World highlights

• The US fought for World Bank President Paul Wolfowitz to keep his job yesterday, saying he had made mistakes but should not be fired despite a bank finding that he broke rules in promoting his companion. In what appeared to be a coordinated move to stave off European pressure for his dismissal, the administration said the former US deputy defence secretary and architect of the Iraq war had not committed a "firing offence."

• EU countries agreed to open up their wealthy markets fully to imports from former colonies with phased-in access for rice and sugar, but put off a decision on when to open the banana market. The European Commission said the move would help reach new trade deals with nearly 80 African, Caribbean and Pacific countries to replace current preferential arrangements that have been struck down by the World Trade Organisation.

• A bomb killed 25 people in northwest Pakistan, while in the capital opposition politicians walked out of parliament, forcing the chamber to postpone a debate on weekend violence in Karachi. No one claimed responsibility for the suspected suicide blast in a hotel lobby in Peshawar, capital of North West Frontier Province.

• Senior allies of Nicolas Sarkozy called for order in troubled conservative ranks yesterday after the French president-elect indicated he was ready to parachute a popular Socialist into his cabinet. Mr Sarkozy takes office today and is expected to unveil his new government by the end of the week, with the left-wing Bernard Kouchner, who co-founded the charity Doctors Without Borders, poised to become foreign minister.

• US evangelist Jerry Falwell, a leader of the religious right who battled in the political arena against abortion and homosexuality, died yesterday after collapsing in his Virginia office. Mr Falwell, 73, was found unconscious in his office and was taken to a nearby hospital. He had a history of congestive heart problems.