The panel is to draw up changes at a breakneck pace - within 10 days - to end the monopoly that ousted President Hosni Mubarak's ruling party once held, which it ensured through widespread election rigging. The initial changes may not be enough for many in Egypt calling for the current constitution, now suspended by the military, to be thrown out completely and rewritten to ensure no one can once again establish autocratic rule. Two members on the panel said the next elected government could further change the document if it choses.

The military's choices for the panel's makeup were a sign of the new political legitimacy of the Muslim Brotherhood, the fundamentalist group that was the most bitter rival of Mubarak's regime. Among the panel's members is Sobhi Saleh, a former lawmaker from the Brotherhood seen as part of its reformist wing.

The eight-member committee, which met with Defense Minister Hussein Tantawi on Tuesday, also includes a Christian supreme court judge, along with other judges and legal experts, one of its members Mohammed Hassanein Abdel-Al, a legal scholar told The Associated Press. The panel is headed by Tareq el-Bishri, a widely respected former judge and scholar who was once a secular leftist but later became one of the most foremost thinkers of what Egyptians refer to as the "moderate Islamic" political trend and is seen as a bridge between the movements.

The Two faces of the Brotherhood:

Moaz Abdel Karim, an affable 29-year-old who was among a handful of young activists who plotted the recent protests here, is the newest face of the Muslim Brotherhood. His political views on women's rights, religious freedom and political pluralism mesh with Western democratic values. He is focused on the fight for democracy and human rights in Egypt.

A different face of the Brotherhood is that of Mohamed Badi, 66-year-old veterinarian from the Brotherhood's conservative wing who has been the group's Supreme Guide since last January. He recently pledged the Brotherhood would "continue to raise the banner of jihad" against the Jews, which he called the group's "first and foremost enemies." He has railed against American imperialism, and calls for the establishment of an Islamic state.

Israel, which shares a long and porous border with Egypt, fears that if a moderate wing of the Brotherhood exists - and many in Israel's leadership are skeptical that it does - it could be shoved aside by more extreme factions within the group.

The Brotherhood's conservative wing has for years put out anti-Israel comments and writings, and helped fund Hamas, the Palestinian militant group. It has also spoken out in support of attacks against US soldiers in Iraq and Afghanistan.

"If the Muslim Brotherhood comes to power, through elections or some other way, that would be a repeat of 1979 in Iran," when moderate governments installed after the shah gave way to the ayatollahs, says a senior Israeli official. "It's something we're looking at with great caution."

A call has been put out on the internet for protests across Libya on Thursday. There is no independent confirmation of the overnight protests in Benghazi, but eyewitnesses say that at one stage some 2,000 people were involved. They say stones were thrown at police who are said to have responded with water cannon, tear gas and rubber bullets. Later, state television showed pictures of several hundred people in Benghazi voicing their support for the government. The government has so far not commented on events in the city.

The Middle East has seen a wave of protests fuelled by discontent over unemployment, rising living costs, corruption and autocratic leaderships. They began with the overthrow of Tunisia's leader, Zine al-Abidine Ben Ali, in January. Last week, President Hosni Mubarak of Egypt resigned. In recent days there have also been anti-government demonstrations in Yemen, Bahrain, and Iran.

Plastic bullets and tear gas were used to try and disperse large crowds in major cities and towns, with 30,000 riot police taking to the streets in Algiers alone. There were also reports of journalists being targeted by state-sponsored thugs to stop reports of the disturbances being broadcast to the outside world.

But it was the government attack on the internet which was of particular significance to those calling for an end to President Abdelaziz Boutifleka's repressive regime. Protesters mobilising through the internet were largely credited with bringing about revolutions in Egypt and Tunisia. "The government doesn't want us forming crowds through the internet," said Rachid Salem, of Co-ordination for Democratic Change in Algeria.

"Security forces are armed to the teeth out on the street, and they're also doing everything to crush our uprising on the internet. Journalists, and especially those with cameras, are being taken away by the police." President Hosni Mubarak had tried to shut down internet service providers during 18 days of protest before stepping down as Egyptian leader on Friday. Mostafa Boshashi, head of the Algerian League for Human Rights, said: "Algerians want their voices to be heard too. They want democratic change."

This man is a word machine, a one-man talk show that leaves no subject unexamined. Youssef al-Qaradawi has to talk: about former Egyptian President Hosni Mubarak, about mothers' milk banks, and about the right of Palestinian women to blow themselves up. He is a driven man.

There are so many decisions to be made in this godforsaken modern age, and yet there is only one mufti, only one Islamic scholar like Qaradawi, who knew the Koran by heart by the time he was 10, only one man who can help the faithful understand the world.

Qaradawi is the father figure of Egypt's Muslim Brotherhood, the country's best-organized opposition group. The Brotherhood is sure to play a part in deciding what path Egypt will now take. Qaradawi advocates establishing a "UNITED MUSLIM NATIONS" as a contemporary form of the caliphate and the only alternative to the hegemony of the West. He hates Israel and would love to take up arms himself. In one of his sermons, he asked God "to kill the Jewish Zionists, every last one of them."

In January 2009, he said: "Throughout history, Allah has imposed upon the [Jews] people who would punish them for their corruption. The last punishment was carried out by Adolf Hitler."

The CPI figure is the highest since November 2008, and will put pressure on the Bank of England to lift interest rates to curb accelerating inflation. The CPI measure has now been one percentage point or more above target for 14 months.

Bank of England governor Mervyn King has now written to the government, after sending three such letters last year, explaining the outlook for inflation and what will be done to tackle it.

In his letter he says inflation is likely to rise towards 5% in the coming months. Referring to expected interest rate increases, he added: "The MPC's central judgement, under the assumption that Bank rate increases in line with market expectations, remains that inflation will fall back so that it is about as likely to be above the target as below it two to three years ahead."

While that day seems distant now, some economists and market analysts have even begun pondering the unthinkable: could the vaunted Fed, the world's most powerful central bank, become insolvent? Almost by definition, the answer is no.

As the monetary authority, the central bank is the master of the printing press. It can literally conjure up money at will, and arguably did exactly that when it bought about $2 trillion of mortgage-backed securities and US Treasuries to push down borrowing costs and boost the economy.

The Fed's unorthodox steps helped it generate record profits in 2010, allowing it to send $78.4 billion to the US Treasury Department. But its swollen balance sheet leaves the central bank unusually exposed to possible credit losses that could create a major headache at a time of increasing political encroachment on the Fed's independence.

As events in Egypt gathered pace, human rights activists in Bahrain called for a day of rage on 14 February. The result on Monday was sporadic protests in Shia villages across the island and attempts to create a "Tahrir Square movement" in central Manama, the capital. Footage shot by protesters and posted on the internet shows riot police attacking peaceful demonstrators with tear gas and rubber bullets.

Thus far, the government is continuing to respond with harsh tactics. Dozens of protesters have been wounded and two killed. A 21-year-old man died on Monday after being hit by a rubber bullet. On Tuesday, at a funeral march to protest against his killing, a second man was hit by a shotgun blast and died. The demonstrators, many waving the Bahraini flag, are calling for a new constitution, the release of hundreds of Shia men and boys who have been rounded up since August 2010 and an end to civil rights abuses.

Journalist Reem Khalifa, a senior editor with the Bahraini newspaper Al Wasat, says this time the protests are different. "Young Sunni and Shia are marching together and they are shouting 'neither Sunni nor Shia but Bahraini'. We have not seen this before,'" she says. She adds that women are much more involved in the protests. One reason is that they are less likely to be manhandled by the security forces. Even so, Ms Khalifa says she saw one woman who had approached a security line with a Bahraini flag being roughed up.

The security police are largely non-Bahraini. They are Sunni Muslims recruited from Pakistan, Yemen, Syria and Jordan. Fast-tracked to citizenship and given preferential treatment, they are infuriating protesters. One protester told me: "Some of [the security police] don't even speak Arabic. They have no respect for the people."

Meanwhile, American president Barack Obama may have another headache on his Middle East plate. The Fifth Fleet is seen as a bulwark against the rising threat of Iran. As in Egypt, US policy has been to ignore the often legitimate grievances of Bahrainis in favour of stability and support for a repressive regime.

But if these protests transcend the sectarian divide and the Bahraini government responds with ever more brutal tactics, Washington will be put in a very difficult place - to support the government will be to deny the democratic aspirations of yet another Arab nation. And Saudi Arabia is even more nervous - a causeway links the kingdom to Bahrain. Gala Riani of Jane's Weekly concurs, saying the Saudis would not be loath to lend support - and in a worst-case scenario to intervene directly - should the Bahraini authorities not be able to control the demonstrations.

That would add a nightmarish twist to Barack Obama's growing Middle East dilemma at a time when instability is rapidly outpacing American strategy in the region.

However, critics pointed out that India is a nuclear power, has its own space programme and is rich enough to donate money to poor African nations each year. Andrew Mitchell, the International Development Secretary, says Britain will channel its aid to the three poorest states in India.

Sceptics believe much of Britain's aid is as much about strengthening British trade ties as helping the poor. In his visit last year, David Cameron lobbied hard on behalf of British business. The trip led to a 686 million pounds aircraft deal for defence contractor BAE Systems and engine makers Rolls-Royce. No one disputes that, despite its phenomenal growth, India still has countless millions of poor people, though many fewer than it used to have. Its population, after all, is many times greater than ours. But despite its challenges with poverty, it spends some 20 billion pounds a year on defence, not much less than Britain, and is a nuclear power.

It also splashes out about 1.5 billion pounds a year on its space programme, a luxury which this country cannot afford. Arguably India should be spending less on defence, and nothing on its space programme, and be diverting more funds to the alleviation of poverty. But the country is a democracy, and its government will be held to account for the decisions it makes. It is hardly our business if India wants to spend so much money on a space programme. But surely it is madness for us to be channelling precious funds to a country which chooses to have prestige projects that are beyond our own means.

The breakfast for conservative ministers prior to Chancellor Angela Merkel's weekly cabinet meeting is considered the most secretive and concentrated gathering in the day-to-day business of political Berlin. There are no leaks, no mobile phones ringing and no one leaves the room.

Last Wednesday, however, the morning discussion was abruptly interrupted. The ministers belonging to Merkel's center-right Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), were just perusing the first items on the agenda when a Chancellery employee told Merkel that she had an urgent call. Jens Weidmann, Merkel's economic advisor, was on the line to tell her that Axel Weber, president of the German Central Bank, the Bundesbank, intended to announce his resignation that day.

When Merkel returned, the cabinet members could tell by the expression on her face that something very unpleasant had happened - so unpleasant, in fact, that close associates would later call it a "catastrophe." Merkel conferred briefly with Finance Minister Wolfgang Schauble before calling Weber. It quickly became clear that there was nothing that could be done.

He had given careful thought to his decision, the banker told Merkel. He said that he felt isolated as a result of his strict, anti-inflation policies, and that he was practically alone in his views within the European Central Bank (ECB). Under these circumstances, Weber explained, he could not continue in office, and certainly could not become ECB president.

Weber now threatens to become a symbol of those among Merkel's conservatives - and within her junior coalition partners, the business-friendly Free Democrats (FDP) - who are skeptical of the euro and have long been uncomfortable with measures to rescue the common currency.

A subsidiary of China Communications Construction Company will build a runway long enough to handle giant Airbus A380s, a passenger terminal, hanger, control tower and other facilities, China's state-owned companies administrator said in a statement on its website (www.sasac.gov.cn) on Tuesday. "After this project is completed, it will greatly enhance the degree of internationalisation of Sudan's capital Khartoum, and also increase the impact China Communications Construction Company will have in Sudan's market," the statement said.

The airlines are constrained because of local laws that prevent selling tickets to Sudanese nationals in foreign currency. Credit card transactions are also not possible due to US sanctions imposed since 1997. Only about a dozen foreign airlines fly to Sudan because of the US embargo. Sudan also has a poor safety record, with the European Union banning all Sudanese airlines from flying to the bloc.

But Beijing has long been an ally of the government in Khartoum, providing much needed infrastructure development for the country that conceded to a January referendum outcome which will see its oil-rich south split as soon as July 9. China relied on Sudan as its sixth largest source of oil imports in 2010, and has been keen to build a relationship with leaders in the south.

Zhang Jun, the Chinese Commercial Consul to south Sudan, said oil remained the backbone of the economy in both the north and south, and hoped the agreement between the two sides would not affect oil production, China Business News reported on Tuesday.

In the last year, home prices in Seattle had a bigger decline than in Las Vegas. Minneapolis dropped more than Miami, and Atlanta fared worse than Phoenix. The bubble markets, where builders, buyers and banks ran wild, began falling first, economists say, so they are close to the end of the cycle and in some cases on their way back up. Nearly everyone else still has another season of pain.

"When I go out and talk to people around town, they say, 'Wow, I thought we were going to have a 12 percent correction and call it a day,'" said Stan Humphries, chief economist for the housing site Zillow, which is based in Seattle. "But this thing just keeps on going." Seattle is down about 31 percent from its mid-2007 peak and, according to Zillow's calculations, still has as much as 10 percent to fall.

Mr Humphries estimates the rest of the country will drop a further 5 and 7 percent as last year's tax credits for home buyers continue to wear off. "We went into 2010 feeling gangbusters, thanks to Uncle Sam," Mr. Humphries said. "We ended it feeling penniless, with home values tanking." The fact that even a fairly prosperous area like Seattle was ensnared in the downturn shows just how much of a national phenomenon the crash has been.

The worst weather has been in Gangwon province. Weather experts say there will be more snowfall in the area in the coming hours. "I am 83 years old. It's the heaviest snow in my life. I am really grateful for the soldiers' help," said Park Chae-ran. The BBC's Nick Ravenscroft in Seoul says that although winters are colder than anywhere else at its latitude, with frequent frost and snow, this year has been different.

January was the coldest since the 1960s. In Gangwon on the eastern coast, one city recorded 80cm (2.6 feet) of snow in a single day - the heaviest fall in 24 hours since records began there back in 1911. The cost of the damage is expected to run into several million dollars.

"An earthquake is shaking the whole Arab world and a large part of the Muslim world and we don't yet know how these things will turn out," the premier said at a swearing-in ceremony for new army chief Major General Benny Gantz. "We are ready for all eventualities because we know that the foundation of our existence, and our capacity to convince our neighbours to live in peace with us, is based on the Israeli army," he said during a ceremony at his Jerusalem office.

Gantz takes over the post as Israel's strategic stance in the Middle East undergoes a shakeup in the wake of a popular revolt in Egypt which ousted president Hosni Mubarak after three decades in power. Israel has reacted cautiously to the overthrow of Mubarak, an ally who was involved in years of Middle East peace negotiations. But it welcomed a statement by Egypt's new military ruling council that Cairo remains committed to all its treaties, including its landmark 1979 peace deal with Israel.

Mr Obama's budget projects that 2011 will see the biggest one-year debt jump in history, or nearly $2 trillion, to reach $15.476 trillion by September 30, the end of the fiscal year. That would be 102.6 percent of GDP - the first time since World War II that dubious figure has been reached.

And the budget projects the government will run a deficit of $1.645 trillion this year, topping 2009's previous record by more than $230 billion. By contrast, 2007's deficit was just $160 billion altogether. Still, amid the other staggering numbers in the budget Mr Obama sent to Congress on Monday, the debt stands out because Congress will need to vote to raise the debt limit later this year, and because the numbers are so large.

In one often-cited study, economists Carmen Reinhart and Ken Rogoff have argued that when a nation's gross debt passes 90 percent it hinders overall economic growth. Republicans argued Monday that the Obama administration's new budget fails to appreciate the depth of the country's fiscal plight.

"I still don't see a sense of urgency from the president about the massive federal debt," said Senator Lamar Alexander, Tennessee Republican. "His budget calls for too much government borrowing - even though the debt is already at a level that makes it harder to create private-sector jobs."

Earlier, Cairo's Tahrir Square was cleared of protesters but hundreds soon returned, joined by disgruntled police. Hundreds of uniformed and plain-clothes police marched to Tahrir Square, shouting: "We and the people are one" and vowing to "honour the martyrs of the revolution". They said they had been forced to act against their wishes in using force on protesters early in the anti-government demonstrations.

But they are detested by many ordinary Egyptians, says the BBC's Jon Leyne in Cairo, and repairing relations will take time and hard work. Most of the thousands of protesters in the square had left on Sunday after welcoming the announcement by the new ruling military council that it would dissolve parliament and suspend the constitution.