The study concluded that the statements "were part of an orchestrated campaign that effectively galvanized public opinion and, in the process, led the nation to war under decidedly false pretenses." The study was posted Tuesday on the Web site of the Center for Public Integrity, which worked with the Fund for Independence in Journalism. White House spokesman Scott Stanzel did not comment on the merits of the study Tuesday night but reiterated the administration's position that the world community viewed Iraq's leader, Saddam Hussein, as a threat.

"The actions taken in 2003 were based on the collective judgment of intelligence agencies around the world," Stanzel said. The study counted 935 false statements in the two-year period. It found that in speeches, briefings, interviews and other venues, Bush and administration officials stated unequivocally on at least 532 occasions that Iraq had weapons of mass destruction or was trying to produce or obtain them or had links to al-Qaida or both.

"It is now beyond dispute that Iraq did not possess any weapons of mass destruction or have meaningful ties to al-Qaida," according to Charles Lewis and Mark Reading-Smith of the Fund for Independence in Journalism staff members, writing an overview of the study. "IN SHORT, THE BUSH ADMINISTRATION LED THE NATION TO WAR ON THE BASIS OF ERRONEOUS INFORMATION THAT IT METHODICALLY PROPAGATED AND THAT CULMINATED IN MILITARY ACTION AGAINST IRAQ ON MARCH 19, 2003."

The 69-year old African statesman faces a tough challenge resolving a bitter standoff between Kenyan President Mwai Kibaki and opposition challenger Raila Odinga over a disputed poll that plunged Kenya into chaos and ethnic bloodshed. "We are determined to work with the parties to find a solution as quickly as possible," Annan told reporters after landing in Nairobi late on Tuesday.

"We want to determine by tomorrow how quickly the parties want to work with us," he said, flanked by fellow mediators Benjamin Mkapa, the former president of Tanzania, and Graca Machel, the wife of former South African leader Nelson Mandela. Clashes between Kibaki and Odinga supporters, ethnic unrest and a brutal crackdown by the security forces have killed at least 650 people over the past month.

Odinga says a December 27 poll that returned Kibaki to power was fraudulent. His supporters have taken to the streets and mobs mostly targeting Kibaki's Kikuyu tribe have hacked people to death and burnt homes. There have also been reprisal killings.

GOVERNMENT SUPPORT FOR GAY COUPLES and single parents, the rise in cohabitation and an official failure to support traditional marriage are said to have resulted in previously unconventional lifestyles becoming widely accepted. The annual report says marriage - once the bedrock institution of British society - IS SEEN BY TWO THIRDS OF PEOPLE as virtually indistinguishable from cohabitation.

The survey exposes the decline in the importance of marriage with the finding that MOST PEOPLE SEE WEDDINGS AS AN EXCUSE FOR A PARTY rather than a public declaration of lifelong commitment. The average cost of a wedding may have soared to £17,370, but 53 per cent of people regard it simply as a celebration.

The head of David Cameron's social justice policy unit, Iain Duncan Smith, identified failing families as a key force in social breakdown. HE CLAIMED THAT CHILDREN FROM BROKEN HOMES WERE MORE LIKELY TO FAIL AT SCHOOL, FALL FOUL OF THE LAW OR TURN TO DRINK OR DRUGS. "The worry remains that family break-up is more associated with cohabiting couples than married ones and to encourage cohabitation is to risk the security of children. The Government needs to signal its support for marriage."

Mr Duncan Smith said there was a lack of honesty in the political debate. "Family breakdown is a major cause of social exclusion," he said. "For years this debate has been stifled, with Government research papers even excluding marriage as a special family category. Small wonder that the cost of family break-up grows, estimated at £20-£24 billion."

Japan's Nikkei 225 index closed 2.0% higher as gains were limited by concern about the effects that the rate cut were having on currencies. Australia, South Korea and Hong Kong saw share prices rebound, following days of heavy losses. Australian shares finally managed to end their 12-day losing streak, closing up by 4.4%.

In Hong Kong, the Hang Seng Index traded more than 5% higher, rebounding from Tuesday's drop of nearly 9%, while South Korean shares were up about 1%. Global shares rebounded after the US central bank cut its main interest rate to 3.5% from 4.25% on Tuesday in an attempt to pull the world's biggest economy away from a recession. Japanese Finance Minister Fukushiro Nukaga welcomed the move, saying he hoped it would have a positive effect on Japan's markets. "I expect the move will stabilize US financial markets and the global economy as a whole," he said.

One analyst said that while the rate cut might help to ease concerns in the short-term, stock markets were set to be volatile in coming weeks. "Caution still rules the long-term picture," said Markus Steinbeis of Pioneer Investments.

Police have confirmed they are investigating a possible suicide chain as the victims are all linked. Several of the victims have posted personal profiles on the social networking internet site Bebo, prompting a theory that it has become fashionable and even prestigious to have an internet memorial site. The horrified mother of another victim said: "It's like a craze - a stupid sort of fad. They all seem to be copying each other by wanting to die."

Firing missiles off the coastline of two Nato members is the latest in a series of Kremlin moves flexing Moscow's military muscle on the world stage. Russian bombers joined aircraft carriers, battleships and submarine hunters from the Northern and Black Sea fleets for the Atlantic exercises, which come as the country enters an election campaign to choose a successor to President Putin.

"The air force is taking a very active part in the exercises of the navy's strike force in the Atlantic," the Russian air force said in a statement reported by Reuters. "Today, two strategic Tu-160 bombers departed for exercises in the Bay of Biscay, which ... will carry out a number of missions and will conduct tactical missile launches." There was no immediate comment from Nato about the exercise.

Mr Putin has used military manoeuvres, including controversial North Sea overflights, to revive domestic and international respect for Russia's armed forces which were shattered by the chaos of the 1990s. He has also boosted military spending, renewed long-range bomber missions and approved a plan to upgrade Russia's nuclear attack forces, which he said was needed after Nato built up its forces close to Russia's borders. But some analysts note that while the sabre-rattling is popular at home, Russian military spending in absolute terms is substantially lower than that of China, Britain or France and less than a tenth of that of the United States.

The prime minister was forced to call a vote of confidence after Clemente Mastella, the former justice minister, withdrew his support on Monday. Mr Mastella's Udeur Christian Democrat party has three crucial seats in the Senate, where Mr Prodi had a majority of two, at best. New elections could be called, or a caretaker government could be appointed to reform the complicated electoral law if Mr Prodi loses the vote of confidence in both chambers.

La Stampa, a newspaper, said that the Holy See was trying to meddle in Italian politics. "Prodi's government dared to challenge the ecclesiastical hierarchy for the second time and this time it has had its hands burned," it said. Franco Giordano, a Communist MP, said that Mr Mastella was merely a "loudspeaker" for the Vatican, and that he had switched sides because he was told to. As Mr Mastella announced his defection on Monday, Cardinal Angelo Bagnasco, the head of the Italian Bishops Conference, attacked Mr Prodi. "The country is in pieces," he said. "There is lazy administration and a shirking of responsibility."

He cited the rubbish crisis in Naples and deplored the policy on gay rights. He also accused the government of having blocked the Pope from visiting La Sapienza university after some students demonstrated against the pontiff's perceived anti-science stance.

The Bank's Monetary Policy Committee is scheduled to decide on interest rates on 7 February but now faces huge pressure to act before then. Governor Mervyn King can call an emergency meeting if he wishes. Even Gordon Brown's close ally Ed Balls gave a clear signal today that the Bank should cut interest rates to shield Britain from a global downturn.

In the first half-hour of trading the market looked set for a repeat of yesterday's meltdown with the FTSE 100 index of top shares slumping by 239.5 points. That was a 4.3 per cent fall on top of yesterday's 5.5 per cent crash, bringing the losses over 24 hours to £120 billion.

The Footsie ended the day 161.9 points up at 5740.1. It was the index's first daily rise for a week, and helped claw back some ground after the 5.5 per cent fall yesterday as gloom descended on markets around the world. The 300-point about-turn in less than a hour of trading is thought to be the most dramatic in share market history, excepting declarations of war and 9/11.

David Buik of City bookmakers Cantor Index said: "I've never seen anything like it in all my born days. Everyone's running around like headless chickens." Dealers said share prices were on a knife edge. On Wall Street, the Dow Jones Average slumped 354.7 points to 11744.6 in early trading. This was less than the 500 points expected.

The International Rescue Committee (IRC), which carried out the study with Australia's Burnet Institute, said Democratic Republic of Congo's 1998-2003 war and its aftermath had caused more deaths than any other conflict since World War Two. "CONGO'S LOSS IS EQUIVALENT TO THE ENTIRE POPULATION OF DENMARK OR THE STATE OF COLORADO PERISHING WITHIN A DECADE," George Rupp, president of the aid group, said in a statement.

The findings were published on the day Congo's government and warring eastern rebel and militia factions were due to sign a ceasefire in the hope of halting fighting in the east which has raged on since the nominal end of the 1998-2003 war. Rupp said that although Congo's war formally ended five years ago, "ongoing strife and poverty continue to take a staggering toll. THE CONFLICT AND ITS AFTERMATH, IN TERMS OF FATALITIES, SURPASS ANY OTHER SINCE WORLD WAR II," he added.

Malaria, diarrhea, pneumonia and malnutrition, aggravated by conflict, were the top killers in Congo, the survey said. "Most of the deaths are due to easily treatable and preventable diseases through the collapse of health systems and the disruption of livelihoods," said IRC director of global health programs Richard Brennan, one of the survey's authors.

The US Federal Bank has slashed its interest rates by 0.75%, down to 3.5%, ahead of its meeting next week in a bid to shore up the struggling global economy and stave off a recession.

It is the worst start to the year for the stock market since records began in 1936 and left the Bank of England facing acute pressure to slash interest rates. A quarter point cut to 5.25 per cent is already predicted at the next meeting of its Monetary Policy Committee in two weeks. However, the dramatic volatility suffered by stock markets globally has seen investors head for the exit in their droves. But experts advised private investors today not to panic amid the turmoil.

THE EARLY-MORNING DROP IN SHARE PRICES OF THREE PER CENT was an early indication of another turbulent day to come in trading rooms around the world, with French and German markets also opening down. It came following further falls on Asian markets overnight, as fears of a possible US recession swept through global markets. IT IS THE WORST START TO THE YEAR FOR THE STOCK MARKET SINCE RECORDS BEGAN IN 1936 and left the Bank of England facing acute pressure to slash interest rates.

Since January 2 it has lost nearly 1,000 points, or 13.6 per cent, hammering savings, pensions and other investments. ALL EYES WILL BE ON WALL STREET TODAY when the Dow Jones index re-opens. It was closed yesterday for a holiday, but the futures market remained open and offered a grim portent, falling 546 points or 4.5 percent. Should the Dow follow a similar pattern it would rank as the fourth-largest point loss ever for the New York exchange. Last night experts were forecasting a 400-point drop. David Buik, a partner at the brokers BGC Partners, said: "THE SMELL OF FEAR HANGS OVER THE CITY. I'VE NEVER SEEN IT THIS BAD."

Yet another savings giant yesterday shut the door to investors seeking to take out money. Around 200,000 clients of SCOTTISH WIDOW'S £2 BILLION PROPERTY FUNDS WILL BE FORCED TO WAIT SIX MONTHS TO WITHDRAW THEIR CASH. It is the second firm in a week to hit the panic button over the high number of INVESTORS RUSHING TO BALE OUT.

She was speaking in Brussels after French President Nicolas Sarkozy said a European tax could be imposed on states that refused to cap carbon emissions. Ms Schwab said the United States had been "dismayed" at climate being used as a reason to close markets.

Speaking alongside her, EU trade commissioner Peter Mandelson agreed restrictions were not the way forward. "They're not cost efficient, they carry a risk of retaliation, they would result in increasing cost for European industry at large," he said.

At the end of a rowdy five-hour debate a motion to approve the bill in principle won by 362 votes to 224. But the European Union (Amendment) Bill will be debated line-by-line over the coming weeks. Prime Minister Gordon Brown signed the Lisbon Treaty in December but Parliament must ratify it. It was designed to replace the EU Constitution, which was abandoned in 2005, BUT ON WHICH LABOUR HAD PROMISED A REFERENDUM - the government says a referendum is not needed for the new treaty.

"The government is convinced that Britain's membership of and full engagement with the EU is good for Britain and good for Europe," he told MPs. "We believe this treaty is good for Britain and good for Europe." He warned against THE CONSERVATIVE "MYTH" OF A EUROPEAN SUPER STATE and said the party's policies would lead to "a second decade of institutional inertia that diverts Europe from the real issues that face it". But shadow foreign secretary William Hague said the treaty "BRINGS ABOUT FUNDAMENTAL CHANGE" in the EU's institutional structure, changes which the government "now pretend are matters of little importance about which the people of this country need not be troubled."

Labour MPs Frank Field, Gwyneth Dunwoody and Gisela Stuart were among those who stood up to question whether the treaty was fundamentally different from the constitution. During the lively debate, Tory MP Andrew Robathan was told to retract comments that the foreign secretary's speech was "a rant of propaganda that would be worthy of Goebbels." On Sunday the Commons foreign affairs committee said parts of THE LISBON TREATY WERE NO DIFFERENT FROM THE ABANDONED EU CONSTITUTION, AND ACCUSED THE GOVERNMENT OF PUBLICLY DOWNPLAYING THE IMPORTANCE OF SOME NEW EU INSTITUTIONS AND ROLES.

Millions of people were short of water, and dozens of ships had run aground in the river since October, reports said. China faces droughts and floods annually but has seen a recent increase in extreme weather conditions.
In the major Yangtze port city of Hankou, water levels fell to 13.98m (46ft) in early January - the lowest level since records began in 1866, China Daily said, citing local media.

"This year's drought is rare," the daily quoted a local farmer as saying. "Just days ago, I saw ship after ship running aground. I have never seen that before." Water levels in other rivers and reservoirs in China are also reported to be at record lows. Officials said that an earlier than expected dry season was to blame for the drought. Authorities have already warned that climate change could make weather conditions in China much tougher in the years ahead.

Worst hit is Hubei province, where crops have been destroyed and roads blocked by the heaviest snow seen in the area for 16 years. More than 7.8 million people there have been affected by the weather, a local official told Xinhua news agency. The snow had also cut a transmission line carrying electricity from the massive Three Gorges Dam to the city of Shanghai.

Flights in the region had been delayed and long-distance coaches cancelled, leading to large crowds at railway stations. More snow is forecast for central China over the next two days, meteorologists said.