Barack Obama In Jordan To Talk Syria With King

Barack Obama has arrived in Jordan for talks with King Abdullah II - which are expected to focus on the Syrian war and the influx of refugees into the country.

It is the final stop on a four-day trip to the Middle East, which included his first visit as president to Israel and the Palestinian territories.

More than 400,000 Syrian refugees have crossed into Jordan to escape two years of bloodshed at home, crowding refugee camps and overwhelming aid agencies run by this important US ally.

Mr Abdullah has voiced fears that extremists and terrorists could create a regional base in his country.

Mr Obama will also seek to bolster Jordan's efforts to reform its government in an attempt to stave off an Arab Spring-style revolution that has led to the downfall of longtime leaders in Egypt, Tunisia and Libya.

Obama was greeted by the foreign minister in Jordan

After Air Force One touched down in the capital of Amman, Mr Obama headed by motorcade to al-Hummar Palace for meetings with the king.

"I apologise for the delay. We ended up having a dust storm," Mr Obama told Mr Abdullah after he was an hour late.

On Saturday, Mr Obama plans several hours of sightseeing, a tour of the fabled ancient city of Petra before the return trip to the White House.

In Israel, Mr Obama paid respects to the nation's heroes and to victims of the Holocaust. He also solemnly reaffirmed the Jewish state's right to exist.

He also toured the Yad Vashem Holocaust memorial, declaring afterward that the memorial illustrates the depravity to which man can sink but also serves as a reminder of the "righteous among the nations who refused to be bystanders".

The Hall of Names chamber documents some 600 victims of the Holocaust

Mr Obama was criticised in Israel for his 2009 Cairo speech in which he gave only the example of the Holocaust as reason for justifying Israel's existence.

In clear response to the criticism, at Yad Vashem, he said: "Here on your ancient land, let it be said for all the world to hear. The state of Israel does not exist because of the Holocaust, but with the survival of a strong Jewish state of Israel, such a holocaust will never happen again."

Accompanied by Israeli Prime Minister Benjamin Netanyahu and President Shimon Peres, Mr Obama laid wreaths at the graves of Theodor Herzl, the founder of modern Zionism and former Israeli Prime Minister Yitzhak Rabin, who was assassinated in 1995.

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Israel Apologises For Gaza Flotilla Raid

The Israeli Prime Minister has apologised for a raid on a Gaza flotilla which resulted in the deaths of nine Turkish activists.

Benjamin Netanyahu announced the restoration of normal diplomatic relations with Turkey and expressed regret during a phone call with his Turkish counterpart, Recep Tayyip Erdogan.

President Barack Obama helped arrange the call shortly before leaving Israel.

In a statement released by the White House, Mr Obama said: "The United States deeply values our close partnerships with both Turkey and Israel, and we attach great importance to the restoration of positive relations between them in order to advance regional peace and security.

Video taken on-board the ship showed the arrival of Israeli commandos

"I am hopeful that today's exchange between the two leaders will enable them to engage in deeper cooperation on this and a range of other challenges and opportunities," he added.

The flotilla incident severely harmed ties between the once-close allies. Turkey withdrew its ambassador from Israel, and diplomatic ties and military cooperation were greatly scaled back.

Mr Netanyahu said the "tragic results" were not intentional and Israel "expressed remorse" for the loss of life. He cited "operational mistakes".

The nine pro-Palestinian activists were killed aboard the Turkish-flagged ship Mavi Marmara on May 31, 2010, after passengers resisted a takeover by Israeli naval commandos.

The flotilla was en route to Gaza in an attempt to bring international attention to Israel's blockade of the Palestinian territory.

At the time, the former legal adviser to Israel's foreign ministry, Alan Baker, said it was tragic that lives had been lost, but there was no need for an apology.

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Cyprus Bailout: MPs Stumble Towards Deal

Cyprus Bailout: Threat To Savings

Updated: 7:36am UK, Saturday 23 March 2013

By Ashish Joshi, Sky News Correspondent

Finally late into Friday night - an agreement on Plan B, meaning Cyprus has moved one giant step towards securing a Brussels bailout.

It includes a solidarity fund pooling together state assets and the granting of power to the Government to control bank capital.

The latter move is to prevent a run on the banks when their doors finally open on Tuesday.

There will also be a restructuring of the country's banks and a savings tax on Cypriot savers.

The details of the tax have still to be finalised, but the framework is in place.

It could mean savings over 100,000 euros held in Bank of Cyprus accounts being taxed up to 20%, according to one source close to the negotiations.

The same source said if that proposal is rejected there will be a plan to impose a tax of around 10% on all Cypriot bank accounts over 100,000 euros.

The threat of savers being hit hangs over the heads of people like Loizos Michael.

The 60-year-old tailor worked hard for 35 years, building up a good business.

He was looking forward to a wealthy retirement. Not anymore. Times are hard.

Speaking from his small tailor's shop in central Nicosia, Mr Michael said: "With the banks being closed, it is hard because I don't have a credit card and so cash flow is a problem.

"Even filling your car with petrol needs thinking about.

"Cypriots have always been workers by nature and nobody could have imagined that unemployment would be so high.

"This has hit us hard in the pockets."

Cyprus is weathering a storm - the likes of which this Mediterranean island has never faced in her young history.

Mr Michael said he knew things were getting bad, but expected solutions to be found to avoid ordinary people having to suffer.

"I expected something better. But now, it looks like the problem has been brewing for some time," he said.

"There used to be some people talking about the crisis, but now everyone's talking about it.

"I think things are harder now than just after the war. After the war of '74 people could still find work. Now, there is just no work so people have no money. What can we do?"

In the 1990s, Cyprus boasted a dynamic, booming economy, but it grew and unchecked.

An overbloated banking sector exposed to Greek debt has crippled the country's economy.

Now people like Loizos Michael must pay the price. He and the rest of Cyprus will soon find out exactly how much that is going to be.

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Syria Bombing Kills Pro-Assad Cleric Al Buti

A suicide bombing at a Syrian mosque has killed a senior cleric and supporter of President Bashar al Assad, state television has said.

Mohammed al Buti - imam of the historic Ummayyad Mosque - was killed when a bomber blew himself up during packed evening prayers at the Iman Mosque in Damascus.

The Syrian health ministry said 42 people died in the bombing and 84 were injured.

The attack took place at a mosque in Damascus

It is unclear if the explosion was caused by a car bomb or a mortar shell.

TV footage showed wounded people and bodies with severed limbs on the blood-stained floor of the mosque, which has since been sealed off by the military.

The Sunni preacher's death is a big blow to Syria's embattled minority Alawite leader, who is fighting mainly Sunni rebels who want to oust him.

The 84-year-old imam has been a vocal supporter of the Assad regime since the early days of his father and predecessor, the late President Hafez Assad.

In recent months, Syrian TV has carried his sermons from mosques in Damascus live every week.

He also has a regular religious TV programme.

In one of his televised speeches, Dr Buti had described the opposition to Mr Assad as "scum".

He also used his position to call on Syrians to join the armed forces and help Mr Assad defeat his rivals in the country's two-year-long rebellion.

He was remembered for a sermon he gave early in the conflict, in which he told the president he had had a vision that Syria would "receive God's wrath", but would survive.

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Cyprus Bank Limits Cash Withdrawals Amid Crisis

Russian Money Talks In Cyprus Bailout

Updated: 12:52pm UK, Thursday 21 March 2013

By Tim Marshall, Foreign Affairs Editor

Even allowing for inflation, 10 billion euros can still buy you quite a lot these days.

For example, if you were Russia, and you used your 10 billion to bail out Cyprus, you could buy another few decades of European dependence on you for energy.

You might also get a dent in people's confidence in the EU thrown in. If you invested it all wisely, in the longer term you could even get a warm-water naval port out of it.

Not bad a return.

The Russian offer to better the terms of the EU bailout for Cyprus is not just commercial. It is an attempt to regain influence in a region of growing energy importance.

Russia had already lost power in the Mediterranean and Middle East when Egypt was flipped and turned towards the USA.

After the implosion of the Soviet empire in 1989, Moscow lost any chance of a quick return to the region and was left only with a small port on the coast of Syria to play with.

But Russia is now back on its feet, and the discovery of the potentially huge gas field in the eastern Mediterranean has given it an opportunity to again engage in the region.

It has already done a deal via Gazprom with the Israeli's over its gas fields, and is now trying to get in on Cyprus's potential gold pot.

Europe has for years been looking for a way to wean itself off energy dependency on Russia, and Cyprus was one route.

However, if Gazprom secures the rights to explore the Cypriot gas fields, this will give Moscow massive influence there.

Influence is power and that power could feasibly result, down the line, in Cyprus suggesting that the British bases on their island close.

From there, the possibility of a Russian base might emerge in what is a key part of Nato's Mediterranean strategy and an intelligence gathering post.

The UK, Greece, Turkey, and the US - all Nato members - might object. But money talks and we have seen in the last decade that Russia wins some and loses some. 

The ties between Cyprus and Russia are not just commercial and political.

We should not underestimate the cultural ties between the two, which are based on Russia's perception of itself as the guardian of Orthodox Christianity.

Whether Russia wins this geopolitical fight or not, it will continue to watch with interest the political and social fallout of the euro crisis and the democratic deficit which has been part of it.

The EU has crossed an intellectual line in Cyprus. Previous bailouts of other countries may have required austerity measures, but now unelected Eurocrats, in consultation with Cypriot leaders, have told the people that they are going to take up to 10% of their money without asking them. In Cyprus they have a word for this - theft.

This has been noticed across the European Union. If it might happen in Cyprus then it might happen in Greece, or Spain, or Italy. The raison d'etre of the Union is to ensure prosperity and the safety of its peoples, not to take money from their bank accounts.

The Cypriot politicians fear they could become the target of retribution from the people and so have hot-footed their way to Russia.

Not only might they get what in the short term looks a much better deal from Moscow, but, and this might be really what's going on, they might force Brussels to offer a much better deal to prevent Cyprus from "falling" to the Russians.

Either way - terms and conditions apply.

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Sarkozy Faces Charges In Corruption Probe

Preliminary charges have been filed against Nicolas Sarkozy over allegations he took financial advantage of an elderly L'Oreal heiress.

The move means the former French president is under formal investigation, accused of accepting envelopes stuffed with cash from Liliane Bettencourt to illegally finance his 2007 election campaign.

The 90-year-old was declared in a state of dementia in 2006 and was placed under the guardianship of her family in 2011.

The preliminary charges were issued after Mr Sarkozy was questioned for several hours in a Bordeaux courthouse, according to the prosecutor's office. 

A statement said he had been placed under investigation "for taking advantage of a vulnerable person in February 2007 and during 2007 to the detriment of Liliane Bettencourt".

Under French law, preliminary charges mean the investigating magistrate has reason to believe wrongdoing was committed, but allows more time to investigate. The charges may later be dropped or could lead to a trial.

Mr Sarkozy's lawyer Thierry Herzog criticised the decision as "legally incoherent and unfair".

Earlier, the former president was unexpectedly summoned for a face-to-face encounter with Ms Bettencourt's ex-butler Pascal Bonnefoy over the claims.

Jean-Michel Gentil, the judge in charge of the case, was hoping the confrontation would allow him to establish how many times Mr Sarkozy visited Ms Bettencourt during his successful campaign.

The 58-year-old has always maintained he visited her home only once, contrary to testimony from several members of the multi-billionaire's staff.

So far, 17 people have been charged in the case.

Liliane Bettencourt, 90, has been in poor health for years

In November, magistrates decided not to formally charge Mr Sarkozy after a 12-hour interrogation but continued investigating the allegations against him.

Ms Bettencourt's former accountant told police in 2010 that she had handed envelopes filled with cash to the heiress' right-hand man, Patrice de Maistre, on the understanding it was to be passed on to Mr Sarkozy's campaign treasurer, Eric Woerth.

Mr Sarkozy lost his immunity from prosecution when he was defeated in the 2012 presidential election by Socialist Francois Hollande.

Since losing office he has had to contend with a string of allegations relating to his five years in power and various electoral campaigns he has been involved in.

As well as the Bettencourt case, he faces probes into alleged cronyism in the awarding of contracts for opinion polls, an illegal police investigation into journalists and alleged kickbacks on a Pakistani arms deal used to finance the right in 1995, when Mr Sarkozy was budget minister.

He has always denied any wrongdoing and remains popular with right-wing activists despite being regarded as a divisive figure among the swing voters who tend to decide French elections.

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Obama: US Support For Israel 'Never Stronger'

President Barack Obama has pledged America's continued commitment to the security of Israel, while reinforcing the need to prevent a nuclear armed Iran.

During a joint news conference with Israeli Prime Minister Benjamin Netanyahu, Mr Obama said: "America's support for Israel security is unprecedented and the alliance between the two nations has never been stronger."

The president is making the first overseas visit of his second term to the Middle East, including the three-day tour of Israel and the Palestinian Territories. He is then due to continue on to neighbouring Jordan.

Mr Obama said he would continue to work with the US Congress on securing funding for Israel's Iron Dome anti-missile defence system, which he toured earlier in his visit.

According to Israeli commentators, Obama and Netanyahu 'dislike each other'

On the issue of Iran, Mr Netanyahu commended the US president for his "great success in mobilising the international community" and said he is "absolutely convinced" Mr Obama is committed to keeping Iran from acquiring a nuclear weapon.

However, the Israeli prime minister said his country "cannot cede the right to defend itself to others", hinting at a possible go-it-alone policy if necessary to halt Iran's nuclear programme.

Mr Obama said the US will continue to consult with Israel and other nations on a diplomatic solution on the issue, but did not rule out the possibility of military action, insisting that "all options are on the table".

The two leaders also echoed a desire to see a peaceful solution in Syria, and a shared determination to ensure that the deadly arsenal of weapons in the war-torn country do not fall into the wrong hands. 

But perhaps the most pressing question connected to Mr Obama's Middle East trip is whether peace talks can emerge between Israel and the Palestinians.

Palestinians in Gaza and the West Bank protested against Obama's visit

The president will travel to the occupied West Bank on Thursday to meet Palestinian President Mahmoud Abbas, and US officials have said Mr Obama will try to coax the Palestinians and Israelis back to peace talks.

However, the White House has deliberately minimised hopes of any major breakthroughs, a reversal from Mr Obama's first four years in office when aides said he would visit the Jewish state only if he had something concrete to accomplish.

Mr Netanyahu said he "hoped the president's visit will help Israel turn the page in its relations with the Palestinians" and lead to negotiations "that will end our conflict once and for all".

Mr Obama insisted that a central element for a lasting peace must be a strong and lasting Israel state that exists alongside its Palestinian neighbour.

The president said he would have more to say on the issue after he flies to the West Bank city of Ramallah to meet Mr Abbas.

In Ramallah on Tuesday, Palestinian police scuffled with scores of demonstrators protesting against Mr Obama's visit.

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North Korea Issues Fresh Threat To The US

By Mark Stone, Asia Correspondent

North Korea has threatened to attack American airbases on the Japanese island of Okinawa and the Pacific island of Guam.

A statement by Kim Yong Chul, the spokesman of the Supreme Command of the Korean People's Army warned of "military actions".

"The US should not forget that the Anderson Air Force Base on Guam where B-52 bombers take off and naval bases in Japan and Okinawa where nuclear-powered submarines are launched are within the striking range of the Democratic People's Republic of Korea (DPRK) precision strike means," the statement read.

"Now that the US started open nuclear blackmail and threat, the DPRK, too, will move to take corresponding military actions."

The words mark the latest escalation in a lengthy stand-off as North Korea defies calls from the rest of the world to halt its dual nuclear and ballistic missile programmes.

The American government has not yet responded to the threat.

Military guard posts of South Korea (front) and North Korea (far)

British diplomatic sources speaking to Sky News from Seoul have said the UK Government "takes any threats seriously and there is some concern over the more harsh rhetoric coming from the DPRK".

However, the source insisted that there was no panic or alarm among diplomatic circles and that UK travel advice to South Korea remains unchanged.

The latest threat from North Korea is a direct response to a series of joint military exercises involving the US and South Korea.

On Tuesday, the US Air Force deployed its giant B-52 bombers from their base on Guam. The planes, which are capable of carrying and deploying nuclear bombs, flew sorties over the Korean peninsula as part of the military exercise.

The Pentagon in Washington confirmed the B-52 deployment. Spokesman George Little said the US wanted to underline its commitment and capacity to defend South Korea against an attack from the North.

However, the flights were condemned by Pyongyang as "an unpardonable provocation".

The Pentagon has confirmed the B-52 deployment

"The US is introducing a strategic nuclear strike means to the Korean peninsula at a time when its situation is inching close to the brink of war," the North Korean statement added.

The North Korean military does have rockets capable of reaching both Okinawa and Guam.

The surprisingly successful rocket launch in December followed a trajectory similar to that which any strike against Okinawa would take.

Okinawa is 600 miles due south of the Korean peninsula. Guam is further away, to the east of the Philippines.

While Pyongyang has proved it has the range capability, it is not clear whether or not their missiles are accurate enough to hit a specific target. And the country does not yet have the ability to carry out a nuclear strike at this range.

Earlier this month, the UN imposed the toughest sanctions yet on North Korea.

Kim Jong-Un reacted with anger, threatening to attack America, South Korea and Japan. The young and unpredictable leader toured military units calling for them to prepare for 'all out war'.

Computers are seen down at the main office of broadcaster YTN in Seoul

Meanwhile, Wednesday's unusually large cyberattack in South Korea, which brought down banks and broadcasters for one hour, has been traced to China.

Experts in Seoul claim the simultaneous attacks all bore the same IP address which was traced to the Chinese mainland.

Many of North Korea's internet and computing operations are tied to China. There is no suggestion that the Chinese government had any involvement.

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Julia Gillard Wins Leadership Poll Unopposed

Australian Prime Minister Julia Gillard has retained the leadership of the Labor party just hours after she was urged to hold a ballot.

Ms Gillard ensured she will lead the party into elections in September after her main rival Kevin Rudd admitted he did not have enough support to defeat her.

The prime minister called the vote after a senior MP said the issue was "killing" the party and needed to be resolved.

The vote was scheduled for 16:30 (05:30 GMT), but minutes before it was due to take place Mr Rudd pulled out, meaning Ms Gillard was elected unopposed, with no actual vote called.

Mr Rudd said he was honouring a pledge not to challenge for the top job made after a previous failed bid in February 2012.

"I believe in honouring my word... others take such commitments lightly, I do not.

"I have also said that the only circumstances under which I would consider a return to leadership would be if there was an overwhelming majority of the parliamentary party requesting such a return, drafting me to return and the position was vacant.

"I am here to inform you that those circumstances do not exist."

Polls suggest Mr Rudd has more public support than Ms Gillard, who is on course to lose the election to Liberal Party candidate Tony Abbott.

The latest crisis is the third time the prime minister has defeated Mr Rudd for the leadership, but she now faces a tough job to unify a deeply-divided party and turn around public support over the next six months.

"I think they're terminal. There is no way out of this," political analyst Nick Economou told Reuters.

Ms Gillard's leadership has been threatened for most of the past two years as her minority government lumbered from one crisis to another, despite an economy that avoided recession after the 2008 global crisis and has seen 21 years of continuous growth.

She first replaced Mr Rudd in a party coup in June 2010 but the move to oust an elected prime minister angered many voters, who have found it difficult to forgive her for the way she became leader.

Ms Gillard defeated Mr Rudd in a second leadership vote in February 2012, prompting her rival to promise that he would only take on the leadership again with the overwhelming support of his party.

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Mini 'Blood Labs' Can Predict A Heart Attack

By Thomas Moore, Health Correspondent

A blood testing laboratory that is so small it can be implanted under the skin has been invented by Swiss scientists.

The device, which is just 1.4cm (0.5in) long, can check up to five different substances in the blood around the clock - and transmit the results to a doctor's computer.

The inventors say the tiny "lab-on-a-chip" could be used to give an early warning of a heart attack, or monitor cancer patients having chemotherapy.

Giovanni de Micheli of the Ecole Polytechnique Federale de Lausanne said the chip can be "programmed" by coating it with chemicals which react with substances that doctors want to monitor.

"It comes in contact with fluids in the body," he said.

"The sensors react to the presence of particular compounds in the fluids and send the data outside."

Reactive chemicals on the chip provide the test results wirelessly

A patch on the surface of the skin powers the chip and transmits the information via Bluetooth to a smartphone or a tablet, which then relays it on to the doctor.

Sandro Carrara, another of the inventors, said the chip had huge potential.

"This device can predict a heart attack in advance by several hours thanks to the metabolites released by the heart when it is suffering," he said.

The prototype is being unveiled at DATE 13, (Design Automation & Test in Europe) Europe's largest electronics conference. The scientists hope the device will be commercially available within four years.

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Cyprus Bailout: Savings Tax Rejected By MPs

The Cypriot parliament has voted overwhelmingly against a deeply unpopular plan to tax bank deposits, putting an international bailout in jeopardy.

The 56-seat legislature buried the bill with 36 votes against and 19 abstentions. One member of parliament was not present.

The seizure of savers' deposits, in return for shares in the lenders, was meant to raise 5.8bn euros (£4.96bn), towards the country's financial rescue.

But outrage from Cypriots and the impact on international markets had already apparently pushed politicians to consider an exemption for smaller savers.

The draft bill being discussed in parliament was believed to suggest a 6.75% tax on all savings between 20,000 and 100,000 euros and 9.9% on all savings over 100,000 euros.

Thirty-six members of the 56-seat parliament voted against

But even that was dismissed after the ruling party tried to delay the vote for a day before deciding not to take part.

Opposition member Pambos Papageorgiou told Sky News: "We were asked to legitimise the confiscation of savings, that has never happened anywhere in the world.

"It would have set a very dangerous precedent for the whole of Europe. Don't forget that for the whole of Europe there is a law protecting up to 100,000 euros in terms of savings."

Outside parliament, thousands of protesters gathered holding up banners reading "Hands Off Cyprus" and chanted: "It will not pass."

When the bill was rejected they cheered and sang the national anthem.

EU countries said before the vote that they would withhold 10bn euros (£8.5bn) in bailout loans unless depositors in Cyprus shared the cost of the rescue.

Cypriot banks have been closed until at least Thursday

However, amid the backlash against the plan to hit all savers, eurozone finance ministers had pushed Nicosia to only target accounts with more than 100,000 euros.

The European Central Bank said after the vote it was still committed to providing liquidity to Cyprus' cash-strapped banks within "existing rules".

Banks have been closed since before the weekend in order to prevent a run on them and were not due to reopen until Thursday.

Nicholas Papadopoulos, the chairman of the parliamentary finance committee, said banks would now stay shut "for as long as we need to conclude an agreement".

He stressed this would be "in the next few days".

Protesters gathered outside parliament before the bailout vote

Meanwhile, a British military plane has arrived in Cyprus with one million euros onboard to ensure soldiers have access to cash during the crisis.

British soldiers stationed on the island and their families would be able to borrow from the money if cash machines and debit cards in Cyprus stop working completely, the Ministry of Defence said.

"The MoD is proactively approaching personnel to ask if they want their March, and future months' salaries paid into UK bank accounts, rather than Cypriot accounts," it said in a statement.

"We're determined to do everything we can to minimise the impact of the Cyprus banking crisis on our people."

Around 2,500 to 3,000 British military personnel are currently stationed in Cyprus.

Chancellor George Osborne has already pledged that military personnel and civil servants would be protected from the levy, telling Cabinet they would be "compensated in full" for any losses.

Earlier it was reported that Cyprus' finance minister had resigned amid the fallout from the original proposal, but Reuters said Michael Sarris had told them by text message that there was "no truth" to the story.

He has flown to Moscow to seek Russian financial assistance for the island.

President Nicos Anastasiades is due to meet party leaders on Wednesday morning in an attempt to find a way forward.

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Al Qaeda Says It Beheads French Hostage

Al Qaeda says it has beheaded a French hostage in reprisal for France's military intervention in Mali, according to reports.

Its North African arm claimed responsibility, Mauritania's ANI news agency reported, citing a commander for the group.

A French foreign office spokesman said they were trying to verify the report of the killing of Philippe Verdon, adding that "we don't know at the moment" whether it is reliable.

In a telephone call to the news agency, the group spokesman said Mr Verdon had been beheaded on March 10 "in response to the French military intervention in the north of Mali", ANI reported.

The AQIM commander described Mr Verdon as a French spy and said France's President Francois Hollande "bore the responsibility for the remaining hostages".

Mr Verdon and another Frenchman, Serge Lazarevic, were kidnapped from their hotel room on November 24, 2011, in the northern Mali town of Hombori.

Their families denied that the two men were mercenaries or secret service agents.

It is not known whether Mokhtar Belmokhtar is dead or alive

The killing, if proved true, would be a worrying development for Mr Hollande.

Another 14 French hostages are detained in Western Africa, including seven believed to be held in the Sahel region by al Qaeda in the Islamic Maghreb (AQIM) and its affiliates.

In August last year a video showing Mr Verdon describing the "difficult living conditions" was released on a Mauritanian website.

The hostages' families have in recent weeks expressed growing fears for their loved ones in the light of France's military actions in Mali.

Earlier Tuesday, Mr Verdon's father Jean-Pierre, complained that the families were hearing nothing from the French authorities.

"We are in a total fog and it is impossible to live this way," he told RTL radio. "We have no information."

French soldiers on the ground in Timbuktu

Asked about France's refusal to pay ransoms to kidnappers, he replied that the families had no say in such "decisions of state".

Terror chief Mokhtar Belmokhtar, an AQIM leader and one of the world's most wanted men, had pledged revenge and vowed to attack western targets in Africa after France launched a campaign to help the country's embattled government drive Islamist militants out of northern Mali.

France now has more than 4,000 troops on the ground in Mali.

It launched a nine-week assault in January to dislodge the group and other Islamist militants who had hijacked a Tuareg rebellion in Sahel and seized the northern half of the country.

They were driven out from the main cities of Gao, Timbuktu and Kidal, after which some 1,600 French and Chadian troops began searching for Islamist rebels in their pocket hideouts in the mountainous region of northern Mali.

When asked by the ANI news agency whether Belmokhtar had been killed, the AQIM commander neither denied nor confirmed it.

There have been conflicting reports on whether he was killed in the French military campaign against the rebels.

Soldiers from Chad fighting Islamists in Mali had claimed to have killed Belmokhtar, who is said to have been the mastermind behind the recent Algerian hostage crisis at a remote gas facility in the Algerian desert.

The one-eyed gangster, nicknamed Mr Marlboro because of his involvement in cigarette smuggling, had also been dubbed "The Uncatchable" by French intelligence after being linked to a series of kidnappings of foreigners in north Africa over the past decade.

France has been carrying out DNA tests to determine whether militant leaders Belmokhtar and Abdelhamid Abou Zaid are among those killed in recent fighting in Mali.

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Cyprus Urged To Protect Savings Under 100k

Eurozone finance ministers have urged Cyprus to protect savers with less than 100,000 euros (£86,000) in their accounts from a proposed tax on bank deposits.

Under a bailout deal agreed with the EU, Cyprus planned to impose a levy of 6.7% on all savings below that level.

The scheme was then changed to a 6.7% tax on all savings between 20,000 and 100,000 euros and 9.9% on all savings over 100,000 euros.

But the finance ministers, known as the Eurogroup, said they favoured a higher, 15.6% tax on richer savers in order to protect those with smaller deposits.

A statement from the group's president Jeroen Dijsselbloem said: "The Eurogroup continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below 100,000 euros."

Sparing more modest savers in favour of the higher rate on bigger deposits, would not impact on the overall amount of the bailout - 10bn euros (£8.6bn) - the group said.

Protesters gathered outside the parliament in Nicosia

On Saturday the Eurogroup told debt-ridden Cyprus it would not give it a bailout unless it recouped some of the money it needed from savers.

The scheme had the potential to affect thousands of Britons who had either moved to Cyprus to live or had money saved in Cypriot accounts.

Russia, whose citizens are thought to have up to $30bn of their cash tied up in Cypriot accounts, was left furious by the proposal.

Cyprus may still ignore the advice from the Eurogroup and its parliament is expected to vote on a plan to save its economy on Tuesday.

Foreign Secretary William Hague said Britain had been "separated" from contributing towards the bailout, adding that 3,000 Britons in the country would not suffer in the proposed raid on bank savings.

Large numbers of Russian millionaires have stashed savings in Cypriot banks

It is believed, however, that many British Cypriots may have millions in accounts that are not protected by UK rules.

It was also unclear whether British troops serving in Cyprus who had set up large savings accounts would be able to escape the tax.

Cyprus had been due to vote on the levy on Sunday but it was first pushed back until Monday and then Tuesday.

Banks were closed in the country on Monday because of a bank holiday, which prevented people withdrawing their money but cash machines across the island were emptied.

Branches will stay shut for another two days - Tuesday and Wednesday - to prevent people removing all their cash while the authorities decide what to do.

A large amount of cash was withdrawn from Cypriot banks on Monday

The decision to target bank accounts stunned Cypriots, and police sealed off parliament as about 400 people staged a noisy protest outside, aggrieved that their small island of one million people should be singled out for such treatment.

It is the first time within the EU that it has been proposed to tax savers in a country to pay for the failings of their government.

The euro and stock markets fell on concern that developments in tiny Cyprus could reignite the financial crisis in the 17-nation eurozone.

If Cyprus does tax large savers heavily there are fears that money could flood out of the country as two thirds of deposits are from abroad.

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Ohio Rape Case: Teen Girls 'Threaten' Victim

Two girls have been arrested for allegedly threatening an Ohio rape victim in the aftermath of a trial that convicted her two attackers.

The teenagers are being held for allegedly making threats against the 16-year-old victim via Facebook and Twitter on Sunday.

It happened on the day two Steubenville High School football players were convicted of rape.

Ohio Attorney General Mike DeWine said the girls are being held in a juvenile detention facility on allegations of aggravated menacing following an investigation by state and local police.

Richmond is comforted by his lawyer after the judge read his verdict

Mr DeWine said he hoped that the arrests would end harassment of the victim.

Trent Mays, 17, and Ma'Lik Richmond, 16, broke down in court on Sunday when they were found guilty of raping the girl during and after an alcohol-fuelled party in August.

The case was made notorious when a video of boys laughing about the assault on the drunk girl went viral.

In one video, high school boys laughed about watching the rape, saying the girl "deserved to be peed on".

Brian Mays (R) hugs his son after the guity verdict is delivered

Other videos and photos showed Mays and Richmond lifting the unconscious and nearly naked victim by her hands and feet.

Mr DeWine said a grand jury will investigate whether additional charges should be brought against others for failing to speak up after the attack.

Other students, the school's headteacher, coaches and parents could potentially have broken the law, he said.

The crime shocked many in Steubenville because of the seeming callousness with which other students took out their mobile phones to record the attack and gossiped about it online.

The case initially came to light through a barrage of text messages, social media posts and online photos and videos.

It also led to allegations of a cover-up to protect the celebrated Steubenville High Big Red team.

Big Red football is central to life in Steubenville

Noting that 16 people refused to talk, many of them underage, Mr DeWine said possible offences to be investigated include failure to report a crime.

"This community desperately needs to have this behind them, but this community also desperately needs to know justice was done and that no stone was left unturned," he said.

Among those who have been interviewed are the owners of one of the houses where parties were held that night, the high school headteacher and the football team's 27 coaches, many of them volunteers.

Text messages introduced at the trial suggested the head coach was aware of the rape allegation early on.

Mr DeWine said coaches are among officials required by state law to report child abuse.

The coach and the school district have repeatedly declined to comment.

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Pope Francis Inauguration Draws Huge Crowds

Pope Francis is touring St Peter's Square in an open-top car at the start of his inauguration as leader of the world's Catholics.

The pope waved to the tens of thousands of pilgrims, who carried flags from around the world and shouted "Long live the pope!"

Heads of state, royalty and religious leaders will be among the guests at a two-hour ceremony in St Peter's Square, although the Queen and Prime Minister David Cameron will be absent.

An estimated 300,000 people listened to Pope Francis's first Angelus prayer

Large crowds are also expected in Buenos Aires in the Pope's native Argentina, where big screens have been erected outside the city's main cathedral.

The Vatican said the Mass would be a simplified version of events in 2005 that brought Pope Benedict XVI to the papacy.

Pope Francis will wear the Fisherman's Ring

The service will make several gestures towards Eastern Rite Catholics and Orthodox Christians, with the Gospel chanted in Greek not Latin and Eastern Rite prelates joining the Pope at an initial prayer at the tomb of St Peter under the Basilica's main altar.

The Vatican also released details of the coat of arms and official ring Pope Francis will receive during the Mass. Both are in keeping with his simple style.

The coat of arms is the same Jesuit-inspired one he used as Archbishop of Buenos Aires, while the ring was once offered to Pope Paul VI, who presided over the second half of the Second Vatican Council, the church meetings that modernised the church.

Argentina's President Cristina Kirchner will be among those present for the inauguration.

She met the Pope at the Vatican on Monday in what had the potential to be a tense discussion.

She and her predecessor and late husband, Nestor Kirchner, defied church teaching to push through a series of measures with popular backing in Argentina, including mandatory sex education in schools, free distribution of contraceptives in public hospitals and the right for transsexuals to change their official identities on demand.

Pope Francis meets the Argentine president

In 2010, Argentina became the first Latin-American country to legalise same-sex marriages.

But today those differences appear to have been brushed aside. President Kirchner gave the Pope a mate gourd and straw to hold the traditional Argentine tea that the new leader of the Catholic church loves. To her surprise, she got a kiss in return.

"Never in my life has a Pope kissed me!" she said afterwards.

A worker makes final preprations for the inauguration Mass in Vatican City

Britain will be represented at the ceremony by HRH The Duke of Gloucester, as well as cabinet minister Kenneth Clarke and Baroness Warsi, the Minister for Faith and Communities.

Zimbabwe's President Robert Mugabe also arrived in Rome for the inaugural Mass.

He is the subject of a travel ban by European nations in protest at his human rights record but it does not affect his trips to the Vatican through Italy.

Former Pope Benedict XVI will not attend the Mass and is likely to be watching on television at the papal retreat at Castel Gandolfo outside Rome.

He is due to greet Pope Francis in an unprecedented meeting at the retreat next Saturday.

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Five Arrested Over Tourist Gang Rape In India

Five villagers in India have confessed to the gang rape of a Swiss tourist, according to police.

The woman was on a cycling holiday with her husband in the impoverished state of Madhya Pradesh state when they were attacked.

The five men were all arrested after they admitted to the crime.

Senior police officer D K Arya said detectives were searching for two more men involved in the attack.

The couple told police that the woman had been raped by seven or eight men, but that it was dark and they could not be sure of the exact number, Mr Arya said.

The alleged rapists live in a village near the forested area where the couple had stopped to camp for the night.

They were en route to the popular tourist destination of Agra in northern India.

"They were passing by, noticed the couple putting up their tent and saw an opportunity to attack and rape the woman,"  local police official M S Dhodee said.

It is believed the man was beaten and tied to a tree while his wife was sexually assaulted.

The woman, who is thought to be around 39, was treated in hospital but released on Saturday.

Police at the scene of the attack

The Swiss embassy said it was in touch with local authorities in Madhya Pradesh and has urged a "swift investigation and for justice to be done".

The attack comes just a few days after the man accused of leading the fatal gang rape of a student on a New Delhi bus was found hanged in his prison cell.

Police say Ram Singh took his own life in the high-security Tihar jail, where he had been on suicide watch in an isolated cell.

The case made headlines around the world and raised the issue of sexual violence against women in India.

The student's internal injuries were so horrific she died two weeks later in a hospital in Singapore despite surgery to try to save her.

Four other men and a juvenile are on trial for that attack.

One woman is raped every 20 minutes in India, according to the National Crime Records Bureau.

But police estimate only four out of 10 rapes are reported, largely due to victims' fear of being shamed by their families and communities.

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Top French Lawyer Found Dead Near Island-Home

The body of one of France's most prominent lawyers has been found washed up on a beach near his home in Brittany.

Olivier Metzner's body was discovered in the Gulf of Morbihan, a natural harbour on France's western coast, on Sunday morning. A note was found in his home.

His associate, Antonin Levy, said Mr Metzner's death was a huge loss to the French bar, calling him a "great lawyer and a fighter".

Mr Levy could not confirm French media reports that the note was a suicide letter.

Police confirmed the death but declined to give any details surrounding it.

Mr Metzner,63, was famed in France for defending high-profile figures such as rogue trader Jerome Kerviel and former French Prime Minister Dominique de Villepin.

Kerviel was convicted of forgery and breach of trust for circumventing trading limits resulting in losses of 4.9bn euros for one of Europe's largest banks Societe Generale.

In 2010, Mr Villepin was cleared of using fake documents to link former Nicholas Sarkozy to a corruption probe in a bid to sabotage his campaign to become president in 2007.

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Cyprus Bailout: Savings Tax Could Be Cut

Officials in Cyprus are reportedly trying to renegotiate a eurozone bailout deal in order to soften the impact of a levy on smaller savers.

Authorities had planned a 6.7% tax on deposits under 100,000 euros (£85,454), triggering queues at cash machines as people in Cyprus rushed to withdraw their money.

But the country's government is thought to be discussing cutting the tax rate to 3% while raising the rate for deposits over 100,000 euros from 9.9% to 12.5%.

In exchange for the levy, Cyprus will receive 10bn euros (£8.54bn) in aid to help recapitalise banks.

Cypriot President Nicos Anastasiades held talks with his cabinet

Cypriot President Nicos Anastasiades, who was elected just three weeks ago, said the island had to accept a painful compromise or face bankruptcy.

In a televised address, he said the bailout "will eventually stabilise the economy and lead it to recovery".

Monday is a national holiday in Cyprus and measures need to be approved before banks open again on Tuesday.

Depositors in the eurozone's weaker economies have been unnerved by the levy, with investors fearing it will set a precedent that could reignite market turmoil.

Their uncertainty could be reflected when European markets open later, with the euro having already seen sharp falls in Asia.

British government and military personnel in Cyprus will be protected from any levy on their bank deposits.

Foreign Secretary William Hague told Sky News that Britain had been "separated" from contributing towards the bailout, adding that 3,000 Britons in the country would not suffer in the proposed raid on bank savings.

The tax on deposits in Cyprus, which accounts for only 0.2% of the eurozone's economy, is expected to raise up to 6bn euros (£5bn).

Those affected will include rich Russians with deposits in Cyprus and Europeans who have retired to the island, as well as Cypriots themselves.

Savers have queued to withdraw their money from cash machines across Cyprus

The size of foreign deposits in Cyprus - estimated at 37% of the total - was one reason the eurozone agreed to the tax on savings.

It will apply to all deposits held in banks within Cyprus, including an estimated 2bn euros (£1.75bn) of British money, according to the European Central Bank.

It will not affect deposits held in the UK branches of Cypriot banks, such as Bank of Cyprus, whose UK subsidiary is regulated by the Financial Services Authority.

However, Laiki Bank UK said on its website: "Your eligible deposits with Laiki Bank UK are protected up to a total of 100,000 euro (£87,000) by the Cyprus Deposit Protection Scheme and are not protected by the UK Financial Services Compensation Scheme.

"Any deposits you hold above the 100,000 euro limit are not covered."

Cypriot banks lost 4.5bn euros (£3.8bn) - equal to a quarter of the island's gross domestic product - when eurozone leaders decided to write off Greek debt last year.

As part of its bailout deal, corporate tax will rise from 10% to 12.5%, while state assets will be sold off to help balance the public finances.

Cuts to government worker salaries and pensions have already been approved.

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China President Calls For 'Great Renaissance'

China's new president Xi Jinping has said he will fight for a "great renaissance of the Chinese nation" in his first speech as head of state of the world's most populous country.

Mr Xi called for "arduous efforts for the continued realisation of the great renaissance of the Chinese nation and the Chinese dream" in a speech to delegates at the National People's Congress (NPC) parliament meeting in Beijing.

Calls for such a revival in the world's second-largest economy have been a motif of Mr Xi's speeches since he took the top post in China's ruling communist party in November, but he has not given a detailed account of the phrase's meaning.

He called for the armed forces to strengthen their ability to "win battles and ... firmly protect national sovereignty and security".

The speech also touched on corruption, which he has called a threat to the Communist Party's grip on power, and Mr Xi urged delegates to "oppose hedonism, and flamboyant lifestyles, and firmly fight against negative and corrupt phenomena".

Mr Xi stressed continuity with previous Chinese leaders, thanking outgoing president Hu Jintao and celebrating the past achievements of the ruling party.

The speech formally brought the almost two-week long NPC meeting to a close, and was followed by China's new premier, Li Keqiang, stepping into spotlight for a rare news conference.

Mr Li, who has taken over day-to-day running of the government and is number two in the ruling party, pledged to strengthen economic reforms.

"What the market can do, we should release more to the market, what society can do well, we should give to society. The government should be in charge of and manage well the issues that it ought to govern."

But he did not give any specific examples of planned changes.

Mr Li went on to say "practising frugality in government affairs" across the country would help "win" the trust of the people.

Public discontent over China's unequal wealth distribution is commonly directed towards officials, who are often viewed as being corrupt, and is a key concern for authorities anxious to avoid social unrest among China's 1.35 billion people.

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Pope Francis: Fond Memories In The Slums

By Amanda Walker, US Correspondent

When it comes to Villa 1114 in Buenos Aires - the local advice to tourists is simply "don't go".

"Villas" are the city's slums - ghettoized neighbourhoods ridden with crime, poverty and drug abuse.

And Villa 1114 is one of the most notorious. Its 50,000 residents have little hope of escaping to a better life.

The Catholic church plays a big role by offering some light in an otherwise bleak world. The only safe way in is to be escorted by a priest.

As we enter, children and dogs rifle through rubbish strewn across pavements. Unemployment is high here - few stand a chance of getting work.

If potential employers know your address, residents say there's no chance - living in a Villa is a stigma. For many, drugs are the only way out of a depressing existence.

When Father Gustav Carrara wanted to set up the Hogar de Cristo drug rehabilitation centre he turned to a friend for help.

The leader of the Catholic Church was known for kissing the feet of addicts

Within 10 days he was granted a spacious building on the fringes of the Villa to use as a base. It's now a lifeline for those who otherwise feel forgotten and ignored. That friend who made it happen is now Pope Francis.

A year ago when he was Cardinal Bergoglio, he came to the shelter, in an area where few dare to tread, to hold Mass.

He washed and kissed the feet of recovering drug users. It's a ritual he's performed regularly for those in need across Buenos Aires.

He also baptised their children - including Catriel Tisiano, who is now two.

Pope Francis baptised children in the slum on his last visit

His mother Celia Dias said: "He blessed him - he opened up and brightened up son's life. The fact that he came here to wash the feet of someone like me shows humility. It felt like he was one of us. There aren't many people who would do that."

From someone so high up in the church it was a rare act but those who know him well say it's typical of Bergoglio.

Softly spoken Father Gustav Carrara, who runs the project, said: "In some places this might be unusual but we became used to the Cardinal doing these things - we came to see them as natural."

The recovering addicts finish lunch and then form a circle for their group therapy session.The big problem drug here is known as "paco" - a cocaine residue that's cheap and highly addictive.

These are some of the city's most vulnerable people, but despite Bergoglio's powerful new position they still relate to him as a friend.

The Pope speaks to villa residents last year

It's not just about curbing drug addition. Upstairs is a training centre where skills, such as woodwork and sewing are learnt with a view to rebuilding lives.

Arturo Lopez is in his fifties and it's obvious how much pride he takes in passing on his carpentry skills to young people at the centre.

Throughout this place there's a pervading and genuine admiration for the man who is now Pope Francis.

Arturo said: "I've known him for many years. He's had a big impact here and has given us the opportunity to help all these youngsters."

Bergoglio's appointment as pope may not change the fact that these people still face a tough future. But having a powerful new global voice to vouch for Catriel and others like him certainly offers some hope.

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Cyprus Politicians Decide On Bailout Demands

Cyprus's parliament will decide later today whether savers must pay a levy on bank deposits under terms for an international bailout to avert bankruptcy.

The eurozone demand that savers pay up to 10% of deposits as a condition for the 10bn euro (£8.6bn) bailout has drawn criticism and anger in the eastern Mediterranean island.

Queues of people gathered at its cash machines on Saturday as they tried to withdraw their money ahead of the move.

And the country's cooperative banks had to shut their doors after seeing a rush of savers keen to protect their money.

Savers could apparently withdraw money but were not able to carry out electronic transfers.

Newly-elected Cypriot President Nicos Anastasiades said refusing the bailout would have led to the collapse of the island's two largest banks, badly burnt by their exposure to bailed out neighbour Greece.

The tax on deposits in Cyprus, which accounts for only 0.2% of the eurozone's economy, is expected to raise up to 6bn euros (£5bn) as a condition for the bailout, mainly needed to recapitalise banks.

Those affected will include rich Russians with deposits in Cyprus and Europeans who have retired to the island as well as Cypriots themselves.

The size of foreign deposits in Cyprus - estimated at 37% of the total - was one reason the eurozone agreed to the tax on savings, to take effect when banks reopen on Tuesday.

Nicos Anastasiades with Angela Merkel in Brussels

The tax will apply to all deposits held in banks within Cyprus, including an estimated 2bn euros (£1.75bn) of British money, according to the European Central Bank.

However, it will not affect deposits held in the UK branches of Cypriot banks, such as Bank of Cyprus, whose UK subsidiary is regulated by the Financial Services Authority.

The country has a large British expatriot community, among them David Symonds who lives in Limassol.

He told Sky News: "Everybody was surprised. We were assured only a few days ago that the haircut on the deposits was a red line for the government.

"When we learned that it might become a possibility we were told it would only be on deposits above 100,000 euros. Now of course we know it affects everybody."

Cyprus was badly hit by the Greek financial crisis because of its close links to the country.

Its two largest banks saw combined losses of 4.5bn euros (£3.8bn) - equal to a quarter of the island's gross domestic product.

The rescue package was agreed after 10 hours of talks in Brussels and was significantly less than the 17bn euros (£14.7bn) asked for.

As part of the deal, the government will also have to hike corporate tax to 12.5% from 10% and sell off state assets to help balance the public finances.

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