World markets remain cautious on the likelihood of a deal
The euro halted its fall against the dollar on Thursday as investors wait for more details on the rescue package for the Greek economy.
The currency has recovered slightly from a one-year low hit on Wednesday amid fears that the Greek crisis could spread to other parts of the eurozone.
US President Barack Obama has added his concerns over possible contagion.
In a telephone call to German Chancellor Angela Merkel, the president called for "resolute action".
Investor confidence took yet another knock on Wednesday when rating agency Standard & Poor's downgraded Spain's debt - reflecting a loss of confidence in another eurozone country.
Following that news, the euro fell to a one-year low of below $1.312. It has since recovered to $1.323.
But investor confidence remains muted due to the lack of detail on any bail-out for the Greek economy.
On Wednesday, Angela Merkel joined the head of the International Monetary Fund (IMF), Dominique Strauss-Kahn, in calling for talks on a rescue deal to be sped up.
"It is perfectly clear that the negotiations with the Greek government, the European Commission and the IMF need to be accelerated," she said.
"We hope they can be wrapped up in the coming days."
But concerns remain over how much money Germany will pledge as Europe's biggest economy, and what conditions it will attach to the funds.
Currently, a loan package worth 45bn euros ($59bn; £39bn) is being discussed, some of which must be delivered by the middle of May if Greece is to avoid defaulting on its immediate debt repayments.
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Twenty-eight children and three adults have been injured by a man with a knife at a kindergarten in eastern China, the third such attack in a month.
Officials said five of the injured were in a critical condition in hospital after the incident in Jiangsu province.
It follows a knife attack on Wednesday in the south of the country, in which 16 pupils and one teacher were injured.
Earlier that day, a doctor convicted of stabbing eight children to death last month in Fujian province was executed.
The alleged assailant in Thursday's attack at the Zhongxin kindergarten, in the city of Taixing, Jiangsu province was detained afterwards.
Police said he was a 47-year-old unemployed local man and had been carrying a 20cm (8 inch) knife, the state-run Xinhua news agency reported.
"The gate-keeper, teachers, and students were attacked. The injured are receiving treatment in hospital. We don't have any reports of deaths yet," an official with the Taixing city government told AFP news agency.
Grudges
The injured were attacked as lessons got underway this morning, reports the BBC's Shanghai correspondent Chris Hogg.
Most of the children were four year olds from the same class.
ANALYSIS
By Chris Hogg, BBC News, Shanghai
The spate of attacks on schools is unsettling for the Chinese. This kind of violent crime is usually quite rare here.
Already there are calls to step up security in and around educational institutions. But that would be expensive.
In reality there is probably little that can be done to prevent this kind of incident taking place.
"The injured have been sent here one after another," an unnamed official at the Taixing No 1 People's hospital told the Associated Press news agency.
"The doctors are now trying their best to save them."
China has witnessed several school attacks in recent years, most blamed on people with personal grudges or suffering from mental illness.
Since a spate of attacks in 2004, many schools have employed professional guards.
Our correspondent says the attacks on schools are unsettling in a country where such violent attack are rare, and have led for calls for increased security at schools.
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A mourning altar has been set up at the Pyeongtaek naval base
An official funeral is taking place for 46 South Korean sailors who died when their warship sank last month.
The ceremony at a naval base in Pyeongtaek, south of the capital Seoul, is the culmination of five days of official mourning for the crew members.
Investigators say the corvette Cheonan sank following a "close-range" blast which split the ship in two.
Many South Koreans believe North Korea sank the ship but Pyongyang has denied any responsibility.
The BBC's John Sudworth says a siren was sounded in the capital city to mark the beginning of the funeral service, taking place at the 2nd Fleet Command, the home port of the warship.
In the lead up to Thursday's mass funeral, thousands of mourners had been lining up at altars across the country to honour the lost sailors.
Sombre ceremony
The ship itself, now a shattered wreck salvaged from the sea bed, is being examined just a few metres away by an international team of naval experts trying to find out what caused it to explode and sink close to the North Korean border last month.
But as well as the sense of grief there is a growing sense of suspicion, that despite its denials, North Korea may have been involved in the sinking, our correspondent says.
South Korean President Lee Myung-bak visited one of the altars on Monday and wrote of the sailors' "lofty sacrifices" in a book of condolence.
We'll never forgive whoever inflicted this great pain on us
Navy chief Kim Sung-chan
At the funeral he and his wife placed white chrysanthemums, burned incense and bowed before the framed photos of the soldiers, while buglers played taps.
Flags flew at half mast and families wept.
"We'll never forgive whoever inflicted this great pain on us," said the navy chief Kim Sung-chan.
"We will track them down to the end and we will, by all means, make them pay for this."
The funeral is for all 46 sailors, including the six whose bodies have not been recovered.
Their families have asked that they be considered killed in action.
Fifty-eight sailors were rescued after the explosion on 26 March.
A preliminary investigation said the explosion which sank the ship was external, fuelling suspicions of North Korean involvement.
Earlier this week the South Korean Defence Minister said that a torpedo strike was among the most likely causes.
So far the investigation team has said only that they have found evidence of an underwater explosion and it is not known whether fragments of any weapon have been discovered.
The two countries are still technically at war since the 1950-53 conflict ended without a peace treaty.
Over the years there have been several naval clashes off the west coast of the peninsula, in the area where the Cheonan went down.
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Gordon Brown's preparations for the final TV debate have been over-shadowed by negative headlines after he called a pensioner he had met "bigoted".
The Labour leader has apologised to Gillian Duffy from Rochdale, for his comment, which was caught on a microphone.
The BBC's Nick Robinson said Mr Brown would be keen to move on and focus on the economy ahead of the BBC debate.
Mr Brown will face David Cameron and Nick Clegg in Birmingham later.
'Disaster'
The party leaders are expected to spend much of the day preparing for the debate, which will focus on the economy and is being screened on BBC One at 2030 BST.
On Wednesday the Scottish National Party failed in a legal bid to stop the debate being broadcast in Scotland, if they were not represented.
Conservative leader David Cameron is to visit a hospital and discuss his party's plans to create a £200m cancer drugs fund, while Nick Clegg is to focus on Liberal Democrat plans to help older people.
Anticipating the debate, Mr Brown told activists: "You have seen me in one context on the TV [today]. I hope [tomorrow] you see once more someone not just proud to be your leader but also someone who understands the economic challenges we face."
Mrs Duffy, a life-long Labour supporter, challenged Mr Brown on issues including immigration from eastern Europe and the national debt. Afterwards Mr Brown, who was still wearing a broadcast microphone, was heard to tell an aide that the meeting "was a disaster" and call Mrs Duffy a "bigoted woman".
'Dreadful mistake'
He went to the pensioner's house to apologise in person and emerged to say that he had made a mistake and "misunderstood" some of the words she had used.
Mrs Duffy has not made any public comment since Mr Brown's 40-minute visit to her home although it is reported she is being advised by a public relations firm.
When she was first told about Mr Brown's comments, Mrs Duffy said she was "very upset" as she had only asked questions which "anyone would ask".
Mrs Duffy said she will no longer be voting Labour
In an e-mail to Labour members Mr Brown said he regretted the "hurt" he had caused Mrs Duffy who he said was "the kind of person I came into politics to help".
Senior Labour figures acknowledged the incident was a setback for Labour, eight days before the 6 May election, but stressed Mr Brown did not mean what he said and wished he had not said it.
Home Secretary Alan Johnson told the BBC immigration was not "off limits", Mrs Duffy represented a "large swathe" of voters and had been an "innocent victim".
But he said most people said things in private they later regretted and it was to Mr Brown's credit that he went to apologise face to face to Mrs Duffy.
"Gordon's not slick, he's not one of these people who gets up in the morning in a kind of sophisticated approach to politics," he said.
"He's a very human person, we all know that. This was a dreadful mistake, there's no getting around that but we will get on tonight to talking about the economy and the important issues."
Polls
The opposition parties have refrained from commenting on the episode in detail, the Conservatives saying it spoke for itself and the Lib Dems saying Mr Brown had been right to apologise.
But former Conservative leader Michael Howard told the BBC's Campaign Show it was damaging for Labour as it showed they could not accept any legitimate criticism over immigration policy.
Ex-Lib Dem leader Charles Kennedy said "in the minds of some it will do damage" to Mr Brown but he thought attention would quickly move on to Thursday's debate.
Complaining about not being given a place in the debate, SNP leader Alex Salmond told the BBC: "I think it's unfair to the SNP, I think it's unfair for Scotland.. There are underlying principles here of access and fairness which have to be thought through and debated properly."
The latest polls - carried out before Wednesday's encounter - continue to suggest a hung Parliament remains a possibility.
A Comres poll for the Independent/ITV News put the Conservatives up three points on 36%, Labour unchanged on 29% and the Lib Dems down three at 26%. A YouGov poll for the Sun, meanwhile, puts the Tories up a point on 34%, the Lib Dems up three points on 31% and Labour down two points to 27%.
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The Pentagon says people support President Karzai in 29 key districts
The US defence department has said that only a quarter of what it regards as key regions in Afghanistan support the government of President Hamid Karzai.
The Pentagon said in a report that much of the country was either neutral to the central Afghan authorities or supportive of the Taliban insurgency.
It blamed government corruption and lack of efficiency as major reasons for people's distrust of the authorities.
Afghanistan has seen a sharp increase in violence in the past year.
The Pentagon said that despite this, opinion polls suggested Afghan people believed their security was improving.
Widespread fraud
In its 152-page report, released ahead of President Karzai's upcoming visit to Washington, the Pentagon said: "While Afghanistan has achieved some progress on anti-corruption... real change remains elusive and political will, in particular, remains doubtful."
The establishment of effective governance is a critical enabler for improving development and security
Pentagon report
It said people support President Karzai's government in only 29 of the 121 Afghan districts considered most strategically important in the war effort.
President Karzai won the 2009 presidential election, which was criticised for widespread fraud.
Separately, the report said that Taliban militants were coming under "unprecedented pressure".
"From the insurgents' perspective, this strain has been compounded by the recent high-profile arrests of several Pakistan-based insurgent leaders by the Pakistani authorities and the removal of many Afghanistan-based commanders," it said.
Correspondents say that the reputation of President Karzai - once a darling of the international powers - has plummeted following repeated accusations from the US and other nations that he has allowed unchecked corruption.
The report said that popular anger at his government, which is widely seen as corrupt and inefficient, has allowed the Taliban to "perceive 2009 as their most successful year".
"Expanded violence is viewed as an insurgent victory, and insurgents perceive low voter turnout and reports of fraud during the past presidential election (in August 2009) as further signs of their success," it said.
Pentagon figures show that "violence is sharply above the seasonal average for the previous year - an 87% increase from February 2009 to March 2010".
"Although the overall security situation has stabilised somewhat since the end of 2009, violence during the current reporting period is still double that for the same period in 2008-2009," the report said.
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Smoking-related illnesses kill more than 15,000 Australians every year
Australia is to announce new rules which will force tobacco companies to use plain packaging, reports say.
Manufacturers will be required to drop all colour and branding logos from cigarette packets within two years.
The move, which is being billed as a world-first, comes after recommendations were made by the World Health Organisation.
PM Kevin Rudd, who is to hold elections this year, aims to cut smoking-related deaths to under 10% by 2018.
The decision is expected to be confirmed by Australia's Health Minister, Nicola Roxon.
Smoking kills 15,000 Australians every year and is the largest preventable cause of disease and death in the country.
The law will require all tobacco products to be sold in a standard colour and style with government health warnings by 2012.
It follows regulations on tobacco advertising which have helped cut smoking significantly, from 30.5% of the population aged 14 and over in 1988 to 16.6% in 2007.
An Australian think-tank has said that the rules amounted to compulsory acquisition of physical property and warned that it could result in expensive compensation claims.
In 2008, the Australian tobacco market generated revenues of $7.6 bn (£5m).
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A trainer at a US aquatic park was dragged to her death by a killer whale after her long hair drifted into the animal's mouth, a police report says.
Trainer Dawn Brancheau was lying nose-to-nose with the orca in shallow water when the incident happened at the SeaWorld park in Florida.
She escaped to the surface briefly but the animal struck her twice more before she was dragged under again.
Ms Brancheau, 40, was killed while performing with 'Tilikum' in February.
The medical examiner ruled that she died from drowning and traumatic injuries.
SeaWorld employee Lynn Shaber, said the whale, Tilikum, was "a possessive animal" and she had therefore known Ms Brancheau was in trouble when she saw her underwater, according to the Orange County Sheriff's Office report.
"He normally keeps things that he has and will not release them," the report quoted her as saying.
Rescue attempts
Jan Topoleski, another trainer, sounded an alarm when he saw Ms Brancheau's hair was caught in the orca's mouth. By the time he looked back, she was underwater.
She managed to free herself and made it to the surface but was hit again by Tilikum at least twice, the police report said.
Workers were quick to use nets to try to capture the whale but it took half an hour for them to succeed in freeing her body.
Employees used nets and threw food at the whale in an attempt to distract him but one worker said it only made the animal more agitated.
Moving from pool to pool in the complex, they eventually captured Tilikum and released Ms Brancheau's body, before realising that the whale still had her arm.
Ms Brancheau, a trainer with 16 years' experience, was attacked in front of an audience at the SeaWorld park on 24 February.
The killer whale was also reportedly involved in the death of a female trainer in Canada in 1991.
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World markets remain cautious on the likelihood of a deal 
We'll never forgive whoever inflicted this great pain on us 
