US President Barack Obama condemned the violence, urging Mr Saleh to allow peaceful protests. In a statement, he said those responsible for Friday's violence "must be held accountable". Separately, France demanded an end to attacks "by security forces and armed pro-government groups... against people exercising their rights to free speech and demonstration", Reuters reports.

Yassin Noman, rotating president of Yemen's umbrella opposition group, was quoted by Reuters news agency as saying there was "no longer any possibility of mutual understanding" between the protesters and President Saleh, and he should resign. Another opposition spokesman, Mohammad al-Sabri, accused Mr Saleh of presiding over a "massacre".

A doctor treating the injured said "This is part of a criminal plan to kill off the protesters, and the president and his relatives are responsible for the bloodshed in Yemen today," he told the Associated Press news agency. Photographs from Sanaa showed bloodstained, injured people being carried through crowds on stretchers or in men's arms. Other photos showed a row of dead bodies, with injuries which appeared to be consistent with bullet wounds, laid out in a mosque.

Yemen is one of a number of countries in the region that have seen unrest since the presidents of Egypt and Tunisia were ousted in popular revolts. Thousands of people have turned out for regular demonstrations in cities including Sanaa, Aden, Taiz and elsewhere, calling for corruption and unemployment to be tackled and demanding the president step down. Some 40% of the population live on $2 (1.20 pounds) a day or less in the country, and a third face food shortages.

When it came down to the crunch, Chancellor Angela Merkel and Foreign Minister Guido Westerwelle decided that Germany should side with China and Russia. Together, the three members of the United Nations Security Council abstained from Thursday's vote on a resolution to impose a no-fly zone on Libya. It is a curious political development, to say the least.

The trio makes for strange bedfellows. There is Germany, a democracy which puts great store in the rule of law and human rights, siding with a communist, one-party dictatorship and a country with a dubious track record on political freedoms. On the other side are Germany's traditional allies - the United States, France and Britain - not to mention parts of the Arab and African world. Lebanon had been one of the countries presenting the resolution, which was backed by the Arab League. Qatar and the United Arab Emirates have already said they would take part in a military operation, according to UN diplomats.

And despite the Libyan regime's move on Friday afternoon to declare a cease-fire - at least for now - and inviting international observers into the country, Berlin's move could have lasting repercussions. Although Berlin has not blocked military action by abstaining, the German government has marginalized itself. It is effectively telling its allies: You will have to deal with this one alone - we're not going to help you.

Workers also sprayed water on the No.3 reactor, the most critical of the plant's six. It was the first time the facility operator had acknowledged burying the sprawling 40-year-old complex was possible, a sign that piecemeal actions such as dumping water from military helicopters or scrambling to restart cooling pumps may not work. "It is not impossible to encase the reactors in concrete. But our priority right now is to try and cool them down first," an official from the plant operator, Tokyo Electric Power Co, told a news conference.

Even if engineers restore power at the Fukushima Daiichi plant, the pumps may be too damaged from the earthquake, tsunami or subsequent explosions to work. The first step is to restore power to pumps for reactors No. 1 and 2, and possibly 4, by Saturday, said Hidehiko Nishiyama, Japan's nuclear safety agency spokesman.

And in the rebel-controlled east, the government declaration was dismissed as a ruse or a sign Gaddafi was desperate. "We have to be very cautious. He is now starting to be afraid, but on the ground the threat has not changed," a French spokesman said. Britain, like France a strong advocate of armed action, said it would judge Gaddafi by "actions, not his words".

Turkey, an opponent of military action, said the ceasefire should go into effect immediately. "We decided on an immediate ceasefire and on an immediate stop to all military operations," Libyan Foreign Minister Moussa Koussa told reporters in Tripoli on Friday, after the UN Security Council passed a resolution authorising military action.

He called for dialogue with all sides. Gaddafi had vowed to show "no mercy, no pity" on Thursday, and rebels pleaded for foreign aid before time ran out.

The crisis was prompted by last week's huge quake and tsunami, which has left at least 17,000 people dead or missing. Japanese nuclear officials said core damage to reactors 2 and 3 had prompted the raising of the severity grade. The 1979 incident at Three Mile Island in the US was also rated at five on the scale, whereas the 1986 Chernobyl disaster was rated at seven.

Further heavy snowfall overnight all but ended hopes of rescuing anyone else from the rubble after the 9.0-magnitude quake and tsunami. Millions of people have been affected by the disaster - many survivors have been left without water, electricity, fuel or enough food; hundreds of thousands are homeless.

Fractured Fukushima

Reactor 1: Fuel rods damaged after explosion last Saturday

Reactor 2: Damage to the core, prompted by a blast on Tues, helped prompt raising of the nuclear alert level

Reactor 3: Contains plutonium, core damaged by explosion on Monday; roof blown off building; water level in fuel pools said to be dangerously low

Reactor 4: Hit by explosion on Tuesday, fire on Wednesday; roof blown off building; water level in fuel pools said to be dangerously low

Reactors 5 & 6: Spent fuel pool temperatures way above normal levels

It was passed as troops loyal to Libyan leader Muammar Gaddafi advanced on the rebel-held second city of Benghazi. Before the announcement of the ceasefire, heavy fighting between pro-Gaddafi forces and rebels was reported to be continuing. Rebels said government forces had also been bombarding the western city of Misrata, and there are unconfirmed claims that this has continued despite the ceasefire announcement.

UN Security Council Resolution 1973 gave broad backing to taking military action against all threats to civilians, which could include bombing Colonel Gaddafi's forces on the ground if necessary. Ms Kussa said Libya, as a member of the UN, was "obliged to accept the UN Security Council's resolutions".

The ceasefire announcement came only hours after Colonel Gaddafi had insisted that the Security Council had "no mandate" for such a resolution, "which we absolutely do not recognise. This is not a war between two countries that permits the council to intervene," he said in an interview on Portuguese television. The UN Charter "does not permit interference in domestic affairs", he added. The Libyan military had previously warned that civilian and military activities in the Mediterranean would become "the target of a Libyan counter-attack" following any foreign operation.

Critics said it was further evidence that banks had become divorced from reality, especially in the wake of RBS's 1.1 billion pounds financial loss. The bank's annual report revealed that 323 'key staff' shared a pay and bonus pot of 375 million pounds last year. More than 100 employees made seven-figure sums and the overall average was 1.16 million pounds each - 46 times the national average salary of 25,000 pounds. Ellen Alemany, chief executive of RBS's American arm Citizens, was on 1.78 million pounds - a salary swollen to 7.5 million pounds by bonus and pension payments.

David Cameron, who is on 142,500 pounds, and his entire Cabinet put together are paid less than half that sum. RBS boss Stephen Hester picked up 7.7 million pounds.

Last night, Lord Oakeshott, former Liberal Democrat Treasury spokesman, said: 'It is high time that RBS got a grip on the biggest supporting cast since Ben Hur.'

The warning was issued after America formally backed a joint British and French initiative for a no-fly zone over Libya and other military action against Colonel Gaddafi's regime. Amid growing international concern at the deteriorating situation in the country, the first bombing raids, possibly by unmanned drones, could happen as early as today. There were reports last night that the first attacks would be unilateral actions by British and French air forces with logistical support from Arab states.

The United Nations was meeting to discuss the plan as Colonel Gaddafi's troops massed on the outskirts of Benghazi, the last stronghold of rebel fighters. Hillary Clinton, the US Secretary of State, said that a no-fly zone would involve bombing ground targets. "A no-fly zone requires certain actions taken to protect the planes and the pilots, including bombing targets like the Libyan defence systems," she said during a visit to Tunisia.

"Gaddafi must go," she added, calling him "a ruthless dictator that has no conscience and will destroy anyone or anything in his way." In a statement, the Libyan defence ministry warned of swift retaliation against foreign intervention. "Any foreign military act against Libya will expose all air and maritime traffic in the Mediterranean Sea to danger and civilian and military [facilities] will become targets of Libya's counter-attack," it said.

Three reactors have had at least partial meltdowns at the Fukushima Daiichi plant, where wisps of white steam rose from the stricken units Friday morning. But Japanese and US officials believe a greater danger exists in the pools used to store spent nuclear fuel: Fuel rods in one pool were believed to be at least partially exposed, if not dry, and others were in danger. Without water, the rods could heat up and spew radiation.

It could take days and "possibly weeks" to get the complex under control, US Nuclear Regulatory Commission Chairman Gregory Jazcko said. He defended the US decision to recommend a 50-mile evacuation zone for its citizens, a much stronger measure than Japan has taken.

A senior official with the UN's nuclear safety agency said there had been "no significant worsening" at the nuclear plant but that the situation remained "very serious." Graham Andrew told reporters in Vienna that nuclear fuel rods in two reactors were only about half covered with water, and in a third they were also not completely submerged.

The resolution, approved with the backing of the United States, France and Britain, imposed a no-fly zone over Libya and authorized force short of a ground offensive to protect its people from Gaddafi's forces. The UN action bans all flights in Libyan airspace in order to protect civilians. While it was unclear how the West might proceed, US Secretary of State Hillary Rodham Clinton said earlier in the day that a no-fly zone would require bombing targets inside Libya, including some of its defense systems.

Gaddafi, calling in to Libyan television on Thursday, said his forces would "rescue" the people of Benghazi, the Mediterranean port city that has become the capital and staging ground for the opposition. For those who resist, Gaddafi said, there would be "no mercy or compassion. This is your happy day, we will destroy your enemies," he said, warning the people of Benghazi not to stand alongside the opposition. "Prepare for this moment to get rid of the traitors. Tomorrow we will show the world, to see if the city is one of traitors or heroes."

His ground forces were still about 80 miles south of the city on Thursday evening Libya time, so it was unclear whether they would move on the city as quickly as he suggested. Speaking moments before in an interview with Portuguese television broadcast just before the vote at the UN, Gaddafi pledged to respond harshly to UN-sponsored attacks. "If the world is crazy," he said, "we will be crazy, too."

At the UN headquarters in New York, the vote was 10-0. The United States, France and Britain had all pushed for speedy approval. "We had said all along that Gaddafi must go," said British Foreign Secretary William Hague. "It is necessary to take these measures to avoid greater bloodshed." Five nations abstained, including Russia and China, which hold veto power on the council.

Light, sweet crude for April delivery settled up $3.44, or 3.5%, at $101.42 a barrel on the New York Mercantile Exchange, settling above $100 for the first time since Monday. May Brent crude on the ICE futures exchange recently rose $4.30 per barrel, or 3.9%, to settle at $114.90 a barrel.

Witnesses also said Hamas police cut electricity and communications for the square and surrounding area before the raid, and that a number of senior Hamas members, including members of the Legislative Council led by Yahya Moussa, were involved in encircling the protesters along with the security forces. During the crack-down Hamas used batons, rubber bullets, and tear gas, according to the official Palestine News & Information Agency.

The demonstration, staged a day after tens of thousands in Gaza and Judea and Samaria took to the streets to demand an end to the schism between Hamas and their Fatah archrivals, who dominate the Palestinian Authority, was organized by "Enough," a student group at Gaza's Al-Zahar University. In addition to the crack-down at Al-Katiba Square, Hamas police attacked students at Al-Zahar University who were departing to attend the Al-Katiba rally. At least ten students were taken to the hospital after being assaulted by security forces, with another 20 being taken into custody, after Hamas police forced their way into the University's administrative offices.

A spokesman for the Hamas-run Interior Ministry in Gaza denied police had entered the university. "What happened at the university was a problem between students," Ihab al-Ghussein told the press. However, witnesses at the scene, including an AFP photographer, reported police were still blocking the gates, preventing anyone from leaving or entering university premises.

Hamas' strong response to dissent is not a surprise. Attempts by Arabs in areas administered by Fatah and Hamas have faced strong opposition to organizing protests in the wake of the political upheaval shaking the region.

Why has the country now put 68 journalists behind bars and why do Turkey's press associations describe an atmosphere that calls to mind the era of Joseph McCarthy's Communist witch-hunts? What crimes are these journalists actually being accused of by the government? In Sik and Sener's case, prosecutor Zekeriya Oz himself commented on the case. The journalists' arrests, according to Oz, had nothing to do with articles they wrote, but rather with findings in connection with the so-called Ergenekon case.

This case, which a court in Silivri, west of Istanbul, has been hearing for the past two and a half years, concerns a supposed group of conspirators accused of plotting a coup against Erdogan's government. The most spectacular criminal case in Turkey's recent history, it has seen the arrest of more than 200 suspects, including army officers, politicians and professors. Many of these alleged Ergenekon members are considered to be ultranationalists, said to have been waiting for a chance to strike in tandem with like-minded forces within the army, but then caught by the police in the nick of time.

The existence of this ominous secret society, though, remains unproven. All three indictments contain gaping holes. And "due to the need for confidentiality," says Oz, the chief prosecutor for the case, it isn't currently possible for him to make the evidence public. The pool of suspects seems to widen inexorably, casting serious doubts on the legitimacy of the Ergenekon case. Many in Turkey wonder if the prime minister might be misusing the investigations as a way to intimidate his opponents.

The AKP may have been especially upset about Sik's research into the Fethullah Gulen movement, an Islamic network he believes has penetrated the country's security apparatus, which in turn further strengthened the conviction on the part of the AKP's opponents that the party has remained truer to its Islamist roots than it pretends. "Journalists who dig too deep always have problems in Turkey," Kurkcu says.

While a country as rich as Japan was well able to bear the cost, it still represented a terrible loss of wealth. "Earthquakes not only curb effective demand, through consumption and capex, but also lower potential growth through damages to tangible fixed assets and human capital," said Kyohei Morita, at Barclays Capital, in a note to clients.

Compounding the pain, losses from the quake had been far outstripped by wealth wiped out in the stock market, with over $600 billion lost at one stage on Tuesday. Adding to concerns about the economic impact of the disaster, the yen shot to record highs on the US dollar early on Thursday, making Japan's exports less competitive when it had been counting on an export-led rebound.

Also unforeseen by analysts was the sheer uncertainty generated by the crisis at the Fukushima nuclear plant and the resulting loss of power to so many factories and homes. Millions of people have been told to stay at home because of the danger of radiation, while rolling blackouts are playing havoc with the usually super-reliable transport system. "As consumers become even more careful and increase precautionary saving for rainy days, that will sharply weigh on consumption," said Kato at Credit Agricole.

The King of Saudi Arabia and the other absolute monarchs of the Persian Gulf coast are united in wanting to crush the increasingly vociferous opposition to Bahraini King Hamad. Mostly inherited monarchies, they watch the violence in Bahrain with unease because they know what impact it could eventually have on their own positions. Saudi Arabia and the United Arab Emirates have duly sent troops to help crack down on the trouble.

In particular, the 7,000 Saudi princes who make up the House of Saud will not surrender their opulent lifestyles without a fight - and for them it is better to fight in Bahrain than back home in Riyadh. But their reasons are not simply solidarity among kings. There is another more pressing reason for neighbouring Gulf countries to step in and help crush the Bahraini popular opposition. For the island of Bahrain is right on the fault line that separates the two opposing branches of Islam: Sunni and Shia.

The great fear of the Sunni regional powers and the West in general is that Iran will manipulate the unrest to increase its regional influence. The protesters in Bahrain are demanding democracy and the creation of a republic. Reasonable enough, you might think, after decades of absolute rule under the fundamentalist royal family. But what should terrify the West is that the Shiite model for a democratic republic is the Islamic Republic of Iran.

Should Shiite unrest in Bahrain tip over into Saudi Arabia, the West's oil supply could become seriously threatened. There is talk of oil prices doubling from the current record highs to $200 a barrel and beyond. Bahrain is also the Middle Eastern base for America's Naval 5th Fleet, made up of 3,000 military personnel who oversee 30 naval ships, along with 30,000 sailors who patrol the Persian Gulf and Arabian and Red Seas.

The fleet is vital in ensuring that the region's Straits of Hormuz remain open, for the simple reason that 40 per cent of the world's oil traffic pass through them. Bahrain's proximity to Iran also makes it a crucial area from which the Americans can watch Iran. Should Washington attempt to derail Iran's nuclear ambitions - as it may have to at some stage - Bahrain would be the base for any strikes.

If the wave of revolution continues across the Gulf, the worst case scenario is that fundamentalist Iran could step in to try to gain control of the region