Greece crisis: investors wait on deal details

Posted on Thursday, April 29, 2010
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A man looks at the status of the Nikkei stock exchange in Tokyo (28 April 2010) 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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Man stabs 28 children in China kindergarten attack


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Map

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
Chris Hogg
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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South Korea holds funeral for sailors killed in sinking


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Mourning altar at Pyeongtaek naval base
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 'bigot' row overshadows last TV debate


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The moment Gordon Brown was caught on microphone

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.

'BIGOTED' JIBE COVERAGE
Gillian Duffy and Gordon Brown

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".

Gillian Duffy and Gordon Brown
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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US releases damning Afghan report ahead of Karzai visit


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Hamid Karzai
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 Pentagon
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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Australia plans plain-packaging rule for cigarettes


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Woman smoking a cigarette
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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SeaWorld killer whale 'caught trainer's hair'


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File pic of Dawn Brancheau and an orca at SeaWorld
Trainer Dawn Brancheau had 16 years' experience

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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Chile boy 'kills brother' over PlayStation row


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PlayStation 3 (file)
Police said the boy had told them that "things got out of control"

A 16-year-old boy in Chile has been charged with killing his elder brother in a fight over the use of a PlayStation, police have said.

The boy was angered when his 18-year-old brother turned on the games console without his permission.

He allegedly grabbed a knife from the kitchen and stabbed him in the chest.

Police said the youth had told them that "things got out of control". He could face five years in prison under the charges filed.

Homicide investigator Gilberto Opazo said the brothers had been abandoned by their mother and lived in care for 10 years before a Belgian woman took them in.

She was visiting Belgium when the death occurred, he added.

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Panama's Manuel Noriega extradited from US to France

Posted on Monday, April 26, 2010
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Noriega's lawyer, Frank Rubino, said he was shocked the US government had not told him of the extradition

The former Panamanian leader, Manuel Noriega, has landed in France after being extradited from the US, where he has served more than 20 years in jail.

US Secretary of State Hillary Clinton earlier signed a "surrender warrant" after all judicial challenges ended.

Noriega was convicted in France in his absence in 1999 for laundering money but is likely to face a new trial.

Noriega is now expected to go before prosecutors in Paris to be notified of the arrest warrant against him.

The 76-year-old had wanted to be sent back to Panama after finishing his 17-year jail sentence in 2007.

But in February the US Supreme Court rejected his final appeal against extradition to France.

ANALYSIS
BBC's Steve Kingstone
Steve Kingstone, BBC News, Washington

Manuel Noriega had been in US custody since 1990, after the US military invaded Panama during the administration of the first President Bush.

Convicted of cocaine trafficking and racketeering, he served a sentence that ended three years ago. But he had remained in custody pending extradition to France, where he was convicted - in his absence - of money laundering in 1999.

Noriega's lawyers say his treatment breached the Geneva Convention, as he had been classified as a prisoner of war when he was brought to the US. His legal team opposed his extradition to France, but the US Supreme Court ruled against him.

His lawyers hope that once he's landed in Paris he'll at least be granted a second trial.

Noriega is expected to be brought before a judge later on Tuesday; his lawyer will probably argue he should be bailed pending further proceedings, though one suspects that is extremely unlikely.

Panama's government said it respected the "sovereign decision" the state department took to extradite Noriega.

But it insisted it would seek his return to serve outstanding prison sentences there.

Noriega was escorted on to an Air France passenger jet at Miami International Airport on Monday afternoon, shortly after Mrs Clinton signed the extradition order, US officials said.

French prison officials took custody of him once he was on board.

Noriega's plane arrived in the French capital shortly before 0800 local time (0600 GMT) on Tuesday.

A spokesman for the French justice ministry, Guillaume Didier, said that Noriega would appear before prosecutors to be notified of the arrest warrant against him and a judge would decide whether to place him under temporary detention until his case was referred to a criminal court.

Mr Didier said France had been notified of the extradition two weeks ago.

But Noriega's lawyer in Miami, Frank Rubino, told the BBC he had not been notified and had only learned of his client's transfer from the media.

"Usually the government has - does things in a more professional manner and respects common courtesy and we're shocked that they didn't," he said.

"I'm surprised that they didn't put a black hood over his head and drag him out in the middle of the night," he added.

'Prisoner of war'

Noriega was Panama's military intelligence chief for several years before becoming commander of the powerful National Guard in 1982 and then de facto ruler of the country.

He had been recruited by the CIA in the late 1960s and was supported by the US until 1987.

But in 1988 he was indicted in the US on charges of drug trafficking.

WHO IS MANUEL NORIEGA?
Manuel Noriega, pictured in 1996
Became de facto ruler of Panama in 1983, head of defence forces
Formerly one of Washington's top allies in Latin America
US later accused him of drug-trafficking and election-rigging
Surrendered to invading US troops in 1990 and was flown to the US
Also faces a 20-year sentence at home imposed by Panama court

After a disputed parliamentary election the following year, Noriega declared a "state of war".

A tense stand-off followed between US forces stationed in the Panama Canal zone and Panamanian troops.

By mid-December, the situation had worsened so much that President George H W Bush launched an invasion - ostensibly because a US marine had been killed in Panama City, although the operation had long been planned.

Noriega initially took refuge in the Vatican embassy, where US troops bombarded him for days with deafening pop and heavy metal music.

He eventually surrendered on 3 January 1990 and was taken to Miami for trial.

In 1992, he was convicted of drug trafficking, money laundering and racketeering.

He was handed a 40-year prison sentence, later reduced to 30 years, and then 17 years for good behaviour.

Noriega was convicted in absentia in France in 1999 for allegedly using $3m (£1.9m) in proceeds from the drug trade to buy luxury apartments in Paris, and sentenced to 10 years in prison.

Shortly before the completion of his US jail sentence, the French government sought Noriega's extradition.

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US Republicans block debate of finance rules reform


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Wall Street
Wall Street has fiercely resisted President Obama's bank reforms

US Republican senators have blocked moves to start debating a bill to introduce the most significant reforms to financial regulations for 60 years.

Needing 60 votes in the 100-seat Senate to begin debating the bill, Democratic leaders fell three votes short.

Democratic Senator Ben Nelson joined 39 Republicans in voting against it.

Republicans say the bill does not go far enough in its reforms, while Democrats say their opponents want to protect wealthy corporate interests.

Both parties say they expect the overhaul will eventually be approved.

Correspondents say that with Wall Street reeling from a fraud case against Goldman Sachs they are eager to act before November's Congressional elections.

Goldman executives are due to appear before a Senate committee later. On Monday, the committee said the bank had made billions of dollars at its clients' expense during the housing market collapse.

'Obstruction'

Minutes after Monday's procedural vote, President Barack Obama said he was "deeply disappointed" that Republicans had rejected a debate and urged senators to put the interests of country ahead of party.

MARDELL'S AMERICA
Mark Mardell
Win or lose, in the short term at least, Democrats win
Mark Mardell
BBC North America editor

"Some of these senators may believe that this obstruction is a good political strategy, and others may see delay as an opportunity to take this debate behind closed doors, where financial industry lobbyists can water down reform or kill it altogether," he said.

"But the American people can't afford that."

It is likely that the Democrats will try again later this week to push through a debate. Senate Majority Leader Harry Reid switched his vote to "no" at the end - a manoeuvre that will enable him to call for a new vote as early as Tuesday.

"The only thing Republicans stand for is standing together," he said.

The Democratic dissenter, Sen Nelson, said his vote reflected concerns about the bill from businessmen in his home state.

Nebraska-based billionaire Warren Buffett has reportedly been lobbying to exempt existing derivatives from new regulations.

Analysts say that with neither side appearing to be willing to compromise over the shape of the bill, further delays look likely.

All of us want to deliver a reform that will tighten the screws on Wall Street, but we're not going to be rushed
Mitch McConnell
Republican Senate leader

Last-minute talks had already taken place to try to reach a compromise before the vote.

But Senate Minority leader Mitch McConnell had urged his side to stand firm.

"All of us want to deliver a reform that will tighten the screws on Wall Street. But we're not going to be rushed on another massive bill based on the assurances of our friends on the other side," he said.

Democrats and their two independent allies control 59 Senate seats, but had needed at least one Republican vote to overcome delaying tactics.

The bill's supporters say it would tackle financial institutions that are "too big to fail", putting in place a framework that would mean taxpayers do not fund any future bailouts.

Among the bill's proposals are changes to the derivatives market and tougher legislation to protect consumers.

Mr Obama has made reining in Wall Street a cornerstone of his presidency.

In a speech last week to the financial community, he attacked the army of lobbyists in Washington employed by banks to oppose his changes.

A poll published in the Washington Post on Monday suggests two-thirds of Americans support stricter financial regulations

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Chocolate lovers 'are more depressive', say experts


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Chocolate
Chocolate has a "feel-good" factor, researchers say

People who regularly eat chocolate are more depressive, experts have found.

Research in Archives of Internal Medicine shows those who eat at least a bar every week are more glum than those who only eat chocolate now and again.

Many believe chocolate has the power to lift mood, and the US team say this may be true, although scientific proof for this is lacking.

But they say they cannot rule out that chocolate may be a cause rather than the cure for being depressed.

In the study, which included nearly 1,000 adults, the more chocolate the men and women consumed the lower their mood.

Those who ate the most - more than six regular 28g size bars a month - scored the highest on depression, using a recognised scale.

None of the men and women were on antidepressants or had been diagnosed as clinically depressed by a doctor.

'Mood food'

Dr Natalie Rose and her colleagues from the University of California, San Diego, say there are many possible explanations for their findings, and that these need to be explored.

It may simply be that people who are depressed crave chocolate as a "self-treatment" to lift mood, or depression may drive the craving without any beneficial effect.

"Alternatively, analogous with alcohol, there could be short-term benefits of chocolate to mood with longer-term untoward effects," they told the journal.

Chocolate could even be a direct cause of depression, the researchers added.

Bridget O'Connell, of the mental health charity Mind, said: "The way we feel and what we eat can be closely related, and many people will be familiar with craving particular foods or comfort eating when they are stressed, under pressure or depressed.

"However, as this study shows, more research is needed to determine exactly what the relationship between chocolate and our mood is."

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Iraq poll uncertainty threatens civilians, says Amnesty


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Men carry the coffin of a relative killed by a bomb in Baghdad (23 April 2010)
A string of bombings across Baghdad on Friday killed more than 60 people

Continuing political uncertainty in Iraq is contributing to a rise in the number of civilian deaths, a new report by Amnesty International has warned.

The human rights group said that more than 100 civilians were killed in the first week of April alone.

Many were targeted by armed groups because of their religious, ethnic or sexual identity, it said.

Last month's parliamentary election returned an inconclusive result, and political tensions have been rising.

On Monday, former prime minister Iyad Allawi said his Iraqiya alliance would appeal against having 52 candidates in the poll disqualified.

Election officials have ruled that votes for the candidates were invalid, because of their alleged links to the outlawed Baath Party.

Correspondents say the decision is likely to affect two prospective members of the Council of Representatives from Iraqiya, which is just two seats ahead of Prime Minister Nouri Maliki's State of Law bloc.

Repatriation

Seven years after the US-led invasion, "Iraqis are still living in a climate of fear", according to the report published by Amnesty.

The continuing uncertainty as to when a new government will be formed following last month's election could well contribute to a further increase of violent incidents of which civilians are the main victims
Malcolm Smart,
Amnesty International

The organisation accuses the Iraqi authorities of not doing enough to protect civilians - in particular ethnic and religious minorities, as well as women and homosexuals.

Human rights defenders, journalists and political activists are among those who have been killed or maimed because of their work, the report warns.

"Over and over they are failing to help the most vulnerable in society," said Malcolm Smart, director of Amnesty's Middle East programme.

The authorities frequently fail to carry out thorough and impartial investigations into attacks on civilians, arrest suspects or bring perpetrators to justice, the report says.

As a result of the insecurity, hundreds of thousands of Iraqis, including a disproportionately high number of minority communities, have been forced to flee their homes, it adds.

Electoral workers at a vote counting centre in Baghdad  14 March 2010
Election officials have ruled that votes for two winning candidates were invalid

The report also criticises several European countries, including the UK, for forcibly repatriating refugees to parts of Iraq still considered unstable under the guidelines set out by the UN refugee agency, the UNHCR.

"The continuing uncertainty as to when a new government will be formed following last month's election could well contribute to a further increase of violent incidents of which civilians are the main victims," Mr Smart said.

The BBC's Gabriel Gatehouse in Baghdad says that despite improvements in the security situation in recent years, Iraq remains a violent and dangerous place, and security forces are still struggling to prevent the explosions and targeted killings that have become a daily reality.

But it is not only minorities who face the threat of violence - on Friday a string of bombings near mosques across Baghdad killed more than 60 people, most of them worshippers from the majority Shia Muslim community, he adds.

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Location chosen for European Extremely Large Telescope


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By Jonathan Amos
Science correspondent, BBC News

Cerro Armazones at night (Eso)
Cerro Armazones enjoys near-perfect observing conditions

Europe has chosen the place it wants to build the world's biggest telescope.

The observatory will be constructed on Cerro Armazones, a 3,000m-high mountain in Chile's Atacama Desert.

The E-ELT (European Extremely Large Telescope) will have a primary mirror 42m in diameter - about five times the width of today's best telescopes.

Astronomers say the next-generation observatory will be so powerful it will be able to image directly rocky planets beyond our Solar System.

It should also be able to provide major insights into the nature of black holes, galaxy formation, the mysterious "dark matter" that pervades the Universe, and the even more mysterious "dark energy" which appears to be pushing the cosmos apart at an accelerating rate.

E-ELT - BIGGEST EYE ON THE SKY
Basic design completed in 2006; detailed work now under way
Main mirror consists of 984 segments; each is 1.45m wide
Final image requires use of four further - but smaller - mirrors
Latest optics techniques correct for atmospheric distortions
Construction could start in 2011; likely cost is one billion euros

Final go-ahead for the E-ELT is expected at the end of this year.

The European Southern Observatory (Eso) organisation which is managing the project says it hopes the telescope can be operational by 2018.

The estimated cost is in the region of a billion euros.

The decision on the E-ELT site was taken by the ESO Council after several years of study at competing locations that included other places in Chile, and in the Canary Islands, Spain.

E-ELT artist's impression   Image: Eso
The 5,500-tonne behemoth could be operating by 2018

Cerro Armazones is just 20km from Cerro Paranal, where Eso operates its Very Large Telescope facility - a suite of interconnected telescopes that includes four units with primary mirrors measuring 8.2m.

Like Paranal, Armazones will enjoy near-perfect observing conditions - at least 320 nights a year when the sky is cloudless. The Atacama's famous aridity means the amount of water vapour in the atmosphere is very limited, reducing further the perturbation starlight experiences as it passes through the Earth's atmosphere.

Coming up with a workable design has been a challenge. It is impossible to make a monolithic mirror on such a scale and so the primary reflecting surface will be composed of 984 hexagonal segments, each 1.45m in size.

The E-ELT will thus be able to gather 15 times more light than the largest optical telescopes operating today. It will also provide images 15 times sharper than those from the Hubble Space Telescope.

The huge telescope is one of the major projects listed on a roadmap of research infrastructures that Europe feels it needs to fulfil its scientific goals over the next 20 years.

Other facilities range from high-powered laser systems through to a plan to construct the world's most advanced polar ice-breaker.

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Mexico leader attacks Arizona's new immigration law


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The fence separating the US from Mexico
Day labourers face arrest for soliciting work if they are in the US illegally

The president of Mexico has condemned Arizona's new immigration law, describing it as discriminatory.

The legislation will require Arizona police to question people about their immigration status if they suspect they are there illegally.

Mexican President Felipe Calderon warned that relations with the US border state would suffer as a result.

Mr Calderon warned that Mexico would use all means at its disposal to defend its nationals.

Under the new law, day labourers face arrest for soliciting work if they are in the US illegally, and police departments can be sued if they fail to enforce the law.

'Intolerance'

Mr Calderon said on Monday that he had told Mexico's foreign relations department to intensify efforts to protect the rights of Mexicans living in the US.

He also urged the government to seek help from lawyers and immigration experts.

map

"Criminalising immigration, which is a social and economic phenomena, this way opens the door to intolerance, hate, and discrimination," Mr Calderon told a meeting of Mexican immigrant groups.

The BBC's Julian Miglierini in Mexico City said the new immigration law had been widely criticised in Mexico.

He said that Mr Calderon had promised his government would challenge the law using all available means, and that he would discuss the issue with US President Barack Obama in Washington next month.

The legislation was also attacked by the head of the Organisation of American States, Jose Miguel Insulza.

"We consider the bill clearly discriminatory against immigrants, and especially against immigrants from Latin America," he told the Associated Press news agency

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Goldman Sachs 'profited at clients' expense'


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Lloyd Blanfein
Goldman chief Lloyd Blankfein will speak about the importance of trust

Goldman Sachs made billions of dollars at the expense of its clients during the collapse of the housing market, a US Senate investigation has found.

The investigation - which obtained Goldman e-mails - said bank executives had misled investors over mortgage-related investments that turned sour.

The Senate panel released its findings ahead of its hearing on Tuesday into the Goldman affair.

Goldman vigorously denies any wrong-doing.

The Permanent Subcommittee on Investigations has been sifting through e-mails and other Goldman documents obtained in an 18-month investigation.

Excerpts from the documents were published Monday, a day before Goldman chief executive Lloyd Blankfein and other top Goldman executives appear before the committee.

'Conflict of interest'

On 16 April, the Securities and Exchange Commission (SEC) filed civil fraud charges against Goldman and one of its executives alleging they failed to disclose a conflict of interest.

If our clients believe [the charges] we don't deserve their trust
Lloyd Blankfein

The SEC claims that Goldman arranged mortgage investments without telling clients that the portfolio was put together with help from a hedge fund that was betting on them to fail.

Goldman chief executive Lloyd Blankfein released his own statement ahead of the hearing, saying that the firm did not mislead clients and could not survive without their trust.

Mr Blankfein also said that the day he learned that regulators were filing fraud charges against Goldman was the worst of his professional life.

Senator Carl Levin, chairman of the Permanent Subcommittee on Investigations, said on Monday: "I think [Goldman is] misleading the country. There's no doubt they made huge money betting against the [mortgage] market."

The committee provided excerpts of e-mails showing a progression from late 2006 through to the full-blown mortgage crisis a year later.

Mr Levin said the emails show Goldman shifted in early 2007 from neutral to a short position, betting that the mortgage market was likely to collapse.

"That directional change is mighty clear," Mr Levin said. "They decided to go gangbusters selling those securities while knowing they were toxic."

'Widows and orphans'

Goldman, arguably the world's most prestigious investment bank, rejects the SEC charges as wrong in "fact and law".

At the hearing, Mr Blankfein will repeat the firm's argument that it lost $1.2bn (£776,000) in the housing mortgage market during 2007 and 2008.

"If our clients believe [the charges] we don't deserve their trust, we cannot survive," Mr Blankfein says in the prepared remarks.

He also acknowledges that "we have to do a better job of striking the balance between what an informed client believes is important to his or her investing goals and what the public believes is overly complex and risky."

The Senate panel will also hear on Tuesday from Fabrice Tourre, the London-based bond trader who is named in the SEC charges.

On Saturday, Goldman released a series of e-mails from Mr Tourre, in one of which he jokes that he has sold doomed investments to widows and orphans

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