Leicester withstood a stunning Wasps comeback to win a pulsating Heineken Cup encounter at the Causeway Stadium. The Tigers stormed 22 6 ahead within 18 minutes through tries from Lewis Moody, Geordan Murphy and Martin Corry. European champions Wasps fought back through a Josh Lewsey try and Mark van Gisbergen's boot, and they were level at 31 31 with five minutes remaining. But it was the visitors who kept their cool as Andy Goode kicked the Tigers to victory with a penalty and a drop goal. The closing moments saw desperate defence from Leicester as Wasps turned down several penalties to go for the try they needed. Wasps pounded the line and a penalty try looked likely before referee Nigel Williams controversially blew for full time. Fly half Goode was the Tigers hero, kicking 22 points in total, while Leicester's overwhelming domination in the scrums ultimately told. Even their lack of discipline in defence which presented the admirable Van Ginsberg with 26 points could not undo them as they held out for a famous win. Lawrence Dallaglio's team have now got it all to do in the quest for a quarter final place given that two of their last three games are away against Leicester and Biarritz. However, Wasps rugby director Warren Gatland warned his side will will not relinquish their European title without a fight. "If we lose next week, then we are struggling," said Gatland. "But we don't want to give this trophy away. We worked so hard to win it last season, we will go down fighting. "We have got to get our scrum right next week, it is the biggest cause for concern." Leicester coach John Wells saluted the outstanding work of Graham Rowntree and Julian White, who were magnificent up front. "They were the backbone of our performance today," said Wells. "And to score three tries against the European champions at home was also something I am pleased about." Van Gisbergen; Lewsey, Erinle, Abbott, Voyce; King, Dawson; Dowd, Greening, Green; Shaw, Birkett; Worsley, O'Connor, Dallaglio (capt). Replacements: Gotting, McKenzie, Lock, Hart, Biljon, Brooks, Hoadley. Murphy; Rabeni, Smith, Gibson, Healey; Goode, Ellis; Rowntree, Chuter, White, M Johnson (capt), L Deacon; Moody, Back, Corry. Replacements (from): Buckland/Cockerill, Morris, Kay, W Johnson/B Deacon, H Tuilagi, Bemand, A Tuiliagi, Lloyd, Vesty.


England forward Martin Corry says Jason Robinson is the right man to lead the national team back to winning ways. After losses to Wales and France, critics have started to wonder whether Robinson can captain from full back. But Corry has backed Robinson, who was given the role after the injury to fly half Jonny Wilkinson, ahead of this weekend's trip to Ireland. "Jason is doing a tremendous job. Every week my respect for him goes up," Corry told BBC Radio Five Live. "He is an inspirational captain. When he talks with the squad he talks with a lot of sense. "The players have a lot of respect for him. It's an honour to be in the England side and an honour to play under him." England are under immense pressure following their poor start to the year and victory is vital if they are to rescue their Six Nations campaign. But Corry insists England are in the right frame of mind for the contest. "There is apprehension going into every game," he added. "But you have to use that fear and put it into a positive mindset. "When the whistle goes on Sunday, what has happened in the past does not count for anything. "We have not performed but if we put in a performance on Sunday then we can start turning results around. "There are a lot of changes taking place with England and we are at the start of something. We have not got off to the greatest of starts but you need to experience the bad the before you can fully appreciate the good." A trip to Lansdowne Road is daunting at any time, especially against an Ireland side that are flying high after two impressive wins. They are the form team of the tournament and are tipped to claim their first Grand Slam since 1948. But Corry is relishing the prospect of taking on the Irish in their own backyard. "They are full of confidence and are playing a great team game," he said. "The forwards are creating a great platform and they have explosive runners out wide. "If you look at the team on paper, they have stars from one to 15. It's a huge task but it is a great opportunity for us. "Lansdowne Road is a tremendous venue to play in and we have to use it to our advantage."


(after extra time score at 90 mins 1 1) John Arne Riise volleyed Liverpool ahead after 45 seconds but Steven Gerrard scored a 79th minute own goal. Blues boss Jose Mourinho was sent off for taunting Liverpool fans after the goal and he watched on television as his side went on to win the game. Drogba and Kezman scored from close range before Antonio Nunez's header made for a tense finale. It was an amazing climax which gave Mourinho his first silverware as Chelsea manager. Yet it was controversial too, after Mourinho's sending off, apparently for putting his finger to his lips to hush the Liverpool fans. There was no hushing them after the extraordinary opening in which the Reds took a stunning lead inside the first minute. Riise could not have connected any better with Morientes' cross as he smashed a left foot volley past Petr Cech. The goal, the quickest ever in a League Cup final, stunned a Blues side whose previously rock solid confidence had been shaken by consecutive losses to Newcastle and Barcelona in the previous week. The Blues' attacking chances were limited, and Jerzy Dudek was equal to Frank Lampard's powerfully struck drive and Drogba's low shot. Despite their frustration, Chelsea began to dominate midfield without seriously threatening to break Liverpool's well organised defence. Joe Cole had a shot blocked and a promising Damien Duff break was halted by a good tackle from Djimi Traore, but the Reds reached half time without any major scares. The Blues began the second half with more urgency and pegged Liverpool back. Nevertheless, Liverpool were living dangerously and they needed a fantastic double save from Dudek on 54 minutes, first at full stretch from Gudjohnsen's header, then to smother William Gallas' follow up. And despite Chelsea's possession, it was Liverpool who fashioned the next clear opportunity as Luis Garcia fed Dietmar Hamann whose shot forced a superb save from Cech. And the Blues' increasingly adventurous approach saw Liverpool earn another chance on the break on 75 minutes as Paulo Ferreira denied Gerrard with a last ditch tackle. But Gerrard was on the scoresheet minutes later in the most unfortunate fashion as he inadvertently deflected Ferrerira's free kick past his own keeper and in off the post to bring Chelsea level. That prompted Mourinho's reaction which saw him sent off, but Chelsea still pressed and Duff had a chance to win the game with seven minutes remaining. Dudek saved bravely at the Irishman's feet, while Milan Baros shot wildly at the other end to ensure extra time. Drogba almost headed Chelsea in front two minutes into extra time but the striker saw the ball rebound off the post. But seconds after the half time interval, Drogba made no mistake, picking the ball up from Glen Johnson's long throw inside the six yard box and sidefooting home. And Kezman appeared to have made the game safe as he netted from close range after Gudjohnsen's cross in the 110th minute. There was still drama as Nunez beat Cech to a high ball with six minutes remaining to head his side level, but despite Liverpool's desperate attacks, Chelsea clung on to win. Dudek, Finnan, Carragher, Hyypia, Traore (Biscan 67), Luis Garcia, Gerrard, Hamann, Riise, Kewell (Nunez 56), Morientes (Baros 74). Subs Not Used: Pellegrino, Carson. Hyypia, Traore, Hamann, Carragher. Riise 1, Nunez 113. Cech, Paulo Ferreira, Ricardo Carvalho, Terry, Gallas (Kezman 74), Jarosik (Gudjohnsen 45), Lampard, Makelele, Cole (Johnson 81), Drogba, Duff. Subs Not Used: Pidgeley, Tiago. Lampard, Kezman, Drogba, Duff. Gerrard 79 og, Drogba 107, Kezman 112. 78,000 S Bennett (Kent).


Analyst Bill Thompson has seen the future and it is in his son's hands. I bought my son Max a 3G phone, partly because they are so cheap and he needed a phone, and partly because I am supposed to know about the latest technology and thought I should see how they work in real life. After using it for a while I am not at all tempted to get rid of my SonyEricsson P800 smart phone. That has a relatively large screen, even if it does only have slower GPRS access to the network. I can read my e mail, surf the web using a proper browser and write stuff using the stylus on its touch screen. Last week someone e mailed me a document that had been compressed into a ZIP file, and I was pleasantly surprised to discover that my phone even knew how to decompress it for me. By contrast the confusing menus, complicated keyboard and truly irritating user interface of Max's 3G phone simply get in the way, and I did not see much value in the paid for services, especially the limited web access. The videos of entertainment news, horoscopes and the latest celebrity gossip did not appeal, and I did not see how the small screen could be useful for any sort of image, never mind micro TV. But then Max started playing, and I realised I was missing the point entirely. It is certainly not a great overall experience, but that is largely due to the poor menu system and the phone layout: the video content itself is compelling. The quality was at least as good as the video streaming from the BBC website, and the image is about the same size. Max was completely captivated, and I was intrigued to discover that I had nearly missed the next stage of the network revolution. It is easy to be dismissive of small screens, and indeed anyone of my generation, with failing eyesight and the view that 'there's never anything worth watching on TV', is hardly going to embrace these phones. But just as the World Wide Web was the "killer application" that drove internet adoption, music videos are going to drive 3G adoption. With Vodafone now pushing its own 3G service, and 3 already established in the UK, video on the phone is clearly going to become a must have for kids sitting on the school bus, adults waiting outside clubs and anyone who has time to kill and a group of friends to impress. This will please the network operators, who are looking for some revenue from their expensively acquired 3G licences. But it goes deeper than that: playing music videos on a phone marks the beginning of a move away from the 'download and play' model we have all accepted for our iPods and MP3 players. After all, why should I want to carry 60GB of music and pictures around with me in my pocket when I can simply listen to anything I want, whenever I want, streamed to my phone? Oh and of course you can always use the phone to make voice calls and send texts, something which ensures that it is always in someone's pocket or handbag, available for other uses too. I have never really approved of using the Internet Protocol (IP), to do either audio or video streaming, and I think that technically it is a disaster to make phone calls over the net using "voice over IP". But I have to acknowledge that the net, at least here in the developed Western countries, is fast and reliable enough to do both. I stream radio to my computer while I work, and enjoy hearing the bizarre stations from around the world that I can find online but nowhere else. I am even playing with internet telephony, despite my reservations, and I appear on Go Digital on the World Service, streamed over the web each week. But 3G networks have been designed to do this sort of streaming, both for voice and video, which gives them an edge over net based IP services. The 3G services aren't quite there yet, and there is a lot to be sorted out when it comes to web access and data charges. Vodafone will let you access its services on Vodafone Live! as part of your subscription cost but it makes you pay by the megabyte to download from other sites this one, for example. This will not matter to business users, but will distort the consumer market and keep people within the phone company's collection of partner sites, something that should perhaps be worrying telecoms regulator Ofcom. But we should not see these new phones simply as cut down network terminals. If I want fast access to my e mail I can get a 3G card for my laptop or hook up to a wireless network. The phone is a lot more, and it is as a combination of mini TV, personal communications device and music/video player that it really works. There is certainly room in the technology ecosystem for many different sorts of devices, accessing a wide range of services over different networks. 3G phones and iPods can co exist, at least for a while, but if I had to bet on the long term I would go for content on demand over carrying gigabytes in my pocket. Or perhaps some enterprising manufacturer will offer me both. An MP3G player, anyone? Bill Thompson is a regular commentator on the BBC World Service programme Go Digital.


A "taxpayer subsidised propaganda exercise" on the EU is being used to lull the British public into a false sense of security, say the Tories. Shadow foreign secretary Michael Ancram told MPs a new White Paper was part of trying to soften up opinion ahead of the referendum on the EU constitution. His claims were denied by Foreign Secretary Jack Straw, who accused the Tories of "running scared" of debate. EU cooperation would help get better UK immigration controls, he argued. Mr Straw used Thursday's Commons debate to launch the new White Paper on the prospects for the EU in 2005. Security, stability and prosperity would be the key themes when the UK took over the chairmanship of the EU in July, said Mr Straw. Africa and climate change would also feature highly. He said the UK was trying to ensure future EU budgets were limited to 1% of Europe's economic output and were spent "where it adds most value". Mr Straw promised to continue to ensure the UK's budget rebate, secured in 1984 by Margaret Thatcher, was "fully justified". "We, like all other countries, have a veto on any changes proposed in this area," he said. Mr Ancram condemned the document, which the Foreign Office says has cost about 2,500 to design, print and deliver. "Isn't the reason that the government is now involved in a taxpayer subsidised propaganda exercise to try to sell the new EU to the country in advance of the forthcoming referendum and general election?," he asked. The Tory spokesman also criticised the government for claiming the EU constitution would make Europe easier to understand. "The government, last week, had to publish a commentary of 500 pages to try and explain this 'easy and simple' constitution to the British people," he said. "Who are they trying to kid?" The proposed question for the constitution referendum is: "Should the United Kingdom approve the Treaty establishing a Constitution for the European Union?" The Electoral Commission on Thursday said it was satisfied the question was easy to understand. The government has suggested the referendum on the constitution could take place in spring 2006, with the Tories set to campaign for a "no" vote. Mr Ancram said ministers were prolonging uncertainty by putting the vote off until the latest date possible. The foreign secretary hit back by saying Tory attitudes to Europe had helped keep the party out of power for more than a decade. Mr Straw argued cooperation with European partners could bring a "level playing field" on immigration and asylum controls. "You are setting your face against all of these things," he added. For the Liberal Democrats, Sir Menzies Campbell said the UK should not ignore the need to reform the EU Common Agricultural Policy. Change was particularly important for developing countries wanting access to markets, he argued. Sir Menzies was among those worried about plans, backed by the UK, to lift the arms embargo imposed on China after the Tiananmen Square massacre. Mr Straw said no decisions had been taken Chinese human rights had improved but not by enough.


BT is offering customers free internet telephone calls if they sign up to broadband in December. The Christmas give away entitles customers to free telephone calls anywhere in the UK via the internet. Users will need to use BT's internet telephony software, known as BT Communicator, and have a microphone and speakers or headset on their PC. BT has launched the promotion to show off the potential of a broadband connection to customers. People wanting to take advantage of the offer will need to be a BT Together fixed line customer and will have to sign up to broadband online. The offer will be limited to the first 50,000 people who sign up and there are limitations the free calls do not include calls to mobiles, non geographical numbers such as 0870, premium numbers or international numbers. BT is keen to provide extra services to its broadband customers. "People already using BT Communicator have found it by far the most convenient way of making a call if they are at their PC," said Andrew Burke, director of value added services at BT Retail. As more homes get high speed access, providers are increasingly offering add ons such as cheap net calls. "Broadband and telephony are attractive to customers and BT wants to make sure it is in the first wave of services," said Ian Fogg, an analyst with Jupiter Research. "BT Communicator had a quiet launch in the summer and now BT is waving the flag a bit more for it," he added. BT has struggled to maintain its market share of broadband subscribers as more competitors enter the market. Reports say that BT has lost around 10% of market share over the last year, down from half of broadband users to less than 40%. BT is hoping its latest offer can persuade more people to jump on the broadband bandwagon. It currently has 1.3 million broadband subscribers.


Now that a critical mass of people have embraced digital TV, DVDs, and digital video recorders, the next revolution for TV is being prepared for our sets. In most corners of TV and technology industries, high definition (HDTV) is being heralded as the biggest thing to happen to the television since colour. HD essentially makes TV picture quality at least four times better than now. But there is real concern that people are not getting the right information about HD on the High Street. Thousands of flat panel screens LCDs (liquid crystal displays), plasma screens, and DLP rear projection TV sets have already been sold as "HD", but are in fact not able to display HD. "The UK is the largest display market in Europe," according to John Binks, director of GfK, which monitors global consumer markets. But, he added: "Of all the flat panel screens sold, just 1.3% in the UK are capable of getting high definition." There are 74 different devices that are being sold as HD but are not HD ready, according to Alexander Oudendijk, senior vice president of marketing for satellite giant Astra. They may be fantastic quality TVs, but many do not have adaptors in them called DVI or HDMI (High Definition Multimedia Interface) connectors which let the set handle the higher resolution digital images. Part of this is down to lack of understanding and training on the High Street, say industry experts, who gathered at Bafta in London for the 2nd European HDTV Summit last week. "We have to be careful about consumer confusion. There is a massive education process to go through," said Mr Binks. The industry already recognised that it would be a challenge to get the right information about it across to those of us who will be watching it. Eventually, that will be everyone. The BBC is currently developing plans to produce all its TV output to meet HDTV standards by 2010. Preparations for the analogue switch off are already underway in some areas, and programmes are being filmed with HD cameras. BSkyB plans to ship its first generation set top boxes, to receive HDTV broadcasts, in time for Christmas. Like its Sky boxes, they will also be personal video recorders (PVRs). The company will start broadcasts of HDTV programmes, offering them as "premium channel packages", concentrating, to start with, on sports, big events, and films, in early 2006. But the set top box which receives HDTV broadcasts has to plug into a display TV set that can show the images at the much higher resolution that HD demands, if HDTV is to be "real". By 2010, 20% of homes in the UK will have some sort of TV set or display that can show HD in its full glory. But it is all getting rather confusing for people who have only just taken to "being digital". As a result, all the key players, those who make flat panel displays, as well as the satellite companies and broadcasters, formed a HD forum in 2004 to make sure they were all talking to each other. Part of the forum has been concerned with issues like industry standards and content protection. But it has also been preoccupied with how to help the paying public know exactly what they are paying for. From next month, all devices that have the right connectors and resolution required will carry a "HD Ready" sticker. This also means they are equipped to cope with both analogue and HDTV signals, and so comply with the minimum specification set out by the industry. "The logo is absolutely the way forward," said David Mercer, analysts with Strategy Analytics. "But it is still not appearing on many retail products." The industry is upbeat that the sticker will help, but it is only a start. "We can only do so much with the position we are in today with manufacturers," said Mr Oudendijk. "There may well be a number of dissatisfied customers in the next few months." The European Broadcast Union (EBU) is testing different flavours of HD formats to prepare for even better HDTV further down the line. It is similarly concerned that people get the right information on HDTV formats, as well as which devices will support the formats. "We believe consumers buying expensive displays need to ensure their investment is worthwhile," said Phil Laven, technical director for the EBU. The TV display manufacturers want us to watch HD on screens that are at least 42in (106cm), to get the "true impact" of HD, they say, although smaller displays suffice. What may convince people to spend money on HD ready devices is the falling prices, which continue to tumble across Europe. The prices are dropping an average of 20% every year, according to analysts. LCD prices dropped by 43% in Europe as a whole last year, according to Mr Oudendijk.


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


Three senior executives of Ireland's state owned airline, Aer Lingus, are set to leave early on 28 January after accusations of a conflict of interest. The trio are chief executive Willie Walsh, chief financial officer Brian Dunne and chief operations officer Seamus Kearney. The three have refused to confirm reports they plan to launch a private airline in competition with Aer Lingus. They announced in November they would quit in May, but did not give a reason. That decision had followed an announcement by Irish Prime Minister Bertie Ahern who is still considering the future of the airline which ruled out a proposed management buy out of Aer Lingus. Mr Walsh denied they had been forced out early because of the reports claiming they were set to launch a competitor airline. "What I do after I leave Aer Lingus is still too early to say," Mr Walsh told AP news agency on Wednesday. "I have opportunities open to me. Brian and Seamus are in the equally fortunate position." He said he had received more than 40 business proposals, mostly aviation related, since the trio announced their resignations two months ago. Mr Walsh said there was no conflict of interest, and, if he was to launch a rival airline or join an existing competitor, "this thing happens in every business". "There's absolutely no question of a conflict of interest. I've been completely focused on my responsibilities at Aer Lingus," he told AP. This week opposition politicians had called on the Irish government to make an urgent decision on the future of the airline. On Wednesday Irish Transport Minister Martin Cullen said in a statement: "A conflict of interest cannot, should not and will not be allowed to arise between their current roles at Aer Lingus and their future career intentions." Last Friday the minister had announced he was to advertise for three senior executives for Aer Lingus. Mr Walsh, who took charge in 2000, and his team have earned praise for turning Aer Lingus around, by cutting air fares and staff, and re positioning it as a low fare airline to rival Ryanair. The company is 85% owned by the government and 15% by its staff.


Faster, better or funkier hardware alone is not going to help phone firms sell more handsets, research suggests. Instead, phone firms keen to get more out of their customers should not just be pushing the technology for its own sake. Consumers are far more interested in how handsets fit in with their lifestyle than they are in screen size, onboard memory or the chip inside, shows an in depth study by telecommunications company Ericsson. "Historically in the industry there has been too much focus on using technology," said Dr Michael Bjorn, senior advisor on mobile media at Ericsson's consumer and enterprise lab. "We have to stop saying that these technologies will change their lives," he said. "We should try to speak to consumers in their own language and help them see how it fits in with what they are doing," he told the BBC News website. For the study, Ericsson interviewed 14,000 mobile phone owners on the ways they use their phone. "People's habits remain the same," said Dr Bjorn. "They just move the activity into the mobile phone as it's a much more convenient way to do it." One good example of this was diary writing among younger people, he said. While diaries have always been popular, a mobile phone especially one equipped with a camera helps them keep it in a different form. Youngsters' use of text messages also reflects their desire to chat and keep in contact with friends and again just lets them do it in a slightly changed way. Dr Bjorn said that although consumers do what they always did but use a phone to do it, the sheer variety of what the new handset technologies make possible does gradually drive new habits and lifestyles. Ericsson's research has shown that consumers divide into different "tribes" that use phones in different ways. Dr Bjorn said groups dubbed "pioneers" and "materialists" were most interested in trying new things and were behind the start of many trends in phone use. "For instance," he said, "older people are using SMS much more than they did five years ago." This was because younger users, often the children of ageing mobile owners, encouraged older people to try it so they could keep in touch. Another factor governing the speed of change in mobile phone use was the simple speed with which new devices are bought by pioneers and materialists. Only when about 25% of people have handsets with new innovations on them, such as cameras, can consumers stop worrying that if they send a picture message the person at the other end will be able to see it. Once this significant number of users is passed, use of new innovations tends to take off. Dr Bjorn said that early reports of camera phone usage in Japan seemed to imply that the innovation was going to be a flop. However, he said, now 45% of the Japanese people Ericsson questioned use their camera phone at least once a month. In 2003 the figure was 29%. Similarly, across Europe the numbers of people taking snaps with cameras is starting to rise. In 2003 only 4% of the people in the UK took a phonecam snap at least once a month. Now the figure is 14%. Similar rises have been seen in many other European nations. Dr Bjorn said that people also used their camera phones in very different ways to film and even digital cameras. "Usage patterns for digital cameras are almost exactly replacing usage patterns for analogue cameras," he said. Digital cameras tend to be used on significant events such as weddings, holidays and birthdays. By contrast, he said, camera phones were being used much more to capture a moment and were being woven into everyday life.


The US looks set for a continued boost to interest rates in 2005, according to the Federal Reserve. Minutes of the December meeting which pushed rates up to 2.25% showed that policy makers at the Fed are worried about accelerating inflation. The clear signal pushed the dollar up to 1.3270 to the euro by 0400 GMT on Wednesday, but depressed US shares. "The markets are starting to fear a more aggressive Fed in 2005," said Richard Yamarone of Argus Research. The Dow Jones index dropped almost 100 points on Tuesday, with the Nasdaq also falling as key tech stocks were hit by broker downgrades. The dollar also gained ground against sterling on Tuesday, reaching 1.8832 to the pound before slipping slightly on Wednesday morning. The release of the minutes just three weeks after the 14 December meeting was much faster than usual, indicating the Fed wants to keep markets more apprised of its thinking. This, too, is being taken in some quarters as a sign of aggressive moves on interest rates to come. The key Fed funds rate has risen 1.25 percentage points during 2004 from the 46 year low of 1% reached not long after the 9/11 attacks in 2001. That long trough "might be contributing to signs of potentially excessive risk taking in financial markets", said the Federal Open Markets Committee (FOMC), which sets interest rates. The odds now favour a further boost to rates at the next meeting in early February, economists said. But the respite for the dollar, which spent late 2003 being pushed lower against other major currencies by worries about massive US trade and budget deficits, may be short lived. "You can't rule out a further correction... but we don't think it's a change in direction in the dollar," said Jason Daw at Merrill Lynch. "Nothing fundamental has changed."


Former government communications chief Alastair Campbell will act as a media consultant to Sir Clive Woodward's 2005 Lions on their tour to New Zealand. Campbell, who left Downing Street earlier this year, will advise on media strategy before and during the tour. "I hope I can contribute to the planning and preparation, and to ensuring the media and public get the most out of the tour itself," he said. "I am also looking forward to going out for the later stages of the tour." Woodward's decision to call in Prime Minister Tony Blair's former spin doctor springs from the deterioration in media relations on the last Lions tour of Australia in 2001, when New Zealander Graham Henry was the head coach. The furore surrounding the newspaper diaries of Matt Dawson and Austin Healey was compounded by other disillusioned players venting their frustration through the media. "The Lions is a massive media event," said Woodward, who will be the head coach. "There will be a huge level of interest from the travelling media, the fans that will go out in their thousands and the New Zealand public. "We need to have the strategy and processes in place to deal with the pressures that will bring. " Alastair will act as an advisor both in the build up to and on the tour itself. His role is to work closely with not only myself but (tour manager) Bill Beaumont, (media manager) Louisa Cheetham and (team manager) Louise Ramsay." Campbell is due to resume working for the government in the new year in the build up to an anticipated May general election. The Lions leave for New Zealand on 24 May, with the first Test match against the All Blacks in Christchurch on 25 June.


Shops all over the UK reported strong sales on the last Saturday before Christmas with some claiming record breaking numbers of festive shoppers. A spokesman for Manchester's Trafford Centre said it was "the biggest Christmas to date" with sales up 5%. And the Regent Street Association said shops in central London were also expecting the "best Christmas ever". That picture comes despite reports of disappointing festive sales in the last couple of weeks. The Trafford Centre spokeswoman said about 8,500 thousand vehicles had arrived at the centre on Saturday before 1130 GMT. "We predict that the next week will continue the same trend," she added. It was a similar story at Bluewater in Kent. Spokesman Alan Jones said he expected 150,000 shoppers to have visited by the end of Saturday and a further 100,000 on Sunday. "Our sales so far have been 2% up on the same time last year," he said. "We're very busy, it's really strong and people will be shopping right up until Christmas. "Over the Christmas period we're expecting people to spend in excess of 200m at the centre." On Saturday afternoon, a spokeswoman for the St David's Shopping Centre in Cardiff said it looked like being its busiest day of the year with about 200,000 shoppers expected to have visited by the close of play. At the St Enoch's Shopping Centre in Glasgow, more than 140,000 shoppers an all time record were expected to have passed through the doors by its closing time of 1900 GMT. Senior business manager Jon Walton said: "It has been phenomenal absolutely mobbed. "Every week footfall has been showing strong growth and at the weekends it has been going mad." Regent Street Association director Annie Walker said on Saturday: "The stores were heaving today and a lot of people are going to be doing last minute shopping as many people finished work on Friday and can go in the week." She said reports of a slump in pre Christmas sales were related to the growing popularity of internet sales. "I do think this has had a lot to do with reports of lower sales figures," she said. "Internet shopping has gone up enormously and not all stores have websites."


Australian winemaker Southcorp has rejected a takeover offer worth 3.1bn Australian dollars ( 2.3bn; 1.8bn) from brewing giant Foster's Group. Southcorp, whose brands include Penfolds, Rosemount and Lindemans, dismissed the offer as inadequate. The two companies held four days of talks after Foster's bought an 18.8% stake in Southcorp on 13 January. A merger would create a global player with worldwide annual sales of 39m cases and revenues of A 2.6bn. Southcorp said Foster's A 4.17 a share takeover proposal offered a "excellent strategic fit" but undervalued the company. "Southcorp's board has informed Foster's that it is not prepared to recommend the offer as it does not adequately reflect the strategic value of the company," said Southcorp chairman Brian Finn. Southcorp said Foster's takeover offer was "opportunistic". However, it said that the offer may represent an 'opening bid', opening up the possibility of Foster's returning with an improved offer. Foster's said a combination of the two companies would create a global player with an "unrivalled" collection of premium wine brands. Despite being best known for brewing Foster's Lager, Foster's is already one of Australia's largest wine producers, owning the Beringer and Wolf Blass brands among others. "The combination of Foster's and Southcorp will transform the global wine industry and significantly enhance Australia's competitive position on the global stage," said Trevor O'Hoy, Foster's chief executive officer. Foster's spent A 584m on buying an 18.8% stake in Southcorp from the Oatley family, which founded the Rosemount Estates business and later merged it into Southcorp. Shares in both companies were suspended while the two held talks about a deal. Southcorp's shares rose 12% to A 4.76 on news of the offer but Foster's shares fell 3.7% to A 5.44.


Sprinters Kostas Kenteris and Katerina Thanou have been cleared of doping offences by an independent tribunal. The duo had been provisionally suspended by the IAAF for allegedly missing three drugs tests, including one on the eve of the Athens Olympics. But the Greek Athletics Federation tribunal has overturned the bans a decision which the IAAF can now contest at the Court of Arbitration for Sport. The pair's former coach, Christos Tzekos, has been banned for four years. Kenteris, 31, and Thanou, 30, had been charged with avoiding drug tests in Tel Aviv, Chicago and Athens and failing to notify anti doping officials of their whereabouts before the Olympics. They withdrew from the Olympics after missing a drugs test at the Olympic Village on 12 August. The pair then spent four days in a hospital, claiming they had been injured in a motorcycle crash. It was the International Olympic Committee's demand that the IAAF investigate the affair that led to the hearing of the Greek tribunal. The head of that tribunal, Kostas Panagopoulos, said it had not been proven that the athletes refused to take the test in Athens. "The charge cannot be substantiated," he said. "In no way was he (Kenteris) informed to appear for a doping test. The same goes for Thanou." Kenteris's lawyer, Gregory Ioannidis, said: "The decision means Mr Kenteris has been exonerated of highly damaging and unfounded charges which have been extremely harmful for his career. "He has consistently maintained his innocence and this was substantiated by further evidence we were able to submit to the tribunal following its deliberations in January. "This evidence shows Mr Kenteris was never asked to submit to a test by the International Olympic Committee so he could not possibly have been guilty of deliberately avoiding one. It shows he has no case to answer. "Mr Kenteris should now be given the opportunity he deserves to rebuild his career in the full knowledge that there is no stain on his character. "He has suffered greatly throughout this ordeal that has exposed both himself and his family to enormous pressures." But the IAAF said it was "very surprised" by the verdict. Spokesman Nick Davies said: "We note the decision of the Greek authorities with interest. "Our doping review board will now consider the English version of the decision."


The Japanese government has forecast that the country's economic growth will slow to 1.6% in the next fiscal year starting in April 2005. While it predicts this fall from the current 2.1% level, it said it was making progress on ending deflation. The figures were given by economics minister Heizo Takenaka who said the economy would grow by 2% in 2006/07. He said the consumer price index (CPI) would rise 0.1% in the next fiscal year, the first gain since 2000/01. "We are attempting to make real economic conditions better and to overcome deflation. I think we are on track," said Mr Takenaka. Deflation or falling consumer prices has plagued Japan for more than five years. To ease the problem the Bank of Japan has regularly flooded the money market with excess cash to keep short term interest rates at 0% in an attempt to spur economic activity.


Beyond the desperate security situation in Iraq lies an economy in tatters. A vicious cycle of unemployment, poor social services and poverty has been made worse by a lack of investment. So there is much hope that an elected government will break the deadlock. "First rule of law, then the economy," says Radwan Hadi, deputy managing director of Aberdeen based oil and gas consultancy Blackwatch Petroleum Services, which entered Iraq in 2003. Mr Hadi's view about what the new government's priorities should be is shared by many Iraqis. The economy has become the second most dominant issue for many political parties ahead of Sunday's election, according to Bristol University political scientist Anne Alexander, who is working on a project that looks at governance and security in post war Iraq. Job creation ranks high both on election manifestos and on the Iraqi people's wish list. Nobody knows exactly how many Iraqis are out of work, but it is clear that the situation is dire. "Estimates of Iraq's unemployment rate vary, but we estimate it to be between 30 40%," the Washington based independent think tank The Brookings Institution says in its Iraq Index. But some progress has been made, largely thanks to the country's oil revenues which have exceeded 22bn since June 2003. Iraq's infrastructure is on the mend, with notable improvements having been made in areas such as electricity supply, irrigation, telephone networks and the re opening of hospitals. But serious problems remain and the growing divide between haves and have nots is angering voters. One Iraqi woman told Ms Alexander about her frustration as she watched TV adverts for private hospitals soon after having failed to track down basic medicines from Baghdad's pharmacies. Observes Mr Hadi: "The economy at present marks a big divide; the rich get richer, the poor get poorer." An indication of this can be seen in the world of finance where, in contrast with the daily plight of ordinary people, 19 private banks operate, only one of which is run in accordance with Islamic banking principles. Hopes are high for the future of finance, so foreign banks have been buying into the sector. National Bank of Kuwait has bought a majority stake in Credit Bank of Iraq, the Jordanian investment bank Export Finance Bank has bought 49% of National Bank of Iraq. Foreign firms also hope to cash in on the reconstruction effort. Bechtel's efforts to rebuild schools and restore power have attracted controversy as well as boosting its bottom line while Halliburton has enjoyed a wealth of military contracts. But the involvement of foreign firms in the health and banking sectors and beyond sits uneasily with many Iraqis who are accustomed to the state taking responsibility for functions that are essential to making society work, observes Ms Alexander. "It is seen as a selling off of Iraq's assets and bringing in multinationals at the expense of Iraqi businesses and Iraqi workers," she says. Consequently, the transitional government has been forced to backtrack in recent months over its proposal to allow 100% foreign ownership of Iraqi assets, she explains. In the West, it is easy to forget that the otherwise brutal Baathist regime used to look after the majority of Iraq's citizens rather well in terms of job creation, social security and healthcare. Opinion polls suggest that "people still want the state to take a leading role in providing these things", Ms Alexander says. Yet in some areas of the economy, investment from abroad is still warmly welcomed, insists Mr Hadi, an Iraqi who left the country three decades ago. "I think the private sector will evolve incredibly fast," Mr Hadi says. "Iraq's vast natural resources can support any magnitude of economic growth." Many foreign companies say they are keen to get in on the act, yet few are actually entering the country in any meaningful way. But there are exceptions. Mr Hadi's Blackwatch is just one of many small operators preparing for a much bigger future. Blackwatch's Baghdad based affiliate Falcon Group has dozens of people working for it across the country in Kirkuk and Baghdad, and its engineers and geo scientists work with the Iraqi oil ministry to hammer out technology transfer issues, Mr Hadi points out. "These guys are trying to work. The Iraqi business people will do business at all times. "Life goes on in Iraq, the people take responsibility, they want to live normal lives."


In a locked room at the heart of Parliament there is a hive of scandal. Sex, betrayal and custody of children are all there in this affair but this time it has nothing to do with the recent troubles of David Blunkett or Boris Johnson. Few realise that Westminster in effect has its own divorce den. For sprinkled among 12 floors of archives are blow by blow accounts of marital break ups and now you can search what's there online. Until 1857, the only way in England to get a full divorce which allowed re marriage was to obtain an Act of Parliament by proving adultery or life threatening cruelty. The legacy is pages of testimonies used in the hearings, dating back to 1670, all recorded among the 325,000 items which fill the 12 floors of the parliamentary archives in Parliament's Victoria Tower. Most people researching their family history want to discover some tale of illicit love. This gives them the chance. Divorce by Parliament was an expensive process open really only to the rich but the records also include the testimony of maids, butlers and coachmen about their masters and mistresses. Among the records is the story of Jane Campbell, the first woman ever to divorce her husband. That happened in 1801 after she had discovered her husband, Edward Addison, had committed adultery with her sister Jessy. A transcript of evidence from Jessy's maid, Amelia Laugher, shows her telling how Addison frequently passed by her on the way to the room where she had just put her mistress naked to bed. It must have been a killer blow to Addison's case he had already fled abroad rather than pay the 5,000 damages ordered by a civil court. As well as making divorce history, Jane Campbell won custody of her children unusual for a woman at the time. But divorces are by no means the only documents in the archives which hold personal details of people often far removed from politics and Parliament. There are the protestation returns from 1642 lists of the Protestants who pledged to "maintain the true reformed Protestant religion". There are details of foreign nationals made British citizens by act of Parliament, including composer George Frideric Handel in 1727. And the mass of private bills which, for example authorise the building of railways and roads, contain both the names and addresses of those involved and testimonies giving people a unique perspective on how their ancestors opposed them. Tax bills may be an extra source for pedigree hunters the longest stretches for about 300m and is longer than the Palace of Westminster itself, listing the names of appointed tax collectors. This wealth of material has long been open to the public at the House of Lords Record Office, with visitors able to phone ahead when they want to view particular items in the search room. But now five years of work has produced an online catalogue. David Prior, assistant clerk of the archives, says the catalogue opens up new possibilities for research. "Before, you just could not do it, you faced trawling through pages and pages of printed material," he says. Mr Prior sees the changes as part of a wider revolution in archives generally. "The archive profession may look fairly staid but is in an enormous period of change, mainly motivated by the potential of IT, which is opening up all sorts of vistas for us," he says. The archives do, of course, hold records of high (and low) politics too for both Houses of Parliament, including copies of all acts passed since 1497 the oldest dealing with the employment of workers in the woollen industry in Norfolk. Records for the Commons only date back to 1834 anything earlier was wiped out by the fire which destroyed most of the Parliament buildings in 1834. But that still leaves some of the most important documents of UK political history parts of the Bill of Rights from 1689, the death warrant for Charles I, the private papers and diaries of major politicians such as David Lloyd George and Andrew Bonar Law. There is also the 1606 act establishing 5 November as a thanksgiving day the year after the Gunpowder Plot. That document is likely to feature in the exhibition the archives will put on next year as part of a series of events across London to mark the 400th anniversary of Guy Fawkes' conspiracy. As Mr Prior remarks as we walk by shelf after shelf of vellum (parchment made from goat's skin): "All human life is here."


Spectators were evacuated from Real Madrid's Bernabeu stadium on Sunday following a bomb scare during the game between the hosts and Real Sociedad. More than 70,000 people abandoned the ground with the score at 1 1 and only three minutes left to play. The Basque newspaper Gara apparently received a telephone call saying a bomb was due to explode at 2100 local time. But after searching the stadium with sniffer dogs, the police said that no explosive device had been found. "The police have said they have completed their search and have not found anything," said Real Madrid president Florentino Perez. "The best thing we can all do now is to put this nightmare behind us." Madrid midfielder Guti told private Spanish radio station Cadena Ser: "I have never seen this before and sport should be above it all." Real took the lead just before the break when Brazilian striker Ronaldo cracked home with his left foot. Sociedad levelled the match midway through the second half when Turkish striker Nihat Kahveci smashed home with an acrobatic finish. It is not yet clear if the remaining three minutes of the game will be played at a later date or if the result will be allowed to stand. If the result remains at 1 1, Real will drop to third place in the standings, 11 points behind leaders Barcelona, who snatched a late 2 1 win at Albacete on Saturday. Initial reports suggested the Basque separatist group ETA may be responsible for the bomb threat after issuing similar warnings before a series of small explosions in recent days. The Bernabeu was targeted by ETA on 1 May, 2002, when Madrid were about to play FC Barcelona in a Champions League semi final. A car bomb exploded in a street outside the stadium and 17 people were slightly injured.


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


British Airways is to halt its flights from London Heathrow to Jeddah and Riyadh in Saudi Arabia from 27 March. The airline said the decision was a commercial one due to reduced passenger demand for the services. BA currently operates four flights per week from Heathrow to Jeddah, and three weekly journeys to Riyadh. It suspended flights to Saudi Arabia for three weeks in autumn 2003 after a government warning about a "threat to UK aviation interests in Saudi Arabia". BA will now suspend the Saudi flights which it says will remain "under constant review" from 27 March. "The decision to suspend flights between the UK and Saudi Arabia is a difficult one to make as we have enjoyed a long history of flying between the two countries," said BA director of commercial planning, Robert Boyle. "However, the routes don't currently make a profitable contribution to our business and we are unable to sustain them while this remains the case." Passengers with flights booked after the suspension date will be contacted by BA for alternative arrangements to be made.


The Liberal Democrats are promising to raise the stamp duty threshold if they win the general election, in a bid to court first time house buyers. Vince Cable, the party's Treasury spokesman, said raising the threshold to 150,000 would prevent over 400,000 home buyers from paying the tax. He said first time buyers were being "squeezed out" of the housing market. The Labour party said the Liberal Democrats needed to explain how they would pay for the plan. The plan forms part of a wider Lib Dems policy to encourage first time buyers and those on lower incomes into the market. Under the proposals, the average saving for a new buyer would be more than 1,000, according to Mr Cable. "First time buyers are being squeezed out of the housing market not only by higher house prices but also by being swept into the stamp duty net," he said. "By failing to uprate the stamp duty threshold Gordon Brown has hit first time buyers and those on low incomes the hardest. "By pledging to increase the threshold to 150,000, the Liberal Democrats will make it possible for many first time buyers to buy a property without facing this tax." Paul Boateng MP, Labour's Chief Secretary to the Treasury, said: "The Lib Dems' sums don't add up. "They can have no credibility until they can say how they would fund their ever growing list of tax and spending commitments." Mr Cable will publish his "Alternative Budget" on Monday.


Gordon Brown has criticised a union leader who said conflict between himself and Tony Blair was harming the workings of government. Jonathan Baume, of the top civil servants' union, spoke of "competing agendas" between Mr Brown and Mr Blair. But the chancellor said Mr Baume was never at meetings between himself and the prime minister so could not judge. He said the union leader was trying to block civil service reform which threatened his members' jobs. It suited the purpose of Mr Baume's union, the First Division Association, to suggest there were two agendas battling against each other because the union was trying to resist the planned reforms, Mr Brown told BBC Radio 4's Today programme. Under the plans, unveiled in the Gershon report, some 84,000 civil servants jobs will be axed or changed and the savings ploughed back into frontline services. Mr Brown said: "To be honest I don't think you can rely on his Mr Baume's judgement on this matter when it comes to the decisions that the government are making. "Mr Blair and I are making exactly the same decisions on civil service reforms. We are determined to go on with the Gershon reforms." He also said that as Mr Baume was never present at meetings between himself and the prime minister, he was not in a position to judge. On Wednesday, ahead of the Chancellor's pre Budget report, Mr Baume told BBC News there were sometimes "conflicting and competing agendas for government" between Number 10 and the Treasury. What the chancellor wanted was "not by any means what Alan Milburn and the prime minister want to see", Mr Baume said. "Government departments get their money from the Treasury on the basis of public service agreements they sign up to, but at the same time the prime minister also has an agenda and that's not necessarily the same as the Treasury's and the prime minister is of course a very powerful figure in any government. "He also sends instructions and messages and directions to departments about how he would like each secretary of state and each department to implement a policy agenda. "The problem is that on many occasions these two don't add up and individual cabinet ministers as well as departments have to make sense of this battle." Number 10 said ministers were interested in governing and not a "soap opera" about Mr Blair and Mr Brown. Tory shadow chancellor Oliver Letwin said: "The battle Royal that the top civil servants are now reporting on between the chancellor and Tony Blair is preventing them both from getting on with the business of getting taxpayers value for money."


Gadgets are cheaper, smaller and more common than ever. But that just means we are more likely to lose them. In London alone over the past six months more than 63,000 mobile phones have been left in the back of black cabs, according to a survey. That works out at about three phones per cab. Over the same period almost 5,000 laptops and 5,800 PDAs such as Palms and Pocket PCs were left in licensed cabs. Even the great and good are not immune to losing their beloved gadgets. Jemima Khan reportedly left her iPod, phone and purse in a cab and asked for them to be returned to her friend who turned out to be Hugh Grant. As the popularity of portable gadgets has grown, and we trust more of our lives to them, we seem to be forgetting them in ever larger numbers. The numbers of lost laptops has leapt by 71% in the last three years. This has left Londoners, or those travelling by cab in the capital, as the world's best at losing laptops, according to the research by the Licensed Taxi Drivers Association and Pointsec, a mobile data backup firm. More than twice as many laptops were left in the back of black cabs in London as in any of the nine other cities (Helsinki, Oslo, Munich, Paris, Stockholm, Copenhagen, Chicago and Sydney) where the research into lost and found gadgets was carried out. By contrast Danes were most adept at losing mobile phones being seven times more likely to leave it behind in a cab than travellers in Germans, Norwegians and Swedes. Top of the range phones can carry enormous amounts of data enough to hold hundreds of pictures or thousands of contact details. Given that few people back up the data on their PC it is a fair bet that even fewer do so with the phone they carry around. You could be losing a fair chunk of your life in the back of that cab not least because many people collect numbers on their phone that they do not have anywhere else. Equally, phones let you navigate through contacts by name so many people have completely forgotten their friends' numbers and could not reconstruct them if they had to. This growing habit of losing gadgets explains the rise of firms such as Retrofone which lets people buy a cheap old fashioned phone to replace the tiny, shiny expensive one they have just lost. Briton's growing love of phones has also led to the creation of the Mobile Equipment National Database that lets you register the unique ID number of your phone so it can be returned to you in the event of it being lost or stolen. According to statistics 50% of all muggings and snatch theft offences involve mobiles. Millions of gadgets are now logged in the database and organisations such as Transport For London regularly consult it when trying to re unite folk with their phones and other gadgets. For the drivers, finding a mobile in the back of their cab is one of the more pleasant things many have found. The survey of what else has been left behind included a harp, a dog, a hamster and a baby.


South Korea's largest credit card firm has averted liquidation following a one trillion won ( 960m; 499m) bail out. LG Card had been threatened with collapse because of its huge debts but the firm's creditors and its former parent have stepped in to rescue it. A consortium of creditors and LG Group, a family owned conglomerate, have each put up 480m to stabilise the firm. LG Card has seven million customers and its collapse would have sent shockwaves through the country's economy. The firm's creditors which own 99% of LG Card have been trying to agree a deal to secure its future for several weeks. They took control of the company in January when it avoided bankruptcy only through a 4.5bn bail out. They had threatened to delist the company, a move which would have triggered massive debt redemptions and forced the company into bankruptcy, unless agreement was reached on its future funding. "LG Card will not need any more financial aid after this," Laah Chong gyu, executive director of Korea Development Bank one of the firm's creditors said. The agreement will see some 12 trillion won of debt converted into equity. "The purpose of the capital injection is to avoid delisting and the goal will be met," David Kim, an analyst at Sejong Securities, told Reuters. South Korea's consumer credit market has been slowly recovering from a crisis in 2002 when a credit bubble burst and millions of consumers fell behind on their debt repayments. LG Card returned to profit in September but needed further capital to avoid being thrown off the market. South Korea's stock exchange can delist any firm if its debt exceeds its assets two years running.


Wales coach Mike Ruddock has made two changes from the team that beat Italy 38 8 for Saturday's trip to France. Kevin Morgan takes over from his injured Newport Gwent Dragons colleague Hal Luscombe on the right wing. And in the pack Neath Swansea Ospreys forward Ryan Jones is preferred at blindside flanker to Jonathan Thomas. Thomas, a try scorer in Rome, drops down to the bench instead of Ian Gough, while Cardiff back Rhys Williams steps up in place of Morgan. Luscombe is sidelined by a hamstring problem sustained during the Six Nations game against Italy last weekend. However, the experienced and in form Morgan was already pushing hard for a start at Stade de France. "Due to his impressive performances from the bench, Kevin was very much in the selection mix anyway, and the unfortunate injury to Hal gives him the chance to start," said Ruddock. "Now that Ryan Jones has recovered from injury, we have increased the options in the back row. "Jonathan Thomas is unlucky to lose his spot after performing well against Italy and scoring a try, but such is the competition for places that every position is debated in detail. "For this particular game, we felt we might not always be afforded the open spaces out wide we were able to exploit against Italy, so an extra big ball carrier in the back row is thought to be necessary on this occasion. "Obviously, it's a 22 man game these days, and there is every chance that Jonathan will be making an impact from the bench." Wales have beaten France on two of their last three visits to Paris, and another victory this time around would keep them firmly on course for a first Five or Six Nations title triumph since 1994. "Graham Henry (former Wales coach) said a couple of years ago that we should 'be bold' when going to France, and he was proved right," said Ruddock. "That is a great way to approach the game, and something we will further endorse with the players this week." G Thomas (Toulouse, capt); K Morgan (Newport Gwent), T Shanklin (Cardiff), G Henson (Neath Swansea), S Williams (Neath Swansea); S Jones (Clermont Auvergne), D Peel (Llanelli); G Jenkins (Cardiff), M Davies (Gloucester), A Jones; (Neath Swansea), B Cockbain (Neath Swansea), R Sidoli (Cardiff); R Jones (Neath Swansea), M Williams (Cardiff), M Owen (Newport Gwent). Replacements: R McBryde (Llanelli), J Yapp (Cardiff), J Thomas (Neath Swansea), R Sowden Taylor (Cardiff), G Cooper (Newport Gwent), C Sweeney Newport Gwent), R Williams (Cardiff).


T Mobile has launched its latest "pocket office" third generation (3G) device which also has built in wi fi high speed wireless net access. Unlike other devices where the user has to check which high speed network is available to transfer data, the device selects the fastest one itself. The MDA IV, released in the summer, is an upgrade to the company's existing smartphone, the 2.5G/wi fi MDA III. It reflects the push by mobile firms for devices that are like mini laptops. The device has a display that can be swivelled and angled so it can be used like a small computer, or as a conventional clamshell phone. The Microsoft Mobile phone, with two cameras and a Qwerty keyboard, reflects the design of similar all in one models released this year, such as Motorola's MPx. "One in five European workers are already mobile meaning they spend significant time travelling and out of the office," Rene Obermann, T Mobile's chief executive, told a press conference at the 3GSM trade show in Cannes. He added: "What they need is their office when they are out of the office." T Mobile said it was seeing increasing take up for what it calls "Office in a Pocket" devices, with 100,000 MDAs sold in Europe already. In response to demand, T Mobile also said it would be adding the latest phone shaped Blackberry to its mobile range. Reflecting the growing need to be connected outside the office, it announced it would introduce a flat fee 20 ( 38) a month wi fi tariff for people in the UK using its wi fi hotspots. It said it would nearly double the number of its hotspots places where wi fi access is available globally from 12,300 to 20,000. It also announced it was installing high speed wi fi on certain train services, such as the UK's London to Brighton service, to provide commuters a fast net connection too. The service, which has been developed with Southern trains, Nomad Digital (who provide the technology), begins with a free trial on 16 trains on the route from early March to the end of April. A full service is set to follow in the summer. Wi fi access points will be connected to a Wimax wireless network faster than wi fi running alongside the train tracks. Brian McBride, managing director of T Mobile in the UK, said: "We see a growing trend for business users needing to access e mail securely on the move. "We are able to offer this by maintaining a constant data session for the entire journey." He said this was something other similar in train wi fi services, such as that offered on GNER trains, did not offer yet. Mr Obermann added that the mobile industry in general was still growing, with many more opportunities for more services which would bear fruit for mobile companies in future. Thousands of mobile industry experts are gathered in Cannes, France, for the 3GSM which runs from 14 to 17 February.


The real danger is not what happens to your data as it crosses the net, argues analyst Bill Thompson. It is what happens when it arrives at the other end. The Financial Services Authority has warned banks and other financial institutions that members of criminal gangs may be applying for jobs which give them access to confidential customer data. The fear is not that they will steal money from our bank accounts but that they will instead steal something far more valuable in our digital society our identities. Armed with the personal details that a bank holds, plus a fake letter or two, it is apparently easy to get a loan, open a bank account with an overdraft or get a credit card in someone else's name. And it is then a simple matter to move the money into another account and leave the unwitting victim to sort out the mess when statements and demands for payment start arriving. Identity theft is an increasingly significant economic crime, and we are all becoming more aware of the dangers of leaving bills, receipts and bank statements unshredded in our rubbish. But, however careful you may be, if the organisations you trust with your personal data, bank accounts and credit cards are not able to look after their databases properly then you are in trouble. It is surprising that it has taken the gangs so long to realise that a well placed insider is by far the simplest way to break the security of a computer system. In fact, I suspect that the FSA is probably very late to this particular party and that this sort of thing has been going on for rather a long time. Has anyone checked Bob Cratchit's family links to the criminal underworld, I wonder? And it is hardly likely to be only banks that are being targeted. Health authorities, government agencies and of course the big e commerce sites like Amazon must also offer rich pickings for the fraudsters. The good news is that better auditing is likely to catch out those who access account details that they are not supposed to. And as we all become aware of the danger of identity theft and look more carefully for unexpected transactions on our statements, banks should have good enough records and logs to trace the people who might have accessed the account details. Fortunately there are now ways to keep bank systems more secure from the sort of data theft that involves taking a portable hard drive or flash memory card into the office, plugging it into a USB slot and sucking down customer files. Companies like SecureWave, for example, can restrict the use of USB ports just to authorised devices or even to an individual's personal memory card. These solutions are not perfect, but it does not feel like a wave of fraud is about to wash away the entire financial system. However the warning does highlight one of the major issues with e commerce and online trading the security or otherwise of the servers and other systems that make up the 'back office'. It has been clear for years that the real danger in paying for goods online with a credit card is not that the number will be intercepted in transit but that the shop you are dealing with will be hacked. In fact I do not know of a single case where an e mail containing payment details has led to card fraud. There are simply too many e mails passing over the net for interception to be a sensible tool for anyone out to commit fraud. CD Universe, Powergen and many other companies have left their databases open and suffered the consequences. And just last week the online bank Cahoot admitted that its customer account details could be read by anyone who could guess a login name. Whether it is external hackers breaking in because of poor system security or internal staff abusing the access they get as part of their job, the issue is the same: how do we make sure that our personal data is not abused? Any organisation that processes personal data is, of course, bound by the Data Protection Act and must take proper care of it. Unauthorised disclosure is not allowed, but the penalties are small and the process of prosecuting under the Act so convoluted as to be worthless in practice. This is not something we can just leave it to the market. The consequences of having one's identity stolen are too serious, and markets respond too slowly. After all, I bank with Cahoot but it would be so much hassle to move my accounts that I did not even consider it when I heard about their security problems. I doubt many others have closed their accounts, especially when there is little guarantee that other banks are not going to make the same sort of mistake in future. The two options would seem to be more stringent data protection law, so that companies really feel the pressure to improve their internal processes, or a wave of civil lawsuits against financial institutions with sloppy practices whose customers suffer from identity theft. I have never felt comfortable with the US practice of suing everything that moves, partly because it seems to make lawyers richer than their clients, so I know which I'd prefer. Bill Thompson is a regular commentator on the BBC World Service programme Go Digital.


Microsoft has warned PC users to update their systems with the latest security fixes for flaws in Windows programs. In its monthly security bulletin, it flagged up eight "critical" security holes which could leave PCs open to attack if left unpatched. The number of holes considered "critical" is more than usual. They affect Windows programs, including Internet Explorer (IE), media player and instant messaging. Four other important fixes were also released. These were considered to be less critical, however. If not updated, either automatically or manually, PC users running the programs could be vulnerable to viruses or other malicious attacks designed to exploit the holes. Many of the flaws could be used by virus writers to take over computers remotely, install programs, change, and delete or see data. One of the critical patches Microsoft has made available is an important one that fixes some IE flaws. Stephen Toulouse, a Microsoft security manager, said the flaws were known about, and although the firm had not seen any attacks exploiting the flaw, he did not rule them out. Often, when a critical flaw is announced, spates of viruses follow because home users and businesses leave the flaw unpatched. A further patch fixes a hole in Media Player, Windows Messenger and MSN Messenger which an attacker could use to take control of unprotected machines through .png files. Microsoft announces any vulnerabilities in its software every month. The most important ones are those which are classed as "critical". Its latest releases came the week that the company announced it was to buy security software maker Sybari Software as part of Microsoft's plans to make its own security programs.


Labour's election chief Alan Milburn has defended his party's campaign posters amid Tory claims the ads were nothing short of "sly anti Semitism". Mr Milburn said he appreciated people's concerns, but insisted that "what they were was anti Tory" and "not in any way, shape or form anti Semitic". He was responding to Tory spokesman Julian Lewis who said the ads were part of a wider trend of smearing the party. Labour has withdrawn two controversial posters and launched four new designs. A row was sparked after the party published posters appearing to depict Michael Howard, who is Jewish, as Fagin, and as a flying pig, amid claims they were anti Semitic. The posters were labelled a "big misjudgement" by the Conservatives who said Labour's "first shot in the election has badly backfired". The posters were among a series of ideas shown to Labour members, who were asked to vote on their favourite. Labour has taken them off its website, saying members preferred other posters. The party's four new designs, launched on Tuesday, steer clear of the Fagin or flying pig images, but make clear that Labour is sticking to its strategy of targeting the Tory leader personally, with reminders of his record in office. The posters were among a series of ideas shown to Labour members, who have been asked to choose which one should be used ahead of the election. In the Commons, Tory spokesman Mr Lewis suggested the posters were part of a wider trend and reminded MPs that Labour chairman Ian McCartney last year described shadow chancellor Oliver Letwin as a "21st Century Fagin". "Given the outrage that that smear caused then, how could you have thought anything other than the fact that what you were doing in reviving it in your poster advertisements was nothing more and nothing less than a calculated campaign of sly anti Semitism?" Mr Milburn replied that they were not anti Semitic. "What they were was anti Tory and I make no apologies at all for making clear to the British public exactly what the Conservative plans would mean," he said. "I fully understand and indeed respect the views of those who have concerns about any poster designs that have appeared on the Labour Party website." The Fagin and pigs might fly posters were taken off Labour's website on Monday after supporters voted for their favourite poster featuring Mr Howard and shadow chancellor Oliver Letwin holding a blackboard reading 2 2 5. A Labour spokesman later said their removal from the party's website was not affected by the row.


Sri Lanka's banks face hard times following December's tsunami disaster, officials have warned. The Sri Lanka Banks Association said the waves which killed more than 30,000 people also washed away huge amounts of property which was securing loans. According to its estimate, as much as 13.6% of the loans made by private banks to clients in the disaster zone has been written off or damaged. State owned lenders may be even worse hit, it said. The association estimates that the private banking sector has 25bn rupees ( 250m; 135m) of loans outstanding in the disaster zone. On one hand, banks are dealing with the death of their customers, along with damaged or destroyed collateral. On the other, most are extending cheap loans for rebuilding and recovery, as well as giving their clients more time to repay existing borrowing. The combination means a revenue shortfall during 2005, SLBA chairman and Commercial Bank managing director AL Gooneratne told a news conference. "Most banks have given moratoriums and will not be collecting interest, at least in this quarter," he said. In the public sector, more than one in ten of the state owned People's Bank's customers in the south of Sri Lanka were affected, a bank spokesman told Reuters. He estimated the bank's loss at 3bn rupees.


Joint assistant boss Stuart Pearce has admitted he would like to succeed Kevin Keegan as manager at Manchester City. Keegan has decided to step down as City manager when his contract comes to an end in 18 months. "You don't have to be Einstein to realise there will be a manager's job available at a really good club," Pearce told BBC GMR. "I will certainly be applying for it, although whether the board deem me good enough to take it, I do not know." Pearce initially joined City as a player under Keegan in 2001 before becoming part of the coaching staff. He was promoted to joint assistant manager following the departure of Arthur Cox last summer. The former England defender had a year as player boss with Nottingham Forest eight seasons ago but has made no secret of his desire to have another crack at the job. He was linked with the manager's job at Oldham and Keegan has stated he would not get in the way if Pearce wanted to leave. But it now appears Pearce is keen to wait for his chance at City. He added: "By that time, I will have been here for five years so at least they will have had a good look at me and they are aware of my feelings with regard to being Kevin's successor. "Obviously, the issue is out of my hands but it is a fantastic job for anybody I just hope it will be me."


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


A US woman is suing Hewlett Packard (HP), saying its printer ink cartridges are secretly programmed to expire on a certain date. The unnamed woman from Georgia says that a chip inside the cartridge tells the printer that it needs re filling even when it does not. The lawsuit seeks to represent anyone in the US who has purchased an HP inkjet printer since February 2001. HP, the world's biggest printer firm, declined to comment on the lawsuit. HP ink cartridges use a chip technology to sense when they are low on ink and advise the user to make a change. But the suit claims the chips also shut down the cartridges at a predetermined date regardless of whether they are empty. "The smart chip is dually engineered to prematurely register ink depletion and to render a cartridge unusable through the use of a built in expiration date that is not revealed to the consumer," the suit said. The lawsuit is asking for restitution, damages and other compensation. The cost of printer cartridges has been a contentious issue in Europe for the last 18 months. The price of inkjet printers has come down to as little as 34 but it could cost up to 1,700 in running costs over an 18 month period due to cartridge, a study by Computeractive Magazine revealed last year. The inkjet printer market has been the subject of an investigation by the UK's Office of Fair Trading (OFT), which concluded in a 2002 report that retailers and manufacturers needed to make pricing more transparent for consumers.


Ethiopia's Tirunesh Dibaba set a new world record in winning the women's 5,000m at the Boston Indoor Games. Dibaba won in 14 minutes 32.93 seconds to erase the previous world indoor mark of 14:39.29 set by another Ethiopian, Berhane Adera, in Stuttgart last year. But compatriot Kenenisa Bekele's record hopes were dashed when he miscounted his laps in the men's 3,000m and staged his sprint finish a lap too soon. Ireland's Alistair Cragg won in 7:39.89 as Bekele battled to second in 7:41.42. "I didn't want to sit back and get out kicked," said Cragg. "So I kept on the pace. The plan was to go with 500m to go no matter what, but when Bekele made the mistake that was it. The race was mine." Sweden's Carolina Kluft, the Olympic heptathlon champion, and Slovenia's Jolanda Ceplak had winning performances, too. Kluft took the long jump at 6.63m, while Ceplak easily won the women's 800m in 2:01.52.


Billions of farmers' livelihoods are at risk from falling commodity prices and protectionism, the UN's Food Agriculture Organisation has warned. Trade barriers and subsidies "severely" distort the market, the FAO report on the "State of Agricultural Commodity Markets 2004" said. As a result, the 2.5 billion people in the developing world who rely on farming face food insecurity. The most endangered are those who live in the least developed countries. The FAO report said that support for farmers in industrialised nations was equivalent to 30 times the amount provided as aid for agricultural development in poor countries. The FAO has urged the World Trade Organisation to swiftly conclude negotiations to liberalise trade, easing developing countries' access to the world market. It also criticised the high tariffs imposed by both developed and developing nations. It recommends that developing countries reduce their own tariffs to encourage trade and take advantage of market liberalisation. According to the organisation, subsidies and high tariffs have a strong impact on the trade of products such as cotton and rice. Global exports of these products are mainly in the hands of the European Union and the US, who thanks to subsidies sell them at very low prices. In fact, almost 30 wealthy nations spend more than 300bn ( 158.8bn; 230.9bn euros) in agricultural subsidies. The market situation has divided developing nations in two groups, the FAO said. The first group have a reasonably diverse range of agricultural products while in the second group, agriculture lies largely in the hands of small scale producers. For 43 developing countries, more than 20% of their export incomes come from the sale of just one product. These countries are mainly situated in Sub Saharan Africa, Latin America and the Caribbean.


The US agrochemical giant Monsanto has agreed to pay a 1.5m ( 799,000) fine for bribing an Indonesian official. Monsanto admitted one of its employees paid the senior official two years ago in a bid to avoid environmental impact studies being conducted on its cotton. In addition to the penalty, Monsanto also agreed to three years' close monitoring of its business practices by the American authorities. It said it accepted full responsibility for what it called improper activities. A former senior manager at Monsanto directed an Indonesian consulting firm to give a 50,000 bribe to a high level official in Indonesia's environment ministry in 2002. The manager told the company to disguise an invoice for the bribe as "consulting fees". Monsanto was facing stiff opposition from activists and farmers who were campaigning against its plans to introduce genetically modified cotton in Indonesia. Despite the bribe, the official did not authorise the waiving of the environmental study requirement. Monsanto also has admitted to paying bribes to a number of other high ranking officials between 1997 and 2002. The chemicals and crops firm said it became aware of irregularities at a Jakarta based subsidiary in 2001 and launched an internal investigation before informing the US Department of Justice and the Securities and Exchange Commission (SEC). Monsanto faced both criminal and civil charges from the Department of Justice and the SEC. "Companies cannot bribe their way into favourable treatment by foreign officials," said Christopher Wray, assistant US attorney general. Monsanto has agreed to pay 1m to the Department of Justice, adopt internal compliance measures, and co operate with continuing civil and criminal investigations. It is also paying 500,000 to the SEC to settle the bribe charge and other related violations. Monsanto said it accepted full responsibility for its employees' actions, adding that it had taken "remedial actions to address the activities in Indonesia" and had been "fully co operative" throughout the investigative process.


The government will only hit its target for improving adult maths and literacy skills if courses are made more attractive, a report says. The National Audit Office praised ministers for reaching the benchmark of 750,000 adults in England gaining basic qualifications by this year. But a target of 1.5 million more by 2010 needed "creative" ideas. Some 26 million adults lack maths or English skill levels expected of school leavers. According to the report, "more than half" the qualifications achieved were by learners aged 16 to 18. These are defined as "adults" by the government for the purpose of compiling these figures. Normally adults are defined as being aged over 19. The number of these people gaining qualifications was "rising slowly". Auditor General Sir John Bourn said: "Higher levels of literacy and numeracy will benefit England both socially and economically. "More people will have the opportunity to live richer lives." In 2001, the government launched the Get On scheme aimed at reducing illiteracy and innumeracy. Sir John said "substantial progress" had been made since, adding that this was "only the beginning". The government and its partners would "need to be creative and responsive". Some 3.7bn will be spent on implementing the programme by 2006. The report recommends gathering more details on the educational needs of areas, so courses can be set to meet local demand. Existing adult learners could use their "enthusiasm, commitment and local knowledge" to attract other people. The Department for Education and Skills could also use more "personalised learning" and work with voluntary groups, councils and employers. It should also assess adult learners' progress "at frequent intervals", the report adds. When the government announced it had reached its 2004 target earlier this month, Prime Minister Tony Blair said it was "only the start of the journey". An estimated 5.2 million adults have worse literacy than that expected of 11 year olds, while 14.9 million have numeracy skills below this level. This is thought to cost the UK economy hundreds of millions of pounds each year. The qualifications achieved by those taking part in the government's scheme range up to GCSE equivalents. Get On's participation target has been set at 2.25 million by 2010, with an interim figure of 1.5 million by 2007. Education minister Ivan Lewis said: "We will continue to use creative ways of involving people with the lowest skill levels and the report shows that our efforts are gathering pace." Shadow Education Secretary Tim Collins said: "This is the third report in two days to highlight Labour's failure to ensure young people acquire the necessary levels of literacy and numeracy for their working life. "Employers and business leaders have repeatedly voiced concern over the number of school leavers without these basic skills, but all the government have offered is more talk." Liberal Democrat education spokesman Phil Willis added: "Far too little has been done to enable adult learners to fit learning into their busy lives."


A judge has dismissed an attempt by Russian oil giant Yukos to gain bankruptcy protection in the US. Yukos filed for Chapter 11 protection in Houston in an unsuccessful attempt to halt the auction of its Yugansk division by the Russian authorities. The court ruling is a blow to efforts to get damages for the sale of Yugansk, which Yukos claims was illegally sold. Separately, former Yukos boss Mikhail Khodorkovsky began testimony on Friday in his trial for fraud and tax evasion. Mr Khodorkovsky who has been in jail for more than a year pleaded not guilty to the charges brought against him and denied involvement in any criminal activities. "I pride myself on heading for 15 years a number of successful companies and helping other enterprises rise from their knees," he told a Russian court. Yugansk was auctioned to help pay off 27.5bn ( 14.5bn) in unpaid taxes. It was bought for 9.4bn by a previously unknown group, which was in turn bought up almost immediately by state controlled oil company Rosneft. Texas Judge Letitia Clark said Yukos did not have enough of a US presence to establish US jurisdiction. "The vast majority of the business and financial activities of Yukos continue to occur in Russia," Judge Clark said in her ruling. "Such activities require the continued participation of the Russian government." Yukos had argued that a US court was entitled to declare it bankrupt before its Yugansk unit was sold, since it has local bank accounts and its chief finance officer Bruce Misamore lives in Houston. Yukos claimed it sought help in the US because other forums Russian courts and the European Court of Human Rights were either unfriendly or offered less protection. Russia had indicated it would in any case not abide by the rulings of the US courts. In her ruling, the judge acknowledged that "it appears likely that agencies of the Russian government have acted in a manner that would be considered confiscatory under United States law". But she said her role was simply to decide on jurisdiction. The US court's jurisdiction had been challenged by Deutsche Bank and Gazpromneft, a former unit of Russian gas monopoly Gazprom which is due to merge with Rosneft. Analysts said the ability of Gazprom and Rosneft to trade freely overseas had been stifled while the ownership of Yugansk remained unclear. Yukos said it would consider its options in light of the ruling. However, it claimed that the court had backed its argument in four out of five key issues. "We believe the merits of our case are strong and simple," said chief executive Steven Theede. "Our assets were illegally seized. We want them back or damages paid."


MG Rover's proposed tie up with China's top carmaker has been delayed due to concerns by Chinese regulators, according to the Financial Times. The paper said Chinese officials had been irritated by Rover's disclosure of its talks with Shanghai Automotive Industry Corp in October. The proposed deal was seen as crucial to safeguarding the future of Rover's Longbridge plant in the West Midlands. However, there are growing fears that the deal could result in job losses. The Observer reported on Sunday that nearly half the workforce at Longbridge could be under threat if the deal goes ahead. Shanghai Automotive's proposed 1bn investment in Rover is awaiting approval by its owner, the Shanghai city government and by the National Development and Reform Commission, which oversees foreign investment by Chinese firms. According to the FT, the regulator has been annoyed by Rover's decision to talk publicly about the deal and the intense speculation which has ensued about what it will mean for Rover's future. As a result, hopes that approval of the deal may be fast tracked have disappeared, the paper said. There has been continued speculation about the viability of Rover's Longbridge plant because of falling sales and unfashionable models. According to the Observer, 3,000 jobs out of a total workforce of 6,500 could be lost if the deal goes ahead. The paper said that Chinese officials believe cutbacks will be required to keep the MG Rover's costs in line with revenues. It also said that the production of new models through the joint venture would take at least eighteen months. Neither Rover nor Shanghai Automotive commented on the reports.