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BBC news 2012-01-17

BBC News with Marion Marshall

Italy says it will declare a state of emergency over the cruise liner lying capsized off the west coast and provide funding to help avert any environmental disaster. The stricken vessel was carrying more than 2,000 tonnes of diesel. Six people are known to have died in the accident and 16 are still missing. Bethany Bell is at the accident site.

Concern is growing about the fuel on the wreck of the Costa Concordia. The ship's tanks were full, and there are fears for the environment. The area where the ship capsized is a maritime park known for its pristine waters. Italy's environment minister said work to avoid a spill is underway, but he said the risk for the island is high and time is running out. Meanwhile, the owners of the cruise ship have accused the captain Francesco Schettino of deliberately going off course. The captain, who's been detained for questioning, has denied any wrongdoing.

The international credit rating agency Standard & Poor's has downgraded the eurozone bailout fund from the top AAA spot to AA+. Correspondents say the move could make it more difficult for the fund to raise cheap bailout money. With the details, here's Andrew Walker.

Standard & Poor's move follows downgrades last week for nine eurozone governments including France, which lost its own AAA rating. The bailout agency gets its creditworthiness from the financial strength of the eurozone governments which guarantee its debts. The loss of its AAA status is likely to make it a little more expensive and difficult for the agency to borrow money to lend on to countries in difficulty. Spain and Italy are two large countries which might seek its help, so Standard & Poor's move complicates efforts to stabilise the eurozone.

Following a weekend of violence that left three dead and 40 injured, the Libyan authorities say they are preparing a force to disarm suspected Gaddafi loyalists still holding out against the new government. Gabriel Gatehouse reports from Tripoli.

The defence ministry says the force will consist of fighters from a wide range of towns and cities across western Libya. The aim, a spokesman told the BBC, is to disarm militias operating in the towns and countryside around Gharyan, 80km south of the capital. The defence ministry believes these militias remain loyal to the Gaddafi regime. The country's interim leader this month warned of the possibility of civil war if Libya's militias are not disarmed. This move is clearly aimed at furthering that objective though no time frame has been set for the new force to be operational.

The Pakistani Supreme Court has declared that the Prime Minister Yousuf Raza Gilani could be in contempt of court for failing to reopen corruption cases against President Zardari and other politicians. The court has ordered the prime minister to appear before the bench this week. Ministers said the government respected the judiciary and that Mr Gilani would attend the hearing on Thursday.

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One of the six contenders for the Republican presidential nomination in the United States, Jon Huntsman, has dropped out of the race. He's endorsed the party's current front-runner.

"I believe it is now time for our party to unite around the candidate best equipped to defeat Barack Obama. Despite our differences and the space between us on some of the issues, I believe that candidate is Governor Mitt Romney."

Mr Huntsman warned the other candidates against what he called the toxic nature of some of their campaigning against Mr Romney. Mr Huntsman, an ex-governor and former ambassador to China under the Obama administration, is seen by many Republicans as too moderate. He'd been lagging in the opinion polls and didn't do well in the first two primaries.

Nigeria's trade unions have announced that they've suspended their week-long strike against the rise in fuel prices. The announcement followed a cut in petrol prices. The unions said they'd acted to save lives after receiving information that the security forces had been ordered to use all means to end protests. Many Nigerians are demanding a return to the original price of fuel, but the government argues that the $8bn subsidy can be better used in poverty reduction programmes.

The Egyptian government has asked the International Monetary Fund for $3.2bn in support. Egypt turned down a similar package last June. Ongoing political instability has caused the economy to deteriorate, producing a growing budget deficit and currency pressures. Correspondents say Egyptians had hopes of an economic revival after the downfall of President Mubarak.

A cloud of ash caused by a volcano in Chile has closed an airport in neighbouring Argentina just days after it had reopened. The closure of the airport in Bariloche comes three days after flights had resumed following a seven-month suspension because of the ash. The reopening had been welcomed with triumphant headlines.

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