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.

"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."

More follows...

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Queen 'Suffering From Gastroenteritis'

The Queen has cancelled an engagement in Swansea as she is suffering from the symptoms of gastroenteritis.

Buckingham Palace confirmed the Queen is unwell and will "be assessed in the coming days".

The 86-year-old monarch was due to visit Wales today to present St David's Day leeks to 3rd Battalion The Royal Welsh.

She is currently at Windsor Castle, where she is spending the weekend "as usual", the palace said in a statement.

The Queen is due to travel to Rome on March 6 to visit Italy's President Napolitano.

She last had to cancel an event - an investiture ceremony at Windsor Castle - due to chronic back pain in October 2012.

She also missed a church service at Sandringham two days before Christmas last year because she was "getting over the tail end of a cold".

The Queen presented Olympic stars, including Jessica Ennis, Nicola Adams and Greg Rutherford, with honours at Buckingham Palace on Thursday.

Jessica Ennis beamed as the Queen presented her with a CBE on Thursday

A palace spokesman said the Queen's visit to Rome was still due to take place but a decision would be made after further assessment of her condition.

Meanwhile, Swansea Council said the ceremony would go ahead today as planned with the Lord Lieutenant of West Glamorgan, Byron Lewis.

A council spokesman said: "Due to minor illness, Her Majesty The Queen is unable to attend Saturday's event.

"The ceremony will continue as planned and will be carried out by the Lord Lieutenant of West Glamorgan, Mr Byron Lewis.

"The Lord Lieutenant will be met upon arrival at the Guildhall by Brigadier Philip Napier, Colonel of the Regiment.

"The parade will present arms for a royal salute and play the national anthem before the Lord Lieutenant is invited to present leeks to a representative body of the regiment.

"Following the parade, the Lord Lieutenant will attend a reception with members of the battalion and their families, before proceeding to the George Hall for lunch.

"The event will take place in and around the Brangwyn Hall and public viewing areas will be available."

Gastroenteritis is an infection of the stomach and bowel, with common symptoms including vomiting, diarrhoea and dehydration.

In England, the two most common causes of gastroenteritis in adults are the norovirus and food poisoning, according to NHS Choices.

The Queen has rarely missed events during her 61-year reign, even though she carries out more than 300 engagements a year.

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Lloyds: Osborne Plans Taxpayer Stake Sale

By Mark Kleinman, City Editor

The Government will signal today that it will begin the sell-off of its stake in Lloyds Banking Group when the lender's share price hits 61p - a far lower level than previously thought.

I have learnt that UK Financial Investments (UKFI), which manages the taxpayer's 39% stake in Lloyds, and the Treasury will indicate today that the privatisation of the Government's stake can begin within months.

The 61p level is the price at which the stake - bought in 2008 at the height of the banking crisis - is booked at in the national accounts.

The £1.48m bonus awarded to Lloyds boss Antonio Horta-Osorio can vest if the Government sells at least one-third of its stake above 61p, Lloyds confirmed today.

"This award is subject to the normal performance adjustment policy and will only vest if a share price of 73.6p has been reached for a given period of time or the Government has sold at least 33% of its shareholding at prices above 61p," Lloyds said, confirming a report on Sky News.

"The board believes that these additional conditions are in the interests of all shareholders and support our common aim of repaying the taxpayer.

"HM Treasury has informed us that 61p is the average price at which the equity support provided to Lloyds Banking Group is recorded in the Public Finances."

The news comes as Lloyds reported a loss for last year of £570m, down from £3.5bn in 2011.

The loss was attributable to a £3.5bn provision during 2012 for mis-selling payment protection insurance, £1.5bn of which was taken during the fourth quarter.

Lloyds paid out £365m in bonuses for the year, with an employee average of £3,900.

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South Africa Suspends Cops After Van Death

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 principal 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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Eastleigh By-Election: Lib Dems Triumph

The Liberal Democrats have won a key by-election in Eastleigh, where the Tories were pushed into third place by UKIP.

Local councillor Mike Thornton held the seat vacated by disgraced Cabinet minister Chris Huhne despite a torrid week for his party.

At 1,771, the Lib Dem majority was more than half that achieved by Mr Huhne in 2010 but the victory will be seen as a major boost.

Nick Clegg promptly claimed that the party was "on track for 2015".

For David Cameron, the result is a severe blow with the Conservatives' third place coming despite major campaigning by top Tories.

UKIP's strong showing will increase tensions on the Tory backbenches, and fuel fears about a general election drubbing in 2015.

UKIP leader Nigel Farage with Diane James who came second

There will be concern that Mr Cameron's pledge to hold a referendum on EU membership if the Tories stay in power has not curbed UKIP's rise.

The eurosceptic party's candidate Diane James won 11,571 votes - an increase of almost 10,000 on the party's showing in 2010.

Mr Thornton won with 13,342, with Tory Maria Hutchings in third on 10,559.

Labour's John O'Farrell polled 4,088, more than 1,000 down on 2010, in what was also a disappointing performance for the Opposition.

Disappointed Tory candidate Maria Hutchings

In his victory speech, Mr Thornton said the result proved those who had "written off" the Lib Dems were wrong.

"Those who say the Liberal Democrats won't win again, those who are so keen to do us down, that the Liberal Democrats can do it - we have done it and we will do it again," he said.

Ms James hailed her second place as "a humongous political shock" that represented a "seismic shift" in British politics.

And Mrs Hutchings appeared to be fighting back tears as she thanked opponents for a "clean campaign".

Delighted UKIP leader Nick Farage hailed his party's "massive surge" and blamed the Tory's bad showing on Mr Cameron.

"The Conservatives failed here because traditional Tory voters look at Cameron and they ask themselves 'Is he a Conservative?' and they conclude 'No, he's not'," he said.

"He's talking about gay marriage, wind turbines, unlimited immigration from India. He wants Turkey to join the European Union. The Conservatives' problems are not because of UKIP, it's because of their leader."

He added: "People will say it was a protest vote but who we attracted here were non-voters who had not voted for 20 years - they are not protest votes."

Eastleigh is on a Tory target list of 20 Lib Dem-held seats considered crucial to win if Mr Cameron is to win outright at the next general election.

Senior Tory backbencher David Davis had already warned the Prime Minister that third place in the seat would represent a "crisis" for the party.

Conservative Party chairman Grant Shapps tried to play down the significance of the result, saying: "Governments in mid-term regardless get a drubbing. Let's wait until the general election."

Education Secretary Michael Gove said voters had turned to UKIP because they wanted to "register a sense of hurt" but insisted they still backed Mr Cameron over the economy.

Calculations by the Press Association suggest Labour would have a majority of 60 if the vote share changes were repeated nationally at a general election.

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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 Australian dollars (£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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RBS Boss: Spring Cleaning Drives £5.16bn Loss

The Royal Bank of Scotland boss has said "spring-cleaning" continues after his firm reported a pre-tax loss in 2012 of £5.16bn.

RBS chief executive Stephen Hester said: "This company is going through a pretty thorough spring-cleaning. It is a pretty dusty job.

"We are spring-cleaning this house and it is looking shinier."

The significant loss was in part due to provisions RBS has made for customer redress for payment protection insurance (PPI) mis-selling and other so-called bad practices.

It said the annual return was impacted heavily by a £4.64bn "accounting charge for improved own credit".

However, the firm's bankers will still share a bonus pool of £607m - including £215m for investment bankers.

In 2011 the total bonus pot was around 25% higher, at £789m.

Boss Stephen Hester said RBS must be "cleaned up"

When asked to justify the £607m payout, Mr Hester said: "We are a very big company so the numbers end up being substantial, but they are much smaller than other banks.

"We believe that we are doing a responsible job on bonus restraint while acknowledging our staff are badly needed."

The bonus reduction was done to help recoup cash to pay for its recent Libor-rigging settlement with UK and US authorities.

Last month RBS reached an agreement with the Financial Services Authority and US authorities over Libor and other rate fixings to include penalties of £381m.

Mr Hester admitted 2012 had been a "chastening" year to "put right past mistakes", with losses up significantly from £1.2bn in 2011.

The company revealed it took a £450m charge in the last three months of 2012 over PPI mis-selling, taking its cumulative provision to £2.2bn.

By December 31 a total of £1.3bn had been paid out in redress over the scandal.

The disgraced ex-boss Fred Goodwin reigned over the previous RBS regime

The bank said: "Our target is for 2013 to be the last big year of restructuring. There will be important work still to do, but an increasingly sound base from which to work.

"As the spotlight shifts to the 'new RBS' post restructuring, we are determined that it will show a leading UK bank striving to be a really good bank."

RBS saw changed fortunes in its core business, with retail and commercial sector income down 6% but markets up 68%.

The bank added: "RBS is four years into its recovery plan and good progress has been made. We are a much smaller, more focused and stronger bank.

"By serving customers well RBS can become one of the most respected, valued and stable of banks. That is our goal."

In its annual report the bank, which was bailed-out in Britain's biggest ever corporate disaster, said there is an intention to float an estimated 25% of its stake in US banking arm Citizens.

This move was welcomed by Chancellor George Osborne who said: "The Government's strategy is for RBS to be a stronger and safer bank, which in time can be returned to full private ownership.

"I have been very clear that I want to see RBS as a British-based bank, focused on serving British businesses and consumers, with a smaller international investment bank to support that activity rather than to rival it."

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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.

Benedict 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 will say their farewells to the Pope at a gathering in the Apostolic Palace.

Just before 5pm local time (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 5.30pm, 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.

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

At 8pm 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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Egypt Balloon Crash: Luxor Grounds Flights

An investigation is under way in Egypt after 19 people - including two Britons and a UK resident - died in a hot air balloon crash.

Amateur footage shows smoke billowing from the balloon before it falls around 1,000 feet to the ground during a sunrise flight near the ancient city of Luxor.

Luxor Governor Ezzat Saad imposed an immediate ban on all hot air balloon flights in the province as Prime Minister Hisham Qandil ordered the investigation.

Michael Rennie survived but his wife, Yvonne, died

British nationals Yvonne Rennie and Joe Bampton, and Mr Bampton's partner, Hungarian-born UK resident Suzanna Gyetvai, were named as being among those killed.

Mrs Rennie's husband Michael, 49, is in hospital after leaping from the balloon as it exploded and plunged to the ground in flames.

Witnesses said they heard a loud explosion before seeing plumes of smoke as the balloon caught fire. People were seen jumping out from "about the height of a seven-storey building".

A spokeswoman at Luxor international hospital said Mr Rennie was in a stable condition.

Victims Joe Bampton and his girlfriend Suzanna Gyetvai

Mr Bampton, 40, and Ms Gyetvai, 34, were from Clapham, south London.

Mr and Mrs Rennie, from Perth, Scotland, were described as "very nice people" who only spent the weekends together due to work commitments.

Neighbour Linda Kettles said: "They were very, very nice people who kept themselves to themselves.

"They've gone on holiday to enjoy themselves. They only get the weekends together and any break together is good for them.

"They were really looking forward to getting away. I'm totally devastated by the news. I really feel for their families."

The other tourists on board, including holidaymakers from France, Hong Kong and Japan, were all thought to have died in the explosion.

The only other survivor of the crash was the pilot, an Egyptian man, who is in hospital with burns to 60% of his body.

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Horsemeat: Tesco To Source More Meat From UK

By Poppy Trowbridge, Business and Economics Correspondent

Tesco is to announce a commitment to source more of its meat from the UK at a farming conference in Birmingham later.

The supermarket kingpin will tell the National Farmers Union meeting that by July all its chicken will come from British farms, and pork products will follow.

Tesco will also offer suppliers two-year contracts to help companies plan their business for the longer term.

The company's chief executive, Phillip Clarke, who will address the conference today, told Sky News: "We feel the need to bring the food closer to home.

"We think it's right to bring more of it back to the UK, so long as we can get the demand from the UK."

Earlier this month, Mr Clarke said in a video on Tesco's website that the company would take a more open approach to food processing after it was found to be selling products contaminated with horsemeat.

Tesco was one of the first retailers to pull products from its shelves after the horsemeat contamination was revealed on January 16 after analysis was undertaken by Irish food officials.

Tesco has blamed its suppliers for the meat contamination

Tests on Findus beef lasagne revealed that some of the ready meals were made entirely from horsemeat.

And Tesco found levels of horse DNA exceeded 60% in tests on its Everyday Value Spaghetti Bolognese.

Since the horsemeat scandal broke, supermarkets have been criticised for not communicating with customers quickly enough.

They have also seen frozen burger sales and ready meal sales plunge dramatically, data by Kantar Worldpanel showed.

In an attempt to be more transparent, Tesco said it would put cameras on the supply chain so shoppers could see where the food they are eating has come from and how it was produced.

"There's nothing for anybody to hide. There never should be," said Mr Clarke.

While it already sources all its beef products from the UK and Ireland, the food retailer admits suppliers had cut corners.

"The impact so far on sales is minimal," Mr Clarke added, though he acknowledged that some customers are buying fewer frozen ready meals.

George MacDonald, Retail Week executive editor, told Sky News, "The shopper can feel fairly confident that anybody involved is going to be looking very closely indeed at how they can sort out these problems."

As the nation's biggest supermarket, Tesco should be at the forefront of campaign to restore trust in food, Mr MacDonald believes.

"It is essential for them to fully reconnect with the customer," he said.

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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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Ben Nevis Climber Killed In 165ft Fall

A climber has died after falling 50 metres (165ft) on Ben Nevis.

The man was climbing with a friend in the Raeburn's Buttress area of the UK's highest mountain, in the Scottish Highlands, when he fell at around 12.30pm on Monday.

Two helicopters flew to the scene with Lochaber Mountain Rescue Team, but the man died during the rescue.

Police are trying to establish the exact circumstances around the death and will not release information on the victim until his family have been informed.

Raeburn's Buttress is a popular climbing area on the north face of Ben Nevis, which stands at 1,344 metres (4,409ft).

Last month a 22-year-old climber died after falling 100 metres on the mountain.

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Lord Rennard Sex Claims: Police To Investigate

How The Rennard Story Developed

Updated: 7:17pm UK, Monday 25 February 2013

Here is how the claims about Lord Rennard grew into a full-blown crisis for Nick Clegg amid questions about exactly what the party leader knew and when.

2008: Nick Clegg says this was when he became aware of "indirect and non-specific concerns" about Lord Rennard's behaviour.

The leader says his then chief-of-staff Danny Alexander confronted the peer and told him "any such behaviour was wholly unacceptable".

Lord Rennard "categorically denied" the claims.

2009: Lord Rennard resigns as party president due to ill health.

February 19, 2013: Channel 4 tells the Lib Dems about the allegations ahead of its programme.

February 21, 2013: Channel 4 broadcasts claims by two women alleging Lord Rennard touched them inappropriately.

Alison Smith, a Lib Dem activist who is now an Oxford University lecturer, said she spoke to chief whip Paul Burstow and Jo Swinson, party spokesman for women and equality, but that no action was taken.

Lord Rennard, who resigned as party president in 2009 due to ill health, says he is "deeply shocked" by the allegations which he "strongly disputes".

The party insists Nick Clegg first knew of the allegations when it was approached by Channel 4 about the planned broadcast.

February 22, 2013: A new report on Channel 4 News says more women have come forward with similar stories about the peer.

February 23, 2013: Lib Dem president Tim Farron says he is "sure" Mr Clegg did not know about the claims.

February 24, 2013: Pressure grows on Mr Clegg after the Mail on Sunday reports a Facebook exchange from January 2009 in which one party worker wrote: "I just don't know how Nick can know and not do anything."

A Lib Dem spokesman repeats: "Nick Clegg only knew of these allegations when we were contacted by Channel 4 News."

Speaking on the BBC's Andrew Marr show in the morning, Business Secretary Vince Cable also denies that he or Mr Clegg knew about the allegations before the Channel 4 report.

In the evening, Mr Clegg - back from a family holiday in Spain - issues a dramatic clarification, admitting he had known about the rumours for five years.

But he says: "I would like to make one thing crystal clear. I did not know about these allegations until Channel 4 informed the party of them shortly before they were broadcast."

February 25, 2013: Mr Clegg insists he has "nothing to hide" about how the case was handled. "Until last week, no very specific allegations were put to me," he says.

Lib Dem President Tim Farron admits the party has "screwed this up". "There are individuals out there who we had a duty of care towards and we did not fulfil that duty of care," he says.

Scotland Yard announces it is investigating "whether or not criminal activity has taken place" following the allegations against Lord Rennard.

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Brits Among 19 Dead In Hot Air Balloon Crash

A hot air balloon has crashed near the ancient Egyptian city of Luxor, killing 19 foreign tourists.

The balloon was carrying 21 people at the time and was flying at a height of 1000 feet over Qurna, in Luxor's West Bank.

An Egyptian security official says there was a fire and an explosion on-board the balloon, which fell to the ground and crashed into sugar cane fields.

The casualties are believed to include British, French, Japanese, Korean and other foreign nationals.

Two survivors from the crash, including the balloon's pilot, have been taken to hospital.

The crash occurred in Luxor, Egypt

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

He told Sky News that: "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."

Christopher Michel took this photo at the scene 40 minutes before the crash

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 that: "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.

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Oscars: Historic Win For Daniel Day-Lewis

Daniel Day-Lewis has made Oscar history after becoming the first man to win the best actor trophy three times.

The British-born actor was honoured for his portrayal of President Abraham Lincoln in Steven Spielberg's historical drama.

He spent a year preparing for the role and, in his customary method, remained in character during the production.

Accepting his Oscar from Meryl Streep, Day-Lewis said: "I really don't know how any of this happened, I do know I've received more than my fair share of good fortune in my life."

Christoph Waltz won the first award of the night

He joked Streep had been the first choice to play Lincoln and he had been committed to play Margaret Thatcher - the role that won Streep an Oscar last year - before tearfully thanking his mother.

He previously won in 1989 for My Left Foot and in 2007 for There Will Be Blood.

It was a good night for British talent with Adele winning the Oscar for best original song for her Bond theme Skyfall.

The tearful singer thanked her songwriting partner Paul Epworth for "believing in me all the time, and my man, I love you baby".

She wowed the audience of A-listers in the Dolby Theatre with her first ever live performance of the 23rd Bond film's title track.

Dame Shirley Bassey wowed the audience in the theatre

Ben Affleck's Iran hostage thriller, Argo, won the Oscar for best picture, despite the star being snubbed in the best director category.

The nominees for best film were introduced by First Lady Michelle Obama from the White House, before she named Argo as the winner.

Affleck, who also starred in the film, paid tribute to the "genius" Spielberg whose film, Lincoln, lost out in the category.

Referring to his success with 1997's Good Will Hunting, he said: "I never thought I would be back here and I am because of so many of you who are here tonight."

He added: "It doesn't matter how you get knocked down in life, all that matters is that you get up."

The cast of Les Mis took to the stage

It was the first time since Driving Miss Daisy in 1990 that a film won the top prize at the Oscars without its director also being nominated.

The show's host Seth MacFarlane, the man behind hit cartoon Family Guy, started proceedings by poking fun at the Academy for not nominating Affleck, saying the plan was "so top secret the film's director is unknown to the Academy".

Taiwanese director Ang Lee picked up the statuette for best director for Life of Pi, beating Spielberg who many expected would collect the award for Lincoln. Lee collected the same award for Brokeback Mountain in 2005.

In a night that was otherwise short on shocks Jennifer Lawrence claimed the best actress gong for Silver Linings Playbook.

The 22-year-old fell as she climbed the steps to the stage to claim her prize.

Some had predicted the award would go to French actress Emmanuelle Riva who starred in Amour and at 86 was the oldest woman ever to be nominated. She won a Bafta award earlier this month for the role.

Jennifer Lawrence fell on the stairs to the stage

Anne Hathaway picked up the best supporting actress statue for her role in the musical Les Miserables.

The star, who only featured as Fantine in the film for around 15 minutes, fought back tears as she said "it came true" and thanked her husband and everyone who worked on the film.

She had been widely predicted to win the award in a tough category where Sally Field, Helen Hunt, Amy Adams and Jacki Weaver were also nominated.

Christoph Waltz won the first award of the night, best supporting actor, for his role in Django Unchained.

Waltz offered thanks to his character and "to his creator and the creator of his awe-inspiring world, Quentin Tarantino".

It was the second time in three years he has won the category - his first Oscar was for his role in Tarantino's Inglourious Basterds.

Waltz beat off stiff competition from Alan Arkin, Robert De Niro, Philip Seymour Hoffman and Tommy Lee Jones.

Some of host Seth MacFarlane's jokes were a bit close to the bone

Tarantino went on to collect the prize for best original screenplay.

Brave, the Scottish story of a rebellious, red-headed princess, won the Oscar for best animated feature.

Amour, a French-language film about an elderly couple won best foreign language film which was accepted by its Austrian director Michael Haneke.

Skyfall also won the trophy for best sound editing, which was tied with Zero Dark Thirty. It is only the third time in Oscar history that winners have been tied.

The night of British success started with Jacqueline Durran winning for her costume design on Anna Karenina and the make-up and hairstyling award went to Lisa Westcott and Julie Dartnell for Les Miserables.

The presentation of awards was broken up by a series of musical performances including Catherine Zeta-Jones singing All That Jazz from Chicago and Jennifer Hudson performing I'm Telling You from Dreamgirls.

A tribute to the Bond films and music made up of classic clips of 007's adventures was introduced by one-time Bond girl Halle Berry.

And 76-year-old Dame Shirley Bassey took to the stage in a gold dress to sing Goldfinger which received a standing ovation.

But it was a medley of Les Miserables songs sung by the cast that left the audience with goosebumps.

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April Jones Murder: Mark Bridger On Trial

Former lifeguard Mark Bridger will go on trial today accused of the murder of schoolgirl April Jones.

Bridger, 47, was arrested the day after the five-year-old vanished while playing on her bike near her home in Machynlleth, Wales, on October 1 last year.

April vanished in October last year

The disappearance of April, who had cerebral palsy, sparked a massive outpouring of support for her family, with hundreds of people joining the search.

The girl's body has never been found despite a major operation led by Dyfed Powys Police.

Bridger, of Ceinws, is charged with abducting and murdering April, and of unlawfully disposing of and concealing her body with intent to pervert the course of justice.

He pleaded not guilty to the allegations on January 14 when his barrister Brendan Kelly QC told Mold Crown Court that Bridger is "probably responsible" for her death.

The trial, also at Mold, is expected to be occupied with legal matters and jury selection today and is due to open later this week.

On the day she went missing, Mr and Mrs Jones had allowed April to play out late as a treat after she received a glowing report from school.

Bridger was arrested the following day.

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Two Police Officers Injured In Hit And Run

Two people have been held on suspicion of attempted murder after police officers were injured in a hit and run in Manchester.

The officers pulled over the vehicle to stop the vehicle at about 10.50pm on Sunday on Rochdale Road in Harpurhey, when it hit them and drove off.

One of the officers was able to use his radio to call for help and extra patrols were sent to the scene, along with paramedics.

Their injuries are not life threatening - one officer suffered a fractured skull with bleeding to the brain, while the other suffered a broken wrist.

Assistant Chief Constable Garry Shewan said: "The two officers were out on patrol when they pulled over a car they believed was travelling at excess speed.

"However, as they were approaching the car on foot, the car was deliberately put into reverse and driven at the two officers.

"As a result, one of the officers suffered a fractured wrist and the other a fractured skull. Both men are in hospital receiving treatment and their families are with them. Our thoughts are with both the officers and their families as they recover from their injuries.

"Sadly, what this incident painfully highlights is the dangers officer face every day when protecting the public. What should have been a routine vehicle stop resulted in two officers being deliberately driven at and suffering serious injuries.

"I know the friends and colleagues of both officers will be anxious to know how the two men are doing, as it is always very unsettling when friends and colleagues are injured in the line of duty, so we will be offering support to anyone who needs it.

"What I do want to stress is that as a result of inquiries, we quickly traced what we believe to be the offending car to an address in Haslingden and arrested two people on suspicion of attempted murder.

"Those individuals remain in custody for questioning and we would continue to appeal to anyone who either witnessed the incident or has information to come forward."

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Doctors From Abroad Must Take English Test

By Lisa Dowd, Sky News Correspondent

New checks will be introduced to make sure all NHS doctors can speak English well enough to treat patients, the Government has announced.

It comes five years after David Gray, 70, was killed by a German doctor on his first out-of-hours shift in the UK.

Daniel Ubani accidentally gave the pensioner 10 times the recommended dose of the painkiller diamorphine.

The locum was struck off the medical register in the UK, but still practises in Germany, despite admitting death by negligence in a German court.

Mr Gray's son Stuart, 53, himself a GP, said: "What Ubani had done was try to register with Leeds PCT (Primary Care Trust).

"They'd made him sit an English language test to see if he was proficient. He failed that, so he decided to apply to another PCT, this being Cornwall.

"They didn't bother to test his English language skills, put him on the list, once he was on the list he can practise anywhere in the country and he then went to practise in Cambridgeshire where he killed my father."

Daniel Ubani caused the death of 70-year-old David Gray (pictured)

Last year, research by Pulse magazine for GPs found that 792 EU doctors were on the so-called "performers lists" of 51 Primary Care Trusts, allowing them to work in the UK. Of those, 657 doctors, or 83%, hadn't had their English skills tested.

From April 1 there will be one national list which every GP will have to be on before treating patients. There will also be a legal duty to ensure those on it have good English.

Health minister Dr Dan Poulter said: "It's not something that should cause huge public alarm, but it's something that we do know from the case of Doctor Daniel Ubani, and other doctors, who are sometimes flown in to do short-term locums in the NHS from Europe, that it is something that has actually caused deaths in this country.

"That's completely unacceptable and that's why we're introducing language checking for all overseas doctors including those within the EU."

But Dr Gray, of Blakedown, Worcestershire, has his doubts. He said: "I'd like to know how they're going to police it.

"If they say it's going to be illegal for the doctor to work here if they can't communicate in English, well, it was illegal for Cornwall PCT to put Ubani on their list, and no one has been held to account for breaking the law there."

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Oscar Pistorius Tweet Thanking Fans Is Fake

A tweet claiming to be from Oscar Pistorius thanking his fans for praying for him was a fake, the Paralympian's family has said.

The message, thanking "every person that has prayed for both families" and signed by "Osca" was posted using his older brother's handle, @carlpistorius.

It was initially believed to have been the double-amputee's first direct comment since he was freed on bail over the killing of his girlfriend Reeva Steenkamp on Valentine's Day.

But his family said the Twitter account had been hacked, prompting the accounts of his siblings to be taken down.

Pistorius family spokeswoman Janine Hills said: "It is most unfortunate that during this sensitive time someone would choose to hack into Oscar Pistorius' older brother Carl Pistorius' Twitter handle.

"Carl did not tweet this afternoon, out of respect to Oscar and Reeva. We are busy cancelling all the social media sites for both Oscar's brother and his sister."

It came as Ms Hills told Sky News the athlete "wants this time to be alone" and was "feeling a lot of remorse" over the death of the law graduate.

Pistorius is accused of premeditated murder. He denies murder.

The athlete arrived at his uncle's house on Friday after paying 10% of his one million rand (£73,000) bail at Pretoria's Brooklyn police station, where he had been held for a week.

His uncle, Arnold, has reportedly told eNews Channel Africa (eNCA) that his nephew wants to contact the parents of Ms Steenkamp and said he would "never be the same" again.

Earlier, Ms Steenkamp's father said Pistorius would "suffer" if it turned out he was lying about how she died.

South Africa's Beeld newspaper quoted Barry Steenkamp as saying Pistorius would have to "live with his conscience" if his assertion that he accidentally shot the 29-year-old is false.

He said: "There are only two people who really know what happened and it's Oscar Pistorius and the Lord.

"It does not matter how much money he has and how good his legal team is, he must live with his conscience if he let his lawyers tell lies on his behalf.

"He will have to live with his conscience. But if he speaks the truth, I can perhaps someday forgive him."

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Pistorius Brother To Stand Trial Over Death

The brother of Paralympic star Oscar Pistorius is facing charges over the death of a woman in a car crash in 2010, Sky News has learned.

Oscar Pistorius was granted bail

Carl Pistorius, who was present in court over the past week to support Oscar, is charged with culpable homicide over the alleged accidental death of a female motorcyclist.

His lawyer Kenny Oldwage, who also represents Oscar Pistorius, confirmed the charges to Sky's Alex Crawford.

Carl Pistorius appeared in court just two days before his brother's bail hearing last week.

Crawford said in Britain the equivalent charge to culpable homicide is manslaughter.

Carl Pistorius' trial is set to begin at the end of March.

Oscar Pistorius, meanwhile, spent Saturday at his uncle's home in an affluent suburb of Pretoria, the South African capital, after a judge released him on bail on Friday.

He has been charged with premeditated murder in the shooting death of girlfriend Reeva Steenkamp in the early hours of Valentine's Day.

But the athlete denies murder, saying he killed the 29-year-old model accidentally. He says he opened fire after mistaking Miss Steenkamp for an intruder in his home.

Carl Pistorius, with his sister, was in court this week to support Oscar

The Oscar Pistorius case took a dramatic turn last week when it was revealed the lead investigator, Hilton Botha, was facing charges of attempted murder himself.

Botha, who denies the charges, was questioned at the 26-year-old athlete's bail hearing, where he gave an often confused testimony.

But the day after he was questioned in court, a judge dropped him from the case because of the charges.

Prosecutors admitted that the timing of the attempted murder charges had been "totally weird".

Miss Steenkamp was killed on Valentine's Day

On Saturday, Miss Steenkamp's father spoke about the case, saying Oscar Pistorius will "suffer" alone if he is lying about how his daughter died.

"It doesn't matter how much money he has and how good his legal team is, he will have to live with his conscience if he allows his legal team to tell lies on his behalf," Barry Steenkamp told Beeld, an Afrikaans newspaper.

"But if he is telling the truth then maybe I can forgive him one day. If it didn't happen the way he said it did, he must suffer, and he will suffer... only he knows."

Her mother June said that the Pistorius family had sent a card and flowers offering condolences for the death of her daughter but she added it meant little because: "They are not to blame."

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