News Furor: 11/22/07

Thursday, November 22, 2007

Peaceful defiance

KARACHI: As a symbol of what they called ‘peaceful defiance’, protesting journalists of Karachi presented fresh roses to police personnel posted outside the press club on Wednesday, a day after protesting media personnel had been baton-charged at the same place.

Earlier, they held a protest meeting as part of their campaign against the imposition of emergency and curbs on the media. The meeting, organised by the Karachi Union of Journalists, condemned Tuesday’s police action in which several journalists were wounded and detained for hours.

The meeting demanded that the emergency be lifted and Pemra ordinance be repealed forthwith, saying it was aimed at gagging the press.—Reporter

Bush swears by Musharraf’s commitment to democracy

WASHINGTON, Nov 21: US President George W. Bush has strongly backed his counterpart Pervez Musharraf, calling him a man who has done more for democracy in his country than any modern leader has.

“He has done more for democracy in Pakistan than any modern leader has,” Mr Bush told ABC television. “And one of the reasons you’re seeing the blowback that you’re getting in Pakistan is because of the reforms that President Musharraf has put in place.”

He disputed the notion that he had put too much faith in Gen Musharraf and appeared cautiously optimistic that the general would return Pakistan to the path to democracy.

Throughout the interview, Mr Bush appeared firm in his trust in Gen Musharraf, refusing to join in harsh criticism of the leader the interviewer offered. Instead, he tried to strike a hopeful note.

When the interviewer suggested that Mr Bush had put too much faith in Gen Musharraf, he recalled that the Pakistani president had joined the US-led war against terror soon after 9/11 and had been “a loyal ally” in fighting terrorists.

“He’s also advanced democracy in Pakistan. He has said he’s going to take off his uniform, he’s said there will be elections. Today he released prisoners, and so far I’ve found him to be a man of his word,” Mr Bush said.

Mr Bush said that if the elections were held under emergency, “it’ll be hard for those of us who have belief that he’s advanced Pakistan’s democracy to say that’s still the case.”

Court upholds Musharraf election

Gen Musharraf is under pressure to lift emergency rule

Pakistan's new Supreme Court has - as expected - dismissed the final legal challenge to the recent re-election of President Pervez Musharraf.

General Musharraf's opponents had argued that his election was illegal because he was still head of the army.

Most of the challenges were rejected earlier this week.

The move clears the way for General Musharraf to stand down as army chief, as promised, and be sworn in as a civilian leader.

He is widely believed to have declared a state of emergency earlier this month in order to purge the Supreme Court that he suspected was about to rule against his re-election, says the BBC's Barbara Plett in Islamabad.

Final challenge

"Dismissed," Chief Justice Abdul Hamid Dogar said in court after hearing the petition, reports Reuters news agency.

Gen Musharraf's top legal adviser, Sharifuddin Pirzada, told Reuters there was now no legal obstacle to his re-election.

"Now the court has to give us this in writing," the agency quoted him as saying.

The verdict was expected to go in Gen Musharraf's favour since he has appointed new judges to the bench who are considered more loyal.

They have already dismissed the main petitions.

President Musharraf has still not lifted emergency rule, and insists that elections, which are due to be held in January, can take place under the emergency decree.

But Western allies have insisted he return the country to civilian rule.

Pakistan has asked the Commonwealth, whose leaders are meeting in Uganda, to delay its decision on whether the country should be suspended. The decision was provisionally expected on Thursday.

Meanwhile, President Musharraf has also amended the constitution to prevent future legal challenges to his actions.

Bid battle looms for German banks

Postbank is Germany's largest retail bank

A takeover battle in the German banking sector could be looming after another lender indicated an interest in buying Deutsche Postbank.

Deutsche Bank is the latest to join the fray, after Commerzbank said earlier this year it would be interested in buying Germany's largest retail lender.

Although Deutsche Postbank is currently not for sale, its parent Deutsche Post is expected to sell it next year.

Deutsche Postbank is worth about 9bn euros ($13.3bn; £6.5bn).

With almost 15 million customers, Deutsche Post is expected to put it up for sale once the country's domestic postal market is deregulated next year.

"I will rule out absolutely nothing," Deutsche Bank chief executive Josef Ackermann told reporters, when asked if he might be interested in buying Postbank.

Deutsche Postbank's shares were up 2% in Wednesday trading.

Cost cuts help lift Gap's profits

Gap is continuing efforts to turnaround its fortunes

Clothing retailer Gap has reported a 26% rise in profits after cost-cutting, restructuring work and tighter stock control helped offset falling sales.

The US firm saw its profit for the three months to 30 September rise to $238m (£116m) from $189m for the same third quarter period last year.

Gap said same-store sales, which excludes new openings, fell 5%, the same decline seen a year earlier.

It recently pledged to do more to stop child labour at its Indian suppliers.

Gap made that statement last week after it emerged that one of its Indian suppliers had been employing children as young as 10.

Job cuts

The retailer, which has more than 3,100 stores worldwide, achieved overall third-quarter sales of $3.85bn, the same as last year.

The results were slightly better than market expectations.

Gap, whose new chief executive Glenn Murphy took over in July, is continuing its efforts to revive its fortunes.

The company has cut jobs and shut its Forth & Towne subsidiary to focus on its main stores and Old Navy outlets.

Mr Murphy said the firm faced a "tough economic environment" for the coming festive sales season.

T-Mobile to open up iPhone sales

The iPhone was launched in Germany in early November

iPhone users are still tied to just one network in the US and UK

T-Mobile is to start allowing German customers to buy Apple's iPhone without a contract to its network, as it moves to comply with a court injunction.

Its announcement comes after rival Vodafone went to a German court to challenge T-Mobile's exclusive tie-up with the iPhone in Germany.

T-Mobile will now sell people just the handset for 999 euros ($1,477; £719).

This is a significant premium over the 399-euro price for those who also take out a two-year T-Mobile contract.

Similar tie-ups

Apple has similar exclusive iPhone arrangements with O2 in the UK and AT&T in the US.

T-Mobile added that customers could also now have the SIM lock on their iPhone removed, including those who have already purchased a handset.

This would allow them to switch to another phone network.

T-Mobile said in its statement that it would abide by the conditions "until the legal situation is resolved".

Talks fail to end French strike

Commuters at a Paris station - 21/11/2007

French commuters have had more than a week of travel disruption

French commuters are facing a ninth day of travel chaos as a country-wide strike by transport workers continues.

National rail operator SNCF said more trains would be running, however, as support for the industrial action was dwindling among rail workers.

Union leaders said some progress had been made in talks with government and management officials on Wednesday.

But as talks began for the first time, arsonists sabotaged tracks and signal boxes on the high speed train network.

Signal boxes and electric cables running under railway tracks in several locations on the TGV network were set on fire early on Wednesday, causing even more delays to services already hard-hit by more than a week of strikes.

President Nicolas Sarkozy called for those who caused the damage to be punished with "extreme severity".

Strike vote

The overnight vandalism was carried out as managers from SNCF and the Paris public transport operator, RATP, held lengthy meetings with union and government representatives in the capital to try to reach a compromise.

There was no resolution to the crisis, but Didier Le Reste, head of the powerful CGT union's railway union division, said there had been a number of advances.

This is ludicrous! They are all a bunch of lazy people, and I am personally both enraged and ashamed at their behaviour!

Sophie Pradere
Paris resident

The strike was set to continue, however, unless transport workers voted on Thursday to call it off.

"I trust railway workers to take decisions that are appropriate," Mr Le Reste said.

The transport workers are striking over a government proposal to reform the "special" pension system that allows some 500,000 transport and utility workers to retire early.

The government says it will not back down over the reforms, but that it could offer incentives of salary rises and a top-up scheme for pensions.

Mr Le Reste has predicted that the negotiations could last up to a month.

President Sarkozy has urged protesters to go back to work, saying the strike had "already cost users - and strikers - so dear".

He has repeatedly said the strikes will not push his programme of reforms off course.

There has already been a gradual drift back to work with nearly 80% of SNCF workers on the job on Wednesday, the company said.

Despite the vandalism to the TGV system, 400 of 700 of its regularly scheduled fast trains were running on Wednesday, SNCF said.

Some local union committees have already voted to end the strike.

Oil in retreat from record high

Oil prices are still close to $100 a barrel

Oil prices have retreated from record highs on news of rising stocks at a key US hub, but remain above $97 a barrel.

On Wednesday, oil prices came close to breaching the $100-a-barrel mark, boosted by a weak dollar, tight supplies and rising winter demand.

US light, sweet crude hit a record of $99.29 a barrel on Wednesday. In Asian trade on Thursday it fell to $97.54.

Brent crude, which hit an all-time high of $96.53 on Wednesday, was trading up 34 cents at $95.18 a barrel.

Oil prices have climbed by about 45% since August.

News late on Wednesday that crude stocks in Cushing, Oklahoma, had risen 1.2 million barrels to 14.6 million barrels depressed prices, despite an overall drop in crude stocks.

"The inventory increase at this key physical delivery point of the NYMEX crude oil contract obviously caught the market somewhat flatfooted, leading to the price pullback," First Energy Capital said in its daily market statement.

Figures released on Wednesday indicating that US consumer confidence in November hit its lowest level in two years also weighed on oil prices, as they hinted at weaker demand for oil.

Earlier in the week oil prices had risen after the leaders of producers' cartel Opec decided not to increase production following their meeting at the weekend.

Adjusting for inflation, US light crude hit a record peak of $101.70 a barrel in 1980, against a backdrop of the war between Iraq and Iran.

World markets jittery on US woes

Markets remain jittery

Asian share prices remained jittery on Thursday, following a plunge in US stocks overnight, amid continued fears for the US economy.

The Nikkei ended up 0.3% at 14,888.77 points - having earlier touched a 16-month low - as the yen weakened slightly against the dollar.

On Wall Street the Dow Jones index slumped by more than 200 points.

There will be no fresh direction from Wall Street on Thursday, with all US markets closed for Thanksgiving.

The falls came a day after the US Federal Reserve cut its growth forecast - stoking fears of a slowdown.

The central bank now sees the US economy growing by between 1.8% and 2.5% in 2008, compared to its previous forecast of between 2.5% to 2.75%.

The dollar, weakened by the changed growth forecast, ticked slightly higher on Thursday, with one dollar now buying 108.855 yen.

"I think there is a brief relief among investors," said Yoshinori Nagano, chief strategist at Daiwa Asset Management.

Financial jitters

In the US the worries saw the Dow Jones index plummeting 211.1 points or 1.6% to 12,799.0 while the Nasdaq fell 1.3% or 34.7 points to 2,562.2.

"We just can't seem to break free of the financial concerns that are out there," said Bucky Hellwig, of Alabama-based Morgan Asset Management

"The unwinding of the real estate and the mortgage market continues to weigh on investor concerns."

Falling share prices boosted demand for government bonds, seen as a safe haven in troubled times.

Dollar pressure

The continuing dollar and share weakness has been sparked by the US mortgage debt crisis, which has led to a growing number of American banks revealing multi-million dollar losses.

US Treasury Secretary Henry Paulson told the Wall Street Journal that the number of potential home loan defaults "will be significantly bigger" in 2008 than in 2007.

Some analysts now expect the Federal Reserve to cut US interest rates further when it meets in December in an effort to ease problems in both the housing and credit markets.

As worries over the economy continued, investors turned to the safety of government securities, pushing the yield on the Treasury's 10-year note below 4% for the first time since 2005.

Oz Munchkins get Hollywood star

The Munchkins only made $125 a week while filming

Actors who played the Munchkins in The Wizard of Oz have been honoured with a star on the Hollywood Walk of Fame in Los Angeles.

Seven of the surviving stars, who played the inhabitants of Munchkinland, walked up a yellow carpet resembling the film's yellow brick road.

Former Munchkin Mickey Carroll, 88, said: "The movie is great because we all grew up with it... It never dies."

The 1939 film, starring Judy Garland, won two Oscars for its soundtrack.

"I'm as proud today as my mother would have been," said Garland's son, Joey Luft, who also attended the ceremony.

Seven of the nine surviving Munchkins, thought to be the only living actors from the musical movie classic, arrived at the ceremony in a horse-drawn carriage.

The Munchkins secured their place in Hollywood history and in the hearts of movie fans everywhere

George Lucas

Dressed in green and blue costumes, the stars sang to the crowds as they pulled up outside Grauman's Chinese Theatre - where the film premiered 68 years ago.

"It feels great to be here," said Jerry Maren, 88, waving a lollipop to mark his role in the movie as a member of the Lollipop Guild.

"We love you, you have touched our hearts," added Carroll.

A total of 124 people and children were recruited to play Munchkins in The Wizard of Oz.

Tuesday's honour was the result of a campaign led by a Chicago cinema owner who was amazed to learn the stars had not been recognised on the Walk of Fame.

Directors Steven Spielberg and George Lucas were among those who added their support to the campaign.

"With their joyous send-off for Dorothy as she began her journey down the Yellow Brick Road, the Munchkins secured their place in Hollywood history and in the hearts of movie fans everywhere," said Lucas in a letter.

Former Stones publicist dies, 73

Wasserman represented the Rolling Stones in the US

US celebrity publicist Paul Wasserman, whose clients included the Rolling Stones, The Who, Bob Dylan and Neil Diamond, has died aged 73.

The music industry giant - known as "Wasso" - died of respiratory failure, publicist and friend Joan Myers said.

During his four-decade career, he worked with seminal acts such as Paul Simon, Tom Petty and James Taylor.

"He was the most important rock publicist in town," music critic Robert Hilburn told the Los Angeles Times.

"He was a brilliant media strategist who helped usher rock and roll into an era of new respectability."

"Rock and roll was this rowdy kind of thing, and he was somehow able to make the mainstream press more interested," he said.

Wasserman also branched out into film - representing actors like Dennis Hopper and Jack Nicholson, and publicising films such as Star Wars and Annie Hall.

But his career ended in 2000, when he was jailed for swindling some of his closest non-celebrity friends by falsely claiming to be selling shares in investment schemes that he said were backed by stars like U2.

Wasserman pleaded guilty to grand theft and was sentenced to six months in jail, placed on five years' probation and ordered to pay nearly $87,000 (£42,000) in restitution.

Rhys Meyers mourns mother's death

It is thought the actor was close to his mother

Actor Jonathan Rhys Meyers is in mourning for his mother, who has died days after he was arrested in Ireland.

Geraldine Meyers-O'Keeffe, 50, died in hospital in Cork on Tuesday after suffering from a short illness.

Her son, recently seen in BBC Two's The Tudors, was arrested in Dublin airport earlier this week after allegedly being refused entry to a flight.

The 30-year-old was charged with public drunkenness and breach of the peace ordered to appear in court in December.

Rehab

Rhys Meyers, who is said to have been close to his mother, had been in Dublin promoting his latest film, August Rush.

The movie, which opens in the UK on Friday, also stars Robin Williams.

In April, the Irish actor was admitted to a rehab clinic in California.

Speaking to news agency The Associated Press last year, he said he found it hard to socialise in Ireland because of its hard-drinking pub culture.

"I gave up drinking a few years ago, and this is the first time I've spent time in my country trying not to drink," he said.

The actor, who has also starred in Woody Allen's Match Point and Mission Impossible III, vowed he would "never drink again" but admitted it was "hard to avoid".

Dumped oil painting fetches $1m

Tres Personajes, (Three People) by Mexican artist Rufino Tamayo

Despite its adventures, the painting is in excellent condition

A painting stolen 20 years ago then found lying in a pile of rubbish on a New York City street has sold at auction for just over $1m (£484,000).

The 1970 painting Tres Personajes (Three People) by Mexican artist Rufino Tamayo was taken from a warehouse where the owners had placed it while moving.

It was found by Elizabeth Gibson as she took her morning walk four years ago on Manhattan's Upper West Side.

After discovering the painting's value, she returned it to its original owner.

It sold for $1,049,000 (£507,900) to a telephone bidder at Sotheby's New York auction house.

Sotheby's describes the painting as an important work from Rufino Tamayo's mature period.

Website clue

Elizabeth Gibson said she was drawn to the painting when she spotted it on the street.

"I know nothing of modern art but it didn't seem right for any piece of art to be discarded like that," she said.

It hung on a wall in her home for several months before a friend suggested it might be valuable.

An internet search revealed that the missing painting had been the subject of an appeal for information on the Antiques Roadshow TV programme.

Elizabeth Gibson found the work on her way to buy coffee

Ms Gibson has already received a $15,000 reward the couple put up when it was stolen, plus an undisclosed percentage of the sale of the painting.

It is still not known how the painting ended up on the street.

The owners - a couple from Houston whose names have not been disclosed - bought the oil on canvas, with marble dust and sand worked into the paint, in 1977 at Sotheby's.

August Uribe, Sotheby's senior vice-president of impressionist and modern art, said that the husband had paid $55,000 for it as a gift for his wife. The husband later died.

At the time of the theft in 1987, the couple alerted local and federal authorities.

Information on the painting was posted on the databases of the International Foundation for Art Research, and the Art Loss Register.

The FBI is still investigating the theft.

Striking writers take to streets

Alicia Keys performing at Tuesday's rally

Singer Alicia Keys kicked off the rally with a live performance

Striking writers have staged a rally in central Hollywood ahead of next week's resumption of contract talks between their union and the major studios.

Grey's Anatomy actress Sandra Oh was at the march, which Alicia Keys began with a performance of her latest single.

Organisers said the rally drew between 3,000 and 4,000 marchers, though police put the number closer to 1,500.

The writers strike began on 5 November, prompted by a disagreement over royalty payments for DVD and internet sales.

The rally, held on the 16th day of industrial action, was the Writers Guild of America's last display of solidarity ahead of the US Thanksgiving holiday.

Talks between the WGA and the Alliance of Motion Picture and Television Producers are scheduled to resume on 26 November.

Non-affiliated

The effects of the strike have been felt across the industry, with daily talk shows cancelled and shooting on top-rated dramas curtailed due to a lack of scripts.

Several big-budget film productions - among them Angels and Demons, a prequel to The Da Vinci Code - have also been put back due to strike-related script delays.

UK writers who are not affiliated with the WGA have been approached to fill the breach, according to the Daily Telegraph.

However, the Writers Guild of Great Britain has advised its members not to take work that would have been taken by striking American writers.

About 500 television and radio writers working for CBS News also voted to strike on Monday following their own contract dispute with the US TV network.

Ne-Yo dropped from R Kelly tour

R Kelly (left) and Ne-Yo began their tour on 14 November

R&B singer Ne-Yo has been dropped from R Kelly's US tour, just a week after the pair hit the road.

A spokesperson for Kelly told Billboard magazine that Ne-Yo's departure was down to contractual issues.

But Ne-Yo has called the claims "false" and says he was dropped because fans preferred his performance.

"I believe it was because the first few reviews of the show, people were talking more about my set than his," he told the BET cable network.

An official statement released by his record label, Def Jam, did not elaborate on the claims.

"I am disappointed that I won't be able to perform for my fans," said Ne-Yo, who had a UK number one with So Sick last year.

"I love being on stage in front of fans because of the immediate feedback you get. You know right away if they are feeling you; and they were really feeling our show."

'Terrific talent'

Kelly's spokesperson insisted to Billboard that there was no animosity between the two singers.

"Ne-Yo is a terrific talent," he said, "and R Kelly is certainly confident enough in his own abilities to be happy to share the stage".

"The more talented, the better. We're sorry it had to end this way."

But it is not the first time R Kelly has had trouble with fellow performers on the road.

In 2004, he sued rapper Jay-Z for $75m (£36m) after being kicked off the duo's joint US tour.

The star, whose hits include Trapped In The Closet and I Believe I Can Fly, said he was forced to abandon concerts by Jay-Z's "spite and jealousy".

Pakistan struggle early in Delhi

FIRST TEST MATCH, New Delhi (day one, lunch): Pakistan 74-3 v India

Zaheer Khan took two early wickets for India on the first morning

Pakistan lost three early wickets after electing to bat on the first morning of the first Test against India in New Delhi, reaching 74-3 at lunch.

Pace bowler Zaheer Khan removed Salman Butt and Younus Khan early on, before new India skipper Anil Kumble bowled Yasir Hameed for 29.

Pakistan paceman Umar Gul was ruled out with a back injury, so left-arm seamer Sohail Tanvir makes his Test debut.

India spinner Harbhajan Singh returned after a year out of the Test side.

Pakistan have struggled to find a consistent opening partnership in recent months, and Butt had made just one before he was bowled by an inswinger from left-armer Zaheer.

Younus followed Butt back to the pavilion when he was caught at fine leg by Munaf Patel as Zaheer claimed his second wicket, recording impressive figures of 2-25 from his first eight overs.

Pakistan were then in trouble at 59-3 when Butt's opening partner Yasir Hameed became Kumble's first victim as India's Test captain.

INXS mark Hutchence anniversary

Michael Hutchence's death shocked the world 10 years ago

Australian group INXS has commemorated the 10th anniversary of singer Michael Hutchence's death on its website.

"Michael will always be remembered as a young, vibrant, gifted and passionate person," wrote drummer John Farris.

His brother Andrew, also in the band, said he missed Hutchence's "sense of humour, intelligence and cheeky smile".

Hutchence was found dead on 22 November 1997 in a Sydney hotel. A coroner found the 37-year-old performer had died from suffocation caused by hanging.

After playing with a number of guest singers, INXS eventually recruited a replacement front man, JD Fortune, through a reality TV talent search.

"Michael will live on through his brilliant melodies and lyrics," said John Farriss.

'Open-minded'

"I feel proud that INXS can continue to play the music he helped create."

In a shorter message, bassist Garry Beers thanked fans for their "thoughts for Michael" and encouraged them to make a charitable donation in his memory.

JD Fortune (far right) became the lead singer of INXS in 2005

"I will always remember him as a great friend who always made an effort to help others," he wrote.

"To his fans he will always be a legend," agreed keyboardist Andrew Farriss.

"But he was also an open-minded, stylish and compassionate man who took his friendships seriously."

Formed in 1977, INXS enjoyed huge success in the 1980s and 1990s with a string of hit singles and albums.

Switch, the band's first record with Canadian singer Fortune, was released in 2006.

Euro 2008 qualifying

England failed to qualify for Euro 2008 after losing a sensational game against Croatia at Wembley.

England went 2-0 down when Scott Carson, in for Paul Robinson, fumbled Nico Kranjcar's shot into the net and then Ivica Olic slipped in a second.

Frank Lampard pulled one back from the spot after Jermain Defoe was fouled, before David Beckham, winning a 99th cap, set up Peter Crouch to level it.

But Mladen Petric fired in from 25 yards to break England's hearts.

The result will surely cost Steve McClaren his job as England manager and after such an abysmal display, he can have few complaints.

He gambled his position and England's participation on two huge selections and dropping Robinson and Beckham proved catastrophic.

Carson's performance will live long in the memory for all the wrong reasons and it may take the 22-year-old some time to recover.

When he stepped out on to the turf to warm-up and saw heavy rain making the pitch increasingly treacherous, he could have been forgiven for wishing Robinson - who was not even on the bench - had not been so unceremoniously dumped.

With eight minutes gone, he must have wanted part of the rain-sodden pitch to open up and swallow him whole.

A tearful David Beckham applauds the crowd at the end of the game

Kranjcar found space 30 yards out and let fly with a dipping right-foot shot that bounced just in front of the keeper and Carson could only parry the ball into the roof of the net.

The stadium fell silent - and six minutes later, England's world was on the brink of collapse.

Eduardo drove at the heart of the England defence and played a cute pass into the area for Olic, the Hamburg striker coolly dribbling round a shell-shocked Carson and rolling into an empty net.

England embarrassingly appealed for offside, but Wayne Bridge and, ludicrously, Shaun Wright-Phillips - who should not have been that far back - were both clearly playing him on.

McClaren's 4-3-3 formation at the start had turned into a 4-5-1 as Crouch was left painfully isolated in attack and his flick-ons were easily dealt with by the Croatians.

The visitors could have been more than 2-0 up by the interval - Carson patting the ball down after a shot from Luka Modric only for the ball to luckily skid away, forcing Kranjcar too wide to shoot.

Booed and jeered off the pitch, McClaren had to act and he brought on Defoe and Beckham, with Gareth Barry and Wright-Phillips making way.

It barely made any difference, before England were handed a lifeline in the shape of a penalty by the eagle-eyed assistant referee, who spotted Josip Simunic tugging back Defoe.

The quiet Lampard, with almost his first kick of the game, clinically dispatched the spot-kick to breathe new life into England's campaign.

Mladen Petric celebrates his winner for Croatia

Petric's winner at Wembley dumped England out of Euro 2008

England seemed keen to gift Croatia another goal as first Bridge cleared on to the top of his own crossbar and then Carson repaired some of the damage by brilliantly saving Olic's point-blank header.

If the script had been written for Beckham to save his country once again, the former captain seemed keen to follow it.

The LA Galaxy midfielder sent over an inch-perfect cross from the right that Crouch expertly chested down and smashed into the bottom corner from seven yards.

Wembley erupted, but there was more drama to come on a remarkable night at the new stadium.

Croatia sent on Petric and with 13 minutes left, he arrowed a fizzing left-foot shot into the corner of Carson's net from 25 yards.

It was what Croatia deserved for a display full of enterprise and heart - and what England deserved for one of their most inept displays in living memory.

The result, coupled with Russia's slender 1-0 win over Andorra, means England will not be going to next summer's tournament in Austria and Switzerland.

England: Carson, Richards, Campbell, Lescott, Bridge, Wright-Phillips (Beckham 46), Gerrard, Barry (Defoe 46), Lampard, Joe Cole (Bent 80), Crouch.
Subs Not Used: James, Ashley Cole, Brown, Hargreaves.

Goals: Lampard 56 pen, Crouch 65.

Croatia: Pletikosa, Corluka, Simic, Robert Kovac, Simunic, Srna, Modric, Nico Kovac, Kranjcar (Pranjic 75), Olic (Rakitic 84), Eduardo (Petric 69).
Subs Not Used: Runje, Babic, Knezevic, Leko.

Booked: Robert Kovac, Eduardo.

Goals: Kranjcar 8, Olic 14, Petric 77.

Att: 88,091.

Ref: Peter Frojdfeldt (Sweden).

PM Howard condemns fake leaflets

A John Howard supporter holds a picture of the prime minister on 21 November 2007

Mr Howard said action was being taken against those responsible

The Australian leader has condemned party members' use of fake leaflets implying Labor backed Muslim bombers, two days before nationwide polls.

PM John Howard, who is trailing Labor rival Kevin Rudd, said the Liberal Party had not authorised the leaflets.

Distributed in a key Sydney seat, they purported to be from an Islamic group which thanked Labor for its sympathy towards the Bali nightclub attackers.

Those involved faced expulsion from the Liberal Party, officials said.

Both party leaders have been campaigning hard ahead of Saturday's election. The prime minister is seeking a fifth term in office but polls indicate Mr Rudd is maintaining a sizeable lead.

The BBC's Nick Bryant, in Sydney, says that this kind of scandal is just about the last thing Mr Howard's beleaguered party needs.

'Unjustly sentenced'

On Wednesday, Liberal Party members were caught distributing leaflets purporting to be from an Islamist group in the key Sydney marginal of Lindsay.

It was not authorised by the Liberal Party, it is no part of our campaign

PM John Howard

In the leaflet, which carries the Labor Party logo, a fake organisation - the Islamic Australia Federation - applauds Labor for supporting Islamic extremists.

It refers to the men imprisoned for the 2002 nightclub bomb attacks in Bali, which left more than 200 people dead.

"We gratefully acknowledge Labor's support to forgive our Muslim brothers who have been unjustly sentenced to death for the Bali bombings," it said.

Labor supported the building of new mosques, the leaflet added, thanking the party for backing the entry of controversial cleric Sheikh Taj el-Din al-Hilali - who likened scantily-clad women to uncovered meat.

'Unfair and dishonest'

Mr Howard said that this type of material should never have been distributed.

"It was not authorised by the Liberal Party, it is no part of our campaign, it was wrong and unfair and dishonest for any pamphlet to be distributed suggesting that the Labor Party was sympathetic to the Bali bombers," he said.

Mr Rudd has urged the Liberal Party to clarify who knew about the leaflets.

"This says everything about the desperate and desperation politics on the part of the Liberal Party on the eve of the election," he told Australian radio.

The issue has been referred to the Australian Electoral Commission and Labor has asked it to investigate whether the group acted illegally by appealing to anti-Muslim sentiment.

President of the Australian Federation of Islamic Councils Ikebal Patel told ABC radio that while election campaigning to date had been "fairly good" on the issue of migration, the use of the flyers was "quite despicable".

Two unidentified members of the Liberal Party face disciplinary action and volunteers who distributed the leaflets have been removed from campaign teams.

Colombia halts Chavez mediation

Hugo Chavez has been pursuing mediation for months

Colombia has ended the involvement of Venezuelan President Hugo Chavez in attempts to negotiate a prisoner swap with left-wing Colombian rebels.

The decision was announced two days after Colombia set Mr Chavez a deadline of 31 December to reach a deal.

It followed a direct telephone call from Mr Chavez to the head of Colombia's army, a spokesman for Colombian President Alvaro Uribe said.

Mr Uribe had requested that Mr Chavez not speak to Colombia's generals.

Efforts 'terminated'

Mr Chavez has met leaders of the Farc rebel group, which holds dozens of hostages in the Colombian jungle.

He had been invited along with Colombian opposition Senator Piedad Cordoba to mediate in the hostage crisis.

But the office of Colombian President Alvaro Uribe said his facilitation efforts were now "terminated".

It is not clear why Mr Uribe did not want Mr Chavez to speak directly to Colombian military chiefs.

The Revolutionary Armed Forces of Colombia, or Farc, wants to exchange about 50 hostages it is holding in exchange for 500 prisoners in government hands.

The Farc hostages include three US contractors and French-Colombian politician Ingrid Betancourt.