The state's Supreme Court ruled earlier that PROTECTION AGENTS HAD HAD NO AUTHORITY TO SEIZE THE CHILDREN IN A RAID ON THE RANCH where they all lived. State officials had accused adult sect members of abusing children. The children, aged between six months and 17 years, have spent nearly two months away from their families. But the court attached restrictions to the reunions.

Children will be allowed back home to the ranch near Eldorado but they must not be taken out of Texas and their parents must agree to take parenting classes. The biggest child custody case in US history has effectively collapsed, the BBC's Rajesh Mirchandani says.

Members of the breakaway Mormon sect that runs the ranch claimed they were being persecuted for their religious beliefs which include polygamy. HEAVILY ARMED POLICE WERE ON HAND DURING THE RAID IN APRIL.

Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation, said it was likely loan-loss provisions and bank failures would rise in coming quarters as the fallout from market turmoil hits the real economy. "While we may be past the worst of the turmoil in financial markets, WE'RE STILL IN THE EARLY STAGES OF THE TRADITIONAL CREDIT CRISIS YOU TYPICALLY SEE DURING AN ECONOMIC DOWNTURN," she said, adding: "What we really need to focus on is the uncertainty surrounding the economy . . . And again it is all about housing."

Ms Bair spoke as the FDIC released its quarterly banking profile, which showed loan-loss provisions in the first quarter were more than four times higher than last year's level. That was the main reason bank earnings fell 46 per cent to $19.3bn from the first quarter in 2007 for the commercial banks and savings institutions where the FDIC insures customer deposits.

Meanwhile, the FDIC said the number of "problem" banks rose in the first quarter from 76 to 90, with combined assets of $26.3bn. Three US banks have failed this year, compared with three for the whole of last year and none in 2005 and 2006. In a sign that SOME US BANKS MAY HAVE UNDERESTIMATED THE COST OF THE HOUSING SLUMP, KeyCorp this week doubled its forecast for loan losses - its second revision in as many months - sending its share price tumbling by more than 10 per cent. During the property boom, KeyCorp expanded in fast-growing regions such as southern California and Florida, where problem loans are now growing.

IN SPAIN, EUROPE'S LARGEST FISH PRODUCER, the action is expected to bring the industry to a halt. Fishermen in France have been protesting for weeks, and their counterparts in PORTUGAL, BELGIUM AND ITALY ARE ALSO JOINING THE CAMPAIGN. UK AND DUTCH LORRY-DRIVERS HELD SIMILAR PROTESTS EARLIER THIS WEEK. The strike reflects anger at the rising cost of fuel, with oil prices above $130 (83.4 euros) a barrel. Trade unions say the cost of diesel has become prohibitively high, after rising 300% over the past five years.

In France the authorities have offered 100m euros in aid, prompting some fishermen to return to work. At dawn on Thursday, French riot police cleared protesters from the Mediterranean oil depots of Fos-sur-Mer and Lavera, and a Total refinery at La Mede in the south. On the same day police clashed with protesters who burned tyres in the Atlantic port of Lorient, while hundreds protested in Quimper, Brittany. Hundreds of farmers have also been blocking oil terminals near the cities of Dijon and Toulouse.

In Italy, at least 5,000 fishermen are expected to strike, the main trade union Federcoopesca says. The government has already refused emergency aid to the industry. BULGARIAN BUS DRIVERS ARE ALSO PLANNING A ONE-HOUR STRIKE ON FRIDAY, following protests by lorry-drivers on Wednesday.

The talks in Caracas, Venezuela, mark the beginning of a week of meetings on the issue, leading up to a three-day UN food crisis summit in Rome on Tuesday. According to the World Bank, GLOBAL FOOD PRICES HAVE RISEN BY 83% OVER THE PAST THREE YEARS. The lender has announced a package of food grants totalling $1.2bn (£608m).

An influential report on Thursday warned that higher food prices might be here to stay as demand from developing countries and production costs rose. Prices would fall, but only gradually, the report by the UN's Food and Agriculture Organisation and the Organisation for Economic Co-operation and Development (OECD) said.

A computer generated image posted on terror forums depict what would happen if a nuclear attack took place in Washington D.C. IT APPEARED AS RUMOURS SWEPT THE INTERNET that the FBI was warning that an Al Qaeda video was about to be released urging militants to use weapons of mass destruction to attack the West. The information WAS SAID TO BE coming from 'groups that monitor Islamic militant websites'.

U.S. analysts said a lot of effort had been put into the video - entitled Nuclear Jihad, The Ultimate Terror - with graphics, music, and clips of different leaders and groups. The same expertise seems to have gone into creating this image of a devastated Washington. One message with the Washington picture said: 'THE NEXT STRIKE'S IN THE HEART OF AMERICA. WHEN? WHEN? WHEN? AND HOW?'

Last night FBI sources said Al Qaeda was desperate to get its hands on a weapon of mass destruction, be it nuclear, chemical, or biological. So far that is only a dream... or, as this picture suggests, a nightmare.

PUBLIC FOUNTAINS ARE DRY IN BARCELONA, SPAIN, a city so parched there's a €9,000 ($13,000) fine if you're caught watering your flowers. A tanker ship docked there this month carrying 5 million gallons of precious fresh water - and officials are scrambling to line up more such shipments to slake public thirst. Barcelona is not alone. CYPRUS WILL FERRY WATER FROM GREECE THIS SUMMER. AUSTRALIAN CITIES ARE BUYING WATER from that nation's farmers and building desalination plants. Thirsty CHINA PLANS TO DIVERT HIMALAYAN WATER. And 18 MILLION SOUTHERN CALIFORNIANS ARE BRACING FOR THEIR FIRST WATER-RATIONING IN YEARS.

Water, Dow Chemical Chairman Andrew Liveris told the World Economic Forum in February, "is the oil of this century." Developed nations have taken cheap, abundant fresh water largely for granted. Now global population growth, pollution, and climate change are shaping a new view of water as "blue gold."

Global water markets, including drinking water distribution, management, waste treatment, and agriculture are a nearly $500 billion market and growing fast, says a 2007 global investment report. But governments pushing to privatize costly to maintain public water systems are colliding with a global "water is a human right" movement. Because water is essential for human life, its distribution is best left to more publicly accountable government authorities to distribute at prices the poorest can afford, those water warriors say. The profit motive and basic human need [for water] are just inherently in conflict."

The new speaker, Ali Larijani, who resigned as the country's nuclear negotiator in October over differences with Ahmadinejad, is a conservative and an ardent advocate of the Iranian nuclear program but is seen as more pragmatic in his approach and perhaps willing to engage in diplomacy with the West. THE POST OF SPEAKER IS NORMALLY A POWERFUL ONE IN IRANIAN POLITICS, and Larijani's elevation also suggests that the new Parliament will be much more likely than the last one to challenge Ahmadinejad, who is up for re-election in June 2009.

In his first speech Wednesday as speaker, Larijani, who won by a vote of 232-31, said one of Parliament's top priorities would be to strengthen the economy. HIS LOPSIDED VICTORY APPEARED TO BE A REBUKE OF AHMADINEJAD, who has faced growing dissatisfaction over grinding inflation and fresh memories of rolling blackouts last winter that left people without electricity and heat for hours at a time - even as the nation's oil revenues were soaring. The economic problems have apparently deepened tensions between Ahmadinejad and the religious establishment he ultimately answers to, in what seems to be A COLLECTIVE RETHINKING OF HIS STEWARDSHIP.

In Washington, a senior administration official said that THE REAL DECISION MAKER IN IRAN WAS STILL AYATOLLAH ALI KHAMENEI, the country's supreme religious leader.

The decree was written by the Vatican's Congregation for the Doctrine of the Faith and published in the Vatican newspaper L'Osservatore Romano, giving it immediate effect. A Vatican spokesman said the decree made THE CHURCH'S EXISTING BAN ON WOMEN PRIESTS MORE EXPLICIT BY CLARIFYING THAT EXCOMMUNICATION WOULD FOLLOW ALL SUCH ORDINATIONS. Excommunication forbids those affected from receiving the sacraments or sharing in acts of public worship.

Rev. Tom Reese, a senior fellow at the Woodstock Theological Center at Georgetown University, said he thought the decree was meant to send a warning to the growing number of Catholics who favor admitting women to the priesthood. "I think the reason they're doing this is that they've realized there is more and more support among Catholics for ordaining women, and they want to make clear that this is a no-no," Reese said.

THE CHURCH SAYS IT CANNOT CHANGE THE RULES BANNING WOMEN FROM THE PRIESTHOOD BECAUSE CHRIST CHOSE ONLY MEN AS HIS APOSTLES. Church law states that only a baptized male can be made a priest. Proponents of women's ordination say Christ was only acting according to the social norms of his time.

The US Geological Survey said the earthquake struck at 1546 GMT at a shallow 6.2 miles (10 km). "It was close to the town of Selfoss and there is apparently, according to the preliminary news, considerable damage in that town," he said. "Iceland is sitting on a plate boundary where the North America and Eurasian plates are drifting apart. So it's a country of volcanoes and earthquakes and so earthquakes are common but large earthquakes are relatively rare," he added.

Iceland, which has a population of about 300,000, is a geologically unstable volcanic island in the north Atlantic. A spokesman for Iceland's Institute of Earth Sciences said the country had been expecting further quakes after a series of tremors in the same area in 2000.

Mr Blair, who is now A PEACE ENVOY TO THE MIDDLE EAST, told Time Magazine that religious belief had given him "strength" while in power. He is launching a "faith foundation" in New York on Friday. Mr Blair, who recently converted to Catholicism, said: "Faith is part of our future, and faith and the values it brings with it are an essential part of MAKING GLOBALISATION WORK."

His foundation WILL ATTEMPT TO BRING RELIGIONS TOGETHER to tackle global issues such as the UN's eight millennium development goals, which range from eradicating extreme poverty to ensuring environmental sustainability. One of its first priorities will be to fight the spread of malaria. Mr Blair said: "If you got churches and mosques and those of the Jewish faith working together to provide the bed nets that are necessary to eliminate malaria, what a fantastic thing that would be."

Mr Blair is not being paid for his work as a Middle East envoy for the "quartet" of the United Nations, United States, European Union and Russia. But he has lucrative consultancy posts with insurer Zurich and merchant bank JP Morgan, on top of a reported £5m deal for his Downing Street memoirs.

It quotes Commission President Jose Barroso warning: "If there was a no in Ireland, it would have a very negative effect for the EU. We will all pay a price for it, Ireland included." A leaked memo revealed how IRELAND'S FOREIGN MINISTER DERMOT AHERN HAD BEEN ASSURED THAT THE EUROPEAN COMMISSION WOULD 'TONE DOWN OR DELAY' ANY ANNOUNCEMENTS 'THAT MIGHT BE UNHELPFUL'.

These issues include defence, farm subsidies, and harmonising company tax. Neil O'Brien is quoted saying, "THIS IS CLASSIC BRUSSELS TACTICS. Stage one is to TRY TO COVER UP WHAT THE GRAND PROJECT REALLY MEANS, THEN BULLY VOTERS INTO ACCEPTING IT."

In the ceremony, the authorities said in a statement, the terms husband and wife will be replaced by "party A" and "party B." The union, in all its effects, WILL IN NO OTHER WAY DIFFER FROM A NORMAL CIVILIAN MARRIAGE OFFICIATED BY STATE AUTHORITIES. In an opinion that could have nationwide implications, the California Supreme Court on May 15 voted 4-3 in favor of plaintiffs who argued that restricting marriage to men and women was discriminatory.

The ruling added that all California couples had a "basic civil right" to marry "without regard to their sexual orientation." California is now only the second US state after Massachusetts to legalize unions between homosexuals. Supreme Court rulings go into effect 30 days after publication, but state authorities set June 17 as the date for the first marriages to be officiated, since the ruling can be appealed up to June 16.

Wednesday's ruling coincided with a Field opinion survey that found Californians in favor of gay marriage OUTNUMBERING THOSE AGAINST BY A 52-41 PERCENT MARGIN, in stark contrast with the 59-28 percent advantage gay marriage opposers had in the first survey the group took on the issue in 1977.

The Bishop of Rochester, the Rt Rev Michael Nazir-Ali, claimed the "social and sexual" revolution of the 1960s had led to a steep decline in the influence of Christianity over society which church leaders had failed to resist. He said that in its place, Britain had become gripped by the doctrine of "ENDLESS SELF-INDULGENCE" which had led to the destruction of family life, rising levels of drug abuse and drunkenness and mindless violence on the streets.

The bishop warns that the modern politicians' catchphrases of respect and tolerance will not be strong enough to prevent this collapse of traditional virtues, and said radical Islam is now moving in to fill the void created by the decline of Christianity. Dr Nazir-Ali claims in the new article that Britain, previously a "rabble of mutually hostile tribes", WOULD NEVER HAVE BECOME A GLOBAL EMPIRE WITHOUT THE ARRIVAL OF CHRISTIANITY.

BUT HE SAID THE CHURCH'S INFLUENCE BEGAN TO WANE DURING THE 1960S, and quotes an academic who blames the loss of "faith and piety among women" for the steep decline in Christian worship. He says Marxist students encouraged a "social and sexual revolution" to which liberal theologians and Church leaders "all but capitulated".

"It is this situation that has created the moral and spiritual vacuum in which we now find ourselves. While the Christian consensus was dissolved, nothing else, except perhaps endless self-indulgence, was put in its place." He said that the Church of England must retain its importance in public life even if it does not remain privileged as the established church. "It is necessary to understand where we have come from, to guide us to where we are going, AND TO BRING US BACK WHEN WE WANDER TOO FAR FROM THE PATH OF NATIONAL DESTINY."

THE VATICAN WELCOMED IT and the Tel Aviv newspaper Yedioth Ahronot reported that Saudi muftis were sending out feelers to Israeli rabbis about attending such talks, a report which was swiftly denied in Riyadh. FaithWorld's take on it at the time was sceptical. As Andrew Hammond in Riyadh wrote: "THE KING IS SEEN IN SAUDI ARABIA AS A REFORMER BUT ONE WHO HAS BEEN OUTMANEUVERED BY THE POWERFUL RELIGIOUS ESTABLISHMENT AND THEIR ALLIES IN THE ROYAL FAMILY. The interfaith conference call may be a kind of trial balloon launched to see what kind of reaction it gets in a country where liberals and religious conservatives are engaged in an ideological struggle for the future of Saudi Arabia."

The World Jewish Congress, after it's latest meeting, issued a statement on Monday welcoming the king's proposal. It quoted WJC President Ronald Lauder as saying many obstacles still stood in the way but "King Abdullah's initiative is a laudable step forward. We hope that other religious and political leaders throughout the world will be encouraged to join." WJC Governing Board Chairman Matthew Bronfman added: "The World Jewish Congress is ready to participate in any serious inter-faith talks that are based on mutual respect."

The idea that Saudi Arabia would invite Christians and Jews to Islam's heartland for "conferences between the religions to protect humanity from folly," as Abdullah put it, is clearly too tempting for the Tel Aviv newspapers to ignore. BUT IS IT REALISTIC TO EXPECT THE SAUDIS TO HOST SUCH TALKS?

Eight farms were infected with the disease and farmers lost millions due to livestock movement restrictions. Investigators concluded the virus had probably escaped from a drain at the government's Pirbright labs in Surrey. But the council says it is impossible to tell which of the bodies using the site was responsible for the leak.

A series of probes found the source was probably a damaged drain shared by the Institute of Animal Health and drug company Merial. But there is no clear evidence of exactly how the leak happened or which organisation was the exact source.

A spokesman for The National Union of Farmers said: "The foot and mouth outbreak had a massive effect on the local and national economy. The NFU is considering the potential civil liability of the two laboratories." He criticised the "creeping degradation of standards" at the site, which he labelled "shabby and dilapidated".