The Democrat party's Apirak Kosayodhin won

The Democrat party's Apirak Kosayodhin won a sweeping victory in yesterday’s Bangkok governor election, polling more than 991,000 votes and bettering his result of four years ago.

He won nearly twice as many votes as his rival Prapas Chongsa-nguan of the People Power party.

Mr Apirak was seeking a second term and was re-elected for another four years. Four years ago, he won the race with 911,441 votes.

Unofficial voting results late last night showed Mr Apirak gained 991,081 votes, representing 45.93 per cent of voters who went to the polls, followed by Mr Prapas with 543,488 (25.19 per cent), Chuwit Kamolvisit with 340,616 (15.79 per cent), Kriengsak Charoenwongsak with 260,051 (12.05 per cent), and Leena Jangjanja on 6,267 (0.29 per cent).

Turnout for the election was 54.18 per cent or 2,214,320 votes out of 4,087,329 eligible voters, according to the Election Commission. The EC earlier expected turnout to be about 70 per cent. In the previous election four years ago, turnout was 62.5 per cent.

Mr Apirak is the second governor after former Bangkok governor Chamlong Srimuang to be elected for a second consecutive term.

Mr Apirak yesterday claimed success as governor in pushing for the 2.2km extension of the skytrain to be built across the Chao Phraya river with City Hall money.

He said his victory resulted from his work in the social and environmental area.

Democrat leader Abhisit Vejjajiva called on the government to work closely with Mr Apirak despite the Democrats being an opposition party. "I hope the government would be broad-minded," said Mr Abhisit, adding that Prime Minister Somchai Wongsawat had promised to give financial support to the Bangkok governor no matter what party he came from.

According to surveys by Suan Dusit Rajabhat University, voters hope he will carry on with many projects he has introduced in the past four years as Bangkok governor.

They also want the next governor to solve Bangkok problems including traffic congestion.

Obama rejects terror link 'smear'

Obama rejects terror link 'smear'

Barack Obama says his opponents are trying to "distract with smears"
US Democratic presidential nominee Barack Obama has hit back at claims by his Republican rival that he associated with "terrorists".

Mrs Palin said Senator Obama had been "palling around" with an ex-member of 1960s US-based militant group.

Mr Obama said the Republicans were out of touch and trying to distract voters from the real issues.

Alaska Governor Palin has defended the remarks, which she made several times, saying it was "fair to talk about".

At campaign stops in Colorado and California over the weekend, Mrs Palin attacked Senator Obama over his link to Bill Ayers, a founder of the Weather Underground movement.

The radical movement waged a violent campaign against the Vietnam War during the 1960s when Mr Obama was a child.

Mrs Palin described Mr Obama as someone who saw the US "as being so imperfect... he is palling around with terrorists who would target their own country".

In the 1990s, Mr Ayers hosted a Democrat campaign event at his home, attended by Mr Obama.

Mr Obama accused the McCain campaign of engaging in "swift boat" politics - a reference to a campaign of attacks on John Kerry's military record during the 2004 presidential campaign.

'Out of ideas'

Mr Obama once served on a charity board with Mr Ayers but the White House hopeful has denied having any close association with him or his views and has denounced the Weather Underground group.


Mrs Palin said the issue was fair to talk about

He has described Ms Palin's comments as offensive and false.

The Illinois senator told his supporters at a rally in North Carolina that John McCain was "gambling that he can distract you with smears rather than talk to you about substance".

"They'd rather tear our campaign down than lift this country up," he said.

"That's what you do when you're out of touch, out of ideas, and running out of time."

The party has accused the Republicans of gutter politics.

Ohio Senator Sherrod Brown said that the last few weeks had seen Mr McCain "morph into a desperate angry candidate" and that it made him sad that the McCain campaign was "resorting to these tactics".

Commentators say Mrs Palin's attack forms part of a broader Republican strategy to attack Mr Obama's character.

Turnout vital

The Obama campaign responded with a new advertisement, which will air nationally on cable TV stations, claiming Mr McCain has behaved erratically during the Wall Street meltdown.




Weathermen: Home-grown radicals

The commercial says Mr McCain is attacking Mr Obama personally to distract voter attention from the loss of 750,000 American jobs this year and continuing financial turmoil.

"And John McCain?" the advertisement asks, before answering: "Erratic in a crisis. Out of touch on the economy."

Mrs Palin has defended her comments, saying they were "about an association that has been known but hasn't been talked about".

"I think it's fair to talk about where Barack Obama kicked off his political career, in the guy's living room."

Minnesota Governor Tim Pawlenty, a Republican, said the issue was a test of Mr Obama's character.

"It goes to the issue of what kind of judgment would allow an unrepentant domestic terrorist to host a political event for you in his home," he told ABC News.

The row has dominated the media over the weekend and came ahead of a Monday deadline for voters to register in more than a dozen states, including Pennsylvania, Michigan, Ohio, Indiana and Florida.

The latest polls put Barack Obama ahead of John McCain but voter turnout could be vital in deciding the outcome of the 4 November presidential election.

The BBC's Rajini Vaidyanathan in Washington says that with a month to go until polling, the politics on both sides are expected to get much more personal.

Germany clinches bank rescue deal

Germany clinches bank rescue deal

Hypo's problems should have been revealed earlier, a minister says
Germany's finance ministry has agreed a 50bn euro ($70bn; £40bn) plan to save one of the country's biggest banks.

The deal, reached with private banks, to save Hypo Real Estate is worth 15m euros more than the first rescue attempt, which fell apart on Saturday.

Germany earlier announced an unlimited guarantee for all private savings, a move followed later by Denmark.

Meanwhile, French giant BNP Paribas has confirmed it has agreed to take over parts of ailing Fortis bank.

The Icelandic government, meanwhile, has been working through the night to try to shore up its entire banking system.

The country's banks have now agreed measures to stabilise its financial system, where last week the currency fell by a fifth against the dollar.

We tell all savings account holders that your deposits are safe. The federal government assures it

Angela Merkel

Germany's finance ministry said that with the "mutually agreed solution" Hypo Real Estate would be stabilised, and "Germany strengthened as a place to conduct finance in difficult times".

Earlier, German Chancellor Angela Merkel moved to reassure German savers that all their deposits would be safe.

Similar unilateral guarantees issued by the Irish and Greek governments last week were criticised in Berlin and other European capitals.

But after an emergency meeting with the central bank earlier, Ms Merkel said: "We will not allow the distress of one financial institution to distress the entire system. For that reason, we are working hard to secure Hypo Real Estate.

"We tell all savings account holders that your deposits are safe. The federal government assures it."

BBC business editor Robert Peston said the UK Treasury was attempting to clarify the details of Germany's guarantee to savers.

If the move does amount to a 100% government guarantee of all German savings deposits, other EU states - including the UK - would have to follow suit, says our correspondent.

The British chancellor, Alistair Darling, has said he is ready to take "pretty big steps that we wouldn't take in ordinary times" to assist the British economy.

Banks strained

On Saturday, leaders of Europe's four biggest economies - Germany, France, Britain and Italy - decided against a co-ordinated US-style bank bail-out, while vowing to stabilise markets.

The problems of Hypo Real Estate have put further strain on other financial institutions, which are struggling against a crisis of confidence in the global financial system.


Ms Merkel said bank managers had to be held accountable

Late on Sunday, French bank BNP Paribas confirmed that it had agreed to buy 75% of Belgium and Luxembourg holdings of the giant Fortis financial group, creating one of Europe's biggest savings banks.

The governments of Belgium and Luxembourg will in return take a minority stake in BNP Paribas.

The Dutch arm of Fortis has been nationalised by the Netherlands government.

Iceland's government is also reported to be considering a $14bn (£8bn) injection into the banking system, having bailed out the country's third largest bank, Glitnir, last week.

'Irresponsible'

Ms Merkel said that managers at financial institutions should be held accountable for "irresponsible behaviour".

Finance Minister Peer Steinbrueck accused Hypo Real Estate's managers of misleading the government over the true extent of bank's troubles.

European governments are as dazed and confused by the mayhem in the global banking system as most of the rest of us

Robert Peston
BBC business editor


Peston's view: Lost in translation
Send us your comments
Iceland shores up economy
But he said Berlin would do all it could to prevent the bank's collapse, to avoid "incalculably large" damage to Germany and financial services providers in Europe.

The BBC's Tristana Moore in Berlin said that the German move would be an undoubted relief for investors and sends an important message to the German public that banks will not be allowed to go under.

Analysts say the question remains as to how the markets will react when they open on Monday morning.

The initial signs were not encouraging as share-trading in Australia and New Zealand opened in decline.

Russia removes Georgia checkpoint

Russia removes Georgia checkpoint

About 12 EU patrols began operating on Wednesday
Russian troops have removed a key checkpoint from Georgian territory near the breakaway province of South Ossetia, European Union observers say.

The checkpoint, near the town of Gori, a gateway to the separatist region, is the first taken down by the Russians under a withdrawal pledge.

Russia has agreed to pull out troops from two buffer zones within Georgia by 10 October, under EU observation.

Russia and Georgia fought a 10-day conflict over South Ossetia in August.


See a map of the region
Russia has kept troops in South Ossetia - and Georgia's other breakaway region, Abkhazia - since ousting Georgian forces during the conflict.

Moscow has boosted security in South Ossetia in recent days following an explosion in the region which killed eight Russian soldiers and three civilians.

The chief of staff of what Russia calls its peacekeeping operation in the region was among those killed, Moscow said, accusing Georgian secret services of arranging the blast. Georgia denied the accusation. EU OBSERVERS IN GEORGIA
More than 200 unarmed observers from 22 EU nations
HQ in Tbilisi, with additional four field offices
Oversee Russia's pullout from "buffer zones" by 10 Oct
Deployed under a French-brokered peace deal
Mission's initial duration is 12 months

Some 200 EU observers from 22 nations are now on the ground overseeing the military's compliance, or otherwise, with pledges made by leaders at the Kremlin.

They reported the first signs of progress on Sunday morning at a checkpoint previously manned by 20-30 Russian soldiers.

"Our observers went to the checkpoint in Ali, north-west of Gori, and saw that it has been dismantled," and EU spokesman told the AFP news agency.

"This is the first dismantled checkpoint."

A regional police chief told Reuters the checkpoint was in the village of Nabakhtevi.

Tensions

The Russian pull-back was agreed in the ceasefire deal brokered by French President Nicolas Sarkozy.

But Russia plans to keep nearly 8,000 troops in Abkhazia and South Ossetia, which it has recognised as independent states.

Western leaders have condemned both the buffer zones and Russia's recognition of the two regions.

The EU wants its observers to have access to the breakaway regions, but Russia has repeatedly refused to guarantee that.

The fighting in the region began on 7 August when Georgia tried to retake South Ossetia by force after a series of lower-level clashes.

Russia launched a counter-attack and the Georgian troops were ejected from both South Ossetia and Abkhazia days later.

Suicide bomber strikes in Mosul

Suicide bomber strikes in Mosul

Eleven people have been killed during a American raid in the Iraqi city of Mosul in which a suicide bomber blew himself up, the US military says.

Three women and three children were among the dead at the private home, the US military said, adding that five "terrorists" had also died.

However, an official at a local morgue told the BBC most of the dead showed signs of bullet wounds.

Elsewhere in Mosul, four people were killed when gunmen attacked a funeral.

Three other people were wounded in the drive-by attack in the Zanjili district, the BBC's Hugh Sykes reports from Baghdad.

In September, three members of an Iraqi television crew and their driver were kidnapped and shot dead in the same neighbourhood.

'Last stronghold'

In a statement on the deadly explosion, US officials said troops had exchanged fire with armed men as they entered the building for what they described as an operation to capture a wanted man.

The morgue official dealing with the aftermath of the suicide bombing said one body bag contained fragments of human remains, consistent with the report that there was a suicide bomber at the house, our correspondent says.

US authorities confirmed that some of those who died could have been killed by gunshot wounds.

Following the blast soldiers later found weapons and explosives in the building, the statement said.

"This is just another tragic example of how al-Qaeda in Iraq hides behind innocent Iraqis," a spokesman said.

On Saturday US forces said they had killed a senior al-Qaeda bomb-maker and strategist in Baghdad.

Our correspondent says American forces have mounted many attacks this year against suspected al-Qaeda members in Mosul, which they describe as al-Qaeda's last stronghold.

India 'not a threat to Pakistan'

India 'not a threat to Pakistan'
By Barbara Plett
BBC News, Islamabad



Mr Zardari's remarks mark a radical break with the past
Pakistani President Asif Ali Zardari says India has never been a threat to Pakistan, and that militants in Indian-administered Kashmir are terrorists.

In an interview with the Wall Street Journal, he also seemed to acknowledge that his government has given consent to US air strikes in Pakistan.

The unorthodox views run counter to those held by Pakistan's military, which viewsIndia as a threat.

India and Pakistan have fought three wars but have made recent peace moves.

Deep suspicions

Pakistan's powerful military has long-defined India as an existential threat, and in the past it has given covert backing to the militants in Kashmir.

The two regional rivals did take part in a faltering peace process under the former president, General Pervez Musharraf.

But suspicions always ran deep, and relations have soured recently.

Mr Zardari's comments thus mark a radical break with the past.

The Wall Street Journal also reports that Mr Zardari acknowledged that the US was firing missiles at militant targets inside Pakistan with his government's consent.

"We have an understanding, in the sense that we're going after an enemy together," it quotes him as saying.

But the Pakistani army is adamant that coalition forces do not have permission for such cross-border raids.

These incursions have stoked enormous anger in Pakistan - and Mr Zardari's comments may do the same.

Obama attacks McCain health plans

Obama attacks McCain health plans
John McCain and Barack Obama (composite image)
Mr McCain is preparing for Tuesday's debate while Mr Obama campaigns

US Democratic presidential hopeful Barack Obama has attacked the healthcare plans of Republican rival John McCain at a rally in Virginia.

Speaking to some 18,000 people, Senator Obama described the Arizona senator's policy as "radical" and warned that millions of people could lose out.

A McCain spokesman rejected the claim, saying it was "a bald-faced lie".

Meanwhile, Mr McCain's running mate, Sarah Palin accused Mr Obama of "palling around with terrorists".

Speaking in Colorado, she was referring to Mr Obama's association with a former 1960s radical.

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Sarah Palin accuses Obama of associating with 'a domestic terrorist'

Mr McCain has left the campaign trail for Arizona, where he is preparing for Tuesday's second presidential debate.

Mr Obama's rally in Virginia came ahead of a Monday deadline for voters to register there and in more than a dozen other states, including Pennsylvania, Michigan, Ohio, Indiana and Florida.

The Obama campaign has signed up singers Bruce Springsteen and Jay-Z to play at events in Philadelphia and Detroit, as well as Ohio State University.

Voter turnout could be key in deciding the outcome of the 4 November presidential election.

Healthcare claims

The Obama campaign launched its attack on Mr McCain's healthcare proposals with new adverts on TV and radio and leaflets sent to homes in every battleground state.

Mr McCain has proposed tax credits to help more people pay for health insurance, while Mr Obama wants to bring about universal coverage by providing subsidies to make it more affordable.

Joe Biden and Sarah Palin at the debate in Missouri
Record numbers watched Joe Biden and Sarah Palin in the VP debate

Speaking at the rally in Newport News, Virginia, Mr Obama said Mr McCain's promise of tax credits to help pay for health insurance would be paid for by taxing people's health benefits.

He warned that this would raise costs for employers, leading many to abandon their schemes.

He said: "Study after study has shown, that under the McCain plan, at least 20 million Americans will lose the insurance they rely on from their workplace."

McCain campaign spokesman Tucker Bounds rejected Mr Obama's claim as a lie.

"John McCain will improve the tax code so that middle-class pay cheques aren't used to pay government bureaucrats but instead will pay for the access to healthcare Americans deserve," Mr Bounds said.

Research suggests the tax credit Mr McCain proposes would be more generous than the current tax break, the Associated Press reports.

Opinion polls suggest healthcare is an important issue for voters.

Militant group

Mr McCain's running mate, Alaska Governor Palin, was to campaign in California on Saturday.

Speaking to supporters in Colorado, she attacked Mr Obama over his link to Bill Ayers, a founder of the militant group Weather Underground, which took credit for a number of bombings in the US in the 1960s.

She described Mr Obama as someone who saw the US "as being so imperfect... he is palling around with terrorists who would target their own country".

Mr Obama, who served on a charity board with Mr Ayers - now a professor at the University of Illinois - several years ago, has denounced his radical activities.

Commentators say Mrs Palin's attack forms part of a broader Republican strategy to attack Mr Obama's character.

The Alaska governor also repeated her wish that the McCain campaign had not this week pulled out of the battleground state of Michigan, effectively conceding it to Mr Obama.

Meanwhile, viewing figures show a record 69.9m people tuned in to watch Mrs Palin take part in Thursday's televised vice-presidential debate with Democratic nominee Joe Biden.

That number eclipsed the mark set in 1984, when 56.7m people watched Geraldine Ferraro, the only previous female US vice-presidential candidate, go head-to-head with George Bush Senior.

Man 'torches in-laws' in Austria

Man 'torches in-laws' in Austria
Map

An Austrian man has been arrested on suspicion of burning his in-laws to death with a home-made flame-thrower.

Police said the 48-year-old used a propane gas container to torch the elderly couple as they lay in bed in the village of St Magdalena am Lemberg.

The bed-ridden woman, who had lost both her legs to diabetes, died where she lay but her husband was found in the garden having tried to escape.

Police said the suspect's wife was in the house but escaped through a window.

The suspect fled the scene but was found later having stabbed himself in the stomach, said police.

Chief investigator Anton Kiesl said the man was being kept in hospital in an induced coma. The suspect's motives were not immediately clear.

Kim Jong-il 'at football match'

Kim Jong-il 'at football match'
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Kim Jong-il has not been seen in since mid-August

North Korea's leader Kim Jong-il is reported to have made his first public appearance since rumours surfaced that he had suffered a stroke.

Mr Kim attended a student football match in Pyongyang, state media said.

The 66-year-old leader had not been seen since mid-August. US and South Korean officials said he had suffered a stroke and undergone brain surgery.

Mr Kim did not appear at a 9 September anniversary parade, but North Korean officials denied he was ill.

North Korea's state news agency, KCNA, reported that Mr Kim watched a football game to commemorate the 62nd anniversary of Kim Il-Sung University, named for his father, the founder of North Korea.

Kim Il-Sung University was reported to have beaten Pyongyang University of Railways 4-1.

The report did not say what day the game had taken place but the anniversary of Kim Il-Sung University is 1 October.

No-one has been named to succeed Mr Kim as leader.

His reported illness has come at a difficult time in international negotiations over North Korea's nuclear programme.

North Korea agreed last year to give up its nuclear programme in return for aid and diplomatic concessions but the deal has floundered in recent months.

there is No banks bail-out fund for Europe

No banks bail-out fund for Europe

Nicolas Sarkozy: Each government will act in a co-ordinated manner

Europe's biggest economies have agreed to work together to support financial institutions - but without forming a joint bail-out fund.

French President Nicolas Sarkozy hosted the meeting of the leaders of Britain, Germany and Italy in Paris.

They agreed to seek a relaxation of the EU rules governing the amount of money individual states could borrow.

Mr Sarkozy announced a series of other measures - including unspecified action against the executives of failed banks.

Speaking after the meeting at a joint news conference, he said the four had agreed that the leaders of a financial institution that had to be rescued should be "sanctioned".

Mr Sarkozy added: "Each government will operate with its own methods and means, but in a co-ordinated manner."

Gordon Brown: We're doing everything that we can

Leaders were reminded of just how serious the crisis is as talks to rescue Germany's second largest mortgage lender collapsed.

Hypo Real Estate said the 35bn euro (£27.8bn, $51.21bn) deal had fallen apart after the banking consortium involved pulled out. The lender said it would seek to stay in business through "alternative measures".

Meanwhile, Mr Sarkozy suggested EU budget rules - requiring eurozone states to keep their budget deficits below 3% and overall public debt below 60% of gross domestic product - would be adapted to deal with the current "exceptional circumstances".

European Commission President Jose Manuel Barroso agreed that the budget rules would be applied with "flexibility".

European Central Bank chief Jean-Claude Trichet and the chairman of the eurozone group of finance ministers, Jean-Claude Juncker also attended the summit.

The leaders issued a joint call for a G8 summit "as soon as possible" to review the rules governing financial markets.

Ireland reproach

UK Prime Minister Gordon Brown said governments would continue to take measures to ease the credit shortage.


It has to be indicated to the markets... that European countries will not react as every man for himself
Dominique Strauss-Kahn, IMF head

Send us your comments
"The message to families and to businesses is that, as our central banks are already doing, liquidity will be assured in order to preserve confidence and stability," he told reporters after the mini-summit.

He said European leaders should send the message that "no sound, solvent bank should be allowed to fail through lack of liquidity".

Mr Brown also won approval at the summit for his proposal for a £12bn EU fund to help keep small businesses afloat during the economic crisis.

German Chancellor Angela Merkel - who said she was not happy with Ireland's action in guaranteeing bank deposits - said each country must act in "a balanced way" that did not cause harm to other EU member states.

"Each country must take its responsibilities at a national level," she said.

'Trial by fire'

The head of the International Monetary Fund (IMF), Dominique Strauss-Kahn, had earlier urged the EU to take co-ordinated action, saying the financial crisis was presenting Europe with a "trial by fire".


Bank of Ireland building

No business rush to Irish banks
He held talks with Mr Sarkozy before the EU leaders' meeting and said that although the EU was a more complex organisation than the US, Europe needed to take "concerted collective action".

He said: "It has to be indicated to the markets... that European countries will not react as every man for himself."

He also said he would be scaling back his world economic growth forecasts.

Ahead of the meeting, Germany had made clear its opposition to any co-ordinated European bail-out plan. Mr Brown was also sceptical of the need for any Europe-wide plan.

The president of the European Parliament has criticised the summit, warning that the leaders of Europe's four largest economies have no power to decide for the entire European Union.

Calls for European action follow the bail-out of both Bradford and Bingley in the UK and Fortis Bank by the governments of Belgium, Luxembourg and the Netherlands.

Tata abandons cheapest car plant

Tata abandons cheapest car plant
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The Tata Nano was unveiled at India's biggest car show in Delhi in January

India's Tata group has abandoned plans to build the world's cheapest car in the eastern state of West Bengal.

Tata group chief Ratan Tata said: "We have little choice but to move out of Bengal. We cannot run a factory with police around all the time."

He was speaking after protests in a row over land acquired from local farmers.

The car, the Nano, is expected to cost about 100,000 rupees ($2,130). It was due to be launched in October and will be ready "this year", Mr Tata said.

We will have to make the best of the deadline that we have

Tata group chief Ratan Tata

The BBC's Subir Bhuamik in Calcutta says the company is initially expected to produce several thousand Nanos this year at other sites in India.

It had planned to make 250,000 cars a year at the Singur plant in West Bengal, rising to 350,000.

A number of other car firms also plan vehicles to compete with the Nano but have not yet begun production.

The dispute in West Bengal highlights a wider problem between India's growing industry - which needs land - and its farmers who are unwilling to give it up.

'Offers'

Work at Tata's Singur plant has been suspended since the end of August following protests led by the state's opposition Trinamul Congress party.




Exclusive look at the Tata Nano

Mr Tata said the Nano will be built "within this year but I can't tell you where".

"We are going to do everything possible to come close to the deadline we had established," he told journalists in Calcutta.

"We have got offers from several Indian states but we have not yet finalised where to produce the Nano... All these issues we will announce in the next few days when we have a clearer picture."

Mr Tata said his group would still consider West Bengal as an investment destination in future.

"I value the considerable intellectual resources this state has, but something will have to change here," he said.

He was speaking after meeting the West Bengal chief minister Buddhadev Bhattacharya and his colleagues.

"This is a black day for Bengal. We will have so much more difficulty getting investments now," said the state's industry minister, Nirupam Sen.

Compensation

The West Bengal government acquired 1,000 acres of land for the Nano project two years ago.

More than 10,000 farmers accepted compensation for their land, but just over 2,000 of them refused and demanded land be returned.

During the protests Tata's engineers and workers were attacked, prompting the group to stop work.

Our correspondent says the Bengal governor then intervened and tried to mediate a deal between the government and the opposition but that did not work.

The plant was seen as a key part of industrialisation efforts in what is one of India's least developed states.

House backs $700bn bail-out plan

House backs $700bn bail-out plan

The moment the rescue package was approved in the House of Representatives
The US House of Representatives has passed a $700bn (£394bn) government plan to rescue the US financial sector.

The 263-171 vote was the second in a week, following its shock rejection of an earlier version on Monday.

The package is aimed at buying up the bad debts of failing financial institutions on Wall Street.

US President George W Bush praised lawmakers for their "spirit of co-operation" before signing the bill into law later on Friday.

The House adopted the new version after the Senate added about $100bn in new tax breaks to win Republican votes.

Intervention

The Dow Jones Industrial Average had been buoyant ahead of the vote, surging up 250 points, but those gains were pared back amid profit taking and continued uncertainty, and it closed down 1.5%.

The passing of the bail-out plan is just the first stage and it will be several months before anyone can tell whether it is working

Greg Wood,
BBC business correspondent


How will the rescue work?
Stocks trim gains after vote
Q&A: US $700bn bail-out plan

In a televised response after the House vote, President Bush said: "In coming together we have acted boldly to prevent a crisis on Wall Street becoming a crisis in communities across the country."

Mr Bush acknowledged there were concerns about the government's role and the cost of the plan.

He said he believed in intervention only when it was necessary - but "in this situation, action is clearly necessary".

However, he warned the package would take time to have an effect on the economy.


Despite traders' celebrations, the Dow Jones finished down

His Treasury Secretary Henry Paulson vowed speedy action to get the rescue package up and operating.

And Federal Reserve Chairman Ben Bernanke applauded Congress, saying the bill was a critical step toward stabilising financial markets.

BBC North America business correspondent Greg Wood says the passing of the bail-out plan is just the first stage and it will be several months before anyone can tell whether it is working.

Avoiding 'catastrophe'

Legislators were hugely divided on the bill during the House debate.

Some who had voted "No" on Monday said they were switching because of the improvements to the bill but many of them still expressed serious reservations.



President Bush thanks Congress after the bail-out bill is approved
Others maintained their opposition, saying the bill was still a bail-out benefiting mainly Wall Street.

But House Speaker Nancy Pelosi was one of many to refer to those suffering on America's Main Street and said that urgent action was needed "to avoid economic catastrophe".

"The bright light of accountability will protect the taxpayer," she vowed.

Democrat majority whip James Clyburn said: "We came together in a very strong, bipartisan way to deliver this decisive victory for the American people."

Georgia Democrat John Lewis reflected the views of many when he said: "I have decided that the cost of doing nothing is greater than the cost of doing something."


NEW MEASURES IN BAIL-OUT BILL
Increased protection for saving deposits
Increased child tax credits
More aid for hurricane victims
Tax breaks for renewable energy
Higher starting limits to alternative minimum tax


Congress vote reveals divisions
In quotes: Bail-out vote reaction
Send us your comments

South Carolina Republican J Gresham Barrett added: "No matter what we do or what we pass, there are still tough times out there. People are mad - I'm mad. We have to act. We have to act now."

But Texas Republican Jeb Hensarling asked: "How can we have capitalism on the way up and socialism on the way down?"

Friday's vote showed 172 Democrats in favour and 63 against. A majority of Republicans still opposed the bill - 91 voted for it and 108 against.

The House rejected the earlier version by 228 votes to 205 on Monday.

The Senate passed an amended bill on Wednesday that raised the government's guarantee on savings from $100,000 to $250,000.

It also included tax breaks to help small businesses and to boost alternative energy, expanded the child tax credit and extended help to victims of recent hurricanes.

The US had experienced more evidence of the financial volatility ahead of the vote on Friday.

The Wells Fargo bank announced it would buy troubled rival Wachovia in a $15.1bn (£8.5bn) deal, while the US also reported its biggest monthly job loss in more than five years.

Russia call to halt Somali piracy

Russia call to halt Somali piracy

Pirates wants a $20m ransom for the Ukrainian ship and its cargo
Russia's foreign minister has called for joint international action to halt pirate attacks off the Horn of Africa.

"Russia aims to stop the outrageous actions of Somali pirates," Foreign Minister Sergei Lavrov said.

A Russian warship has already been despatched to Somali waters following last week's seizure of a Ukrainian ship laden with 33 Russian-made tanks.

The pirates are demanding a $20m (£11m) ransom for the vessel which is surrounded by US navy warships.

On Thursday, the European Union agreed to establish an anti-piracy security operation off the coast of Somalia to become operational in November.

Mr Lavrov said the Russians would participate in international efforts to halt the piracy and called for a UN resolution to tackle the problem.




Life in Somalia's pirate town
Somali piracy costs $30m
Tanks 'were for Sudan arms race'

He said Malaysia was also sending frigates to join the US warships surrounding the pirates.

According to Russia's Itar-Tass news agency, the Russian warship Neutrashimy is to commence patrols in the Gulf of Aden on 6 November.

The warship is reported to be carrying marines and commandoes on board.

The Ukrainian vessel - the Faina - was carrying T-72 tanks, rifles and heavy weapons when it was seized last week and is being held off the coast, near the town of Hobyo.

Most of the 20 crew are Ukrainian or Latvian; one Russian has reportedly died of illness.

The ship is surrounded by US warships, which is not allowing the heavy weapons to be taken off the ship.

Piracy off the coast of Somalia has cost up to $30m (£17m) in ransoms so far this year, a report has said.

Russians killed in Georgia blast

Russians killed in Georgia blast
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Smoke rises from the scene of the explosion

A blast in Georgia's breakaway region of South Ossetia killed seven Russian soldiers, a Russian commander says.

The soldiers died when a car full of explosives blew up near a Russian military base in the regional capital, Tskhinvali, local officials said.

Georgia said Russia organised the explosion as a pretext to delay withdrawing troops from South Ossetia.

But Russia blamed Georgia, saying it was an attempt to undermine a ceasefire agreement between the two sides.

Tension remains high in the region following the conflict between Russia and Georgia over the summer.

Seven other soldiers were injured in the blast, the Russian military commander in South Ossetia said.

According to a statement from the South Ossetian breakaway government, Russian troops had confiscated the vehicle that blew up from an ethnic Georgian village because it was carrying weapons.

Russian television footage showed a black plume of smoke rising from behind metal gates at the base.
Russia says it plans to keep thousands of troops in South Ossetia

An unidentified Russian foreign ministry official said forces "striving to destabilise the situation" were behind the blast, Russian media reported.

South Ossetian leader Eduard Kokoity went further, describing it as "a deliberate terrorist act prepared by the Georgian Security Ministry", Russia's Itar-Tass news agency said.

Georgian Interior Ministry spokesman Shota Utiashvili rejected the allegation.

"I think this is a provocation with the aim of keeping Russian forces in Georgia," he told the AFP new agency.

EU monitors

The BBC's James Rodgers, in Moscow, says it is the most serious incident in South Ossetia since Russia and Georgia fought over the territory two months ago.


Q&A: Conflict in Georgia

Fighting began there on 7 August when Georgia tried to retake South Ossetia by force after a series of lower-level clashes.

Russia launched a counter-attack and the Georgian troops were ejected from South Ossetia and another region, Abkhazia, several days later.

Earlier this week, European Union monitors entered a Russian-controlled buffer zone around South Ossetia, as part of a French-brokered peace deal between the two sides.

Russia says it will pull out from the buffer zone and another around Abkhazia by 10 October.

But it has recognised the two breakaway regions as independent and says it will keep nearly 8,000 troops in the two areas.

The EU wants its observers to have access to the breakaway regions, but Russia has repeatedly refused to guarantee that

Russia call to halt Somali piracy

Russia call to halt Somali piracy

Pirates wants a $20m ransom for the Ukrainian ship and its cargo
Russia's foreign minister has called for joint international action to halt pirate attacks off the Horn of Africa.

"Russia aims to stop the outrageous actions of Somali pirates," Foreign Minister Sergei Lavrov said.

A Russian warship has already been despatched to Somali waters following last week's seizure of a Ukrainian ship laden with 33 Russian-made tanks.

The pirates are demanding a $20m (£11m) ransom for the vessel which is surrounded by US navy warships.

On Thursday, the European Union agreed to establish an anti-piracy security operation off the coast of Somalia to become operational in November.

Mr Lavrov said the Russians would participate in international efforts to halt the piracy and called for a UN resolution to tackle the problem.




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He said Malaysia was also sending frigates to join the US warships surrounding the pirates.

According to Russia's Itar-Tass news agency, the Russian warship Neutrashimy is to commence patrols in the Gulf of Aden on 6 November.

The warship is reported to be carrying marines and commandoes on board.

The Ukrainian vessel - the Faina - was carrying T-72 tanks, rifles and heavy weapons when it was seized last week and is being held off the coast, near the town of Hobyo.

Most of the 20 crew are Ukrainian or Latvian; one Russian has reportedly died of illness.

The ship is surrounded by US warships, which is not allowing the heavy weapons to be taken off the ship.

Piracy off the coast of Somalia has cost up to $30m (£17m) in ransoms so far this year, a report has said.