2010-06-30 BBC
BBC News with Marian Marshall
The man chosen by President Obama to take charge of the American military effort in Afghanistan, General David Petraeus, has warned of an escalation of violence in the coming months. He told his Senate confirmation hearing that the international coalition in Afghanistan was engaged in a contest of wills with the Taliban. Asked about the likelihood of a reconciliation between the Afghan government and the Taliban leaders, General Petraeus was cautiously optimistic.
"Whether that is possible, such an agreement, I think, is going to depend on a number of factors that will play out over the course of this summer, including creating a sense among the Taliban that they are going to get hammered in the field and perhaps should look at some options. Now we've already seen cases where lower and mid-level Taliban leaders have indeed sought to reintegrate."
Shares in European banks have fallen sharply ahead of the withdrawal of a credit facility worth more than 500 billion dollars by the European Central Bank. Other shares also fell on markets across Europe and in the United States. Mark Gregory has more.
European share indices fell around 3%, and the euro slid against other currencies. Traders are worried that Europe's debt problems are about to get worse. The European Central Bank is about to end a programme of support for banks introduced a year ago, which means financial institutions will have to raise more of their own funds, leading to fears about their solvency. Markets are also braced for disappointing news on business confidence in Japan and a poor set of jobs data in the US later this week.
Both Russia and the United States say they don't want the improvement in their relations spoiled by Washington's announcement that it's uncovered a long-established Russian spy ring. Ten suspects were arrested in the US on Sunday, and the 11th was detained today in Cyprus. David Willis reports from Washington.
The arrests come just as the American and Russian presidents had pressed the reset button on relations between the two countries after years of mistrust stretching back to the Cold War. The two men are said to have bonded over burgers after talks last Thursday at the White House. Briefing reporters, President Obama's spokesman Robert Gibbs said the president was aware of the spy investigation before he met President Medvedev but chose not to raise the issue during their talks.
Mexico's main opposition party is trying to find a new candidate to run in elections for governor of Tamaulipas after gunmen killed its previous candidate on Monday. Officials said the election in the northeastern state would go ahead as planned on Sunday despite the murder of Rodolfo Torre Cantu. Mexican President Felipe Calderon blamed drug gangs for the attack. He appealed for unity in the fight against drug cartels which he said were threatening to destroy Mexico's democratic institutions.
World News from the BBC
Officials in India say at least 26 federal paramilitary troops have been killed in an attack by Maoist rebels, one of the biggest launched in recent months. They say the troops were ambushed during a routine patrol in a densely forested area of Chhattisgarh state in central India.
The BBC has learned that the British government is expected to launch an inquiry into allegations that Britain's security services were complicit in the torture of terrorist suspects detained overseas. It's thought the inquiry could be led by a judge with the power to award compensation to victims if it's found that they were tortured with the knowledge of British intelligence officials. Rob Watson reports.
The coalition government is anxious to draw a line on the allegations that Britain's intelligence services may have colluded in the torture of terrorism suspects. A number of cases currently being looked at by the courts and the police have involved allegations that Britain's security services knew suspects were being mistreated by foreign intelligence agencies. The previous government and the security services themselves have always strenuously denied either engaging in torture or encouraging others to do so on Britain's behalf.
President Obama has met King Abdullah of Saudi Arabia at the White House to discuss the need for pressing ahead with the Middle East peace process. The two leaders briefly addressed reporters in the Oval Office after their private meeting and lunch. President Obama said their discussions covered Afghanistan and Pakistan, efforts to combat extremism and Iran's nuclear programme.
At the football World Cup in South Africa, Spain have beaten Portugal one-nil. They go through to the quarter-finals where they will meet Paraguay who earlier beat Japan in the first penalty shootout of this year's tournament. The score after extra time was nil-nil, and Paraguay scored all five of their penalties. One Japanese effort missed when it hit the crossbar.
BBC News