But his opinion-poll lead has been clawed back in recent weeks by Tzipi Livni, who heads the centrist Kadima, the largest party in the government. The BBC's Tim Franks, in Jerusalem, says opinion polls suggest the far-right will make the biggest gains. He says the popularity of Israel Our Home Party led by Avogdor Lieberman is on the increase.

The party advocates annexing Israel's settlements on the West Bank, and redrawing the borders so that Israel's large Arab minority comes under the control of the Palestinian Authority. But our correspondent says the apparent resurgence of Foreign Minister Ms Livni makes the outcome of the election difficult to predict.

Campaigning has taken place against a backdrop of continuing violence between Israeli forces and Palestinian militants in the Gaza Strip. Despite there being vital issues facing Israel - including the fallout from the recent conflict in Gaza - observers say the current campaign has been surprisingly low key.

Intelligence briefings for Mr Obama have detailed a dramatic escalation in American espionage in Britain, where the CIA has recruited record numbers of informants in the Pakistani community to monitor the 2,000 terrorist suspects identified by MI5, the British security service. A British intelligence source revealed that a staggering FOUR OUT OF 10 CIA OPERATIONS designed to thwart direct attacks on the US ARE NOW CONDUCTED AGAINST TARGETS IN BRITAIN.

And a former CIA officer who has advised Mr Obama told The Sunday Telegraph that the CIA has stepped up its efforts in the last month after the Mumbai massacre laid bare the threat from Lashkar-e-Taiba, the militant group behind the attacks, which has an extensive web of supporters in the UK. The CIA has already spent 18 months developing a network of agents in Britain to combat al-Qaeda, unprecedented in size within the borders of such a close ally, according to intelligence sources in both London and Washington.

Bruce Riedel, a former CIA officer who has advised Mr Obama, told The Sunday Telegraph: "The British Pakistani community is recognised as probably al-Qaeda's best mechanism for launching an attack against North America." Mr Riedel added: "The partnership between the two intelligence communities is dynamic; it is one of great intimacy. We overuse the term special relationship, but this is an extraordinarily special relationship."

"It may be unpopular and unpleasant," says David Larlham, the assistant general secretary of London's Trinitarian Bible Society, a group that distributes bibles worldwide, "but there is a whole lot of truth in the bible that people need to get to grips with." His organization has paid $50,000 to display posters on 125 of London's red double-decker buses that quote PSALM 53: "THE FOOL HATH SAID IN HIS HEART, THERE IS NO GOD."

The move follows a month-long campaign by atheists, agnostics and other non-believers that saw 800 London buses plastered with a less God-fearing slogan: "There's probably no God. Now stop worrying and enjoy your life." Ariane Sherine, a London-based atheist and comedy writer, devised the scheme after seeing a Christian bus advertisement. "It basically said that unless you believe this you're going to end up suffering," she says of the pro-Jesus poster, which featured what she describes as a "fiery apocalyptic sunset. Our campaign provides reassurance for people who might be agnostic and don't quite believe, and worry what will happen to them if they don't."

Similar atheist campaigns have run in Barcelona, Madrid and Washington, DC But since its January 6 launch, the London scheme has been credited with inspiring atheist bus campaigns in Australia, Brazil, Canada, Germany and Italy, where next month posters IN GENOA WILL READ: "THE BAD NEWS IS THAT GOD DOES NOT EXIST. THE GOOD NEWS IS THAT WE DO NOT NEED HIM." The Genoa campaign prompted Father Gianfranco Calabrese, a spokesman for the Archbishop of Genoa, to speak out against what many opponents call blasphemy. "There are some methods which promote dialogue and others which feed intolerance," he said. "Head-on opposition always demonstrates intolerance."

In terms not heard in Washington since the late 1970s under President Jimmy Carter's watch, the new president has sought to terrify Americans into supporting the $800 billion-plus bailout bill. While President Bush was accused shortly after taking office in 2001 of "talking down the economy" - and for saying the economy was "slowing down" - Mr Obama is using ever-heightening hyperbole to hammer home his message. But the strategy brings great risk for the "YES, WE CAN" MAN, who just three weeks ago told America in his inaugural address that despite "a sapping of confidence across our land," his election meant AMERICANS HAD "CHOSEN HOPE OVER FEAR."

"MR HOPE HAS TO BE CAREFUL NOT TO BECOME DR DOOM," said Frank Luntz, a political consultant and author of the book 'Words That Work: It's Not What You Say, It's What People Hear.' Mr Luntz said, "The danger for him is using the Jimmy Carter malaise rhetoric, particularly for Mr Obama, who was elected because people thought he was the solution. There's only so much negativity they will tolerate from him before they will feel betrayed."

Brad Blakeman, a senior aide to Mr Bush from 2001 to 2004, said the new president's language is immature. "It's not presidential. An American leader needs to be hopeful and optimistic - and truthful. Everything he says is parsed; everything he says is searched for deep meaning. When he goes to 'DefCon 5' on the economy and says that we're on the brink of catastrophe, it's absolutely insane." With his fiery rhetoric, the new president runs the risk of terrifying consumers and investors, which could depress the economy even further. WHILE THE ECONOMY IS BAD, IT IS A FAR CRY FROM GREAT DEPRESSION LEVELS, WHEN AS MANY AS 30 PERCENT OF AMERICANS WERE UNEMPLOYED, COMPARED WITH THE 7.6 PERCENT NOW.

The report was conducted by senior editors and lawyers for the Media Standards Trust, which aims to foster high standards in the news media. These included the former Lord Chief Justice Lord Woolf and editor in chief of the Independent, Simon Kelner. The report says THE PUBLIC'S ALREADY LOW TRUST IN NATIONAL NEWSPAPERS IS GETTING WORSE as newsrooms cut costs, putting journalists under greater pressure and increasing inaccuracy.

Sir David Bell, chairman of the Media Standards Trust said the current system of press self-regulation was "fundamentally flawed" and in urgent need of reform. "The system needs to be brought into the 21st century or it runs the risk of greater government intervention and a further accumulation of legal privacy protection," he said. "This is not in the interests of the public or the press and has the potential to constrain press freedom."

The foster mother said she had recently bought a larger car and had been renting a farmhouse, with a pony in a field, so that she could provide more disadvantaged children with a new life. 'That was always my dream and then suddenly, bang, it was gone. I am now in a one-bedroom flat,' she added.

Mike Judge, a spokesman for the Christian Institute, a pressure group which is funding her case, said: 'I cannot imagine that an atheist foster carer would be struck off if a Christian child in her care stopped believing in God. This is the sort of double standard which Christians are facing in modern Britain. In recent months, we have seen grandparents, a nurse, adoption agencies, firemen, registrars, elderly care homes and now a foster carer BEING PUNISHED BECAUSE OF THE CHRISTIAN BELIEFS THEY HOLD. It has got to stop.'

The carer's solicitor Nigel Priestley said: 'There is no doubt that the event that provoked the council was the decision by the girl to be baptised. THIS GIRL WAS 16 AND HAS THE RIGHT TO MAKE THIS CHOICE, so for the council to react in this way is totally disproportionate. Even at this late hour, we hope that the council will resolve the issue.'

A senior aide to President Sarkozy told a private gathering of senior British and French politicians that HE IS TO TELL FELLOW EU LEADERS THAT MR BLAIR IS THE ONLY MAN WHO CAN HELP EUROPE STAND UP TO THE REST OF THE WORLD. The remark by Alain Minc, a key member of Mr Sarkozy's inner circle, is the second French blow to Gordon Brown's standing in two days, coming after Mr Sarkozy said Mr Brown's decision to combat the recession by cutting VAT was a 'mistake'.

Mr Minc, a political wheeler-dealer, entrepreneur and TV show host, was attending a meeting last month of the Franco British Colloque, a high-powered discussion group of British and French politicians, civil servants and opinion-formers. Members are under orders not to reveal the confidential discussions, but The Mail on Sunday has established that Mr Minc used the meeting to win support for Mr Sarkozy's campaign to ensure Mr Blair becomes the President of Europe.

The role is due to be created next year – but only if the EU's controversial Lisbon Treaty is ratified in the autumn by Ireland and the Czech Republic, the two EU countries which have so far refused to do so. Mr Minc told the gathering, which was also attended by French Prime Minister Francois Fillon: 'When the Lisbon Treaty is ratified, Europe will move into a new phase. EUROPE WILL NEED A STRONG LEADER and Nicolas Sarkozy will nominate Tony Blair for the position.'

He said: 'We have to unite and say to Mrs Merkel that we cannot afford not to have Tony Blair, who will be a strong figurehead. He is entirely respected around the world and will be a commanding leader at the helm of Europe.'

Around the UK, thousands of students have occupied lecture theatres, offices and other buildings at more than 20 universities in sit-down protests. IT SEEMS THAT THE SPIRIT OF 1968 HAS RETURNED TO THE CAMPUS. While it was the situation in Gaza that triggered this mass protest, the beginnings of political enthusiasm have already spread to other issues.

John Rose, one of the original London School of Economics (LSE) students to mount the barricades alongside Tariq Ali in 1968, spent last week giving lectures on the situation in Gaza at 12 of the occupations. "This is something different to anything we've seen for a long time," he said. "There is genuine fury at what Israel did. I think it's highly likely that this year will see more student action. What's interesting is the nervousness of vice chancellors and their willingness to concede demands; it indicates this is something that could well turn into another '68."

TECHNOLOGY HAS SET THESE ACTIONS APART FROM THOSE OF PREVIOUS GENERATIONS, allowing a national momentum to grow with incredible speed. THROUGH THE LINKING UP OF INTERNET BLOGS, NEWS OF SUCCESSES SPREAD QUICKLY AND PROTESTS GREW NATIONWIDE.

Levine, who ran the group's American investment bank RBS Greenwich Capital, received the bumper pay deals over 2005, 2006 and 2007, according to sources close to the bank. His pay has never been disclosed since he was not a main-board director. The pay deals came as the bank ramped up its exposures to sub-prime mortgages, asset-backed securities and collateralised debt obligations (CDOs).

Levine became co-head of Greenwich in 2000 after RBS acquired the business as part of its takeover of NatWest. In 2004 he was promoted to a larger role that also saw him head up corporate banking for the group across North America. RBS has unveiled about £12 billion of write-downs since the credit crunch began and is poised to unveil full-year losses of up to £28 billion – the biggest loss in UK corporate history.

There are now six class-action lawsuits that have been filed against the group in the Southern District Court of New York, alleging that RBS misled investors on the true state of its accounts in a series of filings with the US Securities and Exchange Commission (SEC). Other suits allege that RBS was "negligent" in due diligence on its acquisition of ABN Amro, or that it misled investors at the time of its £12 billion rights issue last April. RBS said it was aware of the actions and that they would be "defended vigorously".

Russia and China have been identified as having the most active spy networks operating in the UK but it is understood that some European countries are also involved in espionage attacks against Britain. Details of the spy plots were revealed in a government security document obtained by The Sunday Telegraph which states that Britain is a "high priority espionage target" for 20 foreign intelligence agencies.

Security sources have revealed that the list of foreign agencies operating within the UK includes Iran, Syria, North Korea and Serbia, as well as some members of the European Union, such as France and Germany, who have traditionally been regarded as allies. The document, marked "restricted", warns that foreign spies are trying to steal secrets related to the military, optics, communications, genetics and aviation industries.

The source said: "If a country, such as Russia or Iran, can steal a piece of software that will save it seven years in research and development then it will do so without any hesitation. Russian agents will target anybody that they believe could be useful to them. Spying is hard-wired into the country's DNA. They have been at it for centuries and they are simply not going to stop because the Cold War has ended." The source added that Britain's European neighbours, including Germany and France, were also engaged in industrial and political espionage within the UK.

So far, eight states have introduced resolutions declaring state sovereignty under the Ninth and Tenth Amendment to the Constitution, including Arizona, Hawaii, Montana, Michigan, Missouri, New Hampshire, Oklahoma and Washington. Analysts expect that in addition, another 20 states may see similar measures introduced this year, including Alaska, Alabama, Arkansas, California, Colorado, Georgia, Idaho, Indiana, Kansas, Nevada, Maine and Pennsylvania.

"WHAT WE ARE TRYING TO DO IS TO GET THE U.S. CONGRESS OUT OF THE STATE'S BUSINESS," Oklahoma Republican state Sen. Randy Brogdon told WND. "Congress is completely out of line spending trillions of dollars over the last 10 years putting the nation into a debt crisis like we've never seen before," Brogdon said, arguing that the Obama stimulus plan is the last straw taxing state patience in the brewing sovereignty dispute. "This particular 111th Congress is the biggest bunch of over-reachers and underachievers we've ever had in Congress," he said.

"A sixth-grader should realize you can't borrow money to pay off your debt, and that is the Obama administration's answer for a stimulus package," he added. THE NINTH AMENDMENT READS, "The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people." THE TENTH AMENDMENT SPECIFICALLY PROVIDES, "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."

THE SCALE OF THE PLAN IS LIKELY TO INCREASE PUBLIC ANGER AS THE RECESSION DEEPENS, and add to the frustration of ministers. It comes as Alistair Darling, the Chancellor, announces in The Sunday Telegraph today his plans for an independent review of the way banks are managed, including the bonus system. The review, which ministers hope will address voters' concerns about big payments to executives, will examine the roles of directors and institutional investors and study how British banks compare with overseas institutions.

"We cannot return to business as usual," writes Mr Darling in this newspaper. "It is in everyone's interest to get banks' governance right. It would be wrong to reward people whose excessive risk-taking brought the banks down, causing misery to millions of their customers. Success should be rewarded. Failure should not." The Chancellor will announce the detailed terms of reference of the review, and its chairman, tomorrow.

His tutors felt that a career in paediatrics, the area he was interested in at the time, would be inappropriate because of his sexuality. Tutors said parents might not like him working with their children, nor might other staff. Today, more than a decade later, attitudes have changed greatly and DR VARNEY IS A CONSULTANT IN PUBLIC HEALTH MEDICINE WITH RESPONSIBILITY FOR THE HEALTH OF 40,000 children in the Barking and Dagenham area of London.

Today, more than a decade later, attitudes have changed greatly and Dr Varney is a consultant in public health medicine with responsibility for the health of 40,000 children in the Barking and Dagenham area of London. Dr Varney, who is co-chairman of the Gay and Lesbian Association of Doctors and Dentists (Gladd), explains that attitudes are very much improved.

"I was steered away from some specialties by some consultants who said people might not be too comfortable about me doing paediatrics as a gay man. "I felt it would be difficult to take up a post in certain hospital specialties because of my sexuality. Genitourinary medicine has lots of gay doctors, orthopaedics does not."

Dr Susan Bewley, consultant in obstetrics/maternal-foetal-medicine at Guy's and St Thomas' NHS Foundation Trust, London and fellow co-chairman of GLADD said there were still some cases of doctors facing discrimination, but that generally things are improving. However, she said the NHS also needed to focus on the requirements of lesbian, gay and bisexual patients .

Many people had started cleaning up, believing the waters were receding. Giandomenico said "it's a bit disheartening and people do get upset." Treasurer Wayne Swan on Saturday announced emergency relief funding for flood victims, while a commercial jet laden with food and other supplies left Sydney for the waterlogged region.

Much of Queensland state has been declared a disaster zone, with an area of more than one million square kilometres (386,100 square miles) and 3,000 homes affected by floods due to torrential rains. Hundreds of people were forced to evacuate, or have been stranded in their homes for up to six days. The sugar cane and cattle industries have been devastated by the floods, with tens of thousands of stranded cows starving to death.

Many of the 40-odd recommendations echo the demands of privacy campaigners who have been dismissed as 'extremist' by ministers. But there is one piece missing.

The report is silent on the massive information sharing powers in Clause 152 of the Coroners and Justice Bill, currently being debated in Commons Committee. This proposal appears in legislation to coincide with the report, but has been a key part of the 'Transformational Government' database state agenda in official documents for a long time. It would allow departments to make regulations for officials to take any information and use it for any purpose, without any parliamentary debate.

Phil Booth, NO2ID's National Coordinator said, "The report screams - Stop! Stop unwarranted surveillance. Stop abusing, misusing and losing citizens' information. Stop building the database state - But the government has just stamped on the accelerator. It is not listening.'

Read full report - http://www.publications.parliament.uk/pa/ld200809/ldselect/ldconst/18/18.pdf