The interview was taped this evening and is set to air at 11 pm ET, as Mitchell is in the air and on his way to the region. Based in Dubai, Al-Arabiya estimates that it has a potential audience exceeding 23 million in the Gulf region.

UPDATE - timesonline.co.uk reports:- US President Barack Obama has told the Muslim world that "Americans are not your enemy" and renewed his pledge to travel to make an address in the capital of a major Muslim nation. In his first interview with Arab television since becoming president, Mr Obama told the al-Arabiya television that his administration would adopt a more comprehensive approach in its relations with the Muslim world.

"It is impossible for us to think only in terms of the Palestinian-Israeli conflict and not think in terms of what's happening with Syria or Iran or Lebanon or Afghanistan and Pakistan," Mr Obama told the Dubai-based Arabic cable TV channel. "These things are interrelated. Ultimately we cannot tell either the Israelis or the Palestinians what is best for them. They are going to have to make some decisions," Mr Obama said.

This year, big government looks set to seize the Davos limelight from the banks, hedge funds and sovereign wealth funds that attracted attention in recent years. The reason for this change, economists say, is simple: THE TAXPAYER NOW HOLDS WHAT MONEY AND POWER REMAIN IN AN AILING GLOBAL ECONOMY. Many big banks are on government life support and even state-controlled sovereign wealth funds aren't offering capital to struggling Western corporations.

"THIS MAY BE THE FIRST DAVOS WHERE CAPITALISM IS WIDELY VIEWED AS A FAILURE, rather than something to be admired," says Ethan Kapstein, professor of economics and political science at French business school Insead, who has been going to Davos since 1994.

He called for greater fuel efficiency and an "energy economy" aimed at creating millions of jobs. He also ordered a review of whether states can set car emission standards. This challenges a Bush administration decision which favoured a national standard for vehicle pollution. At his first White House news conference since becoming president, Mr Obama said HE WOULD REVERSE AMERICA'S DEPENDENCE ON FOREIGN OIL while creating jobs, but warned there was no "quick fix".

"We will commit ourselves to steady, focused, pragmatic pursuit of an America that is freed from our energy dependence, and empowered by a new energy economy that puts millions of our citizens to work." He added: "Now is the time to meet the challenge of this crossroads of history, by choosing a future safer for our country, prosperous for our planet, and sustainable."

The American Steel First Act would ensure THAT ONLY US-MADE STEEL WAS USED IN $64 BILLION OF FEDERALLY FUNDED INFRASTRUCTURE PROJECTS. The money, earmarked for roads, bridges and waterways, is aimed at kickstarting the economy, but the initiative by steelmakers, which secured support last week in the House of Representatives Appropriations Committee, is opposed by American exporters, who fear retaliation by foreign governments.

Their concern is given credence by the European Commission and by Eurofer, the association of European steelmakers, which said that IT WOULD URGE THE EUROPEAN UNION TO CHALLENGE THE "BUY AMERICA" clause at the World Trade Organisation.

Gordon Moffat, director-general of Eurofer, said that the clause was a clear case of protectionism. He said: "It looks like they are trying to shut out imports. If we have the means to attack that under WTO rules, we would urge the Commission to do so." A spokesman for the European Commission said that America was a signatory to the Government Procurement Agreement, a WTO treaty aimed at ensuring fair access to state investment programmes. He said: "WE WOULD BE ENTITLED TO RETALIATE AND WOULD CERTAINLY DO SO IF THEY WITHDRAW FROM [THE TREATY]."

The dramatic federal action granting California and 13 other states the right to regulate tailpipe emissions is a sharp departure from the Bush administration's environmental policy, and has been opposed by auto companies. According to The New York Times, Mr Obama is to issue a directive to the US Environmental Protection Agency to immediately begin work on granting the so-called California waiver, which allows the state - long in the vanguard on environmental matters - to set its own standards for automobile emissions.

In his White House announcement, Mr Obama is expected to issue a directive requiring federal agencies to immediately begin work on making all government buildings more energy efficient. The new US administration hopes to achieve energy savings of up to $2 billion (£1.5 billion) per year, as well as a reduction of emissions of carbon dioxide and other gases blamed for global warming. The presidential orders will require car manufacturers begin producing and selling cars and trucks that get higher mileage than the national standard, and on a faster phase-in schedule, the congressional officials said.

"If we don't put a price on carbon," said Democratic Senator Barbara Boxer of California, the chairwoman of the Senate Environment and Public Works Committee, "we'll never get these clean energy sources online."

There were calls last night for a police investigation into the alleged actions of the four peers, amid suggestions that such activities would be corruption. The allegations are potentially the most serious about parliamentary conduct since the cash-for-questions affair in the 1990s.

Chris Huhne, the Liberal Democrat home affairs spokesman, said: "If these allegations are confirmed, they are not merely a breach of the Lords' own rules but are surely against the law on corrupt practices. Ex-ministers should not be touting themselves like taxi drivers for hire. The police should interview those peers who have been named and investigate whether they have used any parliamentary procedures to further the interests of their clients."

According to The Sunday Times, whose reporters posed as lobbyists for a foreign company setting up a chain of shops in Britain, four peers — Lord Taylor of Blackburn; Lord Truscott, a former Energy Minister; Lord Moonie, a former Defence Minister; and Lord Snape, a former government whip – indicated that they were ready to help for money. All four deny that they have broken any rules.

His exhortation came as he enraged other Republicans by reversing George W Bush's ban on funding international aid to charities that perform or provide information about abortions. After less than a week in office, Mr Obama's presidency is already encountering the very partisan bickering he had pledged to stamp out during his first 100 days.

He faces mounting criticism over his $825 billion economic stimulus plan, from Republican leaders who say the legislation has been drawn up without the input which Mr Obama had promised to allow them. The president responded with a clear signal that he is prepared to ram the bill through without the bipartisan consensus he promised to construct, telling Republican leaders from the House of Representatives: "I WON. I'M THE PRESIDENT."

Mr Obama has pledged to end the culture wars on social issues that have riven American politics for a generation and did not allow television cameras to film him signing the executive order reversing the Bush abortion funding ban on aid agencies abroad, in order not to provoke pro-life groups. When he finally did sign the order he issued a statement in a bid to placate abortion critics by promising to "reach out to those on all sides of this issue to achieve the goal of reducing unintended pregnancies." He added: "It is time that we end the politicisation of this issue."

But despite his efforts, the reaction was brutal. Family groups accused him of plotting the "infanticide" of African children. Former presidential candidate Gary Bauer, president of the American Values pressure group, said: "It is both sad and infuriating that in the same week President Obama extended NEW RIGHTS TO PRISONERS AT GUANTANAMO BAY AND BEGAN PLANNING TO RELEASE MEN WHOM WE KNOW HAVE MURDERED AMERICANS, HE IS PREPARING TO SENTENCE INNOCENT CHILDREN TO DEATH THROUGH ABORTION." Meanwhile the decision by the Food and Drug Administration to approve the first human trials of embryonic stem cells, anathema to the Christian right, has intensified the bubbling culture war.

"The group of vigilante men came to report that while they were on patrol they saw some hoodlums attempting to rob a car. They pursued them. However one of them escaped while the other turned into a goat," Kwara state police spokesman Tunde Mohammed told Reuters by telephone.

"We cannot confirm the story, but the goat is in our custody. We cannot base our information on something mystical. It is something that has to be proved scientifically, that a human being turned into a goat," he said. Belief in witchcraft is widespread in parts of Nigeria, Africa's most populous nation. Residents came to the police station to see the goat, photographed in one national newspaper on its knees next to a pile of straw.

According to the RAK Government, temperatures on Jebel Jais dropped to -3°C on Friday night. On Saturday, the area had reached 1°C. Major Saeed Rashid al Yamahi, a helicopter pilot and the manager of the Air Wing of RAK Police, said the snow covered an area of five kilometres and was 10cm deep.

Aisha al Hebsy, a woman in her 50s who has lived in the mountains near Jebel Jais all her life, said snowfall in the area was so unheard of the local dialect does not even have a word for it. Hail is known as bared, which literally translates as cold. "Twenty years ago we had lots of hail," said Ms al Hebsy. "Last night was like this. At four in the morning we came out and the ground was white."

M Varghese, an observer at the RAK Airport Meteorological Office, told of the storms that hit the emirate on Friday night. "We had thunderstorms with rain for more than 12 hours and we had around 18mm rain," Mr Varghese said. "The rain, along with the cold easterly winds and low-lying clouds, could have bought the temperatures further down on the mountains."

Up to now, Egypt has refused to relinquish its sovereignty and allow German "advisors" to be involved in its border controls. The German Foreign Ministry's more far-reaching demand for a German military mission in Gaza, has also not been approved by the local authorities. But because of the struggle with Iran over hegemony, the German government is very attentive to questions of reconstruction.

In the aftermath of the Israeli aggression on Lebanon in 2006, Tehran rendered tangible support to the local reconstruction effort and thereby, won sympathy. This runs contrary to Western Middle East policy and, if Berlin has its way, will not be repeated in the Gaza Strip. Government advisors are working out strategies for prohibiting the rise of Iran to become a leading Middle Eastern power, even beyond the current crisis.

The aim is to limit Iran's influence, BECAUSE IRAN, AS A PREDOMINATING POWER AT THE PERSIAN GULF, WOULD BE ABLE TO TIGHTEN CONTROLS OVER THE AREA'S RESOURCES AND MAKE WESTERN ACCESS MORE DIFFICULT. At the same time, Tehran should not be alienated, because it has its own wealth of resources. "The clever linkage of a course of containment with repeated offers of cooperation," writes the SWP, "could be the basis of a common Iran strategy for Americans, Europeans and pro-Western Arab states."

The remarks by Osama Hamdan are bound to complicate Arab efforts to reconcile Hamas, which controls Gaza, and the Fatah-dominated Palestinian Authority in the West Bank. Hamdan is Hamas's representative in Lebanon and is close to top Damascus-based leader Khaled Mashaal.

Speaking at a rally in Beirut Sunday, Hamdan said Hamas welcomed Palestinian dialogue, but any reconciliation should be based on "A RESISTANCE PROGRAM TO LIBERATE TERRITORY AND REGAIN RIGHTS. We say clearly that we welcome a national Palestinian dialogue but this dialogue must include those who really belong to Palestine and to the Palestinian cause," he said. HE MAINTAINED THAT THE ISRAELI-PALESTINIAN PEACE PROCESS HAD ENDED.

Top Hamas leaders remained in hiding, but lower-level Hamas officials could be seen back to work on Sunday, sometimes operating outside from a table set next to the rubble of their destroyed offices. Early in the morning, the Hamas national security chief, Hussein Abu Athra, was signing orders on the hood of his car next to the pummeled historic building that had served as security headquarters.

The discovery of the natural gas field 90 km offshore from Haifa, known as Tamar, was made by a US-Israel consortium including the Delek Group, through its subsidiaries Delek Drilling and Avner Oil Exploration, Isramco Negev 2, Dor Gas Exploration and US oil operator Noble Energy Inc. Preliminary estimates indicate that the Tamar field might contain over 88 billion cubic meters of gas.

"If the Tamar site opposite the Haifa coast succeeds in producing the significant quantities of natural gas predicted, we are talking about a revolution which will have an impact on the Israeli economy for the coming generations," said Dan Halman, CEO of Halman-Aldubi Group. "The vast reservoir is poised to bring down electricity prices, reduce the country's dependence on gas from foreign countries, in particular from Egypt, AND THEREBY TURN ISRAEL FROM A GAS IMPORTER INTO A GAS EXPORTER."

Zimbabwe has little hope of easing the cholera epidemic, which has killed nearly 2,800 people, and averting economic collapse without a power-sharing deal between President Robert Mugabe and the opposition. Both Mr Mugabe and his rival Morgan Tsvangirai, leader of the opposition Movement for Democratic Change (MDC), have shown no sign of compromise ahead of next week's regional summit aimed at breaking the deadlock in negotiations.

Zimbabwe's cholera epidemic is "far from under control" and could exceed 60,000 cases over next week, the Red Cross said in Geneva on Friday. Mr Mugabe, in power since independence from Britain in 1980, has come under pressure from Western powers, who want him to step down and are pushing for a democratic government to embrace economic reforms before millions of pounds in aid is offered.

The European Union announced on Friday that it is broadening its sanctions against supporters of Mr Mugabe by adding over 25 individuals and 36 companies with suspected links to human rights abuses to a list of those banned from the 27-member bloc. The sanctions list will for the first time include companies registered in the bloc, including in Britain, two EU diplomats said, without naming the firms.

Asked whether Europe shared these views, the European Commission's economic and monetary affairs spokesperson told this website on Friday: "Commissioner Almunia's position, which is the same as the Eurogroup's long-standing position, is that exchange rates should reflect economic fundamentals. That's all we wish to say."

A spokesperson for the EU's trade department also refused to comment. Such cagey responses highlight the extremely sensitive nature of international exchange rate policies and make Mr Geithner's comments all the more remarkable.

Former US treasury secretary Henry Paulson shared the concern of his replacement that US businesses were suffering from an artificially low yuan and repeatedly called for the currency to float freely against the dollar. However, he shied away from calling China a currency manipulator – a statement unlikely to go down well in Beijing. China's central bank, the People's Bank of China, responded by saying it had noted the comments.

In a Wednesday interview with the BBC, the head of the International Monetary Fund, Dominique Strauss-Kahn, predicted that the economic downturn will cause more unrest. "It could happen almost everywhere, in Europe certainly, and also in emerging countries," he said. "You've had some strikes that look like normal, usual strikes, but it may worsen in the coming months."

Asked which countries were most at risk, Mr Strauss-Kahn mentioned Hungary, Ukraine, Latvia and Belarus. "It can be my own country [France], the UK, it can be eastern Europe," he said. "THE SITUATION IS REALLY, REALLY SERIOUS," he added.