Manufacturing sector grows in December: ISM

(Reuters) - The manufacturing sector grew for a 17th straight month in December, adding to recent evidence that a recovery in the economy was picking up steam, according to an industry report released on Monday.

The Institute for Supply Management said its index of national factory activity rose to 57.0 last month from 56.6 in November. That was in line with the 57.0 median forecast of the 57 economists surveyed by Reuters.

A reading above 50 indicates expansion in the sector.

Ashes: England on top as rain hits Sydney Test match

Australia slid from 105-1 to 134-4 as England ended day one of the final Ashes Test on top in rainy Sydney.

Tim Bresnan was the most successful bowler, taking 2-47 as England made the most of overhead cloud cover and a pitch offering some seam movement.

Rain took the players off for 90 minutes in the middle of the day and England picked up two late wickets before a second and final stoppage.

Michael Clarke made just four in his first Test as Australia's captain.

His fortunes contrasted with those of debutant Usman Khawaja, the 24-year-old left-hander displaying plenty of confidence before coming unstuck late on and top-edging a sweep off Graeme Swann to depart for 37.

Khawaja was caught by Jonathan Trott at square-leg, and that was the last act of a day which had seen Shane Watson (45) make yet another start without registering a major score, while Phillip Hughes (31) compiled his best score in eight Test innings against England.

Hughes fell to Chris Tremlett, while James Anderson got through 20 overs and was unlucky not to pick up at least one wicket of his own.

In his first Test as captain with Ricky Ponting out injured, Clarke arrived early for the coin toss, and looked a little nervous. He could be granted the role on a permanent basis later this year if Australia pull off a win in Sydney, and thus stop England winning the series.

After undisciplined performances from the top order in previous Tests - and whether or not galvanised to change tactics by Clarke - Watson and Hughes addressed the new ball with caution. Even so, the first hour was a difficult period for the batting side.

Germany, US in 'spy satellite' cahoots

THE United States and Germany are jointly developing secret spy satellites under the guise of a commercial programme despite opposition from France, leaked US diplomatic cables showed.

The project, named HiROS, envisions the construction of an undetermined number of high-resolution observation satellites capable of spotting any object on the planet down to a size of just 50cm, according to classified cables from US embassy in Berlin leaked to WikiLeaks and obtained by Norwegian daily Aftenposten.

The satellites will have the capacity to take infrared images at night and to send images much quicker back to earth than the satellites currently in service, the cables showed.

Due to the controversial nature of the programme, US and German officials have decided it should be presented as a civilian project with environmental aims, run by commercial entities.

But in reality it is "under the total control" of German intelligence service BND and the German aerospace centre DLR, the cables showed.

The US embassy cables quoted in Norwegian by Aftenposten cover a period from February 2009 to February 2010.

Khawaja's test debut is Muslim history in making

Much has been made of Usman Khawaja's international debut, making him the first Muslim to play test cricket for Australia.

Pakistan-born Usman Khawaja is the first Muslim to represent Australia 
in test cricket. (Greg Wood/Getty Images)

Commentators have talked about the Pakistan-born batsman being a pioneer and a trailblazer for the next generation of cricketers in a country where the bulk of test cricket recruits have come from Anglo-Saxon stock.

Former test opener Justin Langer has praised Khawaja's talent, and stand-in test captain Michael Clarke has commended his attitude.

The 24-year-old Khawaja doesn't think his background elevates his achievement above most test debuts.

"Not really. It's probably being the first Pakistani-born to play for Australia is probably more [significant] than my religious beliefs because they're quite personal to me," the stylish left-hander said. "You can make something up of anything."

He even made reference to left-arm spinner Michael Beer, who was also selected to make his debut in the fifth Ashes test against England on Monday.

"You can say Michael Beer is the first person who sticks his tongue out 24-7 to play for Australia," Khawaja joked.

Khawaja's debut innings of 37 was memorable for its start. With Australia struggling at 55-1 after Phil Hughes' dismissal off the ball before lunch, he hit Chris Tremlett for two and pulled the England paceman for four with his first two deliveries in the international arena.

"As soon as I got out there, it just felt like the best thing ever," Khawaja said. "I was playing for Australia and the crowd was right behind me, so it was awesome."

He raced to 15 from eight deliveries, before settling into his role as a No. 3 batsman in test cricket — something no other batsman on debut has done for Australia since Justin Langer in 1993.

"I had a ball out there. It was a good start — got all the anxiousness out of my system," he said. "I was just loving being out there in the middle."

Actor Pete Postlethwaite dies: Your memories

Pete Postlethwaite originally planned to be a priest

Oscar-nominated British actor Pete Postlethwaite has died at the age of 64, a spokesman has announced.

Journalist and friend Andrew Richardson said the actor, who was appointed OBE in 2004, died peacefully in hospital in Shropshire after a lengthy illness.

In 1994, he was nominated for an Oscar for In The Name of the Father.

Actor Bill Nighy, who performed with Postlethwaite at Liverpool's Everyman Theatre in the 1970s, paid tribute to "a rare and remarkable man".

"I was honoured by his friendship - he is irreplaceable," Nighy added.

Postlethwaite was made an OBE in 2004

Broadcaster Stephen Fry, meanwhile, wrote on Twitter: "The loss of the great Pete Postlethwaite is a very sad way to begin a year."

Actor Simon Pegg said on Twitter that Postlethwaite was "one of our finest actors", adding that he "first saw him at the RSC in 1986 - owned the stage he did".

And former deputy prime minister Lord Prescott, also writing on Twitter, said the actor's films Brassed Off and Age of Stupid "had a real effect on me and our government".

Lord Prescott has credited 1996 film Brassed Off - about the struggles faced by a colliery brass band after the closure of their pit - as the inspiration for a Labour regeneration programme for coalfield communities.

King Lear

Postlethwaite's friend Mr Richardson said the actor, who also starred in films including The Usual Suspects and Baz Luhrmann's film adaptation of Romeo and Juliet, had carried on working in recent months despite receiving treatment for cancer.