Kenya agrees to election tribunal

Kenya's president and prime minister have signed a deal that will pave the way for an election violence tribunal.

They agreed to it within hours of a deadline set out in a report into the deadly clashes that erupted after last December's elections.

The court will seek to try the ringleaders of the violence.

Some 1,500 people died in the clashes that erupted after the elections

Parliament now has 45 days to set it up to begin hearings by March or a sealed list of suspects will be handed over to the International Criminal Court.

The deadline for Wednesday's agreement was set out by a commission of inquiry into the violence, chaired by Justice Phillip Waki, which reported in October.

That commission also handed over a list of suspects, some thought to be prominent politicians, to the mediator of the power-sharing deal, former UN chief Kofi Annan.

On Tuesday, Kenya's electoral commission was dissolved by MPs - a key recommendation of another inquiry into the election.

Some 1,500 people died in the post-election clashes and another 300,000 people fled their homes.

President Mwai Kibaki and Raila Odinga signed a power-sharing deal in February to bring an end to the violence and formed a coalition government.

Opec agrees record oil output cut

The oil producers' cartel Opec has agreed to make a record cut in output, slashing 2.2 million barrels per day (bpd) from its current supply.

Opec has made two other cuts since September, meaning it has cut a total of 4.2 million bpd in four months.

In a news conference, Opec said that it hoped the record cut would boost prices but that it had no formal price target.

The cut means that the target for production for the 12 member states is now 24.845 million bpd.

Demand risks

The cut is effective from 1 January, but the big question with Opec production cuts is always whether the member states will actually make the cuts they have agreed to.

"Given the still-substantial risks to demand and ongoing scepticism on Opec compliance, it could take some time before prices recover materially above $50 to $55 per barrel," said Gordon Gray from Collins Stewart.

Oil prices fell following the agreement, because weekly US inventories figures provided further evidence that motorists were cutting back on their consumption.

Demand for petrol in the four weeks to 12 December was down 2.7% from the same period last year.

US light, sweet crude for January delivery fell $2.07 to $41.53 a barrel on the New York Mercantile Exchange.

'Bigger problems'

There was some doubt among analysts about whether the cut would be enough to push prices higher, even if members did comply with it.

"Historically Opec has had to remove around five million barrels from the market in previous slumps, and they're facing bigger problems now than they have done before," said Michael Lewis, head of commodity research at Deutsche Bank.

Oil prices have fallen by more than $100 a barrel from the peak above $147 that they reached in July.

Prices have been falling amid concern about how much less oil will be used by countries experiencing recessions.

Falling consumption means that industrialised nations currently have stockpiles of oil equivalent to 57 days of consumption - supplies that would typically be about 52 days at this time of year.

Zardari rejects Mumbai 'claims'

Pakistani President Asif Ali Zardari has said there is still no firm proof that gunmen who attacked the Indian city of Mumbai came from Pakistan.

US, Indian and British officials all say there is clear evidence suggesting the attacks originated in terrorist training camps inside Pakistan.

But speaking to the BBC, Mr Zardari said there was still no conclusive evidence to substantiate the claim.

However he promised Pakistan would take action if a link was proved.

More than 170 people died in last month's attacks in Mumbai (Bombay), which India blamed on the Lashka-e-Taiba militant group.

Full investigation

Mr Zardari told the BBC's Alan Little in Islamabad that Pakistan was prepared to act if adequate evidence of any Pakistani complicity in the attacks emerged.

LASHKAR-E-TAIBA Jihadi organisation based in Pakistan Formed towards the end of the Afghan war against the Soviets Blamed for hundreds of attacks in the region since 1990 Listed as a "terrorist group" by the US and UK

"If that stage comes, and when it comes, I assure you that our parliament, our democracy, shall take the action properly deemed in our constitution and in our law," he said.

He said that Western intelligence agencies had not offered firm evidence to justify claims that the attacks were orchestrated from Pakistani soil and that he would not jump to conclusions until a full investigation had been conducted.

Mr Zardari said claims that the sole surviving attacker had been identified by his own father as coming from Pakistan had not been proven. The man has been named as Mohammed Ajmal Amir Qasab and is in Indian police custody.

The Pakistani president also said Hafiz Saeed, the leader of the Jamaat-ud-Dawa charity, would remain under house arrest.

Pakistan says that terrorism is a common enemy

"Let me assure you that if there is any investigation to be found pointing towards his involvement in any form of terrorism, he shall be tried for that reason," the president said.

Jamaat-ud-Dawa is accused of being a front for Lashkar-e-Taiba, a charge it denies.

Mr Zardari said that he had asked India to co-operate in an investigation and he would not leap to judgement while that investigation was continuing.

He said that while he was not in denial about Lashkar-e-Taiba's continued activities, ''when you ban an organisation they emerge in some other form''.

Our correspondent says the president's denial will further dismay India, and frustrate Britain and America, which are exerting intense pressure on Pakistan to take action.

'Hiccup'

Meanwhile, Pakistani Foreign Minister Shah Mehmood Qureshi has expressed regret after his Indian counterpart said peace moves between the countries were on hold because of the Mumbai attacks.

But Mr Qureshi said relations between the two countries - which both have nuclear arms - would recover.

"This unfortunate incident has been a setback... to the extent that our composite dialogue is at a pause at the moment," Mr Qureshi said.

"But I am confident that we will overcome this hiccup... the future of Pakistan demands good neighbourly relations with India, so it's my responsibility to develop good bilateral relations."

Mr Qureshi said that the two countries had a "common objective, a common challenge and a common enemy" in relation to "terrorism".