TWO OF MR. OBAMA'S POTENTIAL SUPREME COURT NOMINEES ARE OPENLY GAY; some advocates, irked that there are no gay men or lesbians in his cabinet, are mounting a campaign to influence his choice to replace Justice David H. Souter, who is retiring. Same-sex marriage is advancing in states — the latest to allow it is Maine — and a new flare-up in the District of Columbia could ultimately put the controversy in the lap of the president.

Mr. Obama's new global health initiative has infuriated activists who say he is not financing AIDS programs generously enough. And while the president has urged Congress to pass a hate crimes bill, a high priority for gay groups, he has delayed action on one of his key campaign promises, repealing the military's "don't ask, don't tell" rule.

Social issues like same-sex marriage bring together deeply held principles and flashpoint politics, and many gay activists, aware that Mr. Obama is also dealing with enormous challenges at home and overseas, have counseled patience. But some are unsettled by what they see as the president's cautious approach

"We've elected probably the most pro-gay president in history; he's very good on the issues but he is not good on gay marriage," said Steven Elmendorf, a gay Democratic lobbyist. "From the gay community's perspective, he and a lot of other elected officials are wrong on this. My view is that over time, they're going to realize they're wrong and they're going to change."

Those concerns would escalate if the H1N1 virus that has killed two people in the United States and made 642 others sick mutates into a more virulent form by the start of the traditional flu season in the fall. "The risk of complacency, or a sense that we have weathered this, is a serious one," said Stephen Redd, director of Influenza Coordination at the U.S. Centers for Disease Control and Prevention in Atlanta. "What we are going to be looking very hard at over the months to come is what's happening in other parts of the world and really trying to understand whether we would be at risk for a resurgence in the fall," Redd said.

At the CDC, researchers are monitoring the virus to see if it could mutate into a more deadly strain. THEY ARE CONSCIOUS OF A HISTORIC PARALLEL - IN 1918, A RELATIVELY MILD FLU PANDEMIC EMERGED, ONLY TO RETURN WITH A VENGEANCE MONTHS LATER TO KILL MILLIONS.

"I will be coming among you as a pilgrim of peace," the Pope told them at the end of today's general audience in St Peter's Square. And he promised them that he would be praying for peace for their families. "I wish this morning to take the opportunity through this radio and television broadcast to greet all the peoples of those lands," the [Pontiff] said. "I am eagerly looking forward to being with you and to sharing with you your aspirations and hopes as well as your pains and struggles."

He continued, "My primary intention is to visit the places made holy by the life of Jesus, and, to pray at them for the gift of peace and unity for your families, and all those for whom the Holy Land and the Middle East is home." Benedict XVI noted that he will be meeting with representatives of Muslim and Jewish communities, saying that "great strides have been made in dialogue and cultural exchange" with them.

Adecco, which has an office in The Kingsway, is recruiting on behalf of one of its Swansea clients for 500 inbound call handlers. The firm has refused to reveal its client's name or where it is based in the city. But it is thought that workers could start as early as next week to take calls from the public in response to concerns over swine flu.

It is the latest boost to the local economy caused by the disease. Last week the Post revealed that an overwhelming demand for disposable face masks in the wake of the outbreak had seen sales go through the roof.

The report reflects the president's swift action on the Middle East since he was elected last November. President Obama's major proposed alteration in the Saudi peace plan is for Arab countries to grant citizenship to approximately five million Arabs who are descendants of former Israelis while allowing them the right to move to a new Palestinian Authority country.

Israel and the US should be focusing more on the Taliban's rise in nuclear Pakistan than on Iran's nuclear aims, more and more experts are saying. Bolton, writing in The Wall Street Journal on Monday, warns that the U.S. must take "hard steps" to prevent Pakistan's nuclear arsenal from falling into the hands of Taliban. U.S. President Barack Obama's statement of confidence last week that the nuclear arsenal will not fall to the terrorists is "not reassuring," Bolton writes, "in light of the Taliban's military and political gains throughout Pakistan."

THERE IS A "TANGIBLE RISK THAT SEVERAL WEAPONS COULD SLIP OUT OF MILITARY CONTROL," Bolton warns. "Such weapons could then find their way to Al Qaeda or other terrorists, with obvious global implications." Even graver is the possibility that Pakistan's government could collapse entirely, enabling "a well-organized, tightly disciplined group to seize control of the entire Pakistani government."

"To prevent either scenario, Pakistan must move to the top of our strategic agenda, albeit closely related to Afghanistan," he wrote. "Neither greater economic assistance, nor more civilian advisers upcountry, nor stronger democratic institutions will eliminate the strategic threat nearly soon enough… We must strengthen pro-American elements in Pakistan's military so they can purge dangerous Islamicists from their ranks; roll back Taliban advances; and, together with our increased efforts in Afghanistan, decisively defeat the militants on either side of the border."

The Saudi plan calls for them to be allowed to immigrate to Israel, a suggestion that virtually every Israeli leader categorically rejects. President Obama also reportedly told the king that he wants the United Nations flag raised over holy sites in eastern Jerusalem, where the PA would have total sovereignty under the Saudi plan.

The president's master plan calls for Arab countries to set a timetable for raising the Israeli flag in their capitals, A SIGN OF RECOGNITION OF THE JEWISH STATE. Simultaneously, the PA flag would be raised in Jerusalem neighbourhoods, a move that would virtually make the Fatah-led government the de facto government in a significant portion of the Jewish capital.

White House Chief of Staff Rahm Emanuel, whose father was an underground fighter in pre-state Israel during the British Mandate, has said he is anxious to arrange an Arab-Israel peace ceremony, as he did during the Clinton administration. It was Rahm Emanuel who staged the handshake between former Israeli Prime Minister Yitzchak Rabin and Yasser Arafat, then-head of the Palestine Liberation Organization that he founded as a terrorist group.

Father Lombardi contended that this king is offering a noteworthy contribution to interreligious dialogue through various initiatives. He pointed to his Amman Message, encouraging the Islamic world to leave aside extremism, and the Amman Interfaith Message, directed primarily to Christians and Jews and inviting the promotion of peace and values shared among the religions.

The Vatican spokesman further noted that one of King Abdallah's advisors is Ghazi bin Muhammad, who coordinated the initiative from 138 Muslim scholars who responded to 2006 attacks against the Pope following his address in Regensburg. It was this group who wrote "A Common Word," which eventually led to the formation of the Catholic-Muslim Forum in Rome.

U.S. homes lost $704 billion in value during the first quarter and have DEPRECIATED $3.8 TRILLION IN THE PAST 12 MONTHS, according to analysis of the reports. Declining home values left 28.9 percent of all American homeowners with negative equity by the end of the first quarter, Zillow said.

"Moreover, the additional information we have this quarter on 'shadow inventory,' with one-third of homeowners indicating they would like to put their home on the market if conditions improve, confirms our earlier fears that A BOTTOM IN HOME VALUES COULD BE QUITE PROTRACTED."

"By our calculations, this could translate into as many as 20 million homes that could seep into the market as prices stabilize, maintaining a constant stream of supply that far outpaces demand, thus keeping prices flat. I'm doubtful that we'll see the bottom until 2010, and thereafter it's increasingly clear that we're likely to have a long bottom before we see meaningful recovery in home values," Humphries said. Of all transactions is the past 12 months, 20.4 PERCENT WERE FORECLOSURES

Savage told The Chronicle in an exclusive interview this morning that he was shocked to learn the news that he was included in the British government's first-ever list of nearly two dozen people from across the globe who are banned from entering the nation for allegedly fostering extremism or hatred.

The list of high-profile banned visitors was released by HOME SECRETARY JACQUI SMITH, who published 16 of the 22 names of people banned from the country since October. They include Muslim extremists, jailed Russian gang members and an Israeli settler. Savage, who broadcasts from San Francisco on KNEW - and reaches an estimated 8 to 10 million listeners on more than 350 stations nationwide, according to industry publications - has made news for calling the Quran, the Muslim holy book, a "book of hate."

Savage told The Chronicle that being included in such a crowd is no laughing matter - and he is now preparing legal action against Smith, he said. "This lunatic… is linking me up with Nazi skinheads who are killing people in Russia, she's putting me in a league with Hamas murderers who kill Jews on buses," he said. "I have never advocated violence… I've been on the air 15 years. My views may be inflammatory, but they're not violent in any way."

He said he has been defamed and endangered by the British government action. "She has painted a target on my back, linking me with people who are in prison for killing people," he said. "Does she not think people might hunt me down? Is it the government's investigation? Who did this? If she didn't draw it up, who did?" he said. But he said that even liberals should be disturbed at the move by the British government taken this week because they should wonder 'who's next?' But now "who else will be banned - all the people who listen to my show, 10 million people? Should they also not go to Britain?"

About 180,000 people across eight states are reported to have had to leave their homes. More than 190 towns and cities have been badly affected by the floods. For weeks, heavy rain has been causing extensive problems across the north-east of Brazil, A REGION MORE OFTEN ASSOCIATED WITH THE DIFFICULTIES CAUSED BY DROUGHT.

In the state of Maranhao 130,000 people are said to have been affected by flooding. Many families are either losing their homes or being forced to seek temporary shelter. A number of important roads in the region are impassable, and the army has been using boats to help people reach their destinations. Such is the size of Brazil that in the south of the country the problem is exactly the opposite - 95 TOWNS AND CITIES ARE NOW REPORTED TO BE FACING A CRISIS BECAUSE OF A LACK OF RAIN.

In a speech Tuesday to the leading pro-Israel lobby in the United States, Biden said Israeli Prime Minister Benjamin Netanyahu's government should stop constructing new Jewish settlements and ease restrictions on Palestinians. "Israel has to work toward a two-state solution," Biden told the annual policy conference of the American Israel Public Affairs Committee. "You're not going to like my saying this, but not build more settlements, dismantle existing outposts and allow Palestinians freedom of movement."

Biden also urged the Palestinians to meet their obligations to the so-called "road map" for peace and said neighboring Arab states need to make "meaningful gestures" toward peace with Israel. He said the U.S. would never abandon its commitment to Israel's security.

"That is not negotiable, that is not a matter of change," he said, adding that the Obama administration's desire to engage with Iran would not compromise Israel's security.

Whites and blacks, Christians and Jews, Cubans and Mexicans, along with tax-hating Americans were among several political leanings listed in the "Domestic Extremism Lexicon" that came out of the Office of Intelligence and Analysis (I&A) in late March.

The lexicon lists definitions for key terms and phrases used by Homeland Security analysts "that addresses the nature and scope of the threat that domestic, non-Islamic extremism poses to the United States," the report said. Under the listing "antiabortion extremism," the lexicon cites a movement that "advocates violence against providers of abortion-related services." It notes that some people in the movement "cite various racist and anti-Semitic beliefs to justify their criminal activities."

"The lexicon was not an authorized I&A product, and it was recalled as soon as management discovered it had been released without authorization," said Amy Kudwa, Homeland Security spokeswoman. "This product is not, nor was it ever, in operational use," Ms. Kudwa said.

Israeli TV stations had reported Monday night that Emanuel had actually linked the two matters, saying that the efforts to stop Iran hinged on peace talks with the Palestinians. The remarks were reportedly made in a closed-door meeting previous day with 300 major AIPAC donors on Sunday.

Last month, US Secretary of State Hillary Clinton warned Israel that it risks losing Arab support for combating threats from Iran if it rejects peace negotiations with the Palestinians. Clinton said Arab nations had conditioned helping Israel counter Iran on Jerusalem's commitment to the peace process.

Meanwhile, in an interview with the Jerusalem Post on Sunday, former US House speaker Newt Gingrich blasted the Obama administration for setting itself on a collision course with Israel and endangering the Jewish state. He called US President Barack Obama's program of engagement with Iran a "fantasy," and his Middle East policies "very dangerous for Israel." He summed up Obama's approach as "the clearest adoption of weakness since Jimmy Carter."

But in testimony to Congress' Joint Economic Committee, Bernanke warned that even after a recovery gets under way, economic activity is likely to be subpar. That means businesses will stay cautious about hiring, driving up the nation's unemployment rate and causing "further sizable job losses" in the coming months, he said.

The recession, which started in December 2007, already has snatched a net total of 5.1 million jobs. The unemployment rate "could remain high for a time, even after economic growth resumes," Bernanke said. In the months ahead, consumer spending should be lifted by tax cuts contained in President Barack Obama's larger $787 billion stimulus package. Still, rising unemployment, sinking home values and cracked nest eggs will still weigh on consumers willingness to spend freely, Bernanke said.

Khushal Khan says authorities are lifting a curfew on Tuesday so that people can leave Swat Valley's main town of Mingora. Khan is the top government official in Swat.

He says people should flee for their own safety because Taliban militants were roaming the area and planting mines and security forces may be forced to retaliate. He wouldn't say whether an army offensive - which would spell the end of the peace pact - was imminent.