Besides determining whether a vaccine would be effective and safe, government officials and private laboratories will need to answer practical and financial questions: Does it make sense to order hundreds of millions of doses and organize a mass vaccination campaign for a virus that, so far, isn't widespread and doesn't seem particularly lethal? The Centers for Disease Control and Prevention said Wednesday that there are 642 confirmed U.S. cases and an additional 850 probable cases of the new virus, officially designated influenza A (H1N1). The CDC has confirmed two U.S. deaths.

PRESIDENT BARACK OBAMA LAST WEEK REQUESTED A $1.5 BILLION EMERGENCY APPROPRIATION TO DEAL WITH SWINE FLU, INCLUDING DEVELOPMENT OF A VACCINE. Jesse Goodman, chief medical officer at the Food and Drug Administration, said the basic preparations for a vaccine are being carried out with heightened urgency. He said in an interview that production could begin quickly if the government decides to move forward.

If seed stock for the new virus is available before manufacturers are finished with the seasonal-flu vaccine, the U.S. government will have to decide whether to push those manufacturers to drop regular production early and switch over to making the swine-flu vaccine. THE SEASONAL FLU IS ESTIMATED TO KILL AS MANY AS 500,000 PEOPLE WORLD-WIDE EACH YEAR.

Within minutes of release of the bank "stress test" results, which showed smaller capital needs than once feared, several of the 10 firms needing capital immediately issued statements detailing how they planned to raise it. Bank of America Inc, which accounted for almost half of the total capital shortfall with $33.9 billion to be raised, said it planned to sell assets, issue $17 billion in common stock, and take other steps to fill the hole.

"We're going to be watching carefully to make sure they give us credible plans for raising capital and becoming privately owned again," Federal Reserve Chairman Ben Bernanke said at a news briefing, referring to the entire group and not just Bank of America. The examinations, which involved more than 150 regulatory officials poring over the books of the 19 largest firms, effectively drew a line between healthy and weak, and quantified exactly how much those institutions struggling under the weight of souring loans must raise.

"I'M A SKEPTIC. I DON'T SEE THIS AS A GENUINE AUDIT. They have been playing the marketing game strongly lately," said Robert Andres, president of Andres Capital Management in Philadelphia. "The President, (Treasury Secretary Timothy) GEITHNER AND BERNANKE, THEY ARE TRYING TO BUILD THE MOMENTUM OF CONFIDENCE. They are kicking the can down the road to stall for time."

The budget plan seeks $12.1 billion for the Internal Revenue Service, responsible for collecting and enforcing individual and corporate tax laws, for fiscal 2010, which begins October 1. That amounts to a roughly 5.2 percent increase over the IRS budget for 2009, which was $11.5 billion. The budget proposal, which must be approved by Congress, includes a $890 million request to boost tax enforcement, including in the international arena, an increase of $400 million from 2009.

Underreporting of income by individuals and businesses led to a "tax gap" of $345 billion in 2001, the most recent year available, according to the government. Of that, corporate income tax and employment tax underreporting made up about $84 billion, according to a report by the Government Accountability Office. The Obama administration said it would use the funds to further expand its efforts to boost compliance outside the U.S., "placing greater scrutiny on cross-border transactions and tax issues."

"If we do move into a pandemic then our expectation is that we will see a large number of people infected worldwide," Fukuda said. "If you look at past pandemics, it would be a reasonable estimate to say perhaps a third of the world's population would get infected with this virus."

In Mexico, which has had the most cases, high schools and universities opened for the first time in two weeks as the country's top health official insisted the epidemic is on the decline. All students were checked for swine flu symptoms and some were sent home. Fukuda said WHO is unable to know what the future holds and that it is impossible now to say whether the outbreak will turn into a pandemic or whether it would be a mild or severe strain of influenza.

In a statement delivered at the White House after the budget details were released, President Obama defended the cuts from critics on both sides - those he said would fight to preserve the targeted programs and others who consider the reductions insignificant. "We can no longer afford to spend as if deficits don't matter and waste is not our problem," he said. "We can no longer afford to leave the hard choices for the next budget, the next administration - or the next generation."

Although many government employees do valuable, thankless work, Obama said, "at the same time, we have to admit that there is a lot of money that's being spent inefficiently, ineffectively and, in some cases, in ways that are actually pretty stunning." He cited several examples, including a $465 million program to build an alternate engine for the Defense Department's joint strike fighter, a program that Pentagon brass neither wants nor plans to use.

Obama said some proposed cuts are larger and more painful than others, while some would produce less than $1 million in savings. "In Washington, I guess that's considered trivial," he said. "But these savings, large and small, add up." He said of the $17 billion total in projected savings, "Even by Washington standards, that should be considered real money."

It is a matter of considerable importance to Neapolitans. When the liquefaction fails to happen, they believe great misfortune descends upon this ancient, glorious, decayed and troubled city. Vesuvius, which in AD79 buried Pompeii and Herculaneum under a mountain of ash and lava, overlooks the place. It is overdue another major eruption. In 1980, San Gennaro's blood failed to turn to liquid. Not long afterwards 3,000 people died in an earthquake at nearby Irpinia.

In the university's department of chemistry Professor Luigi Garlaschelli assembles test tubes, distilled water and chemicals. This iron chloride, he says, holding up nuggets of brownish stuff, is found naturally in volcanic ground. He mixes it with calcium carbonate and salt and produces a solid substance which looks like, well, dried blood.

He shakes a little bottle of the material and holds it up with a flourish. It turns to liquid. So is he saying the great "miracle" is nothing more than a conjuring trick? "NO, THIS IS A SELF-WORKING PHENOMENON," HE MAINTAINS, ADDING: "I'M NOT QUESTIONING THE HONESTY OF THE CHURCH".

Some 13,000 people have been ordered to evacuate as the blaze comes perilously close to the town centre. "Today is another day of concern to us," said Capt David Sadecki of the Santa Barbara Fire Department. Eight firefighters have been injured, at least three seriously, in the blaze which is being investigated as possible arson.

Santa Barbara, with its idyllic climate and lush countryside, is often referred to as the American Riviera. Since Wednesday, the fire has moved ever nearer to the seaside town. TV pictures show flames destroying several large hillside properties in the exclusive region. US media reports say at least 20 structures have been destroyed and some 2,000 homes are threatened.

However visitors expressed fears that the animal could be carrying the H1N1 virus and he was moved into isolation. The director of the zoo, Aziz Gul Saqib, says the pig, whose name is Khanzir, is strong and healthy.

Speaking to the BBC World Service, Mr Saqib says: "The only reason we moved him was because Afghan people don't have a lot of knowledge about swine flu, and so when they see a pig they get worried and think they will get ill." The director says Khanzir, given to the zoo by China in 2002, has been moved to a large space with lots of windows and fresh air and that he hopes he will be quarantined for only a few days.

The ECB's UK and US counterparts have taken similar unconventional monetary policy measures to boost growth. It is the seventh time the ECB has lowered its key rate since October 2008, when it stood at 4.25%. ECB president Jean-Claude Trichet said the ECB had decided in principle to buy euro-denominated covered bonds, a safer type of corporate debt, and such purchases would total about 60bn euros.

Mr Trichet said more details would be given when the central bank next meets on 4 June. "It's a significant departure from previous ECB policy," Gilles Moec, senior economist at Bank of America - Merrill Lynch, told Bloomberg News. "But other central banks have been a lot more aggressive."

Mr Trichet was not clear on how the bond purchases would be funded, but analysts said THAT THE MOVE COULD PAVE THE WAY FOR QUANTITATIVE EASING, WHICH HAS THE SAME EFFECT AS PRINTING MONEY. "Clearly this 'credit easing' could start to open the door for fully fledged quantitative easing from the summer," said Julian Callow, chief European economist at Barclays capital.

The vote, 249-175, came despite intense pressure from Republicans who argued the measure would create a privileged class. Bishop Harry Jackson Jr. of the High Impact Leadership Coalition also condemned the action, offering a warning about the nation's future. Jackson said the action puts "sexual orientation" in a specially protected class under federal law.

"Based on history, it really isn't something that needs to be protected," he said. "There's a problem that this is going to mark the first time that a protected class status is given to… whatever sexual orientation one has." He said the experience in other countries has led to prosecution of Christians. IN SWEDEN, FOR EXAMPLE, A MINISTER WAS SENTENCED TO 30 DAYS IN JAIL FOR PREACHING FROM LEVITICUS.

Andrea Lafferty, executive director of the Traditional Values Coalition, said, "The Anti-Christian Caucus of the U.S. House of Representatives has acted today to lay the legal foundation and framework to investigate, prosecute and persecute pastors, youth pastors, Bible teachers, and anyone else whose Bible speech and thought is based upon and reflects the truths found in the Bible."

"A PASTOR'S SERMON COULD BE CONSIDERED 'HATE SPEECH' under this legislation if heard by an individual who then acts aggressively against persons based on 'sexual orientation.' The pastor could be prosecuted for 'conspiracy to commit a hate crime'" she said. "This Democrat-controlled Congress has now elevated pedophiles and other bizarre sexual orientations, as well as drag queens, transgenders, lesbians and gay men to the level of protection of that already given to African Americans, Hispanics and other minorities in the law," she said.

However, critics cite United States Code Title 18, Section 2, as evidence of how THE LEGISLATION COULD BE USED AGAINST PEOPLE WHO MERELY SPEAK OUT AGAINST HOMOSEXUALITY. It states: 'Whoever commits an offense against the United States or aids, abets, counsels, commands, induces or procures its commission, is punishable as a principal.' Jeff King, president of International Christian Concern, warned Christians to speak up before the legislation passes. He said "they are acting like the proverbial frog in a slowly heating kettle that boils to death. THEY NEED TO WAKE UP AND TAKE ACTION TO OPPOSE THIS THREAT TO RELIGIOUS LIBERTY."

Formation of a new government enjoys "external support," he added, referring to Egypt, which has mediated the floundering power-sharing talks. There was no immediate comment from Egyptian officials. Abed Rabbo said the next round of Egyptian-brokered contacts would take place on May 16 as planned, but Hamas shared his pessimism regarding their outcome. "THERE ARE NO SIGNALS ON THE HORIZON OF A POWER-SHARING DEAL WITH FATAH," said Mahmoud Ramahi, a Hamas leader.

Fatah insists that Hamas yield to international demands to recognize Israel, renounce violence and accept existing agreements between Israel and the Palestinians, "which the movement will not accept under any condition," Ramahi said. Abbas ordered the formation of the current government in the West Bank after Hamas overran Gaza nearly two years ago, routing Fatah security forces and in effect creating dueling Palestinian governments.

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.