by her airline A US airline attendant suspended over "inappropriate images" on her blog - web diary - says she has been fired. Ellen Simonetti, known as Queen of the Sky, wrote an anonymous semi-fictional account of her life in the sky. She was suspended by Delta in September. In a statement, she said she was initiating legal action against the airline for "wrongful termination". A Delta spokesperson confirmed on Wednesday that Ms Simonetti was no longer an employee. Delta has repeatedly declined to elaborate on what it calls "internal employee matters". A spokesperson reiterated this position on Wednesday, confirming only that Ms Simonetti was no longer with the company. The spokesperson also confirmed that there were "very clear rules" attached to the unauthorised use of Delta branding, including uniforms. Ms Simonetti announced on her blog she had been fired on 1 November. She said in an official statement: "As a result of my suspension and subsequent termination without cause by Delta Airlines I am moving forward with filing a discrimination complaint with the Federal Government EEOC [US Equal Employment Opportunity Commission]." She added she had also hired a Texas-based law firm to initiate legal action for "wrongful termination, defamation of character and lost future wages." Ms Simonetti told the BBC News website she had received no warning or further explanation when she was suspended on 25 September. Queen of the Sky has received a lot of support and advice from the global blogging community since news of her suspension was brought to light on the BBC News website and others. Her story has highlighted concerns amongst the growing blogging community about conflicts of interest, employment law and free speech on personal websites. The blog, which she started in January as a way of getting over her mother's death, contains a mix of fictional and non-fictional accounts. Queen of the Sky developed over the months as a character in her own right, according to Ms Simonetti. In the postings, she made up fictional names for cities and other companies she mentioned to protect anonymity. But some postings contained images of herself in uniform. Of the 10 or so images only one showed Ms Simonetti's flight "wings". She removed them as soon as she was informed of her suspension. "I never meant it as something to harm my company and don't understand how they think it did harm them," Ms Simonetti said. A legal expert in the US speculated that Delta might be concerned that the fictional content on the blog may be linked back to the airline after the images were posted. Delta has been hit recently by pressures of rising fuel costs and fierce competition. It has said it needs to cut between 6,000 and 7,000 jobs and reduce costs by $5bn (£2.7bn) a year. Analysts had warned recently that the airline might have to seek Chapter 11 bankruptcy prevention. Last week, it struck a $1bn cost-cutting deal with its pilots which could save it from bankruptcy. The deal would see pilots accept a 32% pay cut in return for the right to buy 30 million Delta shares, unions said. And on Monday, it negotiated a deal to defer about $135m in debt which was due next year, until 2007. The airline also said it had agreed the terms of a $600m loan from American Express.

Sky takes over Oscar night mantle Sky has signed a major new deal to broadcast this year's Academy Awards, taking over from three years of live Oscar coverage on the BBC. Sky said it was "honoured to have won exclusive broadcasting rights" and promised to cover the event "in a way no other broadcaster could". The BBC denied it had lost a bidding war, saying it had "decided to pass the mantle to another broadcaster". The ceremony, hosted by newcomer Chris Rock, takes place on 27 February 2005. Sky's coverage will launch with the nominations on 25 January and will include themed programming across Sky channels including Sky News, Sky Travel and the Biography Channel. There will also be a month-long season of Oscar-winning films on Sky Movies in the run up to the event and live uninterrupted coverage on the night. "We are honoured to have won the live and exclusive broadcasting rights for The Academy Awards," said Sky Networks' Sophie Turner Laing. "Sky is the natural place to see the biggest and most prestigious film event of the year, and will cover the event in a way that no other broadcaster could." Sky first scooped Oscar rights from the BBC in 1999, but the BBC won them back in 2001 when Sky was forced to pull out of a bidding war due to financial constraints. "BBC viewers will of course be able to watch quality coverage of the 2005 Academy Awards on the BBC's bulletins and news programmes," a spokesman said. Among the films tipped to do well at this year's Academy Awards are Martin Scorsese's The Aviator, Jean-Pierre Jeunet's A Very Long Engagement and the Ray Charles biopic, Ray.

Labour accused of broken pledge Labour has already broken its pre-election promise on immigration before the ink has dried on its new pledge card, the Tories have claimed. Home Secretary Charles Clarke has been quoted as telling Labour members he wants more migrants to come to the UK. Tory co-chairman Liam Fox said the comments were at odds with Tony Blair's prediction of a net cut in immigration. But Mr Clarke accused him of trying to score "cheap political points" by muddling immigration with asylum. London's Evening Standard quoted Mr Clarke telling Labour activists at a question and answer session in Gateshead that he wanted Britain to offer refuge for those fleeing tyranny. "That's not only a moral duty and a legal duty, but something which is part of the essence of this country," he said. "We want more migration, more people come to study and to work. "We want more people coming to look for refuge." Mr Blair's was asked last Wednesday if the government's new immigration plans, including a point system for economic migrants, would reduce net migration. The prime minister told MPs: "The abusers will be weeded out, and as a result of the end of chain migration [where families have an automatic right to settle], the numbers will probably fall." On Monday, Dr Fox told reporters: "The prime minister has broken his word so many times in the past but now his promises do not even last a week. "The Labour Party election pledges, even when they are so incredibly vague, do not even last four days." The Tories want quotas for economic migrants and refugees and on Tuesday will outline more details of their plans for health checks on migrants. Mr Clarke dismissed the latest Tory attack. "This is simply a scurrilous attempt by the Tories to score cheap political points," he said. "The Tories are purposely mixing together two separate issues of immigration and asylum." Mr Clarke said he had made clear the UK would welcome genuine economic migrants for key jobs on a strict points based system. And only asylum seekers genuinely fleeing death or persecution would be admitted. "Under our plans we expect unfounded applications to continue to fall," he added. Earlier, Dr Fox accused Mr Blair and other Cabinet ministers of telling lies about Tory policies and then attacking the lies. He told BBC Radio: "If you are willing to lie about the reasons for going to war, I guess you are going to lie about anything at all." The latest pre-election spats come after Mr Blair told Labour members the Tories offered a "hard right agenda" which would take Britain backwards. Lib Dem leader Charles Kennedy accelerating Lib Dem election preparations this week as he visits Manchester, Liverpool, Leicester, Somerset, Basingstoke, Shrewsbury, Dorset and Torbay.

Barcelona title hopes hit by loss Barcelona's pursuit of the Spanish title took a blow on Sunday as they fell to a 2-0 defeat at home to Atletico Madrid. Fernando Torres gave Athletico an ideal start with a goal in the first minute. Ronaldino wasted a second-half chance to equalise for Barca when he put a penalty wide, but Torres made no such mistake with a last-minute spot-kick. The defeat, coupled with Real Madrid's 4-0 win over Espanyol on Saturday, reduces Barca's lead to four points. Former Everton midfielder Thomas Gravesen scored his first goal for Real in the comfortable victory at the Bernabeu. Zinedine Zidane had opened the scoring before Raul bagged a brace. Gravesen, who replaced Zidane, completed the scoring in the 84th minute with a low shot. David Beckham, watched by Sven-Goran Eriksson, came off in the 67th minute with a shoulder injury but should be fit for England's game against Holland. England team-mate Michael Owen came on for Raul after 76 minutes with the game already won. Real have now won six consecutive Primera Liga games since coach Wanderley Luxemburgo took charge.

Swiss cement firm in buying spree Swiss cement firm Holcim has bid $800m (£429m) to buy two Indian cement firms and a holding company in the country. It plans to buy Associated Cement Companies (ACC), Ambuja Cement Eastern and the holding firm, Ambuja Cement India Ltd, a Holcim statement said. Shares in ACC fell 5.5% as investors, who thought the offer was underpriced, decided to sell. Meanwhile, UK-based firm Aggregate Industries said it had agreed a £1.8bn takeover by Holcim. The deal with Aggregates will give Holcim, the world's second-biggest cement maker, an entry into the UK market and boost its presence in the US. Peter Tom, who will remain as Aggregate chief executive, said the 138p a share offer provided "significant value" for shareholders. The Markfield, Leicestershire-based company runs 142 quarries in the UK and the US. It also has 164 ready-mixed concrete plants, 90 asphalt plants and 32 pre-cast concrete factories. If the Indian deals go ahead, it will give Holcim a major presence in the world's fastest-growing market behind China. ACC is India's second-largest cement maker with an annual capacity of 18.2 million tonnes and a market share of 13%. "Holcim is looking to buy it (ACC) very cheap," said KK Mittal, a fund manager with Escorts Mutual Fund in New Delhi. "The market is not impressed. If they want a substantial chunk, then they should be paying a premium over the market price." Shares in Holcim rose by 2.3% on Thursday following news of the takeover.

Card fraudsters 'targeting web' New safeguards on credit and debit card payments in shops has led fraudsters to focus on internet and phone payments, an anti-fraud agency has said. Anti-fraud consultancy Retail Decisions says 'card-not-present' fraud, where goods are paid for online or by phone, has risen since the start of 2005. The introduction of 'chip and pin' cards has tightened security for transactions on the High Street. But the clampdown has caused fraudsters to change tack, Retail Decisions said. The introduction of chip and pin cards aimed to cut down on credit card fraud in stores by asking shoppers to verify their identity with a confidential personal pin number, instead of a signature. Retail Decisions chief executive Carl Clump told the BBC that there was "no doubt" that chip and pin would "reduce card fraud in the card-present environment". "However, it is important to monitor what happens in the card-not-present environment as fraudsters will turn their attention to the internet, mail order, telephone order and interactive TV," he said. "We have seen a 22% uplift in card-not-present fraud here in the UK... since the start of the year. "Fraud doesn't just disappear, it mutates to the next weakest link in the chain," he said. Retail Decisions' survey on the implementation of chip and pin found that shoppers had adapted easily to the new system, but that banks' performance in distributing the new cards had been patchy, at best. "The main issue is that not everyone has the pins they need," said Mr Clump. Nearly two thirds - 65% - of the 1,000 people interviewed said they had used chip and pin to make payments. Of these, 83% were happy with the experience, though nearly a quarter said they struggled to remember their pin number. However, only 34% said they had received replacement cards with the necessary 'chip' technology from all their card providers. Furthermore, 16% said that none of their cards had been replaced, while 30% said only some had. UK shoppers spent £5.3bn on plastic cards in 2003, the last full year for which figures are available from the Association of Payment Clearing Services (Apacs). Altogether, card scams on UK-issued cards totalled £402.4m in 2003. Card-not-present fraud rose an annual 6% to £116.4m, making it the biggest category even then. Within this, internet fraud totalled £43m, Apacs' figures show.

EU to probe Alitalia 'state aid' The European Commission has officially launched an in-depth investigation into whether Italian airline Alitalia is receiving illegal state aid. Commission officials are to look at Rome's provision of a 400m euro ($495m; £275m) loan to the carrier. Both the Italian government and Alitalia have repeatedly denied that the money - part of a vital restructuring plan - is state aid. The investigation could take up to 18 months. However, Transport Commissioner Jacques Barrot said he wanted it to be carried out as swiftly as possible. "The Italian authorities have presented a serious industrial plan," said Mr Barot. "We now have to verify certain aspects to confirm that this plan contains no state aid. I would like our analysis to be completed swiftly." The matter of possible state aid was brought to the Commission's attention by eight of Alitalia's rivals, including Germany's Lufthansa, British Airways and Spain's Iberia. While Alitalia needs to restructure to bring itself back to profitability, the rival carriers say it has both violated state aid rules and threatened competition. Alitalia lost 330m euros in 2003 as it struggled to get to grips with high costs, spiralling oil prices, competition from budget carriers and reduced demand. It plans to split into AZ Fly and AZ Services, which will handle air and ground services respectively. Alitalia already enjoyed state aid in 1997. EU rules prevent that from happening again in what is known as the "one time, last time" rule for airlines. Otherwise, EU regulations on state aid stipulate that governments may help companies financially, but only on the same terms as a commercial investor. The airline declined to comment on the Commission decision.

Peer-to-peer nets 'here to stay' Peer-to-peer (P2P) networks are here to stay, and are on the verge of being exploited by commercial media firms, says a panel of industry experts. Once several high-profile legal cases against file-sharers are resolved this year, firms will be very keen to try and make money from P2P technology. The expert panel probed the future of P2P at the Consumer Electronics Show in Las Vegas earlier in January. The first convictions for P2P piracy were handed out in the US in January. William Trowbridge and Michael Chicoine pleaded guilty to charges that they infringed copyright by illegally sharing music, movies and software. Since the first successful file-sharing network Napster was forced to close down, the entertainment industry has been nervous and critical of P2P technology, blaming it for falling sales and piracy. But that is going to change very soon, according to the panel. The music and film industries have started some big legal cases against owners of legitimate P2P networks - which are not illegal in themselves - and of individuals accused of distributing pirated content over networks. But they have slowly realised that P2P is a good way to distribute content, said Travis Kalanick, founder and chairman of P2P network Red Swoosh, and soon they are all going to want a slice of it. They are just waiting to come up with "business models" that work for them, which includes digital rights management and copy-protection standards. But, until the legal actions are resolved, experimentation with P2P cannot not happen, said Michael Weiss, president of StreamCast Networks. Remembering the furore around VCRs when they first came out, Mr Weiss said: "Old media always tries to stop new media. "When they can't stop it, they try to control it. Then they figure out how to make money and they always make a lot of money." Once the courts decided that the VCR in itself was not an illegal technology, the film studios turned it into an extremely lucrative business. In August 2004, the San Francisco-based US Court of Appeals ruled in favour of Grokster and StreamCast, two file-sharing networks. The court said they were essentially in the same position that Sony was in the 1980s VCR battle, and said that the networks themselves could not be deemed as illegal. P2P networks usually do not rely on dedicated servers for the transfer of files. Instead it uses direct connections between computers - or clients. There are now many different types of P2P systems than work in different ways. P2P nets can be used to share any kind of file, like photos, free software, licensed music and any other digital content. The BBC has already decided to embrace the technology. It aims to offer most of its own programmes for download this year and it will use P2P technology to distribute them. The files would be locked seven days after a programme aired making rights management easier to control. But the technology is still demonised and misunderstood by many. The global entertainment industry says more than 2.6 billion copyrighted music files are downloaded every month, and about half a million films are downloaded a day. Legal music download services, like Apple iTunes, Napster, have rushed into the music marketplace to try and lure file-sharers away from free content. Sales of legally-downloaded songs grew tenfold in 2004, with 200 million tracks bought online in the US and Europe in 12 months, the IFPI reported this week. But such download services are very different from P2P networks, not least because of the financial aspect. There are several money-spinning models that could turn P2P into a golden egg for commercial entertainment companies. Paid-for-pass-along, in which firms receive money each time a file is shared, along with various DRM solutions and advertiser-based options are all being considered. "We see there are going to be different models for commoditising P2P," said Marc Morgenstern, vice president of anti-piracy firm Overpeer. "Consumers are hungry for it and we will discover new models together," agreed Mr Morgenstern. But many net users will continue to ignore the entertainment industry's potential controlling grip on content and P2P technology by continuing to use it for their own creations. Unsigned bands, for example, use P2P networks to distribute their music effectively, which also draws the attention of record companies looking for new artists to sign. "Increasingly, what you are seeing on P2P is consumer-created content," said Derek Broes, from Microsoft. "They will probably play an increasing role in helping P2P spread," he said. Looking into P2P's future, file sharing is just the beginning for P2P networks, as far as Mr Broes is concerned. "Once some of these issues are resolved, you are going to see aggressive movement to protect content, but also in ways that are unimaginable now," he said. "File-sharing is the tip of the iceberg."

Ink helps drive democracy in Asia The Kyrgyz Republic, a small, mountainous state of the former Soviet republic, is using invisible ink and ultraviolet readers in the country's elections as part of a drive to prevent multiple voting. This new technology is causing both worries and guarded optimism among different sectors of the population. In an effort to live up to its reputation in the 1990s as "an island of democracy", the Kyrgyz President, Askar Akaev, pushed through the law requiring the use of ink during the upcoming Parliamentary and Presidential elections. The US government agreed to fund all expenses associated with this decision. The Kyrgyz Republic is seen by many experts as backsliding from the high point it reached in the mid-1990s with a hastily pushed through referendum in 2003, reducing the legislative branch to one chamber with 75 deputies. The use of ink is only one part of a general effort to show commitment towards more open elections - the German Embassy, the Soros Foundation and the Kyrgyz government have all contributed to purchase transparent ballot boxes. The actual technology behind the ink is not that complicated. The ink is sprayed on a person's left thumb. It dries and is not visible under normal light. However, the presence of ultraviolet light (of the kind used to verify money) causes the ink to glow with a neon yellow light. At the entrance to each polling station, one election official will scan voter's fingers with UV lamp before allowing them to enter, and every voter will have his/her left thumb sprayed with ink before receiving the ballot. If the ink shows under the UV light the voter will not be allowed to enter the polling station. Likewise, any voter who refuses to be inked will not receive the ballot. These elections are assuming even greater significance because of two large factors - the upcoming parliamentary elections are a prelude to a potentially regime changing presidential election in the Autumn as well as the echo of recent elections in other former Soviet Republics, notably Ukraine and Georgia. The use of ink has been controversial - especially among groups perceived to be pro-government. Widely circulated articles compared the use of ink to the rural practice of marking sheep - a still common metaphor in this primarily agricultural society. The author of one such article began a petition drive against the use of the ink. The greatest part of the opposition to ink has often been sheer ignorance. Local newspapers have carried stories that the ink is harmful, radioactive or even that the ultraviolet readers may cause health problems. Others, such as the aggressively middle of the road, Coalition of Non-governmental Organizations, have lauded the move as an important step forward. This type of ink has been used in many elections in the world, in countries as varied as Serbia, South Africa, Indonesia and Turkey. The other common type of ink in elections is indelible visible ink - but as the elections in Afghanistan showed, improper use of this type of ink can cause additional problems. The use of "invisible" ink is not without its own problems. In most elections, numerous rumors have spread about it. In Serbia, for example, both Christian and Islamic leaders assured their populations that its use was not contrary to religion. Other rumours are associated with how to remove the ink - various soft drinks, solvents and cleaning products are put forward. However, in reality, the ink is very effective at getting under the cuticle of the thumb and difficult to wash off. The ink stays on the finger for at least 72 hours and for up to a week. The use of ink and readers by itself is not a panacea for election ills. The passage of the inking law is, nevertheless, a clear step forward towards free and fair elections." The country's widely watched parliamentary elections are scheduled for 27 February. David Mikosz works for the IFES, an international, non-profit organisation that supports the building of democratic societies.

'Ultimate game' award for Doom 3 Sci-fi shooter Doom 3 has blasted away the competition at a major games ceremony, the Golden Joystick awards. It was the only title to win twice, winning Ultimate Game of the year and best PC game at the awards, presented by Little Britain star Matt Lucas. The much-anticipated sci-fi horror Doom 3 shot straight to the top of the UK games charts on its release in August. Other winners included Grand Theft Auto: San Andreas which took the Most Wanted for Christmas prize. Only released last week, it was closely followed by Halo 2 and Half-Life 2, which are expected to be big hits when they are unleashed later this month. But they missed out on the prize for the Most Wanted game of 2005, which went to the Nintendo title, The Legend of Zelda. The original Doom, released in 1994, heralded a new era in computer games and introduced 3D graphics. It helped to establish the concept of the first-person shooter. Doom 3 was developed over four years and is thought to have cost around $15m (£8.3m). The top honour for the best online game of the year went to Battlefield Vietnam. The Chronicles of Riddick: Escape from Butcher Bay was handed the Unsung Hero Game of 2004. Its release was somewhat eclipsed by Doom 3, which was released on the same week. It was, however, very well received by gamers and was praised for its storyline which differed from the film released around the same time. Electronic Arts was named top publisher of the year, taking the crown from Nintendo which won in 2003. The annual awards are voted for by more than 200,000 readers of computer and video games magazines. Games awards like this have grown in importance. Over the last six years, the UK market for games grew by 100% and was worth a record £1,152m in 2003, according to a recent report by analysts Screen Digest.

Pandas benefit from wireless net The world's dwindling panda population is getting a helping hand from a wireless internet network. The Wolong Nature Reserve in the Sichuan Province of southwest China is home to 20% of the remaining 1,500 giant pandas in the world. A broadband and wireless network installed on the reserve has allowed staff to chronicle the pandas' daily activities. The data and images can be shared with colleagues around the world. The reserve conducts vital research on both panda breeding and bamboo ecology. Using the network, vets have been able to observe how infant pandas feed and suggest changes to improve the tiny cubs' chances of survival. "Digital technology has transformed the way we communicate and share information inside Wolong and with the rest of the world," said Zhang Hemin, director of the Wolong Nature Reserve. "Our researchers now have state-of-the-art digital technology to help foster the panda population and manage our precious surroundings." The network has been developed by Intel, working closely with the staff at Wolong. It includes a 802.11b wireless network and a video monitoring system using five cameras to observe pandas around the clock. Before the new infrastructure arrived at the panda park, staff walked or drove to deliver floppy disks across the reserve. Infant panda health was recorded on paper notebooks and research teams in the field had little access to the data. To foster cultural links across the globe, a children's learning lab has been incorporated in the network, in collaboration with Globio (Federation for Global Biodiversity Education for Children), an international non-profit organisation. It will enable children at local primary schools to hook up with their peers in Portland, Oregon in the US. "Digital technology brings this story to life by enabling a global dialogue to help bridge cultures around the world," said Globio founder Gerry Ellis.

Cebit opens to mobile music tune Cebit, the world's largest hi-tech fair, has opened its doors in Hanover for a look at the latest technologies for homes and businesses. There are more than 6,000 exhibitors registered and about 500,000 visitors are expected to pass through the doors. Third generation mobiles, the digital home and broadband are key themes at the show. Camera phones will get better resolutions as vendors set out to prove that bigger is definitely better. Samsung is set to steal some initial limelight with the launch of a 7-megapixel phone on the opening day. The SCH-V770 has some of the features of high-end digital single lens reflex cameras such as manual focus and the ability to attach a telephoto or wide-angle lens. Camera phones are likely to prove an interesting battle ground at the show, said Ben Wood, principal analyst at research firm Gartner. "It is firmly established that cameras are an integral part of phones and now the technology arms race is on in terms of megapixels. There will be a certain amount of 'look how big mine is'," he said. There will also be increasing focus on music-enabled mobiles. "At 3GSM in Cannes everyone went music mad and music is going to be a big theme for all the vendors at Cebit," said Mr Wood. Sony Ericsson will use the fair to show off the W800 - its recently unveiled Walkman branded phone - and there is speculation that Motorola may unveil its ROKR handset, widely tipped as the first to carry Apple's iTunes music software. Apple and Motorola announced they were getting together at the end of last year as a result of a long-standing friendship between Motorola's chief executive Ed Zander and Steve Jobs. Some analysts think Motorola may save the launch for CTIA, a wireless show in America the following week, which could be a telling sign about how operators are coming to view the German tech fair. "One of the interesting things is that CeBIT is clearly a show in decline," said Mr Wood. "A lot of the big players, such as Nokia, are pulling back saying it is hard to justify a big presence at all of the shows. It could be the last big year for Cebit," he said. Other themes include TV-enabled mobiles which are bound to create a buzz in the halls as Vodafone unveils a prototype handset that can show live digital television. There has been a glut of recent headlines about mobile TV - French operators are teaming up, O2 is trialling a system in Oxford, UK, and Nokia begins trialling a system in Finland with the Finnish Broadcasting Company, YLE TV and commercial TV channels. Cebit could become the battleground for the two competing methods for getting TV on to mobiles, and is also likely to provide a stage for a technology slated to compete with 3G. HSDPA (High Speed Downlink Packet Access) has been described as "3G on steroids" and could offer consumers much faster download times. For instance, a song which currently takes one and a half minutes to download to a phone could be done in 10 seconds. Korean giants LG Electronics and Samsung will show off HSDPA handsets at the show and the technology is set to be rolled out in the US, Europe and Korea next year. Broadband will continue to be a key theme at the show with internet telephony proving this year's killer application. Germany's largest online service provider, T-Online, is tipped to reveal software for low-cost net telephony which would see it competing with its parent company Deutsche Telekom. Cebit is used by many to unveil cutting edge products and in the mobile sphere this is likely to mean a lot of bright, colourful handsets as fashion continues to compete with technology when it comes to the device everyone has in their pockets. Rainbow-coloured phones, influenced by handsets from Japan, are just one example of how Asian companies will stamp their mark on this year's show, at which they will have their biggest ever presence. Cebit organisers have created a digital home in Hall 25 of the 27 hangar-like buildings that will house the show. "The digital home will be a hyped theme at the show. The house will be totally wired and full of things that can be used for home entertainment," said Cebit organiser Gabriele Dorries.

Labour's election love-in Peace and love have been in short supply in the Labour party in recent days. If press reports are to be believed, Alan Milburn and Gordon Brown have been at each other's throats over the contents of Labour's next election manifesto. But the pair were all smiles on Tuesday morning, as they joined John Prescott to unveil Labour's latest poster campaign. The event - at Old Billingsgate Fish Market on the banks of the Thames - was a carefully choreographed show of unity. And the surest sign yet that we are heading for a general election in the next few months. It was also one of the most bizarre photo opportunities of recent years. The first inkling something slightly odd was afoot was when - in place of the soft rock music normally chosen for such occasions - Labour's speakers crackled to life with the sound of Booker T and the MGs. Then a VW camper van trundled into view, decked out in that most mind-bending of psychedelic messages - "lowest mortgage rate for 40 years". As the side-door slid open, it looked for one glorious moment as if the Cabinet had decided to bury their differences and go on the road together, Scooby Doo-style. But, sadly, it wasn't the Cabinet who had raided the dressing-up box - just six rather ill-at-ease looking Labour students. Two were dressed as Regency dandies - to unveil a poster trumpeting "the longest period of economic growth for 200 years". Another pair of students were in a Beatle wig and Sgt Pepper jacket to highlight the "lowest interest rates since the 1960s". The remaining two were dressed in a vague approximation of disco chic to demonstrate the "lowest unemployment since the seventies". The politicians - led out by John Prescott - were soberly-suited as always. The event may have been designed to highlight Labour's economic success under Mr Brown, but there was little doubt who was in charge. The chancellor walked side-by-side with Mr Milburn, pointedly exchanging chit chat, as they approached the microphone. But it was Mr Milburn who took centre stage, speaking of the "positive campaign" the party hoped to stage in the "coming weeks and months". The mobile poster vans would "let people know Britain is working again". Mr Brown repeated the familiar mantras displayed on the posters and spoke of Labour's "shared purpose" and "united dedication". It was left to Mr Prescott to pay glowing tribute to the chancellor's record and, in a final flourish, to produce his famous pledge card, from 1997, claiming Labour has met all of its promises. The event was carefully stage-managed to underline Cabinet unity. And, more specifically, to demonstrate the "central role" Mr Brown will play in the election campaign, despite being sidelined as campaign chief in favour of Mr Milburn. But keen students of body language will have had a field day. There was much forced smiling for the cameras, but only Mr Prescott, who revels in such occasions, seemed to be truly enjoying himself. Mr Milburn made a point of turning to face the chancellor, as he spoke, nodding thoughtfully. But it was the former health secretary's final gesture, placing an arm on Mr Brown's back as they walked away from the microphones, which was perhaps the most telling. Thanks for dropping by Gordon, he might have been saying.

Kilroy names election seat target Ex-chat show host Robert Kilroy-Silk is to contest the Derbyshire seat of Erewash at the next general election. Labour's Elizabeth Blackman won the seat in 1997 and has a 6,932 majority. She says she will fight on her record "as a hard-working constituency MP". Mr Kilroy-Silk announced his plans a day after launching his new party, Veritas, the Latin for truth. The East Midlands MEP, who quit the UK Independence Party, wants his new group to "change the face" of UK politics. His choice of election constituency quashes speculation that he would stand against Defence Secretary Geoff Hoon in Ashfield, Nottinghamshire. UKIP won 31% of the vote in Erewash in last June's European elections - with Mr Kilroy-Silk among their candidates for the region. Until 1997, Erewash had been held by the Tories since 1970. Ms Blackman said she was proud of the government's achievements in the area. She declined to give her view of Mr Kilroy-Silk at this point. On Thursday, he told a London news conference that Veritas would avoid the old parties' "lies and spin". He said "our country" was being "stolen from us" by mass immigration and promised a "firm but fair" policy on immigration. Veritas says it hopes to contest most seats at the forthcoming general election but plans to announce detailed policies on crime, tax, pensions, health and defence over the next few weeks. UKIP leader Roger Knapman says he is glad to see the back of Mr Kilroy-Silk. Labour campaign spokesman Fraser Kemp said Veritas was joining "an already crowded field on the right of British politics". Mr Kilroy-Silk was joined in the new venture by one of UKIP's two London Assembly members, Damien Hockney, who is now Veritas' deputy leader. UKIP's chairman Petrina Holdsworth has said the group will just be a parody of the party the men have left. Mr Kilroy-Silk quit UKIP last week after months of tension as he vied unsuccessfully for the leadership of that party. He said he was ashamed to be a member of a UKIP whose leadership had "gone AWOL" after the great opportunity offered by its third place at last June's European elections. UKIP's leader, Roger Knapman, has said he is glad to see the back of Mr Kilroy-Silk. "He has remarkable ability to influence people but, sadly, after the [European] election it became clear that he was more interested in the Robert Kilroy-Silk Party than the UK Independence Party so it was nice knowing him, now 'goodbye'," he said. UKIP officials also argue Mr Kilroy-Silk has not been "straightforward" in attacking the party he once wanted to lead.

Celebrities get their skates on Former England footballer Paul Gascoigne will join EastEnders' actress Scarlett Johnson on BBC One's Strictly Ice Dancing. The one-off Christmas special will also star television presenter Carol Smillie and Jessica Taylor from Liberty-X. Each celebrity will be paired with a professional skater to impress a panel of judges and win the audience vote. The BBC is yet to confirm the final two stars who will battle it out to become Ice King or Queen. Veteran presenter Bruce Forsyth and Tess Daly will host the programme, which follows hot on the heels of the current Saturday night series Strictly Come Dancing. The celebrities will have to practise a stipulated ice dance and perform it at an ice rink with their partner. The judges will have 50% of the vote to decide who wins the contest, with the ice rink audience making up the rest of the vote. The show forms part of the BBC's festive schedule. Ice skating duo Jayne Torvill and Christopher Dean are to front a similar celebrity ice dance show for ITV, titled Stars on Thin Ice. The contestants on Stars on Thin Ice will each be paired up with a professional skater and will learn a new routine every week. At the end of the series, one celebrity will be crowned the winner.

Agassi fear for Melbourne Andre Agassi's involvement in the Australian Open was put in doubt after he pulled out of the Kooyong Classic with a hip injury. Agassi was serving at 5-6 down in the first set to fellow American Andy Roddick when he decided to bring a premature end to the match. "My hip was cramping and I just could not continue," said the 34-year-old. Agassi, who has won the Australian Open four times, will have an MRI scan to discover the extent of the damage. He said the problem was not the same as the hip injury which forced him to miss Wimbledon last year. "The good news is that it didn't just tear, it was tightening up and that can be your body protecting itself, which is hopefully more of the issue," he added. "That wasn't comfortable out there at all, what I was feeling. "I have to wait and see what I'm dealing with - it's a pretty scary feeling out there when something doesn't feel right and is getting worse. "It's very disappointing and I'll have to do my best to deal with it. Time will shortly tell if it (the Australian Open) is a possibility or not. "I was not counting on this being the end of the day for me. "Maybe in a few days I'll have a much better sense of what my hopes will be."

IBM frees 500 software patents Computer giant IBM says 500 of its software patents will be released into the open development community. The move means developers will be able to use the technologies without paying for a licence from the company. IBM described the step as a "new era" in how it dealt with intellectual property and promised further patents would be made freely available. The patents include software for a range of practices, including text recognition and database management. Traditional technology business policy is to amass patents and despite IBM's announcement the company continues to follow this route. IBM was granted 3,248 patents in 2004, more than any other firm in the US, the New York Times reports. For each of the past 12 years IBM has been granted more US patents than any other company. IBM has received 25,772 US patents in that period and reportedly has more than 40,000 current patents. In a statement, Dr John E. Kelly, IBM senior vice president, Technology and Intellectual Property, said: "True innovation leadership is about more than just the numbers of patents granted. It's about innovating to benefit customers, partners and society. "Our pledge today is the beginning of a new era in how IBM will manage intellectual property." In the past, IBM has supported the non-commercial operating system Linux although critics have said this was done only as an attempt to undermine Microsoft. The company said it wanted to encourage other firms to release patents into what it called a "patent commons". Adam Jollans, IBM's world-wide Linux strategy manager, said the move was a genuine attempt to encourage innovation. "We believe that releasing these patents will result in innovation moving more quickly. "This is about encouraging collaboration and following a model much like academia." Mr Jollans likened the plan for a patent commons to the way the internet was developed and said everyone could take advantage of the result of collaboration. "The internet's impact has been on everyone. The benefits are there for everyone to take advantage of." Stuart Cohen, chief executive of US firm Open Source Development Labs, said the move could mean a change in the way companies deal with patents. "I think other companies will follow suit," he said. But not everyone was as supportive. Florian Mueller, campaign manager of a group lobbying toprevent software patents becoming legal in the European Union,dismissed IBM's move as insubstantial. "It's just diversionary tactics," wrote Mr Mueller, who leadsnosoftwarepatents.com, in a message on the group's website. "Let's put this into perspective: We're talking aboutroughly one percent of IBM's worldwide patent portfolio. They filethat number of patents in about a month's time," he added. IBM will continue to hold the 500 patents but it has pledged to seek no royalties from the patents. The company said it would not place any restrictions on companies, groups or individuals who use them in open-source projects. Open source software is developed by programmers who offer the source code - the origins of the program - for free and allow others to adapt or improve the software. End users have the right to modify and redistribute the software, as well as the right to package and sell the software. Other areas covered by the patents released by IBM include storage management, simultaneous multiprocessing, image processing, networking and e-commerce.

Llewellyn plans Wales retirement Wales record cap holder Gareth Llewellyn will retire from Test rugby at the end of the Six Nations. The veteran lock, who is 36 at the end of February, told BBC Wales Scrum V that it is time for him to bring down the curtain on his 92-cap Wales career. Llewellyn is on a one-season deal with French club side Narbonne, but said he may consider retiring from all rugby. "I don't know what I'll do next year, whether to carry on playing or make a change in my career," Llewellyn said. "Narbonne are really keen for me to stay on for next year, so I've got to decide whether to stay on there or maybe go somewhere else, but ultimitely coaching is where I'd like to end up. "I've done all the coaching awards and everything you can do in that respect, so it's just hopefully getting a chance somewhere." Fellow locks Robert Sidoli and Brent Cockbain, who both scored tries in Saturday's Six Nations win in Italy, are Wales coach Mike Ruddock's preferred starters in the second row. With the resurgence of the Dragons' Ian Gough and the adaptibility of lock-cum-flanker Jon Thomas on the bench, Llewellyn has not yet made a match-day squad this Six Nations campaign. But the former Neath and Ospreys player is still targetting one last outing in the red shirt. "If I do get on the field then brilliant, although the boys are doing really well and I'm very pleased for them," Llewellyn added. "We've had some really tough years in Wales and the players have been through a hell of a lot. "Sometimes the easiest thing would have been to throw the towel in and walk away, but a few of us dug in there and it's really nice to see some of the boys getting the rewards now. "I was going to retire at the end of the last Six Nations, I'd even told some of the boys in the squad about it. "But Mike (Ruddock) asked me to carry on for another season, which I've done, still part of the squad, still trying to help them out as much as I can." Llewellyn made his Wales debut in 1989 against New Zealand as a 20-year-old, having caught the selectors' eyes in the All Blacks' tour match against Neath. The 6ft 6in player has not looked back since, going on to break Neil Jenkins' Wales cap record on 12 June 2004 in the 50-44 loss in Argentina. "There's been lots of highs - winning the Six Nations in '94, beating England in '93, I've been on some great tours and seen some fantastic countries," Llewellyn said. "But I think the best thing of all for me was the time I spent with the players, I've met some great guys in rugby and made some great friends. "It'll be a bit strange on international days having to find somewhere to watch Wales play, but at least I might have time to get my golf handicap down!" Llewellyn captained Neath for seven seasons, while being an integral part of the Neath-Swansea Ospreys regional side's first season. But with the Ospreys building for the future, Llewellyn was eventually forced to look to France for employment - digging in his heels during contract negotiations to insist he must be allowed to play for Wales.

Prime minister's questions So who, if anyone, is playing politics with the security of the nation? Michael Howard has no doubt it is the prime minister who, he claims, is "ramming" through Parliament the controversial new anti-terror measures without proper debate. He didn't say so, but the Tories believe the prime minister is playing the fear card on this one so he can look tough in the run up to the general election And they believe Tony Blair is using the issue to suggest the Tories are soft on terrorism. Why on earth will the prime minister not simply take up the Tories' offer to extend the existing powers temporarily to allow proper parliamentary debate of the laws, he demanded. The prime minister claims this is the clearest indication that it is the Tories who are playing politics with the issue by attempting to score cheap political points in parliament. Is not the opposition against to the proposed laws "in principle", in which case delaying a decision for further debate would be pointless? What this is really about, believes Mr Blair, is the Tories spotting an opportunity to embarrass, maybe even defeat the government. And that is more important to them than national security. Liberal Democrat leader Charles Kennedy avoided suggesting anyone was playing politics with the issue. He preferred to state that, as with other issues like ID cards, the government's immediate instinct was authoritarian. As is his habit nowadays, the prime minister was less rough with Mr Kennedy than he had been with Mr Howard - he prefers a more exasperated tone suggesting he believes the Lib Dems have, once again, just missed the point. Apart from all that, it was electioneering as usual. The very first question to the prime minister from Derby North's Bob Laxton asked him, in effect, if he would carry on the excellent policy of pouring more resources into schools. Later Birmingham's Sion Simon even went so far as to suggest the Tories were such a shower that we should have the general election now. The prime minister almost blushed. This was not the appropriate place to announce election day, he stammered. But can anyone be in any doubt that that announcement is just days away - an announcement coming in the week beginning 4 April for an election on 5 May is where the big money is in the Commons. And perhaps that simple fact alone means everyone is seen to be playing politics with just about everything at the moment.

EA to take on film and TV giants Video game giant Electronic Arts (EA) says it wants to become the biggest entertainment firm in the world. The US firm says it wants to compete with companies such as Disney and will only achieve this by making games appeal to mainstream audiences. EA publishes blockbuster titles such as Fifa and John Madden, as well as video game versions of movies such as Harry Potter and the James Bond films. Its revenues were $3bn (£1.65bn) in 2004, which EA hoped to double by 2009. EA is the biggest games publisher in the world and in 2004 had 27 titles which sold in excess of one million copies each. Nine of the 20 biggest-selling games in the UK last year were published by EA. Gerhard Florin, EA's managing director for European publishing, said: "Doubling our industry in five years is not rocket science." He said it would take many years before EA could challenge Disney - which in 2004 reported revenues of $30bn (£16bn) - but it remained a goal for the company. "We will be able to bring more people into gaming because games will be more emotional." Mr Florin predicted that the next round of games console would give developers enough power to create real emotion. "It's the subtleties, the eyes, the mouth - 5,000 polygons doesn't really sell the emotion. "With PS3 and Xbox 2, we can go on the main character with 30,000 to 50,000 polygons," he said. "With that increased firepower, the Finding Nemo video game looks just like the movie, but it will be interactive." Mr Florin said that more than 50% of all EA's games were sold to adults and played by adults, but the perception remained that the video game industry was for children. "Our goal is to bring games to the masses which bring out emotions." EA said the video game industry was now bigger than the music industry. "Nobody queues for music anymore." "You can't ignore an industry when people queue to buy a game at midnight because they are so desperate to play it," he said, referring to demand for titles for such as Grand Theft Auto: San Andreas and Halo 2. Jan Bolz, EA's vice president of sales and marketing in Europe, said the firm was working to give video games a more central role in popular culture. He said the company was in advanced stages of discussions over a reality TV show in which viewers could control the actions of the characters as in its popular game The Sims. "One idea could be that you're controlling a family, telling them when to go to the kitchen and when to go to the bedroom, and with this mechanism you have gamers all over the world 'playing the show'," said Mr Bolz. He also said EA was planning an international awards show "similar to the Oscars and the Grammys" which would combine video games, music and movies. Mr Bolz said video games firm had to work more closely with celebrities. "People will want to play video games if their heroes like Robbie Williams or Christina Aguilera are in them." Mr Florin said the challenge was to keep people playing in their 30s, 40s and 50s. "There's an indication that a 30 year old comes home from work and still wants to play games. "If that's true, that's a big challenge for TV broadcasters - because watching TV is the biggest pastime at present."

Italy 8-38 Wales Wales secured their first away win in the RBS Six Nations for nearly four years with a six-try victory in Rome. Tries from Jonathan Thomas, Tom Shanklin and Martyn Williams gave the visitors a 19-5 half-time advantage. Luciano Orquera did reply with one for Italy but second-half efforts from Brent Cockbain, Shane Williams and Robert Sidoli sealed victory. Fly-half Stephen Jones added four conversions as Wales maintained their superb start to this year's tournament. Starting full of confidence after their victory over England, the visitors scored the opening try after just four minutes. Diminutive wing Shane Williams fielded a kick ahead and danced past the onrushing Andrea Masi and Aaron Persico into the Italian half. His pass to Tom Shanklin appeared forward but when the centre was held up short, the ball was switched left and Michael Owen's long cut-out pass gave the lurking Thomas an easy run-in. Stephen Jones, who retained the kicking duties despite Gavin Henson's heroics against England, slotted an excellent conversion from wide out. Wales twice threatened further scores but failed to find the crucial pass, and Italy hit back out of the blue in the 11th minute. Henson, sporting gold boots rather than the silver variety that did for England, beat two players with ease out on the left touchline. But his attempted chip ahead was charged down by Orquera, who snaffled the loose ball and hared away from halfway to score in the right corner. With the Welsh line-out stuttering and Italy twice turning the visitors' scrum, the home side's forward power brought them back into it. But a clever high kick from Henson almost brought a try for Hal Luscombe when Roland de Marigny and Ludovico Nitoglia made a hash of claiming it as the ball bounced into touch. Wales regained control with a second try in the 21st minute, Henson lobbing up a high kick to the left corner where Shanklin jumped higher than Nitoglia to dot down his 15th Test try. Jones was unable to convert and De Marigny then hit the upright with a penalty attempt for Italy. Henson was also narrowly short with a long-range effort at goal, but Wales ended the half with a vital third score to give themselves some breathing space. Henson sent Luscombe streaking away and when he off-loaded to Martyn Williams, the flanker showed his nous to ground the ball against the padding of the post, Jones adding the conversion. Italy, who lost flanker Mauro Bergamasco with a head knock before half-time, built up a head of steam on the resumption. De Marigny landed a penalty to make it 19-8 and a Nitoglia break through the middle threatened a try only for the move to break down with a knock-on. But Wales put the outcome beyond doubt with two superb tries in four minutes before the hour. Their fourth after 53 minutes was sparked by another mazy run from Shane Williams, who beat several players with ease, and finished with a powerful angled run from lock Cockbain. Before Italy could recover from that blow, a strong surge from Gareth Thomas and great off-loads from Martyn Williams and replacement Kevin Morgan saw Shane Williams scamper over. With Jones converting both for a 33-8 lead, Wales had the luxury of sending on five more replacements for the final quarter. The icing on the cake came with a sixth try after more superb support work, Shane Williams and Ceri Sweeney combining to send Sidoli over in the left corner. The only downside for Wales was a hamstring injury suffered by Luscombe. But after back-to-back wins at the start of the tournament for the first time in 11 years, they will travel to Paris in a fortnight looking like genuine contenders. R de Marigny; Mirco Bergamasco, W Pozzebon, A Masi, L Nitoglia; L Orquera, A Troncon; A Lo Cicero, F Ongaro, M Castrogiovanni, S Dellape, M Bortolami (capt), A Persico, Mauro Bergamasco, S Parisse. G Intoppa, S Perugini, CA del Fava, D dal Maso, P Griffen, M Barbini, KP Robertson. G Thomas (capt); H Luscombe, T Shanklin, G Henson, S Williams; S Jones, D Peel; G Jenkins, M Davies, A Jones; B Cockbain, R Sidoli; J Thomas, M Williams, M Owen. R McBryde, J Yapp, I Gough, R Sowden-Taylor, G Cooper, C Sweeney, K Morgan. Andrew Cole (Australia).

Ireland v USA (Sat) Saturday 20 November Lansdowne Road, Dublin 1300 GMT The Irish coach knows a repeat of the record 83-3 victory over the States in 2000 is not on the agenda and expects a real test at Lansdowne Road. "Their coach Tom Billups will have them very organised," said O'Sullivan. "They ran five tries past the French in the summer, so we will not take them for granted. We have guys coming into the team who are chomping at the bit." The Irish line-up shows nine changes from the team which started against South Africa with winger Tommy Bowe and flanker Denis Leamy making their international debuts. The other changes see recalls for backs David Humphreys, Kevin Maggs and Guy Easterby with Eric Miller, Marcus Horan, Donnacha O'Callaghan and Frank Sheehan all returning to the pack. O'Sullivan said the players coming in had the opportunity to stake claims for inclusion against Argentina on 27 November. Easterby gets a rare start at scrum-half while Humphreys, now effectively Ronan O'Gara's deputy at fly-half, wins his 65th cap. "We have got to get the focus right on the day," said Ulster man Humphreys. "The US may be classed as weaker opposition, but we will treat them with the respect they deserve." The States lost 39-31 against France in their last international and are ranked 16th in world rugby. The Americans have made three changes, plus one positional switch from the game in July against the French. Lock Alec Parker, blind-side flanker Brian Surgener and right wing Al Lakomskis return and captain Kort Schubert of the Cardiff Blues shifts to number eight. Schubert is the only Eagles player remaining from the sides' meeting four years ago. G Murphy; S Horgan, B O'Driscoll (capt), K Maggs, T Bowe; D Humphreys, G Easterby; M Horan. F Sheahan, J Hayes, D O'Callaghan, P O'Connell, S Easterby, D Leamy, E Miller. S Byrne, S Best, L Cullen, A Foley, P Stringer, R O'Gara, G Dempsey. Viljoen; Lakomskis, Emerick, Sika, Fee, Hercus, Timoteo; MacDonald, Wyatt, Waasdorp, Parker, Klerck, Surgener, Petruzzella, Schubert (capt). Hobson, Osentowski, Gouws, Mo'unga, Williams, Sherman, Tuipulotu.

Reds sink 10-man Magpies Titus Bramble's own goal put Liverpool on the comeback trail as injury-hit Newcastle were well beaten at Anfield. Patrick Kluivert's close-range finish put Newcastle ahead after 31 minutes, but they were pegged back as Bramble headed in Steven Gerrard's corner. Neil Mellor gave Liverpool the lead before half-time from Milan Baros' pass before the Czech added a third after rounding Shay Given on the hour. Newcastle then had Lee Bowyer sent off for two bookable offences. Liverpool brought back Luis Garcia after a hamstring injury, while Newcastle were forced to draft in Kluivert after Craig Bellamy was a late withdrawal with a back injury sustained in the warm-up. And Garcia should have crowned his return with a goal inside the opening minute when he took a pass from Baros but shot wildly over the top from eight yards. Olivier Bernard was only inches away from giving Newcastle the lead after 20 minutes, when he fired just wide from a free-kick 25 yards out. But Souness's side did go ahead 11 minutes later in highly controversial circumstances. Kluivert looked suspiciously offside when Kieron Dyer set Bowyer free, but the Dutchman was then perfectly placed to score from six yards. The lead lasted three minutes, with Liverpool back on terms as Bramble headed Gerrard's corner into his own net under pressure from Sami Hyypia. And Liverpool were ahead after 37 minutes when Baros slid a perfect pass into Mellor's path for the youngster to slip a slide-rule finish into Given's bottom corner. Garcia's finishing was wayward, and he was wasteful again in first-half injury time, shooting tamely at Given after good work by Xabi Alonso. Any hopes of a Newcastle recovery looked to be snuffed out on the hour when a brilliant turn and pass by Harry Kewell set Baros free and he rounded Given to score. Jermaine Jenas then missed a glorious chance to throw Newcastle a lifeline, shooting over from just eight yards out from Shola Ameobi's cross. Then Bowyer, who had already been booked for a foul on Alonso, was deservedly shown the red card by referee Graham Poll for a wild challenge on Liverpool substitute Florent Sinama-Pongolle. Dudek, Finnan, Hyypia, Carragher, Riise, Luis Garcia (Nunez 73), Gerrard, Alonso, Kewell (Traore 85), Baros, Mellor (Sinama Pongolle 75). Subs not used: Hamann, Harrison. Bramble 35 og, Mellor 38, Baros 61. Given, Andrew O'Brien, Elliott, Bramble, Bernard, Bowyer, Dyer (Ambrose 80), Jenas, Milner (N'Zogbia 72), Kluivert (Robert 58), Ameobi. Subs not used: Harper. Bowyer (77). Bowyer, Elliott, Bernard. Kluivert 32. 43,856. G Poll (Hertfordshire).

Salary scandal in Cameroon Cameroon says widespread corruption in its finance ministry has cost it 1bn CFA francs ($2m; £1m) a month. About 500 officials are accused of either awarding themselves extra money or claiming salaries for "non-existent" workers. Prime Minister Ephraim Inoni, who vowed to tackle corruption when he came to office last year, said those found guilty would face tough punishments. The scam is believed to have begun in 1994. The prime minister's office said the alleged fraud was uncovered during an investigation into the payroll at the ministry. In certain cases, staff are said to have lied about their rank and delayed their retirement in order to boost their earnings. The prime minister's office said auditors had found "irregularities in the career structure of certain civil servants". It added that the staff in question "appear to have received unearned salaries, boosting the payroll". Fidelis Nanga, a journalist based in the Cameroon capital Yaounde, said the government was considering taking criminal action against those found guilty and forcing them to repay any money owed. "The prime minister has given instructions for exemplary penalties to be meted out against the accused and their accomplices if found guilty," he told the BBC's Network Africa programme. Mr Inoni launched an anti-corruption drive in December after foreign investors criticised a lack of transparency in the country's public finances. In one initiative designed to improve efficiency, civil servants who arrived late for work were locked out of their offices. The government now intends to carry out an audit of payrolls at all other government ministries. In a report compiled by anti-corruption body Transparency International in 2003, graft was said to be "pervasive" in Cameroon.

Japan narrowly escapes recession Japan's economy teetered on the brink of a technical recession in the three months to September, figures show. Revised figures indicated growth of just 0.1% - and a similar-sized contraction in the previous quarter. On an annual basis, the data suggests annual growth of just 0.2%, suggesting a much more hesitant recovery than had previously been thought. A common technical definition of a recession is two successive quarters of negative growth. The government was keen to play down the worrying implications of the data. "I maintain the view that Japan's economy remains in a minor adjustment phase in an upward climb, and we will monitor developments carefully," said economy minister Heizo Takenaka. But in the face of the strengthening yen making exports less competitive and indications of weakening economic conditions ahead, observers were less sanguine. "It's painting a picture of a recovery... much patchier than previously thought," said Paul Sheard, economist at Lehman Brothers in Tokyo. Improvements in the job market apparently have yet to feed through to domestic demand, with private consumption up just 0.2% in the third quarter.

Eurovision 'greats' to do battle Stars of the Eurovision Song Contest from the show's 50-year history are to compete against each other to celebrate the contest's anniversary. Viewers will choose 14 past songs to be performed by the original artists or others in the spirit of the originals. Past Eurovision performers include Abba, Celine Dion, Bucks Fizz, Nana Mouskouri, Lulu and Julio Iglesias. Fans will then vote as usual to pick the all-time best Eurovision song during the show in Denmark in October. The first contest was organised by the European Broadcasting Union, or EBU, in 1956, and has become an annual event pitting pop giants against musical minnows - with often surprising results. While some regard it as an essential celebration of continental talent, others see it as an equally unmissable parade of the reasons some countries do not normally produce international stars. The 50th annual contest will be held in Kiev, Ukraine, in May, after Ukrainian singer Ruslana won last year. The 50th anniversary special will be held in Denmark later this year because the Danish Broadcasting Corporation came up with the idea for the all-time contest. A plan to hold it in London was scrapped because of problems finding a suitable venue. Ireland has been the most successful country in the show's history with seven victories, followed by the UK, France and Luxembourg with five each.

Ethiopia's crop production up 24% Ethiopia produced 14.27 million tonnes of crops in 2004, 24% higher than in 2003 and 21% more than the average of the past five years, a report says. In 2003, crop production totalled 11.49 million tonnes, the joint report from the Food and Agriculture Organisation and the World Food Programme said. Good rains, increased use of fertilizers and improved seeds contributed to the rise in production. Nevertheless, 2.2 million Ethiopians will still need emergency assistance. The report calculated emergency food requirements for 2005 to be 387,500 tonnes. On top of that, 89,000 tonnes of fortified blended food and vegetable oil for "targeted supplementary food distributions for a survival programme for children under five and pregnant and lactating women" will be needed. In eastern and southern Ethiopia, a prolonged drought has killed crops and drained wells. Last year, a total of 965,000 tonnes of food assistance was needed to help seven million Ethiopians. The Food and Agriculture Organisation (FAO) recommend that the food assistance is bought locally. "Local purchase of cereals for food assistance programmes is recommended as far as possible, so as to assist domestic markets and farmers," said Henri Josserand, chief of FAO's Global Information and Early Warning System. Agriculture is the main economic activity in Ethiopia, representing 45% of gross domestic product. About 80% of Ethiopians depend directly or indirectly on agriculture.

US peer-to-peer pirates convicted The first convictions for piracy over peer-to-peer networks have been handed down in the US. New Yorker William Trowbridge and Texan Michael Chicoine have pleaded guilty to charges that they infringed copyright by illegally sharing music, movies and software. The two men faced charges following raids in August on suspected pirates by the FBI. The pair face jail terms of up to five years and a $250,000 (£130,000) fine. In a statement the US Department of Justice said the two men operated the central hubs in a piracy community organised across the Direct Connect peer-to-peer network. The piracy group called itself the Underground Network and membership of it demanded that users share between one and 100 gigabytes of files. Direct Connect allows users to set themselves up as central servers that act as co-ordinating spots for sharers. Users would swap files, such as films and music, by exchanging data over the network. During its investigation FBI agents reportedly downloaded 84 movies, 40 software programs, 13 games and 178 "sound recordings" from the five hubs that made up the larger piracy group. The raids were organised under the umbrella of Operation Digital Gridlock which was aimed at fighting "criminal copyright theft on peer-to-peer networks". In total, six raids were carried out in August. Five were on the homes of suspected copyright thieves and one on a net service firm. The Department of Justice said that both men pleaded guilty to one count of conspiracy to commit felony copyright infringement. They also pleaded guilty to acting for commercial advantage. The two men are due to be sentenced on 29 April.

Blair rejects Tory terror offer Tony Blair has rejected a Conservative compromise offer that could have eased the passage of anti-terror legislation. The Tories wanted a sunset clause inserted in the Anti-Terrorism Bill that would have forced ministers to revisit it in November. Mr Blair said the bill, which brings in house arrest for terror suspects, had time limiting safeguards already. The Tories say they will vote against it unless changes they want are agreed. The Lib Dems also oppose the plans. The government has already given way over the role of judges in house arrest cases. Mr Blair's refusal to accept the Tories' sunset clause proposals means that the government faces concerted opposition from all sides in the Lords. Peers begin three days of detailed deliberation on the bill on Thursday. The bill proposes "control orders", which as well as placing terrorism suspects under house arrest could mean curfews, tagging or bans on telephone and internet use. These would replace current powers to detain foreign terror suspects without trial, which the law lords have ruled against as a breach of human rights. The Tories want judicial oversight of all control orders, not just house arrest. Shadow Home Secretary David Davis told BBC Radio Four's the World at One his primary concern was potential miscarriages of justice. He said if someone was wrongly given a control order it would act as a "recruiting sergeant" for terrorists. He went on to say: "If we don't get the amendments we regard as essential, including the sunset clause, we will vote against the bill." In the Commons, Mr Howard said it would be "far better if the whole of the legislation was subject to a sunset clause so Parliament could consider it all in a proper way instead of it being ramrodded through". Mr Blair said the house arrest powers were already going to be subject to a sunset clause because it was annually renewable. The second, less stringent, type of control orders would be subject to a court appeal within 14 days and there would be a three-monthly report on their use by "an eminent and independent person". "I believe (the new powers) are a proper balance between the civil liberties of the subject and the necessary national security of this country that I will not put at risk," said Mr Blair. The Lib Dems plan to oppose the Bill in the Lords on Thursday. Lib Dem home affairs spokesman Mark Oaten said: "There's a lot of talking left. I would be uneasy about supporting a very bad bill even if it was just for eight months." A spokeswoman for Human Rights Watch said it was a "basic principle" that people should only be punished after a fair trial. She added: "Having a judge impose those punishments without a trial does not sanitise them either."

High fuel prices hit BA's profits British Airways has blamed high fuel prices for a 40% drop in profits. Reporting its results for the three months to 31 December 2004, the airline made a pre-tax profit of £75m ($141m) compared with £125m a year earlier. Rod Eddington, BA's chief executive, said the results were "respectable" in a third quarter when fuel costs rose by £106m or 47.3%. BA's profits were still better than market expectation of £59m, and it expects a rise in full-year revenues. To help offset the increased price of aviation fuel, BA last year introduced a fuel surcharge for passengers. In October, it increased this from £6 to £10 one-way for all long-haul flights, while the short-haul surcharge was raised from £2.50 to £4 a leg. Yet aviation analyst Mike Powell of Dresdner Kleinwort Wasserstein says BA's estimated annual surcharge revenues - £160m - will still be way short of its additional fuel costs - a predicted extra £250m. Turnover for the quarter was up 4.3% to £1.97bn, further benefiting from a rise in cargo revenue. Looking ahead to its full year results to March 2005, BA warned that yields - average revenues per passenger - were expected to decline as it continues to lower prices in the face of competition from low-cost carriers. However, it said sales would be better than previously forecast. "For the year to March 2005, the total revenue outlook is slightly better than previous guidance with a 3% to 3.5% improvement anticipated," BA chairman Martin Broughton said. BA had previously forecast a 2% to 3% rise in full-year revenue. It also reported on Friday that passenger numbers rose 8.1% in January. Aviation analyst Nick Van den Brul of BNP Paribas described BA's latest quarterly results as "pretty modest". "It is quite good on the revenue side and it shows the impact of fuel surcharges and a positive cargo development, however, operating margins down and cost impact of fuel are very strong," he said. Since the 11 September 2001 attacks in the United States, BA has cut 13,000 jobs as part of a major cost-cutting drive. "Our focus remains on reducing controllable costs and debt whilst continuing to invest in our products," Mr Eddington said. "For example, we have taken delivery of six Airbus A321 aircraft and next month we will start further improvements to our Club World flat beds." BA's shares closed up four pence at 274.5 pence.

Anti-spam laws bite spammer hard The net's self-declared spam king is seeking bankruptcy protection. Scott Richter, the man behind OptInRealBig.com and billions of junk mail messages, said lawsuits had forced the company into Chapter 11. OptInRealBig was fighting several legal battles, most notably against Microsoft, which is pushing for millions of dollars in damages. The company said filing for Chapter 11 would help it try to resolve its legal problems but still keep trading. Listed as the third biggest spammer in the world by junk mail watchdog Spamhaus, OptInRealBig was sued in December 2003 for sending mail messages that violated anti-spam laws. The lawsuit was brought by Microsoft and New York attorney general Eliot Spitzer who alleged that Mr Richter and his accomplices sent billions of spam messages through 514 compromised net addresses in 35 countries. According to Microsoft the messages were sent via net addresses owned by the Kuwait Ministries of Communication and Finance, several Korean schools, the Seoul Municipal Boramae Hospital, and the Virginia Community College System. Mr Richter settled the attorney general case in July 2004 but the legal fight with Microsoft is continuing. Microsoft is seeking millions in dollars in damages from OptInRealBig under anti-spam laws that impose penalties for every violation. In a statement announcing the desire to seek bankruptcy protection the company said it: "could not continue to contend with legal maneuvers (sic) by a number of companies across the country, including Microsoft, and still run a viable business." In its Chapter 11 filing OptInRealBig claimed it had assets of less than $10m (£5.29m) but debts of more than $50m which included the $46m that Microsoft is seeking via its lawsuit. "The litigation has been a relentless distraction with which to contend," said Steven Richter, legal counsel for OptInRealBig. "But, make no mistake, we do expect to prevail." For its part OptInRealBig describes itself as a premier internet marketing company and said the move to seek Chapter 11 was necessary to let it keep trading while sorting out its legal battles.

Wales 'must learn health lessons' The new health minister for Wales says there are lessons to learn from England in tackling waiting lists. Dr Brian Gibbons, on his first full day in the job after Jane Hutt was sacked, admitted "big challenges" but insisted the "essentials" were in place. But both Plaid Cymru and the Liberal Democrats said Dr Gibbons needed to change policy. Meanwhile Ms Hutt defended her record, saying waiting times and lists were "only 10% of the health agenda. Dr Gibbons, who was a GP in Blaengwynfi, in the Upper Afan Valley, before becoming AM for Aberavon, said NHS staff wanted a period of consolidation after "tremendous change and reform". One of the biggest problems which had faced Ms Hutt during her five-and-a-half years as the assembly's first health minister was the length of waiting lists in Wales. In November the British Medical Association said NHS staff were "weeping with despair" as figures showed 311,000 people were waiting for treatment in Wales, up by 2,400 on the previous month. In the same month lists in England were at their lowest for 17 years, with 856,600 people waiting for treatment. Dr Gibbons told Radio Wales: "There is no doubt that, in managing waiting lists, England has done a lot of very very useful work, and we do need to learn from that." But he said the NHS in Wales also needed to create a healthier population rather than respond only to ill health, and a balanced view of priorities was important. "We do need a consistent across-the-board approach, recognising the patients' experience of how they use the service is going to be, at the end of the day, the main test of how the service is working." He said NHS staff wanted a period of consolidation after "tremendous change and reform". Later, Dr Gibbons praised the work of Ms Hutt, saying he "agreed with everything she's done" to change the health service in Wales. Dr Gibbons said he accepted there was a problem, but his job now was to build on the foundations put in place by his predecessor. He also acknowledged that until the waiting list issue was sorted out, the rest of the assembly government's health policy would be overshadowed. Opposition members and some Labour MPs had long called for Ms Hutt's removal after sustained criticism over extended hospital waiting times. First Minister Rhodri Morgan told BBC Wales he had agreed with Ms Hutt in 2003 that she would not be health minister in the run-up to the 2007 elections. "She's been doing the job for five years and eight months and, apart from Nye Bevan himself, (architect of the NHS), I don't think anybody has ever done the job for so long." Mr Morgan said he had only told Ms Hutt of the reshuffle on Monday morning, and said the NHS in Wales was Dr Gibbons' "baby" now. In response to Dr Gibbons' comments, Ieuan Wyn Jones, leader of the Plaid Cymru group in the assembly, said: "It is apparent that this reshuffle by the first minister was just changing the deckchairs on a sinking Titanic." Kisrty Williams, for the Lib Dems, added: "If the underlying policy is going to continue, then changing the minister will serve no purpose, other than to deflect flak from Labour's MPs," she said. Meanwhile Ms Hutt said she hoped "that the people of Wales would benefit from my investment of the past five years and eight months" Asked about waiting lists, she said that waiting times and lists were "only 10% of the health agenda" and that the Welsh Assembly Government had "turned the corner" on the issue.

Profile: David Miliband David Miliband's rapid rise through the ranks of government continues with his promotion to Cabinet Office minister. Elected in a safe Labour seat in 2001 his previous job was school standards minister - a role he won in May 2002. Prior to the last election he was a key figure in New Labour as the head of the Downing Street policy unit where he was a key member of the manifesto writing team. Seen as one of the more intellectual figures in the government, he was also working for Tony Blair in his policy unit when he was leader of the opposition. A brief glance at Mr Miliband's family background reveals an impressive socialist pedigree in the form of his father Ralph, who died in 1994. He was an eminent and influential leftwing academic. And while David Miliband is seen as a key Blair lieutenant his brother Ed is a special advisor to Chancellor Gordon Brown. Prior to working for Mr Blair, David Miliband spent time at the left-leaning Institute for Public Policy Research. He then became secretary of the Commission on Social Justice. The 39-year-old was educated at Haverstock Comprehensive before going on to Oxford to study politics, philosophy and economics. He also took an MSc in political science from the Massachusetts Institute of Technology.

Owen set for skipper role Wales number eight Michael Owen says replacing Gareth Thomas as Wales' captain will be straightforward because of the leadership quality in the squad. "You dream about playing for Wales, but it never enters your head that you will one day captain your country," he said. "It's an easy job really because there are so many experienced players in the side, but it will be a massive honour." Coach Mike Ruddock says the 24-year-old should take the armband from broken thumb victim Thomas against Scotland. Ruddock praised Owen's contribution as vice-captain and pack leader in this year's wins over England, Italy and France, notably his role in the second-half in Paris following Thomas' injury. The 22-cap Dragons man says that Thomas will be badly missed, though. "Gareth is going to be a massive loss because he is a brilliant player and he has done a fantastic job since he has been captain," said Owen. "He has put his own unique stamp on things. We are going to miss him but the strength of the squad is shown when you have someone like Kevin Morgan to step in." Owen admitted the Grand Slam had been mentioned within the squad but that no-one was getting carried away with the three victories over England, Italy and France. "We can't get ahead of ourselves," he said. "We have a massive game next up and we are just looking forward to preparing for that. "Scotland are improving all the time. Like us they did well in France and were unlucky not to get a win. "Against Ireland they played fantastically well in the first 15 minutes before falling away. "They are probably going on a similar journey to the one we have been on in the last couple of years."

Black Sabbath top rock album poll Black Sabbath have topped a list of the best British rock albums of all time. The band once fronted by Ozzy Osbourne led a poll of Kerrang! magazine readers with their 1970 self-titled debut. The band have three more efforts on the list, including fifth-placed Paranoid. Osbourne appears more than any other act, with two solo records featured. The top five includes Led Zeppelin, Iron Maiden and Sex Pistols. Queen, Muse, Manic Street Preachers and The Clash complete the top 10. A mix of heavy metal, punk, glam rock and even dance music makes up the list. Motorhead, Judas Priest and Prodigy are included along with newer acts like The Darkness and Lostprophets. Kerrang! editor Ashley Bird said: "It's amazing to see so many incredible homegrown albums in one list, and without any of the abysmal fashion bands that currently clog up the music scene. "These are the real opinions of proper rock fans." Formed by four teenage friends in the West Midlands in the late 1960s, Black Sabbath are one of Britain's most successful heavy rock bands. Their debut was a UK top 10 hit in 1970 and sold more than a million copies in the US. Osbourne said the band's success in the Kerrang! poll was a triumph for British rock. He said: "Back then you'd hear: 'If you go to San Francisco, be sure to wear a flower in your hair'. "We lived in Aston, Birmingham. The only flowers I ever saw were on a gravestone in our local cemetery." Despite being disliked by many critics, Black Sabbath's subsequent albums included multi-million sellers but internal rows led to Osbourne leaving in 1979. The band continued without Osbourne, who went on to solo success but also had to battle alcoholism and legal action over his music allegedly inciting teenagers to commit suicide. He was eventually cleared of the charges. Osbourne, who bit off the head of a live bat on stage in 1982, rejoined the band to play the Live Aid charity concert in 1985. After many changes in line-up, the original four members reunited to play live dates in 1997. Black Sabbath have reunited regularly in recent years while Osbourne has gone on to wider fame with his family through MTV documentary series The Osbournes.

Lloyd's of London head chides FSA The head of Lloyd's of London, the insurance market, has criticised Britain's financial watchdog, the Financial Services Authority (FSA). In a speech on Monday, Mr Prettejohn urged the FSA to force brokers to disclose the size of their commissions. "The FSA should change, and change now" said Mr Prettejohn, who wants it to move from "disclosure on request" to mandatory disclosure. The call came in a speech on improving the London insurance market. "The FSA should not bide their time and 'wait and see'. They should seize the moment," Mr Prettejohn, Lloyd's chief executive said. The FSA took over regulation of the general insurance sector in January, but it sidestepped calls to require brokers to disclose the commissions they earn from insurers to their clients. Last week, the City watchdog gave brokers and insurers guidance on managing conflicts of interest. Brokers must give information on their commissions if, and only if, their customers request it, the FSA said. In the US, lack of transparency about brokers' commissions has led to problems. The world's biggest insurance broker Marsh & McLennan said last week it would pay $850m to settle charges, raised by New York Attorney General Eliot Spitzer in October, that it sought to rig bids in conjunction with insurers. The probe centred around so-called contingent commissions, whereby brokers were rewarded according to how much business they brought to an insurer, an arrangement that did not always benefit brokers' customers. All of the insurance business written in the Lloyd's market is placed via brokers.

TV presenter Deeley drops CD:UK Cat Deeley has resigned as host of ITV1's Saturday morning children's music show CD:UK after six years. The 28-year-old host who also presents Stars In Their Eyes said she wanted to concentrate on new television projects. "I've had a great few years, met some really incredible people and been given some wonderful opportunities," the presenter said. Deeley will host her last show on 5 March and guest presenters will stand in until a replacement is found. The long-running presenter said: "I would like to take this opportunity to thank the CD:UK team and all the viewers that have watched, supported the show and let me gate crash their Saturday morning. "Whilst obviously I am really sad to say goodbye, I'm immensely excited about the future." Deeley formerly co-hosted SM:tv, the children's show which airs before CD:UK on a Saturday morning, alongside hit presenters Ant and Dec. She won a Children's Bafta award for best presenter in December 2001 and also fronted BBC One's Fame Academy series.

Holmes secures comeback victory Britain's Kelly Holmes marked her first appearance on home soil since winning double Olympic gold with 1500m victory at the Norwich Union International. Holmes hit the front just before the bell in front of a sell-out crowd in Glasgow and cruised to victory in a time of four minutes 14.74 seconds. "It was nice to get that out of the way. I was nervous about whether I would actually be able to get round. "I felt good. I just had to relax and use my racing knowledge," said Holmes. "It was all about winning in front of my home crowd. The time is irrelevant. "I got round in one piece and didn't disgrace myself. Now it's about going forward. "The reception I've had since the Olympics has been amazing and that's why I wanted to keep running this year, because I get a buzz from the crowd." Holmes ran a tactically perfect race to finish clear of France's Hind Dehiba and Russia's Svetlana Cherkasova. The Olympic 800m and 1500m champion's time was inside the qualifying mark for the European Indoor Championships in Madrid in March. But the 34-year-old would not reveal whether she intended to run or not, having previously indicated she would leave a decision until after the Birmingham Grand Prix on 18 February.

Top of the Pops leaves BBC One The BBC's flagship pop music programme Top of the Pops is to move from BBC One on Fridays to Sundays on BBC Two. The new programme will combine with archive show TOTP2, mixing new music with footage of classic bands. The corporation said the new show "aims to appeal to a diverse audience of music lovers". The move is the biggest shake-up in the history of the show, which was first broadcast in 1964 and has always been on BBC One. Top of the Pops was relaunched in a blaze of publicity in December last year in an attempt to reverse a long-term decline in audience figures. The All New Top of the Pops was fronted by newcomer Tim Kash and was put together by producer Andi Peters, who was brought back to the BBC from Channel 4 to revitalise the series. About three million people a week were watching the show on Fridays - less than half the total it was attracting in the mid-1990s - as the programme went up against popular ITV soap Coronation Street. But despite the relaunch audience figures failed to rise and still remain around the three million mark. Tim Kash has since been replaced as host by Fearne Cotton. The new show will launch in Spring next year in an extended format. BBC Two controller Roly Keating: "It's an exciting new era for Top of the Pops. We want to make it bigger and better so that it becomes the ultimate pop music show for music lovers of every generation." Mr Keating described BBC Two as the "natural home" of Top of the Pops. He added: "The addition of Top of the Pops will also extend BBC Two's offering to younger audiences." A BBC spokeswoman said Andi Peters would continue as executive producer on the show. She said that issues over the exact format of the programme and a time slot were still to be decided. The programme will have a close relationship with the BBC Radio 1 chart show, which suggests the relaunched show may be transmitted at about 1900 on Sundays. "Hopefully the audience for Top of the Pops will find it on BBC Two. "We think that the new slot will create a buzz around the programme as for the first time viewers will discover the news of who is number one as it happens."

Kinnock to urge reform in Lords Neil Kinnock has said his acceptance of a seat in the House of Lords will allow him to help "achieve further progress with substantial democratic reform." On the BBC's Breakfast with Frost it was put to Mr Kinnock that he had once referred to Lords members as "brigands, muggers, bribers and gangsters". But the outgoing European Commissioner said his comments - made some 26 years ago - needed to be put in context. He said advocates for reform needed to be inside the Lords to vote for it. "It was pointed out to me that if the additional democratic reform is going to take place it is going to require advocates in the Lords and people there willing to vote for it." Mr Kinnock added that the second factor behind his acceptance of the peerage was his appointment as chairman of the British Council. "History demonstrates that it's immensely useful for the British Council to have its chairman in the House of Lords and that was a conclusive factor." Mr Kinnock said he thought about the decision for "quite a long time" because he had long had reservations about the Lords. But he added: "The process of reform has developed substantially but not sufficiently, and consequently I did take all these factors into consideration because it's not a decision to be made glibly." The former Labour leader said he would probably take the title of Lord Kinnock of Bedwellty - his first constituency for which he was selected in 1969.

Profits stall at China's Lenovo Profits at Chinese computer firm Lenovo have stood still amid slowing demand at home and stiffening competition. The firm is in the international spotlight after last year signing a deal to buy the PC division of personal computer pioneer IBM. Lenovo's profit for the three months to December was HK$327m (US$42m; £22m), less than 1% up on the year before. Chinese PC sales have risen by a fifth in each of the past two years, but are now growing more slowly. The company is still by far the biggest player in China, with more than a quarter of the market. But Western firms such as Dell and Hewlett-Packard are also mounting a more solid fight for market share in China, and Lenovo's sales were down 3.7% by revenue to HK$6.31bn. If the $1.75bn agreement Lenovo signed with IBM on 8 December goes through, it will mark the end of an era. IBM pioneered the desktop PC market in the early 1980s, although strategic mis-steps helped lose it its early dominance. In any case, margins in PC market are now wafer thin, and profits have been hard to come by for most vendors except direct-sales giant Dell. But investors have been less than impressed with Lenovo's move, designed to take it out of China and further onto the world stage. Its shares are down 20% since the announcement two months ago, largely because of the unprofitability of the unit it is buying. There have been rumours that the deal could be in trouble because US government agencies fear it could offer China opportunities for industrial espionage. The reports of the possibility of an investigation into the risk sent Lenovo's shares up 6% in late January.

Digital guru floats sub-$100 PC Nicholas Negroponte, chairman and founder of MIT's Media Labs, says he is developing a laptop PC that will go on sale for less than $100 (£53). He told the BBC World Service programme Go Digital he hoped it would become an education tool in developing countries. He said one laptop per child could be " very important to the development of not just that child but now the whole family, village and neighbourhood". He said the child could use the laptop like a text book. He described the device as a stripped down laptop, which would run a Linux-based operating system, "We have to get the display down to below $20, to do this we need to rear project the image rather than using an ordinary flat panel. "The second trick is to get rid of the fat , if you can skinny it down you can gain speed and the ability to use smaller processors and slower memory." The device will probably be exported as a kit of parts to be assembled locally to keep costs down. Mr Negroponte said this was a not for profit venture, though he recognised that the manufacturers of the components would be making money. In 1995 Mr Negroponte published the bestselling Being Digital, now widely seen as predicting the digital age. The concept is based on experiments in the US state of Maine, where children were given laptop computers to take home and do their work on. While the idea was popular amongst the children, it initially received some resistance from the teachers and there were problems with laptops getting broken. However, Mr Negroponte has adapted the idea to his own work in Cambodia where he set up two schools together with his wife and gave the children laptops. "We put in 25 laptops three years ago , only one has been broken, the kids cherish these things, it's also a TV a telephone and a games machine, not just a textbook." Mr Negroponte wants the laptops to become more common than mobile phones but conceded this was ambitious. "Nokia make 200 million cell phones a year, so for us to claim we're going to make 200 million laptops is a big number, but we're not talking about doing it in three or five years, we're talking about months." He plans to be distributing them by the end of 2006 and is already in discussion with the Chinese education ministry who are expected to make a large order. "In China they spend $17 per child per year on textbooks. That's for five or six years, so if we can distribute and sell laptops in quantities of one million or more to ministries of education that's cheaper and the marketing overheads go away."

Royal couple watch nation's mood Prince Charles and Camilla Parker Bowles are awaiting the nation's reaction after announcing they are to be married on 8 April. Mrs Parker Bowles will take the title HRH Duchess of Cornwall after a civil ceremony to be held at Windsor Castle. A Daily Telegraph poll of 1,313 people suggests two-thirds of Britons support the couple's decision to marry. But only 40% think Mrs Parker Bowles should become Princess Consort as planned after Charles becomes king. Some 47% believe she should have no title, while 7% think she should become queen. The poll also found that the majority of Britons would prefer the monarchy to miss a generation, with the Queen handing the throne to her grandson Prince William, 22, on her death or abdication. On Thursday night, Prince Charles, 56, and Mrs Parker Bowles, 57, hosted a dinner at Windsor Castle, their first public appearance since announcing their engagement. Mrs Parker Bowles said the prince went down on one knee to propose and added: "I'm just coming down to earth." She displayed her diamond engagement ring - a Royal Family heirloom - to reporters. Charles said he and his wife-to-be were "absolutely delighted". Their marriage will end years of speculation on a relationship which dates back to 1970. The Queen and Duke of Edinburgh said the news had made them "very happy". Princes William and Harry said they are "very happy" and wish the couple "all the luck in the future". The wedding will be a civil ceremony followed by a service of prayer and dedication in St George's Chapel at which the Archbishop of Canterbury, Dr Rowan Williams, will preside. The marriage is likely to be a sensitive issue because Mrs Parker Bowles is divorced and her former husband is still alive. If he became king, Charles would be the supreme governor of the Church of England and some Anglicans remain opposed to the remarriage of divorcees. "His divorce from Diana and the disappointment the country felt over how Diana had been treated... opened up a sense of disillusionment with [Prince Charles]," said Ros Coward, who wrote the authorised biography of Diana, princess of Wales. The Archbishop of Canterbury said: "I am pleased that Prince Charles and Mrs Camilla Parker Bowles have decided to take this important step." Tony Blair said he was "delighted" for the couple and offered his congratulations, as did Conservative leader Michael Howard and Liberal Democrat leader Charles Kennedy. Australia's Prime Minister John Howard also offered his congratulations, adding that their decision to marry was a "sensible and a good thing". Mrs Parker Bowles has joined the prince at numerous engagements in recent years - mostly at evening events for The Prince's Trust. Clarence House staff were at pains to point out that she attended these events in a private capacity.

Levy takes Whitbread novel prize Orange Prize winner Andrea Levy has seen her book Small Island win the Whitbread Novel of the Year Award. She is now favourite to win the overall prize after beating Booker winner Alan Hollinghurst's The Line of Beauty. Geraldine McCaughrean has picked up the children's fiction award for the third time for Not the End of the World. All the category winners go through to compete for the Whitbread Book of the Year title, which carries with it a £25,000 prize. A panel of judges including Sir Trevor McDonald, actor Hugh Grant and writer Joanne Harris will meet up on 25 January to decide the overall winner, with the announcement being made later that evening. Bookmaker William Hill has placed London-based Levy's novel as the 6/4 favourite to win. Small Island, Levy's fourth novel, is set in post-war England and centres on a landlady and her lodgers. One is a Jamaican who joined British troops to fight Hitler but finds life difficult out of uniform when he settles in London. The judges, who included authors Jenny Colgan and Amanda Craig, were full of praise for her writing. "What could have been a didactic or preachy prospect turns out to hilarious, moving humane and eye-popping. It's hard to think of anybody not enjoying it," wrote the judges. The first novel section was won by Susan Fletcher for Eve Green, beating the favourite Jonathan Strange and Mr Norrell by Susanna Clarke. Fletcher has recently graduated from graduated from the University of East Anglia creative writing course. Waterstone's fiction writer buyer Suzie Doore said: "It is great to see Susan Fletcher win in the first novel category. As a relatively unknown author this award will give her exposure to a wider and mass audience that she may not have reached and is a perfect example of the influence of the Whitbread. "Fresh out of university she is certainly one to watch." In the biography category it was John Guy's The Life of Mary Queen of Scots that was picked as winner. The judges called it "an impressive and readable piece of scholarship, which cannot fail but leave the reader moved and intrigued by this most tragic and likeable of queens". Guy has published many histories, including Tudor England. He is a fellow at Clare College, Cambridge and became a honorary research professor of the University of St Andrews in 2003. Michael Symmons Roberts' fourth collection of poems scooped the poetry award. His works mixes mysticism, erotica and philosophy through life, death and resurrection. As well as writing poetry, Symmons Roberts also makes documentary films. Children's winner McCaughrean, who went into magazine publishing after studying teaching, previously won the Whitbread Prize in 1987 with A Little Lower than Angels and in 1994 with Gold Dust. She has previously been the winner of the Blue Peter Book of the Year.

Warnings on woeful wi-fi security Companies are getting worse at keeping their wireless data networks secure. A survey of wi-fi networks in London, Frankfurt, New York and San Francisco by RSA Security found more than a third had basic security features turned off. By contrast last year's survey found that 15% of firms had failed to take basic steps to improve security. RSA warned that wi-fi's growing popularity made it much more likely that insecure networks would be found and exploited. Wireless or wi-fi networks have become hugely popular over the last few years in offices because they are easy to set up and make going online much more convenient. This popularity shows no sign of slowing reveals the annual RSA Security and NetSurity survey which found an annual 66% growth rate in the number of wireless nets being installed in London and Frankfurt. Although most firms do take steps to turn on the security functions built in to the wi-fi standard and protect themselves from attack, the survey found that a significant proportion were taking unnecessary risks. On average 33% of the wireless networks found by RSA and NetSurity researchers in London, Frankfurt, New York and San Francisco had not used basic security systems. Many firms were simply turning on their wireless net access points and use default settings that anyone familiar with wi-fi could easily find out. RSA said that 26% of wi-fi networks found London used default settings compared to 30% in Frankfurt, 31% in New York and 28% in San Francisco. Many users of wi-fi nets did not even turn on the encryption that scrambles data traffic between users and the access point helping them go online. This is despite a series of stories warning firms about the dangers of "drive-by hacking" in which computer criminals walk or drive around city centres using easy to use tools to spot wi-fi nets. "These figures are another stark warning to unsecured businesses to get their act together," said Phil Cracknell, chief technology officer at NetSurity. As more public wi-fi hotspots appear and people become more familiar with using them, it was getting more likely that insecure would be found, warned Mr Cracknell. "Accidental or intentional connection to a corporate network can bring with it a series of security issues including loss of confidential data and installation of malicious code," he said.

Howard taunts Blair over splits Tony Blair's feud with Gordon Brown is damaging the way the UK is governed, Tory leader Michael Howard has claimed in a heated prime minister's questions. Mr Howard asked: "How can they fight crime when they are fighting each other?" That question was later unveiled as the headline for new Tory campaign posters. But Mr Blair dismissed the talk of splits and said people's priorities at the next elections would be on the economic successes achieved by Labour. "He can stick up whatever he likes on billboards about something in a book but what the public will concentrate on are the low mortgages, low inflation, low unemployment that we delivered and that he failed to," he said. The chancellor is currently on a high-profile tour of Africa to highlight new anti-poverty plans. But before doing so, he insisted he still trusted Mr Blair, despite claims to the contrary in a new book. Brown's Britain, by Robert Peston, says there is mutual animosity between the two men. It claims Mr Blair said in November 2003 he would stand down as prime minister before the next election. But he went back on his pledge after support from Cabinet allies and suspicion that Mr Brown was manoeuvring against him, it says. Mr Peston's book claimed that Mr Brown told Mr Blair: "There is nothing you could ever say to me now that I could ever believe." Mr Blair directly denied that quote on Wednesday. He again insisted there could be no deals about the premiership but twice declined directly to say whether or not he had offered to quit. The Tory leader countered that such agreements had been struck twice at dinners with the chancellor. He declared: "He is the deals on meals prime minister. No wonder the chancellor is not a happy eater." He continued: "How can there be discipline in schools when there is no discipline in government, how can they clean up our hospitals when they don't clean up their act?" Mr Blair said he would not respond to "tittle tattle in books" and promised to hail Labour's record on the economy, waiting lists and law and order "from now until polling day". Later at their poster launch Tory co-chairman Liam Fox said his party would exploit opportunities to show how "juvenile" the prime minister and chancellor were. Labour staged a show of unity at its own poster launch on Tuesday, where Mr Brown was joined by Alan Milburn, who Mr Blair controversially put in charge of election planning in place of the chancellor. But Liberal Democrat leader Charles Kennedy told BBC News: "The government is clearly split at the top. This kind of cosmetic exercise does not persuade anybody." Later this week Mr Blair is expected to outline the direction of his party's next election manifesto. The prime minister and chancellor faced backbench discontent at Monday's meeting of the Parliamentary Labour Party over claims made Mr Peston's book.

Parry puts Gerrard 'above money' Listen to the full interview on Sport on Five and the BBC Sport website from 1900 GMT. But Parry, speaking exclusively to BBC Sport, also admits Gerrard, who has been constantly linked with Chelsea, will have the final say on his future. He told BBC Five Live: "Steven is above money. He is the future of Liverpool. "It doesn't matter if it's £30m, £40m or £50m, we will not accept offers. But we are also realistic enough to know we can't keep Steven against his will." On the subject of Liverpool's finances, Parry also revealed the club is ready to explore the possibility of a sponsorship deal for its proposed new stadium. And responding to criticism from BBC Sport pundit and former Liverpool stalwart Alan Hansen, he insisted talks on new investment are ongoing, but added the door has not closed on shareholder and lifelong fan Steve Morgan. Parry joined Liverpool as chief executive in July 1998 from a similar role at the Premier League. There have been several highs and lows during his time in charge at Anfield - and he had a busy summer, overseeing the arrival of new manager Rafael Benitez and managing to hold on to Steven Gerrard. On the subject of Liverpool's captain and prize asset, Parry revealed Real Madrid did ask for an option on the England midfield man during negotiations for striker Fernando Morientes. He said: "They were looking for ways of saying they got more out of the deal for Fernando Morientes, but the response to Real Madrid was the same - Steven is not for sale." But when asked if Gerrard would be a Liverpool player on the first day of next season, Parry said: "I sincerely hope he will be. Steven knows my views. He knows Rafa's views. "We have re-affirmed recently to Steven that we are trying to build a team around him. We crave success as much as he does. We know he's ambitious and nobody can argue with that. "I think Steven would dearly love to win things with Liverpool more than he'd like to do anything else. "We all want to see progress by next season. He's not alone in that. There are a lot of other players who feel the same, so we all have a common aim." It is expected Chelsea will test Liverpool with a £30m-plus bid in the summer - but Parry claims he will be in no mood to listen. "There have been a lot of open secrets about Steven, most of which have been complete myths. It is suggested we had a deal tied up last summer. We didn't had an offer last summer," Parry explained. "We had told Chelsea that as far as we were concerned he was not for sale and we didn't want to sell him. In reality it didn't go beyond that. "Maybe there will be an offer in the summer. Maybe there won't. "Our position is we want Steven to stay, but we are also realistic enough and have enough respect for Steven - and he has enough respect for us - to know that it is his decision that will be crucial. "You are not going to keep a player like Steven against his will. That just doesn't work, but any idea we are going to accept offers for Steven and then tell him 'by the way we've decided to sell you' is not on the agenda. You can forget that." Parry is currently in the process of finalising funding for Liverpool's new stadium in Stanley Park, which is set to open in 2007. And he confessed Arsenal's £100m deal with Emirates to sponsor their new ground - complete with naming rights - has given the Anfield club serious food for thought. He said: "I have to say historically it is something I have been against, and I have been on record as saying that, but I think the size of the Arsenal deal is a real eye-opener. "I would say in the past deals have been done frankly far too cheaply and it just hasn't even been worth contemplating. "But the Arsenal deal is the sort of deal that causes you to draw breath and say 'wow - that's interesting.' "My personal point of view is that I would find it a hell of a lot more palatable than a shared stadium." Some Liverpool fans would find such a move highly controversial, but Parry countered: "I recognise it would be an emotive issue for many supporters, but you look at the amount of money available and it could go into the team. "If it was the right partner how strong an issue is it? Time will tell. "I think the stadium will always be Anfield, not least because of where it is, but do we need to investigate the possibilities of sponsorship? I think it would be remiss not to. "That's not to say we have made a decision that we will go down that road, but I think it is clearly something we have to explore." On the subject of possible new investment, Parry revealed Liverpool are still in negotiations with a mystery investor, with rumours of interest from the Middle East. That prompted the withdrawal of tycoon Steve Morgan, who got frustrated by failed bids and what he claimed was indecision by the board. He also accused Liverpool of using him as "a stalking horse" to attract other bids, but Parry explained: "Steve has never been used as a stalking horse. There's no need, and that is not the way we do business. "We had discussions with Steve over the course of 2004. I think we came close to concluding a deal in the summer but it didn't happen. "Quite genuinely, the new interest did appear relatively late in the day just prior to the AGM in December, and as I have said it was of such potential magnitude, and that potential is so exciting, we felt we had to evaluate it. We are still evaluating it. "Steve's interest was taken very much on its own merits. His enthusiasm for the club is there for all to see and who knows what the next few months will hold? "The door isn't closed on anything. We had a perfectly sensible dialogue with Steve last year. "We have a common interest in making Liverpool successful. That's a dream we all share, so as far as I'm concerned the door is not closed." I would take £50m if we had no investment, but if we did, keep him. As for the stadium, if it gets us cash what difference does it make really? £50m for Gerrard? I don't care who you are, the Directors would take the money and it is the way it should be. We cannot let that sum of money go, despite Gerrard's quality. Through a cleverly worded statement, the club has effectively forced Gerrard to publicly make the decision for himself, which I think is the right thing to do. Critical time for Liverpool with regards to Gerrard. Ideally we would want to secure his future to the club for the long term. I am hoping he doesn't walk out of the club like Michael Owen did for very little cash. £50m realistically would allow Rafa to completely rebuild the squad, however, if we can afford to do this AND keep Gerrard we will be better for it. I would however be happy with Gerrard's transfer for any fee over £35m. Parry's statements are clever in that any future Gerrard transfer cannot be construed as a lack of ambition by the club to not try and keep their best players. Upping the ante is another smart move by Parry. I would keep Gerrard. No amount of money could replace his obvious love of the club and determination to succeed. The key is if Gerrard comes out and says that he is happy. Clearly, if he isn't, then we would be foolish not to sell. The worrying thing is who would you buy (or who would come) pending possible non-Champions League football.

Capriati out of Australian Open Jennifer Capriati has become the third leading lady to withdraw from the Australian Open because of injury. The organisers of the first grand slam of 2005, which begins on 17 January, said the American has a problem with her right shoulder. It comes as a blow to the women's draw as last year's champion, Justin Henin-Hardenne, and runner-up, Kim Clijsters, will also be absent. Capriati is a two-time champion in Melbourne with wins in 2001 and 2002. She is believed to have picked up the injury at the Advanta Championships at Philadelphia in November and had to pull out of an exhibition match with Wimbledon champion Maria Sharapova on 17 December. Capriati also decided against competing in the Australian Open warm-up event, the Sydney International.

What's next for next-gen consoles? The next generation of video games consoles are in development but what will the new machines mean for games firms and consumers? We may not know when they will be released, what they will be called or even what they will be able to do but one thing is certain - they are coming. Sony, Microsoft and Nintendo are all expected to release new machines in the next 18 months. The details of PlayStation 3, Xbox 2 (codename Xenon) and Nintendo's so-called Revolution are still to be finalised but developers are having to work on titles for the new machines regardless. "We know maybe what the PS3 will do, but we can only guess," said Rory Armes, studio general manager for video game giant Electronic Arts in Europe. "It's a horrendous effort in the first year," he admitted. Microsoft had delivered development kits to EA, said Mr Armes, but he said the company was still waiting on Sony and Nintendo to send kits. Although the details may not be nailed down, Mr Armes said EA was beginning to get a sense of the capabilities of the new machines. "The rumours are that PlayStation 3 will have a little more under the hood [than Xbox 2]," he said. "Microsoft is obviously a software company first and foremost, while Sony has more experience in hardware. I think Sony will be able to push more into a box at cost." What is certain is that the new machines will provide great leaps in processing and graphical power. It is also likely that they will contain convergence technologies to make the machines more of an entertainment hub. At the Consumer Electronics Show in Las Vegas Microsoft boss Bill Gates said Xbox 2 would be part of his vision of the digital lifestyle. While short on detail, he painted a picture of a machine that would complement a PC and offer "great video gaming but video gaming for a broader set of people, more communications, more media, more connectivity". Sony is thought to have a similar vision for PS3 while Nintendo remain focused on a machine purely for games. Until it is clear precisely what the new machines can do, developers are working on a first round of titles to harness the new horsepower. Gary Dunn, development director at Codemasters, said the company had a central technology group which was at the forefront of preparing for the next generation of consoles. "We are working on new libraries of effects. A lot of the major techniques are already out there and in use in PC gaming, such as pixel shaders and normal mapping." Mr Dunn said he expected the introduction of real-world physics to be a major part of the new consoles. "We want to increase that level of immersion and realism in gaming to people can lose themselves in a game." In the first year at least, developers said gamers should not expect games which harness the full potential of the machines. Graphical spit and polish and better physics in line with the capabilities of current high-end graphics cards for PCs should be expected. Simon Gardner, president of Climax's Action Studio, said: "It's definitely an exciting time. We want to give more freedom to the player. We want to give players an emotional connection to the characters they play. "The environments will be much more believable and dramatic, growing and changing as you play. "There will be a breadth of effects, more involving worlds to play in. "It's a bit like being an artist and being given a bigger canvas and a smaller brush. We're being given more tools. "For the average consumer, we can get things of a more filmic quality." Gerhard Florin, head of EA in Europe, said gamers should expect titles that blur the line between films and video games. Many will be sceptical - gamers were given similar predictions during the last transition of console hardware - but this time it would seem to be more likely. "PS3 will provide graphics indistinguishable from movies," said Mr Florin. He said the distribution method for games would also change radically in the next round of consoles. "A gamer could buy a starter disc for 10 euros. When he goes home he goes online and he could buy AI and levels as you go. "It's much smarter if you can get levels as you go." Mr Armes warned that developers still had to learn how to tell stories effectively in the medium. "In some ways we are trying to forget about the hardware, go in the opposite direction. We have been very bad at letting technology design our creativity. "What we have to do as a company is start ignoring the technology and learning our craft in telling stories." Mr Gardner agreed: "We can thrown more polygons around and have better AI but if it doesn't make for a better game then that's not very useful." Developers will certainly have the tools with the new machines, but how they employ them is still to be decided.

Lib Dems stress Budget trust gap Public trust in the handling of the economy can only be restored if Gordon Brown opens up his books for unbiased inspection, say the Lib Dems. City experts say there is a £10bn "black hole" in the public finances, a claim denied by the chancellor. Lib Dem spokesman Vince Cable said the public did not know who to believe and the National Audit Office should judge. Responding to the pre-Budget report, Mr Cable also attacked Labour's "unfair" and over-complicated taxes. In his report, Mr Brown insisted he was on course to meet his "golden rule" of borrowing only to invest, rather than for day-to-day spending, over the course of the economic cycle. Mr Cable said people did not know whether to believe the chancellor or the consensus among experts which said the rule would be broken. "There is an issue of credibility and trust," he said. "We cannot have a continuation of a situation where the chancellor sets his own tests and then marks them. "What we need is the equivalent of a thorough Ofsted inspection of the government's accounts." He asked what the government had to hide. Mr Cable also accused the chancellor of ducking tough choices. He argued: "There are serious challenges ahead from the falling dollar and from the rapid downturn in the UK housing market and rising personal debt. But they have not been confronted." Mr Brown confirmed he was setting aside another £520m for the conflicts in Iraq and Afghanistan. Mr Cable compared that new cost with the £500m needed for Britain's role in the entire first Gulf War - when 80% of the bill had been met through help from European and Arab nations. He suggested keeping British troops in Iraq could cost another £1bn with the government also planning to spend at least £3bn for identity cards. The current economic climate meant Britain could not afford the "reckless, George Bush-style tax cutting spree" planned by the Tories, he said. Instead, what was needed was simple and fair taxation rather than the "complete mess" produced by Mr Brown's endless tinkering. Mr Cable said 40% of all pensioners were now paying marginal tax rates of 50%. And one-and-a-half million hard working families were paying 60% marginal tax rates. With that record, he asked why ministers attacked Lib Dem plans for a new 50% tax rate for the "very rich" - those earning more than £100,000 a year. Mr Brown earmarked £1bn to help keep down council tax rises next year. But the Lib Dem spokesman questioned whether that money was being found from cuts to education and health. He urged the government to scrap the "grossly unfair" tax completely. The Lib Dems want it replaced with a local income tax. In response, Mr Brown stressed the Iraq money came from a reserve funds. It was because he had rejected previous Lib Dem proposals, such as scrapping the New Deal, that Britain's economy was successful, claimed Mr Brown.

Indonesia 'declines debt freeze' Indonesia no longer needs the debt freeze offered by the Paris Club group of creditors, Economics Minister Aburizal Bakrie has reportedly said. Indonesia, which originally accepted the debt moratorium offer, owes the Paris Club about $48bn (£25.5bn). Mr Bakrie told the Bisnis Indonesia newspaper that a $1.7bn donors' aid package meant that the debt moratorium was unnecessary. This aid comes on top of a previously-pledged $3.4bn package. Most of this 'normal aid' would be used to finance the country's budget deficit. The Indonesian Economics Minister explained that the money - $1.2bn in grants and $500m in soft loans - was for the rebuilding of Aceh province, which was badly hit by the tsunami of 26 December. Nevertheless, one of Mr Bakrie's deputies, Mahendra Siregar, told AFP news agency that Indonesia was still considering the offer by the Paris Club of rich creditor nations to temporarily suspend its debt payments. "What is true is that we are still discussing... the Paris Club decision to find out more details such as how much of our debt will be subject to a moratorium. That's how far we are at this stage," said Mr Siregar. The 19 member countries of the Paris Club are owed about $5bn this year in debt repayments by nations affected by the Indian Ocean tsunami. Indonesia, Sri Lanka and the Seychelles accepted the Paris Club offer, which was criticised by some aid groups as being too little. Thailand and India have however declined the offer, with Thailand prefering to keep up with its payments while India said it would prefer to rely on its own resources rather than on international aid. Putting off payments may lower a country's rating among financial organisations, making it more expensive and more difficult for them to borrow money in the future, analysts said. Separately, the Indonesian government has said it will announce monthly how much it has received in foreign donations and how it has spent the money. Welfare Minister Alwi Shihab told AP news agency that this announcement should allay suspicion of official corruption in relief operations.