Obama Signs Order To Start Spending Cuts

President Barack Obama has signed an order authorising $85bn cuts in domestic and defence spending following the failure of efforts to strike a deal with Republicans on cutting the US deficit.

Mr Obama and Republican leaders in the House and Senate declared themselves still deadlocked after a last-minute White House meeting last night.

The two sides are at odds over the president's insistence on increasing tax revenue as part of any plan to tackle the country's $16.6trn debt.

Mr Obama signed the order which officially enacts the across-the-board reductions - known as a "sequester" in government budget language. Under the law, the president had until midnight.

The $85bn cuts apply to the remainder of the 2013 fiscal year, which ends on September 30. But the legislation that requires the spending reduction will continue slashing government spending by about $1trn more over a 10-year period.

Speaking after the White House meeting, Mr Obama said: "Let's be clear, none of this is necessary."

He blamed the deadlock on Republicans who he said refused to close tax loopholes that benefit the wealthy, adding that "the pain will be real" for the American people.

"I am not a dictator. I'm the president," Mr Obama said, warning he could not force his Republican foes to "do the right thing," or make the Secret Service barricade Republicans leaders in a room until a deal is done.

"These cuts will hurt our economy, will cost us jobs and to set it right both sides need to be able to compromise," Mr Obama added.

US Speaker of the House John Boehner walked out of the meeting

Republican John Boehner, speaker of the House of Representatives, walked out of the meeting to say there would be no compromise as long as Mr Obama insisted on higher tax revenue.

Republicans are standing fast against further increasing taxes and will not compromise on achieving debt reduction through spending cuts alone.

The opposition party is still feeling the sting from its most conservative members after agreeing at the end of 2012 to allow the expiration of Bush-era tax cuts for Americans earning $400,000 or more a year.

Friday's meeting was the first the two sides have held this year on the budget battle, and it lasted less than an hour.

The immediate impact of the cuts on the public is uncertain, but they will carve 5% from domestic agencies and 8% from the Pentagon between now and October 1.

Defence officials say they will be forced to reduce the working week of 800,000 civilian employees, scale back flight hours of warplanes and postpone some equipment maintenance.

The deployment of a second aircraft carrier to the Persian Gulf has also been cancelled.

The US Navy will gradually stand down several hundred planes starting in April, the Air Force will curtail flying hours and the Army will cut back training for all units except those deploying to Afghanistan.

Several major programmes will be unaffected, including the Social Security pension programme, the Medicaid health care programme for the poor and food stamps.

Pentagon chief Chuck Hagel warned that the budget cuts will endanger the US military's ability to conduct its missions.

"This will have a major impact on training and readiness," he said. "Later this month, we intend to issue preliminary notifications to thousands of civilian employees who will be furloughed."

Mr Hagel also acknowledged that the budget cuts "will cause pain, particularly among our civilian workforce and their families".

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Britons In Coach Crash In Kenya

A number of Britons were travelling on a coach which crashed in Kenya, the Foreign Office has said.

Around 15 people were believed to have been in the vehicle when the accident happened in the coastal city of Mombasa.

The number of Britons involved is not yet known.

There are thought to be some injuries but they are not believed to be life-threatening.

A Foreign Office spokesman said: "There has been a coach crash that we are aware of.

The number of Britons involved is not yet known

"We believe there are British nationals involved, and there are some injuries.

"We are sending staff there now and we'll have more details later.

"Indications are the injuries are not life-threatening but we won't know for certain until our people are on the scene."

People stand at the side of the road following the crash

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Sharks: 'Hundred Million Are Killed A Year'

Nearly 100 million sharks are killed each year and they need to be better protected or many species could face possible extinction, according to a new study.

The rate of commercial fishing far exceeds what many populations need to recover, scientists have warned.

Sharks take years to sexually mature, produce small litters and are exceptionally vulnerable to overfishing.

They are being caught at an average rate that is 30% to 60% higher than they can sustain, the study said.

The fish are often targeted for their fins, which are used in shark fin soup, a delicacy in Asia where a bowl of it can reportedly sell for £65.

The practice known as "shark finning" - where the fish are caught and thrown back after their fins are cut off - is globally widespread, according to the researchers from Dalhousie University in Halifax, Canada.

Some areas including Europe, the US, Canada and Australia have introduced anti-finning legislation but the practice continues in most other parts of the world, they added.

The Porbeagle shark is also under threat

Sharks are also caught accidentally by vessels looking for tuna, swordfish and other species.

The researchers, using information from nearly 100 papers, estimated global reported catches, unreported landings, discards and finning totalled 97 million fish caught in 2010.

The number is only slightly less than the estimated 100 million caught in 2000, and the 2010 figure could actually be as high as 273 million, said the study published in the journal Marine Policy.

It is thought between 6.4% and 7.9% of all sharks are killed each year, less than the 4.9% that means population stability can be maintained.

Anything over that threatens the long-term survival of species like the oceanic white tip, porbeagle and several kinds of hammerheads.

"There's a staggering number of sharks being caught every year and the number is way too high considering the biology of species," says Dalhousie biologist Boris Worm, the study's lead researcher.

The study said "protective measures have to be scaled up significantly in order to avoid further depletion and the possible extinction of sharks, with likely severe effects on marine ecosystems around the world".

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Battling Somali Pirates In The Seychelles

By David Bowden, Defence Correspondent, in the Seychelles

A British-backed international effort is making the Seychelles the frontline in the battle against Somali pirates in the Indian Ocean.

There are believed to be four ships and 108 hostages currently being held by pirates in the region, who have made millions from what is effectively armed robbery and kidnapping at sea.

But the number of attacks has fallen dramatically over the past year, thanks largely to high-intensity multinational naval patrols and the presence of heavily-armed guards on cargo ships.

Now the Regional Anti-Piracy, Prosecution and Intelligence Coordination Centre (RAPPICC) hopes to boost the fight against piracy by bringing together policing skills more commonly associated with organised crime, people trafficking, drug smuggling, gun-running and money laundering.

A pirate suspect captured by a Dutch warship is loaded into a police van

The RAPPICC is funded largely by Britain and headed by a senior officer from the Serious Organised Crime Agency, and is deemed so important that Foreign Office minister Alistair Burt flew to the Seychelles to officially open it.

He pointed out that 26,000 ships a year pass through the region and a third of the world's oil is carried across the Indian Ocean and Gulf of Aden.

He said: "People here reckon there are about a dozen people, that's all, who are controlling this trade and we're targeting them with information, particular skills to make sure evidence can be presented so that people can be prosecuted. It's very important to go after them and that's what we are doing."

A smirking pirate seems unperturbed by a lengthy jail term outside court

In a courthouse a gang arrested last year after hijacking an Iranian fishing vessel were being sentenced to 24 years each, while a teenager escaped with a 16-year term because of his age.

In his summing up, Judge Gustav Didon gave some idea of the terrifying ordeal faced by ships targeted as they pass through areas patrolled by the bandits.

Most pirates jailed in the Seychelles go to the Montaine Posse prison

He said: "The Somalis came firing guns. There were nine in a small boat and all of them had guns. He stopped the engine and surrendered.

"He was told to go to the Somali coast. The Somalis pointed their guns at them and told them if they did not go inside they would be shot."

As they are carted off to prison in cuffs the men continue to claim their innocence - though their claim to be mere fishermen differs from their defence in court, where they swore they were refugees who had paid for passage to Europe.

Prisoners claim to be innocent - with some saying they are just fishermen

This week, the crew of Dutch Warship HNLMS De Ruyter captured and handed over nine suspected Somali Pirates to the Seychelles Police after they allegedly attempted to hijack a Panamanian boat.

They will be prosecuted by one of the two British lawyers on the Island, seconded to the Seychelles justice department from the UK Crown Prosecution Service.

Most pirates jailed in the Seychelles are taken to the Montaine Posse prison, run by Will Thurbin, a former prison governor from the Isle of Wight.

Among more than 400 inmates in his jail are some 88 Somali pirates, though there have been more than a 100 locked up there in the past.

The prison's British governor speaks to Sky's David Bowden

Mr Thurbin told Sky News: "Their reputation on the high seas is well-earned with the violence they show people they take captive and taking ships, but we find that once the pirates come into the prison their behaviour settles down."

For now, Rear Admiral Bob Tarrant, operational commander of one of the three naval coalitions patrolling the region, says the pirates are on the back foot - but will return if the international community takes its eye off the ball.

He told me: "The pirate business model is fractured, but it's not broken and if we relieve the pressure now my military judgement estimates that piracy will come back quickly."

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South Africa Suspends Cops After Van Brutality

Several South African police officers have been suspended and a murder investigation launched after a video showed a man being handcuffed to a moving police van.

Police in Pretoria held a press conference to placate a nation outraged by the video showing taxi driver Mido Macia being dragged through the streets.

He was later found dead in a police cell with serious head and internal injuries.

National Commissioner of the South African Police Service, General Riah Phiyega, said that eight officers had been suspended and disarmed.

The station commander in Daveytown, a township east of Johannesburg, had also been removed from his post, she said.

The Independent Police Investigative Directorate has opened a murder investigation.

"Any one death is one too many," Ms Phiyega said. "We believe in the principle of police being policed."

The Daily Sun, a South African newspaper, posted footage of the dragging incident, which occurred on Tuesday.

It was apparently filmed by several people on mobile phones.

Witnesses said Mr Macia, 27, of Mozambique drew the attention of police when he parked in a way that blocked traffic, and then got into an row with officers.

"We are going to film this," several onlookers shouted in Zulu as the police subdued Mr Macia.

One bystander can be heard shouting: "What has this guy done?"

President Jacob Zuma condemned the killing of Mr Macia.

Some commentators drew comparisons with the 1977 death of anti-apartheid activist Steve Biko, who also suffered head injuries in police custody.

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Seven-Year-Old Delhi Schoolgirl Raped

A seven-year-old girl has reportedly been raped at a government school in northwest Delhi, Indian media reports.

The Times of India newspaper said the attack happened in the Mangolpuri area of the city.

The girl's parents informed police after the injured child was taken to hospital.

It is understood a school guard has been detained and other staff at the facility, run by the Municipal Corporation of Delhi (MCD), are being questioned.

The paper said protests erupted in the community among people angry at police inaction.

More follows ...

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Australia: Huge Meth Bust Is Record Seizure

By Jonathan Samuels, Australia Correspondent

Australian police have made their biggest ever haul of methamphetamine after seizing more than half a ton of the illegal drug - worth around £300m.

A total of 585kg of the substance - known as 'ice' or 'crystal meth' - was smuggled into Sydney hidden in shipments of chemicals from China.

Almost double the previous Australian record of 306kg, police say the quantity would have sold for $438m AUS (£297m).

Three men - an Australian, a Singaporean and a Hong Kong passport holder - have been charged with attempting to possess the drug. They were all refused bail at a Sydney court - and face life sentences if convicted.

Police said methamphetamine was "the sort of drug that sends people mad"

New South Wales Police Commissioner Andrew Scipione said: "There's over half a ton of hideous drugs that were taken off the streets with a street value approaching half a billion dollars - hundreds of millions of dollars.

"There are three people that have been arrested and will be prosecuted. There are more that will likely be arrested."

Police were alerted to the major drug smuggling operation by a telephone call from a member of the public.

"That one phone call was the one thread that allowed us to pull and unravel a syndicate that will be stopped forever," said Mr Scipione.

The police investigation began in September last year in response to the tip-off.

Law enforcement officers found 38 bags of the drug

Police and customs officers were directed to four suspicious shipping containers in a Sydney wharf, which had come from the port city of Shen Zhen in China.

Inside officers found the huge drugs haul, hidden amongst a shipment of chemical cleaner.

They substituted the drugs with a harmless substance then allowed the consignment to be delivered to their original address.

Australia is becoming an increasingly lucrative market for international drug networks because of the strength of the local currency and resilience of the national economy compared to other wealthy nations.

New South Wales police commissioner Andrew Scipione, said it was "very fortunate that somebody took the time to make that phone call".

"This is the sort of drug that sends people mad," he said.

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South Africa: 'Man Dragged Behind Police Van'

A taxi driver in South Africa died after being handcuffed to a police vehicle and dragged hundreds of yards, it has been alleged.

Independent police investigators are looking into the claims after video footage emerged showing a man being dragged along a road behind a police van.

The man, a 27-year-old from Mozambique, was later found dead in a police cell in Daveyton, Johannesburg, on Tuesday.

Officers have claimed they put the taxi driver in a police van in order to take him to a police station on the East Rand, and cannot explain how he later died.

But the video, obtained by South Africa's Daily Sun newspaper, shows officers struggling to overpower a man - believed to be the taxi driver - before attaching him to a point at the rear of their vehicle and then driving off leaving him hanging outside.

Officers are seen restraining the man and handcuffing him to the van

At one point they attempt to carry his legs while the vehicle is moving forward but have to drop him as the police van speeds up.

The footage then shows the man trying to stay on his feet as he is dragged behind the vehicle for several hundred metres.

The person filming the incident attempts to keep up with the truck dragging the taxi driver, but has to give up as the vehicle is going too fast.

The van then starts to move away with the man hanging on

South Africa's Independent Police Investigation Directorate (IPID) said on Wednesday that officers had initially attempted to arrest the man because he was allegedly obstructing traffic.

IPID spokesman Moses Dlamini said: "We are investigating an incident involving the death of man, allegedly at the hands of the police. We are shocked by the footage which has been released.

"The circumstances surrounding his death are still allegations ... let's find out what really happened," he said.

At one point they lift his legs but have to let go when the van speeds up

He said there were reports the man had tried to disarm a police officer before the attack.

The taxi driver was then allegedly beaten once inside the police holding cells.

He is understood to have been found dead by another police officer later the same day.

Mr Dlamini told the South African website News 24 that an investigation had begun before the man's death into allegations he carried out an assault resulting in grievous bodily harm.

A post-mortem on the dead suspect indicated he had died from head injuries with internal bleeding.

The van then starts to accelerate away and the suspect is dragged behind

Police in South Africa are known for heavy handedness when dealing with the public, and the police watchdog is handling numerous cases of police brutality.

The police department could not confirm if the officers had been suspended.

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Pope Benedict XVI's Papacy Enters Final Hours

By Sally Arthy, Senior News Editor, Rome

Pope Benedict XVI's tenure as leader of the world's Catholics will draw to a close later today.

The 85-year-old stands down as Pontiff after nearly eight years and at a time when the Church is mired in controversy.

This morning, more than 100 cardinals said their farewells to the Pope at a gathering in the Clementine Hall in the Apostolic Palace.

In an unexpected speech, he promised "unconditional reverence and obedience" to his successor during the gathering and urged his cardinals to work in unity as they select the next pope.

The Pope waves from his 'popemobile' at the end of his last weekly audience

Just before 4pm UK time, Benedict will leave his apartments for the last time, give his thanks to the senior staff who have been by his side during his papacy, and then make his way to the Vatican helipad.

From there he will fly to Castel Gandolfo - the Pope's retreat on the outskirts of Rome.

Then, at around 4.30pm, he will make his last brief appearance on a balcony in front of an expected crowd of around 7,000 before withdrawing from public life for good.

At 7pm the doors of the villa will close and the Swiss Guard will stand aside marking the end of Benedict's papacy.

From then on he will be known as Emeritus Pope and devote his days to prayer and meditation.

Once renovations are complete, Benedict will move to a monastery in the grounds of the Vatican.

He will have the official title of "pope emeritus" and can still wear a white cassock normally reserved only for pontiffs, but without a doubled shoulder cape.

Spokesman Frederico Lombardi said he has chosen to swap his trademark red shoes for a brown pair given to him by artisans in Mexico during a trip last year.

Edward Pentin, from the Catholic Herald, said Benedict will live a monk's life and not interfere in the work of his successor.

The next Pope will be chosen by secret ballot during the conclave of eligible cardinals who will vote in the Sistine Chapel.

Pope Benedict XVI's departure from the Vatican sets in motion a timetable of centuries-old traditions in what is an unprecedented resignation in modern Catholic history.

After 7pm on Thursday, the Catholic Church enters a period known as "Sede Vacante" (vacant See) during which a senior cardinal takes over interim powers until a new pope is elected.

That cardinal, referred to as the camerlengo or chamberlain, will be Italy's Tarcisio Bertone.

The camerlengo has traditionally had the role of officially certifying the death of a pope - once carried out by tapping the pontiff's forehead three times with a special silver hammer and calling out his birth name.

He is also charged with destroying the Fisherman's Ring - a gold signet ring specially cast for each new pope - which symbolises the end of a papacy.

From Monday, cardinals from around the world will hold a series of meetings known as general congregations.

The meetings are aimed at identifying priorities for the Roman Catholic Church for the future, but are also a good way of vetting possible candidates for next pope.

The cardinals then meet in a secret conclave to choose the next pope under a system adapted in the 13th century.

All conclaves have been held in the Sistine Chapel and the cardinals are sworn to absolute secrecy under pain of ex-communication during voting.

Two ballots are held in the morning, and two in the afternoon, until one candidate wins two-thirds of the votes.

At the end of each session, the ballots are burned in a stove by the chapel, releasing smoke above the Apostolic Palace. The smoke is black after each unsuccessful ballot, white once the vote succeeds.

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Pistorius: Reeva's 'Last Text' Home Revealed

Reeva Steenkamp sent a text to her flatmate on the night she was shot dead, saying she would not be driving home because it was "too late".

Gina Myers, who shared a home with Miss Steenkamp in Johannesburg, told Sky News' Alex Crawford that the text was the last message she received from her friend.

Miss Myers said she had met Oscar Pistorius, who is accused of murdering his 29-year-old girlfriend at his luxury home in Pretoria, a few times and did not know him well but had liked him.

She said Miss Steenkamp had been happy with the gold medal winning Paralympian and would not have been with him otherwise.

She told Sky News: "It was like any other relationship. There was nothing that flashed a warning sign. She was happy. She was very happy.

"Reeva was not the kind of person to complain about stuff but she would never have been with anyone if she wasn't happy ... Her motto this year was 'to be happy and never settle'."

Miss Myers was speaking as it emerged that Pistorius held a private memorial service for Miss Steenkamp at his uncle's house in Pretoria.

The South African athlete has been staying at his uncle Arnold's house since he was released on bail last Friday after being charged with the model's murder.

Reeva Steenkamp was "happy" with her boyfriend Oscar Pistorius

His aides confirmed plans for a memorial service for Miss Steenkamp after details were leaked to the media.

The 26-year-old, who also competed in the Olympics last summer, denies murder and claims he shot Miss Steenkamp by mistake believing she was an intruder.

A statement from his representatives said: "Oscar Pistorius, will hold a private memorial service for Reeva Steenkamp at the house of his uncle, Arnold Pistorius tonight.

"Oscar specifically requested the memorial service as he continues to grieve and remains in deep mourning for the loss of his partner Reeva."

It added: "Since it is such a sensitive issue, Oscar has asked for a private service with people who share his loss, including his family members who knew and loved Reeva as one of their own."

Miss Steenkamp's funeral was held in Port Elizabeth last week, as her boyfriend appeared in court over her murder and insisted her death was an accident.

Reeva Steenkamp's funeral was held last week

He was released on bail but has to abide by strict conditions, including reporting to a police station in Pretoria twice a week.

The athlete was also ordered to surrender his two passports, post bail of one million rand (£75,000) in cash and guarantees, and refrain from drinking alcohol until his case resumes on June 4.

Pistorius was also ordered to hand in any guns he owns and keep away from his home in a gated community in Pretoria, which is now a crime scene.

Prison service officials can drop in at his uncle's house at any time of day or night to ensure the athlete is complying with the bail terms.

Pistorius, who had his lower legs amputated at the age of 11 months after he was born without either fibula, rose to global fame with his fight to be allowed to run in the Olympics against able-bodied athletes.

He reached the semi-finals of the 400 metres at last year's London Games.

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Large Shark Kills Swimmer Off New Zealand

By Jonathan Samuels, Australia Correspondent

A man has been killed in a rare great white shark attack off the coast of New Zealand.

Police and lifesavers recovered the man's body on Wednesday afternoon at Muriwai, a popular surfing beach near the city of Auckland, which has been closed.

Witness Stef McCallum, 18, said about 200 people were on the beach at the time. 

She saw a police officer go out in a surf lifesaving boat and fire "about 20" shots into the water at the shark.

"Everybody was evacuated from the water. Word of mouth, 'shark', and everybody left the water," she said. A fellow beachgoer had told her "there was a big pool of blood in the water".

Another witness Pio Mose claimed he saw three sharks.

Mr Mose said: "He just shouted 'Shark!' and he was rolling around and then there was blood on the water. We saw three sharks and he was rolling around..."

Another witness told television station 3 News NZ that he spotted the lone swimmer while he was fishing at the beach.

Police in a helicopter directed inflatable boats to the scene

The distressed man signalled for help when he was attacked, before he was pulled underwater. At this point, the witness said three or four other sharks appeared in the area.

A St John ambulance spokeswoman told the AFP news agency the victim was 47 years old. Inspector Matt Sillars said his body has been recovered.

"We're not sure at this stage whether or not the deceased died prior to the shark arriving on the scene, or whether the shark was a contributing factor towards the death," he said.

Insp Sillars said police shot the shark and they are making attempts to retrieve it. It is understood the man was a local and his family gathered at the scene.

As many as 200 people were on the beach at the time of the attack

People embraced in the surf club car park and were escorted into the club, the New Zealand Herald reported.

Earlier this week, surfer Bourne Nobel Buiski posted on Facebook that there had been a "massive" shark spotted near surfers on Monday at Piha, 14 kilometres south of Muriwai.

He said that a local man ran out of the water "white faced and terrified".

"He was saying that a great white, a massive great white had just swum right beside him," Mr Buiski said. No one believed him, he said. "As they are so rare here. There were about 60 people there, and no one came in."

Fatal shark attacks are relatively rare in New Zealand with just over a dozen deaths since record-keeping began in the 1830s.

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Several Dead In Swiss Factory Shooting

Several people have been killed and others seriously injured during a shooting at a factory in the Swiss town of Menznau, according to police.

Swiss police say the shooting occurred at a wood processing company called Kronospan about 9am local time.

Emergency services are at the scene and the area has been largely cordoned off.

Swiss news agency SDA quoted the rescue helicopter service REGA as saying it had flown four seriously injured people to hospital.

Last month, a gunman killed three women and wounded two men in the Swiss village of Daillon, stirring a debate about Switzerland's gun laws.

Male citizens in Switzerland are allowed to retain guns after their mandatory military service.

There is no national gun register in the country, but some estimates indicate that at least one in every three of Switzerland's eight million inhabitants keeps a gun, many stored at home.

Citizens outside the military can apply for a permit to purchase up to three weapons from the age of 18.

More follows...

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Markets Dive Amid Italian Election Stalemate

World markets have been rocked after elections in Italy seen as crucial for the eurozone ended in deadlock.

No group emerged as a clear winner after the vote, which saw a populist anti-austerity party make a stunning debut.

The Italian stock market fell 5% on opening and state borrowing costs rose as investors took fright at the political stalemate.

London's FTSE-100 was down 1.4% in early trading, Germany's DAX 2.1%, the Spanish IBEX 3.4% and the CAC in France more than 2.5%.

Comic Beppe Grillo's protest party appears the real winner

Banking stocks were particularly badly hit, although some of the damage was erased after the initial plunge in prices.

The euro also fell to an almost seven-week low against the dollar in Asia on fears about the eurozone debt crisis, down as far as $1.3042, its lowest since January 10.

The market reaction reflects concerns that the election result could spark a new crisis in Italy, which has the eurozone's third largest economy.

Pier Luigi Bersani's centre-left bloc has a majority in the lower chamber

There are fears it will jeopardise tough reforms required to heal its economic woes and prevent a new round of global financial turmoil.

The centre-left block of Pier Luigi Bersani will have a majority in the lower house thanks to a premium of seats given to the largest block in the chamber.

In the upper house, the Senate, seats are awarded on a region-by-region basis. Here, the centre-left looks set to end up with around 119, compared to 117 for the centre-right but 158 are needed for a majority to govern.

Any coalition government that may be formed must have a working majority in both houses to pass legislation, which means Italy is now in a state of limbo with a hung parliament that is unprecedented in its post-war history.

"It is clear to everyone that this is a very delicate situation for the country," Mr Luigi Bersani said.

Former prime minister Silvio Berlusconi has already indicated his centre-right could be open to a grand coalition with the centre-left under Mr Bersani but he wants a recount for the Senate vote.

"Italy cannot be left ungoverned, we have to reflect," he said, describing the market reaction as "a bity crazy" and saying all sides had to "sacrifice something" if the impasse was to be broken.

An ally of conservative German Chancellor Angela Merkel urged Italy to stick with reforms pursued by the outgoing technocratic emergency government of Mario Monti.

But the poor showing by Mr Monti's centrist bloc, which took just 10.6%, showed a weariness with austerity that was exploited by both Mr Berlusconi and comic Beppe Grillo.

Silvio Berlusconi did better in the Senate

The latter's anti-establishment 5-Star Movement won more votes than any other party, taking 25% nationally.

In just three years, the 5-Star Movement - heavily backed by a frustrated generation of young Italians increasingly shut out from permanent full-time jobs - has grown from a marginal group to one of the most talked about political forces in Europe.

Comparing single parties without coalitions, it is now the biggest party in the lower house with 25.55% to the Democratic Party's 25.41% - a shock success that analysts predicted would reverberate around an austerity-weary Europe.

"The 'non-party' has become the largest party in the country," said Massimo Giannini, commentator for the Rome newspaper La Repubblica about Grillo, who mixes fierce attacks on corruption with policies ranging from clean energy to free Internet.

"This is fantastic! We will be an extraordinary force!" Mr Grillo said on his website, warning mainstream politicians they would "only last a few more months".

"We'll have 110 people in parliament and we'll be millions outside."

Mr Monti said: "It's not that surprising if you consider how much people were let down by politics in its traditional forms."

Some Democratic Party officials suggested fresh elections may have to be held within a few months after a reform of Italy's complex electoral laws. Others said some form of agreement could be found with the anti-austerity 5-Star Movement.

Political analysts suggested a possible return to the grand coalition agreement between right and left seen over the past 18 months, or even dissolving the Senate alone to hold fresh elections for only one chamber of parliament.

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Two Britons Killed In Egypt Balloon Explosion

Two Britons are among 18 foreign tourists who died when a hot air balloon crashed near the Egyptian city of Luxor, tour operator Thomas Cook has confirmed.

Two other Britons are in hospital in critical condition following the crash, Thomas Cook added.

"What happened in Luxor this morning is a terrible tragedy and the thoughts of everyone in Thomas Cook are with our guests, their family and friends," said Thomas Cook UK & Continental Europe CEO Peter Fankhauser.

"We have a very experienced team in (the) resort with the two guests in the local hospital, and we're providing our full support to the family and friends of the deceased at this difficult time."

Officials said the balloon, which was carrying 21 people and flying at 1,000ft, caught fire and exploded during a trip at sunrise.

The site at Luxor 40 minutes before the crash (Pic: @chrismichel)

It plunged into sugar cane fields as it travelled over Qurna, in Luxor's West Bank.

French and Japanese nationals, as well as nine tourists from Hong Kong, are believed to be among other casualties.

Dr Hany Sabry, from Luxor International Hospital, told Sky News that one of the injured passengers suffered multiple fractures and internal bleeding.

He added that the second injured passenger remains under observation in the intensive care unit.

The balloon's pilot is also believed to have survived the crash.

An employee at the company operating the balloon, Sky Cruise, said two people in the balloon survived by jumping from the basket before it hit the ground.

Witness Christopher Michel was travelling in one of several balloons in the air above Luxor early on Tuesday morning.

He told Sky News: "I was in one of about eight balloons that were flying that morning. We were approaching landing ... coming down in a remote field just outside of Luxor.

"We heard a loud explosion behind us, and I looked back and saw lots of smoke. It wasn't immediately clear that it was a balloon. We were surrounded by the balloons that had been flying with us.

"Then we could see the reaction of the pilot on the balloon and he said that this hasn't happened in a long time."

Ballooning in Luxor is very popular with tourists visiting its temples

The Foreign Office said it was aware of the reports about the possibility of British casualties. "We are making inquiries," a spokesman said.

Hot air ballooning is popular with tourists who go to Luxor to visit its ancient temples and the tombs of the Valley of the Kings.

But the activity is not without its dangers. In April 2009, 16 people were hurt - including two British women - when a balloon crashed during a tour of Luxor.

The balloon was believed to have hit a mobile phone transmission tower near the banks of the Nile.

Following the 2009 crash, early morning hot air balloon flights over the Valley of the Kings were suspended for six months while safety measures were tightened up.

During the break, all 42 pilots from the eight companies who operate flights had extra training.

A notice on the Foreign Office website warns tourists: "There were three serious hot air balloon accidents in Luxor in 2009. You should consider the operator's safety arrangements carefully."

Egypt's tourism industry has suffered a sharp downturn in visitor numbers since the 2011 uprising that toppled President Hosni Mubarak, with two years of political instability scaring off foreign tourists.

Thomas Cook UK has opened a hotline for families who have relatives in Egypt: 0800 107 5638.

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Iran Nuclear Talks: World Powers To 'Make Offer'

By Lisa Holland, Foreign Affairs Correspondent

World powers are meeting Iranian nuclear negotiators in Kazakhstan for the first time in eight months.

It is understood there will be what diplomats are calling a "new offer" to the Iranians to try to make progress in the stalled nuclear stand-off.

A senior diplomat said: "We will take an offer with us. It is substantial and serious and will involve significant new elements."

Tehran insists its nuclear programme is for civilian energy and medical research.

The European Union and members of the UN Security Council including the US suspect Iran has a covert atomic weapons programme.

Washington and Brussels have adopted a dual-track approach to Iran - pursuing nuclear talks while pressing sanctions to try to force Tehran to make a deal.

A US proposal for a one-on-one meeting with Iran on the sidelines of the talks in the Kazak city of Almaty remains on the table.

President Mahmoud Ahmadinejad has defied Western pressure

The diplomat told Sky News: "Iran has a great deal to gain from the talks. It wants sanctions lifted. The talks present an opportunity to re-shape relations.

"The prize is a great one, but the negotiations are difficult and complex. We have a good offer. We hope the Iranians will respond positively."

Negotiators hope the Almaty talks will give them some sense of whether the Iranians have any interest in genuinely pursuing diplomacy.

The diplomat said: "We have to be patient and make sure when the Iranians reach a point when they want to do a deal we are at the table."

Iran has seen elevated levels of inflation. Some suggest it is at 27%, while others think it could be double that.

The UN has passed six Security Council resolutions on Iran, and diplomats hope that the economic impact of sanctions will force the Iranians to re-think their stance against the West.

The Western thinking is that the centrifuges may keep spinning but the sanctions keep biting.

It has been more than half a year since the last round of talks with countries known as the E3 + 3 -  the US, France, Britain, Germany, China and Russia.

There has been anxiety about a possible military strike on Iran's nuclear facilities by Israel.

Israel's Benjamin Netanyahu discusses Iran at the UN in September 2012

Iran is still expanding its nuclear programme with the installation of more advanced centrifuges which will multiply its enrichment capability.

But Iran has also reportedly converted some of its medium-enriched uranium into fuel plates for its medical reactor, making it harder to convert that material into bomb-grade fuel, and is slowing down its accumulation of what is known as 20% enriched uranium.

A new report by the international nuclear watchdog IAEA suggests that Iran has a stockpile of 167kg of 20% enriched uranium.

The 20% enriched uranium is seen as the barometer for proliferation concern as it could relatively quickly be further enriched into weapons-grade fissile material.

At the time of the last IAEA report three months ago, Iran had a stockpile of nearly 135kg of 20% uranium.

According to the watchdog, this means that Iran's 20% stockpile has increased by 32kg in the past three months - a growth rate of under 11kg a month.   

At that rate Iran could take more than six months to reach a red line laid down by Israel of 240kg - which is in theory enough to make one nuclear warhead, if further enriched.

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Oscar Pistorius Due At Pretoria Police Station

Oscar Pistorius is due to appear at Pretoria police station as a condition of his bail.

It will be the Paralympian's first public appearance since he was granted bail on Friday.

He denies the premeditated murder of his girlfriend Reeva Steenkamp at his Pretoria home on Valentine's Day.

Pistorius claims he killed the 29-year-old model accidentally, mistaking her for an intruder.

The athlete must sign in at Brooklyn police station - where he had been held for more than seven days during his bail hearing - twice a week as part of his bail conditions.

Officials at Pretoria Magistrates' Court said Pistorius was expected to attend the police station by 1pm (11am UK time).

The double amputee has also had to hand in his two South African passports and his guns, and is also obliged to stay away from the estate where he lived.

Reeva Steenkamp's funeral took place last Tuesday

He is banned from contacting any witnesses and from drinking alcohol and has been staying with his uncle Arnold since he was released on bail.

Magistrate Desmond Nair set bail at one million rand (£73,000) and postponed the case until June 4.

On Sunday it emerged his older brother, Carl, who was a constant presence in court last week, is himself facing trial over the death of a woman.

Carl Pistorius is charged with culpable homicide over the death of a woman motorcyclist in a traffic accident in 2008.

The case has no relation to the charges against Oscar Pistorius.

It is the second time someone associated with the Pistorius case has been found to face a serious charge that has been dropped and then reinstated.

It was revealed that the chief police investigator in the case is facing charges of seven counts of attempted murder for shooting at a vehicle with seven passengers.

Following the revelations, Hilton Botha was removed from the Pistorius investigation and a new chief detective - Lieutenant General Vineshkumar Moonoo - was appointed on Thursday.

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South Korea's First Female President Sworn In

Park Geun-Hye has become South Korea's first female president, demanding North Korea "abandon its nuclear ambitions" immediately at her inauguration.

Taking the oath of office less than two weeks after Pyongyang carried out its third nuclear test, Ms Park -  the daughter of late military strongman Park Chung-Hee - called on the regime to rejoin the global community.

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

"I will not tolerate any action that threatens the lives of our people and the security of our nation.

"I will move forward step by step on the basis of credible deterrence."

A traditional dance troupe performs at the inauguration

The mood of the two-and-a-half hour ceremony in a chilly Seoul was lightened when pop sensation Psy starred in a musical warm-up.

He performed his global hit Gangnam Style, and children and the elderly alike joined him as he did the horse-riding dance he made famous in the song's video.

Ms Park's election in December was an important moment for women in South Korea, who on average earn nearly 40% less than men.

The 61-year-old takes office a little more than 50 years after her father, a vehement anti-communist, seized power in a military coup.

Ms Park's election was an important moment for women in South Korea

Park Chung-Hee ruled with an iron fist for the next 18 years until his assassination.

He remains a divisive figure - credited with dragging the country out of poverty but reviled for his regime's human rights abuses.

Park Chung Hee was assassinated

At 22, Ms Park cut short her studies in Paris to return to Seoul and act as the country's first lady after an assassin targeting her father instead killed her mother.

Ms Park left the presidential Blue House five years later, in 1979, after her father was shot and killed by his spy chief during a drinking party.

Becoming the leader of Asia's fourth-largest economy, Ms Park faces challenges of slowing growth and soaring welfare costs.

The bulk of Ms Park's inauguration speech focused on the economy, and included commitments to job creation and expanded welfare, as well as the promise of a miracle.

South Korea's extraordinary economic revival from the rubble of the 1950-53 Korean War - known as the "Miracle on the Han" - has faltered in recent years, with key export markets hit by the global downturn.

Ms Park promised another miracle, saying her administration would build a new "creative economy" that would move beyond the country's traditional manufacturing base.

"At the very heart of a creative economy lie science and technology and the IT industry, areas that I have earmarked as key priorities," she said.

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Horsemeat Discovered In Ikea Meatballs

Inspectors have found horsemeat in meatballs produced in Sweden for Ikea, the world's biggest furniture retailer.

The Czech Republic's state veterinary administration - which made the discovery - said the 1kg packs of frozen meatballs were labelled as beef and pork.

A total of 760kg of the meatballs were stopped from reaching shelves within the country.

A spokesman for the institute said he did not know whether the meatballs were distributed in other European countries.

The checks were carried out in response to a European-wide scandal that erupted last month when tests carried out in Ireland revealed some beef products also contained horsemeat.

Traces of horsemeat were found in meals sold by several British retailers.

The European Union's agriculture ministers gathered in Brussels Monday to discuss the widening scandal's fallout, with some member states pressing for tougher rules to regain consumer confidence.

The 27-nation bloc must agree on binding origin disclosures for food product ingredients, starting with a better labelling of meat products, German agriculture minister Ilse Aigner said.

"Consumers have every right to the greatest-possible transparency," she said.

More follows...

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