Wednesday, March 25, 2009

Streaming games service launched


A new online video game distribution network hopes to revolutionise the way people play games and re-write the economics of the industry.

OnLive, to be launched at the Game Developer Conference in San Francisco, aims to let players stream on-demand games at the highest quality level.

The service could provide competition for Playstation, Xbox, and the Wii.

"OnLive is the most powerful game system in the world," said company founder Steve Perlman

"No high-end hardware, no upgrades, no endless downloads, no discs, no recalls, no obsolescence. With OnLive, your video game experience is always state-of-the-art," he declared.

Mr Perlman said that the company has developed a data compression technology that allows games to be powered on remote servers rather than on game consoles.

Users download games instantly through the OnLive MicroConsole or straight onto a PC or Mac. The MicroConsole also connects to any TV. All that is required is a high speed connection.

Gamers will be able to select from an on-demand catalogue of video titles stored on these data servers. The Palo Alto based company promises that the service will provide instant access to the most advanced games in the world, solo and multiplayer.

To date nine publishers have signed up including familiar names like Ubisoft, Electronic Arts, THQ and Atari Interactive.

'A world without consoles'

Initial reaction from the gaming press has been a mixture of the positive and the sceptical.

Sid Shuman of GamePro told PC World "When we finally got hands-on with OnLive, I gotta admit, I was impressed."

OnLive screen shot
So far nine big game publishers have signed up to the service

Michael McWhertor of Kotaku.com admitted "We were a little suspicious of OnLive's capability to deliver perceptually lag-free on-demand games. But then we played a hasty online game of Crysis Wars on the service and became a little less suspicious. It seemed to work.

"Will it work in the wild? It might," concluded Mr McWhertor.

At VentureBeat, which is holding its own games conference called GamesBeat, Dean Takahasi said "OnLive's technology could eventually sweep through all forms of entertainment and applications, providing the missing link in helping the internet take over our living rooms."

"It remains to be seen if this is just vapourware," said Cesar A. Beradini of TeamXbox.com.

"The real question is what would happen if this actually works as promised? Is it the end of Sony, Microsoft and Nintendo as console manufacturers?" he asked.

From that standpoint Michael Pachter of Wedbush Morgan Securities told USA Today "OnLive shows the potential for a gaming world without consoles" if the pricing is right.

According to Mr Perlman a new era for gaming is here.

"We've cleared the last remaining hurdle for the video games industry: effective online distribution.

"By putting the value back into the games themselves and removing the reliance on expensive, short-lived hardware, we are dramatically shifting the economics of the industry. Delivering games instantly to the digital living room is the promise game fans have been waiting for," he said.

Japan's February exports halved


Japan's exports saw a record plunge in February, falling by nearly half compared with a year earlier, according to the country's finance ministry.

Exports fell 49.4% year-on-year to 3.526tn yen ($36bn; £24.6bn), though this was in line with forecasts.

The latest data comes after figures for January showed year-on-year exports nearly halved that month as well.

The world's second-largest economy is suffering in the downturn as demand for its products has collapsed.

Surplus

Exports in January declined 45.7% year-on-year.

Japan, which is especially reliant on exports, has been hit as consumers worldwide tighten their belts in a move to cut costs.

"Japanese growth was exclusively dependent on exports," said Professor Noriko Hama at Doshisha Business School in Kyoto.

"It was natural that Japan would be hit a lot more severely than other countries."

Car exports dropped more than 70% for February. Car firms are cutting jobs and reducing shifts in response to slowing demand.

But on the upside, Japan's trade balance was in surplus in February after a record deficit in January, because the decline in exports was offset by a sharp fall in imports, which were 43% lower for the month.

This surplus last month, which reached 82.4bn yen ($841m), was the first in five months.

Japan, which is officially in recession, saw its economy contract by an annualised 12.1% in the last three months of 2008, the biggest contraction among developed countries.

The government is working on a third stimulus package, which local media reports have estimated will be worth 20 trillion yen.


Do you live in Japan? Have these economic changes affected you? What do you make of the changes to the Japanese economy? Can a stimulus plan work? Tell us your thoughts on the story by filling in the form below.

Obama pledges economic recovery


Barack Obama has told Americans he sees signs of economic recovery, but urged them to be patient and look beyond their "short-term interests".

The US president said his draft budget would build a stronger economy which would mean America did not face a repeat crisis in 10 or 20 years.

"We will recover from this recession," he told a prime-time news conference in Washington DC.

His $3.6tn (£2.5tn) budget faces its first tests in Congress this week.

Mr Obama said his economic strategy, and his new budget which was now being prepared, was based on creating new jobs, rejuvenating the housing market, and creating new liquidity and lending by the banks.

Cannot play media.You do not have the correct version of the flash player. Download the correct version

Obama urged Americans to be patient

He stressed that immediate action was necessary, and urged both Congress and Americans in general to support his plan.

Opposition to the package, which features increased health care coverage, higher education spending and a new "cap-and-trade" system on greenhouse gas emissions, is coming from his own Democratic Party as well as the Republican opposition.

In a wide-ranging question-and-answer session that touched on the environment, the drugs trade and stem-cell research, Mr Obama said he expected "steady progress" in resolving disputes with Iran.

He said the status quo in the Israeli-Palestinian conflict was unsustainable, adding that it was critical for the US to advance a two-state solution.

'Signs of progress'

In an eight-minute address at the start of the hour-long session, Mr Obama said his administration had "put in place a comprehensive strategy designed to attack this crisis on all fronts".

It will take time, it will take patience, and it will take an understanding that when we all work together... that's when we succeed
Barack Obama

"And we are beginning to see signs of progress," he said.

"The budget I submitted to Congress will build our economic recovery on a stronger foundation, so that we do not face another crisis like this 10 or 20 years from now."

"We have made the tough choices necessary to cut our deficit in half by the end of my first term - even under the most pessimistic estimates," he argued.

Mr Obama urged US citizens to be patient.

Cannot play media.You do not have the correct version of the flash player. Download the correct version

Obama on Iran diplomacy

"It will take time, it will take patience, and it will take an understanding that when we all work together, when each of us looks beyond our own short-term interests to the wider set of obligations we have to each other, that's when we succeed," he said.

Asked about the flow of illegal drugs into the US, Mr Obama said his administration would go beyond the $700m plan announced on Tuesday to support Mexico in its fight against the powerful drugs cartels.

He also praised his Mexican counterpart, Felipe Calderon, for his efforts against the cartels.

Budget fight

The stage is set at Congress for a tough fight over the budget with Mr Obama, who has been in office for barely two months, correspondents say.

There is little or no Republican support for this budget
Mitch McConnell
Senate Republican leader

On Wednesday, he is due to meet Senate Democrats in a bid to rally support for an increased deficit, reckoned to be $1.4tn for next year.

The House budget committee will begin writing its version of the budget plan the same day, and on Thursday the Senate budget committee will begin crafting its budget plan for 2010 and the four subsequent years.

Republicans complain that the draft budget expands government and raises taxes on the rich and some small businesses.

"There is little or no Republican support for this budget," Senate Republican leader Mitch McConnell told Reuters news agency.

A Congressional budget office analysis released last Friday estimates that President Obama's budget would generate deficits totalling $9.3tn over the next decade.

"If these plans are carried out, we run the risk of looking like a Third World country," Mr McConnell was quoted by the Associated Press as saying.

Kent Conrad, the Democratic chairman of the Senate budget committee, is preparing to slash Mr Obama's 11% increase for non-defence appropriations to perhaps 6%.

"We cannot have debt pile on top of debt," he said.

"In the short term, yes, we have got to have added deficits and debt to give lift to this economy, but longer term, we have got to pivot."

Mr Obama is also preparing for a European trip next week that includes the London G20 summit on the global economic crisis.


Are you reassured by President Obama's optimism about economic recovery? Send us your comments on the presidential news conference using the form below:

Clijsters poised to make comeback


Former world number one Kim Clijsters will hold a news conference on Thursday when she is expected to announce her return to professional tennis.

The 25-year-old Belgian retired in May 2007 and married basketball player Brian Lynch before giving birth to her first child in February last year.

Lindsay Davenport has revealed that Clijsters asked her advice on travelling the circuit with children.

Belgian newspapers claim Clijsters will return to top-level tournaments.

Clijsters was runner-up twice at the French Open and once at the Australian Open, reached two Wimbledon semi-finals, and won the US Open in 2005.

606: DEBATE
Stuart

Journalists have been invited to the northern Belgian city of Bree for a press conference on Thursday when Clijsters will "unveil her plans for 2009".

"For six or seven weeks Kim has trained here regularly, up to three hours per day," said a spokesman for Bree tennis club in Het Belang van Limburg.

"And I don't think that she does that only for exhibition duels. She seems fit, I don't think she is far from her best form."

Speaking last week, Davenport said: "Kim sent me an email with questions about how to travel and live with a child on the WTA circuit, so I think she will play tournaments."

And Clijsters' former coach Carl Maes admitted he would not be surprised if the Belgian did make a comeback.

"When she stopped I never said it would be the last time we would see her on the tour," he said.

"I think it's too early to tell but, somewhere in the back of her mind, it must be something that she's considering.

"If she's fit and wants to play then I think it's a possibility. I wouldn't be completely surprised."

Clijsters will play alongside Tim Henman, Steffi Graf and Andre Agassi in a series of exhibition matches to test Wimbledon's new Centre Court roof on 17 May.

She is also scheduled to play an exhibition at the Ordina Open in Rosmalen against Michaella Krajicek on 14 June, as well as two matches for the St. Louis Aces in the World Team Tennis league during the summer.

On confirming her retirement in May 2007, Clijsters said: "Time to marry. Time for children? Time for cooking and playing with my dogs. And particularly a lot of time with my friends and family.

"No more travelling. No more stepping in and out of planes. No more having to read gossip or lies in the papers."

Flintoff fit for third one-dayer


Andrew Flintoff has been passed fit to play in the third one-day international with the West Indies in Barbados.

The 31-year-old returned home after picking up a hip injury during the third Test in Antigua but rejoined the squad ahead of the one-day series.

"I've bowled as near to 100% in a net because playing in a match brings a bit more out of you," said Flintoff.

He was close to returning for Sunday's 21-run defeat in Guyana but said "we erred on the side of caution".

Flintoff added: "I've been bowling for the last week, bowled 10 overs over the previous two days and done my training and work. I was close to playing on Sunday but I'll definitely be fit for Friday."

England now face a selection headache as to who makes way for the all-rounder for the third match of the five-game series.

606: DEBATE

James Anderson and Steve Harmison both impressed in Sunday's match, while Stuart Broad excelled in Friday's opener.

Gareth Batty could be the man to make way - if England decide to operate without a spinner.

The series is currently level at 1-1 after England won the first match by one-run on the Duckworth-Lewis method in farcical circumstances.

Women's tennis chief to step down


Larry Scott is resigning after six years as chairman and chief executive officer of the WTA Tour, the governing body of professional women's tennis.

Scott will become a commissioner in a US college sports conference on 1 July.

After taking up the post in 2003, Scott helped secure equal prize money for women at Wimbledon and the French Open.

The American also helped the WTA land the largest sponsorship deal in the history of women's sport with Sony Ericsson at US$88m over six years.

"With women's professional tennis more popular than ever, the Tour in the strongest business position in its history and a fantastic senior management team in place, now is the right time for me to embrace a new challenge consistent with my family and personal goals, and leave room for the next generation of Tour leadership to take on new responsibilities," said Scott.

He will work with the Tour board on the selection process for the next chairman and chief executive

IPL confirms South Africa switch


The 2009 Indian Premier League will now take place in South Africa.

Security concerns in India forced organisers to seek an alternative host, with England a possible destination.

But IPL boss Lalit Modi opted for South Africa following talks with Cricket South Africa (CSA), ultimately because of the favourable weather conditions.

The tournament, which will feature 59 matches across six venues, will start a week later than planned, running from 18 April to 24 May.

The opening match will be played in Cape Town, while Johannesburg will stage the final, with Pretoria, Durban, Port Elizabeth and East London also venues for matches.

"We are very happy to confirm that South Africa will host the 2009 Indian Premier League tournament," said Modi.

If the choice is between no tournament and a tournament in another country, then we clearly prefer the latter
Ranjit Borthakur, vice chairman of the Rajasthan Royals

"The South African public loves Twenty20 cricket and CSA successfully hosted the inaugural ICC World Twenty20. Both these factors weighed heavily in South Africa's favour."

CSA chief executive Gerald Majola expressed his delight, saying: "This is a great compliment to both CSA and our nation to be shown this confidence in our ability to hold one of the world's top sporting events at short notice.

"This event will strengthen the ties even further between South African and Indian cricket, as well as binding our nations even closer together.

"We are looking forward to hosting some of the world's best cricketers, and we can assure them they will be provided with the very best facilities to show their skills. We will do the IPL proud."

The unpredictable April weather was one of the reasons the IPL decided not to pursue its interest in moving the tournament to England.

"To be honest I'm not desperately surprised," England and Wales Cricket Board chairman Giles Clarke told BBC Radio 5 Live.

"We all know what the weather's like in April in England. When I got my first telephone call (from the IPL) I said I can't give you any guarantees about the British weather - nobody can."

Cannot play media.You do not have the correct version of the flash player. Download the correct version

BBC sports editor Mihir Bose reflects on South Africa hosting the IPL

But despite missing out on the potential financial benefits that hosting the tournament could have brought to the English game, Clarke said he was pleased for the sport as a whole that the IPL had found a new home in South Africa.

"It's very important this tournament is played," he added. "The IPL is understandably in a hurry to get things organised. I'm just very pleased it's going to be played."

The decision is a major coup for South Africa, who will enjoy the financial benefits of hosting such a high-profile tournament as well as underline their readiness to host the football World Cup in 2010.

The tournament will feature the biggest and best names in the sport, including England's Kevin Pietersen, Andrew Flintoff, Owais Shah, Ravi Bopara and Paul Collingwood.

"I'm a bit sad it's not in India," Fintoff told BBC Radio 5 Live. "Playing cricket out there in front of those crowds in that environment is special but I'm sure South Africa will do a great job."

Moving the tournament back by a week will have an impact on England's players as they need to return to prepare for the first Test against the West Indies, but IPL organisers will attempt to accommodate the ECB.

The overriding reason that we opted for South Africa was because of the weather conditions
Lalit Modi

"It does affect our plans as far as the number of days that the ECB players will be able to participate," said Modi. "We're trying to see how best to schedule those matches and get them to play more and more matches."

Pietersen and Flintoff had both spoken publicly about their concerns over security in India, especially in light of the terrorist attacks in Lahore when Sri Lanka cricketers were the targets of fundamentalists.

Since then, Modi said he had no choice but to move the event because India's government could not guarantee safety and security resources, with national elections happening at the same time.

South Africa are also due to host elections during the tournament - on 22 April - but appear to have provided Modi with sufficient assurances over security.

England were thought to be the early favourites to stage the tournament in place of India, but it appears that the country's inclement weather has ultimately cost them.

"I would like to put on record my sincerest thanks to the England and Wales Cricket Board for their help and support," Modi told a news conference.

606: DEBATE
FromNY

"We were in negotiations but the overriding reason that we opted for South Africa was because of the weather conditions, which are a lot more favourable there than in England."

Ranjit Borthakur, the vice-chairman of the Rajasthan Royals, said: "We are disappointed the tournament is not being held in India, but if the choice is between no tournament and a tournament in another country, then we clearly prefer the latter.

"The atmosphere and the buzz the matches create in India cannot be replicated.

"Having said that, now that the tournament is in South Africa, we are happy that the tournament is happening and going forward."

There are other factors that render South Africa a more attractive option, including television timings - South Africa is closer to India in terms of time zones - while the cost of holding the tournament is reportedly cheaper in the African nation.

The TV rights issue in South Africa is also more straightforward, with Supersport holding the rights to the IPL as well as international cricket in the country.

That is not the case in England, where Sky hold the broadcast rights to all cricket played in England - but rival Setanta bought the UK rights to the IPL last year and showed the inaugural tournament.

BBC sports editor Mihir Bose also believes the South Africa government played its part, saying: "South Africa have clearly provided the Indians with the sort of guarantees they were after.

"The weather was a factor, but I also understand from talking to various people that the South African government came in in a very strong way. With a lot of spectators expected to move around, issues like visas are also crucial and all of that has played a part."

Forced To Marry Entrepreneur and TV presenter Saira Khan travels to her parent's country of origin, Pakistan, to reveal the shocking cases of forced m

Entrepreneur and TV presenter Saira Khan travels to her parent's country of origin, Pakistan, to reveal the shocking cases of forced marriages dealt with by the British High Commission's Assistance Unit.

Saira Khan
Forced To Marry
Monday, 1 December, 2008
1900 GMT on BBC Two

Forced To Marry, a This World documentary, has unique access as it follows the work of this groundbreaking team and unveils the moving and dramatic stories of British citizens who risk rejection, loneliness and sometimes their lives, to break out of unwanted marriages.

Often misunderstood as a religious tradition, forced marriage, as opposed to arranged marriage, is carried out against the victims' will, or under duress.

This film follows consular staff Albert David and Theepan Salvaratnam on a number of dramatic rescues in remote and rural Pakistan.

As the practice of forced marriage is still rife in certain regions, the team often walks into highly charged and potentially dangerous situations.

Acting on distressed phone calls or text messages, Albert and Theepan enlist the help of local police to track down the victim's location.

They then ask for time alone with the women in order to establish her situation, and to offer her safe passage back to Britain via Islamabad.

The film tells the dramatic stories of Tania and Rubina (not their real names) who approached the Assistance Unit for help.

Tania has been forced to marry a cousin she barely knows and she has taken the difficult decision to escape and return to the UK.

Rubina, who carries signs of physical abuse, is finding it hard to break free.

Tackling hundreds of cases every year, the Assistance Unit is considered one of the world's experts in fighting forced marriages - some of which lead to "honour killings".

Stigmatised and often ignored, the issue of forced marriage is still a dangerous problem for some British citizens and this documentary shows the dramatic steps the Foreign Office is taking to protect them abroad.

This World will be broadcast on Monday 1 December at 1900 GMT on BBC Two.

Producer/Director: Ruhi Hamid

Executive producers: Lucy Hetherington and Jo Roe

Tuesday, March 17, 2009

Madagascar leader defies troops


The BBC's Jonah Fisher at the presidential residence in central Antananarivo

Madagascar's President Marc Ravalomanana remains hunkered down in his palace, a day after pro-opposition soldiers seized his offices.

Opposition leader Andry Rajoelina is expected to enter the captured offices in central Antananarivo shortly.

Hundreds of supporters have formed a human shield at Mr Ravalomanana's palace a few miles away. He says he is ready to die with his guards.

The African Union has condemned the opposition's "attempted coup d'etat".

But speaking to the BBC, Mr Rajoelina denied that Monday's seizure of the residence in the centre of the capital amounted to a coup.

FROM THE BBC WORLD SERVICE

Cannot play media.You do not have the correct version of the flash player. Download the correct version


The opposition leader, who has declared himself president, said Mr Ravalomanana no longer had the right or the power to run the country.

The seven-week power struggle between the two men has spawned a military mutiny and violent protests that have left at least 100 people dead on the Indian Ocean island since January.

The BBC's Jonah Fisher in Antananarivo says Mr Ravalomanana must be really feeling the pressure, as it looks as though it may only be a matter of time until the troops march on his other residence.

But he adds any attempt to seize the Iavoloha palace, about 15km (nine miles) from the city centre, could be bloody if the presidential guard and the president's civilian supporters put up a fight.

CRISIS TIMELINE
Map of Antananarivo
Dec 2006: Marc Ravalomanana re-elected as president
31 Jan 2009: Opposition's Andry Rajoelina says he is in charge
3 Feb: Rajoelina sacked as mayor of Antananarivo; protests intensify
8 Feb: Security forces fire on opposition rally leaving 28 dead
11 March: Dissident troops oust army chief
15 March: Ravalomanana proposes to hold referendum
16 March: Army storms presidential office

On Monday, Mr Rajoelina rejected a proposal from the president for a referendum on whether he should complete his term.

The opposition leader instead called for the arrest of the president and won public backing from the self-declared head of the armed forces.

Explosions and gunfire erupted as pro-opposition troops in armoured cars smashed down the gates to Mr Ravalomanana's offices in the centre of Antananarivo.

The president was holed up at the Iavoloha palace at the time.

Our correspondent says people in the capital are trying to conduct their business as usual - but many are clearly in shock after Monday's events.

He says Mr Rajoelina has wrapped himself in the cloak of democracy, but he wants to replace an elected head of state without going to a ballot.

The opposition leader, a 34-year-old former disc jockey, says the president is a tyrant who misspends public money.

Mr Ravalomanana's supporters say his rival is a young troublemaker who has not offered any policy alternatives.

Mr Ravalomanana was re-elected for a second term in office in 2006 and his mandate is due to expire in 2011.

Under him, Madagascar's economy has opened up to foreign investment, particularly in the mining sector.

But 70% of the 20 million population still lives on less than $2 (£1.40) a day and correspondents say the opposition has tapped into popular frustration at the failure of this new wealth to trickle down.

Govt to end governor rule in Punjab soon: PM


ISLAMABAD ( 2009-03-17 14:07:07 ) :Prime Minister Yousuf Raza Gilani on Tuesday said the federal government is against governor rule in Punjab, and would lift it as soon as possible.

"I am against the governor rule [in Punjab]...will end it as soon as possible," the Prime Minister told mediapersons after attending a ceremony at a private school here.

Prime Minister Gilani said the government intended to take all political parties onboard in its effort for national reconciliation.

He said the government would implement the Charter of Democracy in its true letter and spirit, as signed by PPP leader Mohtarma Benazir Bhutto and PML-N's Nawaz Sharif.

The prime minister appreciated Nawaz Sharif for showing positive response to the policy of reconciliation, adding the government would file a review petition on the disqualification of Sharif brothers after the issuance by Supreme Court's detailed verdict.

About the prospects of coalition with PML-N in the federal government, Gilani said politics was a day to day affair and any such possibility could not be ruled out.

On the reinstatement of Chief Justice Iftikhar Chaudhry, the Prime Minister said the government amicably resolved the national issue of judiciary's independence in accordance with Mohtarma's vision and President Asif Ali Zardari's promise.

Gilani said notification on the reinstatement of deposed judges would be issued soon.

He declined the impression that any step was being taken to clip the powers of the Chief Justice, and said such negativism should be discouraged.

President signs summary of judges restoration


ISLAMABAD ( 2009-03-17 12:56:41 ) :President Asif Ali Zardari has signed the summary of the restoration of the deposed judges on Tuesday and sent back it to the prime minister.

Earlier, Prime Minister Yousuf Raza Gilani had sent the advice for reinstatement of deposed judges to President Zardari.

According to sources, the Law Ministry had sent the summary of judges restoration to the Prime Minister.

The notification for restoration of deposed judges including chief justice Iftikhar Muhammad Chaudhry will be issued by today, sources added.

Pakistan rape victim gets married


A Pakistani gang rape victim who won international acclaim as a campaigner for women's rights has married.

Mukhtar Mai was raped by four men in her village as a punishment after her 12-year-old brother was accused of adultery in 2002.

She ignored taboos about her ordeal and fought to have her attackers convicted.

Since then Mukhtar Mai has become a champion for women's rights in her country and an internationally- recognised figure.

Six men arrested and sentenced to death in connection with the gang rape are still in custody pending a retrial.

Ms Mai had said she was not sure she would ever marry, but on Sunday wed police constable Nasir Abbas Gabol in the Pakistani capital, Islamabad.

Since being raped she has also written a best-selling autobiography and opened a school and a chain of women's crisis centres in Pakistan.

Mukhtar Mai won widespread international support when she spoke out after being raped - allegedly on the order of a village council.

In 2005, she was honoured as Woman of the Year by Glamour magazine in a ceremony in Washington.

The award praised Ms Mai for "her incredible courage and optimism in the face of terrible violence".

Critics of Pakistan's judicial system and social systems say the Mukhtar Mai case is an example of appalling treatment often handed out to women, particularly in feudal, rural areas.

Her rape was allegedly ordered by a village council as a punishment for a misdemeanour blamed on her brother.

Obama 'outraged' at AIG bonuses



US President Barack Obama has expressed anger at $165m (£116m) bonuses pledged to executives of bailed-out insurer AIG, calling the payments "an outrage".

"It's hard to understand how derivative traders at AIG warranted any bonuses, much less $165m in extra pay," he said.

He has told Treasury Secretary Timothy Geithner to "pursue every single legal avenue" to block the bonuses.

White House spokesman Robert Gibbs later said AIG's next bailout payment could be altered to protect taxpayers.

He did not say how this could be achieved, but analysts say the government could reduce the payment - which is $30bn - by $165m, in order to force AIG to account for the bonuses in another way.

'Play by rules'

AIG announced the bonus payouts on Sunday.

In a speech which was intended to launch initiatives to help small businesses deal with the economic crisis, President Obama strongly criticised the company.

"All across the country, there are people who work hard and meet their responsibilities every day, without the benefit of government bailouts or multimillion-dollar bonuses," he said.

"And all they ask is that everyone, from Main Street to Wall Street to Washington, play by the same rules."

AIG sign
AIG insures financial institutions around the world

The $165m was payable to executives by Sunday and part of a larger total payout reportedly put at $450m.

New York Attorney General Andrew Cuomo now says he has issued legal papers demanding that AIG reveal the names of those receiving the bonuses - something which he says the firm has refused to do.

"When a company pays funds that the company effectively doesn't have, it's akin to a looting of a company," he said.

AIG has not yet commented on the legal move, but a spokeswoman said the firm was "in ongoing contact" with the attorney general.

'Outrageous'

AIG has received bailout payments from the US government totalling $180bn (£127bn) since coming close to collapse in 2008.

AIG: QUICK FACTS
30 million US policy holders
Operates in 130 countries
Provides insurance to 100,000 companies and other entities

AIG boss Ed Liddy - who was installed by the government after the company got into trouble - earlier said the bonuses had to be paid to honour contracts signed before the financial crisis hit.

But Mr Liddy said bonuses for this year had been revamped and cut by as much as 30%.

However, such concessions have done little to appease angry senators.

Senate Republican leader Mitch McConnell said: "Did they enter into these contracts knowing full well that, as a practical matter, the taxpayers of the United States were going to be reimbursing their employees?

"Particularly employees who got them into this mess in the first place? I think it's an outrage."

Democrat Elijah Cummings was equally incensed: "It's like, OK, you got to help me screw you. And by the way I'm going to take your money and I'm going to slap you with it."


Are you in America? Should AIG pay out bonuses? Are you an AIG executive? Send us your comments using the form below

In most cases a selection of your comments will be published, displaying your name and location unless you state otherwise in the box below.

Russia announces rearmament plan

Russian President Dmitry Medvedev has said Moscow will begin a comprehensive military rearmament from 2011.

"The primary task is to increase the combat readiness of our forces, first of all our strategic nuclear forces," he told top military officers.

Explaining the move, he cited concerns over Nato expansion near Russia's borders and international terrorism.

Last year, the Kremlin set out plans to increase spending on Russia's armed forces over the next two years.

Russia will spend nearly $140bn (£94.5bn) on buying arms up until 2011.

While this has been made easier while oil revenues were increasing in recent years, correspondents say, the new announcement is a surprise.

But analysts say the brief war in Georgia exposed problems with outdated equipment and practices within Russia's armed forces and led to calls for military modernisation.

Mr Medvedev says the move is necessary in response to the current military situation in the world, says the BBC's James Rodgers in Moscow.

Russia has long been angered by Nato's post-Cold War expansion and by the United States' plans to place elements of a missile defence system in parts of Eastern Europe," our correspondent adds.



Print Sponsor

Advertisement

News feeds| News feeds


Josef Fritzl arrives in court for the second day of his trial

The daughter and three of her seven children fathered by Mr Fritzl were kept captive in the cellar until the case came to light in April last year, when one of the children became seriously ill and was taken to hospital.

Mr Fritzl is accused of murdering one of the newborn twin boys his daughter gave birth to in 1996, having failed to arrange medical care for the ailing infant.

Some legal experts have said it may be hard to prove the murder charge but the charge of enslavement carries a maximum penalty of 20 years, and some of the other charges carry a sentence of up to 15 years.

'Normal behaviour'

Court spokesman Franz Cutka said the first day's proceedings had included "an interrogation of the accused", and the video recording by Mr Fritzl's daughter, about which he was then questioned.

FRITZL CHARGES AND PLEAS
Murder - not guilty plea
Enslavement - not guilty plea
Deprivation of liberty - guilty plea
Rape - partially guilty plea*
Incest - guilty plea
Coercion - guilty plea

*Understood to mean he is contesting the wording of the charges

But he stressed that due to the sensitivity of the trial, no details of the proceedings could be released.

In her opening statement, prosecutor Christiane Burkheiser said Mr Fritzl had shown "no sign of regret or any consciousness of wrongdoing".

She alleged that he had not spoken to his daughter for the first years of her captivity, descending to the cellar only to rape her before returning upstairs.

Mr Fritzl, said the prosecutor, treated his daughter like his own property, sometimes raping her in front of their children in the cellar.

The defendant himself, his voice almost inaudible, talked to the judge about his childhood, saying he had been beaten by his mother.

Asked if he had any friends, he simply replied "No".