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."

"On this last trip the Pope spoke much about PEACE, as he had promised," the priest said. "Thirty speeches, one single message, that tirelessly repeated this one theme, with innumerable variations: PEACE between the Israelis and Palestinians; PEACE between Jews, Muslims and Christians; PEACE in the Church, between confessions and rites; PEACE in society and in the family; PEACE between God, man and creation; PEACE in hearts, in the Middle East and in the world… PEACE, PEACE, PEACE."

"He spoke a great deal, but he also listened, and perhaps did so even more," he added. "Benedict is a listening Pope. How many people have spoken to him, how many things they have said to him, with such passion, with such diversity of attitudes and perspectives! HOW DIFFICULT IT IS TO MAKE PEACE, ABOVE ALL AT THE CENTRAL POINT OF ALL TENSION: JERUSALEM!"

The Vatican spokesman recalled that Benedict XVI was the first Pope to visit the Israeli West Bank barrier: "Here too the new pilgrim Pope came, to ask God and men that the walls of division be razed, beginning with those that close and divide hearts. 'NO MORE SPILLING OF BLOOD! NO MORE TERRORISM! NO MORE WAR!' With this cry he ended his pilgrimage of hope, in a crucial moment for the future of peace in the Holy Land," Father Lombardi concluded. "THE POPE DID ALL HE COULD AND WILL CONTINUE TO DO ALL HE CAN. May God now guide all the efforts of the peacemakers, religious, civil and political."

The responding officers — EIGHT TEENAGE BOYS AND GIRLS, THE YOUNGEST 14 — face tripwire, a thin cloud of poisonous gas and loud shots — BAM! BAM! — fired from behind a flimsy wall. They move quickly, pellet guns drawn and masks affixed. "United States Border Patrol! Put your hands up!" screams one in a voice cracking with adolescent determination as the suspect is subdued. It is all quite a step up from the square knot.

The Explorers program, A COEDUCATIONAL AFFILIATE OF THE BOY SCOUTS OF AMERICA that began 60 years ago, is training thousands of young people in skills used to confront terrorism, illegal immigration and escalating border violence — an intense ratcheting up of one of the group's longtime missions to prepare youths for more traditional jobs as police officers and firefighters. "This is about being a true-blooded American guy and girl," said A. J. Lowenthal, a sheriff's deputy here in Imperial County, whose life clock, he says, is set around the Explorers events he helps run. "IT FITS RIGHT IN WITH THE HONOR AND BRAVERY OF THE BOY SCOUTS."

Many law enforcement officials, particularly those who work for the rapidly growing Border Patrol, part of the Homeland Security Department, have helped shape the program's focus and see it as preparing the Explorers as potential employees. The Explorer posts are attached to various agencies, including the Federal Bureau of Investigation and local police and fire departments, that sponsor them much the way churches sponsor Boy Scout troops. "OUR END GOAL IS TO CREATE MORE AGENTS," said April McKee, a senior Border Patrol agent and mentor at the session here.

"We will not back down where there is an obvious and clear need to investigate," he said. Sir Paul will appear before a committee of MPs in Westminster today, where he is expected to confirm that detectives are ready to act on hundreds of complaints received from members of the public.

The commissioner and Keir Starmer, the DPP, have set up a panel to assess allegations and set out a framework for deciding which MPs could face criminal investigation. The first meeting was held yesterday by acting commander Nigel Mawer, the Met's head of specialist and economic crime.

Initial investigations are expected into Elliot Morley, the former environment minister, and David Chaytor, who both claimed money for mortgages that they had already paid off. The Labour MPs have been suspended by the party. Criminal lawyers have said that the claims could constitute a criminal offence under the 2006 Fraud Act and the 1968 Theft Act. A conviction would be highly likely to result in a prison sentence.

The H1N1 swine flu virus killed a vice principal at a New York City school over the weekend and has spread to 48 states. While it appears to be mild, IT IS AFFECTING A DISPROPORTIONATE NUMBER OF CHILDREN, TEENAGERS AND YOUNG ADULTS. This includes people needing hospitalization - now up to 200, said Dr. Anne Schuchat of the U.S. Centers for Disease Control and Prevention.

"That's very unusual, to have so many people under 20 to require hospitalization, and some of them in (intensive care units)," Schuchat told reporters in a telephone briefing. "We are now experiencing levels of influenza-like illness that are higher than usual for this time of year," Schuchat added. "We are also seeing outbreaks in schools, which is extremely unusual for this time of year."

Because doctors usually treat symptoms and only occasionally give flu tests to patients, the CDC must monitor reports of symptoms such as fever, cough and muscle aches to track flu activity. Some centers are doing actual influenza tests to confirm the patterns that are seen. Influenza is a factor in 36,000 deaths a year in the United States and 250,000 to 500,000 deaths globally, the CDC says. "Unlike the seasonal flu, we are seeing relatively few cases or hospitalizations in people over 65," Schuchat said. Usually flu kills the elderly and people with chronic diseases.

Obama also had pointed words for Iran on a second major Mideast dispute, warning the Iranians they had until year's end to get serious about talks with the world community on curbing their nuclear ambitions. "We're not going to have talks forever," the president said.

Obama and Netanyahu spoke highly of their hopes for progress in the Mideast after a lengthy private meeting in the Israeli's first visit to the White House since Obama became president and Netanyahu began his second stint as prime minister. Yet the new president was firm in insisting the Israelis move toward peace with the Palestinians, and NETANYAHU STUCK TO HIS STANCE THAT ISRAEL CANNOT NEGOTIATE WITH PEOPLE WHO DENY ITS RIGHT TO EXIST. The two leaders found fruitful grounds for agreement on Iran.

Israel is deeply concerned about Iran's perceived attempts to build a nuclear weapon, believing the virulently anti-Israeli regime might naturally target the Jewish state which lies in easy range of Tehran's missile technology. Beyond that, the Iranians have been a key sponsor of anti-Israeli Islamic militants who refuse — as does Tehran — to accept Israel's existence. Most dangerously, the IRANIAN-FUNDED AND ARMED HAMAS ORGANIZATION CURRENTLY RUNS THE GAZA STRIP, while Hezbollah, the other Iranian proxy, has historically harassed Israel with rocket attacks from Lebanon on the north.

Palestinians offered praise for Obama but expressed disappointment with Netanyahu's remarks. "Mr. Netanyahu failed to mention the two-state solution, signed agreements and the commitment to stop settlement activity. He said he wants the Palestinians to govern themselves. The question to Mr. Netanyahu is, 'How can I govern myself while your occupation continues everywhere in the West Bank and Gaza, and how can I govern myself under your wall, roadblocks and settlement activities?'"

Mr Lula da Silva, who is visiting Beijing this week, and Hu Jintao, China's president, first discussed the idea of replacing the dollar with the renminbi and the real as trade currencies when they met at the G20 summit in London last month.

An official at Brazil's central bank stressed that talks were at an early stage. He also said that what was under discussion was not a currency swap of the kind China recently agreed with Argentina and which the US had agreed with several countries, including Brazil. "Currency swaps are not necessarily trade related," the official said. "The funds can be drawn down for any use. What we are talking about now is Brazil paying for Chinese goods with reals and China paying for Brazilian goods with renminbi."

Henrique Meirelles and Zhou Xiaochuan, governors of the two countries' central banks, were expected to meet soon to discuss the matter, the official said. In an essay posted on the People's Bank of China's website, Mr Zhou said THE GOAL WOULD BE TO CREATE A RESERVE CURRENCY "THAT IS DISCONNECTED FROM INDIVIDUAL NATIONS".

It found that the only offence that was heavily reduced by their presence was theft from vehicles in car parks. The findings are a further blow to Home Office officials and police chiefs who have turned to CCTV as their main weapon in preventing crime. ABOUT 4.2MILLION CAMERAS ARE THOUGHT TO BE OPERATING AND AT LEAST £500MILLION OF TAXPAYERS' MONEY HAS BEEN SPENT INSTALLING THEM.

But the report, by Cambridge University academic David Farrington for the Campbell Collaboration study group and funded by the Home Office, said cameras should only be used in specific target areas where they are known to be effective - rather than the 'current broad application'. Critics of CCTV say that improving police patrols or street lighting would be more effective, and that cameras can even increase crime by encouraging people to drop their guard.

Sidestepping calls to quit over his handling of the crisis, Martin said he would meet party leaders in the next two days to discuss reforms to a system which saw claims for everything from bathplugs and biscuits to cat food and tennis court repairs. "We must all accept blame and to the extent that I have contributed to the situation, I am profoundly sorry," said Martin, dressed in the Speaker's black robe.

Forcing Martin's resignation would be a constitutional landmark on a par with the abdication of a monarch or a U.S. president's impeachment, said John Curtice, professor of politics at Strathclyde University, Scotland. "There is a reverence about the office… a kind of mythology about it," he said. "It is the equivalent of an abdication crisis. There is no doubt we are in a pretty old whirlwind. We are going to remember this one."

If ousted, he would be the first Speaker to be sacked since John Trevor lost his post for taking bribes in 1695. His departure would spark a by-election in his constituency in Glasgow and could add to calls for a national poll. The Speaker is the highest authority in the lower house and represents the chamber to the monarch. His duties include keeping order during debates, calling lawmakers to speak and making sure they follow the rules of parliament. Liberal Democrat lawmaker Norman Baker told Sky News: "Today's performance was terrible, frankly. I am afraid he signed his own political death warrant today."

His comments came after a meeting with President Barack Obama, WHO BLUNTLY TOLD THE ISRAELI LEADER IT WAS TIME TO GET BACK TO THE NEGOTIATING TABLE. Netanyahu and President Barack Obama met for more than two hours at the White House and focused on Mideast peace talks, Iran's nuclear program and the U.S.-Israeli relationship.

Obama said he expects a positive response from his diplomatic outreach to Iran on stopping its nuclear program by the end of the year. The president said the United States wanted to bring Iran into the world community, but declared "we're not going to have talks forever." At the same time, Obama said bluntly that it was important that Netanyahu, a hard-liner on peace negotiations with the Palestinians, to restart the stalled Mideast peace talks. While his language was gentle, Obama's words were notable nonetheless for being made in public.

Netanyahu said he was ready to resume peace talks with the Palestinians immediately BUT SAID ANY AGREEMENT DEPENDED ON THEIR ACCEPTANCE OF ISRAEL'S RIGHT TO EXIST. It was not immediately clear in the way he phrased the response whether Netanyahu was demanding that as a precondition for talks. "There's never been a time when Arabs and Israelis see a common threat the way we see it today," Netanyahu said, speaking of a sense of urgency felt throughout the Arab world about Iran's nuclear program.

The survey found that 41 percent of respondents say the Holocaust never happened, up from 28 percent who said so in 2006 when the question was first asked. Holocaust denial is rampant among Palestinians and in Arab countries neighboring Israel. But Arabs in Israel have frequent contact with Jews and learn about the Holocaust in school.

Smooha said the growing radicalization among Israeli Arabs is a result of the 2006 Lebanon War, the stalemate in peace negotiations with the Palestinians and the continued divide between Israel's Jewish and Arab populations. This has made it hard for Arabs to view Israeli Jews as victims. The survey also found that the portion of the Israeli Arab public that believes Israel has a right to exist as an independent country has fallen from 81 percent in 2003 when the study was first conducted to 54 percent today.

Inside the Obama administration, some officials say, Pakistan's drive to spend heavily on new nuclear arms has been a source of growing concern, because the country is producing more nuclear material at a time when Washington is increasingly focused on trying to assure the security of an arsenal of 80 to 100 weapons so that they will never fall into the hands of Islamic insurgents.

The administration's effort is complicated by the fact that Pakistan is producing an unknown amount of new bomb-grade uranium and, once a series of new reactors is completed, bomb-grade plutonium for a new generation of weapons. President Obama has called for passage of a treaty that would stop all nations from producing more fissile material — the hardest part of making a nuclear weapon — but so far has said nothing in public about Pakistan's activities.

Bruce Riedel, the Brookings Institution scholar who served as the co-author of Mr. Obama's review of Afghanistan-Pakistan strategy, reflected the administration's concern in a recent interview, saying that PAKISTAN "HAS MORE TERRORISTS PER SQUARE MILE THAN ANYPLACE ELSE ON EARTH, and it has a nuclear weapons program that is growing faster than anyplace else on earth."

These figures showed that Germany has suffered the steepest economic collapse ever recorded in a major industrialised country; and that several of the countries in Central Europe and on the periphery of the eurozone are now in a state of economic and financial meltdown comparable with Argentina, Indonesia and Russia in the 1990s or with Iceland last year.

The 3.8 per cent decline in Germany's first-quarter GDP reported on Friday translates into AN ANNUALISED RATE OF 16 PER CENT. That was almost three times the rate of decline in the United States and Britain and steeper than most estimates of the economic collapse during the worst years of the Great Depression. And this was not just some temporary fluke or statistical exaggeration.

That continental Europe — and Germany, in particular — has suffered far worse from the credit crunch than the US or Britain should come as no surprise. I have described repeatedly the three interacting elements now hitting Europe in a "perfect storm".

THE FIRST ELEMENT is Germany's dependence on exports, especially of capital goods, cars and other consumer durables.

THE SECOND ELEMENT of the perfect storm has been the reckless lending to Central Europe and the Baltic States, especially by banks based in Austria, Sweden, Greece and Italy, which in turn have been large borrowers from German investors and banks.

THE THIRD COMPONENT of the economic hurricane is the euro itself. In its first decade of existence, the euro contributed to continental Europe's growth by allowing Spain, Greece, Portugal, Ireland and Denmark to run enormous current account deficits and enjoy housing and mortgage booms far more extreme than anything seen in Britain or the US.