"As we work closely with our democratic ally, Israel, we must take into account the risks it will face in any peace agreement," 76 OF THE 100 SENATORS WROTE OBAMA in a letter released to reporters. "Without a doubt, our two governments will agree on some issues and disagree on others, but the United States friendship with Israel requires that we work closely together as we recommit ourselves to our historic role of a trusted friend and active mediator," they wrote.

Democratic Senators Christopher Dodd and Arlen Specter as well as Republican Senators Johnny Isakson and John Thune were the lead authors of the letter, which came one day after Obama met with Israeli Prime Minister Benjamin Netanyahu. "While the obstacles are formidable, we agree with you that every effort should be made to realize that peace," the lawmakers wrote Obama.

"We must also continue to insist on THE ABSOLUTE PALESTINIAN COMMITMENT TO ENDING TERRORIST VIOLENCE and to building the institutions necessary for a viable Palestinian state living side-by-side, in peace with the Jewish state of Israel," they said. "The more capable and responsible Palestinian forces become, the more they demonstrate the ability to govern and to maintain security, the easier it will be for them to reach an accord with Israel," they said, urging Obama to sustain programs of US security assistance and training for the Palestinians.

The senators also urged Obama to "promote far greater involvement and participation by the Arab states both in moving toward normal ties with Israel and in encouraging moderate Palestinian elements. Everyone in the region has a stake in the success of these negotiations and should contribute to a lasting and comprehensive resolution," they wrote.

The announcement will not reassure the U.S. government, coming just two days after President Barack Obama declared a readiness to seek deeper international sanctions against Iran if it shunned U.S. attempts to open negotiations on its nuclear program. Obama said he expected a positive response to his outreach for opening a dialogue with Iran by the end of the year.

"Defense Minister (Mostafa Mohammad Najjar) has informed me that the Sajjil-2 missile, which has very advanced technology, was launched from Semnan and it landed precisely on the target," state radio quoted Ahmadinejad as saying. He spoke during a visit to the city of Semnan, 125 miles east of the capital Tehran, where Iran's space program is centered.

Iran's nuclear and missile programs have alarmed Israel, and the country's new prime minister, Benjamin Netanyahu, pressed Obama to step up pressure on Tehran when the two met in Washington on Monday. Ahmadinejad has repeatedly called for Israel's elimination, and the Jewish state has not ruled out a military strike to deal with the Iranian nuclear threat.

Analysts remain optimistic that China will be the first to make its way out of recession. For those Chinese factory owners who send most of their products abroad, there is little relief in these latest trade figures. Some had hoped the worst was over for exporters, but the 22.6% fall was greater than many analysts had expected. On the other hand, investment in industrial plants and property in cities was 30% higher in the first four months of the year than it had been in the same period of 2008.

In recent months, the government has encouraged banks to lend huge amounts to businesses to help them get through the downturn. That money has being spent on new equipment as well as massive infrastructure projects.

Japan's economy, which depends heavily on exports, has been hit hard by the global downturn. But economists predict a modest growth in the coming months, after a small rise in production in March. The figures from the Cabinet Office show that this is the fourth quarterly fall in gross domestic product (GDP) in a row, after a 3.8% contraction between October and December 2008.

The BBC's Roland Buerk in Tokyo says people around the world are buying fewer of the cars and electronic gadgets that Japan is renowned for. In the first quarter of this year, Japanese exports declined by 26%. "Weakness in the corporate sector is gradually spreading to households," Prime Minister Taro Aso said during a budget hearing to Parliament. "This is a very serious situation, so we need to respond appropriately."

The potential threat is detailed in a study appearing in the journal LANCET INFECTIOUS DISEASES. The researchers, from Emory University School of Medicine in Atlanta, say death rates following infection may be higher than 50%. They warn the emergence of swine flu could intensify the problem, as CA-MRSA appears to strike people who are already ill with flu.

MRSA infections can range from boils to more severe infections of the blood, lungs and sites of surgery. Most occur in healthcare settings, such as hospitals or nursing homes. But the latest study warns that community-acquired cases are beginning to increase. Writing in the journal, the researchers said: "Community-acquired MRSA infections are no longer restricted to certain risk groups or to the geographic areas where outbreaks first occurred. They now occur widely both in the community as well as health care facilities and have been reported on every continent."

Professor Richard James, of the University of Nottingham, said: "The threat from CA-MRSA in the USA is very serious concern, especially if there is a flu epidemic as this could trigger a large number of cases of necrotizing pneumonia, which has a mortality rate of more than 50% in 72 hours. The concern is that this may be the start of an exponential increase as we saw with hospital MRSA infections in the 1990s. It took the UK 13 years to get to grips with hospital-acquired MRSA infections, WE ARE NOT EQUIPPED TO DEAL WITH LARGE NUMBERS OF CA-MRSA INFECTIONS IN THE COMMUNITY."

The Commons Fees Office, which approved the expenses claims that have brought the political system into gross disrepute, will be abolished. Gordon Brown said that Westminster would no longer operate like a gentlemen's club, making its own rules, and said that the moves would change centuries of history for Parliament. MPs' pay is set by the Senior Salaries Review Body and a new body will police expenses and enforce discipline. The Conservatives and Liberal Democrats are backing the plans in principle.

Mr Brown spoke after Mr Martin became the first Speaker in 300 years to be hounded out of office. In a 33- second speech, he said that he would relinquish the post on June 21 and the Commons would elect his successor the next day. A by-election in his seat of Glasgow North East is expected in July. His fate was sealed on Monday when he made a statement about expenses reform without referring to his own future, and was told directly by several MPs that he should quit.

The astonishing scenes destroyed his authority and by evening he had decided to go. A key moment came when Mr Brown went to see him in his office after the Commons debacle. While not telling him to go, it is believed that the Prime Minister said enough to confirm to Mr Martin that he no longer had his personal backing.

India, the other Asian giant, is only 50 miles from Sri Lanka across the waters of the Palk Straits, yet it has been shown to have far less influence on its neighbour than China. Through a combination of strategic investments in seaports and pipelines, along with direct financial and military support for friendly governments, CHINA IS BUILDING A WEB OF INFLUENCE ACROSS SOUTH ASIA. Many of Beijing's immensely ambitious projects are years away from fruition, yet the repercussions of these ventures are already being felt.

In Sri Lanka, Beijing began constructing a port in Hambantota in 2007 and the scheme is scheduled for completion in 2022. This forms the basis of China's alliance with President Mahinda Rajapaksa's government and helps explain the diplomatic support Beijing gave Sri Lanka during the war against the Tamil Tigers.

The official line is that Hambantota is only a "commercial" trading venture and the facility will handle civilian shipping and nothing else. "Any attempt to distort the facts would be invalid," said Ma Zhaoxu, a Chinese foreign ministry spokesman. But the appearance of a new Chinese port on Sri Lanka's southern coast would allow Beijing the option of using the facility as a naval base in the future. Other projects under way at strategic points across the Indian Ocean raise the same possibility.

Whatever the motives behind the inexorable extension of China's influence in Asia, however, THE BALANCE OF GLOBAL POWER HAS ALREADY CHANGED DRAMATICALLY.

The higher mileage and emissions standards set by the Obama administration on Tuesday, which begin to take effect in 2012 and are to be achieved by 2016, will transform the American car and truck fleet. The new rules would bring new cars and trucks sold in the United States to an average of 35.5 miles per gallon, about 10 mpg more than today's standards. Passenger cars will be required to get 39 mpg, light trucks 30 mpg. That means cars and trucks on American roads will have to become smaller, lighter and more efficient.

Eric Fedewa, vice president of global powertrain forecasting for the auto consulting firm CSM Worldwide in Northville, Michigan, said the changes will make pickup trucks so much more expensive that they will be used almost exclusively for work. The changes will start with smaller cars and trucks, and improvements to the internal combustion engine, Fedewa said. Automakers also already working on new technology, including direct fuel injection and high compression of the air-fuel mixture, that will make cars and trucks more efficient.

Car companies are rewiring vehicles so components such as air conditioners and power steering pumps are powered by electricity rather than by the engine, saving fuel. And they're developing computer-controlled transmissions with six or more gears, adding efficiency, and rolling out more gas-electric hybrids - among the few cars sold today that meet the 2016 standards. Of course, developing the technology will cost money - billions of dollars - and automakers will pass that on to their customers.

When it comes to government subsidies, Wendelin Wiedeking has never been shy about making his views absolutely clear. Many corporate executives, the Porsche CEO was once quoted as saying, "get on their soapboxes to rage against government spending" while at the same time "holding out their hands" for public bailout funds. He insisted that he and his company wanted nothing to do with this sort of "government drug program," and that "luxury and subsidy are incompatible."

But sometimes they are, even at Porsche. Although the carmaker is not asking for subsidies, Wiedeking recently tested the waters at the Chancellery to see if his company might qualify for a loan under the federal government's economic stimulus program. Meanwhile, Porsche Chief Financial Officer and Deputy Chairman Holger Härter paid a visit to the Frankfurt headquarters of the government-owned KfW development bank, also to explore the prospects of a government loan. The company is seeking roughly €1 billion ($1.35 billion).

Eight months after the financial crisis began to intensify, Germany is experiencing a unique type of pilgrimage. Once self-confident executives are shuffling through the main doors of KfW headquarters near Frankfurt's Palmengarten botanical gardens in ever increasing numbers. They are likewise paying visits to ministries in Berlin or to the office of the auditing firm PricewaterhouseCoopers on Potsdamer Platz square, where applications for government aid are being pre-screened. All of them are interested in assistance from the German Economic Fund, a €115 billion ($155 billion) package passed earlier this spring as part of the country's second economic stimulus program.

The discovery of the 95%-complete 'lemur monkey' - dubbed Ida - is described by experts as the "eighth wonder of the world". They say its impact on the world of palaeontology will be "somewhat like an asteroid falling down to Earth". Researchers say PROOF OF THIS TRANSITIONAL SPECIES finally confirms Charles Darwin's theory of evolution, and the then radical, outlandish ideas he came up with during his time aboard the Beagle.

Sir David Attenborough said Darwin "would have been thrilled" to have seen the fossil - and says it tells us who we are and where we came from. "This little creature is going to show us our connection with the rest of the mammals," he said. "This is the one that connects us directly with them."

"Now people can say 'okay we are primates, show us the link'. The link they would have said up to now is missing - well it's no longer missing." A team of the world's leading fossil experts, led by Professor Jorn Hurum, of Norway's National History Museum, have been secretly researching the 1ft 9in-tall young female monkey for the past two years. And now it has been transported to New York under high security and unveiled to the world during the bicentenary of Darwin's birth.

US government officials are concerned that the quality of the Global Positioning System (GPS) could begin to deteriorate as early as next year, resulting in regular blackouts and failures – or even dishing out inaccurate directions to millions of people worldwide. The warning centres on the network of GPS satellites that constantly orbit the planet and beam signals back to the ground that help pinpoint your position on the Earth's surface.

The satellites are overseen by the US Air Force, which has maintained the GPS network since the early 1990s. According to a study by the US government accountability office (GAO), mismanagement and a lack of investment means that some of the crucial GPS satellites could begin to fail as early as next year.

"It is uncertain whether the Air Force will be able to acquire new satellites in time to maintain current GPS service without interruption," said the report, presented to Congress. "If not, some military operations and some civilian users could be adversely affected."

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source. The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims. GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans. In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the US has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

Mr Martin, who will also step down as an MP, has faced criticism over his handling of the MP expenses issue. He later announced a clampdown on MPs' expenses - with a £1,250 cap on mortgage interest and rent payments. He was clapped and cheered by MPs as he announced emergency changes to the expenses system which have been agreed between the party leaders.

These include a ban on "flipping" of second homes and of using allowances to buy furniture and household goods - and a £1,250 a month cap on mortgage or rent on second homes, which will come down in future years. He said all parties were now committed to accepting the recommendations of Sir Christopher Kelly's Committee on Standards in Public Life, provided they met certain tests.

He also announced proposals to "tighten up" the administration of the expenses system with a "reasonableness" test to block dubious claims.

Update - dailymail.co.uk - MICHAEL MARTIN WILL GET A PEERAGE and a £1.4million pension pot, despite becoming the first Commons Speaker to be ousted in more than 300 years. Mr Martin will stand down as Speaker and quit as an MP on June 21 after presiding over the Commons for eight years which have brought Parliament to its lowest ebb in centuries. Parliamentarians and campaigners were angry that he should be rewarded for his failure to get to grips with the expenses scandal. Lord Oakeshott, a LibDem spokesman in the Lords, said: 'No one should pick up a peerage with his P45, least of all Mr Martin who has so damaged our democracy.'

Delivering the annual Shin Bet survey, Diskin addressed the volatile balance between rival Palestinian factions Hamas and Fatah. "A joint [Fatah-Hamas] government can only be formed through firm international pressure," the Shin Bet head said. "Hamas will never voluntarily give up its rule in the Strip, and the Palestinian Authority will never cede its control over the West Bank."

"If ballots were cast in the West Bank today, there is a good chance Hamas would win," he added. "Hamas wants to maintain the calm in order to win the time it needs to reinforce and improve its standing in the field," he said, estimating that some 300 smuggling tunnels were currently active on the Egypt-Gaza border.

They tell of the curious case of an Australian ostrich farmer who needed emergency care for lung paralysis after drinking 4-10 litres of cola a day. He made a full recovery and was advised to curtail his cola drinking. Another example included a pregnant woman who regularly consumed up to three litres a day for the last six years and complained of tiredness, appetite loss and persistent vomiting. A heart trace revealed she had an irregular heartbeat, most likely caused by her LOW BLOOD POTASSIUM LEVELS. Once she stopped drinking so much cola, she made a full and uneventful recovery. The investigators believe these cases are not atypical and that many people risk problems due to their intake.

"With aggressive mass marketing, super-sizing of soft drinks, and the effects of caffeine tolerance and dependence, there is very little doubt that tens of millions of people in industrialised countries drink at least 2-3 litres of cola per day."It follows that the serum potassium levels of these heavy cola drinkers are dropping, in some cases, to dangerous low levels."

The author of the research paper, Dr Moses Elisaf from the University of Ioannina in Greece, said it appeared that hypokalaemia can be caused by excessive consumption of three of the most common ingredients in cola drinks - GLUCOSE, FRUCTOSE AND CAFFEINE. "The individual role of each of these ingredients in the pathophysiology of cola-induced hypokalaemia has not been determined and may vary in different patients. However in most of the cases we looked at for our review, CAFFEINE INTOXICATION was thought to play the most important role. Excessive consumption has already been linked with obesity, diabetes and tooth and bone problems."