ALABAMA - "He was not fired (from his job). THERE WAS NO GIRLFRIEND BREAKUP. HE HAD NO CRIMINAL RECORD AND NO HISTORY OF MENTAL ILLNESS, ALL THE THINGS WE NORMALLY LOOK FOR," Murphy said. Michael McLendon's rampage, the worst in the southern state's history, bore the signs of a planned attack BUT LACKED A CLEAR MOTIVE.

GERMANY - He killed nine students, eight of them female, and three women teachers, as well as one person in front of a psychiatric clinic opposite the school, before fleeing with a hostage in a car hijacked at a local supermarket.

The gunman died hours later in a shoot-out in Wendlingen, some 30 km (20 miles) from the school, after killing two men in a car dealership. Those killings brought the death toll to 16, including the gunman, who police believe shot himself. "NOBODY CAN UNDERSTAND IT," said Roberto Seifert, who works near the school. "You can see it in the faces of the police too. Everyone is in shock. The mood's very subdued here."

A 19-year-old neighbor of Kretschmer who identified himself as Michael and said he used to play table tennis with the gunman, described him as a loner who had a big collection of horror films.

There was also growing scepticism over Mr Brown's call for at least $200 billion for the International Monetary Fund to bail out cash-strapped nations, with no indication that China would come up with the bulk of the funds as some in No 10 hope. A simmering row about the whole point of the G20 meeting on April 2 burst into the open when Larry Summers, chief economic adviser to President Obama, called on other countries to follow America's lead in pumping even more money into stimulus plans to revive the world economic system.

The United States' stimulus package of $787 billion is equivalent to about 5.5 per cent of its annual economic output, although it is spread over three years, whereas the EU has struggled to reach agreements on a sum that barely reaches 1.5 per cent of its total GDP. Mr Summers's plea was attacked by Jean-Claude Juncker, the Luxembourg Prime Minister, who heads the eurogroup of single currency countries. He declared: "The 16 euro-area ministers agreed that recent AMERICAN APPEALS INSISTING THAT THE EUROPEANS MAKE AN ADDITIONAL BUDGETARY EFFORT TO COMBAT THE EFFECTS OF THE CRISIS WAS NOT TO OUR LIKING."

Mr Juncker suggested that the eurozone countries would rather adopt a wait-and-see approach than rush to incur even more debt.

Meanwhile, in remarks to a Civil Service conference that he probably did not expect to be reported, Sir Gus O'Donnell said that No 10 was finding it "unbelievably difficult" to prepare with the US. The Cabinet Secretary was speaking about the advantages of a permanent civil service and the difficulties of dealing with a Government with hundreds of appointees. "There is nobody there," Sir Gus said. "You cannot believe how difficult it is." Another official said that getting the rest of Europe, let alone China, to do more in the way of fiscal stimulus was "not going to be straightforward".

John Prestbo, editor and executive director of the DJ Indexes, which selects the 30 stocks in the Dow Jones industrial average, said he tracks both companies "every day to see what the status is." Should either stock be removed, "everything is on the table basically in terms of replacements," Prestbo said.

The EU cannot continue with its current structure. Politicians can no longer rely on the electorate's IMPLIED CONSENT OR PROMOTE DEEPER POLITICAL INTEGRATION BY STEALTH without making the institutions accountable. Trying to create political union, let alone any European identity, from above undermines any tendency for one to grow naturally; and to establish monetary union – now in so much difficulty – without political union was asking for trouble.

The old gang, led by the former French president Valéry Giscard d'Estaing, got their way. We ended up with a botched compromise which was first called a constitution and has now been rechristened the Treaty of Lisbon. The people of France and the Netherlands voted "no" to the constitution, but their parliaments voted it through anyway. The Irish also said "no", but will be told to vote again until they give the "right result". "No" means "yes" and the EU carries on regardless: THE DIRECTION OF TRAVEL IS ALWAYS TO GIVE MORE POWER TO THE UNION AND LESS TO THE MEMBER STATES.

The current crisis has exposed the limits of this – President Sarkozy protects the French car industry even if it damages the Czech economy. Germany is offering credit exports and wage support for its workers. Britain demands British jobs for British workers.

Europeans will never view the union as the citizens of California and Texas see the American union. WITHOUT THIS, POLITICAL UNION IN EUROPE IS IMPOSSIBLE. If the potential benefits of co-operation between Europe's nation states are to be realised, the EU needs to be closer to the vision of the former West German chancellor Ludwig Erhard, a fellow native of Bavaria: A COMMITMENT TO FREE TRADE, BUT OTHERWISE MUCH LESS POWER TO THE UNION AND MUCH MORE FOR MEMBER STATES.

"IRAN HAS CROSSED THE TECHNOLOGICAL THRESHOLD," Yadlin said, "such that its reaching military nuclear capabilities is a matter of adapting its strategy to the target of manufacturing a nuclear bomb." The bottom line, according to Yadlin, is that it is entirely up to Iran's decision makers, independent of outside considerations and factors, to decide when to proceed with producing the bomb.

Yadlin thus confirmed earlier reports by the International Atomic Energy Agency (IAEA) and US Chairman of Joint Chiefs of Staff Commander Admiral Mike Mullen. Mullen said two weeks ago that Tehran now has enough fissile material to build a bomb. The IAEA announced last week that its earlier reports were mistaken, and now acknowledges that it has evidence that IRAN HAS ENOUGH ENRICHED URANIUM FOR A NUCLEAR WEAPON.

Practically while Yadlin was making his report, Iran announced that it had successfully tested a new long-range air-to-surface missile.

He says: "Once a full member (of NATO) again, France will at last be able, working from within, to fully and effectively commit itself to its historic vocation, which is to promote with patience, method and determination the construction of a European pillar of the Alliance, which is strong and sure of itself. France and Spain are major actors in the development of European defence. WE WANT EUROPE TO BE CAPABLE OF ACTING BY ITSELF FOR THE DEFENCE OF ITS VALUES, INTERESTS AND INTERNATIONAL SECURITY."

Meanwhile, in an article in the International Herald Tribune, Stanley Sloan, Director of the Atlantic Community Initiative, argues "The Obama administration appears wisely to be lowering expectations about how much more military force the Europeans can bring to bear in Afghanistan, but Washington will not reduce the pressure for European contributions without caveats and more generous non-military contributions."

At a meeting of EU industry ministers in Brussels on Thursday (5 March), Belgian minister Vincent Van Quickenborne said the EU must "clearly tell GM that it can not play one country off against another in an attempt to raise the stakes." This view was shared by industry commissioner Gunter Verheugen. Speaking after the meeting, he said the American company's behaviour was "not acceptable" and called on GM to be more transparent in its dealings.

He also said industry ministers from countries affected by the current GM restructuring programme should meet together to share information and come up with a common position. "There is a clear need to exchange information because it is obvious that GM is discussing the situation of the company with individual governments, even at regional level," he said.

GM currently employs around 55,000 workers in Europe and has production facilities in Germany, Sweden, Poland, Spain, Belgium and the UK. However, it is estimated that around 300,000 people work in supply companies across the EU. 27 rely indirectly on GM brands in Europe such as Opel, Vauxhall and Saab.

Writing in Newsweek magazine, former Europe Minister Denis MacShane argues "Rarely has Europe been so at sixes and sevens, so disunited, so quarrelsome on economic, security and foreign-policy issues." He goes on to say that "what he [Obama] really needs is a united Europe. But instead... he is getting a cacophony of different voices, screeching at each other. Little wonder if he decides to tune out."

Steve Richards writing in the Independent, argues "With a predictably chaotic complacency the EU has failed even to agree on the principle of a single supervisor to regulate its cross-border banks, let alone reached common ground on a recovery package. Eurosceptics should take a close look at the EU's response to this crisis and relax. IT IS AN INSTITUTION THAT CANNOT AGREE ABOUT ANYTHING."

Writing in the FT, Gideon Rachman argues that "The European Union is in trouble... The strain of THE ECONOMIC CRISIS IS INDEED OPENING UP DIVISIONS WITHIN THE UNION". He adds, "Plans for a political union in Europe were always crazy. But the four freedoms already established by the EU - free movement of goods, people, services and capital - are huge and tangible achievements. It would be terrible to see them rolled back."

In the Times, Brownen Maddox suggests that western Europe was never going to be able to live up to eastern Europe's expectations: "The blunt truth is that the newcomers' hopes of becoming Spain, or the Irish Republic - poor countries transformed in a decade or so by the EU - were never realistic." She adds, "Any recession - never mind one as acute as this - would have driven home the point that THE EAST WANTS MORE THAN VOTERS IN THE WEST WANT TO PAY."

The German Press Agency reports that Dominique Strauss-Kahn, Managing Director of the IMF, has told the US radio channel NPR that EU Heads of State and Government "did not do their best" at the EU summit on Sunday. Strauss-Kahn went on to say that "THE EUROZONE HAS A COMMON CURRENCY BUT NO UNIFORM ECONOMIC POLICY".

Secretary Clinton also called for a halt in the smuggling of weapons from Egypt, which continues despite the Operation Cast Lead counterterrorist campaign and occasional IDF attacks on smuggling tunnels. Unlike previous American messages that sought a "balance" in blame, she did not couple the halt of attacks with the issue of Gaza border crossings. Israel has restricted shipments of humanitarian aid through the crossings in order to lessen the movement of materials that can be used for terrorist strikes.

The new Secretary of State repeated the American policy of a "two-state solution" to the Palestinian Authority-Israeli conflict. "The road ahead is difficult, but there is no other way," she stated. Secretary Clinton, in her first visit to Israel since taking office last month, also said she spoke with Livni about the Iranian nuclear threat and Tehran's alliance with Hamas. She said that the Obama administration is conducting a policy review to determine where it can "productively engage" diplomatic solutions.

The aim is to get the Bank's newly created cash out into the wider economy and encourage greater lending. The policy, known as QUANTITATIVE EASING, HAS NEVER BEEN TRIED IN THE UK. The Bank said last week it would pump £75bn into the economy, having cut interest rates to an all-time low of 0.5%. It has government permission to inject a further £75bn into the economy if it wishes.

The first "auction" will take place at midday when the Bank will invite offers from investment institutions and individuals to sell government bonds, known as gilts. Two hours later there will be a second stage of this so-called reverse auction, allowing banks to participate. Similar auctions will then follow twice weekly. SUCH AN APPROACH IS UNPRECEDENTED IN THE BANK'S 315-YEAR HISTORY but is now considered necessary as interest rates approach zero and deflation becomes a growing possibility.

Deflation - or falling prices - is bad for the economy as it encourages consumers to delay spending in the expectation that prices will soon be lower, potentially worsening an economic downturn. The governor of the Bank of England, Mervyn King, has admitted HE DOES NOT KNOW HOW LONG QUANTITATIVE EASING WILL TAKE TO HAVE AN EFFECT BUT CLAIMS IT WILL "EVENTUALLY WORK".

The Bank of England has disclosed that interest returns have dropped to an average of just 0.17 per cent on some types of savings accounts. It said returns on branch-based instant access and notice accounts, as well as individual savings accounts (Isas), are at their lowest since its records began.

The figures prompted experts to suggest that BANKS COULD BEGIN CHARGING SAVERS TO LOOK AFTER THEIR MONEY as returns are so low that they have nowhere else to go. Mike Warburton, of accountants Grant Thornton, said: "It would be crazy for rates to go any lower, but it is possible that banks start charging savers to look after their money." Banks already offer so-called packaged accounts, which are current accounts that customers pay for so that they can enjoy other benefits such as preferential savings rates.

A survey of 7,600 savers found that 44 per cent have already moved or are looking to move to a higher savings account as returns plummet. Kevin Mountford, head of banking at moneysupermarket.com, which conducted the survey, said: "SAVERS ARE BEING PUNISHED FOR THE MISTAKES OF OTHERS. And that so many are looking to find better rates at a time when you would imagine security and service would be paramount, shows just how badly savers are being squeezed."

Benedict announced this week that he would visit in May. His presence could help ease the sometimes rocky relations between the Vatican and Israel, and between the Vatican and Muslims. It will be his first official visit to the region since he became Pope in 2005. Archbishop Antonio Franco, the papal nuncio in Jerusalem, said visits to key Jewish and Muslim holy sites would be on the Pope's agenda. The Dome of the Rock is one of Islam's most sacred shrines, and the nearby Western Wall is the holiest site where Jews are allowed to pray.

"The intent of the [Pope's] visit is to express his solidarity and closeness to the people of Israel and Palestine, and through them all the people of this region," Franco said.

Benedict will also visit Israel's Yad Vashem Holocaust memorial, meet with top Palestinian and Israeli leaders and make a stop in the West Bank town of Bethlehem, the traditional birthplace of Jesus. The Pope will end his visit by celebrating Mass in Galilee — the area in northern Israel where Jesus lived and preached.

The officer was gunned down as he and a colleague investigated suspicious behaviour in the predominantly Catholic area of Lismore Manor in Craigavon, County Armagh. It is believed he was an experienced officer who had been in the force for more than 20 years. No one has yet claimed responsibility for the latest shooting but the Real IRA said they carried out the killings on Saturday.

Politicians are already blaming dissident republicans for last night's attack but Police Service of Northern Ireland (PSNI) chief constable Sir Hugh Orde said it was too early to identify the killers. Northern Ireland's First Minister Peter Robinson said: "I unreservedly condemn this evil deed and offer my sincere sympathy to the officer's family circle. I am sickened at the attempts by terrorists to destabilise Northern Ireland. Those responsible for this murderous act will not be allowed to drag our Province back to the past," he said.

Update from the BBC - Two men, aged 17 and 37, have been arrested in connection with the murder of a policeman in Northern Ireland.

Agnes Wu's comments on the recent volatility of the banking giant's Hong Kong-listed shares trailed off as she saw its price slump to 33 Hong Kong dollars (4.23 US) after a last-minute sell order, a clip on Cable News showed. The order almost doubled the size of Monday's fall for SHARES IN HSBC, WHICH ENDED DOWN 24.1 PERCENT, ITS LARGEST ONE-DAY FALL ON THE HONG KONG BOURSE.

Wu and the anchor of the show were both wide-eyed and they shouted out the closing price in surprise. She was unable to continue talking and shook her head for a few seconds. The normally tough commentator then started to sob and said: "It's a heart-wrecking fall." She then wiped her right eye, but remained silent until the live show ended.

Wu later told The Standard newspaper she does not hold shares in the financial heavyweight. She explained she could not help bursting into tears because SHE FELT IT WAS UNFAIR FOR BIG PLAYERS TO BULLY SMALL INVESTORS. She said HSBC's share plunge was THE RESULT OF SHORT-SELLERS WHO WANTED TO DRIVE DOWN THE PRICE and snap up shares after the bank completes a 17.8 billion US dollar rights issue, according to the newspaper.