Germany 'stronger' after economic crisis - Merkel

The German people have emerged stronger from Europe's economic crisis, Chancellor Angela Merkel has said in her annual new year's message.

The country now enjoys its lowest unemployment rate since reunification 20 years ago despite the worst crisis in more than 60 years, she said.
Mrs Merkel tied prosperity to the euro, saying the EU's biggest economy was committed to the single currency.
She was speaking in a pre-recorded address due to be televised nationally.
Despite concerns about high debt levels in the eurozone, the German economy has been driving the region's economic recovery.
The German economy grew by 0.7% between July and September compared with a eurozone average of 0.4%.
German unemployment, which had been approaching 11% as recently as 2005, was below 7% in October, according to the European Commission.
The average unemployment rate for the EU as a whole in October was close to 10%.
The new year sees important regional elections for Germany, the results of which could make life difficult for Mrs Merkel's government, the BBC's Stephen Evans reports from Berlin.
Mrs Merkel sounded like she was making the case to voters not to punish her party either over the economy at home or the eurozone bail-outs abroad, our correspondent says.
In doing so, she seemed to be recognising the scale of the discontent, he adds.
'Because of your work' "In spite of all economic worries, it turned out to be a good year for Germany," she said.
"And all of us can be happy about one thing - never have more people had work in reunited Germany than today...
"We achieved what we planned to do. We even emerged from the crisis strengthened. This is above all because of your work, dear citizens."
Mindful of many Germans' nostalgia for the mark, Mrs Merkel said: "The euro is much more than a currency...
"A united Europe is the guarantor for our peace and freedom. The euro forms the foundation of our prosperity.
"Germany needs Europe, and our common currency, for our own well-being and also in order to overcome big challenges worldwide."

Russia-China oil pipeline opens

The first oil pipeline linking the world's biggest oil producer, Russia, and the world's biggest consumer of energy, China, has begun operating.

The pipeline, running between Siberia and the northeastern Chinese city of Daqing, will allow a rapid increase in oil exports between the two countries.
Until now, Russian oil has been transported to China by rail.
Concentrated in western Siberia, Russia's network of pipelines for oil exports has so far run towards Europe.
Russia is expected to export 15m tonnes of oil through the new pipeline each year during the next two decades - about 300,000 barrels a day.
'New phase' The project cost $25bn ($16bn) and was partly financed by Chinese loans.
Russia overtook Saudi Arabia as the world's largest oil producer in 2009.
China surpassed the US as the world's largest consumer of energy last year.
"The operation of the China-Russia crude oil pipeline is the start of a new phase in China-Russia energy co-operation," said Yao Wei, general manager of Pipeline Branch of Petro China, as he pushed a button near the Russia-China border to start the flow of oil.
Russian Prime Minister Vladimir Putin has said in the past that the pipeline would help Russia diversify its exports.
A second stage of construction on the pipeline is due to be finished by 2014. It will then span a distance of about 4,700 kms (2,900 miles).

Pace of China manufacturing growth eases

The pace of growth among China's manufacturers eased last month but output continued to expand, figures suggest.

The China Federation of Logistics and Purchasing said its purchasing managers index fell to 53.9 in December, from 55.2 in November and 54.7 in October.
It was the first time in five months that the measure had fallen.
Monthly PMI (Purchasing Manager Index) readings have stayed above 50, indicating expansion, for 22 months.
Analysts maintain that strong domestic demand has continued to offset weakness in some of the country's export markets such as the US and Europe.
Chinese authorities have been taking steps to try to control growth in a bid to control inflation - which in November hit a 28-month high.
On Christmas day, Beijing raised key interest rates, the second such move in less than three months.
And the amount of money banks keep in reserve has also been restricted to try to reduce bank lending levels.
The latest data showed that China's economy grew at an annual pace of 9.6% in the three months to the end of September from 11.9% in the first quarter of this year.

Russia opposition leader Nemtsov jailed for 15 days

A prominent Russian opposition leader has been sentenced to 15 days in jail after taking part in a demonstration on New Year's Eve.

Boris Nemtsov, a former deputy prime minister, was punished for failing to follow police instruction, Ria Novosti news agency reported.
Mr Nemtsov was one of more than 120 protesters arrested at rallies in Moscow and St Petersburg.
The protests are held monthly to assert the right to freedom of assembly.
Police said Mr Nemtsov was arrested for attempting to break through police lines while demonstrating at a central Moscow square.
Organisers had obtained permission for a protest on one corner of the square, but some, including Mr Nemtsov, gathered on the other side of the square, Associated Press news agency reports.
Police in Moscow detained 68 people, while more than 50 were arrested at the St Petersburg demonstration, which did not have a permit.
'Biased' Mr Nemtsov condemned the sentence, saying the judge was "completely biased" and that the authorities were trying to intimidate the opposition, Ekho Moskvy radio reported.
He also claimed the court refused to allow police and TV video recordings from the scene to be used as evidence.
Police also sentenced Eduard Limonov, an opposition writer and leader of the radical National Bolshevik Party, after arresting him near his Moscow home about an hour before he was to hold an unsanctioned rally.
He was handed 15 days of imprisonment for insulting police during his detention, Ria Novosti reported a court spokesperson as saying.
Protesters at the Moscow rally had demanded that Prime Minister Vladimir Putin stand down and called for the release of former tycoon Mikhail Khodorkovsky, an outspoken critic of the Kremlin.
The rallies take place regularly on the 31st day of the month to highlight Article 31 of the Russian constitution, which protects the right to freedom of assembly.

Pakistan PM loses vital coalition partner as MQM quits

Pakistan's MQM party says it is leaving Prime Minister Yusuf Raza Gilani's coalition to join the opposition.

The move will deprive Mr Gilani of his majority in parliament.
The Muttahida Qaumi Movement, the second largest party in the coalition, withdrew two ministers from the federal cabinet last week.
Mr Gilani denied there his government was in danger of collapsing. "I don't see any crisis," he said, speaking on television after the announcement.
The BBC's Aleem Maqbool in Islamabad says the government is now scrambling to find new partners, but that without them, new elections are likely.
Pakistan's governing coalition held 181 seats - including the MQM's 25 - in the 342-member parliament. The MQM's departure leaves Mr Gilani's Pakistan People's Party well below the 172 seats needed to preserve its majority.
Fuel prices

A statement issued by the party said: "Right at the start of the new year the government has raised the prices of petrol and kerosene oil which is unbearable for the people who are already under pressure from the already high prices."
Our correspondent says the move comes as a surprise.
"We have decided to sit on opposition benches because the government has not done anything to address the issues we have been protesting about," said Faisal Sabzwari, a MQM regional minister in Sindh province.
The MQM dominates politics in the city of Karachi.
The city, which the capital of Sindh province, has seen ethnic tension, with the MQM's militant wing widely believed to be behind most ethnic and political killings in the city over the last few years.
A smaller coalition partner, the Jamiat-i-Ulema Islam party, withdrew from the government earlier in December after one of its ministers was sacked.
Many in Pakistan believe the two parties are acting at the behest of the security establishment to undermine the country's political system.

Australia floods: New storm forecast for Queensland

A severe thunderstorm threatening flash floods has been forecast for the already badly inundated Australian state of Queensland.

More than 20 towns have already been cut off or flooded across an area larger than France and Germany, with more than 200,000 people affected.
Meanwhile, a woman swept from the road in her car has become the first victim of the widespread flooding.
At least two other people have been reported missing.
In some areas waters are receding, but in Rockhampton - a city of 77,000 - they have yet to reach their peak.
Floodwaters could reach nine metres (30 feet) on Monday and peak at 9.4 metres on Wednesday, it says.

Even in a land as vast as Australia, the scale of the flooding is hard to comprehend. In central Queensland, murky brown floodwaters cover an area the size of France and Germany combined, and the crisis is far from over.

The city of Rockhampton, the home to over 70,000 people, is the latest to be bracing itself for nearly 30 feet floodwaters.
The airport has been closed, its runway already inundated. A main highway has been shut, and the local mayor has warned that over 40% of the city could be flooded.
Authorities say water from the swollen Fitzroy River is swamping parts of the city faster than originally forecast, and they are considering forced evacuations.

 late on Sunday night will bring "damaging winds, very heavy rainfall, flash flooding and large hailstones" to areas including Charleville, Emerald and Blackwater.

This includes areas in the central Highlands which have been hit badly by the floods in recent weeks.
Costly damage The 41-year-old woman who was killed had been trying to cross the Leichhardt River on a causeway with one other car when both vehicles were swept away.
Police rescued eight people from the cars, but were unable to reach the woman. Her body was recovered later.
Rescue workers have also been searching for a man whose small fishing boat was swamped by flood waters in the mouth of the Boyne River, and for a swimmer who disappeared in the Fitzroy river, the Sydney Morning Herald reported.
There are fears that damage from the floods could cost billions of Australian dollars to repair.

Officials have warned that the mining, farming and tourism industries will all suffer.

Recovery efforts are beginning in some areas where flooding has subsided, including the severely affected towns of Emerald and Bundaberg.
Residents are preparing to return home, though the towns of Theodore and Condamine, which were completely evacuated, remain empty.
In some areas, helicopters have been used to deliver supplies and food to cut-off householders.
Residents in Rockhampton have been leaving their homes for days as water levels continue to rise.
The mayor there, Brad Carter, has warned that about 40% of the city could be affected.
The airport has been closed to commercial flights, and roads into the city from the south and the west have been cut off.
One Rockhampton resident told the BBC there had been panic buying in the city.
"Lots of people have been stocking up on fuel. I also heard about one woman who brought 20 loaves of bread from a supermarket," Petros Khalesirad said.
And he also claimed the floods had swept snakes downstream.
"Snakes have been swimming at people's feet as they make their way through the waters," he said. "I know one guy who killed four snakes this morning, one of which was a taipan - the more it bites, the more it injects venom that could easily kill."

Russian airlines should ground Tu-154s, watchdog says

Russia's airlines should ground their Tu-154 planes, after a fire in Siberia which killed three people, the country's transport watchdog says.

At least 43 were injured when the plane, carrying 124 people, burst into flames before take-off from Surgut.
The Federal Transport Oversight Agency advises airlines should stop using the workhorse Tu-154 until the Surgut crash is investigated.
It is not clear whether the warning will be legally binding.
The "black box" voice and data recorders have been recovered, after the plane exploded in a fireball on Saturday.
The Tu-154 dates from the Soviet era, and is used extensively on domestic air routes in Russia and the former Soviet Union.
Powerful blast The plane was taxiing for a flight to Moscow, when a fire started in one of its engines, an emergency services spokesman said.

The fire then caused a powerful blast which destroyed the plane and caused flames across an area of 100 square metres, he said.
Most of the passengers were evacuated before the explosion.
"There was a thick, black smoke and people started to panic. They were literally stepping on each other's heads," said Sergei Grigoriyev, a singer with the band Na-Na who were on board.
"I saw my life flash before me," he said, according to Itar-Tass news agency.
Fellow band member Vladimir Politov said the group had escaped out an emergency exit over the wing and were all unharmed.
The Tu-154 entered service in the 1970s but a series of crashes triggered concerns over its safety record.
Russia's national carrier airline Aeroflot took all its remaining 23 Tu-154 aircraft out of service in January 2010.
Polish President Lech Kaczynski was killed last year when a Polish Airforce Tu-154 crashed in western Russia.

MQM pulls out of Pakistan government

Pakistan's MQM party says it is leaving Prime Minister Yusuf Raza Gilani's coalition to join the opposition.

The move will deprive Mr Gilani of his majority in parliament.
The Muttahida Qaumi Movement, the second largest party in the coalition, withdrew two ministers from the federal cabinet last week.
Mr Gilani denied there his government was in danger of collapsing. "I don't see any crisis," he said, speaking on television after the announcement.
The BBC's Aleem Maqbool in Islamabad says the government is now scrambling to find new partners, but that without them, new elections are likely.
Issues such as rising petrol prices have led to what is seen as a surprise move, our correspondent says.

Iran 'shoots down Western spy drones' in Gulf

Iran's Revolutionary Guards have shot down two "Western spy drones" in the Gulf, a senior Iranian commander has been quoted as saying.

"Many" other drones have been shot down over an unspecified period of time, the Fars news agency quoted him as saying.
The head of the Revolutionary Guards' air force wing, Amir Ali Hajizadeh, produced no evidence to support the report.
He said this was the first time news of the incidents had been reported.
The drones were mainly being used in Iraq and Afghanistan but "some violations against our soil" had also occurred, the commander said.
The Revolutionary Guards were set up following the Islamic revolution in 1979, and its commanders have frequently delivered warnings to Israel.
Last August Iran unveiled what it said was its first domestically built drone, the Karrar.
It said it had a range of 1,000km (620 miles) and could carry two 250-pound (115kg) bombs, or a precision bomb of 500 pounds.
There is no independent corroboration of the latest Iranian claims.
The Fifth Fleet of the US navy is based in Bahrain, on the other side of the Gulf from Iran, which has threatened to block shipping through the strategic Strait of Hormuz, if it is attacked.

Sepp Blatter proposes Fifa anti-corruption committee

Fifa president Sepp Blatter says he wants to set up an anti-corruption committee to police world football's governing body.

The move comes after allegations of corruption dogged Fifa throughout the bidding process and voting for the 2018 and 2022 World Cups.
Blatter said: "This committee will strengthen our credibility and give us a new image in terms of transparency.
"I will take care of it personally, to ensure there is no corruption at Fifa."
Blatter told Swiss newspaper SonntagsZeitung the committee would consist of seven to nine members "not only from sport but from politics, finance, business and culture".
And the Swiss confirmed he would not sit on the committee himself as he wanted to guarantee its independence.
In 2010, Fifa's executive committee members Amos Adamu and Reynald Temarii were suspended over allegations they offered to sell their votes during bidding for the World Cup, something the pair vehemently denied.
They both subsequently missed December's ballot in which Russia was chosen to host the 2018 tournament and Qatar the 2022 event, following a secret vote by the remaining 22 committee members.
During the bidding process for the World Cups, Fifa was also forced to investigate rumours of collusion between member associations and their bid committees in relation to the 2018 and 2022 World Cup bidding process.
At that time, Fifa secretary general Jerome Valcke warned all countries that mutual voting deals were against Fifa rules.
The 2018 Spain-Portugal and 2022 Qatar bids were cleared of collusion in the investigation.
A BBC Panorama programme broadcast three days before the World Cup vote alleged three Fifa officials took bribes in the 1990s.
One of the accused, vice-president Issa Hayatou, strongly denied the Panorama claims.
Fifa said at the time the case was "definitely closed" as allegations had already been investigated in Switzerland, with no Fifa officials being convicted.

UN to investigate Ivory Coast violation reports

UN peacekeepers have been instructed to do all they can to investigate sites of alleged human rights violations, following November's disputed election.

The UN says it had tried to go to the site of one reported mass grave, but was blocked by security forces loyal to incumbent President Laurent Gbagbo.
Human rights groups claim allies of Mr Gbagbo have been abducting opponents.
Meanwhile, regional group Ecowas and the African Union are due to meet to Mr Gbagbo for more talks on Monday.
So far Mr Gbagbo has refused demands from the world community to stand down in favour of his rival in the 28 November presidential polls, Alassane Ouattara, who is internationally recognised as the victor.
Kenyan Prime Minister Raila Odinga, who is leading AU negotiations, is flying to Nigeria to meet Nigerian President Goodluck Jonathan, who heads Ecowas, before talks in Ivory Coast.
'Record violations' UN spokeman Martin Nesirky said UN Secretary General Ban Ki-Moon told Mr Ouattara in a phonecall on Saturday that he was "alarmed by the reports of egregious human rights violations".

"He (Mr Ban) said UNOCI had been instructed to do everything possible to gain access to the affected areas both for prevention and to investigate and record the violations so that those responsible will be held accountable," Mr Nesirky said in a statement.
The UN says some 200 people have been killed or have disappeared in the past month - mostly supporters of Mr Ouattara.
It says it has received reports of at least two mass graves and has been repeatedly blocked from investigating one of them, on the outskirts of Abidjan. When investigators tried to go, truckloads of men with guns showed up and forced them to leave.
The other reported site lies in the centre of the country, near Gagnoa.

Ivorian refugees flee to Liberia

Almost 19,000 refugees have crossed into Liberia to escape the crisis, more than half of them children, says Ranjan Poudyal, Country Director for Save the Children in Liberia.
"Arriving in Kissiplay and Duoplay, we found whole families of up to 10-12 people sharing a room in public school buildings and churches. To feed themselves, many families, whether or not they are physically fit, have taken up work on farms. Liberian families hosting the refugees, meanwhile, are concerned that there will soon not be enough food to go around. Safe drinking water is also now becoming hard to find.
We came across multiple cases of diarrhoea, malaria, and skin infections. We also came across cases of physical wounds from beatings received in Ivory Coast needing medical attention. But many of these settlements are several hours walk from the nearest clinic.
As is found in all emergencies where there is a mass upheaval of communities, in the six villages where we carried out our assessment, we came across 39 children who had been separated from their parents during the move, 20 unaccompanied minors, and eight parents who were devastated at having lost their children".

The Gbagbo government has repeatedly denied the existence of any mass graves.

UN human rights chief Navi Pillay has written to Mr Gbagbo to tell him he could be held criminally accountable for abuses.
Mr Ouattara has asked for the International Criminal Court in the Hague to send a mission to the country to investigate the reports, and reiterated the call on Saturday.
The UN has also expressed concern that some of the homes of opponents to Mr Gbagbo have been marked to identify the ethnicity of their occupants, indicating signs the country could be heading for ethnic violence.
'Pressure' Some of Ivory Coast's neighbours have threatened to oust Mr Gbagbo by force. The UK has said it would back military intervention, if sanctioned by the UN.
In an address for the new year, Mr Gbagbo said the pressure for him to quit amounted to "an attempted coup d'etat carried out under the banner of the international community".
He reiterated a call for the UN peacekeeping mission (UNOCI) to leave the country.
UN peacekeepers are protecting Mr Ouattara, who is holed up in a hotel in the main city, Abidjan.
The election was intended to reunify the country which has been divided since a 2002 conflict.
Mr Ouattara was initially proclaimed the winner by Ivory Coast's election commission, but the Constitutional Council said Mr Gbagbo had won. Both men have been sworn in as president.

Egypt media warn of 'civil war plot' after bombing

CAIRO - Egyptian newspapers warned on Sunday that "civil war" could break out unless Christians and Muslims close ranks after a deadly attack on a Coptic church that triggered angry protests.

The authorities said that a suicide bomber blew himself up outside Al-Qiddissin church in the Mediterranean city of Alexandria early on New Year's Day, killing 21 people and wounding 79 others.

Protests by Christians and clashes with the police that erupted after Saturday's attack could worsen and plunge Egypt into a new spiral of sectarian violence, the government and independent newspapers said.

The papers also urged the government to give serious consideration to the plight of the Copts who account for up to 10 percent of Egypt's 80-million population and often complain of discrimination.

"Someone wants to make this country explode... We must realise that there is a plot aimed at triggering religious civil war," the pro-government daily Rose el-Yussef said.

Egyptians should foil attempts by "terrorists" to strike at the country, it said.

The independent paper Al-Shorouk said Christians had a right to be angry, but urged them not play into the game of "the instigators of (Saturday's) crime."

"No one can blame the Christian brothers if they are angry and disgusted," the daily said.

The bombing sparked anger among Christians, who clashed on Saturday for several hours with police and shouted slogans against the regime of President Hosni Mubarak.

"O Mubarak, the heart of the Copts is on fire," protesters shouted as they darted in and out of side-streets around the bloodied church to shower police with stones. Police fired tear gas grenades at the demonstrators.

Al-Shorouk said it would be "more dangerous for the Christians to be mired in their feelings of anger and frustration, than the attack itself."

"It would increase their isolation and the instigators of the crime would have then achieved their goal," it said.

"If all goes as planned, criminal operations against Coptic targets and holy places will increase. Copts will clash with their Muslim neighbours and we will be stuck in marshlands like Lebanon was in April 1975," it said.

A civil war broke out in Lebanon that month, lasting 15 years and pitting Christians against Muslims.

Another independent daily, Al-Masri Al-Yom, urged the authorities to take the bull by the horns and look beyond the security implications of Saturday's bombing, including at the political, social and cultural aspects.

"We should not hide our heads in the sand. Some say that foreign hands are probably behind this crime. But we believe that if the national fabric is solid enough, no foreign faction could set the fire in our midst."

The solution lies "in a serious dialogue around this sensitive issue" of the Copts, Al-Masri al-Yom said.

The attack, which Mubarak has blamed on "foreign hands," drew international condemnation with Pope Benedict XVI leading the fray on Saturday urging world leaders to defend Christians against abuse.

US President Barack Obama denounced "this barbaric and heinous act," and the European Union "unreservedly" condemned the bombing.

The World Council of Churches (WCC) condemned "the vicious attack" and called for "proactive engagement in dialogue and partnership between Christians and Muslims in Egypt."

Turkey and Israel have said they were "shocked" by the attack which Ankara on Sunday called a "cowardly terrorist" act.

Israeli Prime Minister Benjamin Netanyahu called Mubarak on Saturday to express solidarity.

Big crowds swarm Bangladeshi banks for WCup tickets

DHAKA - People queued overnight outside of banks in the Bangladeshi capital of Dhaka in a desperate bid to buy highly-prized cricket World Cup tickets, which went on sale on Sunday.

Two leading Bangladeshi banks are selling tickets for eight matches at the Feb. 19-April 2 tournament, to be jointly hosted along with India and Sri Lanka, from their 80 branches across the country.

People started gathering in front of the banks on Saturday morning, braving cool weather but there were expected to be a number of disappointed fans.

The Bangladesh Cricket Board (BCB) said the Sher-e-Bangla National Stadium, which will host six matches including the opener between India and Bangladesh, has a seating capacity of 25,167 but only 15,167 tickets are available for local spectators.

The remainder of the tickets are to be reserved for the International Cricket Council, foreign visitors and other stakeholders.

There is a similar situation at the Zohur Ahmed Chowdhury Stadium in Chittagong, which will host Bangladesh's group matches against England and Netherlands, with 12,521 tickets made available for locals at the 17,800 capacity venue.

The BCB apologised to the fans on Saturday as most of them will be deprived of a ticket.

"I am trying to get a ticket for World Cup, but it's very crowded here," said Enna Karmakarm, a cricket fan, who was waiting in front of a bank in Dhaka's Karwan Bazar area.

"I am afraid I would not be able get a ticket. But if get a ticket I will definitely go to the field and enjoy the match," said the 26-year-old university student.

Rinku, another cricket fan, who stood in the queue on Saturday, was also unsure of his luck.

"I waited here (the) whole night to see World Cup matches, which will be taking place in Bangladesh for the first time. I don't know whether I will get the tickets, but if I get (one) I will go to the stadium and inspire our cricket team," he said.

Zaheer dismisses Smith for sixth time in nine tests

CAPE TOWN - India pace bowler Zaheer Khan dismissed South Africa captain Graeme Smith for the sixth time in nine tests before rain forced the players off the field after only nine overs on the opening day of the third test on Sunday.

Smith had scored six when he played a hesitant drive at the left-arm swing bowler down the wrong line. The ball shaped to go away but then nipped back in, hitting the left-hander on the back pad in front of his stumps.

Rain started to fall 15 minutes later and the players left the field with South Africa 21 for one after being asked to bat first. Zaheer had taken one for seven in five overs of top-class swing bowling.

India, the world's top-ranked side, made one change with opening batsman Gautam Gambhir returning for Murali Vijay after a hand injury ruled him out of the second test in Durban last week. The three-match series is tied 1-1.

Iran says no gap in oil exports to India

TEHRAN - A senior Iranian Oil Ministry official said on Sunday Iran's oil exports to long-time trading partner India had continued despite a dispute over the method of payment, student news agency ISNA reported.

"There has been no disruption in the sale and exports of oil to India in recent days," said Ahmad Qalebani, the head of state National Iranian Oil Company (NIOC).

India buys about 400,000 barrels per day of Iranian crude.

Qalebani said the two countries were determined to carry on cooperating despite problems agreeing a new payment method, after India said last week it would no longer use a regional clearinghouse system which had been criticised for being opaque.

"The economic cooperation between Iran and India in this (oil trade) connection is still continuing," Qalebani said.

The Islamic state, the world's fourth-largest oil producer, is under sanctions over its nuclear work. Washington and its allies fear the programme is a cover to build bombs, while Tehran says it is only aimed at generating power.

Although U.S. sanctions do not cover oil sales, the Asian Clearing Union system used by India and Iran for the trade had been criticised for making it difficult to monitor flows into Iranian organisations against which Washington has sanctions.

On Friday, Deputy Oil Minister Ahmad Khaledi said the dispute with India had been settled by changing the currency for trading. "By changing the currency for oil transactions between Iran and India the problem was solved."

A senior Indian official present at a Friday meeting with Iranian officials said the idea of using euros instead of dollars was discussed but the two sides would need to make sure the European Central Bank would be happy with the transparency.

Qalebani made no reference to any new arrangement between the two countries, which implied the issue remained unresolved.

New Security Council gives preview of reform

UNITED NATIONS - Germany, India and South Africa take their places this week on the UN Security Council, giving it the look of a body that many see as the basis of a reformed custodian of world peace.

As Brazil has one more year on the council, many diplomats are looking at the next 12 months to see how the world's increasingly assertive new players and old powers can work together on troublespots ranging from Sudan to Iran's nuclear drive.

The permanent five -- Britain, China, France, Russia and the United States -- who can veto any resolution, have dominated the council since 1945. There has been no change since 1963 when the number of non-permanent members increased from six to 10.

With Ivory Coast and the Korean peninsula in crisis, a referendum in Sudan next week that could breakup Africa's biggest nation and Palestinians stepping up demands for nationhood, Germany, India, South Africa, along with fellow new members Portugal and Colombia will have their diplomatic mettle tested within days.

The Western powers are looking for signs of the intentions of the pretenders for permanent seats, particularly India and South Africa. "There are some fears that work could be blocked," said one envoy, speaking on condition of anonymity.

With one eye on a tentative new campaign to change the council, all have been making conciliatory noises as they start their two year stay.

South Africa, Brazil and India have in the past been reluctant to impose sanctions on nations such as Iran.

But South Africa's UN ambassador, Baso Sangqu, said that none of the new powers wanted a "gridlocked" Security Council.

"All of us will be raising voices on issues that are important to us and we hope that this will have a collective impact in terms of how the council responds, but there won't be a them and us kind of configuration," he told AFP.

India is still celebrating the support given by US President Barack Obama for its drive to become a permanent Council member.

India's ambassador Hardeep Singh Puri said the new and old nations would be "on the same page in terms of overall objectives. If there are perceptions of nuance you will find them all very constructive."

India has traditionally opposed human rights UN resolutions against individual nations but has changed this recently for North Korea and most notably Iran. "We are constantly reviewing our positions. This is a new India," the ambassador said in an interview.

"We want our tenure to create an added value for the broad membership. And if countries feel that this council did a good job, it would certainly lend the discussion about Security Council reform further impetus," said Germany's envoy Peter Wittig.

South Africa wants "to advance the African agenda within the Security Council," said Sangqu.

More than two thirds of the conflicts and crises that the Security Council handles are in Africa. "It is not something that we should be proud of," he said.

The Sudan referendum on January 9 will be one of the first tests and Sangqu said the international community must put resources into the reconstruction of both north and south Sudan after the vote in the south.

South Africa also wants greater international resources for Somalia, which the ambassador said should not become "a forgotten conflict", a fate which he said had already befallen Western Sahara. "The council is not doing anything" over the dispute between Morocco and Western Sahara guerrillas, he said.

Puri said India would put forward a very "strong voice" on terrorism and on peacekeeping. India is the biggest troop contributor to UN peacekeeping forces.

He said the Security Council 15 have to take the rest of the United Nations more seriously.

"I must say with a sense of regret that whenever I addressed the Security Council as a member of the General Assembly I always found second secretaries and third secretaries there -- the Security Council has already done its work and now they are just listening to the others. I would like that to be changed."

Germany, already firmly in the western camp, wants to put a greater emphasis on peace building, according to its ambassador.

"We want to push for a forward looking council. We want the Council to take into account the regional and global conditions that lead to the build-up and outbreak of crisis. We need to act well before the first fatalities hit the headlines," Wittig said.

Oprah Winfrey launches OWN TV network

US talk-show host Oprah Winfrey has launched her own TV network, which will offer round-the-clock lifestyle programmes.

The channel is called OWN, or the Oprah Winfrey Network. It is a joint venture with the Discovery channels.
OWN's start date has been delayed twice and its cost has reportedly swollen to $189m (£121m).
Among the programmes scheduled is a reality show starring the Duchess of York, Sarah Ferguson.
Winfrey has built up a huge fan base during 25 years as the host of the syndicated Oprah Winfrey Show.
The programmes on the new station have a focus on empowerment, improvement, positivity aimed mainly at women, who are Ms Winfrey's core audience.
"I wanted to build a network which empowers you, the viewer, to turn your dreams into reality," Ms Winfrey said on a preview programme that launched the network on Saturday.
One of the programmes offered will be a reality show in which 10 finalists from thousands of applicants will compete for the chance to host their own TV show.
There will also be a programme called Why Not?, hosted by Canadian country singer Shania Twain.

Spain's strict new anti-smoking rules take effect

A tough anti-smoking law has taken effect in Spain.

The ban - one of the strictest in Europe - outlaws smoking in all bars and restaurants. Smokers will also be prohibited on television broadcasts, near hospitals or in school playgrounds.
The law tightens anti-smoking restrictions introduced in 2006.
Spain has a strong cafe culture and the owners of bars and cafes have complained the law will hurt business.
The anti-smoking rules introduced in 2006 outlawed smoking in the workplace, but it let bar and restaurant owners choose whether or not to allow it. Most chose not to impose any ban.
Only large restaurants and bars were obliged to provide a smoke-free area.
Hotel, restaurant and bar owners have said they could face a 10% drop in trade with the new rules. The industry has already seen a sharp fall in sales due to Spain's economic problems.
But doctors argue the new legislation will help smokers give up.
Some 160 Spaniards a day die from smoking-related illnesses, four of them from passive smoking.

BBC News website readers in Spain have been sending in their comments

I'm Spanish and I'm a smoker, but I agree with some of these rules. I understand that it is quite annoying for a non-smoker to be in a pub or in a restaurant and find it difficult to breathe. Personally, I don't mind having to smoke outside a pub or a bar, basically because in countries such as England, Ireland and France people have been doing it for years and citizens have accepted it. It's me who decides to smoke and I have to go through some collateral damage if I want to respect non-smokers' right to breathe. But one rule that I find amusing is the prohibition of smoking in playgrounds (I have no objections as for hospitals). In theory, that would be OK if it weren't for the fact that adults who won't smoke in the playground so as not to damage their children, will do it at home, and who will supervise that? Veronica, Valencia
I'm delighted. Spain has an strong cafe culture, that's exactly why I'm expecting to be able to enjoy it from now on. Carmelo, Bilbao
This is only another page of liberties harassment, I don't see the problem if smokers are kept together standing and smoking in a cubicle at the airport. Our freedom is being battered, democracy is the government of majorities but it should also respect the minorities. Berto, Las Palmas
I am a Spaniard and I am currently in Spain. I am looking forward to this restriction taking effect. I do understand that people are free to choose whether to smoke or not... but, up to now smokers have enjoyed more freedom than non-smokers. Smokers benefit from public areas more than non-smokers, even when the highest percentage of the population are non-smokers. I have nothing to say if people want to smoke in their private places, in their home or car... I think it was Rousseau who said that your freedom in the community ends where my freedom begins. Inma, Sevilla
People in high places again making unpopular decisions. What gets me is this, they show us statistics but never proof, they tell us a ban such as this is to help people give up smoking but the sale of tobacco in the places where its use is banned goes on, just more control. In this town, like many, thousands of lorries pass through narrow streets and we all have to suffer the fumes. We all have a duty not to smoke near children that is logic more than law... But... going for a smoke. Tomas, Ermua, Basque Country
I am a passive smoker and I think it is a good law. The problem is the little bars and cafes. I don't like to eat in restaurants with a smoker near to me. In Europe people smoke in the street. I think smokers in Spain can smoke in the street. If they give up smoking, it will be better for them and Spanish society. Manuel, Figueres
I'm Spanish and I'm so happy for the new anti-smoking rules. Now it will be possible to enter any restaurant or bar without having to smell cigarettes all around. This is really good news. Since smoking was prohibited in some establishments in 2006 we have seen that in those restaurants where you can choose smoking or non-smoking area, the one which is always full of people is the non-smoking, that's the reason why I think that restaurants are not going to lose customers, people will just get used to it. 

iPhone alarms hit by New Year glitch

A glitch on Apple's iPhone has stopped its built-in alarm clock going off, leaving many people oversleeping on the first two days of the New Year.

Angry bloggers and tweeters complained that they had been late for work, and were risking missing planes and trains.
Apple has acknowledged the problem and says it will be fixed by 3 January.
The reason has not been given but the glitch appears to affect single alarm settings on the iPhone 4 and earlier models with software updates.

A similar problem hit the iPhone alarm when the clocks went back in November, again causing many users to be late for work or for transport arrangements.

"We're aware of an issue related to non-repeating alarms set for January 1 or 2," Apple spokeswoman Natalie Harrison said in a statement quoted by Macworld.
"Customers can set recurring alarms for those dates and all alarms will work properly beginning January 3."
'Two days too late'
BBC Technology reporter Jonathan Fildes says the problem is embarrassing for Apple, not only because of previous problems that came to light when the clocks changed, but because the company prides itself on the simplicity of use of its products.
This seems like another simple error, but it cannot afford to have too many before its reputation becomes tarnished, he says.
Apple failed to patch the problem last time - meaning the same alarm bug was reported around the world when the clocks changed in different regions, our reporter says.
Apple should have learnt from that example and seen this one coming, he adds. According to the company, the problem will resolve itself on 3 January, but that is two days late for many people.
More than 1.7m people around the world had bought iPhone 4 handsets by June 2010, in what was the company's most successful product launch.

Government 'poised to scrap control orders'

Control orders imposing virtual house arrest on terror suspects are set to be scrapped after months of wrangling within the coalition, it was reported today.

In what would represent a significant victory for Deputy Prime Minister Nick Clegg, the Cabinet was said to be ready to approve a plan to end the use of electronic tags and home curfews.

The Sunday Times claimed that terror suspects would be allowed to travel freely within Britain and be allowed to use mobile phones and computers.

A review of counter-terrorism legislation was due to report before Christmas but has been delayed until early 2011 because of ongoing negotiations between ministers.

Mr Clegg's Liberal Democrats fought the general election on a manifesto commitment of abolishing control orders.

Introduced under the former Labour government, they have been strongly criticised by civil liberties campaigners but police and the security services have repeatedly stressed the need to be able to contain suspects they are not able to charge.

The review, also looking at the controversial 28 day pre-charge detention period for terror suspects, was announced by Home Secretary Theresa May in July.

It is being overseen by former director of public prosecutions and Lib Dem peer Lord Macdonald of River Glaven.

Nine people are currently subject to control orders, each with a 16-hour home curfew.

A Home Office spokesperson said: "The counter-terrorism legislation review is under way and we will report back shortly. No decisions have yet been made."

Shami Chakrabarti, director of Liberty, said: "Control orders combine the injustice of punishment without trial with the insecurity of allowing terror suspects to roam around communities or disappear. There can be no slicing, dicing and re-branding of these shameful orders.

"This policy and the coalition promise to restore civil liberties and the rule of law cannot both survive 2011."

Minister praises staff after prison riot

Prisons minister Crispin Blunt today praised staff for their handling of riots at an open prison.

Mr Blunt was given a tour of Ford prison near Arundel, West Sussex, following yesterday's rampage by about 40 inmates.

The prisoners turned violent in the early hours after officers attempted to breathalyse them for contraband alcohol.

The rioters set light to buildings during the night and again at lunchtime, causing extensive damage to six accommodation blocks, a gym, mail room and snooker and pool rooms.

It has been claimed there were only two prison officers and four support staff on duty for a prison population of 496 when the trouble started.

About 150 inmates had to be taken to other prisons because of the damage to the accommodation blocks.

Mr Blunt said there would be two investigations into the events, an internal one by the Prison Service and a criminal inquiry by the police.

He said: "I have spent the last two hours visiting Ford prison, getting briefed by the governor and the prison officers and talking to some of the prisoners who remain at Ford prison.

"Unanimously they are appalled and disgusted by what happened yesterday.

"That goes for the prisoners that remain there, it's their community facilities that have been destroyed and the actions of the prisoners who took part in the incident have therefore absolutely damaged the interests of all the inmates of the prison.

"There are now going to be two inquiries, a Prison Service internal inquiry and there will be a number of issues which will have to be addressed during the course of that.

"I also anticipate that there will be a police inquiry which may lead to criminal prosecutions.

"I hope and expect there will be full co-operation by everyone in Ford prison to make sure that the perpetrators are brought to justice."

Praising the prison staff, he said: "The prison officers were exemplary. They were able to re-establish control of the prison without anyone getting hurt which is an important achievement."

A New Year message from the people of Britain

The British people have a New Year's message for their government: set us free. Invited by the coalition to suggest improvements to the way we are governed, thousands drew on their experiences and expertise to tell ministers that what they most want is for a match to be put to a bonfire of all the laws, rules and regulations that restrict the freedom of individuals.

The "Your Freedom" operation, launched last summer, invited suggestions for changes that could chip away at decades of bureaucracy. When the Deputy Prime Minister, Nick Clegg, unveiled the project's website, he promised that every submission would be read, and urged: "Please use this site to make yourself heard. Be demanding about your liberties; be insistent about your rights."

The public has responded on a scale even he could never have imagined, with almost 14,000 proposals, many aimed at what people regard as unnecessary regulations in every area, from taxation and waste disposal, to multiple criminal records checks and form-filling for small businesses, schools and charities. There are several objections to what many people regard as the "dictatorial" ending of FM radio. There are also deep-seated complaints over apparent abuses of state power, with restrictions on the right to protest, the apparently one-sided extradition treaty with the US, and overbearing quangos coming in for particular criticism.

Ministers have already been ordered to get to work on the best, and later this month Mr Clegg will reveal which suggestions are adjudged sufficiently viable to go ahead, as part of his Freedom Bill. Other ideas may be used in further "citizen freedom" legislation, or changes in regulations.

Last night, officials at the Department for Communities and Local Government claimed they have already incorporated some of the proposals into plans to strip out unnecessary red tape, including an ongoing review of building regulations.

The Communities Secretary, Eric Pickles, said: "We need a sensible new approach that makes clear laws are intended to protect people, not overwhelm them with red tape."

The majority of responses amount to thoughtful and insightful attempts to oil the wheels of government. But many contributors betray genuine anger at the way they feel the authorities restrict their freedom.

In a plea for the amalgamation of Criminal Records Bureau (CRB) checks, "suestibbs" complained that she needed separate clearances to work as a school governor, a member of the Youth Justice Panel and with a youth club. She added: "As a boring 63-year-old woman I am not likely to start to offend and the focus should be on specific categories of people, rather than everybody who may come into contact with children. I am going to be being involved with Meals on Wheels, which will presumably entail a further CRB check, in case I am going to start offending against old people."

A self-employed, "small-scale gardener" pleaded for an end to rules that forced him to pay £150 to be registered to carry waste in his van. He said: "If I do not pay this sum and I am caught carrying any waste 'no matter how small', then I may face a fine of up to £5,000."

A series of business people highlighted red tape they claimed stifled their companies and increased costs for customers, including VAT charges on refurbishment work, rules against home-working and infection-control regulations imposed on dentists. Several more objected to rules including restrictions on demonstrations and photographers, and the criminalisation of drugs.

A flurry of calls for the abolition of control orders, which restrict the freedom of terror suspects, threatened to embarrass Mr Clegg. The issue provoked tension between hawkish Tories and the Lib Dems, who opposed them in opposition. It was reported last night that the Cabinet is set to agree a package of "mitigating measures", freeing suspects to leave their homes and use mobile phones and computers. The proposals, reported in the Sunday Times, would represent a victory for Mr Clegg .

A spokesman for the Department for Work and Pensions said more than 200 suggestions had been received from the Your Freedom website .

He added: "We have considered all suggestions and taken action where appropriate, but the vast majority would not require regulatory change.

"Many of the contributions were references to the compensation culture or a misunderstanding of regulation in this area. We expect the implementation of the findings of the Young Review [of health and safety] to address most of these issues."