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Nigeria to boost cocoa production The government of Nigeria is hoping to triple cocoa production over the next three years with the launch of an ambitious development programme. Agriculture Minister Adamu Bello said the scheme aimed to boost production from an expected 180,000 tonnes this year to 600,000 tonnes by 2008. The government will pump 154m naira ($1.1m; £591,000) into subsidies for farming chemicals and seedlings. Nigeria is currently the world's fourth-largest cocoa producer. Cocoa was the main export product in Nigeria during the 1960s. But with the coming of oil, the government began to pay less attention to the cocoa sector and production began to fall from a peak of about 400,000 tonnes a year in 1970. At the launch of the programme in the south-western city of Ibadan, Mr Bello explained that an additional aim of the project is to encourage the processing of cocoa in the country and lift local consumption. He also announced that 91m naira of the funding available had been earmarked for establishing cocoa plant nurseries. The country could be looking to emulate rival Ghana, which produced a bumper crop last year. However, some farmers are sceptical about the proposals. "People who are not farming will hijack the subsidy," said Joshua Osagie, a cocoa farmer from Edo state told Reuters. "The farmers in the village never see any assistance," he added. At the same time as Nigeria announced its new initiative, Ghana - the world's second largest cocoa exporter - announced revenues from the industry had broken new records. The country saw more than $1.2bn-worth of the beans exported during 2003-04. Analysts said high tech-production techniques and crop spraying introduced by the government led to the huge crop, pushing production closer to levels seen in the 1960s when the country was the world's leading cocoa grower.

Saudi NCCI's shares soar Shares in Saudi Arabia's National Company for Cooperative Insurance (NCCI) soared on their first day of trading in Riyadh. They were trading 84% above the offer price on Monday, changing hands at 372 riyals ($99; £53) after topping 400 early in the day. Demand for the insurer's debut shares was strong - 12 times what was on sale. The listing was part of the country's plans to open up its insurance market and boost demand in the sector. Deregulation is expected to boost demand for accident and damage cover. Previously, only NCCI has been legally allowed to offer insurance products within Saudi Arabia. However, the authorities have turned a blind eye to the many other firms selling insurance. Saudi Arabia now wants a fully functioning insurance industry and is introducing legislation that will clamp down on unauthorised companies. Policy-makers also want to make having insurance more of a requirement, but first have to take steps to boost public confidence in the system, analysts said. As a result, NCCI is being developed as the industry's flagship firm - publicly-listed, with audited accounts. Saudi Arabia sold 7 million NCCI shares, or about 70% of the company's total capital last month. More than 800,000 applicants got 9 shares each for 205 riyals apiece.

Horror film heads US box office A low-budget horror film produced by Evil Dead director Sam Raimi has topped the North American box office. Boogeyman, which focuses on a man who returns to his childhood home to confront his traumatic past, took $19.5m (£14.9m) in three days. Last week's chart-topper, the Robert de Niro thriller Hide and Seek, fell to number four. Other new entries included The Wedding Date, a comedy starring Will and Grace's Debra Messing, at number two. The road-trip comedy Are We There Yet? and multiple Oscar nominee Million Dollar Baby completed the top five. Other Oscar contenders, including The Aviator and Sideways, continued to perform strongly at the box office. The Aviator has taken $75m (£40m) so far, while Sideways has taken $46.8m (£24.8m) in a more limited release. Boogeyman, which cost just $7m (£3.5m) to make, performed well even though it was not screened to critics before release - normally a sign that a film will get bad reviews or perform poorly at the box office. "I certainly believe it's a genre where people are going to be more moved by the marketing materials for the movie than by what the critics say," said Rory Bruer, head of distribution for Sony Pictures, which released the film in the US. Overall the weekend box office was strong despite the fact that it was American football's Super Bowl weekend - a time when cinema admissions generally fall. This year, the top 12 films grossed around $91m (£48.3m), compared to 2004's Super Bowl weekend when the total box office was $73.4m (£38.9m).

England children's tsar appointed The first children's commissioner for England has been appointed. Great Ormond Street Hospital professor of child health, Al Aynsley-Green, was chosen by the government and will start the £100,000-a-year job immediately. He will oversee a £2.5m annual budget and have the power to look into "any matter relating to the interests and well-being of children". Prof Aynsley-Green has also been the national clinical director for children in the Department of Health. He promised to make sure that children's opinions "count". "I will be drawing on my experience of working with children and young people to help ensure that those with the power to improve children's lives do live up to their responsibilities. "I want all children and young people to know that they can approach me to discuss any matter that affects them, knowing that I will value their opinion." Education Secretary Ruth Kelly said Prof Aynsley-Green would "strengthen the voice of children and young people". Prof Aynsley-Green was a lecturer at Oxford University, trained at Guy's Hospital Medical School, University of London; Oriel College, Oxford; and in Switzerland. He is described as "a proud grandfather" of four. Scotland, Wales and Northern Ireland already have children's commissioners.

Kennedy questions trust of Blair Lib Dem leader Charles Kennedy has said voters now have a "fundamental lack of trust" of Tony Blair as prime minister. He said backing his party was not a wasted vote, adding that with the Lib Dems "what you see is what you get". He made his comments at the start of a day of appearances on Channel Five in a session on The Wright Stuff programme. Questions from callers, a studio audience and the show's presenter covered Lib Dem tax plans, anti-terror laws and immigration. Mr Kennedy said during his nearly 22 years in Parliament he had seen prime ministers and party leaders come and go and knew the pitfalls of British politics. "1983 was when I was first elected as an MP - so Tony Blair, Michael Howard and myself were all class of '83 - and over that nearly quarter of a century the world has changed out of recognition," he said. "We don't actually hear the argument any longer: 'Lib Dems, good people, reasonable ideas but only if we thought they could win around here - it's a wasted vote'. "You don't hear that because the evidence of people's senses demonstrates that it isn't a wasted vote." But he said Mr Blair had lost the trust of the British people. "There is a fundamental lack of trust in Tony Blair as prime minister and in his government," he said. "What we've got to do as a party - what I've got to do as a leader of this party - is to convey to people that what you see is what you get." Mr Kennedy also used his TV appearance to defend his party's plans to increase income tax to 50% for those earning more than £100,000, saying it would apply to just 1% of the population. He said the extra revenue would allow his party to get rid of tuition and top-up fees, introduce free personal care for the elderly and replace the council tax with a local income tax. Mr Blair has already spent a day with Five and Michael Howard is booked for a similar session.

File-swappers ready new network Legal attacks on websites that help people swap pirated films have forced the development of a system that could be harder to shut down. One site behind the success of the BitTorrent file-swapping system is producing its own software that avoids the pitfalls of the earlier program. A test version of the new Exeem program will be released in late January. But doubts remain about the new networks ability to ensure files being swapped are "quality copies". In late December movie studios launched a legal campaign against websites that helped people swap pirated movies using the BitTorrent network. The legal campaign worked because of the way that BitTorrent is organised. That file-sharing system relies on links called "trackers" that point users to others happy to share the file they are looking for. Shutting down sites that listed trackers crippled the BitTorrent network. One of the sites shut down by the legal campaign was suprnova.org which helped boost the popularity of the BitTorrent system by checking that trackers led to the movies or TV programmes they claimed to. Now the man behind suprnova.org, who goes by the nickname Sloncek, is preparing to release software for a new file-swapping network dubbed Exeem. In an interview with Novastream web radio, Sloncek said Exeem would combine ideas from the BitTorrent and Kazaa file-sharing systems. Like BitTorrent, Exeem will have trackers that help point people toward the file they want. Like Kazaa these trackers will be held by everyone. There will be no centrally maintained list. This, said Sloncek, should make the system less vulnerable to legal action aimed at stopping people swapping pirated movies and music. The Exeem software has been under development for a few months and is currently being tested by a closed group of users. An early public version of the software should be available before February. Sloncek said that currently only a Windows version of the software was in development. There were no plans for a Linux or Mac version. He said that costs of writing the software will be paid for by adverts appearing in the finished version of the program. Despite Suprnova administrator Sloncek's involvement with Exeem, the basic technology appears to have been developed by a firm called Swarm Systems that is based on Caribbean island Saint Kitts and Nevis. Users of the Exeem system will be able to rate files being swapped to help stop the spread of fake files, Sloncek told Novastream. Dr Johan Pouwelse, a researcher at the Delft University of Technology who studies peer-to-peer networks, said Exeem was the next evolution in file-sharing systems. But, he said, it would struggle to be as popular as BitTorrent and Suprnova because early versions were not taking enough care to make sure good copies of files were being shared. "Exeem cannot prevent pollution," he said. "The rating system in Exeem seems flawed because it is easy to insert both fake files and fake ratings," he said. Studies have shown that organisations working for record labels and movie studios have worked to undermine Kazaa by putting in fakes. By contrast moderators on Suprnova made sure files being shared were high quality. "The moderators are the difference between having a system that works and one that's full of crap like Kazaa," he said. "There is a fundamental tension between distribution and integrity," he said. Mr Pouwelse said that future versions of file-sharing systems are likely to incorporate some kind of distributed reputation system that lets moderators prove who they are to the network and rate which files are worth downloading. When big files were being shared moderation systems were key, said Mr Pouwelse. He added that the legal attacks on BitTorrent had driven people away from sites such as Suprnova but many users had simply migrated to other tracker listing sites many of which have seen huge increases in traffic. "It's hard to compete with free," he said. No-one from the Motion Picture Association of America was immediately available for comment on the file-sharing development.

Blair 'damaged' by Blunkett row A majority of voters (68%) believe the prime minister has been damaged by the row over David Blunkett's involvement in a visa application, a poll suggests. But nearly half those surveyed said Mr Blunkett should return to Cabinet if Labour won the next election. Some 63% of respondents in the Sunday Times poll thought his former lover - Kimberly Quinn - acted vindictively and 61% that he had been right to resign. YouGov polled a weighted sample of 1,981 voters online on 16-18 December. Mr Blunkett resigned as Home Secretary on Wednesday after an inquiry uncovered an e-mail showing a visa application by Mrs Quinn's former nanny had been speeded up. Sir Alan Budd's inquiry also found Mr Blunkett's account of events had been wrong. Almost a quarter (21%) of those polled for the Sunday Times said he should return to the Cabinet straight after the election. One in four said he should be back in the Government's top ranks within a year or two while 39% opposed a comeback. Three-quarters said Mr Blunkett was right to go to court for the right to see Mrs Quinn's son - whom he says he fathered - and just 14% voiced sympathy for Mrs Quinn. A total of 53% of those polled said they had sympathy for Mr Blunkett, with 40% saying they did not. Forty-three per cent thought Mr Blunkett had done a good job as home secretary and 17% disagreed. Meantime, 32% said Mr Blair was a good prime minister and 38% disagreed. A majority, 52%, said Chancellor Gordon Brown had done a good job and just 16% disagreed. A second poll for the Independent on Sunday found that support for all political parties remained largely unchanged after the Blunkett controversy. Labour lead the Conservatives by 39% to 34% with the Liberal Democrats on 19%. CommunicateResearch interviewed 401 people before David Blunkett's resignation and 601 afterwards. Some 82% said Mr Blunkett had set a good example by wanting to take responsibility for the child he says is his, but 42% backed his legal action compared to 45% who thought it was unbecoming. Thirty per cent said the affair showed Mr Blunkett could not be trusted as a minister while 63%, disagreed.

Army chiefs in regiments decision Military chiefs are expected to meet to make a final decision on the future of Scotland's Army regiments. A committee of the Army Board, which is made up of the most senior defence figures, will discuss plans for restructuring regiments on Monday. The proposals include cutting Scotland's six single-battalion regiments to five and merging these into a super regiment. The plans have faced stiff opposition from campaigners and politicians alike. The committee's decision must be ratified by Defence Secretary Geoff Hoon and Prime Minister Tony Blair. It is expected that it will be made public next week. When ministers announced a reorganisation of the Army it drew a question mark over the futures of the Black Watch, the Kings Own Scottish Borderers, the Royal Scots, the Royal Highland Fusiliers and the Argyll and Sutherland Highlanders. In October, the Council of Scottish Colonels proposed the merger of the Royal Scots and the King's Own Scottish Borderers into a single battalion. Under their vision, it would be one of five in the new super regiment. The proposals to either merge or amalgamate the six regiments into a super regiment sparked a political outcry, with Labour backbenchers and opposition politicians opposing the plan. They felt the timing was insensitive because the Black Watch was in the frontline in Iraq, suffering casualties. The Save the Scottish Regiments campaigners were so angered they threatened to stand against Labour at the next general election. Speaking ahead of the expected Army Board meeting, a spokesman said: "The government and the Army Board have spent the past four months attempting to trick serving soldiers and the public into thinking their planned changes for the Scottish regiments are for the good of the Army and for that of the serving soldier. "They are very much not for the good and will destroy Scotland's regiments by moulding them into a single super regiment which will lead to severe recruitment problems, a loss of local connections to those regiments and a loss to Scotland of an important part of her heritage and, most importantly, her future - the regiments are the envy of armies around the world." An alternative blueprint had been put forward by Labour MP Eric Joyce, who proposed going ahead with the merger while preserving the other regiments. For a brief time, there was speculation the prime minister might consider the plan, but that now seems unlikely. Speaking in Scotland last week, Mr Blair said the aim was to preserve tradition but introduce a more effective structure and hinted that a super regiment was likely. He said: "They don't want to get rid of the history or the traditions of the regiment or the local connections - far from it, all they want to do is make sure they can transfer people easily across regiments and deploy them more flexibly." The prime minister said he hoped campaigners' concerns would be taken into account but the need for effective change had to be paramount.

Supercomputer breaks speed record The US is poised to push Japan off the top of the supercomputing chart with IBM's prototype Blue Gene/L machine. It is being assembled for the Lawrence Livermore National Laboratory, a US Department of Energy (DOE) lab. DOE test results show that Blue Gene/L has managed speeds of 70.72 teraflops. The current top machine, Japan's NEC Earth Simulator, clocks up 35.86. Due next week, the Top 500 list officially charts the fastest computers in the world. It is announced every six months and is worked out using an officially recognised mathematical speed test called Linpack which measures calculations per second. The speeds will most likely make it the fastest computer system on the planet, yet the chip technology powering the machine is the kind which can be found in familiar devices such as games consoles. The US Secretary of Energy Spencer Abraham confirmed that the machine had reached the breakneck speed, according to the Linpack benchmark. Until the official list is published, however, Blue Gene/L's position will not be confirmed, and there are expected to be some other new entries. But the test results raise the bar of supercomputing enormously and signal a remarkable achievement. Surpassing the 40 trillion calculations per second (teraflop) mark has been considered a landmark for some time. The IBM Blue Gene/L is only a prototype and is one 5th the speed of the full version, due to be completed for the Livermore labs in 2005. Its peak theoretical performance is expected to be 360 teraflops, and will fit into 64 full racks. It will also cut down on the amount of heat generated by the massive power, a big problem for supercomputers. The final machine will help scientists work out the safety, security and reliability requirements for the US's nuclear weapons stockpile, without the need for underground nuclear testing. The Earth Simulator has held on to the top spot since June 2002. It is dedicated to climate modelling and simulating seismic activity. But in September, IBM said that another Blue Gene/L machine clocked up 36.01 teraflops, marginally surpassing the Earth Simulator's performance. This was achieved during internal testing at IBM's production facility in Rochester, Minnesota, though, so was not an official record. Another giant to enter the fray is Silicon Graphics' Columbia supercomputer based at Nasa's Ames Research Center in California. It would be used to model flight missions, climate research, and aerospace engineering. The Linux-based machine was reported to have reached a top speed of 42.7 teraflops in October. Supercomputers are hugely important for working out very complex problems across science and society. Their massive simulation and processing power means they can improve the accuracy of weather forecasts, help design better cars, and improve disease diagnosis. IBM's senior vice president of technology and manufacturing, Nick Donofrio, believes that by 2006, Blue Gene will be capable of petaflop computing. This means it would be capable of doing 1,000 trillion operations a second. "When you get a computer as large as a petaflop, you can start to think of simulations that might complement the physical world," Mr Donofrio recently told the BBC News website. "You can start to be more proactive, more interactive and more innovative." One area where Mr Donofrio sees supercomputing - and Blue Gene machines in particular - as crucial is health. He believes the machines can help scientists understand one of the greatest challenges of the 21st Century: protein folding. "Health is one of the most important problems, not just mapping the human genome, but also protein structures. "We are a great believer in simulation. It gives you another tool," he said. Once the structures of proteins are understood fully, then drugs can be tailor-made to fight diseases more effectively. Compared with the current fastest supercomputers, Blue Gene is designed to consume one 15th the power and be 10 times more compact. Since the first supercomputer, the Cray-1, was installed at Los Alamos National Laboratory in 1976, computational speed has leaped 500,000 times. The Cray-1 was capable of 80 megaflops (80 million operations a second). The Blue Gene/L machine that will be completed next year will be five million times faster. Started in 1993, the Top 500 list is decided by a group of computer science academics from around the world. It is presented at the International Supercomputer Conference in Pittsburgh.

Media gadgets get moving Pocket-sized devices that let people carry around video and images are set to have a big year in 2005, according to industry experts. Last year saw the emergence of portable media players, such as the Windows-based Creative Zen portable media player, the Samsung Yepp, the iRiver PMC-100, and the Archos AV400 series among others. But this year, they are set to get smarter and more connected, to allow people to find more video to watch on them. Archos launched its latest range of its Linux-based portable media devices at the Consumer Electronics Show in Las Vegas on Friday. Dubbed the Pocket Media Assistant PMA430, it crucially has wi-fi capability built-in for the first time. "Consumers are showing a great thirst for devices that store all their media in one place for anywhere access," said Henri Crohas, chief of Archos. "And now those consumers can stay connected and productive at the same time." Archos said the focus for the device is to be the second gadget in people's pockets, after the mobile. Unlike Windows-based players, the Archos AV400 series devices have always been able to record from any video source, such as TVs, as well as playback. The content put onto the devices is copy protected so cannot then be swapped to another device. Recording is perhaps a crucial functionality for those who have not seen the point of portable video if there is not a lot of video to watch on it. And wi-fi connectivity opens up the possibility of content delivery via a high-speed wireless link. Archos also announced that it would open up the software development kit to Linux developers so that more applications could be created for the device. Microsoft also made some announcements in the portable media arena at CES, primarily for US consumers though. It has agreed a content deal with personal video recorder company TiVo, which Bill Gates also showcased in his keynote speech at CES. The TiVo To Go service means that US consumers will be able to take any programmes they record on their TiVos and transfer it for free to watch on any of the Windows-based portable media players or smartphones. It also said it had launched a service with MTV to let people watch Comedy Central, VH1 and Country Music TV on its devices. And a service is launching with MSN to provide people with shortened versions of news, entertainment and other video on a subscription basis for download via the PC onto the portable devices. But the ability to record directly from TV, VCR, and digital cable and satellite boxes, which Windows-based devices do not offer, certainly gives people more content to watch on the go too. The increased capability of these devices, and the content deals that are being done, may go some way to persuading people to use them. Recent research by Jupiter suggested that people would prefer a device that was dedicated to music. Only 13% of Europeans wanted to watch video while on the move. More seemed interested in spending their cash on music-only devices. "This year, we are ready for an explosion of portable media," Microsoft's Mike Coleman told the BBC News website. "We are very bullish about it. The fact that I can put photos on here too and share them is super-cool to the consumer," he added. The fact that Europeans are far larger public transport users than Americans is one reason why portable media will take off in the coming year too. There is a burgeoning market there for commuters to watch news and other programmes on their way to work. Although Microsoft's content distribution deals are for the US market at the moment, talks were "always on-going" with European content suppliers to offer similar services. Various rights management issues have to be ironed out first however. But that does not prevent people from finding ways to create their own content to share online and swap on portable devices, particularly via those which are wi-fi enabled. The possibility is open for non-professional makers of video and audio to take advantage of the growing portable media market to distribute their work. CES, which runs from 6 to 9 January, showcases more than 50,000 new gadgets that will be hitting the shelves in 2005.

Tigers wary of Farrell 'gamble' Leicester say they will not be rushed into making a bid for Andy Farrell should the Great Britain rugby league captain decide to switch codes. "We and anybody else involved in the process are still some way away from going to the next stage," Tigers boss John Wells told BBC Radio Leicester. "At the moment, there are still a lot of unknowns about Andy Farrell, not least his medical situation. "Whoever does take him on is going to take a big, big gamble." Farrell, who has had persistent knee problems, had an operation on his knee five weeks ago and is expected to be out for another three months. Leicester and Saracens are believed to head the list of rugby union clubs interested in signing Farrell if he decides to move to the 15-man game. If he does move across to union, Wells believes he would better off playing in the backs, at least initially. "I'm sure he could make the step between league and union by being involved in the centre," said Wells. "I think England would prefer him to progress to a position in the back row where they can make use of some of his rugby league skills within the forwards. "The jury is out on whether he can cross that divide. "At this club, the balance will have to be struck between the cost of that gamble and the option of bringing in a ready-made replacement."

Tottenham bid £8m for Forest duo Nottingham Forest have confirmed they have received an £8m bid from Tottenham for Andy Reid and Michael Dawson. Reid rejected a move to Southampton after Forest accepted a cash-plus-players offer while Spurs had made previous bids for the 22-year-old. Spurs had also made an undisclosed offer for 21-year-old defender Dawson. Forest chief executive Mark Arthur said: "We've received an £8m bid from Spurs for the two players and we're considering the offer." Southampton's offer for Republic of Ireland international Reid comprised £3m-plus and two players - Brett Ormerod and Darren Kenton. Spurs had seen previous bids of £3m, £4m and £5m for Reid rejected by the Championship club.

Remote control rifle range debuts Soon you could go hunting via the net. A Texas company is considering letting web users use a remote-controlled rifle to shoot down deer, antelope and wild pigs. For a small fee users will take control of a camera and rifle that they can use to spot and shoot the game animals as they roam around a 133-hectare Texas ranch. The Live-Shot website behind the scheme already lets people practise shooting at targets via the internet. John Underwood, the man behind the Live-Shot website, said the idea for the remote-control hunting came to him a year ago when he was watching deer via a webcam on another net site. "We were looking at a beautiful white-tail buck and my friend said 'If you just had a gun for that'. A little light bulb went off in my head," Mr Underwood told the Reuters news agency. A year's work and $10,000 has resulted in a remote-controlled rig on which sits a camera and .22 calibre rifle. Mr Underwood is planning to put one of these rigs in a concealed location in a small reserve on his Texas ranch and let people shoot at a variety of game animals. Also needed is a fast net connection so remote hunters can quickly track and aim at passing game animals with the camera and rifle rig. Each remote hunting session will cost $150 with additional fees for meat processing and taxidermy work. Species that can be shot will include barbary, Corsican and mouflon sheep, blackbuck antelope and wild pigs. Already the Live-Shot site lets people shoot 10 rounds at paper and silhouette targets for $5.95 for each 20-minute shooting session. For further fees, users can get the target they shot and a DVD recording of their session. Handlers oversee each shooting session and can stop the gun being fired if it is being aimed off-range or at something it should not be. Mr Underwood said that internet hunting could be popular with disabled hunters unable to get out in the woods or distant hunters who cannot afford a trip to Texas. In a statement the RSPCA said it had "grave concerns" about people being allowed to go online and remotely control a rifle. "We assume it would be extremely difficult to accurately control a gun in this way and therefore it would be difficult to ensure a 'clean kill', something the RSPCA accepts is the intention of those shooting for sport," it said. "Animals hit but not killed would without doubt be caused to suffer unnecessarily," said the statement. Mike Berger, wildlife director of the Texas Parks and Wildlife Department, said current hunting statutes did not cover net or remote hunting. He said state laws on hunting only covered "regulated animals" such as native deer and bird species. As such there was nothing to stop Mr Underwood letting people hunt "unregulated" imported animals and wild pigs. Mr Underwood also lets people come in person to the ranch to hunt and shoot game animals.

FA decides not to punish Mourinho The Football Association will take no action against Chelsea boss Jose Mourinho following his sending-off in Sunday's Carling Cup final. Mourinho, who was sent from the touchline for appearing to taunt Liverpool fans, has been "reminded of his responsibilities to the game". But the FA confirmed: "There will be no further action taken in this matter." Mourinho claimed his 'silence' gesture was aimed at the media, although they were on the other side of the ground. The former Porto coach was forced to watch the climax of his side's 3-2 victory over Liverpool on television after being ushered away from the touchline by fourth official Phil Crossley. His gesture came after Chelsea's equaliser on 79 minutes courtesy of a Steven Gerrard own goal. Mourinho still faces an FA investigation into his allegation that Manchester United's players 'cheated' during January's Carling Cup semi-final at Stamford Bridge. And Uefa could also launch disciplinary action following Mourinho's failure to attend a compulsory post-match press conference after Chelsea's Champions League defeat at Barcelona last week. In addition, some time this month, Chelsea must also answer a charge of failing to control their players during the Premiership win at Blackburn in February. And a charge of failing to control their supporters following a Carling Cup meeting with West Ham earlier this season is still to be heard. The Premier League is also continuing investigations into allegations Chelsea officials tapped up Arsenal defender Ashley Cole in January.

Michael film signals 'retirement' Singer George Michael has said that a new film about his life is the start of a retirement from public view. The pop star said it would be a much more "behind the scenes affair", and called his own genre of music "dead". "I thought I should explain myself before I disappear," said Michael, who was at the Berlin film festival to launch the documentary. The film, A Different Story, chronicles Michael's life and career from the 1980s and his personal struggles. The 41-year-old chart-topper told reporters in the German capital that he wanted to "move his career into a different form", but added that he does not know what it is going to be yet. "I'm still going to be making music," he said, but added that he was "not going to be around". He hinted at discontent with the current state of music industry, and said: "I don't really think that there is anyone in the modern pop business who I feel I want to spar with." Michael said that the film, directed by Southan Morris, would put his two decades of fame into context. "It's almost as much for me as for my fans, in terms of trying to make sense of the last 22 years and bring it to a close in a proper way," he said. The documentary chronicles the highs and lows of his life in the public gaze, from his meteoric rise as one half of pop duo Wham! to his arrest for lewd conduct in a Los Angeles toilet in 1998. The film also deals with the loss of Michael's partner Anselmo Feleppa from an Aids-related condition in 1993. A Different Story, which is being shown at the Berlin Film Festival, has been screened by BBC One.

Brown in appeal for Labour unity Gordon Brown has made an appeal for unity after reports claimed Mr Blair went back on a pledge to stand down before the next general election. The chancellor would not comment on the reports, but insisted he would not be "diverted or distracted" from tackling the challenges faced by the country. His only "motivation" was to ensure Labour was re-elected, he insisted. Mr Blair earlier dismissed the claim he had reneged on a promise to stand aside for Gordon Brown as old news. According to a new book, Brown's Britain by Sunday Telegraph journalist Robert Peston, Mr Blair went back on a pledge to make way for Mr Brown after Cabinet allies intervened in June 2004. In an interview with BBC One's Breakfast with Frost, Mr Blair said: "I've dealt with this six months ago. I said then you don't do deals over jobs like this - you don't. "What both of us are actually concentrating on are the issues that concern the country." In a separate interview with BBC political editor Andrew Marr, Mr Brown said: "It's very important that we all do what we can in a unified way to ensure the election of a Labour government. "I think it is very important to stress that that is the motivation that I have. "That is my purpose in politics, and that is what every day I seek to do. And I am not going to be diverted or distracted, nor is Tony Blair, by newspaper stories or books or rumours or gossip. "The only reason why we are in government is to get on with the job in a unified way to deal with the challenges facing this country." Mr Brown also said he had discussed the general election campaign with the prime minister on Saturday and pledged to play his part as he had been asked to do. But Mr Peston said the pair had "mutual animosity and contempt" for each other and that Mr Blair had decided in November 2003 he would quit because he felt he had lost voters' trust because of the Iraq war. He then changed his mind in June 2004, following intervention from allies in the Cabinet and the suspicion that the chancellor was deliberately manoeuvring against him, according to the book. Andrew Marr said: "This is enormously damaging. Gordon Brown knows it as well as Tony Blair. "I think the relationship is genuinely, privately, very poor indeed. Things are very difficult." He added: "Lots of ministers believe Tony Blair will attempt to move Gordon Brown out of the Treasury after the election. "That depends on whether there's still a Labour government and their majority." Senior MPs are expected to raise concerns about the latest reports of infighting at the regular meeting of Labour backbenchers on Monday. Health Secretary John Reid said those fuelling such reports were damaging Labour's re-election chances and would not be easily forgiven. Fresh speculation of a rift recently followed Mr Blair and Mr Brown's separate responses to the Asian tsunami. These rumours were fuelled by Mr Blair's decision to hold his monthly media conference at the same time as a long-planned speech by Mr Brown on UK plans to tackle global poverty with a new "Marshall Plan" for Africa. There was speculation the pair were trying to outdo each other's response to the disaster. But the prime minister said he had discussed these claims with the chancellor and dismissed them as a "load of nonsense". Tory leader Michael Howard accused the prime minister and Mr Brown of"squabbling like schoolboys". Liberal Democrat parliamentary chairman Matthew Taylor said the personal ambition of Mr Blair and Mr Brown was "getting in the way of good government".

Film star Fox behind theatre bid Leading actor Edward Fox is one of the men behind plans to reopen a Swansea theatre thought to be Wales' oldest. The star of film and TV hits Day of the Jackal and Edward and Mrs Simpson has joined forces with Swansea-born actor-director Terry Palmer. They will set up a charity to raise money to buy the Palace Theatre, and hope to reopen it to audiences in summer 2006. It is estimated that £500,000 is needed to buy the Grade II listed building. The Palace Theatre, which will be known as The Pavilion Repertory Theatre, was sold to an undisclosed bidder at auction 13 months ago for £340,000. Before that it had been used as a nightclub for 10 years. Oscar-winner Sir Anthony Hopkins, who was born in nearby Port Talbot, made his professional debut there, and Charlie Chaplin and Lily Langtry have also trodden its boards. Fox told the South Wales Evening Post that after visiting the theatre he was surprised by its beauty. "A lot of money needs to be spent on it, but all the bones are there - it just needs a beautiful skin," he said. "To call it a jewel is not an over-estimation. There are not many theatres left like this. "The hope for the immediate future is that we can attract enough people to come forward to allow it to prosper," he told the newspaper. Fox first found fame in the 1960s. One of his most memorable roles was as an assassin in the Day of the Jackal in 1973, and he won a TV Bafta as the Prince of Wales in 1980 for Edward and Mrs Simpson. He was brought on board to save the theatre by Mr Palmer, a long-standing friend of 40 years. "Two years ago I decided to return to Swansea and do something for the city," said Mr Palmer. He said he was excited by the idea of running the Palace as a charity where young actors could develop, and with an annual Shakespeare festival in the summer. "If in five years' time the theatre can function in all areas without me, I shall be well satisfied having helped to create a vital living theatre for the city," he added. Keith Poulton, a business adviser from Swansea, has already committed an undisclosed amount of money to the project. "We need at least £75,000 to secure a deposit on the building and we've only got two months to do that," said Mr Poulton. "A few benefactors have expressed their interest and Mr Fox is going to give it an awful lot of time," he added. Last year, roads around the theatre were cordoned off when masonry from its roof fell onto a car, but engineers said they were happy that it was safe.

Jarvis sells Tube stake to Spain Shares in engineering group Jarvis have soared more than 16% on news that it is offloading its stake in London underground consortium Tube Lines. The sale of the 33% stake to Spain's Ferrovial for £146m ($281m) is a lifeline to Jarvis, which was weighed down by debts of more than £230m. The company recently warned it could go under if it did not secure a refinancing deal by mid-January 2005. But now its banks have agreed to extend its credit facilities until March 2006. The company also said it had agreed terms over the completion of 14 of its biggest construction projects under the government's Private Finance Initiative (PFI). Jarvis wants to scale back the division, which has proved too costly and has been blamed for many of its problems. Instead, it plans to focus on UK rail renewal, roads and plant hire work. Madrid-based Ferrovial already holds a 33% stake in Tube Lines, which maintains the Jubilee, Northern and Piccadilly lines. The Spanish group has been keen to snap up more UK infrastructure assets, having bought Amey in 2003. Jarvis said the sale, which raked in more than the £100m analysts had expected, would "substantially" enhance its financial position. "I am now confident that we can now move forward in 2005 towards rebuilding Jarvis and return it to growth as a profitable business," said chief executive Alan Lovell. Shares in Jarvis were up more than 16% to 18 pence by the close of trade on Friday.

Lennon brands Rangers favourites Celtic's Neil Lennon admits Rangers could be considered "slight favourites" for the Old Firm CIS Cup clash, but insists his side can still win. Lennon concedes Rangers are in good form at the moment, but they have failed to beat Celtic in their last seven meetings. "Rangers are on the up and have been on a good run in recent weeks," he said. "But it's a game we believe we're capable of winning if we play our best," he told the Evening Times. "All the boys are looking forward to it because they are brilliant games to be involved in. "Without playing at the top of our game, we have still been winning matches. "At the minute, we are at the top of the league and still in with a chance of staying in Europe, so I don't think it is the crisis people have been trying to make out. "Of course, it is a concern when you are losing goals, because we have been notorious for being a team that is hard to beat and keeping clean sheets, but hopefully we are over that wee run. "Considering we lost Henrik Larsson at the end of last season, we have still been scoring a lot of goals, which is pleasing."

Germany calls for EU reform German Chancellor Gerhard Schroeder has called for radical reform of the EU's stability pact to grant countries more flexibility over their budget deficits. Mr Schroeder said existing fiscal rules should be loosened to allow countries to run deficits above the current 3% limit if they met certain criteria. Writing in the Financial Times, Mr Schroeder also said heads of government should have a greater say in reforms. Changes to the pact are due to be agreed at an economic summit in March. The current EU rules limit the size of a eurozone country's deficit to 3% of GDP. Countries which exceed the threshold are liable to heavy fines by the European Commission, although several countries, including Germany, have breached the rules consistently since 2002 without facing punishment. The European Commission acknowledged last month that it would not impose sanctions on countries who break the rules. Mr Schroeder - a staunch supporter of the pact when it was set up in the 1990s - said exemptions were now needed to take into account the cost of domestic reform programmes and changing economic conditions. "The stability pact will work better if intervention by European institutions in the budgetary sovereignty of national parliaments is only permitted under very limited conditions," he wrote. "Only if their competences are respected will the member states be willing to align their policies more consistently with the economic goals of the EU." Deficits should be allowed to rise above 3%, Mr Schroeder argued, if countries meet several "mandatory criteria". These include governments which are adopting costly structural reforms, countries which are suffering economic stagnation and nations which are shouldering "special economic burdens". The proposed changes would make it harder for the European Commission to launch infringement action against any state which breaches the pact's rules. Mr Schroeder's intervention comes ahead of a meeting of the 12 Eurozone finance ministers on Monday to discuss the pact. The issue will also be discussed at Tuesday's Ecofin meeting of the finance ministers of all 25 EU members. Mr Schroeder also called for heads of government to play a larger role in shaping reforms to the pact. A number of EU finance ministers are believed to favour only limited changes to the eurozone's rules.

Dallaglio his own man to the end Controversy and Lawrence Dallaglio have never been very far away from each other throughout a glittering international career. Even the end of his nine-year career came out of the blue, just four days before the start of the season. But then Dallaglio has always been his own man. Ever since emerging onto the international scene Dallaglio has polarised opinions. To supporters of England, Dallaglio could do no wrong. An integral part of a sustained period of success for England, Dallaglio's crowning glory was his part in the side that won the Rugby World Cup in 2003. Rival fans, meanwhile, have tended to take an alternative view, seeing Dallaglio as the epitome of the less agreeable characteristics of English rugby. Never afraid to speak his mind, be it to the referee or the opposition on the pitch, or his coach or the media off it, Dallaglio has sometimes rubbed people up the wrong way. Dallaglio arrived as part of the unheralded England side which became the shock winners of the first Rugby Sevens World Cup in 1993. It took him another two years to graduate to the full England XV, but once there he proved to the manor born. Displaying maturity and physical power beyond his years, Dallaglio rapidly established himself as an automatic choice able to play any one of the three back-row positions at international standard. Within two years of his debut, Dallaglio was offered the England captain's band, and his career continued to go from strength to strength as he made the 1997 Lions tour to South Africa. Although overlooked for the captaincy in favour of England team-mate Martin Johnson, he played a massive role in the 2-1 series victory. But after building up a seemingly unstoppable momentum, Dallaglio's career hit the buffers at speed in 1999. First came the last-minute defeat to Wales in which Dallaglio's decision not to kick for goal in the dying minutes was blamed for costing England a Grand Slam. Worse was to follow though as an infamous newspaper sting cost him his treasured England captaincy. With sensational allegations of drug use - of which he was subsequently cleared - splashed across the front pages, a devastated Dallaglio stepped down as England skipper. But he bounced back, getting his head down at club level before returning to the England fold, albeit now as a lieutenant to new captain Johnson. As a member of a new-look England side on the long road to World Cup glory - a journey not without mishaps as a succession of Grand Slams opportunities were spurned - Dallaglio emerged as a key performer once again. Yet another setback arrived in 2001 as a serious knee injury cut short Dallaglio's involvement on the Lions tour to Australia. Rumours began to circulate that his career was over but, in typical Dallaglio style, he embarked on a punishing schedule of rehabilitation to return an even more fearsome physical specimen. One effect of the injury was to rob Dallaglio of much of his pace, but ever the pragmatist, he reinvented himself as a close quarters number eight of the highest calibre. The only player to play every minute of England's World Cup triumph in Australia, Dallaglio could hardly have done more to secure England's historic win, and for that he will always be held in the highest esteem by England supporters. Following Johnson's retirement, Dallaglio's career came full circle as Woodward restored him as England captain. While England did not hit the heights in Dallaglio's second spell as captain, losing five of their eight post-World Cup Tests, Dallaglio led by example, leaving him as one of the few members of a squad lacking many World Cup stars to live up to expectations. Dallaglio walks away from the international game safe in the knowledge that he will go down as one of England's most accomplished players, if not one of the great captains despite his evident pride in leading his country. The problem now for England is how to replace the almost irreplaceable. The likes of Matt Dawson, Jonny Wilkinson, Phil Vickery and Hill have all been mentioned as contenders for Dallaglio's role as captain. But it is as a player that England will really struggle to replace the 32-year-old. Although players like Joe Worsley and Chris Jones are more than capable of stepping up, the fact that there is no stand-out candidate speaks volumes about Dallaglio's massive influence on English rugby.

Progress on new internet domains By early 2005 the net could have two new domain names. The .post and .travel net domains have been given preliminary approval by the net's administrative body. The names are just two of a total of 10 proposed domains that are being considered by the Internet Corporation for Assigned Names and Numbers, Icann. The other proposed names include a domain for pornography, Asia, mobile phones, an anti-spam domain and one for the Catalan language and culture. The .post domain is backed by the Universal Postal Union that wants to use it as the online marker for every type of postal service and to help co-ordinate the e-commerce efforts of national post offices. The .travel domain would be used by hotels, travel firms, airlines, tourism offices and would help such organisations distinguish themselves online. It is backed by a New York-based trade group called The Travel Partnership. Icann said its early decision on the two domains was in response to the detailed technical and commercial information the organisations behind the names had submitted. Despite this initial approval, Icann cautioned that there was no guarantee that the domains would actually go into service. At the same time Icann is considering proposals for another eight domains. One that may not win approval is a proposal to set up a .xxx domain for pornographic websites. A similar proposal has been made many times in the past. But Icann has been reluctant to approve it because of the difficulty of making pornographers sign up and use it. In 2000 Icann approved seven other new domains that have had varying degrees of success. Three of the new so-called top level domains were for specific industries or organisations such as .museum and .aero. Others such as .info and .biz were intended to be more generic. In total there are in excess of 200 domain names and the majority of these are for nations. But domains that end in the .com suffix are by far the most numerous.

England's defensive crisis grows England's defensive worries have deepened following the withdrawal of Tottenham's Ledley King from the squad to face Holland. Chelsea's John Terry and Wayne Bridge are also out, leaving coach Sven-Goran Eriksson with a real problem for Wednesday's match at Villa Park. Injured Rio Ferdinand and Sol Campbell were both left out of the squad, and Matthew Upson has already pulled out. Wes Brown and Jamie Carragher are likely to be the makeshift partnership. Terry, the captain of Chelsea as they push for the Premiership title, would have been a certain starter in the absence of Campbell and Ferdinand. But now he has pulled out with a bruised knee and is likely to be replaced by Carragher, alongside Brown. Manchester United's Brown last played for England in the defeat by Australia at Upton Park in February 2003. The 25-year-old was only called into the squad on Sunday night as cover following the enforced withdrawal of Upson, who has a hamstring injury. And Brown now looks certain to add to his tally of seven senior appearances for England. King was forced to pull out after his groin injury was assessed by England's medical staff. Eriksson has still not decided whether to call up any further back-up, having already summoned Phil Neville after Bridge pulled out with a foot injury.

Bank voted 8-1 for no rate change The decision to keep interest rates on hold at 4.75% earlier this month was passed 8-1 by the Bank of England's rate-setting body, minutes have shown. One member of the Bank's Monetary Policy Committee (MPC) - Paul Tucker - voted to raise rates to 5%. The news surprised some analysts who had expected the latest minutes to show another unanimous decision. Worries over growth rates and consumer spending were behind the decision to freeze rates, the minutes showed. The Bank's latest inflation report, released last week, had noted that the main reason inflation might fall was weaker consumer spending. However, MPC member Paul Tucker voted for a quarter point rise in interest rates to 5%. He argued that economic growth was picking up, and that the equity, credit and housing markets had been stronger than expected. The Bank's minutes said that risks to the inflation forecast were "sufficiently to the downside" to keep rates on hold at its latest meeting. However, the minutes added: "Some members noted that an increase might be warranted in due course if the economy evolved in line with the central projection". Ross Walker, UK economist at Royal Bank of Scotland, said he was surprised that a dissenting vote had been made so soon. He said the minutes appeared to be "trying to get the market to focus on the possibility of a rise in rates". "If the economy pans out as they expect then they are probably going to have to hike rates." However, he added, any rate increase is not likely to happen until later this year, with MPC members likely to look for a more sustainable pick up in consumer spending before acting.

Howard attacks cost of asylum Michael Howard has launched an attack on the cost of Britain's "chaotic" asylum system under Tony Blair. The Tory leader said English local authorities have spent more than £3bn - or £140 per household - on asylum since Labour won power in 1997. Mr Howard is expected to tell activists in Kent that voters' tolerance and desire to help others are being abused. Other parties and refugee agencies have already attacked Tory plans for annual limits on numbers. Mr Howard said Britain should take its fair share of the world's "genuine refugees". "The anniversary of the liberation of Auschwitz - where my grandmother was murdered along with over a million others - has reminded all of us that we have a moral responsibility to those fleeing persecution," he was due to say. "But if we are to fulfil responsibility, we have to get a grip of the system. "Fair play matters. People want a government that upholds the rules - not one that turns a blind eye when they are bent and abused," he said. "And let's be clear. Our asylum system is being abused - and with it Britain's generosity." Earlier this week, Mr Howard said his party's plans to cut immigration were not racist, arguing they would make the asylum system fairer for genuine refugees. If elected, his party would institute an annual limit on asylum and all claims would be processed overseas. That prompted some charities to say the plans would put refugees' lives at risk if they were turned away once quotas were filled. "If we have a moral responsibility towards people fleeing persecution, then these policies will not provide a safe haven," said Hannah Ward of the Refugee Council. "If people turn up in the UK asking for help they will be turned away. Michael Howard's policy effectively means there is no safe haven in the UK. "When it comes to costs, then perhaps we should start with how decisions are made on asylum seekers. So many of them are shown to be wrong - one in five decisions that are appealed are successfully overturned, rising to half for some nationalities. "We need good quality decision-making on asylum applications because it is delays in the system which cost so much." Tony Blair said Labour would set out workable plans for tackling immigration abuse in the next few weeks and attacked the Tory plans. "By cutting the number of front-line immigration staff at our borders, they will actually make the problem worse," said Mr Blair. Liberal Democrat chairman Matthew Taylor said there needed to be a quick, fair and firm asylum system. But he said it was "absolutely disgusting" to propose a system which could turn away genuine refugees. The Conservatives say there is little risk of this happening as demand for asylum will be considered when quotas are set. On Monday, Mr Howard said: "It's not racist, as some people to claim, to talk about controlling immigration far from it."

Mandelson warns BBC on Campbell The BBC should steer away from "demonising" ex-Downing Street media chief Alastair Campbell, Peter Mandelson has said. The European commissioner and former Labour minister was speaking amid claims that Mr Campbell is part of a Labour "dirty tricks" campaign. That charge was denied by Mr Mandelson, who said the Tories were afraid of Mr Campbell's campaigning skills. He warned the BBC that attacking Mr Campbell had brought it trouble before. That was a reference to the Hutton inquiry following a BBC story claiming Downing Street "sexed up" Iraq's weapons of mass destruction dossier. The affair prompted the resignation of BBC chairman Gavyn Davies, director-general Greg Dyke and reporter Andrew Gilligan. Labour has attracted media criticism for using new freedom of information laws to dig up information about Tory leader Michael Howard's past. Mr Mandelson, a former Labour communications director, told BBC Radio 4's Today programme: "I understand why the Tories will be gunning for Alastair Campbell because they fear his campaigning skills. "What I understand less is why the BBC should be joining with the Tories in driving that agenda. "In my experience of these things, parties which shout about dirty tricks and the like tend to do so because they fear a direct hit in some vulnerable part of their political anatomy. "I suggest the BBC concentrates on the issues and helps the public to understand the policies and the choices that are at stake in the election rather than engages in the process politics, the trivialisation of the campaign. "I think the BBC would be much better advised to leave all this stuff well alone, concentrate on the issues as I say, not resume their demonisation of Alastair Campbell - we all know where that led before." Mr Campbell is acting as an adviser for Labour, which denies engaging in personal campaigning. Conservative co-chairman Liam Fox said Mr Campbell's return and Labour poster plans attacking Mr Howard - recently withdrawn from the party's website - were a sign of "abusive politics". "The government, despite the fact that they would say want to go forward, not back, seem intent on talking about history rather than their own record or even more importantly, about the future," he said on Sunday. Labour peer Baroness Kennedy, who is chairing the Power Inquiry into political disengagement, said people already thought politicians engaged in dirty tricks. "This feeling of distrust is going to be enlarged if this campaigning on all sides is conducted in the way that it looks as if it just might," she said.

Tsunami to cost Sri Lanka $1.3bn Sri Lanka faces a $1.3bn (£691m) bill in 2005 for reconstruction after the tsunami which killed more than 30,000 of its people, its central bank says. This estimate is preliminary, bank governor Sunil Mendis told reporters, and could rise in 2006. The island state is asking for about $320m from the International Monetary Fund to help pay for relief, he said. The bank has 5bn rupees ($50m; £27m) set aside to lend at a lower interest rate to those who lost property. According to Mr Mendis, half the IMF support could come from a freeze on debt repayments, which would free up resources immediately. The rest could come from a five-year emergency loan. Sri Lanka is hoping for a wider freeze from other creditors. The Paris Club of 19 creditors meets on 12 January to discuss a debt moratorium for the nations hit by the tsunami, which ravaged south and east Asia on 26 December. Some 150,000 people across the region are feared to be dead and millions have been left homeless and destitute. A full reckoning of the economic cost to Sri Lanka of the tsunami will not be clear for some time to come. But already it looks likely that growth in the first half of 2005 will slow, Mr Mendis told reporters, although he would not say by how much. One side-effect of the disaster has been that the value of the rupee has risen as foreign funds have flooded into the country. The currency has strengthened 4% since late December, coming close to 100 rupees to the US dollar for the first time in more than six months.

Call for action on internet scam Phone companies are not doing enough to warn customers about internet "rogue-dialling" scams, according to premium phone line regulator Icstis. It has received 45,000 complaints in recent months about dial-up internet connections diverting to premium rate numbers without users' knowledge. Phone companies refuse to pay compensation because they say calls must be paid for. They must warn people earlier about possible fraud, Icstis said. People who use dial-up connections can be affected by the scams. Without realising, a program can be downloaded which diverts internet calls via a premium phone line. Victims often fail to notice until they receive an unusually high bill. Icstis spokesman Rob Dwight said: "Phone companies should get in touch with their customers sooner. "If my bill goes over the usual £50 a month I want to know about it straight away - I don't want to be told when it's hit £750." Phone companies had the systems in place to spot fraudulent activity and artificially-inflated traffic, he said. "We alert them to the numbers that we have under investigation and they should be looking out for these numbers," he added. Telecoms ombudsman Elizabeth France said: "Certainly I would not be surprised to find my credit card company phoning me if I do something out of the ordinary. "So I would expect phone companies to be looking to see if they can have a similar approach." The biggest phone company BT says it is doing what it can to monitor fraud and warn people about rogue dialling. Its advice to customers is to use call barring if they want to prevent calls to premium lines because, under the current system, once the call has been made there's little that can be done. Gavin Patterson, group managing director for BT Consumer, said "We do look at customer's calling patterns and we do make interventions when they are out of the ordinary. "We're looking at the moment at whether we can improve this." But as BT handled 180 million calls a day monitoring was "quite a task in itself", he added. The government has ordered a review of premium line services and is likely to say Icstis should have more power to deal with rogue diallers in future. At the moment, it cannot demand pay-outs on the behalf of customer - it can only close illegal services down. I use free anti-virus software (AVG) and free firewall protection (ZoneAlarm). Both of these tools have prevented unauthorised access and outgoing calls inadvertently and innocently caused by my daughter's love of music sites. How about ISPs informing all customers of such facilities? The responsibility clearly falls with the customer but many fall prey through simply not knowing how to avoid these issues. Ignorance is and always has been an expensive business. Does any one know what happens once this fraud has been committed and recognised? The phone companies pay the people who obtaining money fraudulently, so are these people followed up and prosecuted ? These diallers are mainly downloaded from sites offering illegal MP3s, porn and pirated software. If people didn't visit such sites they'd be considerably less at risk. Whatever happened to personal responsibility? It seems everyone has to be a 'victim' these days! Part of the blame has to rest with the manufacturers of home computer operating systems. A secure system should not allow a web page or email to download and install anything without the user's knowledge. These scams are illegal and telephone companies should have nothing to do with them. They should refuse to pay money over to the perpetrators. Or are they themselves receiving such good returns that it is in their interest to keep the scam going? Why don't BT et al block all premium numbers by default and only turn it off at the customer's request? To anyone who falls foul of this scam - refuse to pay your telephone provider for these calls. After you notify your telephone provider of these fraudulent transactions, they cannot insist on you paying the bill. To do so would be to knowingly assist the fraudsters to commit the fraud. No customers have yet been taken to court for refusing to pay these bills. Disable or remove your modem and use broadband instead - then you have nothing to worry about. Or buy some decent firewall software and anti-virus. You would not walk out in the freezing cold without a coat - you would not drive your car without any insurance - so why not protect your PC? Stop blaming the phone companies - it's not their fault! I was very impressed with our phone company recently. I had kept ringing a hotline number for Kylie tickets and next day they rang back to ask if I was aware there were 40-odd calls to the same number. Great service. And I got the tickets as well! I have a colleague who has fallen victim to this kind of scam. He informed the phone company about it, they subsequently put a block on premium rate numbers. Three months later another huge bill of over £1,000 came in - the block apparently didn't work and he still has to pay for it, even though a block was in place. Phone companies are probably quite happy for their customers to be hit with a huge bill, otherwise they'd be taking extra steps to prevent this kind of problem. I have been scammed of £139. The operator will do nothing about this and, to add insult to injury, I was charged VAT by the government. Premium rate numbers have been subject to various scams ever since they were invented. One example was where thieves would set up a premium rate number and then dial it day and night from phones whose quarterly bills were never paid. The telephone company was the victim here and you can bet that loophole was blocked very quickly. I know people who have run up large bills, despite being IT-literate. From talking to BT in Belfast, I believe that they will shortly be giving out a free application that can stop you dialling expensive numbers without knowing. It's not the fault of phone companies, and at last they are doing something about it. It's about time that the profiteering by the 'legitimate' phone companies came to an end, mainly by doing away with dial-up altogether and bring broadband down to the same price as dial-up! Not only will this ruin things for the dialler scammers but also allow people to update and upgrade their security more easily and quickly. I haven't "fallen victim to a rogue-dialling scam" but I think you're seriously remiss in not pointing out that the vast majority of these scams arise from people trying to access services purporting to provide free pornography. In most cases the user is entirely at fault, which is probably why the telephone companies are rightly unwilling to refund them. My telephone supplier did not inform me that my monthly bill had risen from its normal £3 to £5, to £320. This was because of the scam. They simply billed me. What particularly galls me, over and above having over £300 stolen, is that the supplier and the government (through VAT) are profiting from this crime and will not reimburse me their portion of my losses. How about an automatic monthly cap of say £20 on premium rate calls that you would have to contact your provider to have lifted? That way you could use legitimate premium rate numbers while limiting fraudulent usage. At least any disputed amount would be limited, far easier for a telecoms operator to write off £20 than it is £750. A few years back I was also the target of such scams but thank God I have already upgraded to broadband and nothing was connected to my modem so all I heard was the sound of an attempted connection. How about home users take some responsibility and ensure their anti-virus and firewall software is up to date? That should prevent the vast majority of these scams.

TV future in the hands of viewers With home theatre systems, plasma high-definition TVs, and digital video recorders moving into the living room, the way people watch TV will be radically different in five years' time. That is according to an expert panel which gathered at the annual Consumer Electronics Show in Las Vegas to discuss how these new technologies will impact one of our favourite pastimes. With the US leading the trend, programmes and other content will be delivered to viewers via home networks, through cable, satellite, telecoms companies, and broadband service providers to front rooms and portable devices. One of the most talked-about technologies of CES has been digital and personal video recorders (DVR and PVR). These set-top boxes, like the US's TiVo and the UK's Sky+ system, allow people to record, store, play, pause and forward wind TV programmes when they want. Essentially, the technology allows for much more personalised TV. They are also being built-in to high-definition TV sets, which are big business in Japan and the US, but slower to take off in Europe because of the lack of high-definition programming. Not only can people forward wind through adverts, they can also forget about abiding by network and channel schedules, putting together their own a-la-carte entertainment. But some US networks and cable and satellite companies are worried about what it means for them in terms of advertising revenues as well as "brand identity" and viewer loyalty to channels. Although the US leads in this technology at the moment, it is also a concern that is being raised in Europe, particularly with the growing uptake of services like Sky+. "What happens here today, we will see in nine months to a years' time in the UK," Adam Hume, the BBC Broadcast's futurologist told the BBC News website. For the likes of the BBC, there are no issues of lost advertising revenue yet. It is a more pressing issue at the moment for commercial UK broadcasters, but brand loyalty is important for everyone. "We will be talking more about content brands rather than network brands," said Tim Hanlon, from brand communications firm Starcom MediaVest. "The reality is that with broadband connections, anybody can be the producer of content." He added: "The challenge now is that it is hard to promote a programme with so much choice." What this means, said Stacey Jolna, senior vice president of TV Guide TV group, is that the way people find the content they want to watch has to be simplified for TV viewers. It means that networks, in US terms, or channels could take a leaf out of Google's book and be the search engine of the future, instead of the scheduler to help people find what they want to watch. This kind of channel model might work for the younger iPod generation which is used to taking control of their gadgets and what they play on them. But it might not suit everyone, the panel recognised. Older generations are more comfortable with familiar schedules and channel brands because they know what they are getting. They perhaps do not want so much of the choice put into their hands, Mr Hanlon suggested. "On the other end, you have the kids just out of diapers who are pushing buttons already - everything is possible and available to them," said Mr Hanlon. "Ultimately, the consumer will tell the market they want." Of the 50,000 new gadgets and technologies being showcased at CES, many of them are about enhancing the TV-watching experience. High-definition TV sets are everywhere and many new models of LCD (Liquid Crystal Display) TVs have been launched with DVR capability built into them, instead of being external boxes. One such example launched at the show is Humax's 26-inch LCD TV with an 80-hour TiVo DVR and DVD recorder. One of the US's biggest satellite TV companies, DirectTV, has even launched its own branded DVR at the show with 100-hours of recording capability, instant replay, and a search function. The set can pause and rewind TV for up to 90 hours. And Microsoft chief Bill Gates announced in his pre-show keynote speech a partnership with TiVo, called TiVoToGo, which means people can play recorded programmes on Windows PCs and mobile devices. All these reflect the increasing trend of freeing up multimedia so that people can watch what they want, when they want.

Duff ruled out of Barcelona clash Chelsea's Damien Duff has been ruled out of Wednesday's Champions League clash with Barcelona at the Nou Camp. Duff sustained a knee injury in the FA Cup defeat at Newcastle and manager Jose Mourinho said: "He cannot run. His injury is very painful, so he is out." But Mourinho has revealed defender Willian Gallas and striker Didier Drogba will be in the starting line-up. The Blues boss took the unusual step of naming his side a day before the match, with Jole Cole named in midfield. Mourinho said: "We have one more session but I think Drogba will play, and Gallas will play. "Drogba trained on Monday with no problems and will do the same on Tuesday. Gallas feels he can play and wants to play. We are protecting him still but he will be okay to play." Drogba, Chelsea's £24m striker, has missed the last three weeks through injury. Cech, Ferreira, Carvalho, Terry, Gallas, Tiago, Makelele, Lampard, Cole, Drogba, Gudjohnsen.

Famed music director Viotti dies Conductor Marcello Viotti, director of Venice's famous La Fenice Theatre, has died in Germany at 50. Viotti, director of La Fenice since 2002, conducted at renowned opera houses worldwide including Milan's La Scala and the Vienna State Opera. His time at La Fenice coincided with its reopening in 2003 after it was destroyed by fire in 1996. He fell into a coma after suffering a stroke during rehearsals for Jules Massenet's Manon last week. He conducted some of the best orchestras in the world including the Berlin Philharmonic and the English Chamber Orchestra. Viotti was born in Switzerland and studied the piano, cello and singing at the Lausanne Conservatory. His career breakthrough came in 1982 when he won first prize at the Gino Marinuzzi conducting competition in Italy. Viotti established himself as chief conductor of the Turin Opera and went on to become chief conductor of Munich's Radio Orchestra. At La Fenice Viotti was widely acclaimed for his production of the French composer Massenet's Thais and some of his other productions included Giuseppe Verdi's La Traviata and Richard Strauss's Ariadne auf Naxos. The last opera he directed at La Fenice was Massenet's Le Roi de Lahore. Viotti's debut at the New York's Metropolitan Opera came in 2000 with Giacomo Puccini's Madame Butterfly, followed by La Boheme, La Traviata and Fromental Halevy's La Juive. Giampaolo Vianello, superintendent of the Fenice Theatre Foundation, said: "I am filled with extreme sadness because, other than a great artist, he is missed as a friend - a main character in the latest joyous times, during the rebirth of our theatre." Viotti's last public performance was on 5 February when he conducted Vincenzo Bellini's Norma at the Vienna State Opera.

Tough schedule delays Elliot show Preview performances of the £3m musical Billy Elliot have been delayed to give the child actors a less arduous rehearsal schedule. Director Stephen Daldry made the decision to re-schedule the previews to protect the young stars. Three boys will rotate the demanding role of ballet dancer Billy, which requires them to sing, dance and act. The show's opening night on 12 May at the Victoria Palace Theatre in London remains unaffected by the changes. Preview performances will now be held on 14, 20 and 27 April. "This is one of the most ambitious projects I have been involved with," said Daldry. "The decision has been made to push back our preview performances in order to give our company, with a cast including 45 children, a little extra time so they are as fully prepared as possible." He added: "The young Billy Elliots in particular, making their professional stage debuts in the West End, will benefit from a little extra time to familiarise themselves with all aspects of the production." The three boys playing Billy are James Lomas, 15, George Maguire, 14, and Liam Mower, 12. The other major child parts will also be rotated between young actors. Such are the demands of the show that producers set up a stage school in Newcastle to train potential stars for the show. Child labour laws also mean the young actors can only work for a limited period each week. Adult actors in the show include Tim Healy as Billy's father and Haydn Gwnne as his dance teacher Mrs Wilkinson. Sir Elton John has composed the music. Daldry directed the successful film version of Billy Elliot, adapted from Lee Hall's script. Both were nominated for Oscars, alongside Julie Walters, who played Billy's teacher.

California sets fines for spyware The makers of computer programs that secretly spy on what people do with their home PCs could face hefty fines in California. From 1 January, a new law is being introduced to protect computer users from software known as spyware. The legislation, which was approved by Governor Arnold Schwarzenegger, is designed to safeguard people from hackers and help protect their personal information. Spyware is considered by computer experts to be one of the biggest nuisance and security threats facing PC users in the coming year. The software buries itself in computers and can collect a wide range of information. At its worst, it has the ability to hijack personal data, like passwords, login details and credit card numbers. The programs are so sophisticated they change frequently and become impossible to eradicate. One form of spyware called adware has the ability to collect information on a computer user's web-surfing. It can result in people being bombarded with pop-up ads that are hard to close. In Washington, Congress has been debating four anti-spyware bills, but California is a step ahead. The state's Consumer Protection Against Spyware Act bans the installation of software that takes control of another computer. It also requires companies and websites to disclose whether their systems will install spyware. Consumers are able to seek up to $1,000 in damages if they think they have fallen victim to the intrusive software. The new law marks a continuing trend in California towards tougher privacy rights. A recent survey by Earthlink and Webroot found that 90% of PCs are infested with the surreptitious software and that, on average, each one is harbouring 28 separate spyware programs. Currently users wanting protection from spyware have turned to free programs such as Spybot and Ad-Aware.

Applegate's Charity show closes US musical Sweet Charity has cancelled its run on Broadway after poor ticket sales for its early shows. Star Christina Applegate had to pull out of pre-Broadway performances earlier this month with a broken foot. Producer Barry Weissler said he was "deeply proud" of the show, but said the decision to close it was "painful but fiscally responsible". Applegate, who starred in TV comedy Married With Children, had been hoping to make her Broadway debut in the show. The 33-year-old injured herself while performing in Chicago, and had been hoping to recover in time for its official New York opening on 21 April. She had received mixed reviews for performances in Minneapolis and Chicago. Previews of the $7.5m (£4m) show were due to begin on 4 April. Sweet Charity tells the story of Charity Hope Valentine, a dancer who always falls in love with the wrong man. It was first performed on Broadway in 1966 with Gwen Verdon in the title role, while Shirley MacLaine starred in the 1969 film version.

Yukos owner sues Russia for $28bn The majority owner of embattled Russian oil firm Yukos has sued the Russian government for $28.3bn (£15.2bn). The Kremlin last year seized and sold Yukos' main production arm, Yugansk, to state-run oil group Rosneft for $9.3bn to offset a massive back tax bill. Group Menatep, the Gibraltar-based holding company which controls 51% of Yukos, says this was illegal. Menatep has already asked Rosneft to repay a $900m loan that Yugansk had secured on its assets. The Russian government's argument for selling Yuganskneftegaz - the unit's full name - was that Yukos owed more than $27bn in back taxes for the years from 2000 onwards. It accused the firm of using a web of offshore firms to avoid its tax liabilities, and the courts sent in bailiffs to freeze Yukos accounts and seize Yugansk. But critics say the sell-off, and the assault on Yukos' finances, are part of an attempt to bring the energy industry back under state control. According to Menatep, the government's actions were contrary to the 1994 Energy Charter Treaty, which was designed to regulate disagreements over energy investments. "We have warned the Russian government about their continuing attacks against Yukos, its personnel and its shareholders and we have warned any buyer of Yuganskneftegaz that they would face a lifetime of litigation," said Tim Osborne, a director of Group Menatep. "The time for warning is over and actions to recover the value of our losses begin in earnest today." Menatep said the value of its Yukos shareholding had gone from $17.8bn to "virtually nothing" since 2003 as a result of the Russian government's action, as its shares have fallen 97%. According to its Paris lawyer, Emmanuel Gaillard of Shearman and Sterling, the overall claim is based on that figure, with a 60% addition for the share gains that could have accrued since then. Arbitration of the lawsuit could take place in Stockholm or The Hague, Mr Gaillard said. While Russia has signed the Charter, it has never ratified it - which some experts say could make it difficult for Menatep to press its case. But Mr Gaillard told BBC News that the Charter came into effect on signature, not ratification. "Russia has said in the past that it is bound by it, so as to attract foreign investors," he said. Yukos is still waiting to see what will happen to its filing in a US court for bankruptcy protection. It took the action to try to prevent the forced sale of Yugansk - first to a little-known shell company, which in turn was bought by Rosneft. Yukos claims its downfall was punishment for the political ambitions of its founder Mikhail Khodorkovsky. Mr Khodorkovsky, currently facing fraud and tax evasion charges of his own, was one of the founders of Menatep. He has since signed over his shareholding to one of his fellow investors.

Double win for Sea Inside Spanish movie The Sea Inside has been named best picture and star Javier Bardem best actor at the Bangkok International Film Festival. Based on the true story of a paralysed man's battle to end his life, The Sea Inside was best foreign language film at the 2005 Golden Globe Awards. Annette Bening and Ana Geislerova shared the best actress award at the Bangkok festival. This year's event was scaled down following the Asian tsunami disaster. Falling Down and The Phantom of the Opera director Joel Schumacher won a lifetime achievement award while Hong Kong director Wong Kar-Wai was honoured for promoting Asian cinema. "It's a great honour, I want to share this honour with my Thai colleagues," Wong said. French writer Christophe Barratie and Korean writer Park Chan-Chook shared the best screenplay award for Les Choristes and Old Boy respectively. Now in its third year, the Bangkok International Film Festival is donating profits from ticket sales to the tsunami relief fund.

Could Yukos be a blessing in disguise? Other things being equal, the notion of entrepreneurs languishing in jail while their companies are sold off for a song ought to be bad for business. But in the looking-glass world of modern Russia, the opposite might just be true, a new report* has argued. The study, from the Centre for Economic Policy Research, does not praise the rough handling of oil company Yukos. But it argues that more rigorous tax policing has benefited all Russian firms, even targets of the tax police. "An increase in tax enforcement can increase the amount [of dividends and other income] outside shareholders will receive, even accounting for increased levels of taxation," the authors say. The paper's reasoning is complex, and is based on a sophisticated model of the relationship between tax regimes and corporate governance - in particular, the propensity of management to steal from the company. The calculations demonstrated what many Russian analysts already knew: that increasing the tax rate increases the amount that managers steal, since undeclared income becomes relatively more valuable. In the West, meanwhile, higher tax rates translate far more smoothly into higher government revenues. On the other hand, increasing the rigour with which taxes are collected encourages companies to become more transparent, forcing them to be able to demonstrate their financial position far more accurately. The net result, the authors say, is that the extra amount companies pay in tax is more than compensated for by greater efficiency and financial soundness. After Vladimir Putin became president in 2000, he did not raise taxes, but put a lot of effort - too much, critics argue - into enforcement. Since then, the Russian stock market has more than trebled in value, a rise the authors attribute at least in part to the newly tough approach. The report highlights the case of Sibneft, a Russian oil company that came close to merging with Yukos last year. After Mr Putin came to power, the company's overall effective tax rate rose from 2.6% to 10.4%, and Sibneft was the target of a series of aggressive raids by fiscal police. But shareholders benefited hugely: Sibneft started to pay dividends - $53m in 2000 and almost $1bn in 2001 - and closed down the network of opaque subsidiaries it had previously used for siphoning off unofficial funds. According to the authors, although a variety of changes were sweeping through Russian industry at the time, the increase in tax enforcement is the only likely explanation for the change of fortunes at Sibneft and many of its peers. Does this analysis make sense? In part, certainly. For all its faults, corporate Russia has become far more orderly and law-abiding since 2000. Companies have rushed to list their shares on international stock exchanges - something unthinkable in the wilder days of the 1990s - and most large firms now produce their accounts to international standards. Foreign direct investment, long negligible, is starting to flow in serious amounts - $7bn in 2003 - and stock market returns have been among the healthiest in Europe. But the authors' model does not quite cover all the complexities. For a start, the model assumes that the various parties have clearly-defined motivation: companies want to maximise profit, governments want to maximise tax revenue. In fact, the alarmingly close connections between big business and government in Russia - connections often greased by bribery - blur the apparently antagonistic relationship. Companies can, for example, persuade officials to overlook non-payment of taxes. And the authors' definition of tax enforcement seems unrealistically Western. Genuine, disinterested tax collection might well work wonders in Russia; the problem with recent examples has been the erratic and unpredictable way laws are enforced. The case against Yukos, for example, has moved in fits and starts, with little clarity from the government about its intentions, and little faith from investors that the letter of the law would be followed. As far as most commentators are concerned, the state is pursuing Yukos out of a political vendetta, rather than simply to enforce fiscal rectitude. Since Yukos' founder, Mikhail Khodorkovsky, was arrested a year ago, the Russian market has dropped by 10% - an indication that few investors feel optimistic about the salutary effect on corporate performance.

Redford's vision of Sundance Despite sporting a corduroy cap pulled low over his face plus a pair of dark glasses, Robert Redford cuts an unmistakable figure through the star-struck crowds at Sundance. It's a rare downtown appearance for the man who started the annual festival in Park City, Utah back in the 1980s. Now in its twenty-first year, Sundance continues to grow. Some 45,000 people are estimated to have descended on this small ski town with nothing but movies on the mind. It's an opportunity to meet and make deals. Redford wanted Sundance to be a platform for independent film-makers, but the commercial success of many showcased films have led to criticism that the festival is becoming too mainstream. Smaller festivals like Slamdance and XDance, which take place during the same week in Park City, are competing for Sundance's limelight. But Redford is not worried. "The more the merrier," he says. "The point was to create opportunities for people who may not have them. "Once independent film had a place where the work could be seen, suddenly the merchants came. With them the celebrities came, then the paparazzi - and suddenly it began to take on a whole new tone," explains Redford. "People started to say we had gone mainstream and Hollywood, but actually Hollywood came to us because suddenly there was good business in independent film," he adds. International film-makers have always been celebrated here, but 2005 is the first year a dedicated World Dramatic and Documentary competition is being held. Redford wants the festival to encompass viewpoints he believes the American media fails to reflect, particularly how the US is perceived internationally. He has never hidden the fact that he is a Democrat. But he reserves particular disdain for the current Republican administration. "It's the ability to maintain the importance of dissent in a democratic system which right now is under threat with the attitude of this administration," he says. "I think many voices are being shut down or accused of being unpatriotic if they want to express another point of view. That's very unhealthy and very dangerous. "If we take that policy into the world, there will be the same victims and the same consequences." Sundance isn't just one big screening. There are discussion panels and Q&A sessions with directors tackling controversial topics like America's "culture wars" and the Iraq war. While Redford wishes the festival to be a forum for dissent, the profile of the audience is fairly monolithic. Educated, middle class and predominantly white Americans comes Sundance, with views from the same end of the political spectrum - anti-war and socially liberal. But Redford knows this and started the Sundance TV Channel in an effort to reach a wider audience. "When you look at the films here, what we are presenting is very much egalitarian. And it's about good films and good story-telling be it African America, Asian, women, gay, lesbian. "Sooner or later we will do away with those stereotypical labels and people will say 'it's just a film by so-and so'."

IAAF awaits Greek pair's response Kostas Kenteris and Katerina Thanou are yet to respond to doping charges from the International Association of Athletics Federations (IAAF). The Greek pair were charged after missing a series of routine drugs tests in Tel Aviv, Chicago and Athens. They have until midnight on 16 December and an IAAF spokesman said: "We're sure their responses are on their way." If they do not respond or their explanations are rejected, they will be provisionally banned from competition. They will then face a hearing in front of the Greek Federation, which will ultimately determine their fate. Their former coach Christos Tzekos has also been charged with distributing banned substances. Under IAAF rules, the athletes could receive a maximum one-year suspension. Kenteris and Thanou already face a criminal trial after being charged with avoiding a drug test on the eve of the Athens Olympics and then faking a motorcyle crash. No date for the trial has yet been set and again Tzekos is also facing charges. The IAAF issued an official warning to the trio last year after they were discovered training in Qatar rather than in Crete, where they had said they would be. All athletes must inform their national federations where they are at all times, so they can be available for out-of-competition drugs tests. But Kenteris and Thanou then went on to skip tests in Tel Aviv and Chicago, when they decided to fly back to Greece early. Then just before the Olympics, the pair dramatically missed another test in Athens and withdrew from the Games.

Tsunami slows Sri Lanka's growth Sri Lanka's president has launched a reconstruction drive worth $3.5bn (£1.8bn) by appealing for peace and national unity. President Kumaratunga said it was now important to find a peaceful solution to years of internal conflict. Meanwhile, the International Monetary Fund (IMF) said damage from the tsunami would cut one percentage point from Sri Lanka's economic growth this year. It estimated the wave left physical damage equal to 6.5% of the economy. Separately, the International Labour Organisation (ILO) said that at least one million people have lost their livelihoods in Sri Lanka and Indonesia alone. It called for action to create jobs. President Kumaratunga attended a ceremony in the southern town of Hambantota. She was joined by government and opposition politicians, together with Buddhist, Hindu, Muslim and Christian clergy. Prime Minister Mahinda Rajapakse laid the foundation stone on a new housing project intended to provide 6,000 homes for survivors of the tsunami. Mrs Kumaratunga called for the tragedy to be "the start of a new beginning to rebuild our nation". "We are a country blessed with so many natural resources and we have not made use of them fully. Instead we have been squabbling, fighting," she added. Norway's peace negotiator Erik Solheim is due to arrive on Wednesday to try to revive peace talks in the decades-long conflict between government forces and the Tamil Tigers, who want a separate state in the north east of the country. Reconstruction efforts in eastern Sri Lanka have been hampered by tensions between the two sides. The IMF said that the Sri Lankan authorities' initial estimates have put the physical damage at $1.3 to $1.5bn, but added that the implications for the economy were much wider than this. "The broader macroeconomic impact will clearly be substantial but the details are difficult to assess at this early stage," the IMF said. Growth, inflation, the balance of payments and foreign exchange reserves are all expected to show the effects of lost businesses and reconstruction costs. "The fishing industry has been devastated, agricultural production may be affected and tourism will suffer, especially in the short term," the report said. The ILO estimated that 400,000 Sri Lankans have lost their jobs, mostly in these three industries. Earnings from tourism this year are expected to be 15% lower than last year. Economic growth this year is expected to be 4%, which is about 1% less than previously forecast. Inflation could climb to 14% compared to a previous estimate of 12%. Although major exports have not suffered, the IMF expects the reconstruction effort will require higher imports which could damage the balance of payments. Foreign exchange reserves may become strained as "Sri Lanka will be hard pressed to keep international reserves at the pre-tsunami level" which totalled more than two months worth of imports. Last week, the IMF approved Sri Lanka's request for a freeze on loan repayments.

US consumer confidence up Consumers' confidence in the state of the US economy is at its highest for five months and they are optimistic about 2005, an influential survey says. The feel-good factor among US consumers rose in December for the first time since July according to new data. The Conference Board survey of 5,000 households pointed to renewed optimism about job creation and economic growth. US retailers have reported strong sales over the past 10 days after a slow start to the crucial festive season. According to figures also released on Tuesday, sales in shopping malls in the week to 25 December were 4.3% higher than in 2003 following a last minute rush. Wal-Mart, the largest US retailer, has said its December sales are expected to be better than previously forecast because of strong post-Christmas sales. It is expecting annual sales growth of between 1% and 3% for the month. Consumer confidence figures are considered a key economic indicator because consumer spending accounts for about two thirds of all economic activity in the United States. "The continuing economic expansion, combined with job growth, has consumers ending this year on a high note," said Lynn Franco, director of the Conference Board's consumer research centre. "And consumers' outlook suggests that the economy will continue to expand in the first half of next year." The overall US economy has performed strongly in recent months, prompting the Federal Reserve to increase interest rates five times since June.

Thomas out of Six Nations Wales captain Gareth Thomas has been ruled out of the rest of the Six Nations with a broken thumb. The full-back will have surgery on Monday after fracturing his thumb in the 24-18 win over France on Saturday. But Welsh legend Phil Bennett insisted Wales can cope without Thomas as they chase a first Grand Slam in 27 years. Bennett told BBC Sport: "Such is the spirit in the camp, they'll put Kevin Morgan at 15, Rhys Williams at wing and just carry on." Thomas will miss the match against Scotland on 13 March, and what promises to be a huge encounter against the Irish six days later. Bennett added: "It's a setback. He's a great captain, he leads from the front and the boys love him." Thomas was replaced at half-time by Williams as his side turned around a 15-6 deficit in Paris. "With Gareth missing I would think Michael Owen will be our captain," said Wales coach Mike Ruddock. "He did a great job in the second half in France. He has been vice-captain all along throughout the championship." Wales travel to Edinburgh to take on Scotland in a fortnight and then host Ireland in Cardiff in the final round of matches in what could be the Grand Slam and championship decider. Bennett, an inspirational fly-half for Llanelli and Wales in the 1970s, insisted the national team were entering a new golden period. "It was a great game and a magnificent result for Wales," Bennett told BBC Radio Five Live's Sportsweek programme. "The way this young team are blending, the glory days are on their way back. "We couldn't get possession early on and France dominated and scored two tries. "Had they been ruthless, Wales could have gone into the interval 30 points down. But they didn't take their chances. "Wales defended fairly well but you cannot give that sort of quality ball to good sides. "The All Blacks would have been ruthless and buried us in the first half. But the character we showed in the second half was quite outstanding."

Fannie Mae 'should restate books' US mortgage company Fannie Mae should restate its earnings, a move that is likely to put a billion-dollar dent in its accounts, watchdogs have said. The Securities & Exchange Commission accused Fannie Mae of using techniques that "did not comply in material respects" with accounting standards. Fannie Mae last month warned that some records were incorrect. The other main US mortgage firm Freddie Mac restated earnings by $5bn (£2.6bn) last year after a probe of its books. The SEC's comments are likely to increase pressure on Congress to strengthen supervision of Fannie Mae and Freddie Mac. The two firms are key parts of the US financial system and effectively underwrite the mortgage market, financing nearly half of all American house purchases and dealing actively in bonds and other financial instruments. The investigation of Freddie Mac in June 2003 sparked concerns about the wider health of the industry and raised questionsmarks over the role of the Office of Federal Housing Enterprise Oversight (OFHEO), the industry's main regulator. Having been pricked into action, the OFHEO turned its attention to Fannie May and in September this year said that the firm had tweaked its books to spread earnings more smoothly across quarters and play down the amount of risk it had taken on. The SEC found similar problems. The watchdog's chief accountant Donald Nicolaisen said that "Fannie Mae's methodology of assessing, measuring and documenting hedge ineffectiveness was inadequate and was not supported" by generally accepted accounting principles.

UK heading wrong way, says Howard Tony Blair has had the chance to tackle the problems facing Britain and has failed, Michael Howard has said. "Britain is heading in the wrong direction", the Conservative leader said in his New Year message. Mr Blair's government was a "bossy, interfering government that takes decisions that should be made by individuals," he added. But Labour's campaign spokesman Fraser Kemp responded: "Britain is working, don't let the Tories wreck it again". Mr Howard also paid tribute to the nation's character for its generous response to the Asian quake disaster. The catastrophe was overshadowing the hopes for the future at this usually positive time of the year, Mr Howard said. "We watched the scenes of destruction with a sense of disbelief. The scale, the speed, the ferocity of what happened on Boxing Day is difficult to grasp. "Yet Britain's response has shone a light on our nation's character. The last week has shown that the warm, caring heart of Britain beats as strong as ever." He went on to reflect on the values that "most Britons hold dear". Looking ahead to the coming general election, he pledged to "turn these beliefs into reality" and set out the choices he says are facing Britain. "How much tax do people want to pay? Who will give taxpayers value for money, the clean hospitals and good, disciplined schools they want? "Who can be trusted to get a grip on the disorder on our streets and the chaos in our immigration system?" Mr Blair has failed to tackle these problems, he claimed, saying he has the "wrong solution" to them. "The result is big government and higher taxes eroding incentives, undermining enterprise and denying people choice. "Worst of all, it is a government that has wasted people's money and failed to tackle the problems families face today." The Tories, he said, can cut crime and improve public services without asking people to pay more taxes. "We can have progress without losing what makes Britain great - its tolerance, the respect for the rule of law, the ability of everyone to fulfil their potential. "We simply need to change direction. The election will give Britain the chance to change." This is the record Mr Blair will have to defend in the coming months, he said, urging voters to hold him to account. But Labour spokesman Mr Kemp said: "It would be more appropriate for this message to come out on 1 April, not 1 January." "Let us never forget that when Michael Howard was in government Britain suffered mass unemployment, 15% interest rates, record home repossessions, and the introduction of the poll tax. "With Labour Britain is working. Rather than alluding to false promises Michael Howard should be starting 2005 with an apology to the British people for the misery that the government, of which he was a member, inflicted upon the country.

Elvis set to top UK singles chart Rock 'n' roll legend Elvis is set to top the UK singles chart on Sunday, 27 years after his death. The re-release of hit song Jailhouse Rock was out-selling X Factor winner Steve Brockstein's cover of Against All Odds by 2,000 copies on Tuesday. If the record does make the top spot, it will be Elvis' 19th UK number one. The last time he topped the charts was with the remix of the little-known song A Little Less Conversation, which was number one in June 2002. If Jailhouse Rock does reach number one on Sunday, it will be the 999th in the history of the UK pop charts. The song first topped the charts in 1958. Chart analysts say Elvis could score the 1000th number one as well. His record One Night will be released the following week, followed the week after by A Fool Such As I, as part of his record company SonyBMG's new Elvis campaign. It has called it "the most ambitious singles release campaign in the history of the UK record industry".

Ban on hunting comes into force Fox hunting with dogs is now illegal in England and Wales after a ban on the activity came into force overnight. The law faces a stiff test this weekend, with the Countryside Alliance saying many hunts will be out in force. Chief police officers spokesman Nigel Yeo said he expected most people would obey the law - by drag hunting or chasing foxes then shooting them. He said police would challenge the "one of two isolated hunts" which are threatening to break the law. But Simon Hart of the Countryside Alliance has questioned how police will ensure there are no violations. "The definitions of legal and illegal hunting are so blurred that the police are being asked to make impossible judgements. "You can hunt a rat, but not a mouse, a rabbit but not a hare, an artificial scent, but not a real one," he said. The Attorney General, Lord Goldsmith, has so far issued no instructions to police on how they should deal with hunters who violate the law. He said he will consult the Director of Public Prosecutions and the police "in the near future" to decide what measures to take with regards to hunting prosecutions. He has rejected a "blanket policy" of not enforcing the ban until the House of Lords has considered its legality. John Cooper, a barrister and chairman of the League Against Cruel Sports, said the anti-hunting lobby expects the authorities to prosecute wherever there is clear evidence of illegal hunting practices. He said police had "acknowledged their duty to investigate allegations of hunting offences". The Beaufort Hunt had one pack out on Thursday and has promised a hunt this weekend. Under the new law hunters have a number of legal options available to them. As well as being able to mount a hunt for an artificial scent, it will still be legal for the hunts to "flush out" foxes, as long as they shoot their quarry rather than set the hounds on them. "We are not going away. We will keep these hounds going, we will keep this community going and in the end we will come back and hunt when hunting is legal again," hunt master, Captain Ian Farquhar, said. But Tony Banks, Labour MP for West Ham, said the issue would soon disappear, and that "people in a few years time will be wondering what it was all about". He said had the government not prevaricated since 1997 in introducing the ban, hunting with dogs would have passed into history like other former country pursuits such as otter hunting and badger baiting. "Let the election decide this because the Conservatives have made clear that if they get elected into government they will restore hunting," he said.

Rover deal 'may cost 2,000 jobs' Some 2,000 jobs at MG Rover's Midlands plant may be cut if investment in the firm by a Chinese car maker goes ahead, the Financial Times has reported. Shanghai Automotive Industry Corp plans to shift production of the Rover 25 to China and export it to the UK, sources close to the negotiations tell the FT. But Rover told BBC News that reports of job cuts were "speculation". A tie-up, seen as Rover's last chance to save its Longbridge plant, has been pushed by UK Chancellor Gordon Brown. Rover confirmed the tie-up would take place "not very far away from this time". Rover bosses have said they are "confident" the £1bn ($1.9bn) investment deal would be signed in March or early April. Transport & General Worker's Union general secretary Tony Woodley repeated his view on Friday that all mergers led to some job cuts. He said investment in new models was needed to ensure the future of the Birmingham plant. "This is a very crucial and delicate time and our efforts are targeted to securing new models for the company which will mean jobs for our people," he said. SAIC says none of its money will be paid to the four owners of Rover, who have been accused by unions of awarding themselves exorbitant salaries, the FT reports. "SAIC is extremely concerned to ensure that its money is used to invest in the business rather than be distributed to the shareholders," the newspaper quotes a source close to the Chinese firm. Meanwhile, according to Chinese state press reports, small state-owned carmaker Nanjing Auto is in negotiations with Rover and SAIC to take a 20% stake in the joint venture. SAIC was unavailable for comment on the job cuts when contacted by BBC News. Rover and SAIC signed a technology-sharing agreement in August.

Cabinet anger at Brown cash raid Ministers are unhappy about plans to use Whitehall cash to keep council tax bills down, local government minister Nick Raynsford has acknowledged. Gordon Brown reallocated £512m from central to local government budgets in his pre-Budget report on Thursday. Mr Raynsford said he had held some "pretty frank discussions" with fellow ministers over the plans. But he said local governments had to deliver good services without big council tax rises. The central government cash is part of a £1bn package to help local authorities in England keep next year's council tax rises below 5%, in what is likely to be a general election year. Mr Raynsford said nearly all central government departments had an interest in well run local authorities. And he confirmed rows over the issue with ministerial colleagues. "Obviously we had some pretty frank discussions about this," he told BBC Radio 4's The World at One. But he said there was a recognition that "a good settlement for local government" was important to health, education and "other government departments". Ministers had to be sure local government could deliver without "unreasonable council tax increases", he added. Mr Raynsford dismissed a suggestion the move was designed to keep council taxes down ahead of an expected general election. "This is a response to the concerns that have been voiced by local government about the pressures they face." Mr Raynsford also plans to make savings of £100m by making changes to local government pensions schemes. These would raise the age from which retiring workers could claim their pensions and limit how much they received if they retired early. He insisted the changes were "very modest" and designed to tackle the problem of workers retiring "very early". But general secretary of the public services union Unison Dave Prentis criticised the plans. "If you want world class public services you don't get that by hitting people as they approach retirement."

German bidder in talks with LSE Deutsche Boerse bosses have held "constructive, professional and friendly" talks with the London Stock Exchange (LSE), its chief has said. Werner Seifert met LSE chief executive Clara Furse amid rumours the German group may raise its bid to £1.5bn ($2.9bn) from its initial £1.3bn offer. However, rival suitor Euronext also upped the ante in the bid battle. Ahead of talks with the LSE on Friday, the pan-European bourse said it may be prepared to make its offer in cash. The Paris-based exchange, owner of Liffe in London, is reported to be ready to raise £1.4bn to fund a bid. The news came as Deutsche Boerse held its third meeting with the LSE since its bid approach in December which was turned down by the London exchange for undervaluing the business. However, the LSE did agree 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. However, neither side has made a formal offer for the LSE, with sources claiming such a step may still be weeks away. Deutsche Boerse could also face mounting opposition to a bid at home. Among sweeteners reported to have been discussed by Mr Seifert with Ms Furse were plans to move the management of its cash and Eurex derivatives market to London, as well as two members of its executive board. But, Hans Reckers, a board member of Germany's central bank, the Bundesbank, said that cash trading should also remain in Frankfurt, something Deutsche Boerse could move to the UK. "It is not just the headquarters of the Boerse but also important market segments that must stay permanently in Frankfurt. This has special importance for the business activities of the banks and the consultants," he said. Local government officials in Frankfurt's state of Hessen have also spoken out against the move. "It is our wish that the headquarters stay here to maintain Frankfurt's standing as the number one financial centre in continental Europe," Alois Rhiel, its minister for economic affairs added.

Police detain Chinese milk bosses Chinese police have detained three top executives at milk firm Yili, with reports suggesting that they are being investigated for embezzlement. Yili - full name Inner Mongolia Yili Industrial - confirmed its chairman, chief financial officer and securities representative were all in custody. The company, China's third-largest milk producer, is to hold an emergency meeting to debate the issue. A Yili spokesman said it may now move to oust chairman Zheng Junhuai. The spokesman did not say why the three had been detained by the police. The official Xinhua News Agency said the arrest was linked to alleged embezzlement. Yili has recently been the subject of intense media speculation over its financial operations. Executives are suspected of wrongly using 417m yuan ($50.4m; £26m) of company funds to support a management buyout back in July 2003. Yili's shares were suspended on Tuesday, having fallen by 10% on Monday. The company and its two main rivals - market leader Mengniu Dairy and second place Bright Dairy - dominate a Chinese milk market that has grown by almost 30% over the past five years. Analysts wondered if the scandal at Yili - the latest to befall Chinese companies this year - could be followed by further revelations of corporate wrongdoing. "Investors wonder if Yili's scandal, one of a slew to be uncovered this year, isn't just the tip of the iceberg," said Chen Huiqin, an analyst at Huatai Securities.

Jones doping probe begins An investigation into doping claims against Marion Jones has been opened by the International Olympic Committee. IOC president Jacques Rogge has set up a disciplinary body to look into claims by Victor Conte, of Balco Laboratories. Jones, who says she is innocent, could lose all her Olympic medals after Conte said he gave her performance-enhancing drugs before the Sydney Olympics. But Rogge said it was too early to speculate about that, hoping only that "the truth will emerge". Any decision on the medals would be taken by the IOC's executive board and could hinge on interpretation of a rule stating that Olympic decisions can only be challenged within three years of the Games closing. The Sydney Olympics ended more than four years ago, but World Anti-Doping Agency chief Dick Pound said the rule may not apply because the allegations are only coming out now. "We will find a way to deal with that," Pound said. In a statement released through her attorney Rich Nichols, Jones repeated her innocence and vowed she would be cleared. "Victor Conte's allegations are not true and the truth will be revealed for the world to see as the legal process moves forward," she said. "Conte is someone who is under federal indictment and has a record of issuing contradictory, inconsistent statements."

US duo in first spam conviction A brother and sister in the US have been convicted of sending hundreds of thousands of unsolicited e-mail messages to AOL subscribers. It is the first criminal prosecution of internet spam distributors. Jurors in Virginia recommended that the man, Jeremy Jaynes, serve nine years in prison and that his sister, Jessica DeGroot, be fined $7,500. They were convicted under a state law that bars the sending of bulk e-mails using fake addresses. They will be formally sentenced next year. A third defendant, Richard Rutkowski, was acquitted. Prosecutors said Jaynes was "a snake oil salesman in a new format", using the internet to peddle useless wares, news agency Associated Press reported. A "Fed-Ex refund processor" was supposed to allow people to earn $75 an hour working from home. Another item on sale was an "internet history eraser". His sister helped him process credit card payments. Jaynes amassed a fortune of $24m from his sales, prosecutors said. "He's been successful ripping people off all these years," AP quoted prosecutor Russell McGuire as saying. Jaynes was also found guilty of breaking a state law which prohibits the sending of more than 100,000 e-mails in 30 days, Virginia State Attorney General Jerry Kilgore reportedly said. Prosecutors had asked for 15 years in jail for Jaynes, and a jail term for his sister. But Jaynes' lawyer David Oblon called the nine-year recommended term "outrageous" and said his client believed he was innocent. He pointed out that all three of the accused lived in North Carolina and were unaware of the Virginia state law. Spam messages are estimated to account for at least 60% of all e-mails sent.

Councils prepare to set tax rises Council tax in Scotland is set to rise by an average of about 4% in the coming year, BBC Scotland has learned. Authorities will decide final figures on Thursday when projected increases will be more than twice the rate of inflation, which is currently 1.6%. The finance minister has urged councils to limit increases but they have warned that they will struggle to maintain services unless funding is increased. They say much additional government money is for new initiatives. Scottish Finance Minister, Tom McCabe MSP, said: "Last week in parliament I announced an additional £419m for core expenditure to local government in Scotland. "That's a 5.5% increase and sits against an inflation rate of 1.6%, so I think we have quite rightly said to councils this year that we would at the very least ask them to exercise restraint." Mr McCabe is also looking for local authorities to become more efficient and save money in coming years. He told BBC Radio Scotland's Sunday Live programme: "Here in Scotland we have 32 councils who all have their own individual collection systems for council tax, they have their own payroll systems and their own human resource systems. "We think there has to be opportunities there for rationalisation and using the money saved to reinvest in frontline services." The councils' umbrella organisation Cosla, which provided BBC Scotland with the indicative figures for next year, warned that councils would face a continuous struggle to maintain services. Mr McCabe has promised them about £8.1bn next year. "However, most of the increase is targeted to new initiatives and councils will experience difficulties in maintaining core services," a Cosla spokesman said. Cosla says that it is willing to work with the executive on finding efficiency savings but that these will not be enough to maintain services. They say the funding plans for the next three years will see councils lose more of the share of public spending. The Conservatives accuse the Scottish Executive of using the council tax to raise funds because it is too afraid to raise income tax. The Tory finance spokesman, Brian Monteith MSP, said: "Its a form of disguise... yet again we see that council tax is being used as a way of passing on costs. "Scared of actually using its three pence income tax that it could put up, what we've seen over the years is more and more burdens being put onto local authorities and the council tax payer having to pick up the bill." There are also warnings that unless funding to councils is increased in the next few years then services may have to be reduced. Linda Knox, Director of the Scottish Local Authority Management Centre at Strathclyde University, said: "With this current settlement the increase is slowing. At the same time, the burdens on councils are greater than they were. "The settlement figures don't include pay increases and the executive is also requiring a substantial figure - in the area of £325m - in efficiency savings across the settlement period." Education will be protected from any cuts but Linda Knox says this will mean other services will suffer. She said: "In practice, that will mean a 4-5% cut for other services. On the face of it the settlement looks like an increase of about 9.7% but by the time you take into account other factors its probably only about 1% in real terms."

McClaren eyes Uefa Cup top spot Steve McClaren wants his Middlesbrough team to win their Uefa Cup group by beating Partizan Belgrade. Boro have already qualified for the knockout stages alongside Partizan and Villareal, at the expense of Lazio. But boss McClaren is looking for a victory which would mean they avoid a team that has played in the Champions League in Friday's third-round draw. "To need a win to finish top is fantastic, but it is going to be a tough one," McClaren said. "When the draw was made, I thought it was the toughest group of them all - and so it has proved. "Lazio were favourites, Villarreal have been semi-finalists, and Partizan have fantastic experience in Europe. "The pleasing thing is we did the business in the first two games. "Winning those two has put us in a great position and it has been a fantastic experience playing these teams."

China 'to overtake US net use' The Chinese net-using population looks set to exceed that of the US in less than three years, says a report. China's net users number 100m but this represents less than 8% of the country's 1.3 billion people. Market analysts Panlogic predicts that net users in China will exceed the 137 million US users of the net by 2008. The report says that the country's culture will mean that Chinese people will use the net for very different ends than in many other nations. Already net use in China has a very different character than in many Western nations, said William Makower, chief executive of Panlogic. In many Western nations desktop computers that can access the net are hard to escape at work. By contrast in China workplace machines are relatively rare. This, combined with the relatively high cost of PCs in China and the time it takes to get phone lines installed, helps to explains the huge number of net cafes in China. Only 36% of Chinese homes have telephones according to reports. "Net usage tends to happen in the evening," said Mr Makower, "they get access only when they go home and go off to the internet café." "Its fundamentally different usage to what we have here," he said. Net use in China was still very much an urban phenomenon with most users living on the country's eastern seaboard or in its three biggest cities. The net is key to helping Chinese people keep in touch with friends, said Mr Makower. Many people use it in preference to the phone or arrange to meet up with friends at net cafes. What people can do on the net is also limited by aspects of Chinese life. For instance, said Mr Makower, credit cards are rare in China partly because of fears people have about getting in to debt. "The most popular way to pay is Cash-On-Delivery," he said, "and that's quite a brake to the development of e-commerce." The arrival of foreign banks in China, due in 2006, could mean greater use of credit cards but for the moment they are rare, said Mr Makower. But if Chinese people are not spending cash online they are interested in the news they can get via the net and the view it gives them on Western ways of living. "A large part of the attraction of the internet is that it goes below the radar," he said. "Generally it's more difficult for the government to be able to control it." "Its real value is as an open window onto what's happening elsewhere in the world," he said. Government restrictions on how much advertising can appear on television means that the net is a source of many commercial messages Chinese people would not see anywhere else. Familiarity with the net also has a certain social cachet. "It's a sign of them having made it that they can use the internet and navigate around it," said Mr Makower.

Sayeed to stand down as Tory MP Tory MP Jonathan Sayeed is to stand down on the grounds of ill health. The decision comes after Mr Sayeed survived an attempt to de-select him in a row over allegations he had profited from private tours of Parliament. The Mid-Bedfordshire MP had denied a claim that he was paid for guiding visitors around the Palace of Westminster. Conservative leader Michael Howard has now accepted the MP's resignation, it has been announced. Mr Sayeed was suspended from Parliament for two weeks last month after the Commons standards and privileges committee said his conduct had fallen "well below the standards expected". The Conservative Party had already been withdrawn the whip for a month. But his constituency association voted against a move to deselect him, with Mr Sayeed winning 173 of the 299 votes. After the vote, Mr Sayeed said only a fifth of association members had voted against him and he intended to get on with winning the election. But the vote prompted constituency association president Sir Stanley Odell to resign in protest. The Standards and Privileges Committee inquiry was launched after the Sunday Times alleged English Manner Limited charged clients for access to Westminster through Mr Sayeed. Mr Sayeed had denied the claims, saying the suspension was "unjust and wrong" but he made an "unreserved" apology to MPs in the Commons chamber. He insisted that the committee's report had contained a "few errors of fact". Mr Sayeed has been MP for Mid-Bedfordshire since 1997. He represented Bristol East from 1983 to 1992.

S Korean consumers spending again South Korea looks set to sustain its revival thanks to renewed private consumption, its central bank says. The country's economy has suffered from an overhang of personal debt after its consumers' credit card spending spree. Card use fell sharply last year, but is now picking up again with a rise in spending of 14.8% year-on-year. "The economy is now heading upward rather than downward," said central bank governor Park Seung. "The worst seems to have passed." Mr Park's statement came as the bank decided to keep interest rates at an all-time low of 3.25%. It had cut rates in November to help revive the economy, but rising inflation - reaching 0.7% month-on-month in January - has stopped it from cutting further. Economic growth in 2004 was about 4.7%, with the central bank predicting 4% growth this year. Other indicators are also suggesting that the country is inching back towards economic health. Exports - traditionally the driver for expansion in Asian economies - grew slower in January than at any time in 17 months. But domestic demand seems to be taking up the slack. Consumer confidence has bounced back from a four-year low in January, and retail sales were up 2.1% in December. Credit card debt is falling, with only one in 13 of the 48 million cards now in default - down from one in eight at the end of 2003. One of its biggest card issuers, LG Card, was rescued from collapse in December, having almost imploded under the weight of its customers' bad debts. The government last year tightened the rules for card lending to keep the card glut under control.

Air China in $1bn London listing China's national airline is to make its overseas stock market debut with a dual listing in London and Hong Kong, the London Stock Exchange (LSE) has said. Air China plans to raise $1bn (£514m) from the flotation. Share trading will begin on 15 December, the LSE said. For China's aviation authorities, the listing is part of the modernisation of its airline sector to cope with soaring demand for air travel. No further details of the share price or number of shares were given. The LSE has been working hard to woo Chinese companies to choose London, rather than New York for their listings. It opened an Asia-Pacific office in Hong Kong last month. "We are delighted that Air China has chosen London for its listing outside China," said LSE chief executive Clara Furse. "The London Stock Exchange offers ambitious Chinese companies access to the world's most international equity market combined with high regulatory and corporate governance standards," she said. A spokesman for the LSE said: "We've been engaged with them (Air China) for about 18 months, two years now." As part of its pitch to bring listings to London, the LSE is thought to be highlighting the extra costs and red-tape imposed by new US laws passed since the Enron scandal, whilst stressing London's strong regulatory environment. Germany's Chancellor Gerhard Schroeder began a three-day visit to Beijing on Monday by signing a deal worth 1bn euros ($1.3bn; £690m) for Airbus to sell 23 new planes to Air China, the Deutsche Welle radio station reported. China's booming economy has created huge demand for air travel among middle-class Chinese, turning the country into a sales battleground between rival plane makers Airbus and Boeing. Air China's long-awaited flotation is part of a strategy to modernise a dozen state-owned carriers, which have been reorganised into three groups under Air China, China Southern and China Eastern. Merrill Lynch are sole bookrunners for Air China's flotation, which will take the form of a share placing with institutional investors in London, though retail investors may be able to buy Air China shares in Hong Kong. Air China's primary listing will be in Hong Kong, with a secondary listing in London. The shares will be denominated in Hong Kong dollars. However, investors may be wary of Chinese stocks. The collapse last week of China Aviation Oil, the Singapore-listed arm of a Chinese jet fuel trader, has cast the spotlight on corporate governance shortcomings at Chinese firms.

US gives foreign firms extra time Foreign firms have been given an extra year to meet tough new corporate governance regulations imposed by the US stock market watchdog. The Securities and Exchange Commission has extended the deadline to get in line with the rules until 15 July 2006. Many foreign firms had protested that the SEC was imposing an unfair burden. The new rules are the result of the Sarbanes-Oxley Act, part of the US clean-up after corporate scandals such as Enron and Worldcom. Section 404 of the Sox Act, as the legislation is nicknamed, calls for all firms to certify that their financial reporting is in line with US rules. Big US firms already have to meet the requirements, but smaller ones and foreign-based firms which list their shares on US stock markets originally had until the middle of this year. Over the past few months, delegations of European and other business leaders have been heading to the SEC's Washington DC headquarters to protest. They say the burden is too expensive and the timescale too short and some, particularly the UK's CBI, warned that companies would choose to let their US listings drop rather than get in line with section 404. The latest delegation from the CBI met SEC officials on Wednesday, just before the decision to relax the deadline was announced. "I think this signifies a change of heart at the SEC," CBI director-general Sir Digby Jones told the BBC's Today programme. "They have been listening to us and to many overseas companies, who have reminded America what globalisation really means: that they can't make these rules in isolation." The SEC said it had taken into consideration the fact that foreign companies were already working to meet more onerous financial reporting rules in their home countries. The European Union, in particular, was imposing new international financial reporting standards in 2005, it noted. "I don't underestimate the effort (compliance) will require... but this extension will provide additional time for those issuers to take a good hard look at their internal controls," said Donald Nicolaisen, the SEC's chief accountant.

Straw backs ending China embargo UK Foreign Secretary Jack Straw has defended plans to end the European Union's arms embargo on China, despite opposition from the US and Japan. Mr Straw, visiting Beijing, noted arms embargoes applied to China, Burma and Zimbabwe but not to North Korea, which he said had a terrible rights record. The EU imposed its arms ban on China in 1989 after troops opened fire on protestors in Tiananmen Square. Mr Straw also signed a deal on China-UK tourism. It is expected this would increase the number of Chinese tourists by 40,000 per year, providing $120m in revenue. China has in the past said it sees the weapons ban as politically driven, and does not want it lifted in order to buy more weapons. Mr Straw, speaking at a joint news conference with Chinese Foreign Minister Li Zhaoxing, stressed this point. "The result of any decision [to lift the arms embargo] should not be an increase in arms exports from European Union member states to China, either in quantitative or qualitative terms," Mr Straw said. Earlier this week he said he expected the embargo to be lifted within six months. But Mr Straw faces tough opposition to the move. Tory foreign affairs spokesman Michael Ancram said lifting the arms embargo would be "irresponsible" and would damage Britain's relations with the US. He said Mr Straw was "naive beyond belief" if he accepted China's claim it does not want the ban lifted in order to buy weapons. The French want the embargo lifted because they want to sell arms to China; the Chinese want it lifted because they want to buy arms and battlefield technology from Europe." When he was in Tokyo earlier this week, Japanese Foreign Minister Nobutaka Machimura told the British minister that his plan to remove the embargo was " a worrying issue that concerns the security and environment of not only Japan, but also East Asia overall". Washington argues that if the embargo is lifted, it could lead to a buying spree for arms that China could use to threaten its diplomatic rival Taiwan. Beijing says Taiwan is part of Chinese territory and wants to unite it with the mainland, by force if necessary. The US is bound by law to help Taiwan defend itself. Washington has also voiced concern that the human rights conditions in China have not improved enough to merit an end to the embargo. It is an issue raised by human rights groups too. Brad Adams, from the UK's Human Rights Watch, said: "This is a huge political signal from Europe that they are willing to forget about Tiananmen Square." But Mr Straw insisted the EU's code of conduct on arms exports meant tough criteria on human rights still had to be met if the embargo was lifted.

Oasis star fined for German brawl Oasis singer Liam Gallagher has been fined 50,000 euros (£35,000) after a fight in a German hotel two years ago. Gallagher was arrested along with drummer Alan White and three other members of the band's entourage after the brawl in Munich in December 2002. The band said they were victims of an "unprovoked attack" in a nightclub. But police said Gallagher kicked an officer in the chest and had large amounts of alcohol and drugs - possibly cocaine - in his blood. Gallagher lost two front teeth in the fight, which led to the band abandoning their German tour. His brother and bandmate Noel was in bed at the time. "The process has stopped by paying 50,000 euros," said Anton Winkler, spokesman for the Munich prosecutor. At the time, police said a "physical altercation" broke out among the musicians at about 0200 local time. That led to one of the group being "jostled" and falling onto the table of five Italian guests - causing the fight, they said. The fight continued outside, where "one of the officers was kicked in the chest with full force by Liam Gallagher... and suffered minor injuries", they said.

Santy worm makes unwelcome visit Thousands of website bulletin boards have been defaced by a virus that used Google to spread across the net. The Santy worm first appeared on 20 December and within 24 hours had successfully hit more than 40,000 websites. The malicious program exploits a vulnerability in the widely used phpBB software. Santy's spread has now been stopped after Google began blocking infected sites searching for new victims. The worm replaces chat forums with a webpage announcing that the site had been defaced by the malicious program. Soon after being infected, sites hit by the worm started randomly searching for other websites running the vulnerable phpBB software. Once Google started blocking these search queries the rate of infection tailed off sharply. A message sent to Finnish security firm F-Secure by Google's security team said: "While a seven hour response for something like this is not outrageous, we think we can and should do better." "We will be reviewing our procedures to improve our response time in the future to similar problems," the Google team said. Security firms estimate that about 1m websites run their discussion groups and forums with the open source phpBB program. The worst of the attack now seems to be over as a search conducted on the morning of the 22 December produced only 1,440 hits for sites showing the text used in the defacement message. People using the sites hit by Santy will not be affected by the worm. Santy is not the first malicious program to use Google to help it spread. In July a variant of the MyDoom virus slowed down searches on Google as the program flooded the search site with queries looking for new e-mail addresses to send itself to.

US bank 'loses' customer details The Bank of America has revealed it has lost computer tapes containing account details of more than one million customers who are US federal employees. Several members of the US Senate are among those affected, who could now be vulnerable to identity theft. Senate sources say the missing tapes may have been stolen from a plane by baggage handlers. The bank gave no details of how the records disappeared, but said they had probably not been misused. Customers' accounts were being monitoring and account holders would be notified if any "unusual activity" was detected, bank officials said. Bank of America said the tapes went missing in December while being shipped to a back-up data centre. "We, with federal law authorities, have done a very robust, thorough investigation on this and neither we nor they would make the statement lightly that we believe those tapes to be lost," Alexandra Tower, a spokeswoman for the North Carolina-based bank, told Time magazine. But although there was no evidence of criminal activity, the bank said, the Secret Service - a federal agency whose brief includes investigations of serious financial crime - is said to be looking into the loss. New York Senator Charles Schumer said he was told by the Senate Rules Committee that the tapes were probably stolen from a commercial plane. "Whether it is identity theft, terrorism, or other theft, in this new complicated world baggage handlers should have background checks and more care should be taken for who is hired for these increasingly sensitive positions," the Democrat senator said. Details of his Vermont colleague Pat Leahy's credit card account are among those missing, Senator Leahy's spokeswoman Tracy Schmaler said. About 900,000 military and civilian staff at the defence department are among the 1.2 million affected, according to a Pentagon spokesman.

Orange colour clash set for court A row over the colour orange could hit the courts after mobile phone giant Orange launched action against a new mobile venture from Easyjet's founder. Orange said it was starting proceedings against the Easymobile service for trademark infringement. Easymobile uses Easygroup's orange branding. Founder Stelios Haji-Ioannou has pledged to contest the action. The move comes after the two sides failed to come to an agreement after six months of talks. Orange claims the new low-cost mobile service has infringed its rights regarding the use of the colour orange and could confuse customers - known as "passing off". "Our brand, and the rights associated with it are extremely important to us," Orange said in a statement. "In the absence of any firm commitment from Easy, we have been left with no choice but to start an action for trademark infringement and passing off." However, Mr Haji-Ioannou, who plans to launch Easymobile next month, vowed to fight back, saying: "We have nothing to be afraid of in this court case. "It is our right to use our own corporate colour for which we have become famous during the last 10 years." The Easyjet founder also said he planned to add a disclaimer to the Easygroup website to ensure customers are aware the Easymobile brand has no connection to Orange. The new service is the latest venture from Easygroup, which includes a chain of internet cafes, budget car rentals and an intercity bus service. Easymobile will allow customers to go online to order SIM cards and airtime - which will be rented from T-Mobile - for their existing handsets.

A decade of good website design The web looks very different today than it did 10 years ago. Back in 1994, Yahoo had only just launched, most websites were text-based and Amazon, Google and eBay had yet to appear. But, says usability guru Dr Jakob Nielsen, some things have stayed constant in that decade, namely the principles of what makes a site easy to use. Dr Nielsen has looked back at a decade of work on usability and considered whether the 34 core guidelines drawn up back then are relevant to the web of today. "Roughly 80% of the things we found 10 years ago are still an issue today," he said. "Some have gone away because users have changed and 10% have changed because technology has changed." Some design crimes, such as splash screens that get between a user and the site they are trying to visit, and web designers indulging their artistic urges have almost disappeared, said Dr Nielsen. "But there's great stability on usability concerns," he told the BBC News website. Dr Nielsen said the basic principles of usability, centring around ease of use and clear thinking about a site's total design, were as important as ever. "It's necessary to be aware of these things as issues because they remain as such," he said. They are still important because the net has not changed as much as people thought it would. "A lot of people thought that design and usability was only a temporary problem because broadband was taking off," he said. "But there are a very small number of cases where usability issues go away because you have broadband." Dr Nielsen said the success of sites such as Google, Amazon, eBay and Yahoo showed that close attention to design and user needs was important. "Those four sites are extremely profitable and extremely successful," said Dr Nielsen, adding that they have largely defined commercial success on the net. "All are based on user empowerment and make it easy for people to do things on the internet," he said. "They are making simple but powerful tools available to the user. "None of them have a fancy or glamorous look," he added, declaring himself surprised that these sites have not been more widely copied. In the future, Dr Nielsen believes that search engines will play an even bigger part in helping people get to grips with the huge amount of information online. "They are becoming like the operating system to the internet," he said. But, he said, the fact that they are useful now does not meant that they could not do better. Currently, he said, search sites did not do a very good job of describing the information that they return in response to queries. Often people had to look at a website just to judge whether it was useful or not. Tools that watch the behaviour of people on websites to see what they actually find useful could also help refine results. Research by Dr Nielsen shows that people are getting more sophisticated in their use of search engines. The latest statistics on how many words people use on search engines shows that, on average, they use 2.2 terms. In 1994 only 1.3 words were used. "I think it's amazing that we have seen a doubling in a 10-year period of those search terms," said Dr Nielsen. You can hear more from Jakob Nielsen and web design on the BBC World Service programme, Go Digital

Mobile multimedia slow to catch on There is no doubt that mobile phones sporting cameras and colour screens are hugely popular. Consumers swapping old phones for slinkier, dinkier versions are thought to be responsible for a 26% increase in the number of phones sold during the third quarter of 2004, according to analysts Gartner More than 167 million handsets were sold globally between July and September 2004, a period that, according to Gartner analyst Carolina Milanesi is "seldom strong". But although consumers have mobiles that can take and send snaps, sounds and video clips few, so far, are taking the chance to do so. In fact, the numbers of people not taking and sending pictures, audio and video is growing. Figures gathered by Continental Research shows that 36% of British camera phone users have never sent a multimedia message (MMS), up from 7% in 2003. This is despite the fact that, during the same period, the numbers of camera phones in the UK more than doubled to 7.5 million. Getting mobile phone users to send multimedia messages is really important for operators keen to squeeze more cash out of their customers and offset the cost of subsidising the handsets people are buying. The problem they face, said Shailendra Jain, head of MMS firm Adamind, is educating people in how to send the multimedia messages using their funky handsets. "Also," he said, "they have to simplify the interface so its not rocket science in terms of someone understanding it." Research bears out the suspicion that people are not sending multimedia messages because they do not know how to. According to Continental Research, 29% of the people it questioned said they were technophobes that tended to shy away from innovation. Only 11% regarded themselves as technically savvy enough to send a picture or video message. The fact that multimedia services are not interoperable across networks and phones only adds to people's reluctance to start sending them, said Mr Jain. "They ask themselves: 'If I'm streaming video from one handset to another will it work?'" he said. "There's a lot of user apprehension about that." There are other deeper technical reasons why multimedia messages are not being pushed as strongly as they might. Andrew Bud, executive chairman of messaging firm Mblox, said mobile phone operators cap the number of messages that can be circulating at any one time for fear of overwhelming the system. "The rate we can send MMS into the mobile network is fairly constant," he said. The reason for this is that there are finite capacities for data traffic on the second generation networks that currently have the most users. No-one wants to take the risk of swamping these relatively narrow channels so the number of MMS messages is capped, said Mr Bud. This has led to operators finding other technologies, particularly one known as Wap-push, to get multimedia to their customers. But when networks do find a good way to get multimedia to their customers, the results can be dramatic. Israeli technology firm Celltick has found a way to broadcast data across phone networks in a way that does not overwhelm existing bandwidth. One of the first firms to use the Celltick service is Hutch India, the largest mobile firm in the country. The broadcast system gets multimedia to customers via a rolling menu far faster than would be possible with other systems. While not multimedia messaging, such a system gets people used to seeing their phones as a device that can handle all different types of content. As a result 40% of the subscribers to the Hutch Alive, which uses Celltick's broadcast technology, regularly click for more pictures, sounds and images from the operator. "Operators really need to start utilising this tool to reach their customers," said Yaron Toren, spokesman for Celltick. Until then, multimedia will be a message that is not getting through.

Thompson says Gerrard should stay Liverpool legend Phil Thompson has pleaded with Steve Gerrard to reject any overtures from Chelsea. The ex-Reds assistant boss also warned that any honours won at Chelsea would be cheapened by the bid to buy success. He told BBC Radio Five Live: "Liverpool would think about any bid made but it will all be down to Steve in the end. "But it wouldn't have that same sweet feeling at Chelsea, where it's all money-orientated and about simply buying the best." Thompson reacted sharply to some Liverpool supporters, who criticised Gerrard's performance in the Carling Cup final against Chelsea. A number of fans questioned Gerrard's commitment and sarcastically branded his own goal in Liverpool's 3-2 defeat as his first goal for Chelsea. Thompson added: "I heard those comments from so-called supporters and they were diabolical, absolutely outrageous. "Stevie carried the club last year and this year. He's always put Liverpool first." Thompson, who savoured seven title-winning seasons and two European Cup triumphs during his Anfield playing career, is confident that the lure of Champions League football will keep Gerrard at Anfield. "I hope Champions League football will beckon for Liverpool - either as winners or as finishing fourth in the Premiership - and he will commit himself. "There has been a lot of soul-searching the way things have gone lately. "I hope he's hardening to the fact he will have big decisions to make but I hope it is to the benefit of Steven Gerrard and I hope it is worthwhile for Liverpool."

Spam e-mails tempt net shoppers Computer users across the world continue to ignore security warnings about spam e-mails and are being lured into buying goods, a report suggests. More than a quarter have bought software through spam e-mails and 24% have bought clothes or jewellery. As well as profiting from selling goods or services and driving advertising traffic, organised crime rings can use spam to glean personal information. The Business Software Alliance (BSA) warned that people should "stay alert". "Many online consumers don't consider the true motives of spammers," said Mike Newton, a spokesperson for the BSA which commissioned the survey. "By selling software that appears to be legitimate in genuine looking packaging or through sophisticated websites, spammers are hiding spyware without consumers' knowledge. "Once the software is installed on PCs and networks, information that is given over the internet can be obtained and abused." The results also showed that the proportion of people reading - or admitting to reading - and taking advantage of adult entertainment spam e-mails is low, at one in 10. The research, which covered 6,000 people in six countries and their attitudes towards junk e-mails, revealed that Brazilians were the most likely to read spam. A third of them read unsolicited junk e-mail and 66% buy goods or services after receiving spam. The French were the second most likely to buy something (48%), with 44% of Britons taking advantage of products and services. This was despite 38% of people in all countries being worried about their net security because of the amount of spam they get. More than a third of respondents said they were concerned that spam e-mails contained viruses or programs that attempted to collect personal information. "Both industry and the media have helped to raise awareness of the issues that surround illegitimate e-mail, helping to reduce the potential financial damage and nuisance from phishing attacks and spoof websites," said William Plante, director of corporate security and fraud protection at security firm Symantec. "At the same time, consumers need to continue exercising caution and protect themselves from harm with a mixture of spam filters, spyware detection software and sound judgement."

Prince crowned 'top music earner' Prince earned more than any other pop star in 2004, beating artists such Madonna and Elton John in US magazine Rolling Stone's annual list. The singer banked $56.5m (£30.4m) from concerts, album and publishing sales with his Musicology tour and album. He kept Madonna in second place, as she earned $54.9m (£29.5m) while embarking on her global Re-Invention Tour. Veterans Simon and Garfunkel were in 10th place, their comeback tour helping them earn $24.9m (£13.4m) last year. "Prince returned to centre stage after a decade in the commercial wilderness," the magazine reported. The singer's 2004 tour took $90.3m (£48.5m) in ticket sales and he sold 1.9 million copies of his latest album Musicology. Although she grossed more than Prince last year, Madonna remained in second place because of the "monumental" production costs of her tour. Heavy metal band Metallica's Madly in Anger with the World tour helped push their 2004 earnings up to $43.1m (£23.1m). They were ahead of Sir Elton John, who took fourth place and almost $42.7m (£23m) from performances including a debut on the Las Vegas Strip. Other seasoned performers in the list included Rod Stewart, whose sold-out shows and third volume of The Great American Songbook covers album helped net him £35m (£19m). The highest-ranking rap act in the list was 50 Cent, who at number 19 took $24m (£13m) to the bank.

Mobile networks seek turbo boost Third-generation mobile (3G) networks need to get faster if they are to deliver fast internet surfing on the move and exciting new services. That was one of the messages from the mobile industry at the 3GSM World Congress in Cannes last week. Fast 3G networks are here but the focus has shifted to their evolution into a higher bandwidth service, says the Global Mobile Suppliers Association. At 3GSM, Siemens showed off a system that transmits faster mobile data. The German company said data could be transmitted at one gigabit a second - up to 20 times faster than current 3G networks. The system is not available commercially yet, but Motorola, the US mobile handset and infrastructure maker, held a clinic for mobile operators on HSDPA (High Speed Downlink Packet Access), a high-speed, high bandwidth technology available now. Early HSDPA systems typically offer around two megabits per second (Mbps) compared with less than 384 kilobits per second (Kbps) on standard 3G networks. "High-Speed Downlink Packet Access (HSDPA) - sometimes called Super 3G - will be vital for profitable services like mobile internet browsing and mobile video clips," according to a report published by UK-based research consultancy Analysys. A number of companies are developing the technology. Nokia and Canada-based wireless communication products company Sierra Wireless recently agreed to work together on High Speed Downlink Packet Access. The two companies aim to jointly market the HSDPA solution to global network operator customers. "While HSDPA theoretically enables data rates up to a maximum of 14Mbps, practical throughputs will be lower than this in wide-area networks," said Dr Alastair Brydon, author of the Analysys report: Pushing Beyond the Limits of 3G with HSDPA and Other Enhancements. "The typical average user rate in a real implementation is likely to be in the region of one megabit per second which, even at this lower rate, will more than double the capacity... when compared to basic WCDMA [3G]," he added. Motorola has conducted five trials of its technology and says speeds of 2.9Mbps have been recorded at the edge of an outdoor 3G cell using a single HSDPA device. But some mobile operators are opting for a technology called Evolution, Data Optimised (EV-DO). US operator Sprint ordered a broadband data upgrade to its 3G network at the end of last year. We are "expanding our network and deploying EV-DO technology to meet customer demand for faster wireless speeds," said Oliver Valente, Sprint's vice president for technology development, when the contract was announced. As part of $3bn in multi-year contracts announced late last year, Sprint will spend around $1bn on EV-DO technology from Lucent Technologies, Nortel Networks and Motorola that provides average data speeds of 0.3-0.5 megabits a second, and peak download rates of 2.4Mbps. MMO2, the UK-based operator with services in the UK, Ireland and Germany, has opted for technology based on the High Speed Downlink Packet Access (HSDPA) standard. Using technology from Lucent, it will offer data speeds of 3.6Mbps from next summer on its Isle of Man 3G network, and will eventually support speeds of up to 14.4Mbps. US operator Cingular Wireless is also adopting HSDPA, using technology from Lucent alongside equipment from Siemens and Ericsson. Siemens' plans for a one gigabit network may be more than a user needs today, but Christoph Caselitz, president of the mobile networks division at the firm says that: "By the time the next generation of mobile communication debuts in 2015, the need for transmission capacities for voice, data, image and multimedia is conservatively anticipated to rise by a factor of 10." Siemens - in collaboration with the Fraunhofer German-Sino Lab for Mobile Communications and the Institute for Applied Radio System Technology - has souped up mobile communications by using three transmitting and four receiving antennae, instead of the usual one. This enables a data transmission, such as sending a big file or video, to be broken up into different flows of data that can be sent simultaneously over one radio frequency band. The speeds offered by3G mobile seemed fast at the time mobile operators were paying huge sums for 3G licences. But today, instead of connecting to the internet by slow, dial-up phone connection, many people are used to broadband networks that offer speeds of 0.5 megabits a second - must faster than 3G. This means users are likely to find 3G disappointing unless the networks are souped up. If they aren't, those lucrative "power users", such as computer geeks and busy business people will avoid them for all but the most urgent tasks, reducing the potential revenues available to mobile operators. But one gigabit a second systems will not be available immediately. Siemens says that though the system works in the laboratory, it still has to assess the mobility of multiple-antennae devices and conduct field trials. A commercial system could be as far away as 2012, though Siemens did not rule out an earlier date.

Terror detainees win Lords appeal Detaining foreign terrorist suspects without trial breaks human rights laws, the UK's highest court has ruled. In a blow to the government's anti-terror measures, the House of Lords law lords ruled by an eight to one majority in favour of appeals by nine detainees. Most of the men are being indefinitely held in Belmarsh prison, south London. The law lords said the measures were incompatible with European human rights laws. The men will stay behind bars while ministers decide how to react. The ruling creates a major problem for Charles Clarke on his first day as home secretary following David Blunkett's resignation. The Liberal Democrats say Mr Clarke should use the fact he is new to the job to take issue with a law established by his predecessor, David Blunkett. Belmarsh prison has been dubbed Britain's Guantanamo Bay by civil rights campaigners opposed to the use of emergency anti-terror laws. The detainees took their case to the House of Lords after the Court of Appeal backed the Home Office's powers to hold them without limit or charge. The government opted out of part of the European Convention on Human Rights concerning the right to a fair trial in order to bring in anti-terrorism legislation in response to the 11 September attacks in the US. Any foreign national suspected of links with terrorism can be detained or can opt to be deported. However those detained cannot be deported if this would mean persecution in their homeland. On Thursday, senior law lord Lord Bingham said the rules were incompatible with the European Convention on Human Rights as they allowed detentions "in a way that discriminates on the ground of nationality or immigration status". Lord Nicholls of Birkenhead, in his ruling, said: "Indefinite imprisonment without charge or trial is anathema in any country which observes the rule of law. "It deprives the detained person of the protection a criminal trial is intended to afford." He said the weakness for the government's case was that it was trying to justify detention without trial for foreign suspects - but not for British suspects. Lord Hoffmann said: "The real threat to the life of the nation, in the sense of a people living in accordance with its traditional laws and political values, comes not from terrorism but from laws such as these." But Lord Walker of Gestingthorpe, the one law lord to oppose the appeal, said the anti-terror laws contained important safeguards against oppression. In a statement, detainee 'A' in Woodhill Prison said: "I hope now that the government will act upon this decision, scrap this illegal 'law' and release me and the other internees to return to our families and loved ones." The case was heard by a panel of nine law lords rather than the usual five because of the constitutional importance of the case. Ben Emmerson QC, representing seven of the detainees, said the men had already been in custody for nearly three years. He said they had been given no idea when, if ever, they would be released, had never been formally interviewed and there was no prospect they would ever be put on trial. When the men were first held, they took their cases to the Special Immigration Appeals Commission (SIAC). The commission ruled on 30 July, 2002 that the anti-terror act unjustifiably discriminated against foreign nationals as British people could not be held in the same way. But that ruling was later overturned by the Court of Appeal who said there was a state of emergency threatening the life of the nation.

China now top trader with Japan China overtook the US to become Japan's biggest trading partner in 2004, according to numbers released by Japan's Finance Ministry on Wednesday. China accounted for 20.1% of Japan's trade in 2004, compared with 18.6% for the US. In 2003, the US was ahead with 20.5% and China came second with 19.2%. The change highlights China's growing importance as an economic powerhouse. In 2004, Japan's imports from and exports to China (and Hong Kong) added up to 22,201bn yen ($214.6bn;£114.5bn). This is the highest figure for Japanese trade with China since records began in 1947. It compares with 20,479.5bn yen in trade with the US. Trade with the US during 2004 was hurt by one-off factors, including a 13-month ban on US beef imports following the discovery of a cow infected with mad cow disease (BSE) in the US. However, economists predict China will become an even more important Japanese trading partner in the coming years. On Tuesday, figures showed China's economy grew by 9.5% in 2004 and experts say the overall growth picture remains strong. Analysts see two spurs to future growth as being China's membership of the World Trade Organisation and lower trade tariffs. During 2004, Japan's trade surplus grew 17.9% to 12.011 trillion yen, with more than half the surplus, 6.962 trillion yen, accounted for by its trade with the US. In December, the surplus grew 1.8% on a year ago to 1.14 trillion yen thanks to stronger-than-expected exports.

Goldsmith denies war advice claim The attorney general has denied his statement to Parliament about the legality of the Iraq war was drafted by Downing Street officials. Lord Goldsmith said Lord Falconer and Baroness Morgan played no part in drafting the answer. He added the answer represented his view that the war was legal, but was not a summary of his advice to the PM. The government has resisted calls to publish the full advice, saying such papers are always kept confidential. In a statement, Lord Goldsmith said: "I was fully involved throughout the drafting process and personally finalised, and of course approved, the answer." He said the answer had been prepared in his office with the involvement of Solicitor General Harriet Harman, two of his own officials, three Foreign Office officials, a QC, Christopher Greenwood and the then Lord Chancellor, Lord Irvine of Lairg. "No other minister or official was involved in any way." He suggested the claim that Lord Falconer and Lady Morgan had drafted the answer were the result of a mis-transcription of his evidence to the Butler Inquiry into pre-war intelligence. "As I have always made clear, I set out in the answer my own genuinely held, independent view that military action was lawful under the existing (UN) Security Council resolutions," he said. "The answer did not purport to be a summary of my confidential legal advice to government." Former foreign secretary Robin Cook said Lord Goldsmith's admission that his parliamentary answer was not a summary of his legal opinion suggested Parliament may have been misled. "The attorney general may never have presented his answer as a summary, but others certainly did," he said. "What is clear from his statement today is that he does not believe that it was a full, accurate summary of his formal opinion." Earlier, Tony Blair dismissed questions about the attorney general's advice, and said his Parliamentary statement had been a "fair summary" of his opinion. "That's what he (Lord Goldsmith) said and that's what I say. He has dealt with this time and time and time again," Mr Blair told his monthly news conference in Downing Street. He refused to answer further questions on the issue. On the question of whether such papers have always been kept confidential, Tory MP Michael Mates, who is a member of the Commons intelligence and security committee and was part of the Butler inquiry, told the BBC: "That, as a general rule, is right, but it's not an absolute rule." He said there had been other occasions when advice had been published, most recently regarding Prince Charles's marriage plans. The government could not pick and choose when to use the convention, he said. Mr Mates added: "This may be one of those special occasions... when it would be in the public interest to see the advice which the attorney general gave to the prime minister." The claims about Lord Falconer and Baroness Morgan's involvement were made in a book published this week by Philippe Sands QC, a member of Cherie Blair's Matrix Chambers. He also says Lord Goldsmith warned Tony Blair on 7 March 2003 that the Iraq war could be illegal without a second UN resolution sanctioning military action. A short statement about Lord Goldsmith's position presented in a written parliamentary answer on 17 March 2003 - just before a crucial Commons vote on the military action - did not suggest this. Former minister Clare Short, who resigned from the government over the Iraq war, said the ministerial answer was the same statement that was earlier shown to the cabinet as it discussed military action. She said the full advice should have been attached, according to the ministerial code, and demanded a Lords inquiry into the matter. The Conservatives and Liberal Democrats say they still want the publication of the full legal advice given by the Attorney General. Lib Dem foreign affairs spokesman Sir Menzies Campbell said Lord Goldsmith's statement still did not clear up the outstanding issues. "If his original advice of 7 March accepted that military action might be illegal, how was it that he resolved any such doubts by the time the Parliamentary answer was published on 17 March?" he said. "Only the fullest disclosure will now do."

Mobiles 'not media players yet' Mobiles are not yet ready to be all-singing, all-dancing multimedia devices which will replace portable media players, say two reports. Despite moves to bring music download services to mobiles, people do not want to trade multimedia services with size and battery life, said Jupiter. A separate study by Gartner has also said real-time TV broadcasts to mobiles is "unlikely" in Europe until 2007. Technical issues and standards must be resolved first, said the report. Batteries already have to cope with other services that operators offer, like video playback, video messaging, megapixel cameras and games amongst others. Bringing music download services based on the success of computer-based download services will put more demands on battery life. Fifty percent of Europeans said the size of a mobile was the most important factor when it came to choosing their phone, but more power demands tend to mean larger handsets. "Mobile phone music services must not be positioned to compete with the PC music experience as the handsets are not yet ready," said Thomas Husson, mobile analyst at Jupiter research. "Mobile music services should be new and different, and enable operators to differentiate their brands and support third generation network launches." Other problems facing mobile music include limited storage on phones, compared to portable players which can hold up to 40GB of music. The mobile industry is keen to get into music downloading, after the success of Apple's iTunes, Napster and other net music download services. With phones getting smarter and more powerful, there are also demands to be able to watch TV on the move. In the US, services like TiVo To Go let people transfer pre-recorded TV content onto their phones. But, the Gartner report on mobile TV broadcasting in Europe suggests direct broadcasting will have to wait. Currently, TV-like services, where clips are downloaded, are offered by several European operators, like Italy's TIM and 3. Mobile TV will have to overcome several barriers before it is widely taken up though, said the report. Various standards and ways of getting TV signals to mobiles are being worked on globally. In Europe, trials in Berlin and Helsinki are making use of terrestrial TV masts to broadcast compressed signals to handsets with extra receivers. A service from the Norwegian Broadcasting Corporation lets people watch TV programmes on their mobiles 24 hours a day. The service uses 3GP technology, one of the standards for mobile TV. But at the end of 2004, the European Telecommunications Institute (Etsi) formally adopted Digital Video Broadcasting Handheld (DVB-H) as the mobile TV broadcasting standard for Europe. Operators will be working on the standard as a way to bring real-time broadcasts to mobiles, as well as trying to overcome several other barriers. The cost and infrastructure needs to set up the services will need to be addressed. Handsets also need to be able to work with the DVB-H standard. TV services will have to live up to the expectations of the digital TV generation too, which expects good quality images at low prices, according to analysts. People are also likely to be put off watching TV on such small screens, said Gartner. Digital video recorders, like Europe's Sky+ box, and video-on-demand services mean people have much more control over what TV they watch. As a result, people may see broadcasting straight to mobiles as taking away that control. More powerful smartphones like the XDA II, Nokia 6600, SonyEricsson P900 and the Orange E200, offering web access, text and multimedia messaging, e-mail, calendar and gaming are becoming increasingly common. A report by analysts InStat/MDR has predicted that smartphone shipments will grow by 44% over the next five years. It says that smartphones will make up 117 million out of 833 million handsets shipped globally by 2009.

Stars gear up for Bafta ceremony Film stars from across the globe are preparing to walk the red carpet at this year's Bafta award ceremony. The 2005 Orange British Academy Film Awards are being held at The Odeon in London's Leicester Square. A host of Hollywood stars, including Cate Blanchett, Leonardo DiCaprio, Keanu Reeves and Richard Gere, are expected to attend Saturday's ceremony. Hosted by Stephen Fry, the glittering ceremony will be broadcast on BBC One at 2010 GMT. Other actors expected to add to the glamour of the biggest night in UK film are Gael Garcia Bernal, Imelda Staunton, Diane Kruger, Christian Slater, Anjelica Huston, Helen Mirren and former James Bond star Pierce Brosnan. Hollywood blockbuster The Aviator, starring DiCaprio, leads the field with 14 nominations, including best film. It is up against Eternal Sunshine of the Spotless Mind, Finding Neverland, The Motorcycle Diaries and British film Vera Drake, which has 11 nominations. British hope Imelda Staunton is one of the favourites to land the best actress award for her gritty role as a backstreet abortionist in the small-budget film. Other nominees in the best actress category include Charlize Theron for Monster, Ziyi Zhang for House of Flying Daggers and UK star Kate Winslet, who has two nods for her roles in Eternal Sunshine of the Spotless Mind and Finding Neverland. DiCaprio faces competition from Bernal, Jamie Foxx, Jim Carrey and Johnny Depp in the best actor category. And British actor Clive Owen is hoping to repeat his Golden Globe success with a best supporting actor award for his role in Closer. His co-star Natalie Portman is up against Blanchett, Heather Craney, Julie Cristie and Meryl Streep in the best supporting actress category. Mike Leigh is up for the best director award for Vera Drake, alongside Martin Scorsese for The Aviator, Michael Mann for Collateral, Michel Gondry for Eternal Sunshine of the Spotless Mind and Marc Forster for Finding Neverland.

Souped-up wi-fi is on the horizon Super high-speed wireless data networks could soon be in use in the UK. The government's wireless watchdog is seeking help on the best way to regulate the technology behind such networks called Ultra Wideband (UWB). Ofcom wants to ensure that the arrival of UWB-using devices does not cause problems for those that already use the same part of the radio spectrum. UWB makes it possible to stream huge amounts of data through the air over short distances. One of the more likely uses of UWB is to make it possible to send DVD quality video images wirelessly to TV screens or to let people beam music to media players around their home. The technology has the potential to transmit hundreds of megabits of data per second. UWB could also be used to create so-called Personal Area Networks that let a person's gadgets quickly and easily swap data amongst themselves. The technology works over a range up to 10 metres and uses billions of short radio pulses every second to carry data. At the recent Consumer Electronics Show in Las Vegas products with UWB chips built-in got their first public airing. Currently, use of UWB is only allowed in the UK under a strict licencing scheme. "We're seeking opinion from industry to find out whether or not we should allow UWB on a licence-exempt basis," said a spokesman for Ofcom. Companies have until 24 March to respond. In April the EC is due to start its own consultation on Europe-wide adoption of UWB. The cross-Europe body for radio regulators, known as the European Conference of Postal and Telecommunications Administrations (CEPT), is carrying out research for this harmonisation programme. Early sight of the CEPT work has caused controversy as some think it over-emphasises UWB's potential to interfere with existing users. By contrast a preliminary Ofcom report found that it would be quite straight-forward to deploy UWB without causing problems for those that already use it. The Ofcom spokesman said it was considering imposing a "mask" or set of technical restrictions on UWB-using devices. "We would want these devices to have very strict controls on power levels so they can not transmit a long way or over a wide area," he said. Despite the current restrictions the technology is already being used. Cambridge-based Ubisense has about 40 customers around the world using the short-range radio technology, said David Theriault, standards and regulatory liaison for Ubisense. He said that UWB was driving novel ways to interact with computers. "It's like having a 3D mouse all the time," he said. He said that European decisions on what to do with UWB allied with IEEE decisions on the exact specifications for it would help drive adoption. Prior to its adoption as a way for gadgets and computers to communicate, UWB was used as a sensing technology. It is used to spot such things as cracks under the surface of runways or to help firemen detect people through walls.

Beastie Boys win sampling battle US rappers Beastie Boys have won their long-running battle over the use of a sample in their song Pass the Mic. The punk-rappers used three notes of music from flautist James Newton's Choir in their track from 1992. Although the group had paid a licence fee for the sample, Mr Newton said his copyright had been infringed. But the US Court of Appeal upheld its original decision that the group did not have to pay an additional fee to license the underlying composition. The Beastie Boys - Michael Diamond, Adam Horowitz, and Adam Yauch - are considered to be one of early pioneers of sampling music. Sampling, now a standard practice among musicians, involves taking a segment of one track and using it in a different song. A three-judge panel of the court held in 2003 that the band had abided by copyright protections by paying a licence fee for a sample of Mr Newton's recording. That finding upheld a lower-court dismissal of the case in favour of the Beastie Boys. "We hold that Beastie Boys' use of a brief segment of that composition, consisting of three notes separated by a half-step over a background C note, is not sufficient to sustain a claim for infringement of Newton's copyright," Chief Judge Mary Schroeder wrote in her opinion. Mr Newton is a critically acclaimed jazz and classical flutist, composer, performer, and university professor. Mr Newton and the Beastie Boys were not available for comment.

Glasgow hosts tsunami benefit gig The top names in Scottish music are taking part in a benefit concert in aid of the victims of the Asian tsunami. All 10,000 tickets for Saturday's concert, featuring Franz Ferdinand, Belle and Sebastian and Travis, at Glasgow's SECC sold out in 36 hours. Mull Historical Society, Deacon Blue, Idlewild, Texas, Mogwai and Teenage Fanclub are among the other acts performing at the concert. Organisers hope to raise at least £250,000 from the show. It follows a Cardiff gig starring Eric Clapton, Keane and Jools Holland, which raised more than £1.25m. And it is taking place on the same night as a tsunami benefit show in Bristol, which will see Massive Attack and Portishead share a stage for the first time. Colin MacIntyre, of Mull Historical Society, was playing another gig on the same day but said he was determined to make the Glasgow benefit. He said: "I think we were all affected by seeing the reports coming from the Far East. "We all know somebody who was there, but more than that it was that we had never seen a wave of destruction, a natural disaster, like this in my generation. "I'm lucky as an artist to be able to perform at something like this."

Parry relishes Anfield challenge BBC Sport reflects on the future for Liverpool after our exclusive interview with chief executive Rick Parry. Chief executive Parry is the man at the helm as Liverpool reach the most crucial point in their recent history. Parry has to deliver a new 60,000-seat stadium in Stanley Park by 2007 amid claims of costs spiralling above £120m. He is also searching for an investment package of a size and stature that will restore Liverpool to their place at European football's top table. But it is a challenge that appears to sit easily with Parry, who has forged a reputation as one of football's most respected administrators since his days at the fledgling Premier League. Liverpool have not won the championship since 1990, a fact that causes deep discomfort inside Anfield as they attempt to muscle in on the top three of Chelsea, Manchester United and Arsenal. Throw in the small matter of warding off every top club in world football as they eye captain Steven Gerrard, and you can see Parry is a man with a lot on his plate. But in the comfort of a conference room deep inside Liverpool's heartbeat - The Kop end - Parry spoke to us with brutal honesty about the crucial months ahead. He only dodged one question - when asked to reveal the name of the mystery investor currently courting Liverpool, a polite smile deflected the inquiry. But to his credit, he met everything else head on in measured tones that underscore the belief that Liverpool still mean business. By business he means becoming title challengers again, and locking the pieces together that will help return the trophy to Liverpool is Parry's mission. Parry has already successfully put one of those planks in place in the form of new manager Rafael Benitez. And his enthusiasm for the Spaniard's personality and methods is an indication of his clear feeling that he has struck gold. Benitez's early work has given Parry renewed optimism about the years ahead. But it remains a massive task at a club with a unique history and expectations. This will not come as news to Parry, a lifelong Liverpool supporter, but his quiet determination suggests he is no mood to be found wanting... Captain Gerrard is central to Liverpool's plans and Parry's insistence that all offers will be refused is a firm statement of intent. As ever, the player will have the final say, and Parry acknowledges that, but he is determined to provide the framework and environment for Liverpool and Gerrard to flourish. In terms of the search for new investment, Hawkpoint were appointed as advisors to flush out interest in March 2004. Thailand Prime Minister Thaksin Shiniwatra came and went, while the most serious statement of intent came from tycoon and lifelong fan Steve Morgan. Morgan had a succession of bids rejected, having come close in the summer only for talks to break down over potential costs for the new stadium. BBC Sport understands Morgan is still ready and willing to invest in Liverpool, and Parry has kept the door ajar despite currently seeking investment elsewhere. Morgan, however, has had no formal contact with Liverpool or their advisors since last December, blaming indecision at board level as he publicly withdrew his £70m offer. He was also convinced his interest was being used to lure in others, so any new approach would now have to come from Liverpool. Morgan will certainly not be making another call. So speculation continues about the new benefactor, with trails leading to the Middle East and America, but all met with an understandable veil of secrecy from Anfield. Parry meanwhile sees the new ground as crucial to Liverpool's future, but is refusing to become emotionally attached to the idea. He is determined the ground will only be built on an affordable basis and will not make future Liverpool management hostages to the new stadium. Parry will pull back the moment the figures do not stack up, but there has been a vital new development in North London that has re-shaped Liverpool's thinking. Liverpool have publicly refused to entertain the idea of stadium sponsorship and potential naming rights - but the realism of Arsenal's stunning £100m deal for their new Emirates Stadium at Ashburton has changed the landscape. Parry labelled the deal "an eye-opener" and admits Liverpool would be missing a trick not to explore the possibilities. He knows some traditionalist Liverpool fans will reel at any attempt to call the new stadium anything other than just 'Anfield', but the maths of modern-day football decree that multi-millions for stadium and team could ease the pain. 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.

Blair joins school sailing trip The prime minister has donned a life jacket and joined school children in a sailing dinghy as he sought to sell his party's education policies. Tony Blair sailed across the lake in Bromsgrove, Worcestershire, while on a visit with Education Secretary Ruth Kelly to back school outings. Mr Blair later stressed Labour's election pledge to focus on education, when he met parents in the area. The Conservatives and Lib Dems both say his pledges are "worthless". All the parties are stepping up campaigning ahead of a General Election widely expected to be held on 5 May. Mr Blair, looking a little windswept, joined two girls from St Egwin's Middle School in Evesham and an instructor for a trip in the Wayfarer dinghy, closely followed by a boat full of photographers. Afterwards he said outdoor activities were beneficial for children but accepted that lots of teachers now worried about taking part for fear of being sued if something went wrong. "What we're doing is introducing some simple guidelines so if teachers follow those they are not going to be at risk of legal action," Mr Blair said. "When you are doing these types of activities you've got to exercise some common sense there obviously. "You can't have a situation where parents or teachers end up being worried that they're going to be subject to all sorts of legal action if they take children sailing or doing outdoor activity that is actually good for the kids and good for their health and their character." The pledge on education - "your child achieving more" - was one of six election pledges unveiled by Mr Blair last week. If it wins a third term in the general election expected this year, Labour is committed to giving parents more choice between schools; allowing all secondary schools to take on specialist status; opening 200 city academies and creating 100,000 more sixth-form places. It aims to improve discipline in schools by adopting a "zero tolerance" approach to disruption of classes and introducing fixed penalty notices for truants. Labour also plans to give head teachers at groups of local schools control over funding for units to handle disruptive pupils. Parents and teachers who met Mr Blair on Tuesday were invited to the informal discussion after writing to their MPs to raise concerns about education. It is the latest in a series of events designed to show the prime minister is speaking directly to voters in the run-up to the election - and that he has not lost touch. For the Conservatives, shadow education secretary Tim Collins said: "Mr Blair¿s government is all talk. He must be judged on what he has done in two terms, not what he mendaciously claims he would do in a third. That judgment will be damning." The Liberal Democrats are promising to cut class sizes for the youngest children and ensure all children are taught by a qualified teacher in each subject.

Rings of steel combat net attacks Gambling is hugely popular, especially with tech-savvy criminals. Many extortionists are targeting net-based betting firms and threatening to cripple their websites with deluges of data unless a ransom is paid. But now deep defences are being put in place by some of the UK's biggest net firms to stop these attacks. Increasing numbers of attacks and the huge amounts of data being used to try to bump a site off the web are prompting firms to adopt the measures. "Net firms are realising that it's not just about anti-virus and firewalls," said Paul King, chief security architect at Cisco. "There are more things that can be done in the network to protect data centres." Mr King said the only way to properly combat these so-called Distributed Denial-of-Service attacks was with intelligent net-based systems. Many of the gambling sites suffering DDoS attacks are in offshore data and hosting centres, so any large scale data flood could knock out access to many more sites than just the one the criminals were targeting, said Mr King. This overspill effect was only likely to grow as attacks grow in size and scale. Malcolm Seagrave, security expert at Energis, said the most common types of attacks hit sites with 10 megabytes of data over short periods of time. Bigger attacks sending down 200 megabytes of traffic or more were rarely seen, he said. "It does feel like they are turning the dial because you see this traffic gradually growing," he said. So far there have been no attacks involving gigabytes of data, said Mr Seagrave. However, he added that it was only a matter of time before such large attacks were mounted. Maria Capella, spokeswoman for net provider Pipex, said that when DDoS attacks were at their height, customers were getting hit every four to five days. The defences being put in place constantly monitor the streams of data flowing across networks and pluck out the traffic destined for target sites. "It's about understanding what's genuine traffic and keeping attack traffic from going to the site," she said. "We study the profile of their traffic and as soon as we see an anomaly in the profile that's when we start to get the backbone engineering boys to see if we are going to sustain an attack," said Ms Capella. This traffic can be hard to spot because DDoS attacks typically use thousands of computers in many different countries, each participating machine only sends a small part of the entire data flood. Typically these computers have been infected by a virus or worm which reports its success and the net address of compromised machines back to the malicious hacker or hi-tech criminal that set off the virus. Hijacked computers are known as zombies or 'bots and collections of them are called 'bot nets. Many spammers rent out 'bot nets to help them anonymously send junk mail. Most of the zombies are based outside the country that hosts the target site so getting the attacking PCs shut off can be difficult. Often Pipex and other net suppliers do get advance notice that an attack is about to happen. "The serious players tend to precede an attack with some kind of ransom e-mail," said Ms Capella. "We ask, as part of the service we provide, that customers notify us of anything they have in advance that would give us forewarning." Once an attack is spotted dedicated net hardware takes over to remove the attack traffic and ensure that sites stay up. Energis took a similar approach, said Mr Seagrave. "We have technology out there that allows us to detect attacks in minutes rather than let network engineers spend hours pulling the information together," said Mr Seagrave. Also net firms were starting to work more closely together on the problem of DDoS attacks and pool information about where they are coming from. Information gathered on attacks and where they originated has led to some arrests. He said Energis also did its own intelligence work to get in insight into which sites criminal gangs plan to target. "We have people in places where they shouldn't be, monitoring tech sites," he said. Sometimes though, he said, spotting the next victim was easy. "You can see them going alphabetically through the list with the gambling sites, trying one after another," said Mr Seagrave.

UK plan to deport terror suspects Deals are being sought to allow the UK to deport terror suspects to their home countries without risk of them being tortured or sentenced to death. Home Secretary Charles Clarke told the Times he hoped agreement with several countries could be reached. The move follows a Law Lords judgement that the detention of 12 men at Belmarsh prison, London, and Woodhill, Milton Keynes, was unlawful. The 12 affected by the ruling are from Algeria, Tunisia, Egypt and Jordan. The government was told that using anti-terror legislation brought in after 11 September to hold the men indefinitely without charge broke human rights laws. Mr Clarke told The Times: "I think we should be prosecuting much more energetically our ability to deport the individuals concerned to the countries from which they come." He said it was a route that was being pursued in collaboration with Foreign Secretary Jack Straw "in a very positive way". Mr Clarke said that he was seeking "memorandums of understanding" between overseas governments and Britain to ensure suspects would not be subjected to the death penalty on their return. However, he added: "I do not think the solution to the Law Lords' judgement for this government is in deportations, but they will help. "There are other strands that we have to do." But the Liberal Democrat's shadow home secretary, Mark Oaten, accused Mr Clarke of avoiding the main issue with the Belmarsh detainees. "The critical issue that the home secretary is dodging at this stage is to deal with the very principle, to deal with how we tackle this problem in the future," he told BBC News. "And I do want him to grasp those issues and that means looking at how we can actually secure convictions in this country allowing, for example, intercept communications, telephone tapping to be included," Mr Oaten said. "Deportation may tackle this initial problem but I want to see a wider debate urgently about how we can actually get trials and convictions in this country." "Unless we get that, the Liberal Democrats will vote against this measure when it comes for renewal in March." The BBC's home affairs correspondent, Daniel Sandford, said it appeared Mr Clarke was putting more emphasis on the possibility of deportation than his predecessor, David Blunkett. But he said reaching an understanding with some of the detainees' home countries could be difficult. "Some of these people are accused of very, very serious crimes in their home countries so it's not an easy agreement to get and I think for some of these suspects it won't be the solution." Daniel Sandford said ministers may try to put forward other solutions - such as allowing more secret evidence to be put into normal criminal trials or developing a more secret trials process - in the next few weeks. "The government may try and deport some of them and then those that are left see if they can work out some way of putting them on trial," he said.

Broadband challenges TV viewing The number of Europeans with broadband has exploded over the past 12 months, with the web eating into TV viewing habits, research suggests. Just over 54 million people are hooked up to the net via broadband, up from 34 million a year ago, according to market analysts Nielsen/NetRatings. The total number of people online in Europe has broken the 100 million mark. The popularity of the net has meant that many are turning away from TV, say analysts Jupiter Research. It found that a quarter of web users said they spent less time watching TV in favour of the net The report by Nielsen/NetRatings found that the number of people with fast internet access had risen by 60% over the past year. The biggest jump was in Italy, where it rose by 120%. Britain was close behind, with broadband users almost doubling in a year. The growth has been fuelled by lower prices and a wider choice of always-on, fast-net subscription plans. "Twelve months ago high speed internet users made up just over one third of the audience in Europe; now they are more than 50% and we expect this number to keep growing," said Gabrielle Prior, Nielsen/NetRatings analyst. "As the number of high-speed surfers grows, websites will need to adapt, update and enhance their content to retain their visitors and encourage new ones." The total number of Europeans online rose by 12% to 100 million over the past year, the report showed, with the biggest rise in France, Italy, Britain and Germany. The ability to browse web pages at high speed, download files such as music or films and play online games is changing what people do in their spare time. A study by analysts Jupiter Research suggested that broadband was challenging television viewing habits. In homes with broadband, 40% said they were spending less time watching TV. The threat to TV was greatest in countries where broadband was on the up, in particular the UK, France and Spain, said the report. It said TV companies faced a major long-term threat over the next five years, with broadband predicted to grow from 19% to 37% of households by 2009. "Year-on-year we are continuing to see a seismic shift in where, when and how Europe's population consume media for information and entertainment and this has big implications for TV, newspaper and radio," said Jupiter Research analyst Olivier Beauvillian.

Have hackers recruited your PC? More than one million computers on the net have been hijacked to attack websites and pump out spam and viruses. The huge number was revealed by security researchers who have spent months tracking more than 100 networks of remotely-controlled machines. The largest network of so-called zombie networks spied on by the team was made up of 50,000 hijacked home computers. Data was gathered using machines that looked innocent but which logged everything hackers did to them. The detailed look at zombie or 'bot nets of hijacked computers was done by the Honeynet Project - a group of security researchers that gather information using networks of computers that act as "honey pots" to attract hackers and gather information about how they work. While 'bot nets have been known about for some time, estimates of how widespread they are from security firms have varied widely. To gather its information the German arm of the Honeynet Project created software tools to log what happened to the machines they put on the web. Getting the machines hijacked was worryingly easy. The longest time a Honeynet machine survived without being found by an automatic attack tool was only a few minutes. The shortest compromise time was only a few seconds. The research found that, once compromised machines tend to report in to chat channels on IRC servers and wait instructions from the malicious hacker behind the tools used to recruit the machine. Many well-known vulnerabilities in the Windows operating system were exploited by 'bot net controllers to find and take over target machines. Especially coveted were home PCs sitting on broadband connections that are never turned off. The months of surveillance revealed that the different 'bot nets - which involve a few hundred to tens of thousands of machines - are used for a variety of purposes. Many are used as relays for spam, to route unwanted adverts to PC users or as launch platforms for viruses. But the research team found that many are put to very different uses. During the monitoring period, the team saw 'bot nets used to launch 226 distributed denial-of-service attacks on 99 separate targets. These attacks bombard websites with data in an attempt to overwhelm the target. Using a 'bot net of machines spread around different networks and nations makes such attacks hard to defend against. One DDoS attack was used by one firm to knock its competitors offline. Other 'bot nets were used to abuse the Google Adsense program that rewards websites for displaying adverts from the search engine. Some networks were used to abuse or manipulate online polls and games. Criminals also seem to be starting to use 'bot nets for mass identity theft, to host websites that look like those of banks so confidential information can be gathered and to peep into online traffic to steal sensitive data. "Leveraging the power of several thousand bots, it is viable to take down almost any website or network instantly," said the researchers. "Even in unskilled hands, it should be obvious that 'bot nets are a loaded and powerful weapon."

TV station refuses adoption show A TV station in the US has refused to show a controversial new series where adopted children try and pick their birth father - and win a cash prize. The WRAZ-TV Fox affiliate in North Carolina was the only one of 182 stations to refuse Monday's show. Who's Your Daddy promises $100,000 (£52,000) to the contestant if she correctly identifies her father. It was met with protests by the National Council for Adoption, which said it "exploits" sensitive emotions. "It exploits the sensitive emotions of adoption," said Thomas Atwood, president of the National Council for Adoption. "It trivialises them. Adoption is a very personal, meaningful experience and it should not be commercialised like this." On the pre-taped programme, the contestant is presented with eight men who may or may not be her natural father. If she picks the correct man from the line-up, the contestant wins the jackpot prize of US$100,000 (£52,590). However, if she picks the wrong man, then the impostor takes the money. Fox producers defended the show, saying it was a "positive experience". They have made six specials, though only one episode has so far been broadcast. "The special was thoroughly vetted by our standards and practices department to ensure that it was appropriate for broadcast," said a Fox spokesman. "However, any network affiliate that feels the programming may be inappropriate for their individual market has the right to pre-empt the schedule." WRAZ-TV instead chose to air an independently-produced film, I Have Roots and Branches... Personal Reflections on Adoption, a documentary about families with adopted children. "We just don't think adoption is a game show," said Tommy Schenck, WRAZ-TV's general manager, though he said his decision had not been influenced by public protests.

'Nuclear dumpsite' plan attacked Plans to allow foreign nuclear waste to be permanently stored in the UK have been branded "deeply irresponsible" by the Liberal Democrats. The government has confirmed intermediate level waste (ILW) that was to have been shipped back to its home countries will now be stored in the UK. The cash raised will go towards the UK's nuclear clean-up programme. But Lib Dem Norman Baker accused ministers of turning Britain into a "nuclear dumpsite". Under current contracts, British Nuclear Fuels should return all but low level waste, but none has ever been sent back. In future, only highly-radioactive waste will be sent back to its country of origin, normally Germany or Japan, under armed guard. Intermediate waste from countries such as Japan, Germany, Spain, Italy, Switzerland and Sweden will be stored permanently in the UK. At the moment, this waste is stored at Sellafield, in Cumbria, in the form of glass bricks, untreated liquid waste or solid material in drums. In a statement, the Department of Trade and Industry said the new policy meant there would be a "sixfold reduction in the number of waste shipments to overseas countries". And it said highly-radioactive waste would be returned to its home country sooner, ensuring there would be no overall increase in radioactivity. Trade Secretary Patricia Hewitt said the new arrangements, revealed in a Commons written statement, would raise up to £680m for Britain's nuclear clean-up programme, under the new Nuclear Decommissioning Agency. But the move has been criticised by environmental groups and the Liberal Democrats. Mr Baker, the Lib Dem environment spokesman, said: "I have been warning for months that this would happen and raised it with government several times. But now our worst fears have been confirmed. "Once again Britain's environmental and health needs are being ignored in policies driven by the Treasury and DTI. "This is a terrible attempt to offload some of the £48bn cost of cleaning up nuclear sites. "The Energy Act was supposed to help Britain clean up, but in order to pay for it we are becoming a nuclear dumpsite. "The nuclear industry is an economic, social and environmental millstone that hangs around Britain's neck."

Oscar nominees gear up for lunch Leonardo DiCaprio, Jamie Foxx and Hilary Swank are among those due to attend this year's Oscar nominees luncheon on Monday. They will join more than 100 nominees from the 24 Oscar categories at the annual event, which will take place at the Beverly Hilton hotel, Los Angeles. British hopefuls, including Kate Winslet, Imelda Staunton and Sophie Okonedo are also expected to attend. This year's Oscar ceremony will be held on Sunday 27 February. Martin Scorsese's The Aviator is leading the field at this year's Oscars with 11 nominations, while other multiple nominees include Million Dollar Baby and Sideways. Oscar nominees Swank and Foxx were among the winners at the Screen Actors Guild awards at the weekend, one of the many ceremonies held in the run-up to the Oscars. Swank won Best Actress for Million Dollar Baby while Foxx triumphed for his performance as Ray Charles in the biopic Ray. Sideways was also among the winners, taking the prize for best cast performance. The next major film award ceremony of the season is the Bafta awards, which take place at London's Odeon Leicester Square on 12 February. Many of those nominated for Oscars including DiCaprio, Foxx and Staunton - an Oscar nominee for her performance in Vera Drake - have also been nominated for Baftas.

Retail sales show festive fervour UK retail sales were better than expected in November as Christmas shoppers began their seasonal flock to the High Street, figures show. The Office for National Statistics (ONS) said retail sales rose 0.6% on the month and 6.1% on the year. But the figures, along with this week's inflation report, could trigger another interest rate rise in the New Year. However, recent data from the British Retail Consortium showed a 0.2% slip in High Street sales during November. The ONS data confounded analyst expectations. Many had expected sales to fall slightly in November as shoppers put off buying Christmas presents until December. However, retailers' attempts to draw in the crowds may be behind November's unexpected rise in sales, they say. Aggressive tactics, such as one-day discount sales adopted by stores such as Marks & Spencer, appear to have paid off. "Price discounting has certainly accounted for much of this because the value of retail sales hasn't grown as much as volumes," said Investec economist David Page. The figures sparked a rally for sterling as the data supported the view that it is too early to assume that base rates have peaked.

Cult band Kasabian surge forward Indie dance band Kasabian built up a cult following throughout 2004 to secure three Brit Award nominations. The four-piece Leicester band blends dark electronics with rock, earning Kasabian places on the best British group, rock act and live act shortlists. They have also earned a reputation as outspoken and charismatic, in contrast to fellow Brit nominees such as Keane and Snow Patrol. "British music needs a kick up the arse and Britain needs a new band to breathe life into the British people again," declared Kasabian's singer Tom Meighan. "No-one's doing it at the minute. Music feels like it's in the afterlife right now. We don't want people to give up on it. "The serpent's going to rise from the sea and scare all the pirates away!" Meighan grew up in Leicester with Kasabian songwriter/guitarist Sergio Pizzorno and bassist Chris Edwards, a trio which began making music from the age of 17. They enlisted guitarist and keyboard player Christopher Karloff after spotting him in a pub. "We saw his long sideburns and thought 'hey, he looks the part, we'll ask him,'" said Meighan. Inspired by Britpop and a mutual love of hardcore, an early 1990s genre that fused house music with hip hop beats and a dark sensibility, they added an electronic element to the traditional guitar sound. "We got a computer and we cut rock'n'roll up, because there's no point in going back to how it was," said Meighan. "It's all about new ideas and creativity." The band's original approach is reflected in its name, inspired by Linda Kasabian - the getaway driver of US serial killer Charles Manson. Coincidentally it is also the Armenian term for "butcher". Kasabian moved into a remote farmhouse in Rutland to record their debut album, benefiting from its isolation but also managing to sneak in a few parties while they were there. Signed to the RCA record label, Kasabian tested the water with two singles, Club Foot and LSF, which reached numbers 19 and 10 in the UK singles chart respectively. They built up their following on the summer festival circuit, opening both Glastonbury and T in the Park, and at a series of "guerilla gigs" at unusual venues including Half Time Orange, a pub next to Leicester City football club's headquarters. Kasabian's self-titled album was released last September to widespread critical acclaim, its indie dance stance drawing comparisons to The Stone Roses, Primal Scream and The Happy Mondays. Regarding it as "both a fiery assertion of rock 'n' roll ethics and proof that a siege mentality is alive and well in the badlands of Rutland Water", the NME's praise was typical of the album's reception. As 2004 progressed Kasabian would score a further two hits - Processed Beats and Cutt Off - and embark upon a well-received UK tour. "We take our music seriously, definitely, but we want to have fun with it," said Pizzorno. "This is not a job to us," added Meighan. "This is the best life we could ever have. This is what it's all about and without it we'd be lost souls. But music needs us as well."

Three DJs replace Peel radio show The late John Peel's BBC Radio 1 show is to be succeeded in February by three shows hosted by three DJs focusing on diverse, non-commercial music. Huw Stephens, Ras Kwame and Rob Da Bank will each host the mid-week, late-night timeslot, showcasing UK talent. Radio 1 said the show would not try to replace Peel, but would rise to the "challenge" of "keeping his legacy alive" with unpredictable music. Peel died after suffering a heart attack in Peru in October. Radio 1 said the three DJs had been chosen for their "in-depth musical knowledge across a variety of musical genres". Rob Da Bank has been hosting The John Peel Show since the DJ's death. He is also one of the hosts of The Blue Room, an early morning weekend show that plays a mix of old and new electronic and dance music. Huw Stephens is currently one half of the Radio 1 Thursday night show Bethan and Huw in Wales, which explores new music, especially up and coming acts breaking through in Wales. And Ras Kwame is the host of 100% Homegrown on Radio 1's digital station 1Xtra. His show is dedicated to showcasing the best of UK black music and broadcasts live sessions, often giving new artists their first chance to perform on live national radio. All of the three DJs will continue to host their current shows on Radio 1. "It is widely accepted that John Peel can never be replaced," said the radio station. It added that One Music would support both signed and unsigned talent, and said: "It will seek out those making music for music's sake rather than for commercial success. "Above all it will provide support to emerging genres of music and styles that have not yet and may never reach the mainstream." One Music is not new to Radio 1 as it already exists as a website, offering advice on aspects of the music industry, such as recording a demo and signing a record contract. Radio 1's controller, Andy Parfitt, said: "We believe that by having a series of DJs hosting a selection of shows under the One Music title, we will ensure that his legacy lives on." Stephens said he grew up "listening to John" and that it was a "massive honour" to continue Peel's work championing new music. The show will be broadcast from 1 February on Tuesdays, Wednesdays and Thursdays from 2300 GMT - 0100 GMT.

French wine gets 70m euro top-up The French government is to hand its struggling wine industry 70m euros ($91m) in aid to help it battle falling sales and damaging overproduction. The financial package is aimed at assisting vintners in financial trouble and improving how its wine is marketed. The French wine industry, the world's second largest, has been hit by declining consumption at home and the growing popularity of New World wines. Wine makers, however, claimed the support did not go far enough. The package was announced by agriculture minister Dominique Bussereau after talks with vintners' representatives. The bulk of the money - about 40m euros - will be offered in the form of preferential loans to heavily indebted producers to enable them to reschedule their payments. A further 15m euros will be made available to wine cooperatives, which make up the majority of French producers, in low interest loans. Efforts to promote French wine abroad are to be boosted by an extra 3.5m euros in funding. France fell behind the 'New World' producers of Australia, Chile and the United States for the first time in 2003 in terms of exports. Domestic consumption, accounting for 70% of sales, has suffered from strict restrictions on advertising and tough drink-driving laws. The aid package would "create a positive climate around French viticulture," Mr Bussereau said. However, wine makers and farmers said the support was much less than they had been hoping for. "I am afraid the resources are not up to the ambitions," Jean-Michel Lemetayer, from the FNSEA agricultural union, told the Associated Press news agency. In an effort to tackle overcapacity, the government will agree that vines can be destroyed in areas where growers give their unanimous consent, while 500 vintners will be helped to take early retirement. The government will also seek European Union approval to distil about 250 million litres of excess wine into alcohol, with vintners receiving compensation. Production is currently outstripping demand by about 30%. The support is designed to make French producers more competitive in the face of increasing global consolidation across the wine industry. Wine makers in France's best-known regions, such as Burgundy, have found it hard to invest in new technology and to create recognisable brands to appeal to overseas buyers.

Chris Evans back on the market Broadcaster Chris Evans has begun selling thousands of his possessions from a stall in Camden Market, London. Evans perched on a stool as shoppers wandered around the open-fronted shop packed with his furniture. Among the items from his homes in Los Angeles and London were countless sofas, chairs, pictures, beds and memorabilia from his past TV shows. Asked the reason for the sale, Evans said: "I just want to get rid of it all, it's just a headache." He added: "It feels good to be selling this stuff, it's a weight off my mind. "Look at it all, there's so much clutter. I've enjoyed every bit of furniture and every poster but it's not important anymore." The normally gregarious Evans cut a peculiarly unshowbusiness-like figure as he sipped coffee and smoked cigarettes, wrapped in a big coat and scarf in front of his Aladdin's cave. However, the ostentation of some of the items on sale painted a picture of the eccentricity that endeared him to the British public in shows such as Channel 4's gameshow Don't Forget Your Toothbrush. The most striking thing about many of the pieces was their sheer size. Sofas looked like they could seat a small party and a bed seemed big enough for four. The elaborate nature of the pieces, many custom-made, had to be admired, particularly a huge red and gold upholstered "throne" and a stripy deckchair from the Queen Mary liner. To help people in their browsing, Evans had given the pieces labels with not only the price but a helpful, often comic, aside. "Isn't it great" was the comment on the £1,950 throne and "Bob Dylan's old sofa - honest" was written on a dark wood couch priced £4,250. The prices were steep by a lot of people's standards but Evans said it was not deterring shoppers. "I've sold quite a lot already. Everything here is on sale for less than I bought it for but it's not really about the money. It's about getting rid of it all. We've all been bartering, that's what it's all about." He added that he was not going to reveal what he was going to do with the money he was making. Vintage TV and film posters also lined the walls, including a rare portrait of Raquel Welch and an original advertising print from the Benny Hill Show. And, almost hidden at the back of the lock-up, were the two giant toothbrushes from his former Channel 4 show, although these were not for sale. Despite the sheer curiosity value of the sale, there was a healthy trickle of interest from the public rather than the perhaps expected crowds. Some wandered in just to browse, as they would any of the other stalls, not knowing that it belonged to Evans. Paul Burgess said: "I didn't realise. I thought it was just a load of junk. I should go back and have a better look." But local resident Francesca Detakats came specially to the stall and left happy with her purchase of an original 1960s photograph of The Who by David Wedgburg. Ms Detakats said she was a collector and did not mind paying £350 for the print. "If you like something, you don't really count it like that," she said. Martin Hellewell, who had also made a point of visiting Evans' shop, said he thought it was a great idea. "Why not, if you've got stuff to get rid of it's a good place to do it," said Mr Hellewell. Evans has taken out the stall with business partner Pete Winterbottom. They plan to open every day if possible, although Evans did not know how often he would be there. "We'll stay definitely until Christmas and then maybe a week after that," said Evans.

US hacker breaks into T-Mobile A man is facing charges of hacking into computers at the US arm of mobile phone firm T-Mobile. The Californian man, Nicholas Lee Jacobsen, was arrested in October. Mr Jacobsen tried at least twice to hack T-Mobile's network and took names and social security numbers of 400 customers, said a company spokesman. The arrest came a year after T-Mobile uncovered the unauthorised access. The US Secret Service has been investigating the case. "T-Mobile has stringent procedures in place where we monitor for suspicious activity so that limited his activities and we were able to take corrective action immediately," Peter Dobrow, a T-Mobile spokesperson said. It is thought that Mr Jacobsen's hacking campaign took place over at least seven months during which time he read e-mails and personal computer files, according to court records. Although Mr Jacobsen, 21, managed to get hold of some data, it is thought he failed to get customer credit card numbers which are stored on a separate computer system, said Mr Dobrow. T-Mobile confirmed that the US Secret Service was also looking into whether the hacker accessed photos that T-Mobile subscribers had taken with their camera phones. The Associated Press agency reported that Mr Jacobsen also read personal files on the Secret Service agent who was apparently investigating the case. A Los Angeles grand jury indicted Mr Jacobsen with intentionally accessing a computer system without authorisation and with the unauthorised impairment of a protected computer between March and October 2004. He is currently on bail. T-Mobile is a subsidiary company of Deutsche Telekom and has about 16.3 million subscribers in the US.

Hong Kong in 2011 World Cup bid Hong Kong is hoping to join Japan as co-host of the 2011 Rugby World Cup. Japan has applied to host the tournament on its own, with the aim of taking it outside rugby's traditional strongholds for the first time. But Hong Kong Rugby Football Union (HKRFU) chairman John Molloy has called for the territory to host one of the pools and a quarter-final. The Japanese Rugby Football Union (JRFU) says it has yet to receive a formal presentation from the HKRFU. "At this stage, we are only considering hosting the event by ourselves," said JRFU secretary Koji Tokumasu. "We cannot examine any proposal unless we get it in a definitive form." Japan faces stiff competition in the form of South Africa and New Zealand to host the event in seven years' time. "Until now, the World Cup has been held in countries from the Six Nations or Tri-Nations," said Tokumasu. "We think, and the IRB thinks, that it is time for rugby to go global. "Japan is ready to host the tournament and we are looking forward to welcoming the world of rugby to Japan." Tokumasu added that the 2002 football World Cup, co-hosted by Japan and South Korea, had been a huge success. "As well as having the infrastructure in place, Japan also has the commercial clout to host one of sport's top competitions," he said. Last year, Japan launched its first professional rugby league and it has the fourth largest number of registered players (125,508) in the world after England, South Africa and France.

Souness delight at Euro progress Boss Graeme Souness felt Newcastle were never really in danger of going out of the Uefa Cup against Heerenveen. An early own goal followed by an Alan Shearer strike earned them a 2-1 win and a place in the Uefa Cup last 16. "Obviously with winning in the first leg it gave us a great advantage," he said after the 4-2 aggregate victory. "We got our goals early and in the minds of some players the job was done but then they got a goal and perhaps made us a bit nervous." Shearer's goal moved him within 12 of Jackie Milburn's club scoring record of 200 for the Magpies. But Souness said he did not think beating the record would have any bearing on his decision to retire at the end of the season. "I think if he got it this year he would want to stay next year anyway," he added. "He struck the ball very well - he always has done - and I think it was the power and pace that beat the goalkeeper." Souness also paid tribute to Laurent Robert, who was at the heart of much of United's attacking play. "In the first half he did really well and did everything you want from a wide player. More of the same in future please," he said.

'No re-draft' for EU patent law A proposed European law on software patents will not be re-drafted by the European Commission (EC) despite requests by MEPs. The law is proving controversial and has been in limbo for a year. Some major tech firms say it is needed to protect inventions, while others fear it will hurt smaller tech firms The EC says the Council of Ministers will adopt a draft version that was agreed upon last May but said it would review "all aspects of the directive". The directive is intended to offer patent protection to inventions that use software to achieve their effect, in other words, "computer implemented invention". In a letter, EC President José Manuel Barroso told the President of the European Parliament, Josep Borrell, that the Commission "did not intend to refer a new proposal to the Parliament and the Council (of ministers)" as it had supported the agreement reached by ministers in May 2004. If the European Council agrees on the draft directive it will then return for a second reading at the European Parliament. But that will not guarantee that the directive will become law - instead it will probably mean further delays and controversy over the directive. Most EU legislation now needs the approval of both parliament and the Council of Ministers before it becomes law. French Green MEP Alain Lipietz warned two weeks ago that if the Commission ignored the Parliament's request it would be an "insult" to the assembly. He said that the parliament would then reject the Council's version of the legislation as part of the final or conciliation stage of the decision procedure. In the US, the patenting of computer programs and internet business methods is permitted. This means that the US-based Amazon.com holds a patent for its "one-click shopping" service, for example. Critics are concerned that the directive could lead to a similar model happening in Europe. This, they fear, could hurt small software developers because they do not have the legal and financial might of larger companies if they had to fight patent legal action in court. Supporters say current laws are inefficient and it would serve to even up a playing field without bringing EU laws in line with the US.

Paraguay novel wins US book prize A novel set in 19th century Paraguay has won the $10,000 (£5,390) fiction prize at the US National Book Awards. Lily Tuck's The News From Paraguay is a fictionalised tale about Paraguayan leader Francisco Solano Lopez and his Irish mistress. But the annual awards, which were presented in New York on Wednesday, were not without controversy. Children's author Judy Blume, who was given an honourary medal, used the ceremony to speak out over censorship. Sales of Blume's books have exceeded 75 million, but her work - which features frank narratives about families, religion and sexuality - is closely watched by the censors. Blume said: "The urge to ban is contagious. It spreads like wildfire from community to community. Please speak out. Censors hate publicity." Her medal marks the second year in a row the honourary prize went to someone as notable for popular success as literary greatness. Last year's honorary winner, Stephen King, accused the industry during the 2003 ceremony of snobbery against popular writers. But his argument that the award should help sell books instead of honouring excellence is not shared by everyone. This year's fiction panel overlooked high-profile works such as Philip Roth's The Plot Against America and instead chose five little-known books, all by New York-based women. One fiction judge, Stewart O'Nan, carried around a note written on a napkin that said: "I would hope that our caring more for the quality of a work than its sales figures make us a friend of books, not an enemy." The National Book Awards non-fiction prize was awarded to Kevin Boyle's for Arc of Justice, which focuses on a black family's fight to live in a white Detroit neighbourhood in the 1920s. The award had created a lot of interest this year after the surprise inclusion of the of the 9-11 Commission Report looking into the events of the 11 September terrorist attacks on the US. Pete Hautman won the young people's literature prize for his novel Godless. The winner in the poetry category was Jean Valentine for Door in the Mountain: New and Collected Poems, 1965-2003.

Ex-PM Lord Callaghan dies aged 92 Former Labour prime minister Lord Callaghan has died on the eve of his 93rd birthday. He passed away at home in East Sussex, just 11 days after his wife Audrey died aged 91. Lord Callaghan, who leaves a son and two daughters, was the longest living former British PM in history. He entered Downing Street in 1976 after the resignation of Harold Wilson. Prime Minister Tony Blair called him a "giant" of the Labour movement. He held each of the major offices of chancellor, home secretary, foreign secretary and prime minister during his career and became Lord Callaghan of Cardiff in 1987. Chancellor Gordon Brown said the former PM would be "mourned throughout the world". "It was a commitment to public service that brought Jim Callaghan into Parliament in 1945, and while Jim rose to the top he never forgot his roots." Former cabinet colleague Lord Hattersley said his first reaction on hearing the news was "immense sadness". "It was not a major surprise - I knew what a blow the death of his wife Audrey was a few days ago," he said. "He was a decent kindly man who helped me and my generation of politicians immensely. "The Labour party and the country will be poorer without him." Conservative peer Lord Heseltine said that despite their political differences, he and Lord Callaghan became friends. "You don't get to the premiership unless you have a streak of determination," he said. "But I saw the other side of Jim Callaghan, he became a personal friend in a way, and my family and I were very fond of him." Tory leader Michael Howard said he would be remembered with "affection and respect". Liberal Democrat leader Charles Kennedy said: "When I was first elected in 1983 as the youngest MP, he was the "Father of the House" and as such took a very keen interest in my early days in Parliament. "He was always full of warmth and wisdom." Born in 1912 and educated at Portsmouth Northern Secondary School, Lord Callaghan became a clerk at the Inland Revenue. He enlisted in the Royal Navy in 1942 and rose to the rank of lieutenant. Elected for a Cardiff constituency at the 1945 general election, he represented Cardiff seats for more than 40 years. After serving as a junior minister in the Attlee government, he became chancellor of the exchequer when Labour returned to power in 1964. With sterling under pressure, he resisted devaluation for three years, before being forced into it in 1967. His political career was not without controversy. When he refused to support prime minister Harold Wilson and Dame Barbara Castle over the latter's trade union manifesto, In Place of Strife, in 1968, he said: "I am not going to resign. They will have to throw me out". When home secretary, he ordered British troops to march into the streets of Belfast to protect Catholic civilians amid rising violence - a decision that has dominated British politics into the 21st century. As foreign secretary in the early 1970s, Lord Callaghan kept an open mind about the UK's entry into the Common Market, seeing the advantages of the UK's entry. He once travelled to Idi Amin's Uganda in 1975 to plead for the life of a British lecturer, Dennis Hills, who was under a death sentence for treason. His political life was often tempered by battles against the hard left of the party. In the autumn of 1978, before the "Winter of Discontent" when trade unions carried out strikes that brought the country to a standstill, Lord Callaghan refused to hold an early election which may have delivered a Labour victory. As garbage lay uncollected in the streets and hospital staff, council workers and even gravediggers stayed off work, Lord Callaghan failed to predict the mood of the country. When Britain went to the polls in 1979, Tory leader Margaret Thatcher was swept into power in a landslide victory, and Lord Callaghan resigned as Labour leader.

Labour's four little words Labour has unveiled the four little words that will form the heart of its general election campaign which, for those just returned from the planet Galifray, is "looming". The slogan "Britain forward not back" (no, it's not an instruction from one of those inter-planetary Time Lords) is to become as much a part of our daily lives as the sky - it's always there but we mostly stop noticing. The word "Britain" is cast on a red background - a nod to Old Labour. "Forward" is in italics and cunningly slopes forward and, along with "not back", is set against a mushy pea green background. As one of the journalists assembled at the unveiling declared, it was all very post modern, or something. Great use of colour. Those ad men really do earn their money. And, coincidentally, the ad men who came up with the abandoned flying pigs and so-called "Fagin" posters which caused Tory protests have not been sacked but, as election supremo Alan Milburn declared, "are doing a very good job". Mr Milburn, in the latest in his series of pre-election-campaign campaigning, explained the slogan was the reaction to polling which suggests the public believe Labour and Tony Blair are the future while Michael Howard and the Tories would take the country backwards. "Not many people talk about the years before 1997 as the good old days," he declared. It would be an aggressive campaign because things would inevitably boil down to a choice between Labour and the Tories. Nobody, he claimed, could picture Liberal Democrat leader Charles Kennedy walking up Downing Street the day after polling. They could, however, picture Michael Howard or, of course, Tony Blair doing it. So it was only right that the campaign concentrated on rigorously examining the opposition's policies and past record. And Tony Blair would be in the very front line of that campaign, he said. "Between now and the election the prime minister will be spending more time out of London than in it but in Britain, not overseas," he promised. "He will be leading the domestic debate from the front, listening, taking the flak." So, let's get on with it then.

Blair stresses prosperity goals Tony Blair says his party's next manifesto will be "unremittingly New Labour" and aimed at producing "personal prosperity for all". The prime minister is trying to draw a line under speculation over the state of his relationship with Gordon Brown with the speech in Chatham, Kent. He is saying that prosperity means both individual wealth and ensuring "radically improved" public services. He is also claiming Labour is more ideologically united than ever. Mr Brown is currently touring Africa after a week of facing questions about reports of his splits with Downing Street. With the election widely predicted for May, angry Labour MPs this week warned Mr Blair and Mr Brown about the dangers of disunity. Now Mr Blair is trying to put the focus on the substance of Labour's platform for a third term in government. Labour made low inflation, unemployment and mortgage rates the centrepiece of a new poster campaign this week. And on Thursday Mr Blair is saying: "I want to talk about the central purpose ofNew Labour - which is to increase personal prosperity and well-being, not justfor a few but for all. "By prosperity I mean both the income and wealth of individuals and theirfamilies, and the opportunity and security available to them through radicallyimproved public services and a reformed welfare state." The Tories are trying to capitalise on the apparent feud at the top of government. On Wednesday they unveiled a poster which pictured the prime minister and Mr Brown under the words "How can they fight crime when they are fighting each other?" Michael Howard and frontbencher John Redwood on Thursday launched new plans to abolish hundreds of quangos. They say government is spending too much and lower taxes are needed to make Britain more competitive. The Liberal Democrats have also claimed infighting its obstructing good government. The latest speculation about relations between New Labour's two most powerful figures came after the publication of a new book, Brown's Britain by Robert Preston. In it he alleges that Mr Blair told Mr Brown in 2003 he would step down as prime minister before the coming general election. The book claims the premier went back on his pledge after support from Cabinet allies and suspicion that Mr Brown was manoeuvring against him. 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." On Wednesday Mr Blair directly denied Mr Brown made that quote, and before he left for Africa on Tuesday the chancellor told reporters: "Of course I trust the prime minister."