Business Secretary Vince Cable has been vocal in his opposition to big bonuses. He told the BBC last month that the coalition government was "fully signed up" to "robust action" in curbing bonuses. There are also questions about any declaration by the banks that they will make at least some concessions.

One senior banker told our correspondent there "could be more spin than substance" in any commitments the banks make to reduce bonuses. Royal Bank of Scotland may pay nearer 1 billion pounds in bonuses than last year's 1.3 billion pounds, while Barclays may pay less than the 5-6 billion pounds in total remuneration that its results from the first nine months of last year suggest are due to its investment bankers, our correspondent said.

But even if bonuses are cut, salaries have risen significantly to compensate, by up to 40% in some cases, he added. Banks have already begun re-balancing pay packages following new Europe-wide rules on bonuses agreed last summer and confirmed last month. These include introducing independent remuneration committees and setting maximum levels of bonus payments as a percentage of basic salary.

El Pais quotes Spanish governmental sources revealing that, during his visit to Madrid, Chinese Deputy Prime Minister Li Keqiang committed China to buying 6 billion euros of Spain 's sovereign bonds. However, fears of contagion still hang over the eurozone. Il Sole 24 Ore reports that yesterday's auction of 500 million euros in Portuguese six-month bonds saw the yield rise to a record 3.686%, up from 2.045% at the last such sale in September 2010.

Meanwhile, EUobserver notes that yesterday's 5 billion euros five-year bond issuance from the European Financial Stabilisation Mechanism sold out in one hour. As a result, the first 5 billion euros of Ireland 's EU-IMF bailout loan will be delivered to the Irish government next Wednesday, according to the Irish Times.

An article in the Telegraph notes that EU plans to spread the burden of EU bank failures to senior bond-holders fuelled instability on eurozone debt markets yesterday, pushing yields on 10-year Greek bonds to a record 12.59%. In an interview with Reuters, Greek Finance Minister George Papaconstantinou has denied claims that Greece is discussing debt restructuring with creditors, as was previously reported. FT Deutschland notes that financial institutions are now competing with governments in order to obtain credit, with FAZ reporting that eurozone countries are seeking to raise 23 billion euros in private and public funds in the next few days.

Rolf Krause, the Brussels bureau chief of German public broadcaster ARD has said that the euro is "a terrible experiment which we've begun", voicing his support for slimming down the currency union to countries with the same working and savings culture.

He is critical of last year's banking stress tests arguing, "It is revealing that the tests conducted last July identified a capital shortfall of just 3.5 billion euros. Yet less than six months later, Irish banks required 10 times that amount... Europe cannot repeat the same mistake again. It is now clear the new stress tests must be much tougher."

He calls for a "comprehensive package" to resolve the eurozone debt crisis to be agreed early this year, adding, "The eurozone must follow the logic of the single currency and stand more convincingly behind the euro." Osborne argues that the EU should not allow "badly thought through regulation needlessly to undermine European competitiveness in financial services," adding, "No one should doubt that Britain is determined to remain a global financial centre serving Europe and the world."

A feature in FAZ suggests London may lose ground as a top financial centre, arguing that, "the City of London has lost support from the British Government. Banks must fear overregulation from Brussels, particularly political decisions and a lack of skilled regulators in the EU's new financial supervisors. That more than 1000 hedge fund managers have left the UK for Switzerland, is bearable, but that big institutions such as HSBC, Standard Chartered and Barclays are threatening to leave the City if future regulations harm them, is a big hit."

Meanwhile, European Voice reports that the people who will lead the three new European financial supervisory authorities could be selected as early as next week.

Among them is Dahlia Lithwick of Slate.com, who penned a column titled, "Read It and Weep: How the tea party's fetish for the Constitution as written may get it in trouble." Dictionaries define "fetish" as an object of irrational reverence or obsessive devotion, often associated with sexual gratification. During an appearance on MSNBC last night, Lithwick said she believed there was historical precedent for a constitutional fetish among those on the political right.

Lithwick's remarks came under heavy fire from Rush Limbaugh, the top-rated radio host, who ripped Lithwick and others on the left for holding such a sentiment. "They're perverts themselves," Limbaugh said. "These are perverts perverting the founding documents. If the Constitution's not that big a deal, how come the same people had such a cow when they thought Christine O'Donnell didn't know what she was talking about regarding the Constitution? If it's so unimportant, how come Obama's so proud to have been a constitutional lawyer or professor or lecturer, whatever he was?"

"Abraham Lincoln. They hate him? Abraham Lincoln had a fetish for the US Constitution? Here's what Lincoln said among many other things: 'We the people are the rightful masters of both Congress and the courts not to overthrow the Constitution but to overthrow the men who pervert the Constitution.' That's Lincoln. Is he a pervert? Lincoln have a fetish? Lincoln also said, 'Don't interfere with anything in the Constitution. That must be maintained, for it is the only safeguard of our liberties.'"

Syndicated columnist and commentator Charles Krauthammer said the objection to reading the Constitution aloud by many on the left "is truly astonishing." He said on Fox News that in the 1960s, "Liberals got in trouble for being on the wrong side of the flag," and are now in danger of being on the wrong side of the Constitution, which he called "the essence of America." He noted for liberals to think there's an advantage in dismissing the public reading of the document "is real bad politics."

The reading of the Constitution on the House floor was originally promoted by Representative Robert Goodlatte, Republican for Virginia, who will be the first reader tomorrow at 10:30 am Eastern. "The Constitution has never been read aloud on the floor of the House of Representatives. This historic and symbolic reading is long overdue and shows that the new majority in the House truly is dedicated to our Constitution and the principles for which it stands," said Goodlatte. "One of the resounding themes I have heard from my constituents is that Congress should adhere to the Constitution and the finite list of powers it granted to the federal government."

After WND reported yesterday that Gaffney accused Muslim Republican Suhail Khan of "infiltrating" the Conservative Political Action Conference on behalf of radical Islamists, Khan and CPAC director Lisa DePasquale fired back with personal attacks on Gaffney in Salon and Politico. "It's because I'm Muslim. It's as simple as that," said Khan. "There's no truth to it. It's the latest iteration of anti-Muslim hysteria."

Gaffney responded with praise for May, a former New York Times foreign correspondent. "Cliff May is a good man, a good friend of mine and I hope he'll do a thorough job of illuminating the threat of shariah to the United States."

"On Lisa's point, I hope that she and others at the ACU will read the Team B analysis. If she would do so she would have an appreciation for how influence operations work and in particular how this one is working. It's not about being powerful, it's about being skillful in pursuing the objectives of the Muslim Brotherhood that individuals like Suhail Khan have engaged in for decades now."

Experts fear the crisis will deepen this year as the Bank of England is widely expected to start raising the base rate from its historic low of 0.5 per cent. For millions of families, who are already struggling to pay their mortgage, a rate hike could tip them over the edge as mortgage repayments jump.

Campbell Robb, chief executive of Shelter, said: 'This is a totally unsustainable situation. It is one which we fear could see thousands more families pushed into the spiral of debt, eviction or repossession and ultimately homelessness.' The number of homeowners relying on their credit card has increased sharply over the last year, according to Shelter, which has conducted the research for each of the last three years.

During the recession in 2008 and 2009, it found four per cent of households were affected. In 2010, it jumped to six per cent. It said victims realise they cannot afford to pay their mortgage or rent as the payment date approaches, and use their credit card to take out cash which they deposit in their bank account. But cash withdrawals on credit cards are one of the most expensive ways to get cash because the charges are cripplingly high.

The Council of Mortgage Lenders predicts that 40,000 families will lose their battle with their mortgage repayments and have their home repossessed this year.

Lady Ashton, Europe's foreign minister, is also commission vice-president and Britain's only full representative on the EU's executive. On Wednesday, she again missed an entire Brussels meeting, her 17th since January, 2010, because of a trip to the Middle East. Officials and diplomats have questioned her commitment to the job, which has a salary of more than £230,000 a year, and especially her reluctance to be away from her London-based family at weekends.

David Heathcoat-Amory, a former Tory minister for Europe, said the attendance record was proof that Lady Ashton was not the right person for a senior political role. "She is not up to the job and everyone knows it," he said. "I opposed the creation of an EU foreign minister but I at least thought we would get someone who would bother to turn up."

Lady Ashton has also been absent from 40 per cent of 42 meetings of the commission "college" in the past year, gatherings at which the EU's 27 commissioners - one for each member state - take critical legislative decisions on issues such as European regulation of the City of London.

Her absences have also been blamed on the Lisbon Treaty, which gave her jobs both as the EU's High Representative for foreign affairs and Britain's European commissioner. "She cannot be in two places at once," said her spokesman.

Some 65 years after the end of World War II, is it safe yet for a Jew to walk through the streets of Germany wearing a yarmulke? Not in Brandenburg, home to Potsdam and its famous UNESCO-listed palaces near Berlin -- at least according to the eastern German state's new chief rabbi, Shaul Nekrich.

A former resident of Berlin, Nekrich said in an interview with the Berliner Zeitung newspaper published Wednesday that he had been perfectly comfortable walking around the capital city, wearing a yarmulke and traditional Jewish hat. Not so, however, in Brandenburg, where he now leads the state's six Jewish communities. Nekrich said he now eschews wearing the kippah or hat head coverings when walking the streets of towns and cities in the state.

Asked by the newspaper whether he believed the state has a problem with anti-Semitism, 31-year-old Nekrich, who emigrated to Germany from Russia after studying in Israel, said: "I think so, even if I haven't been here for very long. I hear the stories from the communities. They are wary of being recognized as Jews on the streets. The only way we announce events now is by e-mail. In (the town of) Bernau, the synagogue has been defaced with swastikas several times."

There may be no end in sight for Europe's sovereign debt crisis, but at least one country still believes in the euro. The Chinese leadership has promised its support for the euro zone in its hour of need as part of a charm offensive aimed at strengthening ties with the European Union.

In a guest editorial published in Wednesday's edition of the German daily Suddeutsche Zeitung, Chinese Vice Premier Li Keqiang promised that China would support the EU in the fight against the euro zone's sovereign debt crisis. "China's support of the EU's financial stabilization measures and its help to certain countries in coping with the sovereign debt crisis are all conducive to promoting full economic recovery and steady growth," he wrote.

On Monday, he published another guest editorial in the Spanish newspaper El Pais ahead of a visit to Spain, in which he said China would continue to buy Spanish bonds. "We have confidence in the European financial market, and, in particular, the Spanish financial market," he wrote. The promise of help is likely to be welcome in Spain, which some observers fear may have to ask for help from the EU's rescue fund, as Ireland and Greece have already done.

In recent months, China, which has foreign-exchange reserves worth an estimated $2.5 trillion, has been buying up bonds from troubled euro-zone members such as Greece and Portugal. Beijing is seen as wanting to diversify its investments out of fears of a devaluation of the US dollar. Currently around 70 percent of its foreign-exchange reserves are believed to be in the US currency.

Though it has been inserted as text into the Congressional Record before, the supreme law of the land has never been read aloud before in the body known as "the People's House." The man responsible for the exercise, Representative Bob Goodlatte (Republican for Virginia) says it's more than just a simple civics lesson. "This is a very symbolic showing to the American people," said Goodlatte, "and it's a powerful message to members of Congress. We are a nation of laws, not of men."

In his speech to fellow lawmakers after taking the gavel, newly minted House Speaker John Boehner, Republican for Ohio, vowed to give the government back to the people, renew focus on the Constitution and provide transparency, honesty and accountability. "Hard work and tough decisions will be required of the 112th Congress," he said. "No longer can we fall short. No longer can we kick the can down the road. The people voted to end business as usual and today we begin to carry out their instructions."

The emphasis on the Constitution won't end with the reading of the document. The House on Wednesday approved a package of rules for the 112th Congress, put forward by Cantor, that includes a provision mandating that all bills cite their constitutional authority.

The crabs benefit from warm seas, but when winter hits and snow covers the beaches, they just can't handle the freezing temperatures, Tony Child, Thanet Coast Project manager, told the Star.

Meanwhile, about 50 jackdaw birds were found dead Wednesday on a street in Stockholm, Sweden. A veterinarian investigating the incident told the Associated Press their cause of death is unknown but that there were fireworks in the area Tuesday night. Along with shock from the fireworks, the vet listed cold weather and difficulty finding food as possible reasons for the deaths.

These recent animal deaths join the thousands of others in the last week in the United States. On Tuesday, 450 birds plummeted to their deaths in Louisiana for apparently no reason. Some of these grackles, starlings, brown-headed cowbirds and red-winged blackbirds may have flown into a power line, officials said. On New Year's Eve, more than 3,000 red-winged blackbirds inexplicably fell from the skies in Arkansas. Wildlife experts just west of where the blackbirds were found are still trying to figure out why 100,000 drum fish washed up on the shores of the Arkansas River.

Officials have acknowledged it is unlikely they will ever determine a cause.

The newly revealed policy, called ''Lowering the threshold of nuclear threats,'' may contradict China's strategy of no first use of nuclear weapons under any circumstances, and is likely to fan concern in the United States, Japan and other regional powers about Beijing's nuclear capability.

The People's Liberation Army's strategic missile forces, the Second Artillery Corps, ''will adjust the nuclear threat policy if a nuclear missile-possessing country carries out a series of air strikes against key strategic targets in our country with absolutely superior conventional weapons,'' according to the documents, copies of which were obtained by Kyodo News.

The World Bank said buyers of its 500 million yuan ($76 million), two-year bond were mainly Hong Kong-based financial institutions, companies and wealthy individuals. It said the money will go into its general fund, rather than being raised for a specific purpose. The yuan is not traded on global currency markets but Beijing has loosened controls and allows Hong Kong banks to use it. Hong Kong is Chinese territory but has its own currency and a Western-style legal system and often is used as a site for mainland companies to interact with foreign investors.

Beijing began allowing foreign companies to issue yuan debt last year. The Asian Development Bank, Caterpillar Inc (CAT) and McDonald's Corp have sold yuan-denominated debt to finance activities in China. Buyers of such bonds hope to gain from both interest payments and the growing strength of the yuan, which is rising against the US dollar.

China is set to gain a bigger say in the World Bank after a restructuring last year to boost the voting power of developing countries. If approved, China will be the third-biggest voting power after the United States and Japan. The World Bank provides low-interest loans and technical assistance to developing countries.

The gauges for sugar and meat prices advanced to records. Sugar climbed for a third year in a row in 2010, and corn jumped the most in four years in Chicago. Food prices may rise more unless the world grain crop increases "significantly" in 2011, the FAO said November 17. At least 13 people died last year in Mozambique in protests against plans to lift bread prices.

"There is still, unfortunately, the potential for grain prices to strengthen on the back of a lot of uncertainty," Abdolreza Abbassian, senior economist at the FAO, said by phone from Rome today. "If anything goes wrong with the South American crop, there is plenty of room for them to increase."

White, or refined, sugar traded at $752.70 a metric ton at 11:53 a.m. on NYSE Liffe in London, compared with $383.70 at the end of June 2008. Corn, which added 52 percent last year on the Chicago Board of Trade, was at $6.01 a bushel, down from $7.57 in June 2008. Soybeans were at $13.6325 a bushel, against $15.74 at the close of June 2008.

The cost of food climbed 25 percent from a year earlier in December, based on the FAO figures, after Chinese demand strengthened and Russia's worst drought in a half-century devastated grain crops. The agency's food-price indicator rose from 206 points in November. Last month's year-on-year rise compares with the 43 percent jump in food costs in June 2008. Record fuel prices, weather-related crop problems, increasing demand from the growing Indian and Chinese middle classes, and the push to grow corn for ethanol fuel all contributed to the crisis that year.

The financial services industry, politicians and the media needed to understand as a matter of urgency that in the wake of the financial crisis financial regulatory power had shifted to the European Union and was now vested in various new organisations created by Brussels. If the evolution of British regulation and the transfer of banking and insurance supervision to the Bank of England had any relevance it was only to the extent that it might serve as a distraction and prevent us from engaging properly where we should be engaged with the new European structures.

Obviously it mattered for the new UK regime to be effective but we deceived ourselves if we thought this was where the material impact on business would come from. The speaker might have exaggerated for effect but the fundamental point is valid. The response of European governments to the financial crash has been to create a series of EU bodies which will have the power to pass binding rules on the financial services industry across the Continent, and to do so by majority vote and without the need for enabling domestic legislation.