UK industrial output sees surprise fall in April

UK industrial output fell unexpectedly in April, but economists have said the figures should not be a cause for concern. Output fell by 0.4% compared with March, the Office for National Statistics (ONS) said, whereas a rise of 0.4% had been forecast.

It was the first fall in monthly production since January. Experts said the drop should be seen as a correction after a particularly strong jump in output in March of 2%. Over the year, output is still rising, as levels were 2.1% higher than in April 2009.

Overall trend

Manufacturing output also fell by 0.4% on the month, but was up 3.4% year-on-year. "The volatile monthly movements in these figures are somewhat at odds with more positive survey indicators though they conceal a solid year-on-year increase in output," said Lee Hopley, chief economist at the EEF manufacturers' organisation.

Malcolm Barr at JP Morgan said: "I think it is fair to say, relative to people's expectations going into the report, the decline in headline production and manufacturing output is probably a little bit of a surprise and a bit of a disappointment. "However I don't think it really does a lot to damage the perception that the trend is towards ongoing increases in industrial output."

READ MORE - UK industrial output sees surprise fall in April

China's inflation rate rises but economic output slows

The inflation rate in China has surpassed the government's 3% target, creating a policy dilemma for Beijing. The annual rate of consumer price inflation rose to 3.1% in May, the National Bureau of Statistics said. More importantly, producer price inflation - the cost of goods at the factory gate - hit 7.1%.

But industrial output slowed, leaving the Chinese authorities with the tough decision as to whether they should raise currently low interest rates. Output from the country's millions of factories and workshops rose 16.5% in May from a year earlier, down from a growth rate of 17.8% in April.Urban fixed investment - a measure of construction of houses and factories - also slowed in May, while bank lending fell 17% versus the previous month.

A spokesman for the statistics bureau admitted that the pressure on inflation was "rather big", but said prices would be controlled. Higher food and housing prices were mainly to blame for the acceleration in inflation.

'Bubble' economy

The high inflation figures raise two concerns, according to Michael Pettis, finance professor at Peking University's Guanghua School of Management. "The first, well-noted concern is whether we are on a rising inflation path," he told the BBC, explaining that the jump in producer prices may feed into higher consumer prices later. What is talked about less is that real interest rates are going down," he added. The "real" interest rate is the difference between the actual interest rate and the inflation rate.

CHINESE DATA IN FULL

Change vs same period in 2009:

	May	April
Consumer prices	+3.1%	+2.8%
Producer prices	+7.1%	+5.9%
Industrial output	+16.5%	+17.8%
Retail sales	+18.7%	+18.5%

	Year to May	Year to April
Urban fixed investment	+25.9%	+26.1%

Inflation is on the rise, but deposit rates and lending rates are being held artificially low by the Chinese authorities. This means that Chinese households find the value of their savings eroded by inflation, while speculators and state-owned companies are able to borrow extremely cheaply.

Mr Pettis estimates that low interest rates in China transfer 5%-10% of GDP from households to borrowers each year. He also thinks that cheap borrowing is creating a bubble economy, with borrowers making bad investment decisions and creating overcapacity.

"We have a bubble in real estate. We have a bubble in infrastructure. We have a bubble in manufacturing capacity," he said. "Even Chinese art prices are the highest since Japan in the 1990s." But Beijing will be keen to move very slowly on interest rates, for fear that a sharp rise in rates could burst the bubble and plunge the economy into recession.

Yuan pressure

The latest figures have been released as China comes under renewed pressure from the US to revalue its currency, the yuan. The yuan has been pegged to the US dollar since 2008. US politicians say that China keeps its currency artificially cheap, and this gives it an unfair trade advantage. Trade data released on Thursday showed that Chinese exports in May had jumped by nearly 50% from a year ago, while the US trade deficit widened further in April.

US Treasury Secretary Timothy Geithner told a congressional committee on Thursday that distortions caused by China's currency stance were "an impediment to the global rebalancing we need". Meanwhile, Congress is preparing a bill that will impose targeted trade sanctions on China in retaliation for its yuan policy.

Trade question

"If the US gets tougher on China, it will be a green light for everyone else to adopt beggar-thy-neighbour policies," says Mr Pettis. He says that trade relations are being brought to a head much more quickly than expected by events in Europe. With the EU now committed to cutting budget deficits, and the euro falling rapidly, Europe is set to start running a big trade surplus in the coming months.

But if Europe and China both want to run big trade surpluses, that begs the question of who will run the necessary trade deficit and buy their exports. The noises coming from the US suggest that Washington is no longer willing to play the role of "consumer of last resort" that it did during the last boom.

"Europe is forcing a rapid adjustment in global [trade] imbalances," says Mr Pettis. "China needs its adjustment to go slow. But the question is does the US have the political willingness for this any more?"

READ MORE - China's inflation rate rises but economic output slows

US consumer data for May give mixed signals for economy

A surprise drop in US retail sales in May was followed by a jump in June consumer confidence. Sales were down 1.2% compared with April - the first drop in eight months. Economists had expected a 0.4% rise. But a consumer confidence index rose to 75.5 in June versus an expected 74.5.

The two data releases came in quick succession, and puzzled stock markets, which fell on the sales data, then bounced right back after the consumer report was announced. The Dow Jones Index had opened 0.8% down, and European markets giving up gains from a morning rally, after the retail sales data were announced by the Commerce Department. But shortly after New York trading opened, Reuters and the University of Michigan produced their latest consumer confidence report, showing the highest level since 2008.

Recovery fears
Despite the monthly fall in retail sales in the Commerce Department data, total sales in May were still 6.9% higher than the recession lows of a year ago. However they remain well down on pre-recession levels. Car and gasoline sales led the monthly falls, down 1.7% and 3.3% respectively, although the lower value of gasoline sales was largely explained by lower fuel prices.

Consumer spending contributes 70% of demand in the US economy, making it a key driver of growth. The news comes in the wake of weak US jobs data for May released last Friday. Markets fear that with US households still heavily indebted, the recovery in consumer spending may prove to be anaemic.

READ MORE - US consumer data for May give mixed signals for economy

Japan PM Naoto Kan warns of 'collapse' under debt pile

Japan is at "risk of collapse" under its huge debt mountain, the country's new prime minister has said. Naoto Kan, in his first major speech since taking over, said Japan needed a financial restructuring to avert a Greece-style crisis. "Our country's outstanding public debt is huge... our public finances have become the worst of any developed country," he said.

After years of borrowing, Japan's debt is twice its gross domestic product. "It is difficult to continue our fiscal policies by heavily relying on the issuance of government bonds," said Mr Kan, Japan's former finance minister. "Like the confusion in the eurozone triggered by Greece, there is a risk of collapse if we leave the increase of the public debt untouched and then lose the trust of the bond markets," he said.

No Greece
Despite the prime minister's hair-raising words, markets did not bat an eyelid, with the Japanese yen, the Nikkei stock market index and Japanese government bonds unmoved. "Fiscal austerity measures are long overdue," said Chris Scicluna, deputy head of economics at Daiwa Capital Markets in London. He forecasts that the government's budget deficit will be 8% of GDP this year, a number that Mr Kan has promised to reduce to zero by the end of the decade.

However, Mr Scicluna said the government does not face any immediate fiscal crisis, unlike some European countries, and probably will not start tackling its budget deficit for at least another year or two. Unlike Greece or Spain, Japan is a net lender to the rest of the world, to the tune of 2.5% of its GDP last year.

Cheap borrowing
The Japanese government is effectively the only borrower in Japan, and raises all of the money it needs from the savings of its own citizens. Some 95% of the government's debts are held by Japanese investors, and the government can currently borrow for 30 years at a mere 2% interest rate. But Mr Scicluna says Japan does have serious medium-term problems related to its ageing population.

As more and more Japanese citizens retire in the next few years, they are likely to start selling their government bonds to pay for their retirements. This means that Japan will need to start borrowing from the rest of the world, and the government may have a hard time convincing foreign lenders to let it borrow at such a low interest rate.

Tax reform
Mr Kan did not detail the fiscal changes he may impose to revive Japan's economy after years to stagnation. But in the past Mr Kan has advocated increasing Japan's sales tax, a move that would be unpopular. He said: "It is unavoidable to launch a full reform of the tax system. If we maintain the current level of issuance of new bonds, outstanding debt will surpass 200% of GDP in a few years.

"It's been 20 years since the collapse of the bubble economy in the early 1990s. Because the Japanese economy had been in the doldrums, people have lost the trust they had and fear the uncertainty of the future," he said.

Who will spend?
The Japanese austerity plans may not be welcome elsewhere in the world. Over the weekend, US Treasury Secretary Timothy Geithner called on surplus countries - like Japan, Germany and China - to do more to increase spending. Yet Germany has announced plans to cut its budget deficit by 3% of GDP over the next four years, while China's trade surplus has grown even further, according to data for May. With Japan also now looking to wield the fiscal axe, some may wonder who is actually going to spend money in the world economy.

READ MORE - Japan PM Naoto Kan warns of 'collapse' under debt pile

UK business confidence sees 'record drop'

Business confidence among UK firms has seen its biggest drop since 1995 due to the government's rhetoric on spending cuts, a survey suggests. The Business Trends survey from accountants BDO fell to 97 in May from 103.3 the previous month - the largest drop since the survey began.

BDO said economic growth forecasts for this year and next now need to be revised down sharply. The new Office of Budget Responsibility (OBR) will publish its forecasts later. The OBR was formed in May 2010 to make an independent assessment of the public finances and the economy.

BDO's survey is compiled by the Centre for Economics and Business Research and covers 11,000 companies from a range of industries. Despite the fall in confidence, it also found that order book growth was strong in May.

Slower growth
"The government has understandably been keen to emphasise the extent of the sacrifices that we all will need to make as public borrowing it brought under control," said Peter Hemington, partner with the firm. "But there is a significant risk that the rhetoric has begun to impact on business confidence, and fears of the economic impact of spending cuts may be causing businesses to rein back on growth plans."

The accountancy firm forecasts that economic growth will remain below an annualised 1% in the final three month of this year. The annualised rate takes growth over a three-month period and works out what it would be if it continued over a full year. Government forecasts for growth in 2011 should now be between 1.5% and 2.5%, well below the 3% to 3.5% that the previous government estimated, the firm said.

"Freefalling business confidence paves the way for downwards growth revision," it concluded. Many economists also believe that the previous chancellor, Alistair Darling, was too optimistic in his growth forecasts. However, recent government pronouncements on the need to make drastic cuts, BDO says, could lead to even lower growth.

Emergency budget
Last week, Prime Minister David Cameron warned that dealing with the deficit would be "unavoidably tough" and affect "our whole way of life". Chancellor George Osborne has identified £6.2bn of savings and outlined cuts to quangos, spending on consultancy and big IT projects, and a civil service recruitment freeze.

More detail on the cuts will be announced next Tuesday in an emergency budget. The UK, along with other European economies, is looking to cut sharply its budget deficit, which grew sharply after government intervention during the financial crisis. Countries with high deficits, most notably Greece, have to pay higher rates of interest to borrow from international investors to service their debt, which serves only to compound the problem.

READ MORE - UK business confidence sees 'record drop'

Japan manufacturers 'more upbeat'

Optimism among big Japanese manufacturers has grown in the past three months, a study said. The results suggested large manufacturers had shaken off fears of the euro debt crisis and the strengthening yen, according to analysts. However the outlook for the Japanese economy remains uncertain.

Last week Japan's new prime minister said the country was at "risk of collapse" under its huge debts. Naoto Kan, in his first major speech since taking over, said Japan needed a financial restructuring to avert a Greece-style crisis. Later this week, Japan's central bank is expected to announce a new loan scheme aimed at redirecting money to industries with growth potential.

Asia demand
The business survey index (BSI) of sentiment at large producers rose to 10 in the April-to-June period, from 4.3 in the previous quarter, a joint survey by the Ministry of Finance and the Cabinet Office's Economic and Social Research Institute showed. The index measures the percentage of firms that expect the business environment to improve from the previous quarter, minus the percentage that expect it to worsen.

Firms also raised their capital expenditure plans, which observers said was a sign that corporations were showing greater appetite to spend. "Sentiment is gradually improving both for underlying conditions and the outlook," said Takeshi Minami, chief economist for the Norinchukin Research Institute.

"The euro's decline triggered by the Greek debt crisis doesn't seem to have had much impact, at least for now." Strong demand from Asia has meant that, so far at least, demand for Japanese exports has recovered despite weakness in other markets such as Europe and the US.

READ MORE - Japan manufacturers 'more upbeat'

India inflation rate rises to two year high

Indian inflation has risen to a two-year-high, raising the possibility of interest rate rises. The wholesale price index rose to 10.16% in May, the highest since 2008. Rising food and fuel costs have pushed the rate well above forecasts, which were nearer 9%. The government says prices will come down soon.

The rise in the inflation rate comes after India recorded its fastest growth in manufacturing in at least 15 years in April. Unlike most countries, India calculates inflation on the wholesale price of a basket of 435 basic goods, which means actual prices paid by the consumer are much higher.

READ MORE - India inflation rate rises to two year high

Germany's Merkel wary of French EU vision

The French and German leaders are meeting in Berlin to try to narrow their differences over economic policy ahead of an EU summit on Thursday. Chancellor Angela Merkel was initially expected to meet French President Nicolas Sarkozy last week. The delay fuelled speculation about a big rift.

Correspondents say France is keen to launch regular summits of eurozone leaders, but Germany is wary of that. Germany wants EU countries that pile up debts to face sanctions. EU leaders are anxious to avoid having to rescue another member state, following the emergency bail-out for debt-laden Greece. There are continuing fears that the Greek crisis could undermine other heavily indebted eurozone countries. Governments across the EU face the challenge of imposing unpopular spending cuts while not stifling growth.

Budget co-ordination
On Thursday the President of the European Council, Herman van Rompuy, will brief EU leaders on the work of an EU task force on economic governance, which he is chairing. In Berlin last week he said that Mrs Merkel "shares the principal directions to strengthen budgetary discipline through the [EU] Stability Pact and to reduce the divergences in competitiveness between the member states".

He appeared to distance himself from the French idea of having a new "secretariat" to co-ordinate economic policy in the 16-nation eurozone. "We do not need new institutions to meet our goals. We need more effectiveness," Mr Van Rompuy said, stressing the need for "preventive action to avoid countries accumulating excessive deficits". "We will be tougher in correcting deficits with more rules-based and semi-automatic sanctions."

Data transparency
In an interview on BBC Radio 4's Today programme, French Finance Minister Christine Lagarde said "we must play by the rules and the rules have to be changed". The UK and some other member states are sceptical about an EU plan to subject national budgets to EU "peer review" before they are debated by national parliaments.

Ms Lagarde played down such differences on Monday. She said there was a need to "share and agree on macro-economic data and forecasts - I don't see that as a major obstacle". Mrs Merkel and Mr Sarkozy have jointly urged the European Commission to speed up measures to tighten financial regulation. They called for an EU-wide ban on naked short-selling - a type of high-risk trading - and tight controls on credit default swaps.

However the Commission appears to have rejected that demand in a draft od new laws presented on Monday, Reuters reported. A new EU strategy for jobs and growth - called the 2020 strategy - will also be discussed at the EU summit in Brussels.

READ MORE - Germany's Merkel wary of French EU vision

Oil price jumps on recovery hopes

The price of oil has jumped sharply to above $75 a barrel as rising stock markets helped to boost confidence in the global economic recovery. US light crude rose by more than $2, or 3%, a barrel, to $75.90, before slipping slightly. Brent was up $1.8 a barrel to $76.13, before falling back. Strong eurozone industrial production figures helped to push stocks higher in Europe and, initially, in the US.

But US stocks fell back after Moody's rating agency downgraded Greek debt. This caused the oil price to lose some of its earlier gains. The eurozone data also helped push the euro up 2 cents against the dollar, to $1.2252. Against the pound, it was slightly stronger at 83.108 pence.

'Price rebound'

Eurozone industrial production rose by 0.8% in April, official figures showed, a much stronger rise than had been expected. This helped to push leading French shares up almost 2%, German shares up more than 1% and UK shares up 0.7%. In morning trading, leading US shares also rose by 1%, before slipping after Moody's, one of the three main international credit rating agencies, downgraded Greek government debt.

They ended the day down 20 points, or 0.2%, at 10,191. Analysts said the oil price could keep rising as supply falls in the coming months. This is in part due to seasonal demand and in part due to measures introduced in the US in response to the recent BP oil spill in the Gulf of Mexico, they said. "With the US drilling ban likely to hit supplies from the third quarter onwards and demand expected to rise seasonally between now and August, we feel that seasonality and fundamentals are moving towards a price rebound," said Lawrence Eagles at JP Morgan.

READ MORE - Oil price jumps on recovery hopes

Greek government bonds downgraded by Moody's

Greek government bonds have been downgraded four notches to "junk" status by Moody's credit rating agency. The agency said there was still "considerable uncertainty" surrounding the impact of measures introduced to cut the country's high budget deficit. Greece is looking to slash its deficit from 14% of GDP to 3% by 2014.

But Moody's said that the outlook on Greece's rating is now stable, and that it would likely remain unchanged over the next 12 to 18 months. Despite the downgrade from A3 to Ba1, the agency said the risk of Greece defaulting on its debt was low. In April, Standard & Poor's, one the three main international credit rating agencies alongside Moody's and Fitch, also downgraded Greek government debt to junk status.

Auditors' inspection

Earlier, international auditors began sifting through Greece's finances to assess progress on its draconian austerity measures. The auditors will spend a week assessing progress, talking to government ministers, officials and independent experts in the country. The European Union (EU) and International Monetary Fund (IMF) experts were sent to Greece under the terms of an aid package to save Greece from defaulting on its debts.

Last month, the EU, IMF and European Central Bank pledged 110bn euros ($134bn; £91bn) to help avert financial collapse in Greece. The money was conditional on Greece making substantial cuts to its deficit. On Monday, Greek finance minister George Papaconstantinou said that the recovery plan was already ahead of schedule.

According to official figures, the deficit for January to May was 8.9bn euros compared with 14.6bn euros over the same period in 2009. Under the first phase of its recovery plan, Greece must get the deficit down to 8.1% by the end of this year. Last week, ECB president Jean-Claude Trichet praised the progress Greece had made towards reducing the deficit. Meanwhile, the Bank of Italy said on Monday that the country's public debt reached a record 1.8 trillion euros in April.

Sovereign debt worry

Last year, Italy's public debt - the sum of all borrowing - reached 115.8% of GDP, and is predicted to rise to 118.4% this year. Prime Minister Silvio Berlusconi has announced an austerity package designed to bring the deficit down from the current 5.3% to 2.7% by 2012. The announcement underlines how sovereign debt worries have spread well beyond Greece to other European countries.

Also on Monday, the government in heavily indebted Spain was in talks with opposition parties to try to win support for radical changes to the employment laws. Spain, with a jobless rate approaching 20%, faces a wave of strikes. Last month, Jose Luis Rodriguez Zapatero's government narrowly avoided a crisis when the legislature passed a 15bn-euro deficit reduction programme by just one vote.

READ MORE - Greek government bonds downgraded by Moody's

Fiscal watchdog downgrades UK growth forecast

The new independent fiscal watchdog has downgraded the economic growth projections for the UK economy. The Office for Budget Responsibility (OBR) predicts the economy will expand 2.6% in 2011, down from the 3% to 3.5% estimate given in Labour's last Budget. The lower figure will likely increase the impetus of the coalition government to cut public spending, as lower growth means fewer tax revenues.

Yet the OBR also says the deficit and debt will not be as bad as forecast. It predicts that the UK's public deficit will fall, down to 10.5% of GDP in the 2010-11 financial year, from the 11.1% estimated by Labour. For overall net government debt - the sum of all borrowing - the OBR estimates this will decline to 62.2% of GDP in 2010-11 from the previous estimate of 63.6%.

Former Labour Chancellor Alistair Darling said the OBR figures "show that borrowing will be less than I forecast, so the government doesn't have the excuse to raise VAT, which it is planning". George Osborne: "Economic situation is worse than we thought". He added that if the government cuts public spending too aggressively it could send the UK into a double-dip recession.

However, the OBR says the structural deficit - the part of the deficit that is not automatically reduced by economic growth - will widen from Labour's prediction of 7.3% of GDP in 2010-11 to 8%. This is the most difficult part of the deficit to tackle, and Chancellor George Osborne said the OBR figures "couldn't be clearer". "It's damning evidence that the mess the previous Government left behind is even bigger than we thought," he said.

The chancellor told the House of Commons that his government had "inherited one of the largest budget deficits in the world and a larger structural deficit than we thought. "We can only speculate as to why the government published rosy forecasts for a trampoline recovery weeks before the general election," he said.

'No permanent damage'

Mr Osborne is due to unveil an emergency Budget on Tuesday of next week, and has pledged to cut public spending to reduce the deficit. The OBR will issue a new set of figures at the Budget, taking into account the coalition government's new tax and spending plans.

Despite downgrading the growth figures, OBR chairman Sir Alan Budd said he did not think the recession had caused "permanent damage" to the economy. He added that the changes to the forecasts were "all within the normal range of uncertainty".

BORROWING FORECASTS (% OF GDP)
YEAR	MARCH BUDGET	OFFICE OF BUDGET RESPONSIBILITY
2010/11	11.1	10.5
2011/12	8.5	8.3
2012/13	6.8	6.6
2013/14	5.2	5.0
2014/15	4.0	3.9
Source: OBR

'Death spiral'

Deputy Prime Minister Nick Clegg said that the government must act now to cut public debt, or risk losing its ability to protect people in need. He argued that cutting spending is the "progressive" option which will allow the coalition to bring down the deficit in a way that delivers fairness. "We are going to see through the deficit reduction that is an absolute prerequisite for turning Britain's fortunes around," he said.

Sir Alan Budd: 'There is a recovery'

However, one senior economist, David Blanchflower, a former member of the Bank of England's Monetary Policy Committee, shared Mr Darling's concerns about the risk of a double-dip recession. He told the BBC's Today programme that cutting public spending could risk sending the UK economy into a "death spiral". "I think the danger is a phrase that Ben Bernanke used, it is called the death spiral," he said.

Mr Blanchflower's fear is that a big cut in public spending will hurt the private sector. "There is no evidence that the government is going to create private demand, this could push us back into double-dip recession," he said.

'Huge problem'

The Office for Budget Responsibility (OBR) was set up by the Conservatives last December, when they were still in opposition. It is responsible for providing an independent assessment of the state of the public finances.

The British Chambers of Commerce (BCC) gave the first OBR figures a cautious welcome. "The new forecasts are more realistic than those in the March budget, but the growth expectations are still overly optimistic," said BCC chief economist David Kern. "For the world economy, the expectation that growth will return fairly rapidly to the levels seen before the recession is too rosy - especially given the current eurozone problems and worrying signs that the US recovery may be stalling."

Prime Minister David Cameron warned last week the OBR figures would "show the scale of the problem we are in today". He added that dealing with the deficit - which totalled £156bn in the last financial year - would affect "our whole way of life".

READ MORE - Fiscal watchdog downgrades UK growth forecast

Harry Potter star Grint says new film was 'quite scary'

Harry Potter actor Rupert Grint has admitted that he found the idea of working on another movie set "scary" after working on the blockbuster series for so long. The 21-year-old was talking ahead of the release of new comedy Wild Target, which he stars in with Bill Nighy and Emily Blunt.

He told Newsbeat: "It was quite an intimidating prospect to be on another set really, away from a crew that I'd grown up with. "To be out of that bubble was quite scary." As for the Harry Potter films: "We're kind of approaching the end now. We're going to have to face the real world.

"It's quite a weird thought. I never imagined what it would feel like to finish." Rupert's co-star Daniel Radcliffe, who plays Harry Potter in the wizard movies, admitted on Sunday (13 June) that he was also finding the end of filming emotional.

'Crying a lot'

He said: "It was pretty devastating to be honest. It was really, really sad. "Me, Rupert and Emma were all just... and most of the crew, you know, crying quite a lot."

Daniel admitted on Sunday that the cast cried at the end of filming

You'd think that after all those years playing Ron Weasley, Rupert might at least have been able to gather up a couple of souvenirs from the set, but he admits he's never been that successful. He said: "I took the golden egg that was in the fourth film - a dragon egg. Apparently it was worth a few thousand dollars. "I put it in a pillowcase, it was with James Oliver, it was a joint effort. But they tracked it down and got it off us. "A wand I think would be nice to keep. They don't really like things going away from the set."

Famous fans

With the end of filming fast approaching Rupert says there are plans for a massive party for the 2,000-odd people involved with the movies. And as the hugely successful franchise drew to a close, loads of famous faces managed to wing tours of the set - including Sarah Jessica Parker, Kate Winslet, and even US President Barack Obama's wife Michelle.

Rupert Grint with Daniel Radcliffe and Emma Watson when it all began

Rupert said: "She was great. It was one of her daughter's birthdays and they did this big kind of ceremony and we had loads of cupcakes. "It was quite a surreal day." Kaiser Chiefs are also huge fans of the film - especially Ricky - and they earnt themselves background parts in the last film.

"At the beginning they were really excited. I think they were there for like four days in the end. "They were literally just in the back standing by some lifts in the Ministry of Magic. They got over it pretty quickly - it wore off," Rupert said. With Wild Target already under his belt, Rupert might want to chill out and enjoy some of the small fortune he's earnt.

A recent list rated him as the fourth richest actor under 30 living in the UK, which he described as "cool", even though he says he's never been really extravagant. He added: "I'm never really that aware of money because I've never really been that involved with it because my Dad's always dealt with it." So what's next for Rupert, apart from trying to master the banjo and the accordion?

He said: "It'll be nice to have to a bit of free time as well - a bit of freedom because it has been constant working since I was 10. "So it'll be nice to just stop and chill out a bit." Wild Target is released in UK cinemas on 18 June, while Harry Potter and the Deathly Hallows: Part I is out in the UK on 19 November.

READ MORE - Harry Potter star Grint says new film was 'quite scary'

Amedeo Modigliani sculpture sells for 43.2m euros

A sculpted limestone head by Amedeo Modigliani has sold for 43.2m euros (£35.8m) at Christie's auction house in Paris - a record for the artist. The piece, created between 1910 and 1912 and depicting an elongated face with almond-shaped eyes, was bought by an anonymous telephone bidder.

The Italian artist switched from sculpture to painting later in his life, partly because of ill health. The sale was also a record for art sold at auction in France, Christie's said. The 65cm head was first shown at the Salon d'Automne exhibition in Paris in 1912.

READ MORE - Amedeo Modigliani sculpture sells for 43.2m euros

Rare Rabindranath Tagore paintings sold in the UK

A collection of rare paintings by the Bengali poet Rabindranath Tagore has sold for more than £1.5m ($2.2m) at an auction in Britain. The collection has been described by Sotheby's auctioneers as "arguably the most important group of works by Tagore ever to appear at an auction". The 12 paintings by Tagore were sold by the Dartington Hall Trust charity.

So far the buyers of the pictures - certain to attract huge interest in India - have not been identified. A Sotheby's spokesman said all the pictures sold for well above the asking price.

'Once-in-a-generation opportunity'

It follows the £2.4m ($3.5m) sale on Friday at Christie's auctioneers of a painting by top Indian artist Syed Haider Raza, which set a record for a modern Indian work.

Tagore composed the Indian and Bangladeshi national anthems

Tagore, often referred to as Bengal's Shakespeare, is the only Indian to win the Nobel literature prize. He wrote poems and short stories and composed both the Indian and Bangladeshi national anthems. He died in 1941. "The rarity and distinguished provenance of the 12 Tagore paintings - in addition to the fact that they have never appeared on the open market before - made their auction debut a once-in-a-generation opportunity for collectors in the field," a Sotheby's statement said.

"Together, the group unquestionably ranks as one of the most important collections of works by the much-loved Indian artist ever to come to the market." Born in Calcutta in 1861, Tagore was perhaps the most important literary figure of Bengali literature and was also the first non-European to win the Nobel literature prize.

Huge archive

Portrait of a Woman sold for over £313,000 ($461,000) at Sotheby's

The Dartington Hall charity - set up to advance innovative ideas and programmes in education, social reform and rural regeneration in the 1920s - has strong ties to Tagore. The estate in the south-west English county of Devon was purchased by Leonard Elmhirst. He was a close friend of Tagore and travelled to India to work as his private secretary.

Over the years, the Dartington Hall Trust amassed an extensive collection of works of art. Officials say it is not clear how the 12 Tagore paintings arrived at Dartington, but it is probable that they were a gift from Tagore to his great friend and companion.

Tagore visited Dartington on a number of occasions. The trust also holds a huge archive of his photographs, letters and other items. "We have a successful track record of selling works by Tagore and in fact set an auction record for a work by him when his Death Scene sold for £120,000 in May 2008," said Sotheby's. "However, works by Tagore are relatively rare to the auction market."

READ MORE - Rare Rabindranath Tagore paintings sold in the UK

Killers man unveils 'lonely' debut

The Killers Brandon Flowers is to release his debut solo album

The Killers singer Brandon Flowers has said his first solo album started out as a new Killers album and that making it was a "lonely" process. Flamingo, recorded over the past year, will be released in the autumn, after the first single Crossfire comes out in September. Flowers has enlisted the help of a string of collaborators including Stuart Price, Brendan O'Brien and Jenny Lewis for his first release. Speaking to Radio 1's Zane Lowe, Flowers said: "This started out that way - it just became something else when I realised I wasn't ready to take a very long break and a couple of the guys were. "

Solo debut

He added: "It was weird. Without union and the Killers and that way of doing things and friendship. I had fun making the record but that brotherhood didn't exist. At times it was a little bit lonely. "It wasn't born out of a need to do something different or to get attention or anything else - it was really to make music." However, he confirmed that this solo album did not spell the end for the Mr Brightside band, confirming they're already organising a date to head back to the studio.

"The guys have heard it and they understand why I'm doing it. I'm already talking to them about when we're going to get into the studio again. "Ronnie (Vannucci) actually plays drums on this record. "I'm excited. I'm a little bit nervous about it all. In the most part I'm really happy with it." The Killers' most recent album Day & Age was released in 2008.

READ MORE - Killers man unveils 'lonely' debut

Superdrug pulls Katie Price perfume

Reality TV star Katie Price's perfume has been pulled from Superdrug's shelves because of "ethical" reasons. It follows a report in The Observer newspaper claiming Indian workers making the bottles were paid less than the minimum wage. A spokeswoman for the high street shop said that because of their "robust ethical trading policy" it had been decided to remove the fragrances.

Price's spokesperson said production has now been moved to the UK. Sunday's Observer claimed that workers at a factory in India are paid 26p an hour to make perfume bottles for Price's Stunning and Besotted fragrances. A Superdrug spokeswoman said: "As a business, we have a robust ethical trading policy so that our customers can be confident that they are buying products that are made in an ethical way. "Therefore, we have taken the decision to remove Katie Price's fragrances from our shelves at this time while we conduct an investigation."

In a statement, Price's spokesperson said: "Following a press report about the production of Katie Price's perfume bottles by the Pragati Glass Company, we can confirm that this factory in India is no longer used as a source of component. "The production of the bottle, its packaging, filling and finishing has been moved from India to the UK and France.

"We would like to reiterate as always that all products manufactured for Katie Price, or third parties working on behalf of Katie Price, have a checking policy that ensures health, safety and ethical trading guidelines are met and in most cases are exceeded. "We are investigating if and how this has occurred in these circumstances." Price - otherwise known as Jordan - has a number of branded products including a line of bedding, a series of books and an equestrian clothing range.

READ MORE - Superdrug pulls Katie Price perfume

BBC receives 545 vuvuzela complaints over World Cup

The BBC has received 545 complaints about the sound of vuvuzela horns during its World Cup coverage. The corporation is considering showing coverage that cuts out the noise of vuvuzelas on its red button service. On Monday, World Cup organisers ruled out a stadium ban on the plastic horns, which can reach 130 decibels, following complaints from players and fans.

Experts say it is impossible to cut out the horns without affecting commentary and crowd noise. The BBC says it has already "taken steps to minimise the noise". "If the vuvuzela continues to impact on audience enjoyment, we will look at what other options we can take to reduce the volume further," a spokeswoman said.

The BBC is considering cutting out some of the vuvuzela noise on the red button service but says a final decision has yet to be made. On Monday, Trevor Cox, president of the Institute of Acoustics, told the BBC News website's Magazine that vuvuzelas were tuned to a similar frequency to speech tones.

If broadcasters tuned out it would dampen the commentators' voices, he said. "It would sound really horrible to notch these out - if one coincides with the vowel sound e, you won't be able to hear the -es in the commentary. It would sound unnatural," he said.

READ MORE - BBC receives 545 vuvuzela complaints over World Cup

Robbie Earle sacked over World Cup tickets

ITV World Cup pundit Robbie Earle has been sacked by the broadcaster after tickets for his family and friends were passed on to a third party. ITV said a "substantial number" of tickets for the Denmark v Holland match on Monday had been passed on, breaching Fifa rules. It has been claimed a block of tickets were used by a Dutch company for an "ambush marketing effort".

In a statement Earle said: "I didn't think I was doing anything wrong." He added: "I hope when people hear the full story they will see me in a different light. I have absolutely no connection with any marketing ambush agency and have not profited in any way from these tickets." ITV's full statement said: "Following claims by FIFA that official 2010 World Cup tickets may have been used for ambush marketing, ITV has reviewed its entire ticket allocation for the tournament," the TV network said in a statement.

"Immediate investigations indicated that a block of ITV tickets would appear to have been used for unauthorised purposes during the Holland v Denmark match. "Further enquiries have revealed that a substantial number of tickets allocated to Robbie Earle for family and friends have been passed to a third party in breach of FIFA rules. "As a result, Robbie Earle's contract with ITV has been terminated with immediate effect." The announcement comes after officials ejected 36 women who were wearing orange mini-dresses during Holland's game against Denmark.

The women were accused of "ambush marketing" for a brand of beer. Members of the group, accused of promoting a brand that is not one of the tournament's official sponsors, were found with tickets understood to have been part of Earle's allocation. The tickets' terms and conditions stipulate they must not be passed on or sold to anyone else. Earle, 45, an ambassador for England's 2018 World Cup bid, played for Wimbledon and Port Vale as well as for Jamaica in the 1998 World Cup.

READ MORE - Robbie Earle sacked over World Cup tickets

Chris Dercon becomes Tate Modern head

Belgian Chris Dercon has been appointed head of London's Tate Modern art gallery, replacing Vincente Todoli who has held the post for seven years. The 52-year-old, who has run Munich's Haus der Kunst since 2003, said the job is "an incredibly inspiring challenge". Dercon, who has held numerous art directorships over 20 years, added he was "thrilled" to become part of the team behind the successful museum.

He is due to take up his post in the spring of next year. Tate director Nicholas Serota said: "Chris Dercon has made some outstanding exhibitions in Munich and has demonstrated a commitment to showing art from across the world. "We are delighted that he has agreed to lead the team that is taking Tate Modern into its second decade."

Dercon worked during the 1980s as a freelance arts and culture journalist. In his career as an arts director, he has curated a number of major exhibitions, including one by Turner Prize-winner Anish Kapoor.

READ MORE - Chris Dercon becomes Tate Modern head

Speculators betting on movie success

Box office hits could provide money-making opportunities to speculators

Market traders who usually speculate on the price of oil or the value of the pound have found something new to bet on - movie releases. Following US regulatory approval, a new exchange is to begin offering traders the chance to bet on the success of the latest cinematic productions. Investors will enter into contracts betting on how much money a given film will make in its opening weekend.

But film studios and cinema owners have condemned the idea. They argue that letting investors bet on whether or not their films are successful could be open to manipulation. Rival studios could even bet against films in an attempt to sabotage them, some industry figures have argued.

'Popcorn predictions'
But the Commodity Futures Trading Commission has rejected those concerns, saying that box office earnings meet the law's definition of a commodity - meaning that futures contracts can be opened on them.

The Trend Exchange, operated by Veriana Networks, plans to start offering box office futures from August, though the industry is lobbying the US Congress to ban them. "Takers", a film about a bank-robber starring Matt Dillon that opens in the US on 20 August, is due to be the first release to be speculated on. Democratic commissioner Bart Chilton warned that "popcorn prediction markets would serve no national public interest".

But investors have defended the plans, pointing out that they could give finance companies a way of reducing the risk of investing in films. Investors will be able to guard against making a big loss at the box office by betting some money against their film. The move also signals increasing investor interest in the film industry, with global box office receipts reaching a record $30bn (£20bn) last year.

READ MORE - Speculators betting on movie success

Michael Jackson's doctor free to practise

The doctor accused of giving Michael Jackson a lethal dose of anaesthetic will be allowed to work in California as he awaits trial, a court has ruled. During a brief procedural hearing, a Los Angeles judge said he did not have the authority to ban Dr Conrad Murray. Members of the popstar's family were inside court to hear the ruling.

Dr Murray, 57, denies involuntary manslaughter of Jackson, who died last June. A preliminary hearing has been scheduled for 23 August. California's attorney general had asked the judge to suspend the cardiologist in the run-up to the trial. But Dr Murray's lawyers argued that he needed to continue working to pay for his defence.

Dr Conrad Murray faces up to four years in jail if convicted

They said he had no intention of practising in California, but argued that a ban in that state would affect his working in Texas and Nevada. Judge Michael Pastor said the matter had already been ruled on by a previous judge, and he refused to allow the attorney general's application. "I do not have the ability to revisit a ruling by one of my colleagues," he said.

The doctor is alleged to have administered a lethal dose of Propofol and other drugs, which resulted in the popstar's death on 25 June. A condition of Dr Murray's bail is that he does not administer Propofol. If convicted, he faces up to four years in jail.

READ MORE - Michael Jackson's doctor free to practise

Ryan Seacrest stalker jailed for maximum sentence

Seacrest took out a restraining order against Uzomah
A man who stalked American Idol host Ryan Seacrest has been sentenced to two years in prison and ordered to stay away from the star for 10 years. Chidi Uzomah, 26, who did not speak during the sentencing hearing, had previously pleaded no contest. He has been in jail since his June 2009 arrest after being stopped by security at cable network E! in Los Angeles, where Seacrest was recording a show.

Uzomah was already on probation for attacking one of Seacrest's bodyguards. He had pleaded guilty to assault, battery and carrying a knife after that incident at a charity event in Orange County last year. Mr Seacrest's lawyer Blair Berk said: "Ryan is extremely appreciative of the work of the Los Angeles County District Attorney's office in this matter."

Restraining orders filed last year by Mr Seacrest, claimed Uzomah who had been carrying a knife. Along with the prison sentence, Uzomah has been orderd to stay 500 yards away from Seacrest and his workplace for 10 years. Seacrest, 35, is a radio and television personality best known for hosting American Idol and E! News.

READ MORE - Ryan Seacrest stalker jailed for maximum sentence

Gary Coleman's cremation is delayed by judge

Coleman was living with Price at the time of his death

US actor Gary Coleman's remains are not to be cremated until after Wednesday so his ex-girlfriend has time to see his body, a US judge has ruled. The former Diff'rent Strokes star died of a brain haemorrhage last month after a fall at his home in Utah. His ex-wife Shannon Price and former girlfriend Anna Gray are in a dispute over control of his estate.

Ms Price divorced Coleman in 2008 but was named as his sole heir in 2007. Ms Gray was named in a 2005 will. Last week, Ms Price launched a legal bid to take control of Coleman's estate. She claims she is still his common-law wife and should be the one to make funeral arrangements. However, Ms Gray was named in Coleman's will dated 2005 and her lawyer Randy Kester said the couple knew each other for eight years.

On Monday, one of Coleman's friends and former managers, Dion Mial, withdrew his petition to be named as the special administrator of the actor's estate. Mr Mial was named in a 1999 will by Coleman, but Mial's lawyer said the will that names Ms Gray takes precedence because it is more recent. Meanwhile, Coleman's estranged parents, Sue and Willie Coleman, have said they will not seek permission to make their son's funeral arrangements.

The former child star successfully sued them in 1989 over misappropriation of his trust fund. Their lawyer Frederick Jackman said the couple did not ask the judge to let them see their son before he is cremated. "They want Gary to rest. That's all they want. I think they feel like if they came out here it would create 'activity', Their son is gone. They just want him left alone," Mr Jackman said.

READ MORE - Gary Coleman's cremation is delayed by judge

Michael Jackson to star in new video game

Ubisoft have issued an image from the new game

Singer Michael Jackson is to be captured in a new video game, developers Ubisoft have announced. The game, which has yet to be given a title, will rate players' ability to dance like the late pop star. It will be one of the first titles to use motion detection technology, due to be rolled out on a number of consoles later this year.

The musician voiced a video game character called Space Michael in the game Space Channel 5 in 1999. In 1989, he also appeared in the game Michael Jackson's Moonwalker. The game's launch is set to coincide with the release of an album in November containing previously unreleased Jackson tracks.

It will include songs from the singer's back catalogue, including the hits Billie Jean and Beat It. At an announcement in Los Angeles, Ubisoft's Tony Key said: "Your goal is to dance like Michael. "Do what the guy on the screen is doing and you're there. It'll score you based on the quality of your performance." Developers are lining up to release dance-based games, including Dance Central, which uses the Kinect system to detect players' movements, which are then translated onto the screen.

READ MORE - Michael Jackson to star in new video game

Pop star Prince to receive lifetime BET award

Pop star Prince is to receive a lifetime achievement honour at the Black Entertainment TV (BET) awards later this month. "Prince is dynamic. Prince is genius. Prince is music," said BET president of programming, Stephen G Hill. The BET awards are celebrating their 10th anniversary in Los Angeles on 27 June. This year's show will be hosted by Queen Latifah.

Prince has 10 platinum albums and 30 Top 40 singles to his name. This year's BET awards ceremony will include performances from Kanye West, Diddy and Dirty Money and Ludacris.

Bieber nomination

Nominees include Rihanna, Beyonce, Chris Brown, Usher, Maxwell, Jay-Z and the Black-Eyed Peas. Jay-Z leads the charge with five nods, while his wife Beyonce has picked up four. Alicia Keys and Melanie Fiona also have four nominations apiece. There was also recognition for teenage Canadian star Justin Bieber, who is in the running for best new artist.

READ MORE - Pop star Prince to receive lifetime BET award

World Cup 2010: New Zealand hail 'best ever result'

New Zealand's only other appearance in a World Cup finals was in 1982

New Zealand coach Ricki Herbert described his team's 1-1 draw with Slovakia as the greatest result in the country's football history.

The Kiwis earned their first point at a World Cup when Winston Reid headed home a dramatic injury-time equaliser. "We are very, very proud. You would have to say this is our best ever result," said Herbert. "We have come and thrown some extremely good punches and got what I thought was a fully deserved result."

Slovakia were on course for a perfect start in their debut World Cup as an independent nation after Robert Vittek's 50th-minute header. But Vladimir Weiss's side paid for sitting back on their lead when, in the third minute of injury time, Reid rose to head home Shane Smeltz's left-wing cross. "It's a special night for me, I couldn't be any prouder," added Herbert, whose side play Italy on Sunday.

"I thought the opening game was a good chance to get something and I would have been disappointed with a loss after conceding a goal like that. But we kept coming, the boys kept coming. "We came across with the intention to make a difference and we certainly did that against a highly rated team." All four teams in Group F now have a point each as Italy drew 1-1 with Paraguay on Monday.

Perhaps more importantly for the Kiwis, though, it breaks their World Cup duck. New Zealand's only other appearance in a World Cup finals was in 1982 when they lost to Scotland (5-2), Soviet Union (3-0) and Brazil (4-0). "We still have two heavyweights to go and they will be tough. I think we showed the kind of football we play now is conducive to results," stated Herbert.

"Some of the quality of the movement up front could be better and we'll work on that." Goalscorer Reid, who was booked for taking off his shirt amid wild celebrations, described scoring the equaliser as "awesome". "The first thing I did was look at the linesman to see if I was offside and after that it was great. We had just decided to stay up there and hope for the best," said Reid. "Look at the smiles of the players and staff and that tells you everything. We're at the biggest stage of football and it's great to be here."

READ MORE - World Cup 2010: New Zealand hail 'best ever result'

World Cup 2010: Queiroz questions Drogba decision

Queiroz believes Eriksson wanted his side to take risks

Portugal coach Carlos Queiroz has queried the decision to let Didier Drogba wear a cast on his broken arm during his side's World Cup opener.

Ivory Coast striker Drogba, who appeared as a substitute, was given clearance by Fifa after the cast had been examined by the match referee. Queiroz said: "Fifa delegates decided the referee's decision is final. "This was a bit odd. There are rules that players cannot play with a string bracelet or a plaster." The former Manchester United assistant added: "The solution presented at the meeting on Tuesday was not necessarily one we knew about.

Ronaldo calls for more ref protection

"I would like to know that all the rules are the same for everybody." Fifa stated on Tuesday that all parties, including match referee Jorge Larrionda of Uruguay and Portuguese team officials, were satisfied that the cast did not pose a danger to other players. Drogba began the match from the bench before Ivory Coast coach Sven-Goran Eriksson elected to bring the 32-year-old Chelsea striker on for Salomon Kalou in the 65th minute.

Drogba had sustained his arm injury during a friendly against Japan on 4 June, and consequently required surgery. Meanwhile, Queiroz believes his opposite number Eriksson had set out plans for Ivory Coast to contain Portugal. "What Eriksson wanted us to do was to take risks so we had to prevent Ivory Coast taking advantage of any errors that we might make," Queiroz stated after the 0-0 draw.

"We had to play intelligently. Our motivation and attitude was clear. Everything is still possible. This is the Group of Death, only two from Brazil, Ivory Coast and Portugal, with respect to North Korea, can move forward." Portugal's next match is against North Korea in Cape Town on Monday 21 June.

READ MORE - World Cup 2010: Queiroz questions Drogba decision

World Cup 2010: North Korea take comfort despite defeat

Highlights - Brazil 2-1 North Korea

North Korea coach Kim Jong-Hun is confident his team will do well in their remaining Group G games despite losing 2-1 to Brazil in Johannesburg.

The Koreans proved more than capable opponents for a Brazilian side who secured victory courtesy of second-half strikes from Maicon and Elano. Ji Yun-nam scored a consolation goal to boost the side ahead of difficult games against Portugal and Ivory Coast.

Kim Jong-Hun said: "My players fought well. We'll do well in the next games." Brazil were expected to comfortably beat North Korea, a team 105th in the Fifa world rankings. But the five-time World Cup winners endured a difficult first half as the Asian side - making their first World Cup appearance in 44 years - proved resilient in defence and skilful on the counter-attack.

North Korea were making their first appearance at a World Cup since 1966

A magical strike from Maicon in the 55th minute gave Brazil the lead and Elano soon doubled the score thanks to a defence-splitting pass from the lively Robinho. But with two minutes remaining, Ji Yun-nam scored a deserved goal as a team of previously unknown players announced themselves to the world.

"The Brazilian team is very strong," added Kim Jong Hun. "For the first half our players really carried out our plan for the Brazilian team. "When they were attacking from the sides or the wings, or at individual players, we managed to fend them off.

"We were very well prepared to fight against any of their tactics and when we intercepted the ball we passed very quickly. "In the second half Brazil were more on the attack but we tried to find a goal opportunity. I thought we fought quite bravely."

READ MORE - World Cup 2010: North Korea take comfort despite defeat

New Zealand 1-1 Slovakia

Winston Reid headed a dramatic injury-time equaliser against Slovakia to earn New Zealand their first ever World Cup point. Slovakia were on course for a perfect start in their debut World Cup as an independent nation after Robert Vittek's 50th-minute header. But Vladimir Weiss's side paid for sitting back on their lead when, in the third minute of injury time, Reid rose to head home Shane Smeltz's left-wing cross.

The result in Rustenburg leaves all four teams in Group F on a point each after Italy's draw with Paraguay on Monday. Perhaps more importantly for the Kiwis, though, it breaks their World Cup duck. New Zealand's only other appearance in a World Cup finals was in 1982 when they lost to Scotland (5-2), Soviet Union (3-0) and Brazil (4-0).

Their warm-up matches were hardly encouraging either, with a 1-0 win over Serbia the highlight among defeats by Slovenia, Australia and Mexico. However, skipper Ryan Nelsen promised his team would "make every New Zealander proud" and they were true to the Blackburn defender's word at a far-from-full Bafokeng Stadium.

Middlesbrough striker Chris Killen threatened twice within the first five minutes, first with a long-range effort which flew well over and then with a header, which goalkeeper Jan Mucha gathered at the second attempt. Slovakia's main threat in the first half, such as it was, was provided by 20-year-old Manchester City winger Vladimir Weiss, as the much-vaunted Napoli playmaker Marek Hamsik struggled to impose himself.

Weiss's trickery on the left set up chances for Hamsik, who bent an ambitious shot wide, and Stanislav Sestak, who fired narrowly wide.

Slovakia's best chance of a breakthrough, though, came through New Zealand's nervy keeper Mark Paston. The Wellington Phoenix player embarrassingly miscued a clearance, gifting Vittek a difficult chance, and was fortunate to see one of his defenders clear when he failed to collect a header across the box. Paston partly redeemed himself with a smart tip-over from Hamsik's long-range effort shortly before half-time, but within five minutes of the restart, he was beaten.

Slovakia finally found a good delivery from Sestak on the right, the Bochum winger whipping a cross in from deep for Vittek to plant a perfect header into the bottom corner. New Zealand were rocked, but Slovakia, while looking comfortable in defence, did not seem desperate to press home their superiority. Their attitude was summed up when more good work from Sestak gave Vittek a chance to wrap it up, but the striker appeared to delay too long, allowing Reid to slide in with an excellent tackle.

And it was Reid who was the New Zealand hero at the other end. The Kiwis had hardly threatened in the second half, but they saved their best two chances for the dying minutes. Smeltz, the former Mansfield, AFC Wimbledon and Halifax striker, headed wide from a tempting Tony Lockhead cross before he set up an unlikely equaliser, delivering a perfect ball from the left for Reid to head past Mucha.

The FC Midtjylland defender ripped off his shirt and swung it around his head, prompting the inevitable booking from the referee, but that mattered little as he celebrated a historic goal for his country. A first World Cup win may prove harder to come by: New Zealand face Italy in their next game on Sunday, when Slovakia will look to make amends against Paraguay.

READ MORE - New Zealand 1-1 Slovakia

Robbie Earle to lose role as England 2018 ambassador

Robbie Earle will no longer be used as an ambassador for England's 2018 World Cup bid after he was sacked by ITV. The ex-Jamaica and Wimbledon midfielder was dropped as a pundit after tournament tickets for his family and friends were passed to a third party. ITV said tickets for Monday's Denmark v Netherlands match in South Africa were distributed, breaching Fifa rules.

No-one from the 2018 bid team would comment but Earle, 45, is not named on its official list of ambassadors. He was among a 50-strong list of ambassadors announced by the England bid team in October 2009. But Earle, who scored Jamaica's first World Cup finals goal when he headed an equaliser in the 3-1 defeat to Croatia at France 98, will not be used in the future, BBC Sport understands.

It has been claimed a block of tickets were used by a Dutch company for an "ambush marketing effort". In a statement Earle said: "I didn't think I was doing anything wrong." He added: "I hope when people hear the full story they will see me in a different light. I have absolutely no connection with any marketing ambush agency and have not profited in any way from these tickets."

READ MORE - Robbie Earle to lose role as England 2018 ambassador

Two women in court over World Cup Dutch 'beer stunt'

The women were ejected from the stadium

Two Dutch women have appeared in court in South Africa over an alleged "ambush marketing" stunt at a World Cup match. They were released on bail. More than 30 women were ejected from the Johannesburg stadium on Monday during the match between Denmark and the Netherlands.

They were accused by Fifa of breaking strict rules on World Cup marketing. They had all been wearing identical mini-dresses in Dutch orange, sold as part of a gift pack by a Dutch brewery. The two women appeared in a Johannesburg court on Wednesday under the Contravention of Merchandise Marks Act. They were released on bail and ordered to return to court next Tuesday.

Dutch Foreign Minister Maxime Verhagen called the criminal charges "disproportionate". "It is outrageous that the two women have a jail term hanging over their heads for wearing orange dresses in a football stadium," he said in a statement. "If South Africa or Fifa wants to take a company to task for an illegal marketing action, they should start judicial procedures against the company and not against ordinary citizens walking around in orange dresses."

The case has already led to the sacking of English football commentator and former footballer Robbie Earle. He was found to have passed on some of the tickets used by the women from his allocation for friends and family, in breach of Fifa rules, and was promptly sacked by employer ITV.

Lucrative rights

Fifa, the world footballing body, said it had launched legal action against the Dutch brewery, Bavaria, but not the women in question. It said it was up to the police how they should proceed. With a large chunk of Fifa's revenue coming from selling World Cup marketing rights, it vigorously pursues anyone who tries to associate itself with the tournament, reports the BBC's Jonah Fisher from Johannesburg.

Earlier this year a local low-cost airline was forced to withdraw an advertising campaign that boasted it was the "Unofficial National Carrier of the You-Know-What". Bavaria board member Peer Swinkels told Reuters news agency that Fifa's reaction was "ridiculous". "Fifa does not have the monopoly on orange and people have the freedom to wear what they want," he said.

READ MORE - Two women in court over World Cup Dutch 'beer stunt'

South Africa to deport 17 Argentina football supporters

South Africa is to deport 17 Argentina football supporters arrested on suspicion of being troublemakers, police said. They were described as a possible threat to public order who could disrupt the World Cup.The 17 were on a list of 800 known hooligans barred from attending matches in Argentina that authorities there gave to South Africa.

Five other Argentina supporters also voluntarily left South Africa. The 17 were picked up in a police raid early on Wednesday on premises in Pretoria where 165 football supporters were staying. "During the raid, 17 of the 165 fans present were identified as being persons whom the police consider to be undesirable as spectators at matches," a police statement said.

"These people have been observed at two matches trying to enter the stadiums without tickets," the statement continued. "They have also behaved in a disorderly fashion on a number of occasions, roughing other fans up and generally causing trouble."

READ MORE - South Africa to deport 17 Argentina football supporters

World Cup 2010: Eriksson backs talks over new balls

Former England boss Eriksson took over as Ivory Coast coach in March

Ivory Coast boss Sven-Goran Eriksson believes goalkeepers should be consulted when new footballs are being designed for international tournaments.

The Jabulani ball being used in South Africa for the World Cup has been widely criticised by players. "It's too late to do something about it in this World Cup," said Eriksson. "It's a decision for the authorities for the next big tournament. It should be discussed and everyone should listen to the top goalkeepers in the world."

World governing body Fifa has defended the Jabulani, insisting that it was "tested" and "approved" and manufacturers Adidas say altitude is the main factor affecting the way the ball behaves in flight and have blamed players for not practising enough with it before the tournament.

The Jabulani - its name derives from the Zulu words "to celebrate" - was made available in February and was used at this year's Africa Cup of Nations as well as a number of domestic leagues, including Germany, Argentina and the United States.

Rooney denies ball is a problem

The ball was tested at Loughborough University in England but it was not used in the Premier League because it has a contract with rival manufacturers Nike. England's David James, Italy's Gianluigi Buffon and Iker Casillas of Spain were among the goalkeepers who criticised the Jabulani before the tournament began.

"The ball is dreadful. It's horrible but it's horrible for everyone," stated James, who said some goalkeepers would end up "looking daft". Eriksson, who was previously in charge of England and Mexico, said he he could understand why goalkeepers were unhappy. "Maybe we will see some goals. But discussion between managers, the company who produce the football and the football players, that would be good," he added.

READ MORE - World Cup 2010: Eriksson backs talks over new balls

World Cup 2010: Gianluigi Buffon sits out training

Italy v Paraguay - Match highlights

Italy goalkeeper Gianluigi Buffon has missed training for the second successive day amid fears that he may not play again in the 2010 World Cup.

The 32-year-old sat out Wednesday's session - 24 hours after undergoing tests on a back injury. Buffon, who was replaced at half-time in Monday's 1-1 draw against Paraguay, has a problem with his sciatic nerve.

A statement later released by the Italy camp said: "It's impossible to estimate when he might return." Buffon was replaced by substitute Federico Marchetti in Cape Town as the World Cup holders began the defence of their title.

He initially said he hoped "to recover in two days", but team doctor Enrico Castellacci stopped short of stating that Buffon would be fit for their next match against New Zealand on Sunday at 1500 BST..

Buffon could do little to stop Paraguay taking the lead on a rain-drenched night in Cape Town, with Antolin Alcaraz making the most of some hesitant defending from captain Fabio Cannavaro and Daniele De Rossi to head home the opener.

But De Rossi made amends after the break when some dreadful goalkeeping from Paraguay's Justo Villar allowed the midfielder to nip in and equalise from a corner.

"During the warm-up Buffon felt a pain in his back and after the first half he couldn't continue," said Italy coach Marcelo Lippi.

"It was a big blow. We lost a substitution that we could have used.

Buffon is regarded as the one of the best goalkeepers in world football

Italy struggled to get going in what was their first World Cup match since winning the tournament in Germany four years ago. The awful weather did not help their cause though, and Lippi, who masterminded the victory in Berlin, insisted his team had made a satisfactory start to their title defence. "Italy is right here. We're here tactically, physically, with our hearts, we're here full stop.

"I just regret that we did not get the points we deserved, but sometimes that's what happens, you get less than you deserve. "The important thing is this was not a decisive game. What is important is that people now realise we are here and have got our act together." "We deserved to win," De Rossi said. "We controlled the ball virtually the entire time, but it's not easy against these teams that dream simply of drawing with the world champions.

"And if you fall behind, it becomes even tougher."

De Rossi equalises for Italy

READ MORE - World Cup 2010: Gianluigi Buffon sits out training

World Cup 2010: Capello ponders England changes

Highlights - England 1-1 USA

England boss Fabio Capello says Gareth Barry will start against Algeria, but he is still undecided over who to play in goal and up front with Wayne Rooney.

Barry has shaken off an ankle injury and will anchor the England midfield in their second World Cup game on Friday. But goalkeeper Rob Green's place is under threat following his mistake in the 1-1 draw with the United States. And the coach revealed he is weighing up whether to drop Emile Heskey and play Jermain Defoe alongside Rooney.

Barry, a mainstay of England's qualifying campaign, missed the draw with the United States because of an ankle injury suffered playing for Manchester City against Tottenham in early May. But he has been training with the squad and is likely to be asked to shield the defence against the north Africans.

"Gareth Barry will play this Friday," said Capello. "He's training very well, and has no problems. He's fit." Barry said earlier this week he was fully fit and would have "bitten Capello's hand off" to play against the US and Manchester United striker Rooney is in no doubt about the qualities Barry brings to the team. "We know what a player he is," said Rooney. "He can sit and hold for us, keep the ball and he's good in possession.

"So he's a different option if the manager decides to choose him." Barry's return gives Capello the option of moving captain Steven Gerrard to the left side of midfield or playing the Liverpool man behind Rooney in a 4-4-1-1 system. But the coach seems determined to stick with two out-and-out strikers and will choose between Aston Villa frontman Heskey and Tottenham forward Defoe.

Heskey set up England's goal against the US for Gerrard but later wasted a golden opportunity when one-on-one with the goalkeeper. Defoe has 11 goals in 40 internationals, compared with Heskey's record of seven in 59. Capello favoured Heskey in qualifying and Rooney believes his partnership with the former Liverpool striker can be successful at the World Cup. "We thought we caused problems for the US defence," said Rooney.

"We created chances for the team and if the manager picks the two of us again I'm sure we'll cause problems for the Algeria defence." Rooney has only scored once in his last eight internationals and offered little threat against the Americans. But the United striker has vowed to improve and is confident England can deliver a win against the Algerians, who qualified for the World Cup via a play-off and were unimpressive in their 1-0 defeat by Slovenia on Sunday.

"We started very well (on Saturday) and we deserved to win and overall we did enough to win the game, but unfortunately we didn't. But I am sure we will take three points on Friday," said Rooney. "We've got players in the team who can score goals. For us to do well, I need to play better than I did and to score goals.

"But I don't feel under extra pressure. If we win the next two games I'll be happy. I'm not worried. If I don't score in the next game I'll just keep working until I do." Rooney was dismissive of criticism from Germany legend Franz Beckenbauer, who described England's performance against the US as a step back to the dark ages of "kick and rush" football.

"That is his opinion and he is entitled to it," Rooney said. "But we don't listen to what he has to say. We certainly don't play kick and rush and we don't take any notice of his comments." Capello said he would assess Green's state of mind before deciding whether to keep faith in the West Ham goalkeeper, or to call in either David James or Joe Hart. The England coach must also decide whether Jamie Carragher deserves to start alongside John Terry in central defence, with Matthew Upson and Michael Dawson waiting in the wings.

READ MORE - World Cup 2010: Capello ponders England changes

Wednesday's World Cup 2010 round-up

Ozil has been linked with a move to England

Germany star Mesut Ozil insists he is fully focused on the World Cup and not his club future, despite speculation linking him with a move away from Werder Bremen.

Arsenal and Manchester City are among the clubs reported to be interested in the 21-year-old, who said: "All that interests me now is the World Cup. As a team we have goals, that is all that matters."

Serbia striker Milan Jovanovic has urged his team to be courageous against Germany after being beaten by an "inferior" side in Ghana in their opening match.

He said: "We missed out on our aim against an inferior rival and are in a position where we have to get as many points as possible against better teams than us. If we want to upset them, we will have to show no fear."

Switzerland coach Ottmar Hitzfeld has prepared his players for the deafening sound of vuvuzelas - by inviting fans to attend the team's training.

Ahead of his side's opening World Cup game against Spain, Hitzfield organised a public training session knowing that spectators would bring their plastic horns. "It is good for the players to be prepared for what they will hear on the pitch," he explained.

Matthew Upson is certain that team-mate Wayne Rooney will soon end his England goal drought. Rooney has found the net in only one of his last eight internationals and has not scored for England since September.

But West Ham defender Upson said: "It will happen. Wayne's movement is great. He is a class player and he is totally gifted. He just needs to relax, play his game and the goals will come because he is top drawer."

New Zealand hero Winston Reid believes his goal against Slovakia justified his decision to play for the All Whites. Reid, 21, opted to represent the country of his birth rather than Denmark, where he was brought up from the age of 10.

"For a long time I have been torn between the two countries. I was asking myself if I was a Kiwi or a Dane," said Reid, who won 10 caps for Denmark's Under-21s. "This is the biggest stage in the world for football and that has to be the most important goal of my life."

Cristiano Ronaldo would have happily swapped his man of the match award for three points against Ivory Coast. Ronaldo was impressive for Portugal in their Group G opener, but his team were unable to break the deadlock and had to settle for a 0-0 draw.

The former Manchester United star said: "It's always good to win individual awards. But if I could change it for anything, I would change it for three points. But I would say that nothing is lost. This has happened with England and with other teams."

Italy centre-back Giorgio Chiellini has admitted that the defending world champions are worried about the aerial threat posed by New Zealand, who they play on Sunday.

"They're very physical, we played them in a friendly last year [Italy won 4-3], they're very dangerous in the air and from set pieces," he said. "But everyone knows that we should win."

READ MORE - Wednesday's World Cup 2010 round-up