Japan nominates central bank boss

27 February 2013 Last updated at 23:16 ET

Japan's government has nominated Haruhiko Kuroda to be the next governor of the country's central bank.

Mr Kuroda is currently the head of the Asian Development Bank and is seen as a supporter of aggressive monetary easing to help revive Japan's economy.

The government, which recently won a general election, wants the Bank of Japan to do more to boost growth.

Both the upper and lower houses of Japan's parliament will now need to vote and approve the nomination.

Kikuo Iwata and Bank of Japan official Hiroshi Nakaso were also nominated to serve as the central bank's deputy governors.

Win-win?

Prime Minister Shinzo Abe won the general election on a platform of promises to help revive Japan's economy, which has seen years of stagnating growth.

A more aggressive monetary policy stance by the central bank has been something that Mr Abe has been advocating for, citing it as key to spurring a fresh wave of economic growth.

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It does necessarily mean that the BOJ is not going to give up its independence"

End Quote Junko Nishioka RBS Securities

During his election campaign Mr Abe had even hinted that the government may look at altering the law that ensures the central bank's independence if it does not take adequate steps.

Although Mr Abe toned down his rhetoric later on, it did indicate how crucial the appointment of a new governor would be, not just to the relations between the government and the central bank, but also the BOJ's independence going forward.

Analysts said that if Mr Kuroda's nomination is approved by the parliament, it would be a win-win situation.

"This clearly indicates that the government and the central bank will be working towards the same target and there will be an agreement on what direction the Japanese economy should take from here," Junko Nishioka of RBS Securities told the BBC.

Ms Nishioka added that with Mr Kuroda being a supporter of aggressive policies, it was unlikely that the government take the extreme step of altering the BOJ law.

"It does necessarily mean that the BOJ is not going to give up its independence," she added.

'Proactive approach'

Among the policies suggested by Mr Abe has been a call for stoking inflation as a means to boosting domestic demand.

Japan, unlike many other Asian nations, has been fighting deflation or falling consumer prices for best part of the past decade.

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It has been a big hurdle in its attempts to boost domestic consumption as consumers tend to put off purchases in the hope of getting a cheaper and better deal later on.

Mr Abe has hinted that the central bank should print "unlimited yen" to help fight deflation and encourage price growth.

The idea being that with more money floating around, consumers will have more cash to spend and that will help drive up demand and consumer prices.

Under pressure from the government, the central bank doubled its inflation target to 2% last month, a move seen as key by many analysts to help revive domestic demand.

Mr Kuroda, who is seen as a advocate of inflation target, has suggested that the central bank should try and achieve a 2% inflation rate within two years.

"Under Kuroda-san the BOJ will take a proactive approach towards achieving the inflation target," said Ms Nishioka.

The government's aggressive stance has resulted in a sharp decline in the yen.

The Japanese currency has dipped nearly 15% against the US dollar since November last year.

The yen fell further on Thursday, down by nearly 1% against the US dollar, after the government announced Mr Kuroda as its nominee to head the central bank.

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Spain's Bankia loses 19.2bn euros

28 February 2013 Last updated at 03:26 ET

Spain's troubled Bankia - formed of the merger of seven floundering savings banks - has reported a record loss.

The bank, which received aid of 18bn euros, made a loss of 19.2bn euros (£17bn, $25.2bn) for 2012 and put aside provisions of 26.8bn euros.

Last year, Bankia and its parent firm, BFA, asked for EU funds to help rebuild its capital.

Spain's bank rescue fund said Bankia itself had a negative value, although its parent had some worth.

Bankia was born out of the merger of seven savings banks that were highly exposed to Spain's property sector, which crashed five years ago.

The Bankia-BFA group as a whole made losses after tax of 21.2bn euros in 2012.

Bankia's seven component banks were severely damaged by their loans to property developers and home buyers during the country's property bubble that ended in the late 2000s.

The bank's shares were suspended at the start of the year.

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EU agrees to cap bankers' bonuses

28 February 2013 Last updated at 04:56 ET

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David Cameron says regulations need to be flexible enough for UK-based banks to compete internationally

European Union officials have struck a provisional deal on new financial rules, including capping bank bonuses.

Under the agreement, bonuses will be capped at a year's salary, but can rise to two year's pay if there is explicit approval from shareholders.

The UK, which hosts Europe's biggest financial services centre, was opposed to any caps on bank bonuses.

Prime Minister David Cameron said the EU should concentrate on tightening up banks in other ways.

"We are absolutely clear that we must be able to implement the Vickers plan in the UK, which in some ways is tougher than regulations that are being put in place in other European countries.

"We want to have this proper ring fence between retail banks and investment banks and the rules must allow that to happen."

'Restrict growth'

The Vickers plan, based on the Independent Commission on Banking report led by Sir John Vickers, is designed to keep saver and business deposits from being compromised by the more speculative activities typically undertaken by investment banking operations.

London argues the EU's bonus rules would drive away talent and restrict growth in the financial sector.

The UK had been trying to rally other governments in the 27 countries in the EU behind its position.

Top bankers and financial traders can earn bonuses multiple times their base salaries. But there has been public outrage over bonuses following the huge bail-outs of banks.

The agreement was reached during eight hours of intense talks in Brussels between members of the European parliament, the European Commission and representatives of the bloc's 27 governments.

Core business

Othmar Karas, the European Parliament's chief negotiator, said: "For the first time in the history of EU financial market regulation, we will cap bankers' bonuses.

"The essence is that from 2014, European banks will have to set aside more money to be more stable and concentrate on their core business, namely financing the real economy, that of small and medium-sized enterprises and jobs."

But Joe Rundle, head of trading at ETX Capital, in London, said the cap would backfire. He told the BBC: "It will drive up fixed salaries to compensate. Businesses that do not need to be inside the European Union will leave. And when banks invest in future divisions, it will be outside the EU."

The deal paves the way for Basel III, an overhaul of banking rules.

The G20 group of rich nations had originally planned to bring in Basel III last month, but that has been delayed to January 2014.

Basel III focuses on a ratio of high-quality capital - called tier 1 - which is needed to cushion it against any future shocks. It will rise to 9% after the rules come into effect.

Once the proposals are formally agreed it will start the biggest shake-up of the banking system since the global financial crisis.

The lack of solid financial cushions meant that many banks were vulnerable, and eventually required taxpayer-funded bailouts to avoid bankruptcy.

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Thailand agrees talks with militants

28 February 2013 Last updated at 05:21 ET

Thailand's government has signed its first-ever peace talks deal with Muslim rebels aimed at ending a decades-long conflict in the south.

The deal was signed in Malaysia by the National Revolution Front (BRN), one of several groups operating in Thailand.

More than 5,000 people have been killed since the conflict reignited in the Muslim-majority region in 2004.

The deal came ahead of a meeting in Kuala Lumpur between Malaysian PM Najib Razak and Thai PM Yingluck Shinawatra.

Speaking after their talks, Ms Shinawatra said the talks should "move forward as soon as possible", AFP reports.

She said Thailand was "willing to engage in the process of inclusive dialogue with all relevant stakeholders and groups concerned to address root causes of the problem... within the framework of the constitution".

Mr Najib said the "series of dialogues" would be held in Kuala Lumpur "in two weeks' time".

Malaysia has been acting as a facilitator for the negotiations between the Thai government and the Muslim rebels and is likely to host any peace talks.

Full details of the deal and a timeframe for talks have yet to be released.

'Do our best'

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Many attempts have been made before to start talks between the Thai government and the Muslim insurgents fighting in the far south of the country - most were half-hearted, and all failed.

What is different this time is that the two sides have signed an agreement to begin negotiations, and that it is being launched very publicly by the prime ministers of Thailand and Malaysia.

That commits both sides to stick to the process - for the first time, the insurgents have been given recognition by the Thai state, and their demands can be heard and discussed.

This breakthrough follows an abortive raid by a large group of insurgents on a Thai military base earlier this month, in which 16 of them were killed.

The incident appears to have shaken the Thai government into reaching out to the insurgents, rather than retaliating for the raid with force.

However this is still just the start of a process that is untested and could stumble on many issues.

The BBC's Jonathan Head in Bangkok says that while attempts have been made before to launch a peace process, this is the first time both sides have committed to doing so in writing.

However, he adds that it is only a first step, noting the splintered nature of the insurgency and the possibility that the various rebel leaders may limited influence over their fighters on the ground.

The secretary-general of Thailand's National Security Council Paradorn Pattanatabutr, who signed the deal, said it was "another attempt by the government to tackle the unrest" and did not mean an immediate end to the conflict, Bangkok Post reports.

Hassan Taib, who signed the document for the BRN, told reporters: "We will do our best to solve the problem. We will tell our people to work together to solve the problems."

BRN, or Barisan Revolusi Nasional in Malay, is just one of several rebel groups in the south.

The rebels in mostly Muslim southern provinces are fighting for greater autonomy from Buddhist-majority Thailand and carry out almost daily gun and bomb attacks against civilians and security forces.

Malaysia also brokered a framework peace agreement between the Philippines and its largest Muslim rebel group last year.

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Benedict vows obedience to next pope

28 February 2013 Last updated at 05:40 ET

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The BBC's Matthew Amroliwala describes the scene inside the Vatican

Pope Benedict XVI has vowed "unconditional obedience and reverence" to his eventual successor.

He was speaking on his final day in office at the Vatican to his cardinals, one of whom will be elected next month to replace him.

Benedict, 85, will leave for the papal retreat at Castel Gandolfo, near Rome, later on Thursday.

His deputy, Cardinal Tarcisio Bertone, will have temporary charge of the world's 1.2 billion Roman Catholics.

In his public farewell speech on Wednesday, Benedict hinted at Vatican infighting.

His decision to resign has been openly criticised by Australia's top Catholic, Cardinal George Pell, who questioned his leadership skills.

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"Start Quote

I think I prefer somebody who can lead the Church and pull it together a bit"

End Quote Cardinal George Pell Australia's most senior Catholic

The Church has been beset by scandals over sexual abuse by priests and leaked confidential documents revealing internal corruption and feuding.

An estimated 150,000 people packed into St Peter's Square on Wednesday to hear Pope Benedict, resigning at 85 after seven years in office.

The long-time theologian is expected eventually to retire to a monastery on a hill inside Vatican City, with officials saying he will not be able intervene publicly in the papacy of his successor, though he may offer advice.

His successor must focus on reforming the Vatican bureaucracy, which has often been overly hesitant to react to the various crises which have arisen during Benedict's papacy, the BBC's David Willey reports from the Vatican.

Brown shoes

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Events on Thursday

• About 15:15 GMT: Benedict is driven to a helipad within the Vatican
• About 16:00 GMT: Papal helicopter flies to Castel Gandolfo near Rome
• About 17:00 GMT: Pope appears at a window overlooking the public square in Castel Gandolfo to bless a crowd
• About 19:00 GMT: Benedict ceases to be pope; Swiss guards at the entrance to Castel Gandolfo leave their posts

Pope Benedict received cardinals for a farewell ceremony on Thursday morning, warmly embracing Cardinal Angelo Sodano, who passed on best wishes on behalf of those gathered.

"Among you there is also the future pope to whom I promise my unconditional obedience and reverence," the pontiff told those assembled.

"The Church is a living being," he added, but it "also remains always the same".

He is later due to say goodbye to his staff before being taken to a helipad for the 15-minute flight to Castel Gandolfo.

The residence, 15 miles (24km) south-east of the Italian capital, is the traditional summer home of the popes.

At 20:00 local time (19:00 GMT), Benedict will cease to be pope, a moment which will be marked symbolically when the Swiss Guards at the gate of Castel Gandolfo march off for their return to the Vatican.

The German pontiff, who was born Joseph Ratzinger, will continue to be known as Benedict XVI, with the new title of "pope emeritus".

In his retirement, he will wear a simple white cassock rather than his papal clothes and swap his famous red shoes - the colour is symbolic of the blood of the early Christian martyrs - for brown.

His "Fisherman's Ring", the special signet ring which contains the Pope's name and is impressed to validate certain official documents, is expected to be destroyed along with the lead seal of the pontificate.

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Castel Gandolfo retreat

• The traditional lakeside summer home of the popes is a picturesque "castle town" in the Alban hills, 15 miles (24km) south-east of Rome
• The papal palace dates back to the 17th Century and its gardens occupy the site of a residence of the Roman Emperor Domitian
• Benedict XIV is expected to spend two months resting in the residence as his successor at the Vatican is chosen and installed
• He will have a staff of two secretaries and four women helpers, drawn from a Catholic lay organisation
• Vatican police officers will guard the former pope, who loses his Swiss Guards when his resignation takes effect

Addressing the crowd in St Peter's Square on Wednesday, Pope Benedict thanked believers for respecting his decision to retire and said he was standing down for the good of the Church.

"There were moments of joy and light but also moments that were not easy," he told the crowd.

"There were moments, as there were throughout the history of the Church, when the seas were rough and the wind blew against us and it seemed that the Lord was sleeping."

Precedent

Speaking from Rome, Cardinal Pell told a TV channel that while Benedict was a "brilliant teacher", "government wasn't his strong point".

"I think I prefer somebody who can lead the Church and pull it together a bit," he told the Seven Network.

The first resignation of a pope since the Middle Ages, he suggested, had set a worrying precedent for the Church: "People who, for example, might disagree with a future pope will mount a campaign to get him to resign."

Cardinal Pell, 71, is among the 115 cardinal-electors (those younger than 80 years old) eligible to vote for the new pope, and theoretically could be chosen himself, though he has played down the possibility.

From 4 March, the cardinals will meet for talks at which they will set a date for the start of the secret election, or conclave.

A two-thirds-plus-one vote majority is required. Sixty-seven of the electors were appointed by Benedict XVI, and the remainder by his predecessor John Paul II.

About half the cardinal-electors (60) are European - 21 of them Italian - and many have worked for the administrative body of the Church, the Curia, in Rome.

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US 'to step up' help to Syria rebels

28 February 2013 Last updated at 06:13 ET

New US Secretary of State John Kerry is meeting Syrian opposition leaders in Rome, as the US prepares to increase its support for rebels fighting to topple President Bashar al-Assad.

He is attending a gathering of the Friends of Syria group of nations that support the Syrian opposition.

Mr Kerry is expected to announce increased "non-lethal" aid for the rebels but not weapons.

The UN estimates 70,000 people have died in the Syrian conflict since 2011.

Mr Kerry says the US wants to "accelerate the political transition" in Syria.

UK Foreign Secretary William Hague said the Friends of Syria were determined to "ramp up" assistance to the opposition.

"We are entering a new phase in the response of western and Arab nations to the crisis in Syria," he said.

Mr Hague said the UK would be sending equipment that would "save lives", the details of which would be announced next week.

Specific promises

The main opposition Syrian National Coalition (SNC) had threatened to boycott the meeting in Rome in frustration at the "the world's silence" at the violence.

But it agreed to attend after the US and UK indicated there would be specific promises of aid.

The increased US support is expected to involve food and medical supplies for rebel-controlled areas.

It could also include training, armoured vehicles and night-vision equipment, the New York Times reported, citing senior US officials.

The Obama administration has so far made it clear that it will not supply weapons to the Syrian rebels.

But arms are clearly what the Syrian opposition want and they are becoming ever more frustrated at the level of help they are getting, BBC diplomatic correspondent Jonathan Marcus says.

According to UN estimates, more that 70,000 people have been killed in Syria since the revolt against President Assad began nearly two years ago.

Opposition fighters have been constantly outgunned as President Assad's forces deploy tanks, aircraft and missiles against them.

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Aid to Syria opposition

• The US has provided $384m (£253m) in humanitarian aid to victims of the conflict in Syria
• It says it has also provided $54 million in "non-lethal" support to the political opposition, but not to rebel fighters
• Obama administration reported to be divided over whether to provide weapons, amid fears they could fall into the hands of militants who might later attack western interests
• EU nations also provide humanitarian and "non-lethal" aid, but an arms embargo is in force
• Syrian rebels thought to be getting covert weapons supplies from Saudi Arabia, Qatar and Turkey

The US Secretary of State, who succeeded Hillary Clinton, is on an 11-day tour of Europe and the Middle East.

Speaking in Paris on Wednesday, he said he wanted to hear from the Syrian opposition how best to end the bloodshed.

``We want their advice on how we can accelerate the prospects of a political solution because that is what we believe is the best path to peace, the best way to protect the interests of the Syrian people, the best way to end the killing,'' he said.

Russia 'crucial'

Meanwhile, French President Francois Hollande is in Moscow to discuss Syria with Russian President Vladimir Putin.

Russia is a key ally of President Assad, supplying him with weapons and blocking resolutions against him at the UN.

But it also been encouraging the Syrian government to hold direct talks with the opposition and has offered to host negotiations in Moscow.

Speaking before the meeting, President Hollande said Mr Putin had a crucial role to play in efforts to find a political solution to the conflict.

"We must finally start the process political dialogue that has not yet begun in Syria," Mr Hollande told Ekho Moskvy radio.

"A lot will depend on President Putin's stance."

Western powers say President Assad must step down as part of any political solution, as do the opposition, but Russia does not agree.

In contrast to the slow pace of diplomatic efforts to end the conflict, the fighting on the ground has continued to escalate, with grave humanitarian consequences.

Continue reading the main story

"Start Quote

Most of [the refugees] have lost everything"

End Quote Antonio Guterres UN High Commissioner for Refugees

'Tragedy'

On Wednesday UN High Commissioner for Refugees Antonio Guterres said more than 40,000 Syrians were fleeing the country each week, and the total number of registered refugees was approaching one million.

"The refugee numbers are staggering, but they cannot convey the full extent of the tragedy.

"Three-quarters of the refugees are women and children; many of them have lost family members; most of them have lost everything," he told the Security Council.

In some of the latest fighting, activists say government jets bombed rebels who were attacking a police academy outside Aleppo, Syria's second city.

"The rebels are still trying to storm the school, but they can't because the regime is carrying out airstrikes and bombarding rebel forces," said the UK-based Syrian Observatory for Human Rights, a UK-based activist group.

Along with the capital Damascus, Aleppo is a key battleground in the conflict and has seen some of the most intense fighting.

Opposition groups are particularly enraged by what they say is the government's use of Scud missiles to bombard rebel-held areas of the city, causing mass civilian casualties.

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Bangladesh Islamist sentenced to die

28 February 2013 Last updated at 07:00 ET

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The BBC's Anbarasan Ethirajan: Protesters erupted with joy at the verdict

A tribunal in Bangladesh has sentenced Islamist leader Delwar Hossain Sayeedi to death for crimes committed during the country's 1971 war of independence.

The Jamaat-e-Islami chief was found guilty of charges including murder, torture and rape. He is the most senior figure convicted so far.

His opponents erupted in cheers on hearing the verdict.

Critics of the tribunal have said that the charges against Sayeedi and others are politically motivated.

The Jamaat-e-Islami party rejects the court and has been staging a strike in protest. Lawyers for Sayeedi say they plan to appeal.

Thousands of police have been deployed in Dhaka to maintain security. Officials say nine people have been killed across the country in clashes between police and Jamaat supporters following the verdict.

Jamaat was opposed to Bangladeshi independence but denies any role in war crimes committed by pro-Pakistan militias.

Official estimates say more than three million people were killed in the war.

Angry demonstrations

Security was tight around the capital, Dhaka, as the judgement was being read out. On hearing the verdict, protesters gathered at a busy intersection in the city erupted into cheers.

"We've been waiting for this day for the last four decades," one man told local television, the Agence France-Presse news agency reports.

Thousands had staged a protest in the capital on Wednesday, demanding the death sentence be handed down to him.

Continue reading the main story

• Civil war erupts in Pakistan, pitting the West Pakistan army against East Pakistanis demanding autonomy and later independence
• Fighting forces an estimated 10 million East Pakistani civilians to flee to India
• In December, India invades East Pakistan in support of the East Pakistani people
• Pakistani army surrenders at Dhaka and its army of more than 90,000 become Indian prisoners of war
• East Pakistan becomes the independent country of Bangladesh on 16 December 1971

Recent weeks have seen a series of angry demonstrations demanding the execution of Jamaat leaders being tried by the tribunal. But there have also been protests against the court.

Several people have been killed during violent clashes over the issue around the country.

The verdict is the third issued by the controversial tribunal, which is trying a total of nine Jamaat leaders and two members of the Bangladesh Nationalist Party.

Sayeedi was accused of working with the Al-Badr group during the independence struggle and carrying out numerous atrocities, including forcibly converting Hindus to Islam.

His critics say that during the war he formed a small group to loot and seize the property of Bengali Hindus and those who supported independence.

The tribunal found Sayeedi guilty of eight out of the 20 charges levelled against him. These were mass murder, torture, rape and forcibly converting Hindus to Islam.

State prosecutor Syed Haider Ali described the verdict as a "victory for the people", AFP reports. But in court Mr Sayeedi protested, blaming the judgement on the influence of bloggers and pro-government forces.

Earlier this month another Jamaat leader, Abdul Kader Mullah, was sentenced to life for crimes against humanity. Huge crowds have been demanding he be executed.

In January, former party leader Abul Kalam Azad was found guilty in absentia of eight charges of crimes against humanity and sentenced to death.

In the wake of the public outcry calling for the execution of Abdul Kader Mullah, Bangladesh's parliament earlier this month amended a law which will allow the state to appeal against his life sentence.

The special court was set up in 2010 by the current Bangladeshi government to deal with those accused of collaborating with Pakistani forces who attempted to stop East Pakistan (as Bangladesh was then) from becoming an independent country.

But human rights groups have said the tribunal falls short of international standards. Jamaat and the BNP accuse the current government of pursuing a political vendetta.

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Man 'dragged by SA police van' dies

28 February 2013 Last updated at 07:08 ET

South Africa's police watchdog is investigating the death of a Mozambican taxi driver who was allegedly handcuffed to the back of a police van and dragged through the streets.

Video footage taken by a bystander of the incident, near Johannesburg, has been shown in the local media.

A spokesman for the Police Investigative Directorate said he was "shocked" by the footage.

Rights groups often accuse South African police of brutality.

Local media reported that police initially assaulted the 27-year-old Mozambican, a taxi driver, accusing him of parking his vehicle incorrectly in Daveyton, east of Johannesburg.

The video shows a large crowd gathering, as uniformed policemen tie him to a van, dragging him as they drive away.

'Police vigilantes'

He was later taken into custody, where he died, local media report.

"We are investigating an incident involving the death of a man, allegedly at the hands of the police. We are shocked by the footage which has been released," Independent Police Investigative Directorate (IPID) spokesman Moses Dlamini was quoted by AFP news agency as saying.

"The circumstances surrounding his death are still allegations... Let's find out what really happened."

Continue reading the main story

The fact that the crowd watched and did nothing to help, some even cheering, is a sad indictment of the state of our society"

End Quote Kate Lorimer Oposition MP

The opposition Democratic Alliance party (DA) called for the officers involved to be suspended and for a thorough investigation to be carried out.

"The fact that it was police who were the vigilantes in this case shows that we cannot trust the [South African Police Service] to uphold the law," said provincial parliamentarian Kate Lorimer, AFP reports.

"The fact that the crowd watched and did nothing to help, some even cheering, is a sad indictment of the state of our society."

Rights group Amnesty International said there was an "increasingly disturbing pattern" of police brutality in South Africa.

The IPID had received 720 cases for investigation, including suspicious deaths in police custody, from April 2011 to March 2012, said Amnesty's southern Africa director Noel Kututwa, AFP reports.

South Africa's police commissioner Riah Phiyega condemned the incident.

"The matter is viewed by the National Commissioner in a very serious light and it is strongly condemned," she said in a statement.

The police department did not confirm if the officers involved in the incident had been suspended, AFP reports. Mr Dlamini said the IPID did not have the power to suspend the officers.

"We can only investigate and recommend suspension, we have no power to say that they should be removed from their jobs," he was quoted as saying.

There was outrage last August when police shot dead 34 striking miners at the Marikana platinum mine in South Africa's North West province.

A judge-led inquiry appointed by President Jacob Zuma is investigating the shooting.

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Mexico's 'most powerful woman' held

27 February 2013 Last updated at 00:06 ET

Union head Elba Esther Gordillo, known as Mexico's most powerful woman, has been arrested on corruption charges.

Ms Gordillo, who runs the 1.5 million-member Mexican teachers' union, is alleged to have embezzled more than $156m from union funds.

No-one from her legal team has responded to the allegations, but in the past she has denied any wrongdoing.

Her arrest came a day after the government enacted major reforms to the education system.

President Enrique Pena Nieto signed the sweeping reforms, which seek to change a system dominated by Ms Gordillo's union in which teaching positions could be sold or inherited.

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• Elba Esther Gordillo rose from humble origins in rural Chiapas state
• Leads the SNTE teachers' union, with an estimated 1.5 million members
• Has held post for more than 20 years
• Prosecutors have never brought a charge against her despite numerous fraud allegations
• Expelled from President Pena Nieto's Institutional Revolutionary Party in 2006 for forming her own party
• Accused by prosecutors in February 2013 of "systematic embezzlement" of union accounts between 2008 and 2012

"We are looking at a case in which the funds of education workers have been illegally misused, for the benefit of several people, among them Elba Esther Gordillo," Attorney General Jesus Murillo Karam said.

His office alleges Ms Gordillo, 68, used the money on property, including in the US, private planes and plastic surgery.

The BBC's Will Grant in Mexico City says that Ms Gordillo is one of the highest profile figures in Mexican political life, known simply as "la maestra" or "the teacher".

For more than 20 years she has led the National Union of Education Workers (SNTE).

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Attorney General Jesus Murillo announces the arrest to reporters

Political player

With an estimated 1.5 million members, the SNTE is considered Latin America's most powerful union.

Ms Gordillo has held real influence over governments and individual presidents by persuading her union members to vote as a single bloc, our correspondent says.

The teachers were also responsible for manning polling stations on election day.

Her union is very wealthy, and can count on an annual budget of tens of millions of dollars.

It is on claims that she mishandled those funds, allegedly diverting money intended for the union's coffers to her personal accounts, that she has now been arrested.

The education reforms appeared set to weaken the SNTE, which has largely controlled access to the profession.

The union has argued that reforms could lead to massive lay-offs.

Critics also say the changes could signal the start of the privatisation of education in Mexico.

Mexico's education system currently ranks bottom in a list of members of the Organisation for Economic Co-operation and Development (OECD).

The reforms will require teachers to undergo regular assessments, something that has previously never taken place inside Mexico's primary and secondary schools.

Many teachers in Mexico are said to have a very low standard of education themselves.

Another change is intended to tackle the problem of absent or even deceased teachers receiving wages.

Ms Gordillo has been an outspoken critic of the current education minister and his approach to the reforms.

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China letter urges political reforms

27 February 2013 Last updated at 00:45 ET By Celia Hatton BBC News, Beijing

Some of China's most prominent scholars, journalists and activists have released an open letter urging leaders to implement political reforms, for the second time in three months.

More than 100 people signed the open letter urging Beijing to ratify an international human rights treaty.

The letter was posted on several prominent Chinese websites and blogs.

It comes just days before Chinese leaders gather for the annual parliamentary session in Beijing.

At the meeting, new Communist Party leader Xi Jinping will be installed as China's president, taking over from Hu Jintao, completing the 10-yearly power transition.

'Feasible goal'

"We solemnly and openly propose the following as citizens of China," the letter begins, "that the International Covenant on Civil and Political Rights (ICCPR) be ratified, in order to further promote and establish the principles of human rights and constitutionalism in China."

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• Dai Qing: Activist and writer. A one-time Communist Party member, Dai quit the party in 1989 after her book, Yangtze! Yangtze!, protesting the construction of the Three Gorges dam, was banned by the authorities. Since then, she has spoken out on a variety of environmental and political issues.
• Pu Zhiqiang: Human rights lawyer. Pu is a Beijing-based human rights lawyer with a long list of sensitive clients, including renowned artist Ai Weiwei and Tibetan environmentalist Karma Samdrop.
• Wang Keqin: Investigative journalist. Wang is a top investigative reporter in China. For decades, he has made his name exposing crime and corruption at all levels of Chinese society.
• Mao Yushi: Economist. Mao is a an outspoken proponent of free markets and a more transparent political system in China. Mao is one of the founders of the Unirule Institute of Economics, an independent think tank that advocates for political and economic reform in China.
• He Weifang: Legal Scholar. A professor at the Peking University Law School, He Weifang has made his name pushing for legal reform and the establishment of the rule of law within China.

The ICCPR is part of the International Bill of Human Rights created by the United Nations. It calls for basic civil and political rights of individuals, including freedom of religion, freedom of speech and freedom of assembly.

Beijing signed the treaty in 1998 but the Chinese parliament has never ratified the document.

The open letter was signed by many prominent thinkers in China, including economist Mao Yushi, legal scholar He Weifang and Dai Qing, an outspoken political activist.

In December, many of the same people also signed a strongly worded open letter demanding political reform within China, including an independent judiciary and meaningful democratic change.

"If reforms to the system urgently needed by Chinese society keep being frustrated and stagnate without progress," December's letter warned, "then official corruption and dissatisfaction in society will boil up to a crisis point and China will once again miss the opportunity for peaceful reform, and slip into the turbulence and chaos of violent revolution."

The language in the more recent letter was much more conciliatory, acknowledging the difficulties of enacting meaningful political change within China while also emphasising that signing the ICCPR would be a "feasible" goal for Chinese leaders.

In an interview with the BBC, investigative journalist Wang Keqin said he was confident China's leaders would ratify the ICCPR during the upcoming parliamentary session, a goal he acknowledged was "very mild and conservative".

"We don't dare to dream that China will make a lot of progress in one giant leap," Mr Wang said. "The country develops step by step and our efforts are also aimed at changing things step by step. This is the embarrassing situation we are in now."

He did not want to identify the person who first wrote the letter and collected the signatures, blaming his reluctance on "China's special situation".

According to the China Media Project, a group based at Hong Kong University which monitors the Chinese media, this week's letter was scheduled to be released on Thursday.

However the authorities reportedly heard about the letter early, leading its supporters to bring publication forward by two days. Mention of the letter has since disappeared from many internet sites within China.

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Cyclone Rusty hits west Australia

27 February 2013 Last updated at 05:05 ET

Tropical Cyclone Rusty has hit the coast of Western Australia, bringing with it pouring rain and strong winds.

Rusty had been forecast to make landfall in the Pilbara region's Port Hedland iron ore port, but instead touched down in nearby Pardoo town.

The storm has been downgraded from category four cyclone, one notch short of the top category, to category three.

It is bringing gusts of up to 165km/h (103mph), said Australia's Bureau of Meteorology (BoM).

"It looks as if Hedland has dodged the bullet, so to speak, because the worst of the winds are away from Hedland," Neil Bennett of the BoM told AFP early on Wednesday.

"Hedland though has been experiencing a constant period of gale-force winds for over 36 hours now," he said, adding that this was unprecedented for the area.

The cyclone had veered away from Port Hedland, 800 miles (1,287km) north of the city of Perth, and landed in the tiny community of Pardoo 120km to the north-east at 5pm (09:00 GMT).

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Severe Tropical Cyclone Rusty makes landfall in Western Australia with damaging winds and flooding rain. Nick Miller looks at where it's heading next.

Australia's Department of Fire and Emergency Services had issued a red alert for Pardoo and nearby Whim Creek.

Ian Badger, a Pardoo resident, said that the winds were coming in strong.

"I've got some leaking in the roof and I've got water coming in through. As long as the building holds together I'll be alright," he told ABC News.

But he said that the amount of water was "worrying".

"The ground is very sodden, very soft. As soon as you get a get a bit of strong wind, trees start going over."

Port Hedland had closed three main iron ore ports in the Pilbara region, the world's largest source of iron ore, as the cyclone approached. Schools were also closed.

Port Hedland Deputy Mayor George Daccache told the Australian Associated Press (AAP) news agency that the winds and rain had been "relentless for the past two or three days".

Bureau of Meteorology spokesman Mike Bergin said that they are still expecting "a very significant storm surge" in the Pardoo area.

People in Port Hedland have been stocking up on essentials following warnings to take shelter. Other low-lying areas have also been evacuated.

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EU ministers back fish dumping ban

27 February 2013 Last updated at 05:51 ET By Roger Harrabin BBC environment analyst

European Union fisheries ministers have agreed to phase out the controversial practice of dumping unwanted fish.

After a tense all-night meeting, ministers said a ban on "discards" should be phased in, starting in January 2014 for certain types of fish.

It is a victory for campaigners who have demanded the end of a practice that has brought the EU into disrepute.

But activists fear that exemptions for certain countries could open loopholes to be exploited in future talks.

'Historic moment'

The UN says Europe has the world's worst record of throwing away fish. Almost a quarter of all catches go back overboard dead because they are not the fish the crews intended to catch.

The decision reached early on Wednesday morning was driven by northern European nations, including the UK.

They prevailed over mainly Mediterranean countries, which were fighting to protect the interests of their fishermen.

The ban will apply to pelagic stocks like herring and whiting from next year, and to white fish stocks from January 2016.

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How a UK trial uses CCTV on fishing boats to crack down on discards

Spain, France and Portugal managed to cling on to some restricted exemptions, particularly relating to crews operating far from land in mixed fisheries where the cost of landing unwanted fish is deemed to be prohibitive.

These crews will be allowed to discard 9%, shrinking to 7%. This figure is too high for the northern nations and the European Commission, which say the public expects that in a hungry world no fish should be thrown away.

Details of how exactly the discards ban will work in practice with the quota system or its projected replacement will be debated later.

The British government, one of the campaigners for change, said it was disappointed that the ban was not absolute, but that last night's result was an historic victory to end a "scandalous" policy.

It is one instance in which mass public pressure has clearly influenced the politicians, with almost a million people on the Online campaign site Avaaz demanding an end to discards.

UK Fisheries Minister Richard Benyon said: "This is a historic moment in reforming the broken Common Fisheries Policy. The scandal of discards has gone on for too long.

"I am disappointed that some of the measures required to put this ban into place are no longer as ambitious as I had hoped but it's a price I am willing to accept if it means we can get the other details right.

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The technology on trial at Denmark's North Sea Centre

"The result we have achieved today is another step in the right direction and will prove to be good for both fishermen and the marine environment."

The deal builds on a recent commitment to fish sustainably, and to allow more regional decision making. Many crucial details are still to be resolved over exactly what sustainably means, how the policy is enforced, how fishing crews are supported and how they are helped to buy gear that fishes more selectively.

Follow Roger on Twitter @rharrabin

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Deadly fire hits Calcutta market

27 February 2013 Last updated at 06:29 ET

At least 19 people have been killed in a fire that swept through an illegal market in the eastern Indian city of Calcutta, police officials say.

The Surya Sen Market was housed in an old multi-storey building in the crowded Sealdah area of the city.

Several people were also seriously injured, and officials say the death toll could rise.

The deadly blaze was contained in three hours and it is thought there is no one left trapped inside.

The fire in the paper and plastic market broke out early on Wednesday morning while some people were sleeping inside the complex.

The head of the fire services Gopal Bhattacharya told AFP news agency that they "found dozens of people lying unconscious with severe burns" and that most of the victims had suffocated in their sleep.

Toxic gases were also released from the flammable materials present in the building, which hampered the rescue operations.

State Fire Services Minister Javed Khan told AFP: "The market has only one exit point and those who stayed in the market at night were trapped after the fire broke out."

Mr Khan also said the market was illegal and action would be taken "against the authorities for not having any fire safety arrangement".

'Unplanned buildings'

West Bengal Chief Minister Mamata Banerjee, visiting the scene, promised a full investigation.

She said there were many such illegal or "unplanned" buildings in the city and that "no-one follows any safety norms".

She announced compensation amounts of 200,000 rupees ($3,714; £2,461) for the families of those who died and 50,000 ($930; £610) rupees for the injured.

At least 25 fire engines were sent to the scene and the injured were taken to nearby hospitals.

The reason for the fire remains unknown, but some local officials said a short circuit due to faulty electrical wiring could be to blame.

A police investigation into the cause is now underway and Ms Banerjee said they will have a report ready within three days.

There have been several major fires in Calcutta in recent years.

In December 2011, around 90 people died in a blaze at a hospital. A year before that, 43 people died in a fire at the historic St Stephen's Court building on the city's Park Street.

In 2008, more than 2,500 shops were destroyed in a huge fire at one of the city's largest markets.

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'Several dead' in Swiss shooting

27 February 2013 Last updated at 06:52 ET

Several people have been killed and seriously injured during a shooting at a factory near the Swiss city of Lucerne, police say.

The incident happened at the Kronospan wood processing plant in the town of Menznau.

The Luzerner Zeitung newspaper said three people were dead, including the gunman, and seven seriously injured - but this was not confirmed.

The paper said shooting started in the canteen at around 09:00 (08:00 GMT).

"The workers were eating a snack in the cafeteria during the morning, and there was a massacre," said a man quoted by the Swiss news website 20minutes, who had phoned the factory to check on the welfare of his father.

An emergency telephone line had been set up for families of the factory's employees.

Emergency services, including three rescue helicopters, were on the scene, Swiss media reported.

Switzerland has one of the highest rates of gun ownership in the world, but relatively little gun crime.

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Attack on Afghan police kills 17

27 February 2013 Last updated at 06:59 ET

An attack by insurgents on a police post in Afghanistan has left 11 police officers and six others dead.

The Taliban said they carried out the attack, in the central-eastern province of Ghazni.

Two guards from the site have been arrested and are being questioned about why they failed to stop the attack, Governor of Ghazni Musa Khan Akbarzada told the BBC.

Both the Taliban and al-Qaeda are known to operate in Ghazni province.

Last year the district saw a local uprising against the insurgents but since then security in the area has deteriorated, the BBC's Quentin Sommerville reports from Kabul.

Eleven of the dead were police officers, while the rest may have been visiting friends, Mr Akbarzada said.

Local officials said that the attackers had infiltrated the base and poisoned the victims before shooting them.

All were shot while they slept at the base, he said.

He added that the Ghazni chief of police had been sent to the area to investigate the incident.

Elsewhere in Afghanistan on Wednesday, a suicide bomber in Kabul blew himself up after crawling under a bus carrying army personnel, injuring six soldiers and four civilians.

It is the second attempted suicide attack in the city in the space of a week.

The attacks come a day after the US-led military alliance in the country admitted that there had been no fall in the number of Taliban attacks in 2012, citing an "error" for its previous claim that the number had fallen.

Thursday's incidents also attest to the Taliban's continued ability to be able to launch audacious attacks on Afghan security forces, who are due to take over when Nato combat forces withdraw before the end of 2014.

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Pope recalls joy and 'choppy waters'

27 February 2013 Last updated at 07:01 ET

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Pope Benedict XVI: "Thank you from the bottom of my heart, I'm really moved"

Pope Benedict XVI has admitted he faced "choppy waters" during his eight years at the helm of the Roman Catholic Church, but says he was guided by God and felt his presence every day.

The Pope, 85, will retire on Thursday - the first pope to abdicate since Gregory XII in 1415.

Thousands of pilgrims gathered in St Peter's Square in the Vatican for Pope Benedict's final general audience.

His successor will be chosen in a conclave to take place in March.

Pope Benedict told the crowd his papacy had been "a heavy burden" but he accepted it because he was sure that God would guide him.

At times he "felt like St Peter with his apostles on the Lake of Galilee", he said, making reference to the Biblical story when the disciples were battling against heavy waves and Jesus Christ appeared to them.

The Church has been beset by scandals over sexual abuse by priests and leaked confidential documents revealing corruption and infighting in the Vatican.

'Serenity of spirit'

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At the scene

This was a farewell, but without a funeral. The sight of a living Pope here in St Peter's Square taking his leave of the faithful reinforces the sense of the Catholic Church at an unprecedented moment in its extraordinary history.

No other pope has ever asked over a billion Catholics throughout the world to pray for him "and for the new Pope", as Benedict XVI did here in Vatican City.

Was this the message of a man moving with the times? A Pope accepting with serenity that the Church at a time of crisis needs a younger, fitter man?

Certainly Pope Benedict looked and sounded frail - worn out, even - as he delivered his opening prayer, flanked by the Swiss Guards who will be withdrawn from his side on Thursday evening at the moment he relinquishes the papacy.

But his decision to quit leaves behind a Papal in-tray piled high with challenges over sex abuse and financial scandals his supporters insist he has done so much to confront while conceding there is far more still to be done.

The Pope thanked his flock for respecting his decision to retire and said he was standing down for the good of the Church.

"I took this step [resignation] in full awareness of its gravity and novelty but with profound serenity of spirit," he said in his address.

As a results of his surprise announcement, the Church has now amended its laws to bring forward the election of a successor.

A conclave beginning in mid-March would have left little time to have a new pope installed for one of the most important periods in the Catholic calendar, Holy Week, leading up to Easter, which begins on 24 March.

The BBC's Alan Johnston in Rome says that on Thursday the Pope will travel by helicopter to his summer residence at Castel Gandolfo, about 15 miles (24km) south-east of Rome. He will cease to be Pope at 20:00 local time.

After Benedict XVI steps down, he will become known as "pope emeritus".

He will retain the honorific "His Holiness" after his abdication and will continue to be known by his papal title of Benedict XVI, rather than reverting to Joseph Ratzinger.

He will wear his distinctive white cassock without any cape or trimmings, but will surrender his gold ring of office and his personal seal will be destroyed.

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Nuns and monks were among thousands running into the square to take their place in history

He will also give up wearing his red shoes.

"On the one hand I felt that since the decision that he would leave office and resign became public, Pope Benedict is relieved," said the head of the German bishops' conference, Archbishop Robert Zollitsch.

"But he also now feels the sympathy of the people for him, and therefore he will have a sense of melancholy and nostalgia, a bit of sadness."

Farewell

The title "emeritus" is used when a person of status, such as a professor or bishop, hands over their position, so their former rank can be retained in their title.

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Timeline to Thursday's resignation

• Thursday 1000 to 1115 GMT: Cardinals gather in the Vatican to bid farewell to Pope Benedict
• About 1515 GMT: Benedict is driven to a helipad within the Vatican
• About 1600 GMT: Papal helicopter flies to Castel Gandolfo near Rome
• About 1700 GMT: Pope appears at a window overlooking the public square in Castel Gandolfo to bless a crowd
• About 1900 GMT: Benedict ceases to be pope; Swiss guards at the entrance to Castel Gandolfo leave their posts

The Pope is to spend his final hours at his Vatican residence saying farewell to the cardinals who have been his closest aides during his eight-year pontificate, says the BBC's David Willey at the Vatican.

His personal archive of documents will be packed up and, at 20:00 (19:00 GMT) on Thursday, the Swiss Guard on duty at his Castel Gandolfo residence will be dismissed, to be replaced by Vatican police.

This will mark the formal end of his papacy and the beginning of the period of transition to his successor, due to be chosen next month.

From 4 March, the College of Cardinals will meet in general congregations to discuss the problems facing the Church and set a date for the start of the secret election, or conclave, to elect Pope Benedict's successor.

That successor will be chosen by 115 cardinal-electors (those younger than 80 years old) through ballots held in the Vatican's Sistine Chapel.

A two-thirds-plus-one vote majority is required. Sixty-seven of the electors were appointed by Benedict XVI, and the remainder by his predecessor John Paul II.

About half the cardinal-electors (60) are European - 21 of them Italian - and many have worked for the administrative body of the Church, the Curia, in Rome.

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Bad sleep 'dramatically' alters body

25 February 2013 Last updated at 19:28 ET By James Gallagher Health and science reporter, BBC News

A run of poor sleep can have a potentially profound effect on the internal workings of the human body, say UK researchers.

The activity of hundreds of genes was altered when people's sleep was cut to less than six hours a day for a week.

Writing in the journal PNAS, the researchers said the results helped explain how poor sleep damaged health.

Heart disease, diabetes, obesity and poor brain function have all been linked to substandard sleep.

What missing hours in bed actually does to alter health, however, is unknown.

So researchers at the University of Surrey analysed the blood of 26 people after they had had plenty of sleep, up to 10 hours each night for a week, and compared the results with samples after a week of fewer than six hours a night.

More than 700 genes were altered by the shift. Each contains the instructions for building a protein, so those that became more active produced more proteins - changing the chemistry of the body.

Meanwhile the natural body clock was disturbed - some genes naturally wax and wane in activity through the day, but this effect was dulled by sleep deprivation.

Prof Colin Smith, from the University of Surrey, told the BBC: "There was quite a dramatic change in activity in many different kinds of genes."

Areas such as the immune system and how the body responds to damage and stress were affected.

Prof Smith added: "Clearly sleep is critical to rebuilding the body and maintaining a functional state, all kinds of damage appear to occur - hinting at what may lead to ill health.

"If we can't actually replenish and replace new cells, then that's going to lead to degenerative diseases."

He said many people may be even more sleep deprived in their daily lives than those in the study - suggesting these changes may be common.

Dr Akhilesh Reddy, a specialist in the body clock at the University of Cambridge, said the study was "interesting".

He said the key findings were the effects on inflammation and the immune system as it was possible to see a link between those effects and health problems such as diabetes.

The findings also tie into research attempting to do away with sleep, such as by finding a drug that could eliminate the effects of sleep deprivation.

Dr Reddy said: "We don't know what the switch is that causes all these changes, but theoretically if you could switch it on or off, you might be able to get away without sleep.

"But my feeling is that sleep is fundamentally important to regenerating all cells."

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Gaza rocket fired into south Israel

26 February 2013 Last updated at 01:19 ET

A rocket fired from the Gaza Strip has landed in southern Israel - the first such attack since shortly after a ceasefire ended eight days of clashes in November, Israeli police say.

The rocket caused some damage to a road in Ashkelon but no injuries.

The strike follows confrontations in the West Bank between Israeli forces and Palestinian protesters.

Riots broke out across the West Bank at the weekend after a Palestinian man died in Israeli custody.

Israeli police spokesman Doron Ben-Amo told the BBC a missile fired from Gaza landed in an industrial area in Ashkelon and some damage was caused to infrastructure.

There was no immediate claim of responsibility for the attack from militants in Gaza, where Egyptian mediators helped negotiate the November ceasefire.

Although levels of cross-border violence have dropped sharply since the conflict, two Palestinians have been shot dead close to the border, where Israel maintains a buffer zone which civilians are forbidden to enter.

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Russia meteor's origin tracked down

26 February 2013 Last updated at 04:25 ET By Paul Rincon Science editor, BBC News website

Astronomers have traced the origin of a meteor that injured about 1,000 people after breaking up over central Russia earlier this month.

Using amateur video footage, they were able to plot the meteor's trajectory through Earth's atmosphere and then reconstruct its orbit around the Sun.

As the space rock burned up over the city of Chelyabinsk, the shockwave blew out windows and rocked buildings.

The team, from Colombia, has published details on the Arxiv website.

Numerous videos of the fireball were taken with camera phones, CCTV and car-dashboard cameras and subsequently shared widely on the web. Furthermore, traffic camera footage of the fireball had precise time and date stamps.

Early estimates of the meteor's mass put it at ten tonnes; US space agency Nasa later estimated it to be between 7,000 and 10,000 tonnes. Nasa estimates the size of the object was about 17m (55ft).

Using the footage and the location of an impact into Lake Chebarkul, Jorge Zuluaga and Ignacio Ferrin, from the University of Antioquia in Medellin were able to use simple trigonometry to calculate the height, speed and position of the rock as it fell to Earth.

To reconstruct the meteor's original orbit around the Sun, they used six different properties of its trajectory through Earth's atmosphere. Most of these are related to the point at which the meteor becomes bright enough to cast a noticeable shadow in the videos.

The researchers then plugged their figures into astronomy software developed by the US Naval Observatory.

The results suggest the meteor belongs to a well known family of space rocks - known as the Apollo asteroids - that cross Earth's orbit.

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The BBC's Daniel Sandford says people described a ball of fire in the sky

Of about 9,700 near-Earth asteroids discovered so far, about 5,200 are thought to be Apollos. Asteroids are divided into different groups such as Apollo, Aten, or Amor, based on the type of orbit they have.

Dr Stephen Lowry, from the University of Kent, said the team had done well to publish so quickly.

"It certainly looks like it was a member of the Apollo class of asteroids," he told BBC News.

"Its elliptical, low inclination orbit, indicates a solar system origin, most likely from the asteroid belt between Mars and Jupiter.

Dr Lowry added: "Perhaps with more data, we can determine roughly where in the asteroid belt it come from."

Paul.Rincon-INTERNET@bbc.co.uk

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Brazil dengue cases almost triple

26 February 2013 Last updated at 05:26 ET

Health authorities in Brazil say there has been a steep rise in the confirmed cases of dengue fever this year.

More than 200,000 people were infected in the first seven weeks of 2013 compared to 70,000 in the same period last year, official figures suggest.

The southern state of Mato Grosso do Sul has been hardest hit.

Officials said the cases were likely to rise as the rainy season increases the risk of reproduction of the mosquito which transmits the disease.

Health Minister Alexandre Padilha said that despite the higher incidence, the cases had been less severe than those recorded last year.

Continue reading the main story

• Causes a flu-like illness, occasionally lethal
• Leading cause of serious illness and death among children in some Asian and Latin American countries
• No specific treatment, but early detection, medical care reduce fatality rates to below 1%
• Found in tropical and sub-tropical climates, mostly urban and semi-urban areas
• Global incidence has grown dramatically
• About half of the world's population is now at risk

He said 33 people had died from the flu-like disease in the first seven weeks of 2013 compared to 41 last year.

According to Mr Padilha, these figures showed that the authorities were following the right strategies in their fight against the fever.

He said extra training given to health care professionals and improvements to the network of basic care providers had clearly paid off.

But Mr Padilha warned state authorities not to let down their guard as the rainy season could exacerbate the situation, with standing water providing an ideal breeding ground for the mosquitoes carrying the disease.

Apart from Mato Grosso do Sul, seven other states across southern and central Brazil have been affected by the epidemic.

More than half of the cases have been caused by the DENV-4 strain of the virus, which was first detected in Brazil in 2011.

Mr Padilha said that because the strain was still relatively new to the country, more people were susceptible to infection.

There are four known types of dengue fever. Once people are infected by one type, they become immune to that variation, but not to other strains.

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Sri Lanka Tamils 'raped in custody'

26 February 2013 Last updated at 05:53 ET

Sri Lankan security forces have committed crimes of sexual violence against ethnic Tamils in state custody, a new Human Rights Watch report says.

The study focuses on cases of rape of men, women and minors detained between 2006 and 2012 because of their alleged links to Tamil Tiger rebels.

Based on its report, HRW is urging Sri Lanka to open criminal investigations.

Sri Lanka's government has consistently rejected allegations levelled against it by human rights organisations.

The country's troops defeated Tamil rebels in 2009 after 26 years of civil war.

As many as 100,000 people are thought to have died as the government battled secessionist Liberation Tigers of Tamil Eelam (LTTE) fighting for a separate homeland.

Both sides were accused of human rights abuses in the conflict's final stages, when thousands of civilians were trapped in a thin strip of land in the north of Sri Lanka as fighting raged around them.

The report comes during a session of the United Nations Human Rights Council in Geneva, where a resolution against Sri Lanka's human rights record and the army's conduct at the end of the war is expected to be tabled.

'Unlawful tool'

The new HRW report says sex crimes committed by government security forces "sharply increased" following the ceasefire breakdown in 2006.

Most of the abuses were politically motivated, according to the report.

"Rape was one of the unlawful tools used by the military and police against suspected LTTE members or supporters to gather intelligence during the fighting and immediately after the conflict ended in May 2009, as well as to obtain information about any remnants of the LTTE since then, whether in Sri Lanka or abroad," it says.

Continue reading the main story

• Investigate allegations of rape and other sexual violence by Sri Lankan security forces
• Prosecute those responsible for these crimes
• Abolish detention without charge or trial
• Lift access restrictions for NGOs
• Release individuals held without charge under emergency or anti-terrorism laws

The findings focus on 75 cases of alleged rape of 31 men, 41 women, and three boys aged under 18, all arrested for suspected links to Tamil rebels.

HRW conducted the interviews over a 12-month period with former detainees in Australia, the United Kingdom, Germany, India, Malaysia, and Indonesia.

The research was carried out secretly because of government access restrictions, the organisation says. As a result, it was able speak only to ex-captives and not to current detainees, whose "fate is of urgent concern".

Based on the witness accounts, those behind the sex crimes are thought to have included members of the Sri Lankan army, police, and pro-government Tamil paramilitary groups.

"In all of the cases documented, the acts of rape and sexual violence were accompanied by other forms of torture and cruel, inhuman, and degrading treatment by state security forces," the report says.

"The continued large-scale deployment of the armed forces in former LTTE areas of northern Sri Lanka, coupled with increased surveillance of civil society groups, has stymied community responses to rights abuses including sexual violence."

Based on its findings, the report has called on the Sri Lankan government to investigate and prosecute "those responsible, including persons with command or other superior responsibility, in proceedings that meet international fair trial standards".

Other recommendations include abolishing detention without charge or trial; granting humanitarian groups better access to the north of the country; and releasing individuals held without charge under emergency or anti-terrorism laws.

In 2011, a UN panel accused Sri Lankan forces and LTTE rebels of committing war crimes during the civil conflict.

It alleged that Sri Lankan troops had shelled civilians in a so-called no-fire zone and targeted hospitals in their push to finish off the Tamil Tigers. The government has denied such accusations.

The rebels were accused of holding civilians as human shields, using child soldiers and killing people who tried to leave areas under their control.

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Egypt balloon crash kills tourists

26 February 2013 Last updated at 06:18 ET

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Eyewitness Christopher Michel: "We heard a loud explosion"

British, French, Hong Kong and Japanese nationals are among at least 18 tourists killed in a hot air balloon crash near the Egyptian city of Luxor.

The balloon was at 1,000 ft (300m) when it caught fire and plunged onto fields west of Luxor, officials said.

At least two people, including the balloon's pilot, survived, reportedly by jumping out of the balloon before it crashed.

Luxor is home to some of Egypt's most famous pharaonic-era ruins.

It lies on the banks of the River Nile in the south of the country, and has long been a popular tourist destination.

Continue reading the main story

"Start Quote

People were jumping out of the balloon from about the height of a seven-storey building"

End Quote Witness Cherry Tohamy

British tour operator Thomas Cook confirmed that four of its clients were on board the balloon - two had died and two were in hospital.

"We have a very experienced team in resort with the two guests in the local hospital, and we're providing our full support to the family and friends of the deceased at this difficult time," Peter Fankhauser, CEO of Thomas Cook UK and Europe, said.

The Chinese embassy in Egypt has confirmed that nine Hong Kong tourists died in the balloon crash.

Egyptian police have said the other tourists include four from Japan and two from France. At least one Egyptian also died.

Earlier reports suggested 19 people had been killed.

Previous crashes

The crash happened on one of the many dawn hot air balloon flights that give tourists an aerial view of Luxor's famous sites, such as Karnak temple and the royal tombs in the Valley of the Kings.

The balloon's operating company, Sky Cruise, confirmed that a gas cylinder exploded on board the balloon, bringing it down in an agricultural area just west of Luxor.

Continue reading the main story

Luxor

• Site of ancient city of Thebes
• Temples of Karnak and Luxor in city itself
• Royal tombs in Valley of the Kings and Queens lie across River Nile
• Dawn hot air balloon rides popular way to see sites
• Luxor has seen a drop in visitor numbers since the 2011 uprising

Cherry Tohamy's balloon was landing when she heard an explosion and saw flames from a balloon above.

"Our pilot told us that the balloon had hit a high pressure electrical cable and a cylinder on board exploded," said Ms Tohamy, an Egyptian living in Kuwait who was on holiday in Luxor.

"People were jumping out of the balloon from about the height of a seven-storey building."

She said ambulances were at the scene within 15 minutes.

Another witness, US photographer Christopher Michel said his balloon was just about to land when he "heard an explosion and saw smoke".

Hot air balloon crashes have happened in Luxor before. Two British women were among 16 injured when their balloon came down after hitting a communications tower in April 2009.

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Linda Lea: "It brought back all the mayhem and horrific events of that day".

Balloons were grounded for six months after that crash while safety measures were tightened up and pilots were re-trained by Egypt's Civil Aviation Authority.

But, says the BBC's Aleem Maqbool in Cairo, since the 2011 revolution that toppled President Hosni Mubarak, the rule of law is not being respected in many aspects of Egyptian life, so it has been difficult for the tourism ministry to impose its authority on sites like this.

Luxor, like many other parts of Egypt, has seen a sharp downturn in visitor numbers since the uprising.

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Mali Islamists warned on Sharia

26 February 2013 Last updated at 06:41 ET By Mark Doyle BBC International Development Correspondent

A "manifesto" left by Islamists in Mali indicates that disagreements between them may have led to their defeat - so far - on the battlefield.

The document, published by a French newspaper, is said to contain advice by the head of al-Qaeda in the Islamic Maghreb (AQIM), Abdel Malek Droukdel.

It criticises militants in Mali for implementing Islamic law too quickly and predicts France's intervention.

The document was found by journalists in Timbuktu, northern Mali.

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The highly unusual document is written almost in the style of a chief executive officer issuing instructions to his middle management"

End Quote

The advice and instructions, said to be given by the Algerian Mr Droukdel, revealed in the Liberation paper, are dated 20 July 2012 - four months after a loose coalition of al-Qaeda-affiliated groups and ethnic Tuareg fighters took control of northern Mali.

In the document, versions of which were earlier published by Associated Press news agency and French radio station RFI, Mr Droukdel warns his subordinates not to implement Islamic law too quickly.

This advice, he said, was because the jihadist project in Mali is "a baby in its first days that is still crawling".

The highly unusual document is written almost in the style of a chief executive officer issuing instructions to his middle management.

The AQIM leader criticises his subordinates for allowing Islamists to destroy shrines they considered "idolatrous".

'Hotheads'

This destruction was one of the acts which drew the attention of the outside world to northern Mali.

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Mali's main Islamist militants

• Ansar Dine - home-grown movement with a number of Tuareg fighters who returned from Libya after fighting alongside Muammar Gaddafi's troops.
• Islamic Movement for Azawad - an offshoot of Ansar Dine which says it rejects "terrorism" and wants dialogue
• Al-Qaeda in the Islamic Maghreb (AQIM) - al-Qaeda's North African wing, with roots in Algeria
• Movement for Unity and Jihad in West Africa (Mujao) - an AQIM splinter group whose aim is to spread jihad to the whole of West Africa
• Signed-in-Blood Battalion - an AQIM offshoot committed to a global jihad and responsible for Algerian gas facility siege

Mr Droukdel also predicts a Western military intervention against the Islamist project in Mali.

He was right, of course; French forces spearheaded the expulsion of the Islamists from Mali's main towns early this year.

The criticism of subordinates in the Islamist movement by Mr Droukdel appears to indicate that he thinks some of the groups operating in northern Mali were hotheads who needed to be reigned in and adopt a more softly-softly approach if the ultimate aim of a jihadist state was to be achieved.

If this "hothead theory" is correct, it may help explain the apparently irrational military advance that the Islamists made towards the Malian capital, Bamako, in early January.

Experienced Mali-watchers were perplexed by the sudden military lurch southwards made by the Malian Islamist groups, Ansar Dine and Movement for Unity and Jihad in West Africa (Mujao), which prompted the French response.

These observers said it was most unlikely the Islamists could ever control the whole of Mali - and that they should have been aware of this.

The Mali-watchers pointed out that while northern Mali is sparsely populated and contains some groups sympathetic with Islamists or the ethnic Tuaregs, the same cannot be said of the south, where most people oppose the radicals and separatists.

It therefore seemed irrational when these groups advanced in early January on the north-eastern town of Konna, which is within striking distance of a major military airbase at Severe, near the city of Mopti.

The threat to the Severe airbase, the biggest in central Mali, appears to have been what made the French move - and defeat the Islamists, so far, in the main towns and cities of the north.

Of course, it is possible there were also other sparks to the war between the French and the Islamists. But the hothead theory appears to be bolstered by the Droukdel instructions and advice.

Punishment condemned

The document is described by Mr Droukdel as "a set of directions and recommendations… to the brother emirs in the Sahara".

In essence, it advises caution in order to avoid a "very probable, perhaps certain" military intervention by Western powers "who still have many cards to play".

The AQIM leader advises his direct subordinates against being "at the forefront". Many of the AQIM top cadres are thought to be Algerian.

Mr Droukdel says the strategy should be, rather, to include local Malian activists to share both the management of the jihad and any possible blame if the West intervenes and failure ensues.

"The aim of building these bridges," Mr Droukdel says, "is to make it so that our Mujahedeen are no longer isolated in society, and to integrate with the different factions, including the big tribes and main rebel movements and tribal chiefs".

The aim of the manifesto is clearly jihadist. But the tone is tactical and managerial - in contrast to the passionate, extremist image sometimes attributed in the West to the Islamists.

In the document Mr Droukdel strongly criticises "wrong policies" and "the extreme speed with which you applied Sharia [Islamic law]".

He writes about two major mistakes "which I hope you will not repeat:

• Point 1: The destruction of the shrines, because on an internal front we are not strong, and there is a potential for an external intervention, and negative repercussions are expected

• Point 2: The application of religious punishment… the fact that you prevented women from going out, and prevented children from playing… is contradictory to the policy".

The tone of the document implies that a rational, long-term planning mechanism is in place.

One implication of this is that while the French military may have scored impressive short term success, AQIM and its allies will almost certainly be back to try to re-implement the plan at a later date.

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Europe jitters over Italy deadlock

26 February 2013 Last updated at 06:59 ET

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The BBC's Katya Adler says many people are lost for words over the result

European politicians and markets have reacted anxiously after Italy's general election produced a stalemate between centre-right and centre-left blocs.

France and Germany urged continued reform, while Spain described the result as a "jump to nowhere".

Italian markets fell sharply while others in Europe and around the world opened down.

Centre-right leader Silvio Berlusconi said fresh elections should be avoided, and called for a period of reflection.

The BBC's Alan Johnston in Rome says he was hinting at the possibility of considering what would be a very awkward alliance with his opponents on the centre-left.

With all domestic votes counted, Pier Luigi Bersani's centre-left bloc won the lower house vote but has failed to secure a majority in the Senate. Control of both houses is needed to govern.

A protest movement led by comedian Beppe Grillo won 25%, but the centrist bloc led by current Prime Minister Mario Monti came a poor fourth, with about 10%.

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The horse-trading will now begin. Pier Luigi Bersani has enough votes to dominate the lower house. That is not the case in the Senate. Even if he were to join forces with the former Prime Minister Mario Monti he would not be able to command a majority there.

He may try to operate a minority government but that will clearly be unstable. There may be an attempt to form a wider coalition to govern the country at a time of economic crisis but it is unlikely to survive the summer.

One unanswered question is whether Beppe Grillo will be open to a deal. Would his movement support, say, a centre-left coalition in exchange for widespread reforms of the political system? We don't know. Buoyed up by success he has only promised to clear out the political class.

Sooner rather than later the country will hold another election.

The outcome of the election, which comes amid a deep recession and tough austerity measures, was so close between the two main blocs that the margin of victory given in interior ministry figures was less than 1% in both houses of parliament.

The winning bloc automatically gets a majority in the lower house, but seats in the Senate depend more on success in individual regions.

'Jump to nowhere'

European politicians reacted with a mixture of calm and concern.

French Finance Minister Pierre Moscovici said the result "creates problems" but would not undermine the European single currency.

German Foreign Minister Guido Westerwelle, meanwhile, urged Italy to continue its reforms, and called for a government to be formed "as quickly as possible".

But his Spanish counterpart there was "extreme concern" about the financial consequences.

"This is a jump to nowhere that does not bode well either for Italy or for Europe," Garcia-Margallo said, quoted by Reuters news agency.

Shares and the euro fell as the outcome of the election became clear, amid concern that the reform agenda would be delayed.

Italy's FTSE MIB index fell 4.7%, while London's FTSE 100 shed 1.5% and share markets in Frankfurt and Paris also fell more than 2%.

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Chamber of Deputies (lower house):

• Pier Luigi Bersani's centre-left Democratic Party-led bloc: 29.54% of the vote (will have 340 seats as the winning bloc)
• Silvio Berlusconi's centre-right People of Freedom Party-led bloc: 29.18% (124 seats)
• Beppe Grillo's anti-austerity Five Star Movement: 25.55% (108 seats)
• Mario Monti's Civic Choice movement: 10.56% (45 seats)

The Senate (upper house):

• Neither of the two biggest parties and their allies thought to be close to the 158 seats needed to have a working majority
• Latest figures show the Democratic Party bloc winning about 113 seats (31.63% of the vote)
• The People of Freedom Party bloc to win 116 seats (30.72% of the vote)
• Five Star Movement to win 54 seats (23.79%)
• Civic Choice 18 seats (9.13%)

Source: Interior ministry

In New York, the Dow Jones Industrial Average fell 1.55% and Asian markets lost between 0.7% and 2.2%.

The yield on Italian government bonds rose sharply, implying markets are more wary of lending to Italy.

'Sacrifices'

BBC economics correspondent Andrew Walker says it will be difficult to form a new government with an agreed economic programme.

As Mr Berlusconi conceded to his opponents in the lower house, he said that everyone should now reflect on what to do next so that fresh elections could be avoided.

"Italy must be governed," Mr Berlusconi said. "Everyone must be prepared to make sacrifices."

He would not do a deal with Mr Monti's centrist bloc, he added, saying that the prime minister's poor showing was down to popular discontent with his austerity measures.

Mr Berlusconi, 76, left office in November 2011, facing claims of economic mismanagement as the eurozone struggled to contain Italy's debt crisis.

Italians have had more than a year of technocratic government under Mario Monti. But his attempts to reduce spending caused widespread public resentment and his decision to head a centrist list in the parliamentary elections attracted little more than 10% of the vote.

In a surge in support, Beppe Grillo's anti-austerity Five Star Movement attracted more than a quarter of the vote, making it the most popular single party in the lower chamber.

Correspondents say this was an extraordinary success for the Genoese comic, whose tours around the country throughout the election campaign - hurling insults against a discredited political class - resulted in his party performing well in both chambers.

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Park sworn in as S Korea president

24 February 2013 Last updated at 23:38 ET

Park Geun-hye promised a tough stance on national security and an era of economic revival as she was sworn in as South Korea's president.

Ms Park, who defeated liberal rival Moon Jae-in in December's general election, took the oath of office in front of tens of thousands of people.

North Korea's recent nuclear test posed a "challenge to the survival" of the Korean people, she said.

Trust-building was needed to tackle the "extremely serious" security situation.

Ms Park, the first woman to lead South Korea, succeeds President Lee Myung-bak, of the same Saenuri Party, who stepped down as the law required after a five-year term.

The 61-year-old is the daughter of former military strongman Park Chung-hee, who ruled South Korea for almost two decades.

She takes office amid high tensions on the Korean peninsula in the wake of a North Korean nuclear test, on 12 February.

'Step-by-step engagement'

In her inauguration speech, Ms Park said she would "not tolerate any action that threatens the lives of our people and the security of our nation".

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• Daughter of former President Park Chung-hee
• Served as South Korea's first lady after her mother was murdered by a North Korean gunman in 1974
• First elected to the national assembly in 1998
• First bid for the presidency in 2007
• Has promised to redistribute wealth, reform big conglomerates and seek greater engagement with North Korea

"North Korea's recent nuclear test is a challenge to the survival and future of the Korean people, and there should be no mistake that the biggest victim will be none other than North Korea itself."

Calling on North Korea to abandon its nuclear ambitions, she said that in a challenging security environment South Korea could not "afford to remain where we are".

A trust-building process was needed, she said, promising to move forward "step-by-step on the basis of credible deterrence".

"Trust can be built through dialogue and by honouring promises that have already been made," she said. "It is my hope that North Korea will abide by international norms and make the right choice so that the trust-building process on the Korean Peninsula can move forward."

North Korea's nuclear test - its third - followed its apparently successful launch of a three-stage rocket to put a satellite into orbit in December. That launch was condemned by the US Security Council as a banned test of missile technology; diplomatic efforts to agree a response to the nuclear test are ongoing.

Ties between the two Koreas chilled considerably under Lee Myung-bak over his move to link aid to concessions on the nuclear issue. Ahead of the election Ms Park had spoken out on the need for more dialogue but the recent nuclear test may make it harder for her to appear conciliatory towards Pyongyang, observers say.

'Unfair practices'

On the economy, Ms Park promised more focus on a "creative economy" founded in "economic democratisation" that would expand beyond existing markets and sectors.

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Williamson: Park faces dual challenges

South Korea's economic growth has slowed, the population is rapidly ageing, and demands for a fairer division of wealth are now being voiced on both sides of the political divide, reports the BBC's Lucy Williamson in Seoul.

Policies would be brought in to help small and medium-sized enterprises flourish, Ms Park said.

"By rooting out various unfair practices and rectifying the misguided habits of the past... we will provide active support to ensure that everyone can live up to their fullest potential," she added, in an apparent nod to resentment towards the country's giant "chaebol" conglomerates.

She also promised a "clean, transparent and competent government".

"I will endeavour to shed popular distrust of government and strive to elevate the capital of trust," she said.

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Day-Lewis makes Oscars history

25 February 2013 Last updated at 02:02 ET

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Watch some of the key moments of the ceremony

Daniel Day-Lewis has made Oscars history by becoming the first person to win the best actor prize three times.

The British-born star, who had been the runaway favourite, was rewarded for his role in Steven Spielberg's Lincoln.

"I really don't know how any of this happened. I do know I've received much more than my fair share of good fortune in my life," he said.

Ben Affleck's Iran-set rescue thriller Argo beat Lincoln to the top prize for best picture.

In a live broadcast from the White House, First Lady Michelle Obama joined Jack Nicholson to help present the best picture prize at the end of the night.

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"Start Quote

I do know I've received much more than my fair share of good fortune in my life"

End Quote Daniel Day-Lewis

Argo, directed by and starring Affleck, is the first best picture winner not to have also been nominated for best director since 1989's Driving Miss Daisy.

Oscars host Seth MacFarlane joked at the start of the ceremony: "Argo's story is so top-secret that its director remains unknown to the Academy."

Accepting his award alongside fellow producers George Clooney and Grant Heslov, Affleck paid tribute to the "genius" Steven Spielberg, who lost out in the same category.

Referring to his previous Oscar success with 1997's Good Will Hunting, he said: "I never thought I would be back here and I am because of so many of you who are here tonight.

"It doesn't matter how you get knocked down in life, all that matters is that you get up."

Daniel Day-Lewis, who holds UK-Irish citizenship, previously won best actor for My Left Foot (in 1990) and There Will Be Blood (2008) and has a reputation for immersing himself in his roles.

This year's victory puts Day-Lewis ahead of Hollywood legends Jack Nicholson, Marlon Brando, Dustin Hoffman and Tom Hanks - who all have two best actor wins to their names.

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Anne Hathaway on winning her Oscar

Jennifer Lawrence won best actress for her role as a troubled young widow in Silver Linings Playbook.

The 22-year-old, who stumbled over her dress on her way to the stage, joked: "You guys are just standing up because you feel bad that I fell over and that's embarrassing."

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OSCARS - Main winners

Life Of Pi - Four awards, including best director for Ang Lee

Argo - Three awards, including best film

Les Miserables - Three awards, including best supporting actress for Anne Hathaway

Django Unchained, Lincoln, Skyfall - Two awards apiece

Surveying the audience in Hollywood's Dolby Theatre, she added: "This is nuts." It was the first Oscar win for Lawrence, who was previously nominated for best actress in 2011 for her performance in Winter's Bone.

Anne Hathaway won best supporting actress for her role as tragic factory worker Fantine in movie musical Les Miserables.

With her cropped hair and gaunt face, Hathaway's teary version of I Dreamed a Dream had made her an Oscar favourite. "It came true," the actress said when she collected her statuette.

Hathaway's Oscar was her first after previously nominated in 2008 for Rachel Getting Married.

She said: "Here's hoping that someday in the not too distant future, the misfortunes of Fantine will only be found in stories and not in real life."

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Adele: "Thank you so much, this is amazing."

British singer Adele won the Oscar for best original song for her Bond theme Skyfall, which she also performed during the show.

She struggled through tears to thank the Bond producers and her co-writer Paul Epworth, who collected the award alongside her.

Ang Lee won his second Oscar for directing Life of Pi, the adaption of Yann Martel's fantasy novel about a boy stranded in a lifeboat with a Bengal tiger. The film won four Oscars in total, more than any other film.

The Taiwanese-born director, who won previously for Brokeback Mountain in 2006, exclaimed: "Thank you, movie god!"

Life of Pi also picked up Oscars for cinematography, original score and visual effects.

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Watch the stars arrive at the 2013 Academy Awards

Christoph Waltz won his second Oscar for best supporting actor in a Quentin Tarantino film, this time for playing a German bounty hunter in the slave revenge story Django Unchained.

Picking up the award, Waltz offered thanks to his character Dr King Schultz and to "his creator and the creator of his awe-inspiring world, Quentin Tarantino".

The Austrian actor won his first Oscar as a Nazi colonel in Tarantino's Inglourious Basterds in 2010.

It was the first time since 2006 that the Oscars for best picture, director and four acting categories all went to different films.

That year saw Crash named best picture, Philip Seymour Hoffman as best actor, Reese Witherspoon as best actress, George Clooney the best supporting actor and Rachel Weisz as best supporting actress - as well as Lee's win for Brokeback Mountain.

Tarantino won the original screenplay prize for Django Unchained, adding to the Oscar he won for writing Pulp Fiction in 1994. "I have to cast the right people to make those characters come alive and boy this time did I do it," he said.

The best adapted screenplay Oscar went to Chris Terrio for Argo, while Pixar's Scottish adventure Brave won best animated feature.

The award for costume design went to Briton Jacqueline Durran for Anna Karenina, who described the win as "completely overwhelming" and paid tribute to her children, who were "fast asleep in England".

The make-up and hairstyling award went to fellow Brits Lisa Westcott and Julie Dartnell for Les Miserables. Tom Hooper's musical also picked up the Oscar for sound mixing.

Unusually, there was a tie in the sound editing category - the Oscar was shared by Zero Dark Thirty and Skyfall.

Searching for Sugar Man, which tells the story of musician Rodriguez who disappeared from public view in the early 1970s but developed a cult following in South Africa, won the Oscar for best documentary.

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"Start Quote

I honestly cannot believe I'm here - It's an honour that everyone else said 'no'"

End Quote Seth MacFarlane on hosting the Oscars

Producer Simon Chinn said: "Rodriguez isn't here tonight because he didn't want to take any of the credit himself."

Austrian drama Amour won the Oscar for best foreign language film. The French-language film, directed by Michael Haneke, portrays the indignities of an elderly Parisian couple - Anne and Georges - as they cope with Anne's wish to die after a stroke.

The ceremony was hosted for the first time by Seth MacFarlane, who created the animated comedy Family Guy and directed the movie Ted.

"I honestly cannot believe I'm here," he quipped at the start of the show. "It's an honour that everyone else said 'no'."

The show also included a tribute to the James Bond franchise, followed by an appearance by Dame Shirley Bassey, who sang her theme song to the 1960s Bond classic Goldfinger.

A salute to movie musicals saw Chicago Oscar-winner Catherine Zeta-Jones and Dreamgirls winner Jennifer Hudson join Les Miserables cast members Hugh Jackman, Anne Hathaway, Russell Crowe, Helena Bonham Carter and Amanda Seyfried on stage.

During the section of the show that pays tribute to those who died in 2012, Barbra Streisand sang the late Marvin Hamlisch's The Way We Were, from the 1973 romantic drama in which she starred with Robert Redford. It was Streisand's first Oscars performance for 36 years.

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