![Image]( "Retailers suffer grim December")
The high street suffered its worst December on record last month as retailers battled with Arctic weather conditions and shoppers shunned higher prices.
Retail sales volumes declined 0.8% month-on-month - the lowest reading since records began in 1988, the Office for National Statistics (ONS) said.
Food stores saw a 3.4% drop in year-on-year sales volumes - another record plunge - as prices soared 5%, the ONS added.
Friday's official figures offer a definitive view on the impact the adverse weather and economic climate had on Christmas sales, as varied trading reports from retailers such as Marks & Spencer, Next and HMV have muddied the overall picture in the sector.
High Street giant M&S and British department store favourite John Lewis reported strong sales growth earlier this month, while fashion chain Next and entertainment group HMV blamed the severe weather for a slump in sales.
In the supermarket industry, Sainsbury's led the way, with 3.6% like-for-like sales growth in the 14 weeks to January 8, while UK number one Tesco disappointed with 0.6% same-store sales growth.
But the biggest drop within overall retail sales volumes came from food, which declined 0.9% month-on-month, the ONS said. Soaring food prices, reflected within the rising rate of Consumer Price Index inflation which stands at 3.7%, were "not helping" food retailers, the ONS said.
But companies noted a change in shoppers' behaviour during the severe weather spell - consumers were turning to local stores to buy small volumes, rather than heading to out-of-town behemoths for weekly or monthly shops.
The ONS said internet sales continued to strengthen - now constituting a record 10.6% of all retail sales - as £770 million was spent online in December. But even internet food sales were hit by the weather, the ONS added, as retailers noted a tailing-off of sales after December 13, when reports of delayed and failed deliveries started to surface. Household goods stores also performed badly, matching the 0.9% month-on-month decline seen in food.
The ONS said there was no evidence to suggest consumers were snapping up big-ticket items, such as televisions or fridges, ahead of January's VAT hike, as electrical appliances declined in December. Department stores did weather the storm, and were up 0.3% month on month, with the new Xbox Kinect selling well across the sector. The ONS noted a rise in sales volumes at sport equipment stores. The volume of retail sales was also flat year-on-year, once again a record low, the ONS said. The value of retail sales rose 2% year-on-year, but declined 0.6% month-on-month.
Paul the celebrated octopus has finally got his tentacles wrapped around a soccer ball.
The Sea Life aquarium in Oberhausen, Germany, unveiled an outsized memorial to the World Cup's late and most unlikely star - A 6ft 6in tall plastic replica of Paul clutching a ball in his eight arms.
Aquarium spokeswoman Tanja Munzig says Paul's cremated ashes were placed in a gold-leaf-covered urn inside the ball.
Paul died three months ago and Munzig says fans around the world had asked for a memorial.
Paul correctly tipped the outcome of all seven of Germany's games at last year's World Cup plus the Spain-Netherlands final.
He made his predictions by opening the lid of one of two boxes, each containing a mussel and bearing a team flag.
Detectives are questioning a 32-year-old man on suspicion of murdering landscape architect Joanna Yeates.
The suspect was detained in the early hours of Thursday after police investigating the 25-year-old's death uncovered fresh evidence.
Soon afterwards, specialist search teams moved into the neighbouring flat to where Miss Yeates lived at 44 Canynge Road, Clifton, Bristol.
Dutch engineer Vincent Tabak, 32, is registered as living at the address with his girlfriend Tanja Morson.
Police officers were seen at the offices of his employer, international consultancy Buro Happold, in Lower Bristol Road, Bath.
The firm, and several colleagues, referred all inquiries to Avon and Somerset Police. The force has not named the suspect in custody.
Workers erected scaffolding and green tarpaulin at the rear of the substantial converted Victorian property yesterday.
The screen covers the entrance to flat two, where Mr Tabak lived, and the rear of Miss Yeates's rented home.
Police sealed off both ends of Canynge Road as officers in white forensic outfits searched the property. Later, forensic officers loaded three wheelie bins and a mountain bike from the address in Aberdeen Road into a unmarked white transit van.
Miss Yeates's father welcomed the latest development, which comes almost five weeks after his daughter disappeared. Speaking at the family home in Ampfield, Hants, David Yeates, 63, said he was "pleased" the police investigation was "moving forward".
An eyewitness described how three boys fought with a man before he allegedly launched a stabbing attack in which one was killed.
A 33-year-old man was under arrest after a boy of 15 was stabbed to death in West Green Road, Tottenham, north London.
Scotland Yard said four teenage boys received stab wounds and one was pronounced dead at the scene.
A force spokeswoman said officers were called out at 3.45pm on Thursday following reports of an assault. An ambulance and the air ambulance also attended.
The young victim was pronounced dead shortly after 4.30pm and the other three were taken to hospital.
One, a boy of 14, was believed to have suffered a puncture wound but his condition was not critical.
Another, aged 16 years, suffered injuries but his condition was not critical either.
The third, aged 15, suffered a facial injury and was treated and discharged, police said.
The 33-year-old was arrested near the scene and is being held in custody at a north London police station.
The police spokeswoman said: "A boy aged 15 years was pronounced dead at the scene. It is believed he was stabbed. Detectives are retaining an open mind at this early stage re the circumstances of the incident and any motive."
The Department for Work and Pensions is not doing enough to stem losses totalling £1.1 billion a year caused by benefit recipients making errors in their claims, according to a spending watchdog's report.
Three years into a five-year clampdown on error launched by the DWP in 2007, there was "no discernible decrease" in the amount of cash lost to customer errors, said the National Audit Office.
There was also little improvement to be seen in the £800 million annual underpayments due to mistakes in applications for benefits, which was causing hardship to the families concerned
Although Iain Duncan Smith's department has established a Fraud and Error Council and introduced other measures to reduce the volume of customer mistakes, it does not have enough information to target these initiatives effectively, said the NAO.
Auditor General Amyas Morse said: "The benefits system is complicated and it is inevitable that mistakes occur. The DWP, therefore, faces a significant challenge in tackling error by claimants.
"The department has demonstrated a firm commitment to tackling administrative error, while its resolve to tackle customer error has so far been less evident.
"It now needs to bring its focus on customer error to the same level. The key to success in each area is a coherent strategy supported by good information on what works to deliver the best results."
The report acknowledged that mistakes by claimants are "difficult to detect, correct and prevent". In many cases, they arise from changes to claimants' circumstances which they may not realise they need to tell the department about.
Customer error consistently highest in claims for Housing Benefit, which saw £420 million in overpayments and £220 million in underpayments in 2009/10. The report said that the scale of overpayments and underpayments demonstrate a "clear imperative for improvement".
And it cautioned: "The NAO found little evidence that there has yet been sufficient attention paid to reducing losses due to customer mistakes. The department launched a five-year strategy for tackling error in January 2007, but there has been no discernible decrease between 2006/07 and 2009/10 in underpayments and overpayments due to customer error as a percentage of benefits expenditure."
Former US president George Bush senior and members of his government have recalled the Gulf War as a time in history when the world stood united against a tyrant as well as a "textbook example" of how to go to battle.
Before a crowd of 3,500 people including Gulf War veterans, Mr Bush and key members of his national security team gathered at Texas A&M University to discuss the 20th anniversary of the conflict which began on January 17 1991.
The war was prompted by Iraq's invasion of Kuwait in August 1990 under then-President Saddam Hussein.
Mr Bush said helping to liberate Kuwait and guiding as commander in chief of the US-led coalition troops was one of the great honours of his life.
"A few things I probably could have done better, but in the case of Desert Storm (the military name for the Gulf War), history will say we got this one right," he told the audience at the event, held at A&M's basketball arena.
Sheikh Ahmad Humood Jaber Al-Sabah, representing Kuwait's emir who was unable to attend, thanked the former president, his officials, the US and its military forces.
"Believe me, Kuwait and its people will never forget you," he said. "We carry in our hearts what you did for us each and every day."
Mr Bush was briefly joined by former vice president Dan Quayle. Later, his top advisers - then-defence secretary Dick Cheney, former Joint Chiefs of Staff chairman Colin Powell, former secretary of state James Baker and then-national security adviser Brent Scowcroft - and Mohammad Abdullah Abulhasan, Kuwait's ambassador to the United Nations at the time, took the stage and recalled the events leading up to the conflict.
Their discussion detailed the efforts the US made to try to resolve the situation diplomatically and build a worldwide coalition before deciding that military action was the only solution.
"This is a textbook example of the way to go to war. Diplomatically, politically, militarily of course and economically," said Mr Baker, who added that Mr Bush left no stone unturned in seeking a peaceful way to resolve things.
Tony Blair has said that he had always made clear to US president George Bush that he would be "up for" regime change in Iraq if it was the only way of dealing with Saddam Hussein.
Making his second appearance before the Iraq Inquiry, the former prime minister acknowledged that he had discussed ousting Saddam with Mr Bush as early December 2001 - even though it was not then British policy.
The inquiry released a newly-declassified document from March 2002 - a year before the invasion by Britain and the US - in which Mr Blair said the UK should be "gung ho" about the prospect of getting rid of the Iraqi dictator.
In his evidence to the inquiry, Mr Blair said that, while he made clear that he would always stand "shoulder to shoulder" with the Americans, he had also succeeded in persuading the US leader to go down the "UN route" first.
The former premier said regime change in Baghdad had always been "on the agenda" for the Americans after the 9/11 attacks in 2001. He acknowledged that it had come up when he spoke to Mr Bush by telephone on December 3 that year.
Mr Blair said: "Regime change was their policy, so regime change was part of the discussion. If it became the only way of dealing with this issue, we were going to be up for that. The Americans, from September 11 onwards, this was on their agenda."
The inquiry also released a note from Mr Blair to his chief-of-staff Jonathan Powell shortly before his visit to Mr Bush at the president's ranch in Crawford, Texas, in April 2002, in which he argued that Labour should be "gung ho" about dealing with Saddam.
Mr Blair wrote: "Saddam's regime is a brutal, oppressive military dictatorship. He kills his opponents, has wrecked his country's economy and is a source of instability and danger in the region.
"I can understand a right-wing Tory opposed to 'nation-building' being opposed to it on grounds it hasn't any direct bearing on our national interest. But in fact a political philosophy that does care about other nations - e.g. Kosovo, Afghanistan, Sierra Leone - and is prepared to change regimes on the merits, should be gung-ho on Saddam."
By the autumn of 2002, after Iraq failed to co-operate properly with the United Nations Security Resolution which allowed for the return of UN weapons inspectors, Mr Blair said he was determined to stick with the Americans. He said: "Once it became clear that Saddam had not changed but was carrying on in the same way, I think it would have been profoundly wrong of us to have gone back to the Americans and said 'I know we said that we would be with you in handling this, but now we are not'."
Details of the "personal issues" that forced shadow chancellor Alan Johnson to quit were starting to emerge amid allegations that the politician's bodyguard had an affair with his wife.
Mr Johnson's close protection officer when he was home secretary, Paul Rice, is facing an internal Scotland Yard inquiry over his alleged behaviour. A decision is expected to be taken shortly on whether the constable will be suspended or relieved of duty while the probe takes place.
Mr Johnson dramatically resigned from the Labour front bench on Thursday night, saying he was finding it "difficult to cope" with "personal issues in my private life".
Responding to reports that Laura Johnson had an affair with Mr Rice, a Yard spokesman said: "Certain matters regarding a Metropolitan Police Service Pc were referred to the directorate of professional standards. We are not in a position to discuss further at this time. No officer is suspended or relieved of duties at this time."
Mr Rice is said to be deployed protecting current Home Secretary Theresa May.
Mr Johnson's spokesman has refused to comment on the claims, while the Home Office said it did not comment on personal security matters.
Shadow minister Tessa Jowell told BBC2's Newsnight she did not know why Mr Johnson had resigned, but added: "He's clearly very distressed. It's clearly a very, very difficult time for him."
In his statement, Mr Johnson said only that it was "to do with my family". He added: "I have found it difficult to cope with these personal issues in my private life whilst carrying out an important frontbench role."
Mr Johnson has been married to his second wife Laura for almost 20 years and the couple have a 10-year-old son.
His resignation left Ed Miliband facing his biggest test since being elected Labour leader, forcing him to reshuffle his shadow cabinet less than four months into the job. He installed Ed Balls as shadow chancellor after overlooking him last October.
Andy Coulson has quit as Downing Street communications chief, saying the continuing row over phone-hacking when he was editor of the News of the World was distracting from his job.
In a personal statement issued by Number 10, Mr Coulson said he was "proud" of his work with David Cameron and the coalition.
But he added: "Nothing is more important than the Government's task of getting this country back on its feet.
"Unfortunately continued coverage of events connected to my old job at the News of the World has made it difficult for me to give the 110% needed in this role. I stand by what I've said about those events but when the spokesman needs a spokesman it's time to move on.
"I'll leave within the next few weeks and will do so wishing the Prime Minister, his family and his brilliant and dedicated team the very best for what I'm sure will be a long and successful future in Government."
Mr Cameron said in a statement: "I am very sorry that Andy Coulson has decided to resign as my director of communications, although I understand that the continuing pressures on him and his family mean that he feels compelled to do so. I wish Andy all the very best for his future, which I am certain will be a successful one."
Last week Mr Cameron refused to confirm or deny reports that Mr Coulson had offered to resign to spare the Government further damage. But he admitted that his communications director was "extremely embarrassed" about the drip-drip of accusations that he knew famous people's phone voicemails were being accessed.
The timing of the announcement will spark claims that the Government is "burying bad news", coming as former prime minister Tony Blair was giving evidence to the Iraq Inquiry and with the spotlight still on shadow chancellor Alan Johnson's resignation.
Labour MP Tom Watson, who has been pursuing the allegations against Mr Coulson and the News of the World, accused him of sneaking out the statement on a busy news day. He also said the resignation raised "serious questions" about the Prime Minister's judgment.
"This is the second job that Andy Coulson has resigned from for something he claims to know nothing about," Mr Watson said. "His departure creates serious questions over the Prime Minister's judgment and points to the need for a deeper investigation into the affairs of Rupert Murdoch's News Corp. It's a mark of the man that he would sneak out a statement on a Friday morning on a busy news day."
Union leaders are seeking urgent talks with power giant National Grid after an email sent by mistake raised fears of 400 job losses.
The GMB said the message made it clear the company was drawing up plans to cut jobs at its sites in Northampton and Hinckley.
A company spokesman said: "National Grid has the goal to be the most effective and efficient of Britain's local gas distribution networks.
"To help achieve this, National Grid has been looking at a number of different options for the future structure of its customers operations team based at Northampton and Hinckley.
"We are still developing final proposals and plan to present them to staff and their representatives shortly for consultation. Unfortunately, an unfinished draft document was emailed inadvertently to a number of employees.
"It would not be appropriate for us to comment on the contents of this working draft, save to say that no decisions have been made by National Grid about our final proposals.
"We are committed to meaningful consultation with our staff and their representatives."
GMB official Gary Smith said: "We don't believe there can be meaningful consultation. We know National Grid have already expressed a preference for the option they intend to pursue.
"We have a Government claiming the private sector will create thousands of new jobs as they decimate the public sector, and we have a Government regulator, Ofgem, driving companies to slash jobs.
"These job cuts will come at a time when the gas infrastructure is creaking with the number of gas escapes. We have had record numbers of gas leaks and we have a real worry about the impact of these cuts."
Former Harlequins physiotherapist Steph Brennan has won a High Court battle over the decision to strike him off for his part in the "Bloodgate" rugby controversy.
Lawyers for the top physio accused the Health Professions Council (HPC) of unlawfully imposing a "one strike and you are out for good" approach to his case.
They argued that his conduct had merited a sanction, but not one of such "gross severity".
On Friday, Mr Justice Ouseley, sitting at London's High Court, quashed the decision against him and ordered the HPC's conduct and competence committee to reconsider the case.
Brennan had been due to start work with the RFU as an England physio until his role in the systematic use of fake blood capsules during matches was exposed.
He helped fabricate a blood injury to winger Tom Williams during Harlequins' Heineken Cup quarter-final defeat by Leinster at Twickenham Stoop in April 2009.
He admitted five instances of faking blood injuries, the first of which happened during Harlequins' 2005/06 season.
On three occasions this was for player welfare, while Brennan said the fourth was to get an unnamed player in a key position on to the pitch following the sin-binning of a team-mate.
Stephen Brassington, for the HPC, argued that the striking-off order was not open to legal challenge.
He rejected accusations that panel members had failed to give adequate reasons and explain in their decision how they had dealt with Brennan's expressions of sorrow and remorse. He added: "His expressions of remorse and sorrow simply were too little too late."
Detectives have been granted extra time to question a 32-year-old man who was arrested on suspicion of the murder of landscape architect Joanna Yeates.
The suspect was detained in the early hours of Thursday after police investigating the 25-year-old's death uncovered fresh evidence.
Specialist search teams then moved into a neighbouring flat in the building where Miss Yeates lived at 44 Canynge Road, Clifton, Bristol. Dutch engineer Vincent Tabak, 32, is registered as living at the address with his girlfriend Tanja Morson.
An Avon and Somerset Police spokeswoman said: "Police have been granted extra time to question a 32-year-old man arrested on suspicion of the murder of Jo Yeates."
Police officers were seen at the offices of Tabak's employer, international consultancy Buro Happold, in Lower Bristol Road, Bath.
The firm, and several colleagues, referred all inquiries to Avon and Somerset Police. The force has not named the suspect in custody.
Workers erected scaffolding and green tarpaulin at the rear of the substantial converted Victorian property in Canynge Road on Thursday. The screen covers the entrance to flat two, where Mr Tabak lived, and the rear of Miss Yeates's rented home that she shared with her boyfriend Greg Reardon, 27.
Thursday's early-morning arrest is believed to have taken place at a converted Victorian terrace house in Aberdeen Road, Clifton. A forensic examination of house number 37 on the street is continuing.
At least two crime scene investigators were seen entering the building wearing white forensic suits. Six uniformed police officers were on the road, guarding the cordon which runs from Cotham Hill Road along to Hampton Hill Road.
Two police support vans pulled into the cordon and officers carried evidence bags, extendable step ladders and tools into the property.
Labour leader Ed Miliband has insisted there would be no change in his party's economic policy after he appointed Ed Balls to take over as shadow chancellor.
Amid suggestions Mr Balls may drag Labour to the left, Mr Miliband stressed that there would be no change to the party's economic direction.
Mr Balls, a fierce ally of former prime minister Gordon Brown, has questioned Labour's deficit reduction plans in the past, suggesting they should be less aggressive.
But Mr Miliband said: "Ed brings great expertise to this role and I look forward to working with him on the direction Alan and I have set out. Economic policy is unchanged. Actually Ed and I have similar views."
The Tories and Liberal Democrats said Mr Balls's appointment marked a return to strength for Mr Brown's old guard.
Conservative Party deputy chairman Michael Fallon said: "It beggars belief that Ed Balls has been appointed as shadow chancellor of the Exchequer. The man who is responsible for Britain's economic mess has returned. The Labour Party has learnt nothing and is now led entirely by Gordon Brown's old team."
Stephen Williams, co-chair of the Lib Dem Parliamentary Treasury Committee, accused Mr Balls of being a "deficit enthusiast".
Mr Johnson's abilities as shadow chancellor had been repeatedly called into doubt by opponents - something he helped encourage by saying he needed to buy a primer on economics. But Mr Miliband denied that Mr Johnson had been the wrong choice for shadow chancellor in the first place.
"No, Alan Johnson was the right person for the job. He's had to stand down for personal reasons, nothing to do with the job," he said.
A Labour reshuffle will see Yvette Cooper, Mr Balls' wife, take over from him as shadow home secretary. Douglas Alexander becomes shadow foreign secretary, Liam Byrne will be shadow work and pensions secretary and Ms Jowell takes over as shadow Cabinet Office minister.
Murder squad detectives are investigating what sparked a knife fight that left one teenager dead and three with stab wounds.
The 15-year-old schoolboy, named locally as Kasey Gordon, suffered fatal injuries during a violent scuffle in Tottenham, north London.
He was making his way home from Park View Academy when the fight erupted outside a takeaway in West Green Road at 3.45pm on Thursday.
Three other teenagers, aged 14, 15 and 16, were taken to hospital by ambulance with non-life-threatening injuries.
Witnesses said the young men could be seen throwing kicks and punches at an older man armed with a knife.
Police arrested a 33-year-old man at the scene and he is being held in custody at a north London police station.
One line of inquiry is that the victim confronted the suspect over a young girl before a fight broke out and his friends joined in to defend him. It is understood the man in custody is suspected of suffering from a mental illness.
A flood of online tributes have been paid to Kasey as word spread of the schoolboy's death. Writing on Twitter, Ama Rock said the stabbing was an "awful reality check" and the victim was a "good person".
She added: "Today I lost a precious friend. I don't know how to grieve. This is just an awful shock." Johelle Tapper said: "RIP Kasey Gordon. You'll be so so missed. I can't believe you're gone. I'm feeling it."
At the scene of the attack a police cordon spanned a long stretch of West Green Road and traffic was being diverted. A number of shops were forced to close, including a supermarket, a travel agent, a bar and a laundrette. A bunch of yellow roses laid at the scene had a message which read: "To my bro Kasey. You didn't have time to grow into a man! I loved you! I still love you! God bless you. RIP. From your sister Dione."
Mortgage advances sunk to their lowest level for a decade during 2010 as the lending drought intensified.
A total of just £136.3 billion was lent during the year, the lowest level since 2000, and 5% below 2009's figure, which was the lowest total for nine years, according to the Council of Mortgage Lenders (CML).
The group, which is predicting total advances of around £135 billion for 2011, warned that consumer demand could be even weaker than previously expected if inflationary pressures led to an early rise in interest rates.
Advances during the final month of the year were also low, with just £11 billion lent in December, the most subdued figure for the month since 2000 and 6% down on November's total. It was also the fourth consecutive month during which lending levels had been the lowest for the month in question for a decade.
But while December is traditionally a quiet month for the mortgage market, there are few signs that lending levels will pick up during January.
The Bank of England's Trends in Lending report showed that the number of mortgages approved for house purchase by the major lenders had dropped to just 40,000 during the month, the lowest level since March 2009 and down from 45,000 in November.
The number of homes changing hands also fell during December, with just 75,000 properties sold for more than £40,000, down from 77,000 in November, according to figures from HM Revenue & Customs (HMRC).
CML economist Peter Charles said: "Money market rates have recently moved higher in anticipation of a rise in base rate and some lenders have recently reflected these increases in their product pricing.
"Against this backdrop, consumer demand may be weaker than we would otherwise have expected. Higher interest rates will also hit the budgets of existing borrowers, although the expected modest rises in base rate will result in a relatively small proportionate rise in monthly payments for most mortgage holders."
He added that the group did not think this would have a big impact on the number of people who struggled to keep up with their mortgage, and it did not anticipate revising its current arrears forecast.
British Airways is facing the threat of a fresh wave of strikes by its cabin crew after they voted heavily in favour of more walkouts in their bitter dispute with the airline.
Unite said its members voted by 5,751 to 1,579 to take further industrial action following 22 days of strikes last year which cost the airline more than £150 million.
The union pulled back from naming strike dates and will have to give seven days' notice of any action.
Unite's new leader, Len McCluskey, said: "For the fourth time in 13 months, British Airways cabin crew have voted overwhelmingly in support of their union and expressed their dissatisfaction with management behaviour. Indeed, the turnout and the majority on this occasion are much greater than in the last ballot.
"Surely BA management must now wake up and listen to the voice of their skilled and dedicated employees.
"This dispute will be resolved by negotiation, not litigation or confrontation, and it is to negotiation that BA management should now apply itself. We are ready."
News of the voting figures was revealed as the company completed its merger with Spanish carrier Iberia to create a new holding company, International Consolidated Airlines Group (IAG).
Unite said the turnout in the ballot was 75%, while the majority of those voting for industrial action was 78.5%. The union balloted 10,220 cabin crew staff, 7,330 of whom returned valid papers.
Officials said the size of the turnout and the big majority in favour of industrial action showed the continuing anger and determination of the workers.
Speaking after a meeting of more than 1,000 cabin crew last week, Mr McCluskey said: "If the company believes they have broken the spirit of the cabin crew, they should have been at this meeting to witness the anger of people."
The extradition of an alleged al Qaida operative accused of planning to bomb UK and US targets has been approved.
Prosecutors claim Abid Naseer was part of an al Qaida cell operating in the UK in which the participants planned a terrorist attack in Manchester.
The US authorities are seeking to have him extradited and District Judge Quentin Purdy approved the application in a hearing at City of Westminster Magistrates' Court in central London but said the case will now go to the Home Secretary.
Ben Cooper, representing Naseer, said his client would appeal against the decision.
Prosecutors in the US want Naseer to stand trial on allegations of providing material support to al Qaida, conspiring to provide material support to al Qaida and conspiracy to use a destructive device.
In his ruling, the judge read part of the US extradition application, which stated: "The evidence at trial will establish that Naseer specifically provided personnel - himself and others - to act under the direction and control of al Qaida."
The allegations stem from his alleged involvement between September 2008 and April 2009 in an al Qaida cell operating in the UK and which conspired to conduct a terror attack between April 15 and 20, 2009, in Manchester city centre, most likely in St Ann's Square or the Arndale shopping centre.
Naseer, a Pakistani national, was one of 12 men arrested in counter-terrorism raids in north-west England over a suspected bomb plot. The 24-year-old was released without charge and in May won the right to stay in Britain when a judge ruled his safety could not be guaranteed if he returned to Pakistan.
In Friday's extradition hearing, the judge said Naseer's representatives had argued he would be at risk of torture and death if he was acquitted in the US and returned to Pakistan. But the judge said he was "not of the view the US judicial system is indifferent in providing appropriate intervention".
He added: "I must proceed on the firm footing, absent very cogent direct evidence, the rule of law and due process exists for all persons within the jurisdiction of the US courts, including Abid Naseer. Accordingly I reject this challenge to extradition."
Downing Street communications chief Andy Coulson has quit after admitting the News of the World phone-hacking row was making his job impossible.
In a personal statement issued by Number 10, Mr Coulson said the drip-drip of claims about illegal eavesdropping under his editorship meant he could not "give the 110% needed".
"I stand by what I've said about those events but when the spokesman needs a spokesman it's time to move on," he added.
The Prime Minister said he was "very sorry" that Mr Coulson felt "compelled" to go after months of intense pressure, insisting he was being "punished for the same offence twice".
But critics insisted the resignation was "long overdue", and questioned Mr Cameron's judgment in recruiting the former journalist in the first place.
The timing also sparked accusations that the Government was trying to "bury bad news" while Tony Blair was appearing at the Iraq Inquiry, and with the furore over shadow chancellor Alan Johnson's departure still raging.
It is understood Mr Coulson informed the Prime Minister of his intention to leave on Wednesday evening. No decision has yet been taken on a replacement.
Mr Coulson resigned as editor of the News of the World in 2007 after the paper's former royal editor Clive Goodman and private investigator Glenn Mulcaire were jailed for phone hacking.
Although he accepted ultimate responsibility for the illegal activities, he has always denied knowing they were taking place. A Scotland Yard investigation resulted in no further charges.
But a number of public figures are still taking civil legal action against the newspaper, and documents disclosed in those cases have sparked fresh developments. The Crown Prosecution Service (CPS) has asked a senior QC to "comprehensively" re-examine material amassed as part of the original inquiry and any new evidence.
The high street suffered its worst December on record last month as retailers battled with Arctic weather conditions and shoppers shunned higher prices.
Retail sales volumes declined 0.8% month-on-month - the lowest reading since records began in 1988, the Office for National Statistics (ONS) said.
Food stores saw a 3.4% drop in year-on-year sales volumes - another record plunge - as prices soared 5%, the ONS added.
Friday's official figures offer a definitive view on the impact the adverse weather and economic climate had on Christmas sales, as varied trading reports from retailers such as Marks & Spencer, Next and HMV have muddied the overall picture in the sector.
High Street giant M&S and British department store favourite John Lewis reported strong sales growth earlier this month, while fashion chain Next and entertainment group HMV blamed the severe weather for a slump in sales.
In the supermarket industry, Sainsbury's led the way, with 3.6% like-for-like sales growth in the 14 weeks to January 8, while UK number one Tesco disappointed with 0.6% same-store sales growth.
But the biggest drop within overall retail sales volumes came from food, which declined 0.9% month-on-month, the ONS said. Soaring food prices, reflected within the rising rate of Consumer Price Index inflation which stands at 3.7%, were "not helping" food retailers, the ONS said.
But companies noted a change in shoppers' behaviour during the severe weather spell - consumers were turning to local stores to buy small volumes, rather than heading to out-of-town behemoths for weekly or monthly shops.
The ONS said internet sales continued to strengthen - now constituting a record 10.6% of all retail sales - as £770 million was spent online in December. But even internet food sales were hit by the weather, the ONS added, as retailers noted a tailing-off of sales after December 13, when reports of delayed and failed deliveries started to surface. Household goods stores also performed badly, matching the 0.9% month-on-month decline seen in food.
The ONS said there was no evidence to suggest consumers were snapping up big-ticket items, such as televisions or fridges, ahead of January's VAT hike, as electrical appliances declined in December. Department stores did weather the storm, and were up 0.3% month on month, with the new Xbox Kinect selling well across the sector. The ONS noted a rise in sales volumes at sport equipment stores. The volume of retail sales was also flat year-on-year, once again a record low, the ONS said. The value of retail sales rose 2% year-on-year, but declined 0.6% month-on-month.
Police have warned parents and children of a Facebook scam involving fake modelling agencies.
Leicestershire Constabulary said the scam, using a number of social networking sites, appears to involve the fake agencies encouraging children to pose in their underwear.
The force said it seemed a number of false Facebook profiles had been set up posing as modelling agencies, even using agency logos to appear genuine.
They then contact children via email asking them if they are interested in modelling. After a series of emails, the children are pressurised into sending photographs of themselves in their underwear.
The force said it was investigating reports from concerned parents. The modelling agencies appear to be Leicester-based, the force said. The most recent used is the Pat Keeling Modelling Agency.
Police are working with Facebook for this particular site to be removed but new sites may continue to be set up. Pat Keeling Modelling Agency does not have a Facebook site and has pointed this out on its own genuine website.
Detective Sergeant Ed Jones, from Leicestershire Constabulary's paedophile and online investigation team, said: "Do not be fooled by these emails, a reputable modelling agency would never approach you in this way. Do not post pictures online of yourself posing in your underwear and if you are under 18 these photographs may be indecent under UK law.
"You have no control when posting photos on the internet where they may end up and they could appear on the internet forever. If you do find yourself in a situation of this nature online you can use the CEOP Report Abuse Button which is now available as an app on Facebook or contact police."
A Facebook spokeswoman confirmed staff are working in partnership with the police in Leicestershire and added: "The safety of the people who use Facebook is our top priority. Unfortunately there will always be malicious people who try to fool people, both online and offline. Just as you should check if someone 'scouting' you in a shopping centre really is a legitimate model agent you should also use the same caution on Facebook.
"We encourage people using Facebook to think carefully before they add a new friend and check that the person is who they claim to be and not to add or accept friend requests from people they don't know. It's against Facebook's rules to use a fake name or operate under a false identity. We provide our users with the tools to report anyone they think is doing this via report links on every page of our site and we strongly recommend their use."
