us interest rates increased to 2% us interest rates are to rise for the fourth time in five months  in a widely anticipated move.  the federal reserve has raised its key federal funds rate by a quarter percentage point to 2% in light of mounting evidence that the us economy is regaining steam. us companies created twice as many jobs as expected in october while exports hit record levels in september. analysts said a clear-cut victory for president bush in last week s election paved the way for a rise. another rise could be in store for december  some economists warned.  the fed s open market committee - which sets interest rate policy in the us - voted unanimously in favour of a quarter point rise. the fed has been gradually easing rates up since the summer  with quarter percentage point rises in june  august and september.  the central bank has been acting to restrain inflationary pressures while being careful not to obstruct economic growth. the fed did not rule out raising rates once again in december but noted that any future increases would take place at a  measured  pace. in a statement  the fed said that long-term inflation pressures remained  well contained  while the us economy appeared to be  growing at a moderate pace despite the rise in energy prices . financial analysts broadly welcomed the fed s move and shares traded largely flat. the dow jones industrial average closed down 0.89 points  or 0.01%  at 10 385.48.  recent evidence has pointed to an upturn in the us economy. us firms created 337 000 jobs last month  twice the amount expected  while exports reached record levels in september. the economy grew 3.7% in the third quarter  slower than forecast  but an improvement on the 3.3% growth seen in the second quarter. analysts claimed the fed s assessment of future economic growth was a positive one but stressed that the jury was still out on the prospect of a further rise in december.   let s wait until we see how growth and employment bear up under the fourth quarter s energy price drag before concluding that the fed has more work to do in 2005   said avery shenfeld  senior economist at cibc world markets.   i think the federal reserve does not want to rock the boat and is using a gradual approach in raising the interest rate   said sung won sohn  chief us economist for wells fargo bank.  the economy is doing a bit better right now but there are still some concerns about geopolitics  employment and the price of oil   he added. the further rise in us rates is unlikely to have a direct bearing on uk monetary policy. the bank of england (boe) has kept interest rates on hold at 4.75% for the past three months  leading some commentators to argue that rates may have peaked. in a report published on wednesday  the bank said that with rates at their current level  inflation would rise to its 2% target within two years. however  boe governor mervyn king warned only last month that the era of consistently low inflation and low unemployment may be coming to an end.


french consumer spending rising french consumers increased their spending by 1.5% in january  a figure which bodes well for the country s economic growth  figures revealed.  the national statistic institute (insee) added that consumer spending in january rose 3.8% on a year-on-year basis. rising sales of household equipment were behind the increase. the insee also said that french consumer prices fell 0.6% in january  but were up 1.6% on an annual basis.  despite the general increase in spending in january  french households bought fewer cars in january. according to the insee  car sales fell 2.8% in january  following a fall of 0.6% in december. but on a year-on-year basis  the sector still saw a sales increase of 6.5%. consumer spending fuelled france s economic growth in the last quarter of 2004 and analysts expect that it will continue to support the economy.  it s a growth that will remain fragile and vulnerable to risks like a strong rise in long-term interest rates  tension in the oil price   emmanuel ferry  from exane bnp paribas told reuters news agency.  meanwhile in italy  consumer confidence rose to its highest level since october 2004. economic research group isae has said that italian consumer confidence rose to 104.4 from 103.3  despite a slight deterioration in short-term sentiment.


indian oil firm eyes yukos assets india s biggest oil exploration firm  oil & natural gas corp (ongc)  says it is in talks to buy the former assets of troubled russian crude producer yukos.   we are in touch with the concerned russian entities about the yukos assets and other opportunities in russia   said ongc chairman subir raha. local press had reported that ongc was looking to buy 15% of yukos  former key oil production unit for $2bn (£1bn). yukos is being broken up by russian authorities to pay a massive tax bill.  it was forced to sell its key production unit yuganskneftegas (yugansk) last month after being hit with a bill of $27bn in unpaid taxes and fines.  state-owned rosneft now owns yugansk and russia has said it will turn the oil producer into a stand-alone firm. indian oil minister mani shankar aiyar discussed ongc s plans during a trip to moscow last year  and the topic came up again during russian president vladimir putin s recent visit to new delhi.  it would make great sense for us to build on that   said mr aiyar. india s oil production has stagnated over recent years  and it is having to look abroad to secure future supplies. india imports about 70% of its total oil consumption. at the same time  india s economy is booming and the country s thirst for oil is so strong that it has helped pushed up the price of crude worldwide.  india produces about 793 000 barrels of oil per day (bpd)  little changed since the start of the 1990s  according to oil industry analysts douglas-westwood. consumption  meanwhile  has jumped to 2.4 million bpd  compared with 474 000 bpd in 1973.   for countries to develop  they have to have access to energy   said john westwood  managing director of oil industry analysts douglas-westwood. india is a  dramatically growing economy that must have access to oil . by buying into yugansk  ongc would be able to reduce its dependence on gulf states for oil imports  mr westwood explained  especially as the chances of finding and exploiting resources within india are slim.  we forecast that indian production will go into significant decline   mr westwood said.  by 2020  production may only be at half of today s levels.  ongc  which is majority-owned by the indian state  already has bought petroleum assets in countries including vietnam  sudan and russia. the company is a partner with rosneft in the sakhalin-1 oil field off russia s siberian coast.  ongc is  however  not the only firm interested in yugansk.  chinese crude company china national petroleum has also been mentioned as a possible investor  while on thursday  italy refused to rule out an interest. ongc s interest is the latest twist in a saga that has seen one of the world s biggest oil producers brought to its knees. the dispute is partly driven by president putin s clampdown on the political ambitions of ex-yukos boss mikhail khodorkovsky  who is currently in jail on charges of fraud and tax evasion. yukos has been battling the russian authorities for more than a year and has filed for bankruptcy protection in the us. analysts have questioned how long it can continue to survive without yugansk. on thursday  a us court said it will hear arguments for yukos  bankruptcy claim to be thrown out on 16 february. should that happen  yukos will have little chance of clawing back its assets  analysts said.


ferguson rues failure to cut gap boss sir alex ferguson was left ruing manchester united s failure to close the gap on chelsea  everton and arsenal after his side s 1-1 draw with fulham.  premiership leaders chelsea and the gunners endured a 2-2 stalemate on sunday  giving united the chance to make up some ground in the league. but ferguson said:  i think what makes it so bad is that both our rivals dropped points at the weekend.  it was a great opportunity - and we haven t delivered.  united went ahead through alan smith in the 33rd minute before bouba diop s superb 25-yard strike cancelled out the visitors  lead in the 87th minute. ferguson described the result as an  absolute giveaway  after united had earlier missed a host of opportunities to finish off the encounter. he said:  it was a good performance - some of the football was fantastic - but we just didn t finish them off.  in fairness  it s a fantastic strike from the fulham player.  the result leaves ferguson s side fourth in the league on 31 points - four points behind arsenal and a further five back from chelsea.


radcliffe proves doubters wrong this won t go down as one of the greatest marathons of paula s career. but as a test of character  it was the toughest race she s ever taken part in.  a win in the new york marathon doesn t make up for the disappointment of athens in any shape or form  but it will offer hope and reassurance for next year. if paula s last experience of the year had been athens  it would have been very difficult to look forward with any optimism. she can now draw a line under this year and make plans about her future. even if she d lost this race  there would have been a lot of positives to take out of it. she knows she can dig deep if she needs to. it was a strong field  with a number of the girls going into the race with expectations of winning. and although two hours 23 minutes wasn t one of paula s best times  it wasn t far off the record on a difficult course.  i was speaking to paula in the lead-up to this race and she said that in many ways she was facing a no-win situation. she thought that if she won  people would say  why couldn t she do that in athens   and if she lost  people would say her career was over. and a lot of people were wondering what would happen if paula was forced to drop out of this race  as she did in the marathon and 10 000m in athens. but that was never on the cards. she might have been beaten  but she would have kept running. the reasons she was forced to pull out in athens - the niggling injuries  her lack of energy and the oppressive conditions - weren t at play here. the only question was what position she could finish in. most important of all  despite all the hype in the media ahead of this race  there were never doubts in paula s mind. if she wasn t confident  she wouldn t have run. after all  if you re the best in the world at an event  you ll always have expectations of winning.  now paula will take part in the run london 10km race in london at the end of the year  have a well-earned rest over christmas and go into next year with a lot of optimism.


borussia dortmund near bust german football club and former european champion borussia dortmund has warned it will go bankrupt if rescue talks with creditors fail.  the company s shares tumbled after it said it has  entered a life-threatening profitability and financial situation . borussia dortmund has posted record losses and missed rent payments on its westfallen stadium. chief executive gerd niebaum stepped down last week and creditors are now pushing for greater control. shares in borussia dortmund  germany s only stock-market listed football club  dropped by almost 23% to 2.05 euros during early afternoon trading.  fund manager florian hamm - borussia dortmund s largest investor - said he would only invest more money in the company if he got a greater say in how it is run.  i demand better transparency   he is quoted as saying by germany s manger magazin. the club has also faced calls to appoint executives from outside the club.  borussia dortmund posted a record loss of 68m euros ($89m; £47m) in the 12 months through june. it made a loss of 27.2m euros in the first half of the current fiscal year and said that total debts will increase to 134.7m euros by the middle of 2006 unless a restructuring plan is pushed through.  this is the bill for their mismanagement over the past years   said hvb analyst peter-thilo halser. the club appointed an auditor  who has recommended a number of steps  including deferring the rent due on the stadium and suspending debt repayments until at least the 2006-2007 fiscal year. stephen schechter  a uk investment banker who has held talks with borussia dortmund over a possible bond sale  said the club needs a capital injection of 35m euros.  they need strong people on the board who do not have a history with the club   he said.


friends fear  with lost mobiles people are becoming so dependent on their mobile phones that one in three are concerned that losing their phone would mean they lose their friends.  more than 50% of mobile owners reported they had had their phone stolen or lost in the last three years. more than half (54%) of those asked in a poll for mobile firm intervoice said that they do not have another address book. a fifth rely entirely on mobiles. about 80% of uk adults own at least one mobile  according to official figures. it is estimated that 53% of over 65s own a mobile  according to intervoice  but the figures are higher for those aged between 15 and 34.  most 15 to 24-year-olds (94%)  and 25 to 34-year-olds (92%)  own at least one. nineteen percent of mobile owners were more concerned about how long it would take to find their contacts  information again if the phone was lost  stolen or replaced.  the survey showed that extent to which people have become reliant on their phones as address book. many mobile owners do not bother to make back-ups of their contact details  and with people changing their phones once a year on average  it becomes a problem. they also are becoming less likely to remember numbers by heart  relying on the mobile phone book instead.  we re a nation of lazy so-and-sos   david noone from intervoice said.  we put the numbers in our phones so we can call a friend at the touch of just one or two buttons and we certainly can t be bothered to write them down in an old fashioned address book.  the mobile phone plays such a key role in modern relationships; take the phone away and the way we manage these relationships falls apart.  one in three women  the survey said  thought if they lost their phones  it would mean they would lose touch with people altogether. most (62%) said they had no idea what their partner s number was. mr noone said it should be up to mobile operators to provide back-up services on the network itself  instead of relying on mobile owners to find ways themselves.  generally  information from sim cards can be backed up on physical memory cards  or can be copied onto computers via cables if the phone is a smartphone model with the right software. sim back-up devices can be bought from phone shops for just a few pounds.  but some operators offer customers free web-based back-up services too. orange told the bbc news website that those with orange smartphones could use the my phone syncing service which means back-ups of address books and other data are created online. for non-smartphone users  a memory mate card could be used to back up data on the phone. o2 also offers a free  web-based syncing service which works over gprs and gsm. neither vodafone or t-mobile currently offer a free network service for back-ups  but encourage people to use sim back-up devices. it is thought that about 10 000 phones are lost or stolen every month and 50% of total street crime involves a mobile. mobile phone sales are expected to continue growing over the next year. globally  more than 167 million mobile phones were sold in the third quarter of 2004  26% more than the previous year  according to analysts. it is predicted that there will be two billion handsets in use worldwide by the end of 2005.


what high-definition will do to dvds first it was the humble home video  then it was the dvd  and now hollywood is preparing for the next revolution in home entertainment - high-definition.  high-definition gives incredible  3d-like pictures and surround sound. the dvd disks and the gear to play them will not be out for another year or so  and there at are still a number of issues to be sorted out. but when high-definition films do come out on the new format dvds  it will profoundly change home entertainment. for rick dean  director of business development for digital content company thx  a high-definition future is an exciting prospect. he has worked on the star wars dvd trilogy  finding nemo  the incredibles and indiana jones.  there was a time not so long ago when the film world and the video world were two completely separate worlds   he told the bbc news website.   the technology we are dealing with now means they are very much conjoined.  the film that we see in theatres is coming from the same digital file that we take the home video master   he says. but currently  putting a master feature film onto dvd requires severe compression because current dvd technology cannot hold as much as high-definition films demand.  as much as you compress the picture data rate wise  you also take qualities away from the picture that we fight so hard to keep in the master   he explains.  i would love to be able to show people what projects that we worked on really look like in the high-def world and i find it very exciting.   high-definition dvds can hold up to six times more data than the dvds we are used to. it will take time though to persuade people who spent money on dvd players to buy the different players and displays required to watch high-definition dvds in 18 months  time. mr dean is confident though:  i think if they see real hd [high-definition]  not some heavily compressed version of it  there is such a remarkable difference.  i have heard comments from people who say the images pop off the screen.   high-definition will mean some changes for those working behind the scenes too. on the whole  producing films for high-definition dvds will be easier in some ways because less compression is needed. equally  it may mean hollywood studios ask for more to be put onto the average dvd.  when we master movies right now  our data rates are running at about 1.2 gigabits per second   says mr dean.  our dvds that we put out today have to be squashed down to about five or six megabits per second.  that s a huge amount of compression that has to be applied - about 98%. so if you have anything that allows more space  you don t have to compress so hard.  studios could fit a lot more marketing material  games  and features  onto high-capacity dvds. currently  an entire dvd project can take up to three months  says mr dean. although the step of down-converting will be bypassed  this will realistically only save a day s work  says mr dean. one of the most time consuming elements is building dvd navigation and menu systems. on the fairly complex star wars disks  making sure the menu buttons worked took 45 human hours alone. if studios want to cash in on the extra space  it could mean extra human hours  for which someone has to pay.  if the decision on the studio side is that they are going to put a lot more on these disks  it could be more expensive because of all the extra navigation that is required.  and if studios do focus on delivering more  added value content   thinks mr dean  ultimately it could mean that they will want more money for it. those costs could filter down to the price ticket on a high-definition dvd. but if the consumer is not willing to pay a premium price  studios will listen  thinks mr dean.  high-definition throws up other challenge to film makers and dvd production alike. more clarity on screen means film makers have to make doubly sure that attention to detail is meticulous.  when we did the first hd version of star wars episode i  everybody was very sun-tanned  but that was make-up.  in the hd version of episode i  all these make-up lines showed up   explains mr dean. the restoration of the older star wars episodes revealed some interesting items too.   there are scans of a corridor [on the death star] and fairly plainly in one of those shots  there is a file cabinet stuck behind one of the doorways.  you never used to be able to see it because things are just blurred enough during the pan that you just didn t see it.  what high-definition revolution ultimately means is that the line between home entertainment and cinema worlds will blur. with home theatre systems turning living rooms into cinemas  this line blurs even further. it could also mean that how we get films  and in what format  will widen.  in the future we are going to look towards file delivery over ip [internet protocol - broadband]  giving a dvd-like experience from the set-top box to the hard drive   says mr dean. but that is some time off for most  and for now  people still like to show off something physical in their bookshelves.


collins banned in landmark case sprinter michelle collins has received an eight-year ban for doping offences after a hearing at the north american court of arbitration for sport (cas).  america s former world indoor 200m champion is the first athlete to be suspended without a positive drugs test or an admission of drugs use. collins  ban is a result of her connection to the federal inquiry into the balco doping scandal. the 33-year-old was found guilty of using performance-enhancing drugs. the us anti-doping agency (usada) decided to press charges against collins in the summer. the sprinter has consistently protested her innocence but the cas has upheld usada s findings.  the usada has proved  beyond a reasonable doubt  that collins took epo  the testosterone/epitestosterone cream and thg   said a cas statement.  collins used these substances to enhance her performance and elude the drug testing that was available at the time.  so far a total of 13 athletes have been sanctioned for violations involving drugs associated with the balco doping scandal. world record holder tim montgomery is also facing a lifetime ban after being charged by the usada. his hearing before the csa has been rescheduled for june next year.  drug enforcement chiefs in the us have vowed to crack down on cheats. usada chief executive officer terry madden said the action taken against collins was further proof of that.  the cas panel s decision confirms that those who violate the rules will be sanctioned as part of usada s ongoing efforts to protect the rights of the overwhelming majority of us athletes that compete drug-free   said madden. the usada has built its cases on verbal evidence given to the federal investigation into balco rather than test results. the san francisco-based balco laboratory faces steroid distribution and money laundering charges. the trial is expected to open next march.


santini resigns as spurs manager tottenham manager jacques santini has resigned for  personal reasons .  the former france manager moved to white hart lane this summer but now wants to return to france. santini said:  my time at tottenham has been memorable and it is with deep regret that i take my leave. i wish the club and the supporters all the best.  private issues in my personal life have arisen which caused my decision. i very much hope that the wonderful fans will respect my decision.  he added:  i should like to thank (sporting director) frank arnesen and (chairman) daniel levy for their understanding.  assistant coach martin jol has been put in temporary charge and will take care of team affairs for saturday s premiership match against charlton.  arnesen said the club were sad to see santini go:  we are obviously disappointed that jacques is leaving us. we fully respect his decision.  i can assure you that the club will act swiftly to minimise the impact of jacques  departure.  our priority is to ensure that this season s performance remains unaffected by this move.  i shall make a further statement on monday  clarifying our position. we wish jacques well.


chelsea sack mutu chelsea have sacked adrian mutu after he failed a drugs test.  the 25-year-old tested positive for a banned substance - which he later denied was cocaine - in october. chelsea have decided to write off a possible transfer fee for mutu  a £15.8m signing from parma last season  who may face a two-year suspension. a statement from chelsea explaining the decision read: we want to make clear that chelsea has a zero tolerance policy towards drugs.  mutu scored six goals in his first five games after arriving at stamford bridge but his form went into decline and he was frozen out by coach jose mourinho. chelsea s statement added:  this applies to both performance-enhancing drugs or so-called  recreational  drugs. they have no place at our club or in sport.  in coming to a decision on this case  chelsea believed the club s social responsibility to its fans  players  employees and other stakeholders in football regarding drugs was more important than the major financial considerations to the company.  any player who takes drugs breaches his contract with the club as well as football association rules.  the club totally supports the fa in strong action on all drugs cases.  fifa s disciplinary code stipulates that a first doping offence should be followed by a six-month ban. and the sport s world governing body has re-iterated their stance over mutu s failed drugs test  maintaining it is a matter for the domestic sporting authorities.  fifa is not in a position to make any comment on the matter until the english fa have informed us of their disciplinary decision and the relevant information associated with it   said a fifa spokesman. chelsea s move won backing from drug-testing expert michelle verroken. verroken  a former director of drug-free sport for uk sport  insists the blues were right to sack mutu and have enhanced their reputation by doing so.  chelsea are saying quite clearly to the rest of their players and their fans that this is a situation they are not prepared to tolerate.  it was a very difficult decision for them and an expensive decision for them but the terms of his contract were breached and it was the only decision they could make.  it is a very clear stance by chelsea and it has given a strong boost to the reputation of the club.  it emerged that mutu had failed a drugs test on october 18 and  although it was initially reported that the banned substance in question was cocaine. the romanian international later suggested it was a substance designed to enhance sexual performance. the football association has yet to act on mutu s failed drugs test and refuses to discuss his case.


swap offer for pirated windows xp computer giant microsoft has launched a pilot scheme to replace counterfeit versions of windows xp with legal ones.  the first-time initiative is restricted to the uk and to users with pre-installed copies of the operating system in pcs bought before november. until december microsoft said software can be sent to it for analysis if there are doubts about its legitimacy. the company aims to detect illegal traders and turn users of fake versions of windows into legitimate ones.  the windows xp counterfeit project will mean that software that is found to be counterfeit will be replaced for free  subject to certain conditions  until the end of the year. it is the first time microsoft has launched a counterfeit product replacement scheme in the world  the company told the bbc news website. in june  the software giant said that the major security update to windows xp  service pack 2  would not work with the most widely pirated versions of its operating system. the upgrade closed security loopholes in xp and added features that made it easier to keep machines safe from viruses and other types of malicious computer code.  the us company invited anyone who had suspicions about their version of windows xp to submit it for testing as soon as possible. the procedure consists of a series of computer checks  collating documents  and filling out a witness statement.  this is a great opportunity for users to confirm the authenticity of windows xp software whilst helping gather vital information about illegal traders   said alex hilton  licence compliance manager at microsoft. the scheme has also been welcomed by the technology and commerce industry.  it is important that users ensure that they are legally licensed to avoid the risks of purchasing and using counterfeit products   said david frost  director general of the british chambers of commerce. the plan would enable microsoft to gather intelligence about illegal traders in a prompt way  which would allow it to take action against software pirates. microsoft said it would evaluate the results of the uk programme before setting up similar schemes in other countries.


dollar hits new low versus euro the us dollar has continued its record-breaking slide and has tumbled to a new low against the euro.  investors are betting that the european central bank (ecb) will not do anything to weaken the euro  while the us is thought to favour a declining dollar. the us is struggling with a ballooning trade deficit and analysts said one of the easiest ways to fund it was by allowing a depreciation of the dollar. they have predicted that the dollar is likely to fall even further.  the us currency was trading at $1.364 per euro at 1800 gmt on monday. this compares with $1.354 to the euro in late trading in new york on friday  which was then a record low.  the dollar has weakened sharply since september when it traded about $1.20 against the euro. it has lost 7% this year  while against the japanese yen it is down 3.2%. traders said that thin trading levels had amplified monday s move.  it s not going to take much to push [the dollar] one way or the other   said grant wilson of mellon bank. liquidity - a measure of the number of parties willing to trade in the market - was about half that of a normal working day  traders said.


benitez joy as reds take control liverpool boss rafael benitez was satisfied after his team s 3-1 win over bayer leverkusen despite conceding a goal in the last minute.   before the game if you had said the score will be 3-1 i would have happily accepted that   said benitez.  but you must realise that you have to concentrate right to the very last seconds of a game at this level.  i have confidence that we can complete the task in germany. i am always confident and we must be positive.   benitez defended goalkeeper jerzy dudek  whose failure to hold on to dimitar berbatov s weak drive allowed franca to score with the last kick of the game - and give the german team a lifeline for the second leg.  for me it was not jerzy dudek s fault   added benitez.  he had played a very good game - and had we scored our other chances  nobody would be talking about about their goal. it would not have mattered.  if we had scored our other chances it would not have been worth remembering that last goal.  in my opinion jerzy played well  made two very fine saves - and i am happy with him.  if we lose 2-0 we are out but i think we can score in germany - certainly one  and that will make all the difference.  and the liverpool boss is looking forward to having skipper steven gerrard  who was suspended for the anfield leg  back for the return in germany.   steven gerrard is a key player for us   said benitez.  when he is on the pitch he makes everyone else play better - and the opposition pay special attention to him - which gives space for others.  steven is one of the best players in the world  but i need a team that is not about just one player. there must be 11 players on the pitch all doing well.


glazer makes new man utd approach malcolm glazer has made a fresh approach to buy manchester united  which could lead to a bid valuing the premiership club at £800m.  the us tycoon  who has been wooing the club for the last 12 months  has approached the united board with  detailed proposals   it has confirmed. mr glazer  who owns the tampa bay buccaneers team  hopes this will lead to a formal bid being accepted. his new offer is expected to contain substantially less debt. mr glazer has already had one takeover attempt turned down by the red devils and responded by using his 28.1% shareholding to vote off three board members last november.  man united had turned down the bid because it was based on a high level of borrowing. but newspapers have speculated recently that the tycoon had gained the support of leading banks to come up with a stronger and less debt-laden bid. last week  however  mr glazer issued a statement to the stock exchange distancing himself from a new bid.  meanwhile  united s chief executive david gill said in december that talks would not resume unless glazer came up with  definitive proposals . now the board has confirmed that the us bidder is back  with a statement issued on sunday reading:  the board can confirm it has now received a detailed proposal subject to various preconditions which may form the basis of an offer.  a further announcement will be made in due course.   to succeed malcolm glazer will still need the approval of major shareholders john magnier and jp mcmanus  who own 28.9% of the club. but the irish duo have cut off talks with glazer over the proposed sale of their stake and have so far made no comment on his latest approach. united fans have reacted with anger at the announcement. they have vehemently opposed any proposed takeover by glazer since he first showed interest in the club in september 2003 and after sunday s announcement they vowed to fight on.  we will fight tooth and nail to stop him whatever his offer says. we do not want him or anybody else taking over united   said mark longden of the independent manchester united supporters  association.  the campaign against this proposed takeover will continue as it has done since glazer first showed interest in the club.


smith aims to bring back respect scotland manager walter smith says he wants to restore the national team s respectability in world football.  smith has joined his first squad for a three-day get-together near manchester in preference to playing a friendly. while qualification for the 2006 world cup appears to be beyond scotland  smith is anxious that the remainder of the campaign should be positive.  i think we have got to try to get a bit of respectability back in whatever way we can   he said.  we will have to approach each game differently. obviously we will have to approach the italian game away from home in a different manner to moldova at home.  we have to meet the challenge of each match.  smith  meeting a number of his squad for the first time  brought them together on monday to outline his ideas for improving the nation s fortunes.  he said:  i pointed out how i see the international team going forward and that was the main topic.  this is a relaxed gathering and i don t think there is a lot of doom and gloom about the squad that a lot of people think exists.  a 25-man squad will spend the next three days based at the mottram hall hotel in cheshire and will train at manchester united s nearby carrington complex. smith will be absent for the final sessions  however  as he is due to fly out to sardinia on wednesday to watch italy s friendly with russia.


middlesbrough 2-2 charlton a late header by teenager danny graham earned middlesbrough a battling draw with charlton at the riverside.  matt holland had put the visitors ahead in the 14th minute after his shot took a deflection off franck queudrue. but middlesbrough peppered the charlton goal after the break and chris riggott stroked home the equaliser. shaun bartlett s strike put charlton back in front but that lead lasted just six minutes before graham rushed onto queudrue s pass to head home. the match burst to life from the whistle and charlton defender hermann hreidarsson had sight of an open goal after just six minutes. hreidarsson received danny murphy s free-kick from the right but he crashed his free header wide of the far post. the iceland international looked such a danger the boro bench could be heard issuing frantic instructions to mark him.  charlton s early pressure paid off when bartlett received a long ball from talal el karkouri in the box and laid it off to holland who buried his right-footed strike. szilard nemeth  recalled in place of joseph-desire job  was twice denied his chance to get middlesbrough back on level terms by dean kiely. the striker played a great one-two with jimmy floyd hasselbaink only to see kiely get down well to smother his shot before directing a header straight into the keeper s arms. boro had plenty of time on the ball but the addicks comfortably mopped up the pressure - with kiely tipping a hasselbaink header over the bar - to take their lead into half-time.  it was all one-way traffic after the break at the riverside as middlesbrough poured forward and kiely even saved hreidarsson s blushes when he palmed the ball away to prevent a charlton own goal. but the addicks keeper could do nothing about riggott s equaliser in the 74th minute. the boro defender looked suspiciously offside as he got on the end of gareth southgate s misdirected effort  but despite the charlton protests his goal stood. the addicks did not let their heads drop and bartlett left the boro defence standing  picking up hreidarsson s cross to easily sink his right-footed strike. but substitute graham was on hand to grab a share of the points for the home side. the 19-year-old striker nodding home the equaliser - and his first premiership goal - with five minutes left on the clock.   i felt we did enough to win the game even though the first half was lacklustre.  we dominated after the break  the players showed a fantastic response and we should have gone on to win.  but for (charlton goalkeeper) dean kiely  who made three tremendous saves  we could have scored five or six.    to take the lead and then to get penned back  it feels a little bit like a defeat   admitted kiely.  we were winning but middlesbrough kept knocking on the door. but we stood up and credit to us we didn t capitulate.  we ll kick on now. our short-term ambition is to progress from the seventh place finish from last year.   nash  reiziger (graham 82)  riggott  southgate  queudrue  parlour (job 86)  doriva  nemeth (parnaby 87)  zenden  downing  hasselbaink.  subs not used: cooper  knight.  riggott 74  graham 86.  kiely  hreidarsson  perry  el karkouri  young  konchesky  murphy (euell 78)  holland  kishishev  thomas (johansson 72)  bartlett.  subs not used: fish  jeffers  andersen.  konchesky  hreidarsson  perry.  holland 14  bartlett 80.  29 603  m riley (w yorkshire).


klinsmann issues lehmann warning germany coach jurgen klinsmann has warned goalkeeper jens lehmann he may have to quit arsenal to keep his world cup dreams alive.  lehmann is understudy to oliver kahn in the german squad  but has lost his place to manuel alumnia at highbury. klinsmann said:  it will be difficult for any of our players if he is not a first-choice at his club.  if jens is not arsenal s number one keeper  that is a problem for me. he must be playing regularly.  lehmann is desperate to keep his place in the germany squad when the country hosts the world cup in 2006. klinsmann added:  if he is not playing regularly he cannot be germany s number one keeper  or even number two keeper.  the situation for jens is that he is currently the number two keeper at arsenal. this could be critical if it remains the same during next season.


fa decides not to punish mourinho the football association will take no action against chelsea boss jose mourinho following his sending-off in sunday s carling cup final.  mourinho  who was sent from the touchline for appearing to taunt liverpool fans  has been  reminded of his responsibilities to the game . but the fa confirmed:  there will be no further action taken in this matter.  mourinho claimed his  silence  gesture was aimed at the media  although they were on the other side of the ground. the former porto coach was forced to watch the climax of his side s 3-2 victory over liverpool on television after being ushered away from the touchline by fourth official phil crossley. his gesture came after chelsea s equaliser on 79 minutes courtesy of a steven gerrard own goal. mourinho still faces an fa investigation into his allegation that manchester united s players  cheated  during january s carling cup semi-final at stamford bridge.  and uefa could also launch disciplinary action following mourinho s failure to attend a compulsory post-match press conference after chelsea s champions league defeat at barcelona last week. in addition  some time this month  chelsea must also answer a charge of failing to control their players during the premiership win at blackburn in february. and a charge of failing to control their supporters following a carling cup meeting with west ham earlier this season is still to be heard. the premier league is also continuing investigations into allegations chelsea officials tapped up arsenal defender ashley cole in january.


irish markets reach all-time high irish shares have risen to a record high  with investors persuaded to buy into the market by low inflation and strong growth forecasts.  the iseq index of leading shares closed up 23 points to 6661.89 on thursday  fuelled by strong growth in banking and financial stocks. a fall in the rate of inflation to 2.3% in january gave a fresh boost to shares which have advanced 4% this month. the economy is set for strong growth in 2005 while interest rates remain low.  several of ireland s biggest companies saw their market value hit recent highs on thursday. allied irish banks  ireland s biggest company by capitalisation  touched a five year peak while bank of ireland shares rose to their highest level since august 2002.  telecoms firm eircom  which recently revealed that it would re-enter the irish mobile phone market  hit a yearly high. analysts said that economic conditions were benign and irish shares were still trading at a discount to other european markets.  ireland ticks all the boxes as far as international investors are concerned   roy asher  chief investment officer of hibernian investment managers  told reuters.  buoyant economic conditions are set to continue in ireland over the next few years and irish equities continue to offer quality growth at a reasonable valuation.   bernard mcalinden  head of equity research at ncb stockbrokers  said equities represented good value compared to other investments.  it is still looking good   he told reuters.  we have seen good economic data on ireland which benefits the financial stocks.  ireland s economic  miracle  is enjoying a second wind  with 5% growth forecast for 2005 and 2006. the economy cooled markedly between 2001 and 2003 after enjoying spectacular growth of more than 10% in 2000. however  it has bounced back strongly with growth of just under 5% expected in 2004.


sony psp console hits us in march us gamers will be able to buy sony s playstation portable from 24 march  but there is no news of a europe debut.  the handheld console will go on sale for $250 (£132) and the first million sold will come with spider-man 2 on umd  the disc format for the machine. sony has billed the machine as the walkman of the 21st century and has sold more than 800 000 units in japan. the console (12cm by 7.4cm) will play games  movies and music and also offers support for wireless gaming. sony is entering a market which has been dominated by nintendo for many years.  it launched its ds handheld in japan and the us last year and has sold 2.8 million units. sony has said it wanted to launch the psp in europe at roughly the same time as the us  but gamers will now fear that the launch has been put back. nintendo has said it will release the ds in europe from 11 march.  it has gaming at its core  but it s not a gaming device. it s an entertainment device   said kaz hirai  president of sony computer entertainment america.


cole refuses to blame van persie ashley cole has refused to blame robin van persie for leaving arsenal with no fully-fit strikers for the fa cup fifth round replay at sheffield united.  van persie is suspended alongside dennis bergkamp and jose antonio reyes after being sent off at southampton when arsenal had a numerical advantage. thierry henry is ruled out with an achilles tendon injury but cole said:  no-one is putting the blame on robin.  it s just something that happens on the spur of the moment.  cole added:  i ve done it before and i hope they didn t blame me for anything.  of course he ll learn. i ve been sent off a couple of times now and it s just one of those things when you go a bit crazy for one or two seconds. freddie ljungberg is likely to be used in an emergency striking role and will be partnered by either arturo lupoli  quincy owusu-abeyie or jeremie aliadiere. gunners boss arsene wenger said:  freddie is an option but we need a second striker.  i have to decide whether it will be aliadiere  quincy or lupoli who will start with him up front. those three will be involved.  arsenal are also without winger robert pires  who sustained an ankle injury at st mary s. wenger added:  it doesn t look like anything is fractured  but it is a good ankle sprain.  it does not look like pires will be ready for two to three weeks.


economy  strong  in election year uk businesses are set to prosper during the next few months - but this could trigger more interest rate rises  according to a report.  optimism is at its highest since 1997 and business will reap the benefits of a continuing rise in public spending  say researchers at bdo stoy hayward. the bank of england is expected to keep rates on hold this week - but they could go up later in the year. rates are likely to rise after the anticipated general election in may. the bdo optimism index - a leading indicator of gdp growth two quarters ahead edged up in january to 102.5  from 102.2 in october. the rise is due  in part  to an increase in public spending and increased merger and acquisition activity.  the only thing blighting business optimism this year will be uncertainties associated with the general election  bdo said. its bdo s output index - which predicts gdp movements a quarter in advance - remained at 100.8 for january  implying gdp growth at 2.9% in the second quarter of 2005. however  the output index is being held back by recent interest rate rises  sterling s strength against the dollar and high oil prices  the group noted. its inflation index  which has risen continuously over the last 8 months  climbed to 110.0 in january from 108.0 in october last year.  the uk is looking strong going into the general election  but businesses need to prepare themselves for a jolt ahead as the bank of england reacts to growth and inflationary pressures   said peter hemington  partner at bdo stoy hayward.  growth will probably slow by the end of 2005 and it is likely that we will see higher interest rates or a sharp drop in demand for products and services.


yukos heading back to us courts russian oil and gas company yukos is due in a us court on thursday as it continues to fight for its survival.  the firm is in the process of being broken up by russian authorities in order to pay a $27bn (£14bn) tax bill. yukos filed for bankruptcy in the us  hoping to use international business law to halt the forced sale of its key oil production unit  yuganskneftegas. the unit was however sold for $9.4bn to state oil firm rosneft but only after the state auction had been disrupted.  yukos lawyers now say the auction violated us bankruptcy law. the company and its main shareholders have vowed to go after any company that buys its assets  using all and every legal means. the company wants damages of $20bn  claiming yuganskneftegas was sold at less than market value. judge letitia clark will hear different motions  including one from deutsche bank to throw out the chapter 11 bankruptcy filing. the german lender is one of six banks that were barred from providing financing to gazprom  the russian state-owned company that was expected to win the auction for yuganskneftegas. deutsche bank  which is also an advisor to gazprom  has called on the us court to overturn its decision to provide yukos with bankruptcy protection.  lifting the injunction would remove the uncertainty that surrounds the court case and clarify deutsche bank s business position  analysts said.  analysts are not optimistic about yukos  chances in court. russian president vladimir putin and the country s legal authorities have repeatedly said that the us has no jurisdiction over yukos and its legal wranglings. on top of that  the firm only has limited assets in the us. yukos has won small victories  however  and is bullish about its chances in court.  do we have an ability to influence what happens  we think we do   said mike lake  a yukos spokesman.  the litigation risks are real   said credit suisse first boston analyst vadim mitroshin the dispute with the russian authorities is partly driven by president putin s clampdown on the political ambitions of ex-yukos boss mikhail khodorkovsky. mr khodorkovsky is in jail on charges of fraud and tax evasion.


iranian mps threaten mobile deal turkey s biggest private mobile firm could bail out of a $3bn ($1.6bn) deal to build a network in iran after mps there slashed its stake in the project.  conservatives in parliament say turkcell s stake in irancell  the new network  should be cut from 70% to 49%. they have already given themselves a veto over all foreign investment deals  following allegations about turkish firms  involvement in israel. turkcell now says it may give up on the deal altogether.  iran currently has only one heavily congested mobile network  with long waiting lists for new subscribers. turkcell signed a contract for the new network in september. the new operator planned to offer subscriptions for about $180  well below the existing firm s $500 price tag. but a parliamentary commission has now ruled that turkcell s 70% controlling stake is too high. they say that turkcell is a security risk because of alleged business ties with israel. parliament as a whole - dominated by religious conservatives - will vote on the ruling on tuesday.  turkcell said the ruling would  make more difficult... turkcell s financial consolidation of irancell  because its stake would be reduced to less than 50%.  if management control and financial consolidation of irancell cannot be achieved... the realisation of the project will become risky   it warned in a statement. the firm has refused to comment on whether it has business dealings in israel  although like almost all gsm operators worldwide it has an interconnection deal with israeli networks so that its customers can use their phones there. the two countries strengthened ties in both defence and economic issues in 2004. israeli industry minister ehud olmert was reported in june to have attended a meeting between ruhi dogusoy  turkcell s chief operating officer  and executives from israeli telecoms firms. telecoms is one of two areas specifically targeted by the new veto law on foreign investments  passed earlier in september. the other is airports  a source of controversy after the army closed tehran s new imam khomeini international airport on its opening day in may 2004. again  the allegation was that the part-turkish tav consortium which built and ran it had links with israel.


astrazeneca hit by drug failure shares in anglo-swedish drug have closed down 8% in uk trade after the failure of its iressa drug in a major clinical trial.  the lung cancer drug did not significantly prolong survival in patients with the disease. this setback for the group follows the rejection by the us in october of its anti-coagulant pill exanta. meanwhile  another of its major money spinners - cholesterol drug crestor - is facing mounting safety concerns.  this would be two of the three blockbuster drugs that were meant to power the company forward failing... and we ve got risks on crestor   said nick turner  analyst at brokers jefferies.  astrazeneca had hoped to pitch its iressa drug against rival medicine tarceva. but iressa proved no better than a placebo in extending lives in the trial involving 1 692 patients. tarceva - made by osi pharmaceuticals  genentech and roche - has already proved to be successful in helping prolong the life of lung cancer patients. aztrazeneca has now appointed a new executive director to the board. john patterson will be in charge of drug development. the company said mr patterson would make  substantial changes to the clinical organisation and its processes .  i am determined to improve our development and regulatory performance  restore confidence in the company and value to shareholders   said chief executive tom mckillop.


cup holders man utd visit everton holders manchester united and premiership leaders chelsea both face difficult away ties against premiership opposition in the fa cup fifth round.  united were drawn against everton  while chelsea face a trip to newcastle. brentford and hartlepool - the only sides left from outside the top two divisions - will replay for the right to travel to southampton. burnley s reward for a place in the last 16 was a home tie against lancashire rivals blackburn. the tie between manchester united and everton could see the return of teenage striker wayne rooney to his former club for the first time since his acrimonious £27m move.  nottingham forest boss gary megson could face a trip back to old club west brom if they come through their fourth-round replay against tottenham. arsenal were handed a potential home tie against fellow londoners west ham  providing the hammers come through their replay against sheffield united. charlton will play leicester and bolton await the winners of the derby-fulham replay.  : bolton v derby or fulham  west bromwich albion or tottenham v nottingham forest  everton v manchester united  charlton athletic v leicester city  burnley v blackburn  southampton v brentford or hartlepool  newcastle v chelsea  arsenal v west ham or sheffield united  ties to be played on 19/20 february.


jones medals  must go if guilty  world anti-doping agency (wada) chief dick pound says marion jones should be stripped of all her medals if found guilty of taking banned substances.  victor conte  of balco laboratories  claims the american sprinter regularly used drugs to enhance her performance.  if she is found guilty she should be stripped of all her medals and banned for two years   said pound. asked if there was a timescale as to what medals could be taken  pound said:  that is not an issue at all.  however  under international olympic committee (ioc) rules  athletes can only be stripped of their medals if caught within three years of the event. jones  who won five medals at the 2000 olympics  denies using drugs and says she will take legal action over conte s allegations. balco laboratories is the firm at the centre of a wide-reaching investigation into doping in the us. pound continued:  if she has indeed taken drugs it is going to be a big disappointment for a lot of people.


looks and music to drive mobiles mobile phones are still enjoying a boom time in sales  according to research from technology analysts gartner.  more than 674 million mobiles were sold last year globally  said the report  the highest total sold to date. the figure was 30% more than in 2003 and surpassed even the most optimistic predictions  gartner said. good design and the look of a mobile  as well as new services such as music downloads  could go some way to pushing up sales in 2005  said analysts. although people were still looking for better replacement phones  there was evidence  according to gartner  that some markets were seeing a slow-down in replacement sales.   all the markets grew apart from japan which shows that replacement sales are continuing in western europe   mobile analyst carolina milanesi told the bbc news website.  japan is where north america and western european markets can be in a couple of years  time.  they already have tv  music  ringtones  cameras  and all that we can think of on mobiles  so people have stopped buying replacement phones.   but there could be a slight slowdown in sales in european and us markets too  according to gartner  as people wait to see what comes next in mobile technology. this means mobile companies have to think carefully about what they are offering in new models so that people see a compelling reason to upgrade  said gartner. third generation mobiles (3g) with the ability to handle large amounts of data transfer  like video  could drive people into upgrading their phones  but ms milanesi said it was difficult to say how quickly that would happen.  at the end of the day  people have cameras and colour screens on mobiles and for the majority of people out there who don t really care about technology the speed of data to a phone is not critical.  nor would the rush to produce two or three megapixel camera phones be a reason for mobile owners to upgrade on its own. the majority of camera phone models are not at the stage where they can compete with digital cameras which also have flashes and zooms.  more likely to drive sales in 2005 would be the attention to design and aesthetics  as well as music services. the motorola razr v3 phone was typical of the attention to design that would be more commonplace in 2005  she added. this was not a  women s thing   she said  but a desire from men and women to have a gadget that is a form of self-expression too. it was not just about how the phone functioned  but about what it said about its owner.  western europe has always been a market which is quite attentive to design   said ms milanesi.   people are after something that is nice-looking  and together with that  there is the entertainment side.  this year music will have a part to play in this.  the market for full-track music downloads was worth just $20 million (£10.5 million) in 2004  but is set to be worth $1.8 billion (£94 million) by 2009  according to juniper research. sony ericsson just released its walkman branded mobile phone  the w800  which combines a digital music player with up to 30 hours  battery life  and a two megapixel camera. in july last year  motorola and apple announced a version of itunes online music downloading service would be released which would be compatible with motorola mobile phones. apple said the new itunes music player would become motorola s standard music application for its music phones. but the challenge will be balancing storage capacity with battery life if mobile music hopes to compete with digital music players like the ipod. ms milanesi said more models would likely be released in the coming year with hard drives. but they would be more likely to compete with the smaller capacity music players that have around four gigabyte storage capacity  which would not put too much strain on battery life.


lewis-francis eyeing world gold mark lewis-francis says his olympic success has made him determined to bag world championship 100m gold in 2005.  the 22-year-old pipped maurice greene on the last leg of the 4x100m relay in athens to take top honours for team gb. but individually  the birchfield harrier has yet to build on his world junior championship win four years ago.  the gold medal in athens has made me realise that i can get to the top level and i want to get there again. it can happen  i don t see why not   he said. lewis-francis has still to decided what events will feature in his build-up to the worlds - with one exception. he has confirmed his participation in the norwich union grand prix in birmingham on 18 february  where he will take on another member of britain s victorious men s relay team - jason gardener - over 60m. he added:  it s a bit too early to make any predictions for helsinki  but i have my eyes open and i know i can be the best in the world.


golden economic period  to end ten years of  golden  economic performance may come to an end in 2005 with growth slowing markedly  city consultancy deloitte has warned.  the uk economy could suffer a backlash from the slowdown in the housing market  triggering a fall in consumer spending and a rise in unemployment. deloitte is forecasting economic growth of 2% this year  below chancellor gordon brown s forecast of 3% to 3.5%. it also believes that interest rates will fall to 4% by the end of the year.  in its quarterly economic review  deloitte said the uk economy had enjoyed a  golden period  during the past decade with unemployment falling to a near 30 year low and inflation at its lowest since the 1960s.  but it warned that this growth had been achieved at the expense of creating major  imbalances  in the economy. deloitte s chief economic advisor roger bootle said:  the biggest hit of all is set to come from the housing market which has already embarked on a major slowdown.  whereas the main driver of the economy in recent years has been robust household spending growth  this is likely to suffer as the housing market slowdown gathers pace.   economic growth is likely to be constrained during the next few years by increased pressure on household budgets and rising taxes  deloitte believes. gordon brown will need to raise about $10bn a year in order to sustain the public finances in the short term  the firm claims. this will result in a marked slowdown in growth in 2005 and 2006 compared to last year  when the economy expanded by 3.25%. however  deloitte stressed that the slowdown was unlikely to have any major impact on retail prices while it expected the bank of england to respond quickly to signs of the economy faltering. it expects a series of  aggressive  interest rate cuts over the next two years  with the cost of borrowing falling from its current 4.75% mark to 3.5% by the end of 2006.  although 2005 may not be the year when things go completely wrong  it will probably mark the start of a more difficult period for the uk economy   mr bootle.


henry tipped for fifa award fifa president sepp blatter hopes arsenal s thierry henry will be named world player of the year on monday.  henry is on the fifa shortlist with barcelona s ronaldinho and newly-crowned european footballer of the year  ac milan s andriy shevchenko. blatter said:  henry  for me  is the personality on the field. he is the man who can run and organise the game.  the winner of the accolade will be named at a glittering ceremony at zurich s opera house. the three shortlisted candidates for the women s award are mia hamm of the united states  germany s birgit prinz and brazilian youngster marta.  hamm  who recently retired - is looking to regain the women s award  which she lost last year to striker prinz. fifa has changed the panel of voters for this year s awards. male and female captains of every national team will be able to vote  as well as their coaches and fipro - the global organisation for professional players.


the  ticking budget  facing the us the budget proposals laid out by the administration of us president george w bush are highly controversial. the washington-based economic policy institute  which tends to be critical of the president  looks at possible fault lines. us politicians and citizens of all political persuasions are in for a dose of shock therapy. without major changes in current policies and political prejudices  the federal budget simply cannot hold together. news coverage of the bush budget will be dominated by debates about spending cuts  but the fact is these will be large cuts in small programs. from the standpoint of the big fiscal trends  the cuts are gratuitous and the big budget train wreck is yet to come. under direct threat will be the federal government s ability to make good on its debts to the social security trust fund. as soon as 2018  the fund will begin to require some cash returns on its bond holdings in order to finance all promised benefits.  the trigger for the coming shock will be rising federal debt  which will grow in 10 years  by conservative estimates  to more than half the nation s total annual output.  this upward trend will force increased borrowing by the federal government  putting upward pressure on interest rates faced by consumers and business. even now  a growing share of us borrowing is from abroad. the us government cannot finance its operations without heavy borrowing from the central banks of japan and china  among other nations. this does not bode well for us influence in the world. the decline of the dollar is a warning sign that current economic trends cannot continue. the dollar is already sinking. before too long  credit markets are likely to react  and interest rates will creep upwards. that will be the shock.  interest-sensitive industries will feel pain immediately - sectors such as housing  automobiles  other consumer durables  agriculture  and small business. some will recall the news footage of angry farmers driving their heavy equipment around the us capitol in the late 1970s. there will be no need for constitutional amendments to balance the budget. the public outcry will force congress to act. whether it will act wisely is another matter. how did this happen   by definition  the deficit means too little revenue and too much spending - but this neutral description doesn t adequately capture the current situation. federal revenues are at 1950s levels  while spending remains where it has been in recent decades - much higher. in addition  the united states has two significant military missions. the bush administration s chosen remedy is the least feasible one. reducing domestic spending  or eliminating  waste  fraud and abuse  is toothless because this slice of the budget is too small to solve the problem. indeed  if congress were rash enough to balance the budget in this way  there would hardly be any such spending left. law enforcement  space exploration  environmental clean-up  economic development  the small business administration  housing  veterans  benefits  aid to state and local governments would all but disappear. it s fantasy to think these routine government functions could be slashed. the biggest spending growth areas are defence (including homeland security)  and health care for the elderly and the poor. to some extent  increases in these areas are inevitable. the us population is aging  and the nation does face genuine threats in the world. but serious savings can only be found where the big money is. savings in health care spending that do not come at the expense of health can only be achieved with wholesale reform of the entire system  public and private. brute force budget cuts or spending caps would ill-serve the nation s elderly and indigent.  on the revenue side  the lion s share of revenue lost to tax cuts enacted since 2000 will have to be replaced.  some rearranging could hold many people harmless and focus most of the pain on those with relatively high incomes. finally  blind allegiance to a balanced budget will have to be abandoned. there is no good reason to fixate on it  anyway. moderate deficits and slowly rising federal debt can be sustained indefinitely. borrowing for investments in education and infrastructure that pay off in future years makes sense. the sooner we face that reality  the sooner workable reforms can be pursued. first on the list should be tax reform to raise revenue  simplify the tax code  and restore some fairness eroded by the bush tax cuts. second should be a dispassionate re-evaluation of the huge increase in defence spending over the past three years  much of it unrelated to afghanistan  iraq  or terrorism. third must be the start of a serious debate on large-scale health care reform. one thing is certain - destroying the budget in order to save it is not going to equip the us economy and government for the challenges of this new century.


llewellyn plans wales retirement wales record cap holder gareth llewellyn will retire from test rugby at the end of the six nations.  the veteran lock  who is 36 at the end of february  told bbc wales scrum v that it is time for him to bring down the curtain on his 92-cap wales career. llewellyn is on a one-season deal with french club side narbonne  but said he may consider retiring from all rugby.  i don t know what i ll do next year  whether to carry on playing or make a change in my career   llewellyn said.  narbonne are really keen for me to stay on for next year  so i ve got to decide whether to stay on there or maybe go somewhere else  but ultimitely coaching is where i d like to end up.  i ve done all the coaching awards and everything you can do in that respect  so it s just hopefully getting a chance somewhere.  fellow locks robert sidoli and brent cockbain  who both scored tries in saturday s six nations win in italy  are wales coach mike ruddock s preferred starters in the second row.  with the resurgence of the dragons  ian gough and the adaptibility of lock-cum-flanker jon thomas on the bench  llewellyn has not yet made a match-day squad this six nations campaign. but the former neath and ospreys player is still targetting one last outing in the red shirt.  if i do get on the field then brilliant  although the boys are doing really well and i m very pleased for them   llewellyn added.  we ve had some really tough years in wales and the players have been through a hell of a lot.  sometimes the easiest thing would have been to throw the towel in and walk away  but a few of us dug in there and it s really nice to see some of the boys getting the rewards now.  i was going to retire at the end of the last six nations  i d even told some of the boys in the squad about it.  but mike (ruddock) asked me to carry on for another season  which i ve done  still part of the squad  still trying to help them out as much as i can.  llewellyn made his wales debut in 1989 against new zealand as a 20-year-old  having caught the selectors  eyes in the all blacks  tour match against neath. the 6ft 6in player has not looked back since  going on to break neil jenkins  wales cap record on 12 june 2004 in the 50-44 loss in argentina.   there s been lots of highs - winning the six nations in  94  beating england in  93  i ve been on some great tours and seen some fantastic countries   llewellyn said.  but i think the best thing of all for me was the time i spent with the players  i ve met some great guys in rugby and made some great friends.  it ll be a bit strange on international days having to find somewhere to watch wales play  but at least i might have time to get my golf handicap down!  llewellyn captained neath for seven seasons  while being an integral part of the neath-swansea ospreys regional side s first season. but with the ospreys building for the future  llewellyn was eventually forced to look to france for employment - digging in his heels during contract negotiations to insist he must be allowed to play for wales.


musicians  upbeat  about the net musicians are embracing the internet as a way of reaching new fans and selling more music  a survey has found.  the study by us researchers  pew internet  suggests musicians do not agree with the tactics adopted by the music industry against file-sharing. while most considered file-sharing as illegal  many disagreed with the lawsuits launched against downloaders.  even successful artists don t think the lawsuits will benefit musicians   said report author mary madden.  for part of the study  pew internet conducted an online survey of 2 755 musicians  songwriters and music publishers via musician membership organisations between march and april 2004.  they ranged from full-time  successful musicians to artists struggling to make a living from their music.  we looked at more of the independent musicians  rather than the rockstars of this industry but that reflects more accurately the state of the music industry   ms madden told the bbc news website.  we always hear the views of successful artists like the britneys of the world but the less successful artists rarely get represented.  the survey found that musicians were overwhelming positive about the internet  rather than seeing it as just a threat to their livelihood. almost all of them used the net for ideas and inspiration  with nine out of 10 going online to promote  advertise and post their music on the web. more than 80% offered free samples online  while two-thirds sold their music via the net. independent musicians  in particular  saw the internet as a way to get around the need to land a record contract and reach fans directly.  musicians are embracing the internet enthusiastically   said ms madden.  they are using the internet to gain inspiration  sell it online  tracking royalties  learning about copyright.   perhaps surprisingly  opinions about online file-sharing were diverse and not as clear cut as those of the record industry.  through the recording industry association of america (riaa)  it has pursued an aggressive campaign through the courts to sue people suspected of sharing copyrighted music. but the report suggests this campaign does not have the wholehearted backing of musicians in the us. it found that most artists saw file-sharing as both good and bad  though most agreed that it should be illegal.  free downloading has killed opportunities for new bands to break without major funding and backing   said one musician quoted by the report.  it s hard to keep making records if they don t pay for themselves through sales.  however 60% said they did not think the lawsuits against song swappers would benefit musicians and songwriters. many suggested that rather than fighting file-sharing  the music industry needed to recognise the changes it has brought and embrace it.  both successful and struggling musicians were more likely to say that the internet has made it possible for them to make more money from their music  rather than make it harder for them to protect their material from piracy   said ms madden.


holmes feted with further honour double olympic champion kelly holmes has been voted european athletics (eaa) woman athlete of 2004 in the governing body s annual poll.  the briton  made a dame in the new year honours list for taking 800m and 1 500m gold  won vital votes from the public  press and eaa member federations. she is only the second british woman to land the title after- sally gunnell won for her world 400m hurdles win in 1993. swedish triple jumper christian olsson was voted male athlete of the year. the accolade is the latest in a long list of awards that holmes has received since her success in athens. in addition to becoming a dame  she was also named the bbc sports personality of the year in december. her gutsy victory in the 800m also earned her the international association of athletics federations  award for the best women s performance in the world for 2004. and she scooped two awards at the british athletics writers  association annual dinner in october.


wembley firm won t make a profit shares in multiplex group  which is building the new wembley stadium  fell as much as 19% after it said it would not make any money on the project.  the australian firm said it would only break even on the 1.2bn australian dollars (£458m; $874m) rebuild  after a rise in costs on the work. any profits would depend on the outcome of legal cases resulting from a change in steel contractor  it added. it cut a$68m from profit targets for wembley and another uk project.  investors were shaken by the news and the firm s shares fell to a four month low of a$4.50  before recovering to close 16% down at a$4.67. the decline came despite multiplex reporting an 11% rise in pre-tax profits to a$67.7m for 2004 and reaffirming its 2005 profit forecasts. increased costs at wembley and a separate development in london s docklands saw multiplex s construction division report profits of a$35.1m.  the firm said the result was below expectations but stressed that the majority of its uk projects - which also include the white city redevelopment scheme in west london - were performing strongly.  to recoup any profit from wembley  where the firm changed its steel contractor due to a legal dispute  multiplex will have to win legal claims against subcontractors. these claims could take up to two years to resolve.  multiplex believes its claim are sound and ultimately will exceed the level needed to support the break even position   it said.  it is expected that profits will be possible in future periods as the claims are finalised.  wembley stadium is to due to be completed in january and will officially open for the 2006 fa cup final. analysts expressed concern at the unexpected paring back in profit.  such a big writeback on the wembley project in such a short period has impacted on management credibility   simon wheatley  from goldman sachs  told reuters.


google s toolbar sparks concern search engine firm google has released a trial tool which is concerning some net users because it directs people to pre-selected commercial websites.  the autolink feature comes with google s latest toolbar and provides links in a webpage to amazon.com if it finds a book s isbn number on the site. it also links to google s map service  if there is an address  or to car firm carfax  if there is a licence plate. google said the feature  available only in the us   adds useful links . but some users are concerned that google s dominant position in the search engine market place could mean it would be giving a competitive edge to firms like amazon.  autolink works by creating a link to a website based on information contained in a webpage - even if there is no link specified and whether or not the publisher of the page has given permission.  if a user clicks the autolink feature in the google toolbar then a webpage with a book s unique isbn number would link directly to amazon s website. it could mean online libraries that list isbn book numbers find they are directing users to amazon.com whether they like it or not. websites which have paid for advertising on their pages may also be directing people to rival services. dan gillmor  founder of grassroots media  which supports citizen-based media  said the tool was a  bad idea  and an unfortunate move by a company that is looking to continue its hypergrowth . in a statement google said the feature was still only in beta  ie trial  stage and that the company welcomed feedback from users. it said:  the user can choose never to click on the autolink button  and web pages she views will never be modified.  in addition  the user can choose to disable the autolink feature entirely at any time.   the new tool has been compared to the smart tags feature from microsoft by some users. it was widely criticised by net users and later dropped by microsoft after concerns over trademark use were raised. smart tags allowed microsoft to link any word on a web page to another site chosen by the company. google said none of the companies which received autolinks had paid for the service. some users said autolink would only be fair if websites had to sign up to allow the feature to work on their pages or if they received revenue for any  click through  to a commercial site. cory doctorow  european outreach coordinator for digital civil liberties group electronic fronter foundation  said that google should not be penalised for its market dominance.  of course google should be allowed to direct people to whatever proxies it chooses.  but as an end user i would want to know -  can i choose to use this service    how much is google being paid     can i substitute my own companies for the ones chosen by google  .  mr doctorow said the only objection would be if users were forced into using autolink or  tricked into using the service .


collins appeals against drugs ban sprinter michelle collins has lodged an appeal against her eight-year doping ban with the north american court of arbitration for sport (cas).  the 33-year-old received the ban last month as a result of her connection to the federal inquiry into the balco doping scandal. she is the first athlete to be banned without a positive drugs test or an admission of drugs use. cas has said that a ruling is normally given within four months of an appeal. collins was suspended by the us anti-doping agency based on patterns observed in her blood and urine tests as well as evidence in the balco investigation. as well as being hit with the ban  collins was stripped of her 2003 world and us indoor 200m titles. the san francisco-based balco laboratory is at the centre of the scandal which has rocked the sport. the company has been accused of distributing illegal performance-enhancing drugs to elite athletes.


battered dollar hits another low the dollar has fallen to a new record low against the euro after data fuelled fresh concerns about the us economy.  the greenback hit $1.3516 in thin new york trade  before rallying to $1.3509. the dollar has weakened sharply since september when it traded about $1.20  amid continuing worries over the levels of the us trade and budget deficits. meanwhile  france s finance minister has said the world faced  economic catastrophe  unless the us worked with europe and asia on currency controls. herve gaymard said he would seek action on the issue at the next meeting of g7 countries in february. ministers from european and asian governments have recently called on the us to strengthen the dollar  saying the excessively high value of the euro was starting to hurt their export-driven economies.  it s absolutely essential that at the meeting of the g7 our american friends understand that we need coordinated management at the world level   said mr gaymard.  thursday s new low for the dollar came after data was released showing year-on-year sales of new homes in the us had fallen 12% in november - with some analysts saying this could indicate problems ahead for consumer activity.  commerce department data also showed consumer spending - which drives two thirds of the us economy - grew just 0.2% last month. the figure was weaker than forecast - and fell short of the 0.8% rise in october. the official us policy is that it supports a strong dollar but many market observers believe it is happy to let the dollar fall because of the boost to its exporters.  the us government has faced pressure from exporter organisations which have publicly stated the currency still has further to fall from  abnormal and dangerous heights  set in 2002. the us says it will let market forces determine the dollar s strength rather than intervene directly. statements from president bush in recent weeks highlighting his aim to cut the twin us deficits have prompted slight upturns in the currency. but while some observers said the quiet trade on thursday had exacerbated small moves in the market  most agree the underlying trend remains downwards. the dollar has now fallen for a third consecutive year and analysts are forecasting a further  albeit less dramatic weakening  in 2005.  i can see it finishing the year around $1.35 and we can see that it s going to be a steady track upward for the euro/dollar in 2005  finishing the year around $1.40   said adrian hughes  currency strategist with hsbc in london.


standard life concern at lse bid standard life is the latest shareholder in deutsche boerse to express concern at the german stock market operator s plans to buy the london stock exchange.  it said deutsche boerse had to show why its planned £1.35bn ($2.5bn) offer for the lse was good for shareholder value. reports say standard life  which owns a 1% stake in deutsche boerse  may seek a shareholder vote on the issue. fellow shareholders us-based hedge fund atticus capital and uk-based tci fund management have also expressed doubts.  deutsche boerse s supervisory board has approved the possible takeover of the lse despite the signs of opposition from investors.  the onus is on deutsche boerse s management to demonstrate why the purchase of the lse creates more value for shareholders than other strategies  such as a buyback   said richard moffat  investment director of uk equities at standard life investments. atticus capital  holding 2% of deutsche boerse  wants it to buy back its own shares rather than buy the lse. and tci which holds about 5%  has made a request for an extraordinary shareholders meeting to be held to vote on replacing the company s entire supervisory board. it has also demanded that shareholders be consulted about the proposed acquisition  and whether the operator of the frankfurt stock exchange should return $500m (£266m) to shareholders instead.  in december  deutsche boerse  which also owns the derivatives market eurex and the clearing firm clearstream  put an informal offer of 530 pence per lse share on the table. however  the lse said the cash offer  undervalued  both its own business and the benefits of such a tie-up. since then an improved offer from deutsche boerse has been anticipated as its management has continued talks with lse chief executive clara furse. but the london exchange is also holding talks with deutsche boerse s rival euronext  which operates the amsterdam  brussels  lisbon and paris exchanges  as well as london-based international derivatives market liffe.


intel unveils laser breakthrough intel has unveiled research that could mean data is soon being moved around chips at the speed of light.  scientists at intel have overcome a fundamental problem that before now has prevented silicon being used to generate and amplify laser light. the breakthrough should make it easier to interconnect data networks with the chips that process the information. the intel researchers said products exploiting the breakthrough should appear by the end of the decade.   we ve overcome a fundamental limit   said dr mario paniccia  director of intel s photonics technology lab. writing in the journal nature  dr paniccia - and colleagues haisheng rong  richard jones  ansheng liu  oded cohen  dani hak and alexander fang - show how they have made a continuous laser from the same material used to make computer processors. currently  says dr paniccia  telecommunications equipment that amplifies the laser light that travels down fibre optic cables is very expensive because of the exotic materials  such as gallium arsenide  used to make it.  telecommunications firms and chip makers would prefer to use silicon for these light-moving elements because it is cheap and many of the problems of using it in high-volume manufacturing have been solved.  we re trying to take our silicon competency in manufacturing and apply it to new areas   said dr paniccia. while work has been done to make some of the components that can move light around  before now silicon has not successfully been used to generate or amplify the laser light pulses used to send data over long distances. this is despite the fact that silicon is a much better amplifier of light pulses than the form of the material used in fibre optic cables. this improved amplification is due to the crystalline structure of the silicon used to make computer chips. dr paniccia said that the structure of silicon meant that when laser light passed through it  some colliding photons rip electrons off the atoms within the material.  it creates a cloud of electrons sitting in the silicon and that absorbs all the light   he said. but the intel researchers have found a way to suck away these errant electrons and turn silicon into a material that can both generate and amplify laser light. even better  the laser light produced in this way can  with the help of easy-to-make filters  be tuned across a very wide range of frequencies. semi-conductor lasers made before now have only produced light in a narrow frequency ranges. the result could be the close integration of the fibre optic cables that carry data as light with the computer chips that process it. dr paniccia said the work was the one of several steps needed if silicon was to be used to make components that could carry and process light in the form of data pulses.  it s a technical validation that it can work   he said.


robinson answers critics england captain jason robinson has rubbished suggestions that the world champions are a team in decline.  england were beaten 11-9 by wales in their six nations opener in cardiff last week and face current champions france at twickenham on sunday. robinson said:  we are certainly not on the decline. you lose one game and it doesn t make you a bad team.  i have no doubt in the players we ve got. we have still got the team to go out and beat anyone on our day.  england find themselves striving to avoid a third successive championship defeat for the first time since 1987. but full-back robinson believes the new-look england team can stop the rot against france.   last weekend we should have won the game   he said.  but if we can under-perform and lose by only two points then i am sure if we play well this week we will get the win we need.  we proved that in the autumn - when we put in some excellent performances - and we just need to build on that.   it was a disappointing start against wales and we might be down on that.  but we are certainly not out. we will come out fighting this week.  robinson also had words of comfort for 18-year-old newcastle centre mathew tait  who made his international debut against wales but has been demoted from the squad to face france.   i have had a word with mathew   said robinson.  i still believe in him. he is an outstanding player but we have gone for olly (barkley) because of the kicking.  mathew has just got to take it on the chin  keep working hard like he is doing and i m sure he will feature in some of the games.


nintendo ds aims to touch gamers the mobile gaming industry is set to explode in 2005 with a number of high-profile devices offering a range of gaming and other features such as movie and music playback. market leader nintendo  however  is releasing a handheld console that it says will revolutionise the way games are played.  the first striking thing about the ds is how retro it looks. far from looking like a mould-breaking handheld  it looks more like nintendo dug out a mould from a 1980s handheld prototype. the lightweight clam shell device opens up to reveal two screens  and when switched on it instantly reveals its pedigree. both screens are crisp and clear while the bottom of the two is touch sensitive. nintendo has given developers free rein to utilise the dual screens and ability to control the action by simply touching the screen.  the japanese gaming giant hopes the ds will maintain the firm s pre-eminence in an increasingly-competitive mobile gaming market.  nintendo first launched its gameboy console in 1989 and has dominated the market ever since. but its lead can no longer be taken for granted. sony will enter the market later this year with its playstation portable  while start-up companies gizmondo and tapwave zodiac are also offering hybrid devices.  we believe the ds will appeal to all ages  both genders and gamers of any skill   said david yarnton  nintendo europe s general manager said at the recent press launch for the handheld. with its two screens  wireless connectivity and backwards compatibility with the gameboy advance  the ds certainly has a number of unique selling points. it went on sale in the us in mid-november priced $150 and nintendo says sales have exceeded expectations  without giving detailed figures. japan and europe will have to wait until the first quarter of 2005 to get the device. with more than two million pre-orders for the device in japan  nintendo is confident it will keep its number one spot. but will the device prove to be as revolutionary as claimed  the game ships with a demo of metroid hunters - a 3d action title which can be played alone or with a group of friends using the machine s wireless capabilities. it certainly looks impressive on the small machine and plays smoothly even with a group of people.  the game can be controlled by using the supplied stylus to aim. the top screen is used to navigate the action while the bottom screen offers a top-down map and the ability to switch weapons. it is certainly a unique control method and while it makes aiming more controlled it can be a little disorientating. super mario 64 ds is a faithful re-creation of the nintendo 64 classic with a host of new mini-games and new levels. the game looks stunning on the portable machine and the sound too is impressive for such a small machine. one thing is for certain. hardened gamers will have to learn to adapt to a new way of playing while it could prove to be an accessible way in to gaming for novices  ultimately the success or failure of the device lies in the hands of developers. if they manage to create titles which use the nintendo ds s key features then a whole new market of gamers could open up. the fear is that the touch screen and voice recognition are treated as little more than gimmicks.


feta cheese battle reaches court a row over whether only greece should be allowed to label its cheese feta has reached the european court of justice.  the danish and german governments are challenging a european commission ruling which said greece should have sole rights to use the name. the commission s decision gave the same legal protection to feta as to italian parma ham and french champagne. but critics of the judgement say feta is a generic term  with the cheese produced widely outside greece.  the commission s controversial 2002 ruling gave  protected designation of origin  status to feta cheese made in greece  effectively restricting the use of the feta name to producers there.  from 2007 onwards  greek firms will have the exclusive use of the feta label and producers elsewhere in europe must find another name to describe their products. the german and danish governments argue that feta does not relate to a specific geographical area and that their firms have been producing and exporting the cheese for years.  in our opinion it is a generic designation and we do not have any other name or term for this type of cheese   hans arne kristiansen  a spokesman for the danish dairy board  told the bbc. denmark is europe s second largest producer of feta after greece - producing about 30 000 tonnes a year - and exports its products to greece. it is concerned that the ruling could threaten the production of other cheeses in denmark such as brie.  it would cost millions if we wanted to introduce a new designation   mr kristiansen said.  that is just one of the costs.   the case will also have a major impact on britain s sole feta producer  yorkshire company shepherds purse cheeses.  judy bell  the company s founder  said it would cost a huge amount to rebrand its product.  if we lose we will have to go through a massive re-merchandising process and reorganisation   she said.  we have never tried to pull the wool over anyone s eyes - it s very clear from the label that it s yorkshire feta.  the original decision was a victory for greece  where feta cheese is believed to have been produced for about 6 000 years. feta is a soft white cheese made from sheep or goat s milk  and is an essential ingredient in greek cuisine. greece makes 115 000 tonnes  mainly for domestic consumption. the court is expected to reach a verdict in the case in the autumn.


holmes urged to compete at worlds jolanda ceplak has urged britain s kelly holmes to continue competing at the major championships.  double olympic gold medallist holmes has strongly hinted she will not run in this year s worlds and is undecided about next month s european indoors. but world indoor 800m record holder ceplak said:  there is never an easy race when she is in the field. there is only excitement at what might happen.  it is good for the sport. she always fetches the best out of everyone.  ceplak has been a great rival of holmes  during the briton s career and the pair fell out when holmes questioned the manner of the slovenian s runaway 800m victory at the 2002 european championships. but the controversy has since been forgotten  with ceplak acting as pacemaker for holmes  failed attempt on the british indoor 1500m record at the norwich union grand prix in birmingham in 2003.  ceplak added:  i like running against her - you know the race is always going to be fast.  that is the sort of competition that i like. she is special to me. she was like my idol from the beginning of my career.  meanwhile  ceplak will be looking to follow up last saturday s win in boston with a fast time and victory in friday s night of athletics in erfurt  germany. britain s jason gardener had been expected to defend his 60m title in erfurt but instead he will save himself for a competition in leipzig on sunday. gardener s decision means scotland s 400m man ian mackie will carry british hopes in what looks sure to be a tough preparation for next weekend s norwich union european trials in sheffield.


profits slide at india s dr reddy profits at indian drugmaker dr reddy s fell 93% as research costs rose and sales flagged.  the firm said its profits were 40m rupees ($915 000; £486 000) for the three months to december on sales which fell 8% to 4.7bn rupees. dr reddy s has built its reputation on producing generic versions of big-name pharmaceutical products. but competition has intensified and the firm and the company is short on new product launches. the most recent was the annoucement in december 2000 that it had won exclusive marketing rights for a generic version of the famous anti-depressant prozac from its maker  eli lilly. it also lost a key court case in march 2004  banning it from selling a version of pfizer s popular hypertension drug norvasc in the us. research and development of new drugs is continuing apace  with r&d spending rising 37% to 705m rupees - a key cause of the decrease in profits alongside the fall in sales. patents on a number of well-known products are due to run out in the near future  representing an opportunity for dr reddy  whose shares are listed in new york  and other indian generics manufacturers.  sales in dr reddy s generics business fell 8.6% to 966m rupees. another staple of the the firm s business  the sale of ingredients for drugs  also performed poorly. sales were down more than 25% from the previous year to 1.4bn rupees in the face of strong competition both at home  and in the us and europe. dr reddy s indian competitors are gathering strength although they too face heavy competitive pressures.