Barack Obama says he expects a “difficult few days”

The EU and Canada have warned that a clause in the US economic recovery package could promote protectionism.

The “Buy American” clause seeks to ensure that only US iron, steel and manufactured goods are used in construction work funded by the bill.

The EU ambassador in Washington said that if approved, the measure would set a “dangerous precedent”.

The $800bn (£567bn) rescue plan package is under discussion in the US Senate this week.

Meanwhile, President Barack Obama is expected to name Republican Senator Judd Gregg as commerce secretary.

Mr Gregg would be the third Republican in Mr Obama’s cabinet.

The president’s first choice for the post, New Mexico Governor Bill Richardson, withdrew following questions about his links to big business.

‘Dangerous precedent’

The BBC’s Jonathan Beale in Washington says Mr Obama will hope that Mr Gregg’s nomination can help him secure approval for the stimulus package.

It is unlikely that the package, which has already been approved by the House of Representatives, will be able to pass the Senate without Republican support.

If we have a series of protectionist measures introduced, then the possibility of real global leadership is put at risk John Bruton EU ambassador to Washington Dire warnings about protectionism

The White House has said it is reviewing the “Buy American” part of the stimulus bill, although Vice President Joe Biden said last week that it was legitimate to have some portion of Buy American in the final measure.

Mr Obama’s signals as a presidential candidate on the campaign trail last year that he could rip up the North America free trade agreement were seen as a political gesture to win round the sceptical white working class vote, says our Washington correspondent.

Perhaps that has become more important with the economic crisis, but it leaves one wondering where the Obama administration really stands on free trade, he adds.

EU Ambassador John Bruton said that if passed, the measure could sap global public confidence.

“If we have a series of protectionist measures introduced, then the possibility of real global leadership is put at risk,” he said.

“We regard this legislation as setting a very dangerous precedent at a time when the world is facing a global economic crisis.”

‘Retaliatory risk’

In a letter to Senate leaders, the Canadian ambassador in Washington, Michael Wilson, said that if “Buy American” was in the final legislation, it would set a negative precedent with global repercussions.

“The United States will lose the moral authority to pressure others not to introduce protectionist policies,” he wrote.

Canadian International Trade Minister Stockwell Day said Canada hoped to be exempted from any such measure, which he warned could lead to a global depression.

“These protectionist measures, in a time of recession, only make things worse,” he told broadcaster CBC.

“It can only trigger retaliatory action and we don’t want to go there.”

There is also opposition from some senior US Republicans who say the measure could start trade wars.

Mr Obama has urged the US Congress not to delay his stimulus plan over modest differences.

He said on Monday that he was expecting a “difficult next few days” as the Senate debated the package.

He also warned that more US banks are likely to fail as the full extent of their losses in the economic crisis becomes clear.

The Democrat leader in the Senate, Harry Reid, has said he hopes the stimulus can be approved by the end of the week.

Wilson Palacios joined Wigan in January 2008

Tottenham have agreed a deal with Wigan to sign Wilson Palacios for about £14m.

The midfielder has passed a medical after agreeing terms and the transfer will be completed once the Honduras international receives a work permit.

Palacios, 24, has been at Wigan since January 2008 after signing from Deportivo Olimpia on a three-and-a-half year deal for £1m.

He had been with Wigan boss Steve Bruce at Birmingham for a loan spell before rejoining him at the JJB Stadium.

606: DEBATE

It is understood that Palacios had reservations about moving to London from the north west, where he was settled.

But Spurs boss Harry Redknapp said he was confident the deal would go through and has now got his man.

Mike Riley books Rio Ferdinand

Manchester United manager boss Sir Alex Ferguson saw seven of his players booked in Sunday’s 1-1 draw at Chelsea but did not feel it was a dirty match.

Ferguson also refused to be drawn on the performance of referee Mike Riley.

“It was a competitive game but I did not think there was one bad tackle in it,” said Ferguson.

“People are saying what is going on here but it is difficult to say anything about the referee. I do not want to get involved.”

However, United will now face questions from the Football Association as an investigation is automatically triggered when one side has six players cautioned.

Chelsea boss Luiz Felipe Scolari was quick to suggest any punishment meted out to United on the pitch was deserved.

“That is what the referee is there for,” said Scolari. “If players do not respect him, it should be yellow and red cards. It doesn’t matter who you are - Liverpool or Manchester United, whoever.”

The FA is also likely to assess the clash between United defender Rio Ferdinand and Chelsea’s Didier Drogba, which left the striker needing treatment.

That incident was the last of the match as Riley blew the whistle for full-time after the pair collided in the air.

Matters continued to be aggravated off the pitch as United’s team coach was attacked after leaving Stamford Bridge.

A bottle was hurled from the pavement, cracking the windscreen, although no-one was injured, with United officials eager to play down the incident afterwards.

“There was an incident but the matter is now in the hands of the police,” said a club spokesman.

As for the game itself, Scolari was relieved to escape with a point after injuries to Deco and Ricardo Carvalho.

Deco injured a thigh in the warm-up and Carvalho suffered a knee injury early on.

Scolari said: “The game is one of the best games we’ve played this season, because we have many problems.

606: DEBATE Your views on the draw at Stamford Bridge

“After we lost Deco, Manchester controlled the game for 15 minutes and they played better than us.

“They made a goal - and after this, we improved. We had more chances than them but we missed some chances in front of goal.

“At half-time I said we wanted Lampard and Ballack more up front, nearer the strikers - and we put Drogba on.”

Ferguson admitted he was disappointed not to be leaving London with a victory after his side led for much of the game.

“I feel we have missed a good chance, obviously. If we had had a bit more energy, we would have been OK,” he said.

“We started to drop off the pace a bit in terms of the speed we were playing at.

“That was a bit of a disappointment because it allowed them to regroup at half-time.

“We started to give the ball away in the second half and that got them back into the game. They had a couple of chances, but that’s about all they had.”

Jean Charles de Menezes was shot on 22 July 2005

The inquest into the killing of Jean Charles de Menezes by police hunting a suicide bomber is due to begin.

The Brazilian electrician was shot at Stockwell Tube station in south London the day after the botched 21 July 2005 London suicide attacks.

A jury will hear from two officers who fired the fatal shots - the first time their accounts will have been heard.

Former High Court judge Sir Michael Wright has been appointed coroner for the hearing, set to last three months.

Sir Michael, assistant deputy coroner for Inner South London, will swear in the jury and deliver an opening statement.

Mr de Menezes was shot dead on 22 July 2005 by specially trained Metropolitan Police firearms officers.

Teams of undercover officers had trailed the 27-year-old across south London after he left flats being watched for one of the 21/7 bombing suspects.

In 2007, an Old Bailey jury found the Metropolitan Police guilty of breaching health and safety laws, after hearing about the events leading up to Mr de Menezes being shot seven times at close range on a tube carriage.

Key question

The inquest jury will consider whether or not Mr de Menezes was unlawfully killed.

They will hear from some 75 witnesses over three months, including 40 serving police officers who have been granted anonymity, and Tube passengers.

Among those who will be speaking for the first time will be policemen codenamed C2 and C12, the two specialist firearms officers who shot the Brazilian.

Some of the other officers giving evidence appeared at the Old Bailey trial, including surveillance officers accused of failing to establish whether or not the man they were following matched the description of suicide bomber Hussain Osman.

The proceedings are likely to be watched closely to see if they raise questions about the leadership of Sir Ian Blair, the Metropolitan Police Commissioner.

The inquest is being held at John Major conference room at the Oval Cricket Ground because of the scale of the proceedings and level of public interest.

Relatives of Mr de Menezes, who have campaigned for police officers to be prosecuted, will hold a protest at the venue.

Mr de Menezes’ mother, Maria, and brother Giovani, are expected to fly from Brazil to attend the later stages of the inquest, including evidence given by the two shooters.

There have been five inquiries relating to the death and its aftermath, including the criminal trial.

Pakistan’s government has pledged to take targeted action against militants, a day after a suicide bomb killed 53 people in the capital, Islamabad.

Interior Ministry adviser Rehman Malik said raids would be carried out in some “hotspots” near the Afghan border.

Earlier, the authorities revealed that a truck laden with 600kg of high-grade explosives had rammed the Marriott Hotel security gate before blowing up.

Rescuers have been combing the wreckage for survivors and bodies.

The blast left 266 people with injuries.

Although most of those killed were Pakistani, the Czech ambassador and two US defence department workers were among the dead.

The attackers had disguised the truck well as it was covered with a tarpaulin and loaded with bricks and gravel Rehman Malik In pictures: Islamabad aftermath Pakistanis bear brunt

A Vietnamese citizen was also killed in the blast, in which at least a dozen foreign nationals were wounded.

The Danish Foreign Ministry said one of its diplomats was missing.

No group has taken responsibility for the attack, but Mr Malik suggested responsibility lay with al-Qaeda and Taleban militants based in the Federally Administered Tribal Areas (Fata) on the Afghan border.

“In previous attacks, all roads led to Fata,” he said.

The BBC’s Barbara Plett, in Islamabad, says the attack might have been retaliation for army bombardments of suspected Taleban targets with jet fighters.

British Airways has cancelled two flights to Pakistan “in light of the security situation”.

Room-by-room search

The heavily-guarded hotel was attacked at about 2000 (1500 GMT) on Saturday.

CCTV footage of the moments before the blast show a six-wheeler lorry ramming the security barrier at the hotel gate.

Rescue teams combed the scene for bodies and survivors

Shots are fired and the vehicle starts to burn. Security guards initially scatter, but return to try to douse the flames.

The footage breaks off at the moment of the blast because the camera was destroyed. It created a crater about 8m (27ft) deep, and triggered a fire which engulfed the 290-room, five-storey building for hours.

Officials said the lorry contained explosives as well as grenades and mortars. Aluminium powder was used to accelerate the explosion and added to the ferocity of the blaze.

“I do not believe this is a breakdown in security. The attackers had disguised the truck well as it was covered with a tarpaulin and loaded with bricks and gravel,” Mr Malik said.

Witnesses described a scene of horror as blood-covered victims were pulled from the wreckage and guests and staff ran for cover from shattered glass and flames.

The fire has now burned out and rescue workers have been searching the building room-by-room, pulling bodies out of the blackened debris.

‘Confronting the threat’

Immediately after the bombing, newly-elected President Asif Ali Zardari vowed to root out the “cancer” of terrorism in Pakistan.

He has now flown to New York to attend the UN General Assembly session, where he will meet US President George W Bush on the sidelines.

The meeting comes amid tension between the two countries over US attacks on militants in tribal areas of Pakistan, close to the Afghan border.

In the wake of the attack, President Bush pledged assistance to Pakistan in “confronting this threat and bringing the perpetrators to justice”.

The Marriott is the most prestigious hotel in the capital, and is located near government buildings and diplomatic missions. It is popular with foreigners and the Pakistani elite.

The hotel has previously been the target of militants. Last year a suicide bomber killed himself and one other in an attack at the hotel.

Mr Aso is set become Japan’s first Catholic prime minister

Members of Japan’s ruling party have selected a bluff conservative, Taro Aso, as their new leader, meaning he is almost certain to become the next PM.

Mr Aso advocates greater public spending to promote the economy, and an assertive foreign policy.

He overwhelmed his four Liberal Democratic Party rivals for the party leadership in a crowded race.

The LDP is struggling to combat a long-term slump in public popularity, and early general elections are now likely.

Its last two prime ministers have quit after serving just a year each.

The LDP’s recent slump in popularity has led some to suggest that the party could be on the verge of losing power - an almost unthinkable prospect for most of the past 50 years.

The party now hopes Mr Aso’s brash straight-talking style and charisma - he is known for his love of adult manga cartoons - will prove an antidote to the opposition’s rising popularity.

Landslide vote

Mr Aso received 351 out of the 527 votes cast by MPs and members of regional chapters, party election chief Hideo Usui announced after voting.

America is facing a financial crisis… we must not allow that to bring us down as well Taro Aso Profile: Taro Aso

Kaoru Yosano, the minister for economic and fiscal policy, trailed in second place at 66 votes. Former defence minister Yuriko Koike, who hoped to become Japan’s first female prime minister, placed third with 46 votes.

The LDP leader looks certain to be approved as the country’s prime minister on Wednesday because of the party’s majority in the lower house of parliament. But Mr Aso is widely predicted to put his leadership quickly to the test with a snap general election.

Mr Aso will face the uphill challenge of steering the Japanese economy away from the brink of recession.

The 68-year-old veteran is promising greater public spending to try to stimulate the economy - particularly in rural areas, where the party is traditionally strong.

Before the vote Mr Aso, a former foreign minister, pledged to a crowd of supporters in Tokyo that he would sort out Japan’s economy.

“America is facing a financial crisis… we must not allow that to bring us down as well,” he said.

But his leadership rival Mr Yosano accused him of risking Japan’s long-term interests through wasteful spending.

Chronic unpopularity

Other colleagues fear higher spending could mark a return to the old profligate ways of the LDP, where expensive public works projects were used to try to create jobs, hollowing out the public finances.

Japan’s last prime minister, Yasuo Fukuda, abruptly resigned last September after less than a year in the job, having fought chronic low approval ratings and political deadlock caused by the opposition’s popularity.

The main opposition Democratic Party (DPJ) made big gains in recent elections and controls the upper house of parliament.

The hacked Yahoo account was one of two Ms Palin owned

Details of how an e-mail account of US Republican vice-presidential candidate Sarah Palin was hacked have emerged.

Following the hack, screenshots of Mrs Palin’s messages, inbox, pictures and address book were posted to the Wikileaks whistle-blowing site.

It is thought the attackers exploited the password resetting system of Yahoo’s e-mail service.

Details about Mrs Palin’s life pulled from public sources reportedly helped defeat security questions.

Formal investigation

Information from Wikipedia and other online databases helped to establish Mrs Palin’s date of birth, zip code and other personal information.

Armed with this, the attackers convinced the Yahoo password re-setting system they warranted access and allowed them to re-set the password and then get at the account.

In an official statement Yahoo said: “Yahoo treats issues of security and privacy very seriously.”

It added: “To protect the privacy of our users, we are not able to comment on the details of a specific user account.”

“Generally, if Yahoo! receives reports that an account has been compromised, we investigate for suspicious activity and take appropriate action,” the company said.

Mrs Palin is being investigated for her conduct as governor of Alaska

The attackers broke into Mrs Palin’s gov.palin@yahoo.com e-mail account. This account and another, gov.sarah@yahoo.com, owned by Mrs Palin have now been deleted.

The FBI and the US Secret Service have now begun a formal investigation into the attack and who may have been behind it.

The hackers used the CTunnel proxy service which routes web browsing through an intermediary to obscure where the attackers were based.

However, the screenshots for the attack reveal the original web address used by the proxy which may help investigators track down the miscreants.

It has been reported that records from the CTunnel proxy service are being sought by the FBI.

The attack on the e-mail account comes as questions are being asked about whether Mrs Palin used her personal e-mail accounts to carry out state business.

US law states that all e-mails relating to the official business of government must be archived and not destroyed. However, it does allow for personal e-mails to be deleted.

Mrs Palin is being investigated in Alaska for alleged abuse of power while governor of the state.