The term "blog" has been chosen as the top word of 2004 by a US dictionary publisher. Merriam Webster said "blog" headed the list of most looked up terms on its site during the last twelve months. During 2004 blogs, or web logs, have become hugely popular and some have started to influence mainstream media. Other words on the Merriam Webster list were associated with major news events such as the US presidential election or natural disasters that hit the US. Merriam Webster defines a blog as: "a Web site that contains an online personal journal with reflections, comments and often hyperlinks". Its list of most looked up words is drawn up every year and it discounts terms such as swear words, that everyone likes to look up, or those that always cause problems, such as "affect" and "effect". Merriam Webster said "blog" was the word that people have asked to be defined or explained most often over the last 12 months. The word will now appear in the 2005 version of Merriam Webster's printed dictionary. However, the word is already included in some printed versions of the Oxford English Dictionary. A spokesman for the Oxford University Press said that the word was now being put into other dictionaries for children and learners, reflecting its mainstream use. "I think it was the word of last year rather than this year," he said. "Now we're getting words that derive from it such as 'blogosphere' and so on," he said. "But," he added, "it's a pretty recent thing and in the way that this happens these days it's got established very quickly." Blogs come in many different forms. Many act as news sites for particular groups or subjects, some are written from a particular political slant and others are simply lists of interesting sites. Other terms in the top 10 were related to natural disasters that have struck the US, such as "hurricane" or were to do with the US election. Words such as "incumbent", "electoral" and "partisan" reflected the scale of interest in the vote. Blogs also proved very useful to both sides in the US election battle because many pundits who maintain their own journals were able to air opinions that would never appear in more mainstream media. Speculation that President Bush was getting help during debates via a listening device was first aired on web logs. Online journals also raised doubts about documents used by US television news organisation CBS in a story about President Bush's war record. The immediacy of many blogs also helped some wield influence over topics that made it in to national press. This is despite the fact that the number of people reading even the most influential blogs is tiny. Statistics by web influence ranking firm HitWise reveal that the most popular political blog racks up only 0.0051% of all net visits per day. One of the reasons that blogs and regularly updated online journals have become popular is because the software used to put them together make it very easy for people to air their views online. According to blog analysis firm Technorati the number of blogs in existence, the blogosphere, has doubled every five and a half months for the last 18 months. Technorati now estimates that the number of blogs in existence has exceeded 4.8 million. Some speculate that less than a quarter of this number are regularly maintained. According to US research firm Pew Internet American Life a blog is created every 5.8 seconds. Another trend this year has been the increasing numbers of weblogs that detail the daily lives of many ordinary workers in jobs that few people know much about. In many repressive regimes and developing nations, blogs have been embraced by millions of people keen to give their plight a voice.


Video games on consoles and computers proved more popular than ever in 2004. Gamers spent more than 1.34bn in 2004, almost 7% more than they did in 2003 according to figures released by the UK gaming industry's trade body. Sales records were smashed by the top title of the year GTA: San Andreas in which players got the job of turning central character CJ into a crime boss. The game sold more than 1 million copies in the first nine days that it was on sale. This feat made it the fastest selling video game of all time in the UK. Although only released in November the sprawling story of guns, gangsters game beat off strong competition and by year end had sold more than 1.75 million copies. There were also records set for the number of games that achieved double platinum status by selling more than 600,000 copies. Five titles, including Sony EyeToy Play and EA's Need for Speed: Underground 2, managed this feat according to figures compiled by Chart Track for the Entertainment and Leisure Software Publishers Association (Elspa). Electronic Arts, the world's biggest games publisher, had 9 games in the top 20. 2004 was a "stellar year" said Roger Bennett, director general of Elspa. "In a year with no new generation consoles being released, the market continued to be buoyant as the industry matured and the increasingly diverse range of games reached new audiences and broadened its player base across ages and gender," he said. Part of the success of games in 2004 could be due to the fact that so many of them are sequels. 16 out of the top 20 titles were all follow ups to established franchises or direct sequels to previously popular games. Halo, The Sims, Driver, Need for Speed, Fifa football, Burnout were just a few that proved as popular as the original titles. Despite this fondness for older games, Doom 3 did not make it to the top 20. Movie tie ins also proved their worth in 2004. Games linked to Shrek, The Incredibles, Spider Man, Harry Potter and Lord of the Rings were all in the top 20. Elspa noted that sales of Xbox games rose 37.9% during the year. However, Sony's PlayStation 2 was the top seller with 47% of the 1.34bn spent on games in 2004 used to buy titles for that console. Despite winning awards and rave reviews Half Life 2 did not appear in the list. This was because it was only released on PC and, compared to console titles, sold in relatively small numbers. Also the novel distribution system adopted by developer Valve meant that many players downloaded the title rather than travel to the shops to buy a copy. Valve has yet to release figures which show how many copies of the game were sold in this way.


Charlie Bell, the straight talking former head of fast food giant McDonald's, has died of cancer aged 44. Mr Bell was diagnosed with colorectal cancer in May last year, a month after taking over the top job. He resigned in November to fight the illness. Joining the company as a 15 year old part time worker, Mr Bell quickly moved through its ranks, becoming Australia's youngest store manager at 19. A popular go getter, he is credited with helping revive McDonald's sales. Mr Bell leaves a wife and daughter. "As we mourn his passing, I ask you to keep Charlie's family in your hearts and prayers," chief executive James Skinner said in a statement. "And remember that in his abbreviated time on this earth, Charlie lived life to the fullest." "No matter what cards life dealt, Charlie stayed centred on his love for his family and for McDonald's." After running the company's Australian business in the 1990s, Mr Bell moved to the US in 1999 to run operations in Asia, Africa and the Middle East. In 2001, he took over the reins in Europe, McDonald's second most important market. He became chief operating officer and president in 2002. Mr Bell took over as chief executive after his predecessor as CEO, Jim Cantalupo, died suddenly of a heart attack in April. Having worked closely with Mr Cantalupo, who came out of retirement to turn McDonald's around, Mr Bell focused on boosting demand at existing restaurants rather than follow a policy of rapid expansion. He had promised not to let the company get "fat, dumb and happy," and, according to Reuters, once told analysts that he would shove a fire hose down the throat of competitors if he saw them drowning. Mr Bell oversaw McDonald's "I'm lovin' it" advertising campaign and introduced successes such as McCafe, now the biggest coffee shop brand in Australia and New Zealand. Colleagues said that Mr Bell was proud of his humble beginnings, helping out behind cash tills and clearing tables when visiting restaurants.


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


Blackburn have rejected a third bid from Rangers for Scotland captain Barry Ferguson, BBC Sport has learnt. It is thought Blackburn want 6m for the midfielder but chief executive John Williams has confirmed the club are still "in dialogue" with Rangers. The 26 year old has already handed in a transfer request at Ewood Park as he seeks a return to Ibrox. But the clubs have been unable to reach agreement over a fee for Ferguson, who moved to Lancashire in 2003 for 6.5m. On Thursday Rangers said they would not be increasing their offer of 4m. Blackburn have said all along that they want 6m for the midfielder and Williams has rejected proposals from Rangers over a player swap deal. Williams said: "We are in dialogue with Glasgow Rangers but we have no agreement." The negotiations will have to be concluded by midnight on Monday, when the winter transfer window shuts. Williams conceded any deal for Ferguson was looking "unlikely" before the close of the transfer window but Rangers still had a chance to seal the deal. "We have no comment to make other than we have not got an agreement with Glasgow Rangers," he added. "The way things are looking, I think it is unlikely we are going to. "The ball is in their court but we have not got an offer that is acceptable at this moment." It is understood that Blackburn accepted a 5m offer for Ferguson from Everton at the weekend. But the player is determined to return to Scotland and rejected a move to Goodison Park. Ferguson did not play in the FA Cup win over Colchester on Saturday despite recovering from a groin injury with Rovers boss Mark Hughes claiming it had been an "emotional and difficult time" for the player.


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


Microsoft is celebrating bumper sales of its Xbox sci fi shooter, Halo 2. The game has sold more than five million copies worldwide since it went on sale in mid November, the company said. Halo 2 has proved popular online, with gamers notching up a record 28 million hours playing the game on Xbox Live. According to Microsoft, nine out of 10 Xbox Live members have played the game for an average of 91 minutes per session. The sequel to the best selling Need for Speed: Underground has inched ahead of the competition to take the top slot in the official UK games charts. The racing game moved up one spot to first place, nudging GTA: San Andreas down to second place. Halo 2 dropped one place to five, while Half Life 2 fell to number nine. Last week's new releases, GoldenEye: Rogue Agent and Killzone, both failed to make it into the top 10, debuting at number 11 and 12 respectively. Record numbers of Warcraft fans are settling in the games online world. On the opening day of the World of Warcraft massive multi player online game more than 200,000 players signed up to play. On the evening of the first day more than 100,000 players were in the world, forcing Blizzard to add another 34 servers to cope with the influx. The online game turns the stand alone Warcraft games into a persistent world that players can inhabit not just visit Europe's gamers could be waiting until January to hear when they can get their mitts on Nintendo's handheld device, Nintendo DS, says gamesindustry.biz. David Yarnton, Nintendo UK general manager, told a press conference to look out for details in the New Year. Its US launch was on Sunday and it goes on sale in Japan on 2 December. Nintendo has a 95% share of the handheld gaming market and said it expected to sell around five million of the DS by March 2005.


Shares in Cairn Energy, a UK oil firm, have closed down 18% after a disappointing drilling update and a warning over possible tax demands. The company said tests had shown no significant finds in one of its Indian oil fields, but was upbeat about the potential of other areas. It also said the Indian government had told it to pay a production tax, for which Cairn argues it is not liable. Cairn's shares have jumped by almost 400% this year. Investors had piled into Cairn after the company announced significant oil finds in India this year. Chief executive Bill Gammell said on Friday he was "disappointed" with exploration in the so called N C extension area in Rajasthan. Investors had held high hopes of major oil finds in this area. But Cairn said estimates had been revised in what was a "significant downgrade of the initial expectation". Cairn also said that the government believed the company was liable to pay taxes under its production sharing contract. The company said the rate would be about 900 rupees ( 20.40; 10.50) per tonne, or seven barrels, of oil. A spokesman for the firm said that the tax would wipe 5% of the field's current value. "Cairn refutes the government's position," Mr Gammell said. He insisted that the contract made it clear that the tax should be shouldered by the licensee India's state run Oil Natural Gas Corp (ONGC) and not the contractor. "We have a pretty strong legal case here," he added, saying it would only become an issue once the firm started production. Investors took a dim view of the statements though. The shares closed down 247p, or 18%, at 1115 pence. "I think people were slightly over ambitious for how quickly Cairn would be able to develop and potentially offload these reserves," said analyst Jason Kenney at ING. The disappointments overshadowed increased production targets for Cairn's existing oilfields. The company raised targets for its Mangala and Aishwariya fields in India from 60,000 barrels a day to between 80,000 and 100,000 barrels a day. Its Mangala field, thought to contain a billion barrels, is its biggest find to date. "These two fields will provide the core of the future developments in Rajasthan," Mr Gammell said. Cairn added that it would be appraising another field early next year. Mr Gammell set up the company in the 1980s and has successfully switched its focus to South Asia from interests in the US and Europe. Cairn, which also operates in Nepal and Bangladesh, was catapulted into the FTSE 100 index of leading UK shares earlier this year after the sharp rise in its share price.


French prodigy Gael Monfils underlined his huge promise by beating French Open champion Gaston Gaudio 6 4 7 6 (7 4) in the first round of the Qatar Open. The 18 year old wild card won three of the four junior Grand Slam events last year, including Wimbledon. Fabrice Santoro, the 2000 champion, beat Sweden's Thomas Johansson 6 4 6 2 but fourth seed Mikhail Youzhny lost 6 3 7 6 (7 3) to Rafael Nadal. Roger Federer plays Greg Rusedski in the second round on Wednesday. Monfils, who was given a wildcard into the tournament, said: "This is my first win over a top 10 player and I am delighted. "I play my best tennis when I am fired up on the court and the reason I won today was because I was able to play my natural, attacking game," he said. "Of course I was a bit tired in the second set. But I was confident I could survive had there been a third set."


Pan European group Euronext is poised to launch a bid for the London Stock Exchange, UK media reports say. Last week, the LSE rejected a takeover proposal from German rival Deutsche Boerse the 530 pence a share offer valued the exchange at about 1.35bn. The LSE, which saw its shares rise 25%, said the bid undervalued the business. Euronext formed after the Brussels, Paris and Amsterdam exchanges merged is reportedly working with three investment banks on a possible offer. The LSE, Europe's biggest stock market, is a key prize, listing stocks with a total capitalisation of 1.4 trillion. Euronext already has a presence in London due to its 2001 acquisition of London based options and futures exchange Liffe. Trades on the LSE are cleared via Clearnet, in which Euronext has a quarter stake. Euronext, which also operates an exchange in Lisbon, last week appointed UBS and ABN Amro as additional advisors. It is also working with Morgan Stanley. Despite the rejection of the Deutsche Boerse bid last week, Werner Seifert, chief executive of the Frankfurt based exchange, may well come back with an improved offer. It has long wanted to link up with London, and the two tried and failed to seal a merger in 2000. Responding to the LSE's rebuff, Deutsche Boerse whose market capitalisation is more than 3bn said it believed it could show its proposal offered benefits, and that it still hoped to make a cash bid. Last week the LSE said not only was the bid undervalued, but that it had "been advised that there can be no assurance that any transaction could be successfully implemented". However, it has indicated it is open for further talks. Meanwhile, German magazine Der Spiegel said part of Mr Seifert's negotiations with the LSE were about where to base the future board of any merged exchange. While Mr Seifert has suggested a merged company would be run out of London, the mayor of Frankfurt has raised concerns that such a move could cost German jobs. Many analysts believe German Boerse has more financial firepower than Euronext if it came to a bidding war.


Shares in Elan and Biogen Idec plunged on Monday as the firms suspended sales of new multiple sclerosis drug Tysabri after a patient's death in the US. On the New York Stock Exchange, shares in Ireland based Elan lost 70% while US partner Biogen Idec shed 43%. The firms took action after the death from a central nervous system disease and a suspected case of the condition. The cases cited involved the use of both Tysabri and Avonex, Biogen Idec's existing multiple sclerosis drug. The companies said they have no reports of the rare condition progressive multifocal leukoencephalopathy (PML) in patients taking either Tysabri or Avonex alone. Tysabri was approved for use in the US last November and was widely tipped to become the world's leading multiple sclerosis treatment. "The companies will work with clinical investigators to evaluate Tysabri treated patients and will consult with leading experts to better understand the possible risk of PML," the two firms said in a statement. "The outcome of these evaluations will be used to determine possible re initiation of dosing in clinical trials and future commercial availability." Analysts had believed the product would provide a new growth opportunity for Biogen Idec, which had faced increased competition from rivals to Avonex. Elan, once the biggest firm on the Irish stock exchange, was also expected to receive a boost, from the new product. An inquiry into Elan's accounts in 2002 brought the group close to bankruptcy but the firm has been rebuilding itself since, with its share price increasing by almost four fold last year. "Most of the value in the company was in Tysabri," said Ian Hunter at Goodbody Stockbrokers in Dublin. "Now there's a question mark over it." Elan finished down 18.90 at 8, while Biogen fell 28.63 to 38.65. Shares in UK pharmaceutical firm Phytopharm closed down 19.84% at 151.5 pence on the London Stock Exchange on Monday, after it said a partner was set to pull out of a deal on an experimental Alzheimer's disease treatment. Phytopharm said Japan's Yamanouchi Pharmaceutical was likely to end a licensing agreement, prompting analysts to raise questions over the level of its future cash reserves.


Tottenham are primed to snap up Iceland Under 21 international Emil Hallfredsson after he impressed on trial at White Hart Lane. The 20 year old midfielder, who plays for FH Hafnarfjordur, also starred in the Uefa Cup match against Scottish side Dunfermline earlier this season. Spurs have agreed a fee for the player, who has yet to agree personal terms. "He had offers from two other clubs but he decided to come to Tottenham," said Spurs sporting director Frank Arnesen. "He is a left sided player, a position we have been looking at and he showed so much talent in his time here that we decided to take him. "It's down the road of bringing in talent, good prospects and giving them a place at Tottenham where they can improve."


All Blacks captain Tama Umaga has warned the British and Irish Lions will be his most fearsome opponents yet ahead of their summer tour. But Umaga, in England for Saturday's IRB Rugby Aid match, also backed New Zealand to win the three Test series against the Lions. He told BBC Sport: "It's potentially the most fearsome line up I've ever come up against. They're awesome. "But I'd back us all the way to beat them when they come over." Lions boss Sir Clive Woodward is set to announce his squad for the June July tour next month. When Woodward was appointed last year, it was widely believed he would rely heavily on his former England players. But Umaga said: "He'd be hard pushed to do that now considering the shape of the Six Nations. "Don't get me wrong, England have got a lot of talented guys and I'm sure there are some of them who'll make the Lions Test XV. "But you can't disguise Wales and Ireland in particular. Some of the tries they've scored have been great. I'll admit it'll be fairly awesome lining up against the likes of Brian O'Driscoll." Umaga will meet O'Driscoll in Saturday's Rugby Aid match at Twickenham, with the Irish captain leading the Northern Hemisphere side. O'Driscoll is among a host of players in the Northern Hemisphere squad, coached by Woodward, that are tipped for Lions call ups. "It'll be good for us to get an early idea of some of these guys, although a lot can change between now and June," Umaga said. The 31 year old admitted interest in the Lions tour was immense, calling it "the biggest thing to hit New Zealand since Lord of the Rings". He added: "As players, it's enough for us to be driven by the rarity of playing the Lions. In fact, it's not just us All Blacks it's the talk of the country." Umaga admitted the fear of injury weighed on his mind ahead of Saturday's charity game, which features a host of big names including George Gregan, Andrew Mehrtens and Chris Latham. But he admitted the value of the cause proceeds of the match will go to aiding victims of the tsunami easily won him over. "The second Southern Hemisphere coach Rod Macqueen made the approach, I didn't hesitate. It was great when New Zealand Rugby then gave me the all clear. "Thankfully I didn't know anyone that was involved in the tragedy of the tsunami but you couldn't miss all the horrific reports on the news. "There are so many people that were affected, are still affected and will be affected for a long time. It's just good to know we can do something minor to help out." The match will be televised on BBC One at 1400 GMT on Saturday.


Ken Livingstone should "stick to his guns" and not apologise for his "Nazi" comment to a Jewish reporter, Tory MP Boris Johnson has insisted. Mr Johnson also claimed Tony Blair's intervention in the row was "an attempt to reassure Jewish voters". London mayor Mr Livingstone says he is "standing by" his remarks which likened an Evening Standard journalist to a "concentration camp guard". But the prime minister says it is time for Mr Livingstone to say sorry. Labour's Mr Livingstone has said his comments may have been offensive but were not racist, and said earlier this week he would not apologise even if Mr Blair asked. Later the prime minister said: "A lot of us in politics get angry with journalists from time to time, but in the circumstances, and to the journalist because he was a Jewish journalist, yes, he should apologise." However, Mr Johnson, who was forced to apologise last year for an article in the magazine he edits about Liverpudlians grieving over the death of British hostage Ken Bigley, said Mr Blair "should butt out of" the row. "I don't see why the prime minister has to get involved in this," The Spectator editor told BBC Radio 4's Today programme. "It's a dispute between Ken Livingstone and a reporter on the Evening Standard." Mr Johnson, MP for Henley on Thames, Oxfordshire, said he suspected Labour was now trying to reassure Jewish voters "because of this curious way in which Labour seems to be trying to curry favour with disillusioned Muslim voters who may be disillusioned about the war". "Ken doesn't think he's got anything to say sorry for and if that's really his feeling, then I think that he should stick to his guns," he said. Mr Johnson apologised last October for perpetuating an "outdated stereotype" of Liverpool in the leader article on the death of Mr Bigley. The article in the magazine suggested grieving Liverpudlians were wallowing in their victim status. It also attributed blame to drunken Liverpool football fans for the 1989 Hillsborough disaster in which 96 died. Mr Johnson told Today: "It's perfectly true that I got into the grovelling game myself and when I apologised there were some things that I felt I ought to say sorry for ... there were also other things I didn't think I should apologise for," he said. "But here's old Ken he's been crass, he's been insensitive and thuggish and brutal in his language but I don't think actually if you read what he said, although it was extraordinary and rude, I don't think he was actually anti Semitic."


Ferrari could be listed on the stock market as part of an overhaul of Fiat's carmaking operations, the Financial Times has reported. It said Fiat was set to restructure its business after reaching a 2bn (1.53bn euros; 1.05bn) settlement with GM about Fiat's ownership. Steps being considered include listing Ferrari and bringing Maserati and Alfa Romeo closer together, it said. Despite strong sales of Alfa Romeo, Fiat's car business is making a loss. Under the proposals which the paper said could be announced within days the iconic sportscar maker could be listed separately on the market. Fiat owns a 56% stake in Ferrari best known for its dominant Formula One motor racing team having first bought into the business in 1969. It considered floating Ferrari in 2002 but opted to sell a minority stake to Italian bank Mediobanca for 775m euros ( 1bn). That sale valued Ferrari which owns the Maserati brand at 2.3bn euros. The price tag would change if Maserati was stripped out. The Financial Times said Fiat may transfer Maserati within its wholly owned Alfa Romeo division in an effort to exploit commercial synergies. Such a move would help Alfa Romeo and Maserati to share marketing, distribution and research development costs. Maserati and Ferrari sell about 10,000 cars between them and both companies broke even in 2003. Fiat, Italy's largest private sector employer, did not comment on the reported changes. Fiat recently negotiated an end to its alliance with General Motors. The US firm agreed to pay 2bn to exit an agreement under which it could have been liable to buy Fiat outright. Analysts said the reported restructuring was evidence of the greater flexibility which Fiat now had to develop the business.


Roger Federer reached the last four of the Qatar Open with an easy 6 1 6 2 win over seventh seed Feliciano Lopez. The Swiss world number one reeled off a series winners to outclass the Spaniard and set up a semi final match against Russian Nikolay Davydenko. Federer, who lost in the quarter final in his last Qatar appearance in 2003, was happy with his form. "I think I played better than against Greg Rusedski and I am happy I am playing so well," said the top seed. Lopez showed glimpses of resolve early in the second set when he held his first service game and came close to breaking Federer. But the Swiss saved a break point and promptly broke serve in the following game to seize control. Davydenko, meanwhile, upset French third seed Sebastien Grosjean 2 6 6 3 6 2. Fabrice Santoro completed a miserable day for France when he was forced to retire when 6 2 3 0 down to Albert Costa. Spaniard Costa will next face Croatian Ivan Ljubicic after the sixth seed beat Rafael Nadal 6 2 6 7 (3/7) 6 3.


Charles Clarke faces his first real test as home secretary on Monday with a possible backbench rebellion over the controversial ID cards bill. Up to 30 Labour MPs could oppose the scheme during a Commons debate. Mr Clarke, who took on the post on Thursday after David Blunkett quit, has rejected calls to "pause" on the bill. Tory leader Michael Howard also faces a possible rebellion after deciding to back identity cards. The Liberal Democrats oppose the plans. Mr Clarke, writing in The Times, accused some critics of "liberal woolly thinking and spreading false fears" by claiming ID cards would erode civil liberties. He writes that it is actually a "profoundly civil libertarian measure because it promotes the most fundamental civil liberty in our society which is the right to live free from fear crime and fear". Mr Clarke is expected to try and win over opponents to the scheme by saying officials who secretly accessed information they were not allowed to see would face up to two years in jail. He is also expected to cut the 85 cost of the card and passport, for the elderly and those on lower incomes. Mr Howard last week said his front bench team had reached a "collective view" to back ID cards after holding a "good discussion", but admitted it was "not an easy issue". He had decided to support the plans as the police said they would help fight terror, crime and illegal immigration. But former shadow attorney general Bill Cash said there was still "very deep" disquiet about the plan among senior Tories. He told BBC Radio 4's Today the government was "intensely authoritarian" and was creating "increasingly a Big Brother society". Critics argue that introducing the cards would be a costly scheme with no specific aim. Ministers say it would help the fight against terrorism, illegal immigration and organised crime. But opponents say that similar schemes in other countries have not prevented attacks like the Madrid rail bombing. On Sunday, Lib Dem leader Charles Kennedy repeated his call for a "pause" in considering the legislation. He told BBC's Breakfast with Frost programme that Mr Clarke had a "real opportunity" on Monday following the departure of Mr Blunkett. "If you were running a family or a business would you have the second reading of the Identity Cards Bill tomorrow or would you pause to reflect and see what you might do about it in the New Year? "That is the sensible way to go about it but I think this government has got itself so much into tram lines now that it is not behaving sensibly at all." The first cards would be issued in 2008 and, when he was introducing the bill, Mr Blunkett suggested Parliament could decide in 2011 or 2012 whether to make it compulsory for everybody to own the cards, although not to carry them. The new bill would also create new criminal offences on the possession of false identity documents.


The prime minister has donned a life jacket and joined school children in a sailing dinghy as he sought to sell his party's education policies. Tony Blair sailed across the lake in Bromsgrove, Worcestershire, while on a visit with Education Secretary Ruth Kelly to back school outings. Mr Blair later stressed Labour's election pledge to focus on education, when he met parents in the area. The Conservatives and Lib Dems both say his pledges are "worthless". All the parties are stepping up campaigning ahead of a General Election widely expected to be held on 5 May. Mr Blair, looking a little windswept, joined two girls from St Egwin's Middle School in Evesham and an instructor for a trip in the Wayfarer dinghy, closely followed by a boat full of photographers. Afterwards he said outdoor activities were beneficial for children but accepted that lots of teachers now worried about taking part for fear of being sued if something went wrong. "What we're doing is introducing some simple guidelines so if teachers follow those they are not going to be at risk of legal action," Mr Blair said. "When you are doing these types of activities you've got to exercise some common sense there obviously. "You can't have a situation where parents or teachers end up being worried that they're going to be subject to all sorts of legal action if they take children sailing or doing outdoor activity that is actually good for the kids and good for their health and their character." The pledge on education "your child achieving more" was one of six election pledges unveiled by Mr Blair last week. If it wins a third term in the general election expected this year, Labour is committed to giving parents more choice between schools; allowing all secondary schools to take on specialist status; opening 200 city academies and creating 100,000 more sixth form places. It aims to improve discipline in schools by adopting a "zero tolerance" approach to disruption of classes and introducing fixed penalty notices for truants. Labour also plans to give head teachers at groups of local schools control over funding for units to handle disruptive pupils. Parents and teachers who met Mr Blair on Tuesday were invited to the informal discussion after writing to their MPs to raise concerns about education. It is the latest in a series of events designed to show the prime minister is speaking directly to voters in the run up to the election and that he has not lost touch. For the Conservatives, shadow education secretary Tim Collins said: "Mr Blair 191;s government is all talk. He must be judged on what he has done in two terms, not what he mendaciously claims he would do in a third. That judgment will be damning." The Liberal Democrats are promising to cut class sizes for the youngest children and ensure all children are taught by a qualified teacher in each subject.


Arsene Wenger has pledged to keep faith with stand in keeper Manuel Almunia for the crunch week which could define Arsenal's season. Almunia will start Tuesday's Champions League group tie against Rosenborg and is likely to face Chelsea on Sunday. Wenger said: "You don't think I would take out one goalkeeper for just one game, do you? I don't do that. "I have to give him a run for a few games. It's just that I don't want to make this story bigger than it is." Wenger insists he has complete faith in the 27 year old Spaniard, who was signed last summer from Celta Vigo as back up to Jens Lehmann. "If you look at my career, you will see that I have left many big players out for a long time. I've done it with Dennis Bergkamp, Kanu, everybody. "It's because it's a goalkeeper, that's all. It's a usual situation for me. You put your best team out, no matter who it is. "For me, it was not a big mistake at Old Trafford and I wasn't alarmed by what happened against Birmingham either. "It's nothing against Lehmann. I think he's a great keeper, as is Almunia. You can only play one of them. "These people are not robots they have good periods and less good periods. Just because Lehmann doesn't play for two or three weeks, or longer or shorter, it doesn't mean I've lost faith in him." But former Arsenal keeper David Seaman believes Lehmann has been harshly treated. Seaman told the Daily Mail: "Jens is a fantastic keeper. He deserves another chance. "He has made a few mistakes but on form he deserves to be the first team choice." With Arsenal hit by injuries and suspension, inexperienced midfield pair of Mathieu Flamini and Cesc Fabregas will line up against Rosenborg but Wenger is confident they will prove more than capable. "It puts a lot of pressure on them but it's a good learning process," said Wenger. "I'm not worried as they are both mentally strong and will put in the needed workrate." The Gunners go into the game boosted by the news that defender Sol Campbell is on the verge of signing a new deal with the club. And the 30 year old, whose current contract runs out in the summer, has made it clear he is determined to achieve Champions League success with Arsenal. Campbell said: "It means a lot to me to go through, it's everything. We want to carry on in this competition. "That's where the best teams in Europe are. To be in there, playing against these guys and trying to win the trophy, is the first thing in my mind." Meanwhile, Thierry Henry believes he will be blamed if Arsenal fail to qualify for the next stage of the Champions League. Henry will captain the side in place of the suspended Patrick Vieira as the Gunners seek the required victory over Rosenborg. And the striker said: "If we don't win and we go out of the competition, like it or not, it's going to be my fault. That's the way it is. "If the team don't win I know I will be criticised, no matter how I play."


Chelsea boss Jose Mourinho has attempted to pile the pressure on title rivals Arsenal ahead of the Gunners facing Newcastle on Wednesday. Arsenal will play the Magpies a day after Chelsea beat Portsmouth during a busy festive programme. And Mourinho said: "They always seem to have two or three days' rest in which to recover. Perhaps it's something to do with the television schedule. "All my players are tired, especially John Terry." Chelsea boss Jose Mourinho admitted his side were "lucky" to win at Fratton Park but is still unhappy with the amount of games in such a short space of time during this time of year. He added: "We have had to play two matches in three days which is foreign to many of my players and, although I understand the traditions of football here at this time of year, it is not good for your health to do it. "You can sit back and smoke cigars, one after another, and it is a good life, but it is not actually good for you. "Playing so many games is certainly not healthy, especially for teams who still have European commitment."


Ford, the US car company, reported higher fourth quarter and full year profits on Thursday boosted by a buoyant period for its car loans unit. Net income for 2004 was 3.5bn ( 1.87bn) up nearly 3bn from 2003 while turnover rose 7.2bn to 170.8bn. In the fourth quarter alone Ford reported net income of 104m, compared with a loss of 793m a year ago. But its auto unit made a loss. Fourth quarter turnover was 44.7bn, compared to 45.9bn a year ago. Though car and truck loan profits saved the day, Ford's auto unit made a pre tax loss of 470m in the fourth quarter (compared to a profit of 13m in the year ago period) and its US sales dipped 3.8%. Yesterday General Motor's results also showed its finance unit was a strong contributor to profits. However, Ford is working hard to revitalise its product portfolio, unveiling the Fusion and Zephyr models at the International Motor Show in Detroit. It also brought out a number of new models in the second half of 2004. "In 2004, our company gained momentum, delivering...more new products, and more innovative breakthroughs, such as the Escape Hybrid, the industry's first full hybrid sport utility vehicle," said chairman and chief executive officer Bill Ford." "We also confronted operating challenges with our Jaguar brand and high industry marketing costs," he added. But Ford declined to provide guidance for first quarter 2005. It will do so at a presentation in New York on 26 January. In addition, the company said 2004 net income was affected by a fourth quarter pre tax charge taken to reduce the value of a receivable owed to Ford by Visteon, a former subsidiary. Recent new models introduced by Ford include the Ford Five Hundred and Mercury Montego sedans, the Ford Freestyle crossover, the Ford Mustang, the Land Rover LR3/Discovery, and Volvo S40 and V50 in North America and Europe. Total company vehicle unit sales in 2004 were 6,798,000, an increase of 62,000 units from 2003. Fourth quarter vehicle unit sales totalled 1,751,000, a decline of 133,000 units. For the full year, Ford's worldwide automotive division earned a pre tax profit of 850m, a 697m improvement from 153m a year ago.


The World Anti Doping Agency (Wada) will appeal against the acquittal of Kostas Kenteris and Katerina Thanou on doping charges, if the IAAF does not. The pair were cleared of charges relating to missing dope tests by the Greek Athletics Federation last week. Wada chairman Dick Pound said: "I am convinced the IAAF will appeal against the decision, and we will support them. "But if they accept the federation's ruling we will go before the Court of Arbitration for Sport," he added. Kenteris's lawyer, Gregory Ioannidis, reacted angrily to Pound's comments. "Comments like these only help to embarrass the sporting governing bodies, create a hostage situation for the IAAF and strengthen our case further," he told BBC Sport. Kenteris, 31, and Thanou, 30, had been charged with avoiding drugs tests in Tel Aviv, Chicago and Athens and failing to notify anti doping officials of their whereabouts before the Olympics. They withdrew from the Athens Games after missing a drugs test at the Olympic village on 12 August. But an independent tribunal ruled that the duo had not been informed that they needed to attend a drugs test in Athens. However, their former coach Christos Tzekos was banned for four years by the tribunal. Kenteris and Thanou still have to face trial on charges brought separately by Greek prosecutors of missing the drugs tests and faking a motorcycle accident to avoid testing at the Athens Games.


London mayor Ken Livingstone has again refused to retract a Nazi insult made to a Jewish reporter. Labour's Mr Livingstone, who says he is "standing by" his remarks, had accused an Evening Standard journalist of being like a "concentration camp guard". At his weekly press conference on Tuesday he said his comments were not racist and refused to apologise. He said to media representatives: "If you think they are racist, I think you are wrong." The mayor said his comments would not affect the 2012 Olympic bid and added that his determination to stand up for what he believed in may impress bid chiefs, who arrived in London on Tuesday. "I think it is important that the IOC (International Olympic Committee) members realise that when we get the games...they have a mayor who is not going to panic, change course or get in a great flap but will deliver the games on time and to budget," he said. On Tuesday, the mayor said he would be making a full written response to the chairman of the assembly. Two motions were passed by the London Assembly, which is made up of 25 members elected to examine the mayor's activities, on Monday asking him to apologise and withdraw his comments. The mayor said he had recounted to the assembly a number of "examples of intrusion by journalists" into his, and his family's private life. "I don't suggest for one minute that has anything to do with the Holocaust which was uniquely the most evil chapter in history. "But when reporters say to me I'm only doing this because it's my job... that's the same abdication of moral responsibility at the thin end of the wedge that in its most extreme and horrific version ends up with others being prepared to stand as a concentration camp guard. "We are responsible for our own choices in this life, I always have been and so have reporters." An official complaint has been made to local government watchdogs by the Board of Deputies of British Jews, demanding an investigation by the Standards Board of England. It has the power to suspended or bar him from office but Mr Livingstone said: "There must have been 20 instances like this over the last 24 years. "I have never in response to any of that modified a policy I believed to be right or modified a position I believed to be right and I don't intend to now. "Because if I do that effectively you hand power over your policies and position to the editors of papers." On tape Mr Livingstone, who once worked as a freelance restaurant critic on the paper, is heard asking reporter Oliver Finegold if he is a "German war criminal". Mr Finegold replies: "No, I'm Jewish, I wasn't a German war criminal. I'm quite offended by that." The mayor then says: "Ah right, well you might be, but actually you are just like a concentration camp guard, you are just doing it because you are paid to, aren't you?"


US retailers posted mixed results for December with luxury retailers faring well while many others were forced to slash prices to lift sales. Upscale department store Nordstrom said same store sales were 9.3% higher than during the same period last year. Trendy youth labels also sold well, with sales jumping 28% at young women's clothing retailer Bebe Stores and 32.2% at American Eagle Outfitters. But Wal Mart only saw its sales rise after it cut prices. The company saw a 3% rise in December sales, less than the 4.3% rise seen a year earlier. Customers at the world's biggest retailer are generally seen to be the most vulnerable to America's economic woes. Commentators claim many have cut back on spending amid uncertainty over job security, while low and middle income Americans have reined in spending in the face of higher gasoline prices. Analysts said Wal Mart faced a "stand off" with shoppers, stepping up its discounts as the festive season wore on, as consumers waited longer to get the best bargains. However, experts added that if prices had not been cut across the sector, Christmas sales which account for nearly 23% of annual retail sales would have been far worse. "So far, we are faring better than expected, but the results are still split," Ken Perkins, an analyst at research firm RetailMetrics LLC, told Associated Press. "Stores that have been struggling over the last couple of months appear to be continuing that trend. And for stores that have been doing well over the last several months, December was a good month." Overall, December sales are forecast to rise by 4.5% to 220bn less than the 5.1% increase seen a year earlier. One discount retailer to fare well in December was Costco Wholesale, which continued a recent run of upbeat results with a better than expected 8% jump in same store sales. However, the losers were many and varied. Home furnishings store Pier 1 Imports saw its same store sales sink by a larger than forecast 8.8% as it battled fierce competition. Leading electronics chain Best Buy, meanwhile, missed its sales target of a 3 5% rise in sales, turning in a 2.5% increase over the Christmas period. Accessory vendor Claire's Stores also suffered as an expected last minute shopping rush never materialised, leaving its same store sales 5% higher, compared to a 6% rise last year. Jeweller Zale also felt little Christmas cheer with December sales down 0.7% on the same month last year. "This was not a good period for retailers or shoppers. We saw a dearth of exciting, new items," Kurt Barnard, president of industry forecaster Retail Consulting Group, said. However, one beneficiary of the desertion of the High Street is expected to be online stores. According to a survey by Goldman Sachs Co, Harris Interactive and Neilsen/Net Ratings sales surged 25% over the holiday season to 23.2bn.


Tony Blair has apologised to two families who suffered one of the UK's biggest miscarriages of justice. The prime minister was commenting on the wrongful jailing of 11 people for IRA bomb attacks on pubs in Guildford and Woolwich in 1974. Mr Blair said: "I am very sorry that they were subject to such an ordeal and injustice." He made the apology to members of the Conlon and Maguire families in his private room at Westminster. In a statement recorded for television, Mr Blair said the families deserved "to be completely and publicly exonerated". The families had hoped the apology would be made during Prime Minister's Questions in the House of Commons. However, one of the so called Guildford Four, Gerry Conlon who was wrongly convicted of planting the bombs said the families were delighted with the apology. He said Mr Blair had spoken with "such sincerity", adding: "He went beyond what we thought he would, he took time to listen to everyone. "You could see he was moved by what people were saying. "Tony Blair has healed rifts, he is helping to heal wounds. It's a day I never thought would come." The move followed a huge campaign in Ireland for a public apology after eleven people were wrongly convicted of making and planting the IRA bombs which killed seven people. Mr Blair's official spokesman said no one present at the meeting would "ever forget the strength of feeling of relief that the prime minister's statement brought to them". Most of those convicted were either members or friends of the two families. All were arrested because of a family connection to Gerry Conlon. Mr Conlon's father Giuseppe was arrested when travelling to London from Belfast to help his son. He died while serving his sentence. Also arrested were Anne Maguire and members of her family. Mrs Maguire was the relative with whom Giuseppe planned to stay in London, as well as two family friends. She said it was a "wonderful feeling" to have had the apology and that a weight had been lifted off her shoulders. "The people who were still doubting us should now believe that we were totally innocent," she said. They were all jailed for handling explosives, based on scientific evidence which was later entirely discredited. In October 1989 the Court of Appeal quashed the sentences of the Guildford Four, and in June 1991 it overturned the sentences on the Maguire Seven. Mr Conlon's case was highlighted in the Oscar nominated film In The Name Of The Father, starring Daniel Day Lewis.


A swathe of figures have provided further evidence of a slowdown in the UK property market. The Council of Mortgage Lenders (CML), British Bankers Association (BBA) and Building Societies Association (BSA) all said mortgage lending was slowing. CML figures showed gross lending fell by 4% in November as the number of people buying new homes fell. Elsewhere, the BBA added underlying mortgage lending rose by 4m in November, compared to October's 4.29m. The CML said that loans for new property purchases fell 25% year on year to 85,000 the lowest total seen since February 2003. Data from the CML showed lending fell to just over 25bn in November, from 25.5bn a year earlier. Separate figures from the Building Societies Association showed the value of mortgage approvals loans agreed but not yet made stood 32% lower than at the same time last year, at a seasonally adjusted 2.98bn. The figures come hot on the heels of new data from property website Rightmove which suggested owners must indulge in a "winter sale" and slash prices by up to 8%. Miles Shipside, commercial director at Rightmove, said sellers would have to be "more realistic with their asking prices" to tempt buyers. The average asking price of a home fell by more than 600 from 190,329 in November to 189,733 in December, while the length of time it takes to sell a home rose to 81 days from 53 in the summer. Rightmove said estate agents were set to enter 2005 with a third more properties on their books than a year ago. "Even once the quieter holiday period is over, sellers will find themselves competing with a lot of other properties on the market. In any business, excess supply and low demand means one thing cut prices," Mr Shipside said. "The proof is that some properties that have been appropriately discounted are selling, even in the current market." Overall, asking prices have fallen 3.3% from their July peaks as the equivalent of 6,500 has been cut from an average property. A host of mortgage lenders and economists have predicted that property prices will either fall or stagnate in 2005. "What is apparent is a picture of a slowing market, but one that should remain stable as we return to more normal volumes of lending over 2005 as a whole," CML director general Michael Coogan said. "It's a fairly consistent picture, showing that mortgage demand has fallen back again, which is consistent with a continuing correction in the housing market," Investec economist Philip Shaw said. "However, the figures do suggest only a modest weakening, and we stand by our view that the property market will remain in the doldrums for some time, though a collapse is still unlikely."


Customers trying to get through to call centres are getting impatient and quicker to hang up, a survey suggests. Once past the welcome message, callers on average hang up after just 65 seconds of listening to canned music. The drop in patience comes as the number of calls to call centres is growing at a rate of 20% every year. "Customers are getting used to the idea of an 'always available' society," says Cara Diemont of IT firm Dimension Data, which commissioned the survey. However, call centres also saw a sharp increase of customers simply abandoning calls, she says, from just over 5% in 2003 to a record 13.3% during last year. When automated phone message systems are taken out of the equation, where customers have to pick their way through multiple options and messages, the number of abandoned calls is even higher a sixth of all callers give up rather than wait. One possible reason for the lack in patience, Ms Diemont says, is the fact that more customers are calling 'on the move' using their mobile phones. The surge in customers trying to get through to call centres is also a reflection of the centres' growing range of tasks. "Once a call centre may have looked after mortgages, now its agents may also be responsible for credit cards, insurance and current accounts," Ms Diemont says. Problems are occurring because increased responsibility is not going hand in hand with more training, the survey found. In what Dimension Data calls an "alarming development", the average induction time for a call centre worker fell last year from 36 to just 21 days, leaving "agents not equipped to deal with customers". This, Ms Diemont warns, is "scary" and not good for the bottom line either. Poor training frustrates both call centre workers and customers. As a result, call centres have a high "churn rate", with nearly a quarter of workers throwing in the towel every year, which in turn forces companies to pay for training new staff. Resolution rates the number of calls where a customer's query is resolved to mutual satisfaction are running at just 50%. When the query is passed on to a second or third person a specialist or manager rates rise to about 70%, but that is still well below the industry target of an 85% resolution rate. Suggestions that "outsourcing" relocating call centres to low cost countries like India or South Africa is to blame are wrong, Ms Diemont says. There are "no big differences in wait time and call resolution" between call centres based in Europe or North America and those in developing countries around the world. "You can make call centres perform anywhere if you have good management and the right processes in place," she says. However, companies that decide to "offshore" their operations are driven not just by cost considerations. Only 42% of them say that saving money is the main consideration when closing domestic call centre operations. Half of them argue that workers in other countries offer better skills for the money. But not everybody believes that outsourcing and offshoring are the solution. Nearly two thirds of all firms polled for the survey have no plans to offshore their call centres. They give three key reasons for not making the move: call centre operations are part of their business "core function", they are worried about the risk of going abroad, they fear that they will damage their brand if they join the offshoring drive. The survey was conducted by Sunovate on behalf of Dimension Data, and is based on in depth questionnaires of 166 call centres in 24 countries and five continents. What are your experiences with call centres? Are you happy to listen to Vivaldi or Greensleeves, or do you want an immediate response? And if you work in a call centre: did your training prepare you for your job?


Police are investigating a British National Party leaflet posted to homes in south Wales opposing plans for a new mosque. Anti racism campaigners in Swansea have handed copies to South Wales Police. Swansea's Muslim community is raising money to open a new mosque and community centre in the former St Andrews United Reform Church. The building on George Street has been derelict since the 1980s. Taha Idris, director of the Swansea Bay Race Equality Council, said his organisation contacted police after receiving complaints from the public. "I'm quite shocked to see this sort of leaflet by the BNP in Swansea," he said. "The BNP has tried in the past to get into Swansea and this is another example of them trying again. "I am in no doubt that the BNP are not needed and not wanted here." A South Wales Police spokeswoman confirmed that they were looking at the contents of the leaflet. According to the BNP's website, they have been posted to homes in the Castle ward. The BNP website carries a photograph of party leader Nick Griffin who lives near Welshpool, mid Wales delivering the leaflet. The BNP has denied it is trying to stir up hatred of any race or religion, but argues that they should be able to debate this without fear of arrest. Swansea Unite Against Fascism (UAF) is meeting this week to plan a campaign. Following the death earlier this year of Kalan Kawa Karim, an Iraqi Kurd living in Swansea, it organised an anti racism march in the city that was supported by more than 1,000 people. It is planning its own mail shot campaign and may launch a petition in support of the plans for the mosque. Andy Richards, of Swansea UAF, said the leaflet was exactly what he had come to expect from the BNP. "The people of Swansea will not put up with this." Swansea's Muslim community bought the former church, just across the road from the existing mosque on St Helen's Road, in the late 1990s. Mr Idris said the community was now raising money to renovate the building. "It is a landmark building in Swansea and would otherwise just crumble," he said. "It is the ideal opportunity for the building to be restored and used in the proper manner. "It will be a Muslim community centre. It's a holistic place used for education, weddings, deaths and births." He said space was limited in the current mosque and on some occasions Muslims had to travel to Llanelli for cultural events.


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


Britain's Jason Gardener shook off an upset stomach to win the 60m at Sunday's Leipzig International meeting. Gardener clocked 6.56 seconds to equal the meeting record and finished well ahead of Germany's Marc Blume, who crossed the line in 6.67 secs. The world indoor champion said: "I got to the airport and my stomach was upset and I was vomiting. I almost went home. "I felt a little better Sunday morning but decided I'd only run in the main race. Then everything went perfectly." Gardener, part of the Great Britain 4x100m quartet that won gold at the Athens Olympics, will now turn his attention to next weekend's Norwich Union European Indoor trials in Sheffield. "Given I am still off colour I know there is plenty more in the tank and I expect to get faster in the next few weeks," he said. "It's just a case of chipping away as I have done in previous years and the results will come." Scotland's Ian Mackie was also in action in Leipzig. He stepped down from his favoured 400m to 200m to finish third in 21.72 secs. Germany's Alexander Kosenkow won the race in 21.07 secs with Dutchman Patrick van Balkom second in 21.58 secs. There were plenty of other senior British athletes showing their indoor form over the weekend. Promising 60m hurdler clocked a new UK record of 7.98 seconds at a meeting in Norway. The 24 year old reached the mark in her heat but had to settle for joint first place with former AAA champion Diane Allahgreen in the final. , who broke onto the international scene at the Olympic Games last season, set an indoor personal best of 16.50m in the triple jump at a meeting in Ghent. That leap 37cm short of Brazilian winner Jadel Gregorio's effort was good enough to qualify for the European Indoor Championships. At the same meeting, finished third in 7.27 seconds in a high class women's 60m. The event was won by European medal favourite Christine Arron of France while Belgium rival Kim Gevaert was second. Britain's Joice Maduaka finished fifth in 7.35. Olympic bronze heptathlon medallist made a low key return to action at an indoor meeting in Birmingham. The 28 year old cleared 1.76m to win the high jump and threw 13.86m in the women's shot put.


Teenagers will be able to become MPs under plans unveiled by ministers. In a written statement, Constitutional Affairs Minister Christopher Leslie said the current minimum age of 21 for an MP would be reduced to 18. The proposals follow a recommendation last year by elections watchdog the Electoral Commission. "The government intends to legislate, when parliamentary time allows, to lower the age," said Mr Leslie, who was elected in 1997 at the age of 24. Even if the move does go ahead it is unlikely it will be in place before the next general election, widely predicted for May. The announcement from Mr Leslie who was elected in 1997 in a formerly safe Tory seat prompted calls for a lowering of the voting age to 16. The Votes at 16 alliance said it was a good thing to "engage people" by lowering the candidacy age but argued lowering the voting age would be much more effective. "Candidacy affects only politicians. The voting age affects millions of younger people," said spokesman Alex Folkes. "We would hope that the government will table a bill that is broad enough to allow for amendments to be brought to test support for a reduction in the voting age." Currently candidates in both local and national votes must be 21 while the voting age is 18. That is because the age of majority was reduced to 18 in 1969 but laws dating from 1695 which determine the current voting age stayed in place. Irish republican Bernadette Devlin was one of just a handful of 21 year olds elected to Parliament in the 20th century winning a seat in 1969. But the youngest is understood to have been Tory Edward Turnour, who won the 1904 Horsham by election aged 21 and 144 days and served in Parliament for 47 continuous years. Last April's report by the Electoral Commission said there was no strong argument for leaving the age for standing for election at 21. The commission found the most common approach around the world is for the voting age to be the same as the candidacy age.


How people receive their digital entertainment in the future could change, following the launch of an ambitious European project. In Nice last week, the European Commission announced its Networked Electronic Media (NEM) initiative. Its broad scope stretches from the way media is created, through each of the stages of its distribution, to its playback. The Commission wants people to be able to locate the content they desire and have it delivered seamlessly, when on the move, at home or at work, no matter who supplies the devices, network, content, or content protection scheme. More than 120 experts were in Nice to share the vision of interconnected future and hear pledges of support from companies such as Nokia, Intel, Philips, Alcatel, France Telecom, Thomson and Telefonica. It might initially appear to be surprising that companies in direct competition are keen to work together. But again and again, speakers stated they could not see incompatible, stand alone solutions working. A long term strategy for the evolution and convergence of technologies and services would be required. The European Commission is being pragmatic in its approach. They have identified that many groups have defined the forms of digital media in the areas that NEM encompasses. The NEM approach is to take a serious look at what is available and what is in the pipeline, pick out the best, bring them together and identify where the gaps are. Where it finds holes, it will develop standards to fill them. What is significant is that such a large and powerful organisation has stated its desire for digital formats to be open to all and work on any gadget. This is bound to please, if not surprise, many individuals and user organisations who feel that the wishes of the holder of rights to content are normally considered over and above those of the consumer. Many feel that the most difficult and challenging area for the Commission will be to identify a solution for different Digital Rights Management (DRM) schemes. Currently DRM solutions are incompatible, locking certain types of purchased content, making them unplayable on all platforms. With the potential of having a percentage of every media transaction that takes place globally, the prize for being the supplier of the world's dominant DRM scheme is huge. Although entertainment is an obvious first step, it will encompass the remote provisions of healthcare, energy efficiency and control of the smart home. The 10 year plan brings together the work of many currently running research projects that the EC has been funding for a number of years. Simon Perry is the editor of the Digital Lifestyles website, which covers the impact of technology on media


Eighteen former Enron directors have agreed a 168m ( 89m) settlement deal in a shareholder lawsuit over the collapse of the energy firm. Leading plaintiff, the University of California, announced the news, adding that 10 of the former directors will pay 13m from their own pockets. The settlement will be put to the courts for approval next week. Enron went bankrupt in 2001 after it emerged it had hidden hundreds of millions of dollars in debt. Before its collapse, the firm was the seventh biggest public US company by revenue. Its demise sent shockwaves through financial markets and dented investor confidence in corporate America. "The settlement is very significant in holding these outside directors at least partially personally responsible," William Lerach, the lawyer leading the class action suit against Enron, said. "Hopefully, this will help send a message to corporate boardrooms of the importance of directors performing their legal duties," he added. Under the terms of the 168m settlement 155m of which will be covered by insurance none of the 18 former directors will admit any wrongdoing. The deal is the fourth major settlement negotiated by lawyers who filed a class action on behalf of Enron's shareholders almost three years ago. So far, including the latest deal, just under 500m ( 378.8m) has been retrieved for investors. However, the latest deal does not include former Enron chief executives Ken Lay and Jeff Skilling. Both men are facing criminal charges for their alleged misconduct in the run up to the firm's collapse. Neither does it cover Andrew Fastow, who has pleaded guilty to taking part in an illegal conspiracy while he was chief financial officer at the group. Enron's shareholders are still seeking damages from a long list of other big name defendants including the financial institutions JP Morgan Chase, Citigroup, Merrill Lynch and Credit Suisse First Boston. The University of California said the trial in the case is scheduled to begin in October 2006. It joined the lawsuit in December 2001alleging "massive insider trading" and fraud, claiming it had lost 145m on its investments in the company.


Darren Campbell has set his sights on running quicker than ever after deciding not to retire from sprinting. Campbell, who won Olympic 4x100m relay gold, had been unsure about his future. But he told Five Live's Sportsweek: "I had to get back into training before I could decide because if I didn't have the same hunger I'd have to walk away. "I've started back and I'm thoroughly enjoying it. I'm looking forward to it. I've got to run under 10 seconds (for 100m) and under 20 seconds (for 200m)." Campbell was part of the British quartet who shocked the Americans to win relay gold in Athens in August. The Newport based athlete and team mates Jason Gardener, Marlon Devonish and Mark Lewis Francis were rewarded with MBEs in the New Year Honours List. Campbell's relay triumph made up for his disappointing displays in the individual 100m and 200m events in Athens, when he failed to reach the finals. The 31 year old, who won Olympic 200m silver in Sydney in 2000, said during the Games that a hamstring injury had stopped him from running at his best. He was criticised at the time by former Olympic champion Michael Johnson, who cast doubt on Campbell's injury claims. "To go to Athens and finally get the gold I've been trying to get for 24 years was a big relief," said Campbell. "It was a chance for me to prove that if I'd been fit I would have been challenging for the (individual) medals. "Every season I go and challenge for the medals so why would last season have been any different? "It's just unfortunate that I picked up that injury just before the Olympics." Campbell set his 100m personal best of 10.04secs when he won the European title in Budapest in 1998. And he ran 20.13secs in the quarter finals of the 200m in Sydney on the way to Olympic silver.


Campaigners are to stage a rally calling for a Borders rail link which was closed in 1969 to be reopened. They will mark the 36th anniversary of the line closure, which ran from Edinburgh through the Borders and on to Carlisle, with a walk at Tweedbank. Anne Borthwick, of Campaign for Borders Rail, said reopening the Waverley Line would restore the area's prosperity. MSPs are considering the reintroduction of passenger rail services through Midlothian to the Borders. Campaigners have said that reopening the Waverley Line, which could cost up to 100m, would be a huge economic boost for the Borders. In 2000, Borders Council said the area's economy had suffered since the closure. Ms Borthwick said the lobby group was determined to keep the pressure on the Scottish Executive. "We are hoping that many people will join us in a march to mark the 36th anniversary of the closure of the Waverley Line," she said. "Campaign for Borders Rail is the biggest independent lobby group in Scotland and we have been lobbying tirelessly for the reinstatement of rail services to the Borders and eventually to Carlisle. "We believe that it is time for the Scottish Executive to commit to the first phase of the project by pledging to fund the line between Edinburgh and Tweedbank in the first instance and then investigate extending the line in the future." Ms Borthwick said reopening the line would be a prosperous move and protect the character of the Scottish Borders. A study in 2000, which was commissioned by the executive, Scottish Borders Council, Midlothian Council and Scottish Borders Enterprise, found that a half hourly service from Tweedbank to Edinburgh could cover its operating costs. It also found that a half hourly service from Gorebridge to Edinburgh could cover operating costs and that a freight railway joining the West Coast Main Line at Longtown could also be reinstated.


Labour's leadership put on a show of unity at a campaign poster launch after MPs criticised Tony Blair and Gordon Brown over reports of their rift. Mr Brown was joined at the launch by John Prescott and Alan Milburn, the man controversially put in charge of election planning by Mr Blair. A private meeting on Monday saw normally loyal MPs warn that feuding could jeopardise their election hopes. It follows a new book charting disputes between prime minister and chancellor. The event was the first time Mr Milburn has shared a platform with the chancellor since taking Mr Brown's traditional poll planning role. But the pair chatted amicably and Mr Brown insisted he was happy with his current campaign task. Asked about how he would deal with claims that he did not trust the prime minister, Mr Brown replied: "You can see that our record on the economy is about the British people trusting us to run the economy." He refused to comment on the new book, saying nobody should be distracted from the business of government. Mr Brown later told reporters: "Of course I trust the prime minister." Downing Street cited that comment when reporters' suggested Mr Brown had pointedly failed to deny claims he had once told Mr Blair: "There is nothing you could ever say to me now that I could ever believe". Labour's new posters say Britain is enjoying the lowest inflation since the 1960s, lowest unemployment for 29 years and the lowest mortgage rates for 40 years. They urge voters not to let the Tories take things backwards. Mr Milburn promised a poll campaign "which is upbeat, confident and above all else optimistic about the future of our country". Conservative co chairman Liam Fox derided the photo call, saying: "The show of unity was the worst acting I have seen since Prisoner Cell Block H." Labour had broken promises by raising taxes 66 times and brought the slowest economic growth in the English speaking world, he said. The prime minister and chancellor faced backbench discontent at Monday's meeting of the Parliamentary Labour Party over claims made in journalist Robert Peston's new book. Mr Blair told MPs and peers: "I know from everyone here, in Cabinet and government, nothing is going to get in the way of a unified Labour Party with a unified position and winning the third term people desperately need." Labour's Paul Flynn said the pair had had a "scorching" from MPs. On Tuesday, deputy prime minister Mr Prescott told BBC News: "They told us very clearly, it was the troops telling the leaders: get in line." The new book claims Mr Prescott hosted a dinner in November 2003 where the prime minister told Mr Brown he would stand down before the next election because he had lost trust over the Iraq war. Mr Blair then changed his mind in June 2004, after Cabinet allies intervened and amid suspicion the chancellor was manoeuvring against him, writes Mr Peston. Mr Prescott said there was a dinner but the discussions were confidential. "Of course as a waiter for 10 years I have a professional ability here," he joked.


Queens Park Rangers keeper Chris Day is set to join Preston on a month's loan. Day has been displaced by the arrival of Simon Royce, who is in his second month on loan from Charlton. QPR have also signed Italian Generoso Rossi. R's manager Ian Holloway said: "Some might say it's a risk as he can't be recalled during that month and Simon Royce can now be recalled by Charlton. "But I have other irons in the fire. I have had a 'yes' from a couple of others should I need them." Day's Rangers contract expires in the summer. Meanwhile, Holloway is hoping to complete the signing of Middlesbrough defender Andy Davies either permanently or again on loan before Saturday's match at Ipswich. Davies impressed during a recent loan spell at Loftus Road. Holloway is also chasing Bristol City midfielder Tom Doherty.


Tough scrummaging prop Julian White is expecting a resurgent Wales to give him a rough ride in England's Six Nations opener in Cardiff on Saturday. The Leicester tight head is in the form of his life, making the England number three shirt his own. But he knows Wales will put his technique under immense scrutiny. "The Welsh scrum is a force to be reckoned with," he told BBC Sport. "They have made a lot of changes for the better over the last few years." White is also impressed with the Welsh pack's strength in depth. "Gethin Jenkins is starting at loose head for them. He has played a bit at tight head but I think his favoured position is loose head and he is very good," he added. The 31 year old has made a massive contribution to the England and Leicester cause of late and is arguably the form tight head prop in the world. He destroyed South Africa's Os du Randt in the scrum at Twickenham last autumn to give England the platform for an impressive 32 16 victory. Leicester, who signed White from Bristol when the West Country side were relegated from the Zurich Premiership in the summer of 2003, have also been aided by White's presence this season. The Tigers are sitting pretty at the top of the Premiership table and have also booked their place in the last eight of the Heineken Cup. "I am pleased with my form," he said. "But my form is helped by the people I play with at Leicester people like Martin Johnson and Graham Rowntree. "It's been a good season so far and to be in the starting XV for the first game of the Six Nations is what every player wants. "I am delighted with the way things have gone but we have to get it right this weekend." White is now one of the more experienced members of the England squad which takes to the field on Saturday. Injuries have taken their toll and coach Andy Robinson has been deprived of Richard Hill, Jonny Wilkinson, Martin Corry, Mike Tindall, Will Greenwood and Stuart Abbott. And with 27 caps and a World Cup winner's medal to his name, White is now in a position to offer his experience to youngsters such as centres Matthew Tait and Jamie Noon. "I don't know how much experience a tight head can give a centre but you are there to give them a pat on the back if things go wrong or to be there if they want to talk in any way," he added. "When I first came into the squad, people like Jason Leonard and Martin Johnson were the first to come over and talk through things and help out. "It gives you a lot of confidence when people like that speak to you. "I was in awe of a lot of them so to sit down and speak with them and realise you are on the same wavelength is good." White missed the vast majority of last year's Six Nations because of a knee injury and is raring for the 2005 event to get going. And that is despite the opening game taking place amid the red hot atmosphere in Cardiff. "I enjoy the atmosphere. The Millennium Stadium is probably one of the best stadiums in the world," he said. "To go down there and hear the shouting and the singing it's one of my favourite places to play. "This is probably the most even Six Nations for a long time. England, Ireland, France and Wales are all contenders. "On form, Ireland should be favourites but you just don't know that's the great thing about this tournament."


Strong sales outside western Europe helped Renault boost its profits by more than 40% in 2004 although the firm warned of lower margins this year. France's second largest carmaker enjoyed a healthy 43% rise in net profits to 2.4bn euros ( 3.1bn; 2.9bn) as sales rose 8% to 40.7bn euros. The firm said strong demand outside western Europe and the good performance of its Megane range lifted its results. Chairman Louis Schweitzer said 2004 had been a "great year" for the firm. Renault sold more than 2.4 million vehicles in 2004, an increase of 4% on the previous year. Growth came mainly from outside western Europe, with particularly strong sales in Turkey, Russia and North Africa. In total, sales outside western Europe Renault's core market rose 16.5%. Japanese carmaker Nissan in which Renault owns a 44% stake contributed 1.7bn euros in net income over the year. Nissan chairman Carlos Ghosn is to succeed Mr Schweitzer at the head of Renault later this year. Renault said the outlook for the industry in Europe this year was "stable", with small growth forecast in other regions. The firm will benefit from the launch of a new Clio model in the coming year and the roll out of the Logan in many markets. However, the firm said it expected operating margins to be lower in 2005, at 4% of sales as opposed to 5%. "In a sluggish market and an environment impacted by the rise in raw material prices, Renault intends to continue to grow its global sales," the company said in a statement.


David Beckham expressed his relief at Real Madrid's passage to the Champions League knockout phase. After Real's 3 0 win at Roma, the England skipper admitted another season of under achievement would not be tolerated at the Bernabeu stadium. Beckham said: "It's expected of Madrid to get through, but it's a relief for the club and players to have won. "We lost momentum last season but we cannot afford to to go another season without winning anything." Real's finish as runners up in their Champions League group means they cannot face his old club Manchester United in the next round. But Real could be drawn against other Premiership hopefuls, Arsenal or Chelsea, who won their respective groups. "It's going to be great whoever we play, even if we don't get either of the two English teams."


Former Labour leader Neil Kinnock has officially been made a life peer during a ceremony in the House of Lords. He will be known Baron Kinnock of Bedwellty after his former constituency. Lord Kinnock who led Labour from 1983 until 1992 was until recently one of Britain's EU commissioners. A former critic of the House of Lords, he has said he will use the Upper House to advocate its reform and to talk on issues like higher education. "I accepted the kind invitation to enter the House of Lords as a working peer for practical political reasons," he said when his peerage was first announced. "It is a good base for campaigning on national issues like education, sustainable transport, industrial change and the ageing society and global concerns, particularly poverty and oppression." During his induction into the Upper House, Lord Kinnock was accompanied by Lords Leader Baroness Amos and Baroness Royall of Blaisdon, a former aide to the ex Labour leader. It has been a long journey for the new Lord Kinnock from his earliest days as a rebellious youngster in the south Wales valleys. Born in 1942 in Tredegar to a miner father and nurse mother, he attended Lewis Boys' School in nearby Pengam, known then as the "Eton of the valleys". From there he went to Cardiff University, where he met his future wife Glenys, now a Labour MEP. After a brief career as a tutor for the Workers' Educational Association, he became an MP at the age of just 28 for his home seat of Bedwellty (later Islwyn). He gained a reputation as a left wing firebrand, voting against his own Labour government's spending cuts proposals in 1975, and later rejecting a junior post in James Callaghan's administration. But he joined the shadow cabinet in 1980, and after Labour's heavy defeat in the 1983 he was elected leader. He took on the far left Militant Tendency and began the long process of returning his party to the centre ground. He was not expected to win the 1987 election, when Margaret Thatcher was still riding high, but was bitterly disappointed to lose the next one in 1992 to John Major, and stepped down. He remained an MP until 1995, when he resigned to become European commission for transport. Four years later he became vice president of the European Commission, with responsibility for internal reform. As he assumes the title of Lord Kinnock, he has also become chairman of the British Council, which promotes the UK's reputation for arts, science and education.


Channel Tunnel operator Eurotunnel has seen sales fall in the face of the upsurge in European low cost airlines. The firm said sales were down 4% in 2004 to 789m euros ( 1.03bn; 548m). "The impact of the development of no frills airlines is being felt ever more strongly," said chief executive Jean Louis Raymond. Income from its vehicle carrying shuttle services fell 7%, although 15% more passengers meant a 2% rise in railway revenue. The cross Channel truck market is improving, Eurotunnel said, but warned that it was not benefiting since much of the traffic was in containers destined for ports. The passenger only trains which use the tunnel are run by a separate company, Eurostar. Eurotunnel is still struggling with debts of more than 6bn euros. The company is currently kept afloat by the 200 plus banks to whom it owes the money. A shareholder revolt threw out the old board in 2004. But the BBC's business editor, Jeff Randall, said the banks could yet step in and take over altogether. "At the moment it can't even service the interest on its debt," he said. "This is a company in the departure lounge of life."


US retail giant Federated Department Stores is to buy rival May Department Stores for 11bn ( 5.7bn). The deal will bring together famous stores like Macy's, Bloomingdale's and Marshall Field's, creating the largest department store chain in the US. The combined firm will operate about 1,000 stores across the US, with combined annual sales of 30bn. The two companies, facing competition from the likes of Wal Mart, tried to merge two years ago but talks failed. Sources familiar with the deal said that negotiations between the two companies sped up after May's chairman and chief executive Gene Kahn resigned in January. As part of the deal, Federated owner of Macy's and Bloomingdale's will assume 6bn of May's debt, bringing the deal's total value to 17bn. Directors at both companies have approved the deal and it is expected to conclude by the third quarter of this year. May has struggled to compete against larger department store groups such as Federated and other retailers such as Wal Mart. Federated expects the merger to boost earnings from 2007 but the deal will cost it 1bn in one off charges. "We have taken the first step toward combining two of the best department store companies in America, creating a new retail company with truly national scope and presence," said Terry Lundgren, Federated's chairman. Some analysts see the merger as a rescue deal for May. "Without this deal May would have been, to put it bluntly, washed up," said Kurt Barnard, president of Barnard's Retail Consulting Group. Federated has annual sales of 15.6bn, while May's yearly sales are 14.4bn.