US unveils $250bn banking rescue

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President Bush on US government plans to buy shares in banks

The US government has announced a $250bn (£143bn) plan to purchase stakes in a wide variety of banks in an effort to restore confidence in the sector.

President George W Bush said the move would help to return stability to the US banking sector and ultimately help preserve free markets.

US federal authorities will also temporarily insure most new debt issued by US banks.

The moves echo similar steps taken by the UK and other European countries.

"This is an essential short-term measure to ensure the viability of America's banking system," Mr Bush said.

"This is not intended to take over the free market, but to preserve it."

Mr Bush also said that the Federal Reserve would finalise work on a new programme that would make it the buyer of last resort for companies' short-term debt, known as commercial paper.

Furthermore, government deposit insurance is being expanded to cover accounts used by small businesses.

'Objectionable'

The money will come from the $700bn bail-out package approved by US lawmakers earlier this month.

The US plan - effectively part-nationalisation - comes after the bosses of the country's largest banks were summoned to a special meeting at the US Treasury on Monday.

Treasury Secretary Henry Paulson said that the lack of confidence in the financial system was a threat to the US economy.

He said that taking equity stakes in banks "was objectionable to most Americans, including myself".

"We regret taking these actions," Mr Paulson said.

"But we must do this to restore confidence in the financial system."

Mr Paulson said the government would buy stakes in a "wide variety" of banks and thrifts - financial institutions similar to building societies in the UK.

Nine banks, which Mr Paulson described as "healthy institutions", have so far signed up to the deal.

Federal Reserve chairman Ben Bernanke said that the US strategy would evolve and adapt to new developments:

"We will not stand down until we have achieved our goals of repairing and reforming our financial system," he said.

Share surges

The US announcement - and its anticipation earlier in the day - has had a major impact on global shares:

• Wall Street's main Dow Jones index opens up 376 points or 4%. However it subsequently falls back, closing down 76.62 points, or 0.82%, at 9,310.99 amid profit-taking
• The UK's FTSE 100 closes up 137 points or 3.3% at 4,394
• France's Cac 40 ended up 97 points or 2.75% to 3,629, while Germany's Dax adds 137 points or 2.7% to 5,199
• Japan's main Nikkei index ended up 1,171 points, or 14%, at 9,448, the biggest one-day rise in its history

Restrictions

The US government said it would buy preference shares in the banks.

Preference shares pay a fixed rate of interest instead of a dividend, which has to be paid before other shareholders receive anything, but they do not carry voting rights.

Banks that receive the cash injections will be subject to restrictions on executive pay.

US taxpayers may even end up making a profit from the shares if the rescue packages work and the banks recover, but that is not guaranteed.

European lead

The US move comes a day after the UK said it would inject up to £37bn of taxpayers cash into British banks Royal Bank of Scotland, Lloyds TSB and HBOS.

And European governments that share the euro are putting aside more than 1 trillion euros to protect banks through guarantees and other emergency measures.

The bulk of the money will be used to guarantee lending between banks.

The cash will also be used to take stakes in ailing banks.

Software can hold drivers' cell-phone calls

When David Teater's 12-year-old son, Joe, was killed in 2004 by a driver who was talking on a cell phone, he tried to cut back on his own habit of driving and talking. It turned out to be very difficult.

New software can detect whether a cell phone is moving at car speeds and hold calls until the drive is over.

"You have to remember to turn the phone off ... which you never remember to do. Or you have to ignore a ringing phone, which is incredibly hard," Teater said. "We've been conditioned our entire lives to answer ringing phones."

Teater became an advocate for curbing what he calls "driving while distracted," and now, he's part of a company with a technology that can help.

Aegis Mobility, a Canadian software company, announced Monday that it has developed software called DriveAssistT that will detect whether a cell phone is moving at car speeds. When that happens, the software will alert the cellular network, telling it to hold calls and text messages until the drive is over.

The software doesn't completely block incoming calls. Callers will hear a message saying the person they're calling appears to be driving. They can hit a button to leave an emergency voice mail, which is put through immediately.

Several states, including New York and California, have introduced laws against talking on a cell phone while driving, but they still allow the use of hands-free devices like Bluetooth headsets. However, studies have shown that hands-free devices may not help. It appears that it is the distraction of dialing or talking that is dangerous, rather than the act of taking a hand off the wheel.

A study by the National Highway Traffic Safety Administration in 2006 found that dialing or talking on the phone was the cause in 7 percent of crashes and near-crashes. For the study, drivers had onboard "black boxes" that recorded their actions.

Last year, 41,059 people died in traffic accidents.

Aegis' software will work on phones with Windows Mobile software, popular for "smart" phones, or Symbian software, used in phones from Nokia and Sony Ericsson. It uses the phone's Global Positioning System chip to detect motion, aided by the cell-tower signal. If the phone has a Wi-Fi antenna, that can be used as well, said Dave Hattey, Aegis' CEO.

To work, the software has to be supported by the cellular carrier. Aegis has no deals in place yet, but is in discussions with the big U.S. networks, said Teater, who is a vice president at Aegis. The company hopes to be able to announce early next year that the software is available through a carrier, probably for $10 to $20 per month for a family.

The software can be managed remotely through a Web site. For instance, parents will get alerts if their kids override the motion-sensing feature to indicate that they're riding in car rather than driving. A corporation that buys the software for their employees can do the same.

Unusually for the world of cell phone software, Aegis is bringing out DriveAssistT in partnership with an insurance company. Nationwide Mutual Insurance Co. said it plans to offer a discount of 3 percent to 10 percent on family policies for people who use DriveAssistT

Parkinson's linked to vitamin D

Scientists are testing whether vitamin D supplements can ease symptoms of Parkinson's disease.

A US team found 55% of Parkinson's patients had insufficient levels of vitamin D, compared to 36% of healthy elderly people.

However, the Emory University researchers do not yet know if the vitamin deficiency is a cause or the result of having Parkinson's.

The study appears in the journal Archives of Neurology.

Parkinson's disease affects nerve cells in several parts of the brain, particularly those that use the chemical messenger dopamine to control movement.

The most common symptoms are tremor, stiffness and slowness of movement. These can be treated with oral replacement of dopamine.

Previous studies have shown that the part of the brain affected most by Parkinson's, the substantia nigra, has high levels of the vitamin D receptor, which suggests vitamin D may be important for normal functions of these cells.

Sunlight

Vitamin D is found in the diet, but is primarily formed in the skin by exposure to sunlight.

However, the body's ability to produce the vitamin decreases with age, making older people more prone to deficiency.

One theory is that people with Parkinson's may be particularly vulnerable because their condition limits the amount of time they spend out of doors.

However, scientists say it may also be possible that low vitamin D levels are in some way related to the genesis and origin of the disease.

The researchers examined vitamin D levels in 100 people with Parkinson's, 100 with Alzheimer's disease and 100 who were healthy. The groups were matched for age, and economic circumstance.

Among the Parkinson's group 23% of patients had vitamin D levels so low that they could be described as deficient. In the Alzheimer's group the figure was 16%, and in the healthy group 10%.

The researchers said the findings were striking because the study group came from the South West of the US, where sunny weather is the norm.

'Intriguing finding'

Researcher Dr Marian Evatt said: "We found that vitamin D insufficiency may have a unique association with Parkinson's, which is intriguing and warrants further investigation."

Dr Kieran Breen, director of research, Parkinson’s Disease Society said: "Further research is required to determine at what stage the deficiency in vitamin levels occur in the brains of people with Parkinson's and whether the provision of a dietary supplement, or increased exposure to sunlight may help alleviate symptoms or have an affect on the rate of the condition's progression.

"This would help us answer the question as to whether the decrease in vitamin D levels in Parkinson’s is a cause or effect of the condition."

Doctors have known for decades that vitamin D plays a role in bone formation.

More recently, scientists have been uncovering its effects elsewhere, including producing peptides that fight microbes in the skin, regulating blood pressure and insulin levels, and maintaining the nervous system.

Low vitamin D levels also appear to increase the risk of several cancers and auto-immune diseases such as multiple sclerosis and diabetes.

Asian stocks repeat US successes

Financial markets in Asia have risen sharply, with the Nikkei gaining 13% in morning trading, and Sydney up 5%.

New York had good news at last

The gains came after Wall Street shares rocketed 11% on Monday as investors welcomed fresh moves to deal with the worldwide financial crisis.

Investors were helped by news the US government wanted to put in place its $700bn bank bail-out quickly.

Australian Prime Minister Kevin Rudd has now announced a A$10.4bn ($7.3bn) economic stimulus package.

It will allow for one-off payments to the country's low-wage earners and pensioners and follows earlier announcements of guarantees of bank deposits for three years.

According to Mr Rudd, the strategy "will strengthen the national economy and support Australian households".

Australian PM Kevin Rudd announces a A$10.4bn economic stimulus package

By lunchtime, Sydney's S&P/ASX200 was up 219 points at 4399.7, and the Australian dollar had strengthened against the US dollar, trading four cents higher than on Monday.

In New Zealand, the stock market rose 6.7% by early afternoon.

In the US, President George W Bush is due to make a statement shortly before markets open there later on Tuesday.

He will speak after meeting his working group on financial markets.

Rescue plans

On Monday US Treasury and Federal Reserve Bank officials met the chief executives of some of America's biggest banks, to work out details of the US government's $700bn (£400bn) bail-out package.

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The US has said it was also getting ready to follow in Europe's footsteps and purchase stakes in financial institutions.

On Monday the US Treasury announced it was set to buy stakes in a "broad array" of financial firms.

Treasury Secretary Henry Paulson will give further details of the plan on Tuesday morning, with an expectation that funds will be injected into such major banks as JP Morgan Chase, Goldman Sachs and the Bank of New York Mellon Corp.

European governments have said they are putting up to 1.7 trillion euros ($2.3 trillion; £1.3 trillion) to protect the continent's banks through guarantees and other emergency measures.

The sums are a maximum, and might not all be spent if the financial crisis eases.

So far Germany has approved a bank rescue plan worth up to 500bn euros, France will spend about 350bn euros, the Netherlands has pledged 200bn euros, Spain 100bn euros, and Austria 85bn euros.

Italy said it would spend as much as was needed, without giving any exact figures.

The bulk of the European money will be used to guarantee lending between banks - part of a plan agreed this weekend by the 15 nations that use the euro.

The cash will also be used to take stakes in ailing banks, with the UK government saying it would inject up to £36bn of taxpayers cash into Royal Bank of Scotland, Lloyds TSB and HBOS.

City hopes to shuttle people in futuristic 'podcars'

The thought of a driverless, computer-guided car transporting people where they want to go on demand is a futuristic notion to some.

Computer-guided electric podcars like these carry small groups of people on their own networks.

To Jacob Roberts, podcars -- or PRTs, for personal rapid transit -- represent an important component in the here-and-now of transportation.

"It's time we design cities for the human, not for the automobile," said Roberts, president of Connect Ithaca, a group of planning and building professionals, activists and students committed to making this upstate New York college town the first podcar community in the United States.

"In the podcar ... it creates the perfect blend between the privacy and autonomy of the automobile with the public transportation aspect and, of course, it uses clean energy," Roberts said.

With the oil crisis reaching a zenith and federal lawmakers ready to begin fashioning a new national transportation bill for 2010, Roberts and his colleagues think the future is now for podcars -- electric, automated, lightweight vehicles that ride on their own network separate from other traffic.

Unlike mass transit, podcars carry two to 10 passengers, giving travelers the freedom and privacy of their own car while reducing the use of fossil fuels, reducing traffic congestion and freeing up space now monopolized by parking.

At stations located every block or every half-mile, depending on the need, a rider enters a destination on a computerized pad, and a car would take the person nonstop to the location. Stations would have slanted pull-in bays so that some cars could stop for passengers, while others could continue unimpeded on the main course.

"It works almost like an elevator, but horizontally," said Roberts, adding podcar travel would be safer than automobile travel.

The podcar is not entirely new. A limited version with larger cars carrying up to 15 passengers was built in 1975 in Morgantown, West Virginia, and still transports West Virginia University students.

Next year, Heathrow Airport outside London will unveil a pilot podcar system to ferry air travelers on the ground. Companies in Sweden, Poland and Korea are already operating full-scale test tracks to demonstrate the feasibility. Designers are planning a podcar network for Masdar City, outside Abu Dhabi, which is being built as the world's first zero-carbon, zero-waste city.

Meanwhile, more than a dozen cities in Sweden are planning podcar systems as part of the country's commitment to be fossil-fuel-free by 2020, said Hans Lindqvist, a councilman from Varmdo, Sweden, and chairman of Kompass, an association of groups and municipalities behind the Swedish initiative.

"Today's transportation system is reaching a dead end," said Lindqvist, a former member of the European parliament.

Cars have dominated the cityscape for nearly a century, taking up valuable space while polluting the air, said Magnus Hunhammar, chief executive officer of the Stockholm-based Institute for Sustainable Transportation, the world's leading center on podcar technology.

"Something has to change," he said. "We aren't talking about replacing the automobile entirely. We are adding something else into the transportation strategy."

Skeptics, however, question whether podcars can ever be more than a novelty mode of transportation, suitable only for limited-area operations, such as airports, colleges and corporate campuses. Detractors, mainly light-rail advocates, say a podcar system would be too complex and expensive.

"It is operationally and economically unfeasible," said Vukan Vuchic, a professor of transportation and engineering at the University of Pennsylvania who has written several books on urban transportation.

"In the city, if you have that much demand, you could build these guideways and afford the millions it would take, but you wouldn't have capacity. In the suburbs, you would have capacity, but the demand would be so thin you couldn't possibly pay for those guideways, elevated stations, control systems and everything else," Vuchic said.

Podcars typically run on an elevated guideway or rails, but they also can run at street level. As a starting point, pilot podcar networks can be built along existing infrastructure, supporters say.

Ithaca Mayor Carol Peterson said a podcar network could be part of her upstate city's long-range transportation plans and its mission of developing urban neighborhoods that are environmentally sustainable and pedestrian-friendly. Ithaca has a long history of progressive achievements -- this summer, it began the first community-wide car sharing program in upstate New York.

In Ithaca, a network could connect the downtown business district and main business boulevard with the campuses of Cornell University and Ithaca College, which sit on hillsides flanking the city. When the two colleges are in session, Ithaca's population balloons from about 30,000 to about 80,000, causing big-city congestion on the city's roads.

Santa Cruz, California, recently hired a contractor to design a small solar-powered podcar system that would loop through the city's downtown and along its beach front.

The Institute for Sustainable Transportation predicts a podcar system will be installed in an American city within the next five years, although it is likely to cost tens of millions of dollars. Because of the huge initial investment, funding would have to come from both public and private sectors, IST officials said.

The capital cost is about $25 million to $40 million per mile, which includes guideways, vehicles and stations, compared with $100 million to $300 million a mile for light-rail or subway systems, according to the IST.

Although the plan for Ithaca is only in the conceptual stages, Roberts sees the city as a logical place for the country's first community-wide podcar network, noting that construction of the Erie Canal across upstate New York in the early 1800s revolutionized commercial transportation in a young America.

"Buffalo, Rochester, Syracuse, Albany are connected along a single line, the Erie Canal. Now, they are connected by the (New York State) Thruway. It would be easy to adapt. You could have a high-speed rail line, or even buses, deliver travelers to the podcar stations, and the podcars take them wherever they want to go in the city," he said.

But podcar developers say they have overcome most technological obstacles and now must overcome the political and cultural barriers that lie ahead, equating it to the mind-set revolution that occurred when Americans hitched up their horses for good to become a nation of motorists.

"We are introducing an alternative to the automobile for the first time in 100 years," said Christopher Perkins, chief executive officer of Unimodal Transport Solutions, a California company that builds podcars that operate on magnetic levitation instead of wheels.

The Hubble Space Telescope gleams after a servicing mission in 2002.

NASA The Hubble Space Telescope gleams after a servicing mission in 2002.

The Hubble Space Telescope's handlers are weighing a plan to turn on a never-used backup system to restore communications as early as next week. If it works, the world's favorite orbiting observatory could be back in business just a couple of days later. If it doesn't, Hubble could conceivably be worse off than it was before.

The space telescope has been out of commission since Sept. 27, when its command and data-handling system abruptly failed. That forced a postponement of NASA's final Hubble servicing mission, which was due to begin this week with the launch of the shuttle Atlantis. The launch has been put off until next year - to give mission planners time to figure out how to make a fix, and to give Atlantis' crew time to practice the operation.

In the meantime, engineers have a devised a plan to switch Hubble's data-handling functions from the primary system, known as Side A, to the Side B backup system. Side B hasn't been put to the test since Hubble went into orbit in 1990.

"The transition to Side B operations is complex," Hubble's managers explained in a mission update released after the breakdown. "It requires that five other modules used in managing data also be switched to their B-side systems."

All the reconfigurations would be made remotely, by beaming commands to Hubble from the ground.

Sources familiar with the plans for the switchover note that there's some risk that the Side B systems won't work. There's even a chance that if the A-to-B switch doesn't work, Hubble wouldn't be able to switch back from B to A. That scenario would complicate plans for the eventual repair mission, and thus provides an argument for leaving things alone until Atlantis arrives.

A spare data-handling unit is being tested at NASA's Goddard Space Flight Center in Maryland, where the Hubble operations team is based. Engineers are also analyzing diagnostic data, according to NASASpaceflight.com, an independent Web site that closely follows the space program.

Hubble's managers reviewed the plans for the A-to-B switch today during a round of meetings at Goddard. More meetings are planned on Friday, and NASA Headquarters would review the recommendations on Tuesday, after the federal Columbus Day holiday.

If NASA's top officials give the go-ahead, the switchover could take place as early as Wednesday. Science operations could resume a couple of days after the switch has been made.

"If Side B goes up, and it's successful, we're looking forward to resuming science observations and coming up with clever programs to fill the time," said Ray Villard, a spokesman for the Baltimore-based Space Telescope Science Institute.

He said the first of Hubble's instruments to be brought back up would be the Wide Field and Planetary Camera 2, or WFPC2. He said reviving Hubble's other working camera, the Near Infrared Camera and Multi-Object Spectrometer, or NICMOS, would be "trickier" because of the camera system's cryogenics. Hubble's Fine Guidance Sensors could conceivably be used for science as well.

Hubble's other two science instruments, the Advanced Camera for Surveys and the Space Telescope Imaging Spectrograph, are currently out of commission and have been slated for repair during Atlantis' visit. Two more instruments, the Wide Field Camera 3 and the Cosmic Origins Spectrograph, are ready for installation.

NASA was already planning to have Atlantis' astronauts do all those upgrades, and change out Hubble's worn-out batteries and gyroscopes as well. Now more complications lie ahead. Will Hubble's handlers go through with the temporary switchover? How will they adjust the spacewalk schedule and the cargo manifest to accommodate the definitive fix for the data-handling system? Stay tuned for next week's episode of "Hubble's Troubles."

Testicles Could Be New Source Of Stem Cells

Scientists from Germany and the UK have found a new source of stem cells that could be as good as embryonic stem cells for researching and developing treatments for a range of serious diseases, but without the ethical problems of embryonic stem cells; the source is routine biopsies of men's testicles.

The discovery was the work of researchers from the Universities of Tübingen and Cologne in Germany, and King's College, London, and was published on 8th October in the online issue of Nature. The lead author was Professor Thomas Skutella, who leads an experimental embryology group at Tübingen University.

Stem cells from embryos have the potential to become any cell in the body, after all, a whole person grows from a single fertilized egg. But getting stem cells from embryos is fraught with ethical problems since it involves the destruction of embryos.

For some time now scientists have been working to find alternative ways to make stem cells with the same ability to become any cell in the body as the embryonic stem cell. One such method that has been showing great promise recently is the induced pluripotent stem cell, or iPS cell. By taking a normal cell, such as a skin cell and inserting certain genes into its DNA, scientists have been able to reprogram the cell to regress to an earlier form when it still had the potential to become virtually any other cell of the body.

However, Skutella and colleagues had a hunch that there was another source of stem cells, ones that did not need to have genes inserted into their DNA to make them into cells that produce other cells, because they do that already: the sperm producing cells inside adult male testicles.

They succeeded in harvesting stable stem cells from spermatogonial (sperm producing) cells taken from routine tissue biopsies of the testes of 22 adult male humans. They showed that the cells could be coaxed into regressing to become cells from all three germ layers that form in the very early stages of a new human embryo. This was done by culturing them in the same way used to make embryonic stem cells differentiate.

The researchers concluded that:

"The generation of human adult germline stem cells from testicular biopsies may provide simple and non-controversial access to individual cell-based therapy without the ethical and immunological problems associated with human embryonic stem cells."

Stem cells are the new hope for treatment development because they carry the potential of personalized therapy - using a person's own cells to create stem cells that can then repair and replace damaged tissue, such as in Parkinson's, Alzheimer's and cancers. This way the big problem of immune system rejection is overcome because the implants have the same DNA as the host.

In this case however, using stem cells from male testes, the treatment would only work on men.

Many scientists are of the view that regardless of the alternatives that are found, embryonic stem cells are still the best, they are the "gold standard" of pluripotency, and we will need them for research and treatment development for some time to come.

Obama: McCain's mortgage plan shows 'erratic' leadership

Sen. Barack Obama on Thursday slammed Sen. John McCain's new mortgage plan as "the latest in a series of shifting positions" and evidence of "erratic and uncertain leadership."
Sen. Barack Obama is saying Sen. John McCain has "shifting positions" and shows "erratic" leadership.

Sen. Barack Obama is saying Sen. John McCain has "shifting positions" and shows "erratic" leadership.
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"He's ended up with a plan that punishes taxpayers, rewards banks, and won't solve our housing crisis," Obama said at an event in Dayton, Ohio.

At the second presidential debate Tuesday, McCain suggested that the government buy up bad home loan mortgages and renegotiate at the new diminished value of those homes.

Under McCain's proposed $300 billion mortgage rescue plan, much of the burden of paying to keep troubled borrowers in their homes would shift to taxpayers.

McCain's original plan called for lenders to write down the value of these mortgages and take those losses.

Doug Holtz-Eakin, McCain's economic adviser, said Wednesday that the McCain plan could be put into place quickly because the groundwork and the authority for it already have been provided by last week's $700 billion bailout bill; the Hope for Homeowners program authorized by the housing rescue bill passed in July; and the government takeover of mortgage giants Fannie Mae and Freddie Mac. Read the details of McCain's proposal

In an e-mail to supporters, McCain said his plan would address "the very root of the failing housing market."

Obama charged that McCain's latest plan is "risky."

"I don't think we can afford that kind of erratic and uncertain leadership in these uncertain times. We need steady leadership in the White House. We need a president we can trust in times of crisis," Obama said.

n response to Obama's remarks in Dayton, the McCain campaign said Obama was "putting politics above the national interest."

"John McCain's home ownership resurgence plan represents absolutely no new expense to the taxpayer, but simply refocuses priorities to more directly assist the homeowners who are hurting instead of greed on Wall Street," spokesman Tucker Bounds said in a statement.

Earlier Wednesday, Obama's campaign launched a television ad that takes aim at McCain's proposal, saying "the same lenders that caused the crisis in the first place" would benefit from the plan.

As the candidates enter the final weeks of campaigning, they have been attacking each other more aggressively.

McCain's campaign has launched a string of new ads that question Obama's judgment and character.

The McCain campaign calls Obama "too risky for America" in a new Web ad that focuses on his political relationship with Bill Ayers, a founding member of the radical Weather Underground.

"Barack Obama and domestic terrorist Bill Ayers. Friends. They've worked together for years. But Obama tries to hide it," the announcer says in the 90-second ad.

"But Obama's friendship with terrorist Ayers isn't the issue. The issue is Barack Obama's judgment and candor," the announcer says. Watch analysts weigh in on the McCain attacks »

At a town hall meeting in Waukesha, Wisconsin, angry voters pleaded with McCain to get tougher on Obama.

One voter suggested that McCain bring up the Rev. Jeremiah Wright controversy.

"I am begging you, sir, take it to him," the voter said.

McCain did not specifically address the comment about Wright, Obama's former pastor who came under scrutiny during the primaries after clips of his sermons circulated on the Internet.

On Ayers, the Arizona senator said he doesn't care about a "washed-up former terrorist," but vowed to press Obama on his candor and judgment.

"We need to know the full extent of the relationship because of whether Sen. Obama is telling the truth to the American people or not. That's the question," McCain said.

Weather Underground was involved in bombings in the early 1970s, including attacks on the Pentagon and the Capitol. Obama was a young child at the time of the bombings.

Obama and Ayers, now a university professor, met in 1995, when both worked with a nonprofit group trying to raise funds for a school improvement project and a charitable foundation. CNN's review of project records found nothing to suggest anything inappropriate in the volunteer projects in which the two men were involved. Fact check: How close are Obama and Ayers?

Quoted in The New York Times, Obama called Ayers "somebody who engaged in detestable acts 40 years ago, when I was 8."

Michelle Obama brushed off the latest round of attacks in an interview with CNN's Larry King on Wednesday.

"I don't know anyone in Chicago who's heavily involved in education policy who doesn't know Bill Ayers. But, again, I go back to the point that the American people aren't asking these questions," she said. Watch Michelle Obama's interview »

Obama said her husband has been "thoroughly vetted" and said the Ayers allegations are a "part of politics."

The McCain campaign started pushing hard on the Ayers connection this past weekend when Alaska Gov. Sarah Palin accused Obama of "palling around with terrorists who would target their own country."

The Obama campaign retaliated Monday with a 13-minute documentary Web video detailing the Arizona senator's involvement in the Keating Five scandal in the 1980s.

US rivals back on campaign trail

Barack Obama's campaign has dismissed a $300bn plan by John McCain to help struggling homeowners for being "costly and out of touch".

Both men were back on the campaign trail after a TV debate on Tuesday.

With the ailing US economy a key issue for voters, Mr McCain fleshed out his plan for the government to buy up loans from troubled homeowners.

Mr Obama accused his rival of copying Bush administration policies that "led us into this mess in the first place".

The candidates swiftly endorsed a coordinated action by the Federal Reserve and central banks in other countries to cut in interest rates by 0.5% to stimulate world growth.

Senator Obama called for Congress to pass another economic stimulus package, and was boosted by a new poll showing him ahead on all main topics, with a substantial 13% lead on the key issue of the economy.

See full list of issues being tracked

Senator McCain urged the adoption of the plan to help home-owners that he proposed during the second of three debates in Nashville, Tennessee, on Tuesday.

Economic focus

On Wednesday, the Arizona senator held joint campaign appearances with running mate Sarah Palin in the key northern swing states of Ohio and Pennsylvania.

The dream of owning a home should not be crushed under the weight of bad mortgages John McCain Republican presidential candidate

At a rally in Bethlehem, Pennsylvania, Mr McCain called his home ownership resurgence plan "a critical first step our country must take to get through this time of crisis".

He said the loans of homeowners who had seen their home's value fall below their debt would be structured into affordable mortgages.

Mrs Palin, meanwhile, said Mr Obama's efforts to tie Mr McCain to Mr Bush were "starting to wear pretty darn thin".

"Last night Senator McCain talked about real and pragmatic solutions," said Mrs Palin. "Barack Obama talked about why he'd rather run against George Bush."

The Obama campaign dismissed Mr McCain's financial proposal as "more costly and out-of-touch than we ever imagined".

"John McCain wants the government to massively overpay for mortgages in a plan that would guarantee taxpayers lose money," said Jason Furman, Mr Obama's senior economic advisor.

'No bamboozling'

Meanwhile, the Democratic candidate focused on his healthcare plans during a rally in Indiana, a state once regarded as safely Republican but which now seems within his reach as polls swing in the Democrats' favour.

Polls suggest the Illinois senator has a bigger lead on health care than on any other issue.

Linking the economic proposals of Mr McCain to those of President George W Bush, Mr Obama said it was "a time for resolve and steady leadership".

Palin's criticism of Obama was blunter than her running partner's

He added that his rival thought Americans would not notice the downsides of the McCain campaign health-care proposals.

"We're not going to be hoodwinked," said Mr Obama. "We're not going to be bamboozled. We're not going to let him get away with it."

A new monthly poll from Rasmussen suggested that the Democrats were now more trusted than the Republicans on all 10 issues that they have been tracking for the past year.

The Democrats have the biggest lead on domestic issues, such as health care, education and social security, but they are also now more trusted on foreign policy issues such as the War on Terror, immigration and Iraq.

In earlier polls, Republicans had led on these issues.

A new Gallup poll also suggests that more voters are likely to vote for Mr Obama because of his economic tax plans, while on balance more voters have an unfavourable view of Mr McCain's economic policies.

Polls suggest most Americans thought Mr Obama came out on top after the Nashville debate, with Mr McCain failing to land a knock-out punch.

Attack ads

With the 4 November election nearing, the campaigns have become more aggressive, launching new television adverts attacking their opponent's credentials.

Joe Biden criticised attacks on Obama, his running partner

Mr McCain's team released an advertisement attacking Mr Obama's character and suggesting he is simply not presidential.

For its part, the Obama camp's new advertisement attacks the Republican's health care proposal for taxing employer-based insurance plans, the type held by the majority of US workers.

Meanwhile, Joe Biden, Senator Obama's running mate, has attacked the negative tone of the McCain campaign.

He said that attempts by his vice-presidential rival, Sarah Palin, to link Mr Obama to a former domestic terrorist was an effort to inject fear and loathing into the campaign.

Mr Biden - who was on Wednesday campaigning in Florida, another key swing state that has been hard-hit by the economic crisis - called the Republican effort to tie Senator Obama to 1960s radical William Ayers, now a Chicago professor, "mildly dangerous".

German doing well after 1st double arm transplant

MUNICH, Germany - A German farmer who received the world's first complete double arm transplant said Wednesday that incredulity gave way to joy when he woke from surgery to discover he had arms again.

Karl Merk, who lost his arms in a farming accident six years ago, said he at first could not believe that the transplant appeared to have been succesful.

"It was really overwhelming when I saw that I had arms again," said the 54-year-old, who wore a sleeveless black shirt showing clearly where his new arms had been grafted.

"These are my arms, and I'm not giving them away again," he told reporters at the Munich University Clinic where he remains nearly three months after the 15-hour operation.

Merk is recovering well and can perform simple tasks such as opening doors and turning lights on and off. His ultimate goals are to eat and dress himself — and ride a motorcycle.

"All in all, our wildest expectations have pretty much been fulfilled," said Christoph Hoehnke, one of the lead doctors.

A total of 40 surgeons, anesthesiologists, nurses and other support staff carried out the 15-hour operation on July 25-26 to graft the donor's arms on to the body of Merk, who lost his own just below the shoulder in a combine harvester accident.

Doctors said there were good indications of nerve growth in the arms but it could take up to two years before he relearns how to use his hands.

Merk appeared at the news conference Wednesday with lower arms bandaged and supported with a series of straps attached to shoulder pads.

Merk said he was looking forward to going home after four to six more weeks of an intensive program of physiotherapy, electric stimulation and psychological counseling.

There is also still a risk that Merk's immune system will react, though doctors said so far there was no sign of them being rejected.

Future of flagship Mars mission up in the air

Will Nasa 's flagship mission to Mars fly next year? The space agency could decide as early as Friday whether to cancel, delay or proceed with plans to launch a nuclear-powered, SUV-size rover to the red planet.

Nasa has already sunk $1.5 billion into the Mars Science Laboratory, which is pricier than expected. The mega-rover will roam the surface and drill into rocks for clues to whether the planet ever possessed an environment capable of supporting primitive life.

Doug McCuistion, who heads the Mars exploration program at Nasa headquarters, told scientists in recent public meetings that he expects the mission's total cost to run over by more than 30 percent. If it goes over that threshold, Congress would have the right to intervene and use its power to end the project on its own.

Managed by Nasa 's Jet Propulsion Laboratory in California, the project has been plagued by development problems and ballooning costs that caught headquarters' attention. McCuistion told a gathering of Mars scientists last month that Nasa was keeping a close eye on the project's progress and costs and participating in weekly reviews with JPL.

From the outset, the Mars Science Lab proved to be an engineering challenge due to its size and capability. The 9-foot-long robot geologist is bigger and can drive farther than its twin predecessors, Spirit and Opportunity, which are still alive after four years. It also carries some of the most sophisticated instruments, including a laser that can zap rocks from afar.

The mission's financial woes took many in the science community by surprise who fear that other projects will suffer to pay for the mega-rover.

"The magnitude of the increases has been mind-boggling," said geologist John Mustard of Brown University. "It has sent a shock wave to the Mars program and beyond to the planetary community."

If Nasa pushes to launch in 2009 as planned, it will have to find the money to get the rover ready. Any delay until 2010 or 2011 will add at least $300 million to the mission's price tag.

Alex Dery Snider, a spokeswoman for the House Science Committee, said members were concerned about the extra cost and want to know how Nasa will solve the problem.

Some scientists outside the Mars research community said canceling the project does not make sense since so much money has already been invested.

"We've got to continue our exploration of Mars, but in a way that's rational and sensible," said Frances Bagenal of the University of Colorado, Boulder.

Adults Should Exercise Aerobically For At Least 2.5 Hours A Week Says US Government

The US government's Department of Health and Human Services (HHS) has announced its first ever guidelines for physical activity for Americans that say adults should have 2.5 hours of moderate physical aerobic exercise a week, and children should have an hour or more of physical activity a day.

The new HHS publication is titled "2008 Physical Activity Guidelines for Americans"; it covers all ages, and it can be downloaded from the HHS website.

The guidelines emphasize that physical activity benefits everyone regardless of age or ethnic group and are designed so that people can easily incorporate physical activities that they enjoy into their daily lives.

HHS Secretary Mike Leavitt said:

"It's important for all Americans to be active, and the guidelines are a roadmap to include physical activity in their daily routine."

Leavitt said the evidence about the long term benefits of regular exercise is clear: it promotes health and reduces disease.

"The more physically active you are, the more health benefits you gain," said Leavitt.

Some of the benefits of regular physical activity listed in the guidelines include:

• Reduced risk of premature death, coronary heart disease, stroke, and high blood pressure.


• Lower risk of depression, type 2 diabetes, colon and breast cancer.


• Improved ability to think and get on with the tasks of daily living in older adults.


• At the levels recommended, adolescents and children can expect improved cardiorespiratory and muscular fitness, bone health and body composition.

Described by the HHS as the "most comprehensive of their kind", the new Physical Activity Guidelines for Americans were drafted by an advisory panel of 13 experts appointed by Leavitt over 2 years ago. They conducted the "first thorough review of scientific research about physical activity and health in more than a decade".

The guidelines include the following advice:

For Children and Adolescents

At least one hour a day of moderate or vigorous aeorbic physical activity.
At least three days a week of vigorous physical activity.
Moderate physical activity includes: brisk walking, hiking, skateboarding and cycling.
Vigorous physical activity includes: cycling, jumping rope, running, soccer, basketball, ice hockey, field hockey and similar intensive sports.
Muscle-strengthening exercise is also recommended for this group, including rope climbing, doing sit-ups, tug of war, at least three days a week.
And for strengthening bone, this group should also do things like skipping, jumping rope and running.

Adults

At least 2.5 hours a week of moderate aerobic exercise, or 1 hour 15 minutes of vigorous physical activity.
Moderate exercise includes: brisk walking, aqua aerobics, dancing, and general gardening.
Vigorous physical activity includes: race or power walking, jogging, running, lap swimming, hiking uphill and jumping rope.
Aerobic exercise should last a minimum of 10 minutes each time.
For added benefit, the HHS recommends adults do aerobic exercise moderately for a minimum of 5 hours a week or vigorously for 2.5 hours a week.
And for muscle-strengthening they should do weight training, push-ups, sit-ups, heavy gardening or carry heavy loads on two days a week at least.

Older Adults

This group should be doing the same as adults, if they can. If they have a chronic condition that stops them, they should be as close to the adult guideline as their condition allows.
Older adults at risk of falling should also do exercises to help maintain balance.

Pregnant Women

Expectant mothers should do at least 2.5 hours of moderate physical exercise a week while pregnant: and after delivery too, perhaps spread out during the week a bit more.
Pregnant women should talk to their doctor about how to adjust their regimen and stay healthy in their pregnancy and after delivery if they are used to doing vigorous exercise regularly and wish to continue.

Disabled Adults

where possible, adults with disabilities should do at least 2.5 hours of moderate, or 1 hour 15 minutes of vigorous, aerobic exercise a week.
They should also do muscle-strengthening exercises that involve all the major muscle groups on at least two days a week, preferably more.
It is important for this group to avoid inactivity and to keep exercising regularly, even if not able to meet the guidelines.

McCain, Obama Jockey for Voters' Trust on Economy

John McCain accused his rival of being untested and untruthful when it comes to the economic crisis, as the McCain campaign attempted Wednesday to sow doubts about Barack Obama's ability to lead the nation through turbulent times.

John McCain gives a thumbs-up before giving a speech at a rally, Wednesday, in Strongsville, Ohio. (AP Photo)

Obama earlier accused the Republican ticket of recycling "Bush economics" on health care and other critical issues, as his campaign ridiculed the plan McCain pitched at Tuesday night's debate for the Treasury Department to spend billions buying up bad mortgages.

The sharp exchanges were just the latest set of pleas from the presidential candidates to trust them with the daunting task of veering the nation away from recession. They came after the Federal Reserve joined other global central banks Wednesday in announcing an emergency rate cut.

"What was my opponent's actual record in the years before the greatest economic crisis of our lifetimes?" McCain asked at a rally in Strongsville, Ohio, accusing Obama of abetting the runaway behavior of Fannie Mae and Freddie Mac. "Senator Obama was silent. He was dead silent. ... There's absolutely nothing in his record to suggest he did anything."

While Obama promises he will not raise taxes on anyone making less than $250,000 a year, McCain all but called Obama a liar.

"If he's such a defender of the middle class, why did he vote to raise their taxes?" he said. "Why should middle-class Americans trust him to keep promises that he's already broken?"

Earlier at a rally in Bethlehem, Pa., with his running mate, Sarah Palin, and wife, Cindy, in Bethlehem, Pa., McCain repeated his call for a government plan to buy up bad mortgages directly from Americans.

He said the country's economic woes call for "decisive" action and questioned whether his opponent had the record of taking such action.

"In a time of trouble and danger for our country, who will put our country first?" he said. "We've all heard what he's said, but it's less clear what he's done or what he will do."

But Obama's campaign rejected McCain's call to spend $300 billion on distressed mortgages.

The plan would cause the government "to massively overpay for mortgages in a plan that would guarantee taxpayers lose money and put them at risk of losing even more if home values don't recover," Obama economic adviser Jason Furman said in a written statement. "The biggest beneficiaries of this plan will be the same financial institutions that got us into this mess, some of whom even committed fraud."

Speaking to several thousand people earlier in Indianapolis, Obama acknowledged public anxiety over the financial crisis in starker terms than usual. He called it a "moment of great uncertainty for America."

"But this isn't a time for fear or panic," Obama said. "This is a time for resolve and leadership. I know that we can steer ourselves out of this crisis."

Obama repeated his claims that McCain's proposals would cause many Americans to lose their employer-provided health insurance because McCain would tax those benefits. He said the $5,000 tax credit McCain would give people would not be enough for them to buy private insurance, a claim McCain disputes.

"All we heard from Senator McCain was more of the same Bush economics that led us into this mess," Obama said in Indianapolis the day after their second debate. "He thinks we won't notice" downsides of his health care proposals, but "we're not going to be hoodwinked. We're not going to be bamboozled. We're not going to let him get away with it."

After McCain's campaign spent the weekend drawing attention to Obama's personal ties to figures like 1960s radical William Ayers, on Wednesday McCain attempted to balance that criticism with a renewed focus on the economy.

Although the campaign circulated a statement critical of Obama's ties to Ayers, neither McCain nor Palin mentioned the Ayers connection on the stump in Pennsylvania.

Instead, they questioned Obama's veracity and tied questions over character and judgment to the current economic turmoil.

"What Senator Obama says today and what he has done in the past are often two different things," McCain said. "Rather than answer his critics, Senator Obama will try to distract you from noticing that he never answers the serious and legitimate questions he has been asked. He has even questioned my truthfulness."

McCain continued by saying he didn't "need lessons about telling the truth to American people."
"And were I ever to need any improvement in that regard, I probably wouldn't seek advice from a Chicago politician," he said.

Palin said Obama's attempts to link McCain to Bush are "starting to wear pretty darn thin."

But Ayers is not off the table. Palin criticized Obama in an interview with FOX News for giving "conflicting stories" over his relationship with Ayers.

Obama continues to enjoy a healthy lead in the polls as the economy dominates the campaign conversation. The Gallup daily tracking poll Wednesday showed Obama with an 11-point lead over McCain -- his highest ever lead in the national survey.

Suicide Attack! Tense stand-off in Thai capital

Troops are on the streets of Bangkok after its worst anti-government protests for 16 years left at least two dead and hundreds injured.

Demonstrators had set up a blockade outside the parliament building, which Prime Minister Somchai Wongsawat escaped by climbing over a fence.

The activists were trying to stop the inauguration of a government they say is run by ousted PM Thaksin Shinawatra.

But as troops moved in, protesters pulled back from the blockade.

The appearance of troops outside parliament is a clear sign that the government is struggling to maintain its authority, says the BBC's Jonathan Head in Bangkok.

Parliament blockade

The demonstrators - from the staunchly royalist People's Alliance for Democracy (PAD) - have been occupying the grounds of government buildings for weeks, but until Tuesday their demonstration had been largely peaceful.

An alliance of conservative and staunchly royalist academics, activists and business people, the PAD has proved to be a well organised and tactically savvy movement, our correspondent adds.

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Clashes in the streets of the Thai capital Bangkok

Several thousand PAD protesters broke out of the compound where they had been staying and marched to the parliament.

They tried to seal off the building by putting up barriers of old tyres and barbed wire.

Police fired volleys of tear gas in an unsuccessful attempt to disperse the demonstrators and around 380 people - including eight police officers who were reportedly shot or stabbed - were injured in ensuing clashes.

The protesters later regrouped, locking some lawmakers inside the building and cutting off the power supply.

Amid the worst street violence since pro-democracy activists challenged Thailand's army in 1992, one person was killed when a suspected car bomb exploded outside the building. A woman also later died, reportedly of chest wounds.

Troops were eventually brought in to help the police and, as army commanders took pains to ensure the public there would be no coup, most protesters pulled back to their camp in Government House.

Forced to flee

The violence prompted the resignation of Deputy Prime Minister Chavalit Yongchaiyudh, the government's chief negotiator with the PAD, who said police had failed to exercise the restraint he had requested.

Anti-government protesters were involved in clashes with police Enlarge Image

Mr Somchai had been holding talks with military commanders on how to end the weeks-long stand-off, before he was forced to flee the parliament building.

The protesters accuse him and his recently ousted predecessor, Samak Sundaravej, of simply being proxies for Mr Thaksin.

The PAD wants to replace the one-man, one-vote system with one in which some representatives are chosen by professions and social groups rather than the general electorate.

Mr Thaksin, Mr Somchai's brother-in-law, was forced from office in a military coup in 2006.

The new government says it wants to start negotiations with the PAD.

However, it is also pushing ahead with controversial plans to amend the constitution - a key grievance of the protesters who see it as part of a plan to rehabilitate Mr Thaksin.

The alliance says the government must resign because of its links to Mr Thaksin, who lives in the UK and has requested political asylum there.

It accuses him of corruption and abuse of power while he was in office.

It has also suggested that Mr Thaksin and his allies have a hidden republican agenda, a serious charge at a time when the country is beset by anxiety over the future of the monarchy.

HIV: Circumcision HIV impact doubted

There is no hard evidence that circumcision protects gay men from HIV, research shows.

Condoms are seen as offering the best protection

African trials have shown circumcision cuts the likelihood of male to female HIV transmission by up to 60%.

But a US analysis of data on 53,567 men who have sex with other men found HIV rates were not significantly lower among those who were circumcised.

The Journal of the American Medical Association study stressed more work was needed to draw firm conclusions.

This research adds weight to the evidence that circumcision isn't an effective method of HIV prevention for men who have sex with men Will Nutland Terrence Higgins Trust

The US team, from the Centers for Disease Control and Prevention in Atlanta examined data on 53,567 men who have sex with men, of which 52% were circumcised.

HIV levels among those who were circumcised were lower - but not significantly so.

However, there was evidence that circumcision may have had a protective effect in studies carried out before the introduction of highly active antiretroviral therapy (HAART) in 1996.

The researchers said one possible explanation was that the advent of these more effective HIV drugs had encouraged higher levels of risk taking sexual behaviour, wiping out any marginal protective effect from circumcision.

Alternatively, the drugs may have helped lower the risk of transmission to the point where circumcision had no further benefit.

A third possibility is that there may have been a smaller proportion of men in the pre-HAART trials who primarily engaged in receptive anal sex, which carries the greatest risk for HIV infection among gay men.

Prevention

Michael Carter, of the HIV information service NAM, said: "It's my sense that there has been a tempering of the excitement about circumcision, and researchers are now favouring a 'combination prevention' approach.

"Circumcision may have a place in this in some settings, but so too do good sexual health, consistent condom use, and there's real excitement and debate about the role of HIV treatment in prevention."

Will Nutland, of the HIV charity Terrence Higgins Trust, said: "This research adds weight to the evidence that circumcision isn't an effective method of HIV prevention for men who have sex with men.

"The majority of HIV infections in men who have sex with men are as a result of receptive anal intercourse and circumcision would make no difference in these cases.

"Rather than encouraging gay men to be circumcised, investment in prevention in the UK should focus on targeted education programmes, condom provision and easy access to testing."

Cars set to get parental controls

Advertisement Footage of the car in action - courtesy Ford.com Cars could soon come with parental controls that limit what younger drivers can do with a vehicle. Developed by Ford, the MyKey system limits a car's top speed, how loud its stereo can be and sounds warnings if seatbelts are not being worn. Ford will introduce the controls on some US makes of car that are due to debut in 2009 but go on sale in 2010. The Ford Focus will be the first to have MyKey, but the car maker said it would become a standard feature. Warning tones The main element of the MyKey system is to limit the top speed of a car to 80mph. Ford says other options allow parents to limit the volume on the car stereo and make the car sound a continuous alert if drivers and passengers are not wearing a seatbelt. Other options will let parents decide if warning tones should sound if a car goes faster than 45, 55 or 65 mph. The car giant said the system built on the ID chips it already used in car keys to hamper car theft. "It's making use of existing technology, and through the magic of software, we're able to build features on top of the features we already have," sad Jim Buczkowski, Ford's director of electronic and electrical systems engineering. Ford's compact version of the Focus, which is due to go on sale in 2010, will be the first to sport MyKey. But a spokesman said it would spread to all cars in the Ford, Lincoln and Mercury range as models are updated. "Research we've done has shown that speeding is a major factor in teen crashes, especially novice teen drivers," Anne McCartt, senior vice president for research at the US Insurance Institute for Highway Safety, told the AP news agency. "So I think a system that tries to correct the speeding behaviour has the potential to improve safety," she added.

living fish filmed 'Deepest ever'

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The fish were caught on camera

The "deepest ever" living fish have been discovered, scientists believe.

A UK-Japan team found the 17-strong shoal at depths of 7.7km (4.8 miles) in the Japan Trench in the Pacific - and captured the deep sea animals on film.

The scientists have been using remote-operated landers designed to withstand immense pressures to comb the world's deepest depths for marine life.

Monty Priede from the University of Aberdeen said the 30cm-long (12in), deep-sea fish were surprisingly "cute".

Nobody has really been able to look at these depths before - and I think we will see fish living much deeper Alan Jamieson, Oceanlab

The fish, known as Pseudoliparis amblystomopsis, can be seen darting about in the darkness of the depths, scooping up shrimps.

Alan Jamieson, from the University of Aberdeen, said: "It was an honour to see these fish.

"No-one has ever seen fish alive at these depths before - you just never know what you are going to see when you get down there."

The deepest record for any fish is Abyssobrotula galatheae, which was dredged from the bottom of the Puerto Rico Trench at a depth of more than 8km (5 miles) in 1970. However, it was dead by the time it reached the surface.

The previous record for any fish to have been spotted alive was thought to have stood at about 7km (4 miles).

Pressure points

The Hadeep project, which began in 2007, is a collaboration between the University of Aberdeen's Oceanlab and the University of Tokyo's Ocean Research Institute (Ori) and aims to expand our knowledge of biology in the deepest depths of the ocean.

It is funded by the Nippon Foundation and the Natural Environment Research Council (Nerc).

DEEP SEA DIVISIONS Bathyal zone: 1,000-3,000m (3,000-10,000ft) Abyss: 3,000-6,000m (10,000-20,000ft) Hadal: 6,000m-11,000m (20,000-36,000ft)

The researchers have been looking at the Hadal zone - the area of ocean that sits between 6,000 and 11,000m (20,000-36,000ft). It consists of very narrow trench systems, most of which are found around the Pacific Rim.

The researchers are able to explore them using specially designed remote operated vehicles that are fitted out with cameras.

Professor Priede, director of Oceanlab, said: "There is the question of how do animals live at all at these kinds of depths.

"There are three problems: the first is food supply, which is very remote and has to come from 8km (5 miles) above.

"There is very high pressure - they have to have all sorts of physiological modifications, mainly at the molecular level.

The lander was designed to withstand immense pressure

"And the third problem is that these deep trenches are in effect small islands in the wide abyss and there is a question of whether these trenches are big enough to support thriving endemic populations."

But this species appears to have overcome these issues, added Professor Priede.

"We have spotted these creatures at depths of 7,703m (25,272ft) - and we have actually found a massive group of them.

"And this video is pretty tantalising - the fact that there are 17 of them implies that they could well be a family group, begging the question of whether some form of parental care exists for these fish."

Vibration sensors

The researchers said they were surprised by the fish's behaviour.

"We certainly thought, deep down, fish would be relatively inactive, saving energy as much as possible, and so on," Professor Priede told BBC News.

The fish were surprisingly active

"But when you see the video, the fish are rushing around, feeding accurately, snapping at prey coming past."

Because the fish live in complete darkness, they use vibration receptors on their snouts to navigate the ocean depths and to locate food.

Professor Priede added: "Nobody has seen fish alive before at these depths - only pickled in museums - and by the time they come up from the depths they look in a pretty sorry state.

"But these fish are actually very cute."

Alan Jamieson added that he believed the team would find more fish during their next expedition in March 2009, which would probe the ocean between depths of 6,000m and 9,000m.

He told BBC News: "Nobody has really been able to look at these depths before - I think we will see some fish living much deeper."

Obama's & Mackain Crucial TV Debate!

John McCain and Barack Obama will answer questions from voters

The US presidential candidates have begun their second TV debate amid wide public fears over the financial crisis.

The first question focused on the difficulties facing US homeowners.

Democrat Barack Obama said the US faced the worst financial crisis since the Great Depression and that more had to be done to help the middle class.

Mr McCain said that, if elected, he would order the US Treasury Secretary to buy up "bad" mortgage loans, helping to create jobs and revive the economy.

"We are going to have to stabilise home values and that way people can realise the American dream and stay in their home," Mr McCain said.

Mr Obama said the political process in Washington would have to change to prioritise the interests of ordinary Americans and ensure they were able to remain in their homes.

Ahead of the debate, campaigning took on an increasingly bitter tone, with Senator Obama accusing Senator McCain of "smear tactics" and not paying attention enough to the economy.

Mr McCain said Mr Obama was "lying" about his ties to the home loan industry and asked what his rival had ever accomplished in government.

Recent opinion polls have shown Mr Obama taking a widening lead.

'Town Hall' debate

The second presidential debate, taking place less than a month before the 4 November election, has generated intense interest among the public.

Following personal attacks from both sides in recent days, there could be fireworks tonight LIVE McCain/Obama debate

More than six million people e-mailed questions to the moderator, NBC news presenter Tom Brokaw, who is presiding over the town hall-style debate in Nashville, Tennessee.

He was to select only six or seven e-mailed questions, as well as about a dozen from the studio audience of 80 uncommitted voters. They will cover domestic and foreign policy.

Mr McCain, who was widely viewed to have lost the first debate, has vowed to take the gloves off for this encounter.

The town hall format is his preferred style of campaigning and may work in his favour, analysts say.

Mr Obama, meanwhile, has promised to fight back.

"We don't throw the first punch, but we'll throw the last," he told a syndicated radio show.

Earlier in the day, Mr Obama's senior strategist, David Axelrod, told reporters that Mr McCain had indicated he was "going to be very aggressive in this debate".

A new ad released by the Obama campaign attacks Mr McCain's record on the economy.

"As Americans lose their jobs, homes and savings, it's time for a president who'll change the economy, not change the subject," it says.

Polling numbers

The latest Gallup daily tracking poll puts Mr Obama at 50% and Mr McCain at 42%, while a new CNN poll put Mr Obama ahead by 53% to 45%.

We don't throw the first punch, but we'll throw the last Barack Obama The shifting election battleground Crucial debate Send us your comments

Mr Obama, the Democratic candidate, is still gaining in some of the key swing states as well. A new Washington Post poll puts him 6% ahead of Mr McCain in Ohio, a state the Republican candidate probably needs to take if he is to win the presidency.

And another poll, by Rasmussen, also puts Mr Obama ahead in Missouri, which had previously been seen as safely Republican.

In recent days both camps have launched fresh assaults on the character of their opponent.

Mr McCain's running mate Sarah Palin posed further questions about Mr Obama's "truthfulness and judgement".

Both campaigns have ratcheted up the rhetoric with one month to go

Governor Palin had accused Mr Obama of "palling around" with a "domestic terrorist" - Bill Ayers.

Mr Ayers belonged to the US militant group Weather Underground, which opposed the Vietnam War in the 1960s.

Mr Obama once served on a charity board with Mr Ayers but has denounced his radical past.

In an interview with the New York Times newspaper on Monday, Mrs Palin also suggested that voters should pay more attention to Mr Obama's relationship with his former church pastor, the Reverend Jeremiah Wright.

Mr McCain had previously indicated that he did not want Rev Wright's inflammatory sermons, which Mr Obama has repudiated, to form part of his campaign.

Judgement claim

Meanwhile, the Obama campaign has been highlighting Mr McCain's involvement in a financial scandal 20 years ago.

It e-mailed supporters an internet video about Mr McCain's connections to Arizona tycoon Charles Keating, who was convicted of securities fraud after his savings and loan bank collapsed.

Mr McCain was one of five senators - known as the Keating Five - to be investigated by a Senate ethics panel over their intervention with banking regulators on behalf of Keating.

He was found to be less involved with Keating than the other senators but was criticised for "poor judgement".

Mr McCain has himself described the affair as "the worst mistake of my life", and one which led him to sponsor legislation on campaign finance reform.

Watch the second US presidential debate live from Nashville, Tennessee from 0100 GMT, with full analysis, running commentary and voter reaction.