US global dominance 'set to wane'

The US will face more competition at the top of a multi-polar global system US economic, military and political dominance is likely to decline over the next two decades, according to a new US intelligence report on global trends. The National Intelligence Council (NIC) predicts China, India and Russia will increasingly challenge US influence. It also says the dollar may no longer be the world's major currency, and food and water shortages will fuel conflict. However, the report concedes that these outcomes are not inevitable and will depend on the actions of world leaders. It will make sombre reading for President-elect Barack Obama, the BBC's Jonathan Beale in Washington says, as it paints a bleak picture of the future of US influence and power. The US will remain the single most important actor but will be less dominant "The next 20 years of transition to a new system are fraught with risks," says Global Trends 2025, the latest of the reports that the NIC prepares every four years in time for the next presidential term. Washington will retain its considerable military advantages, but scientific and technological advances; the use of "irregular warfare tactics"; the proliferation of long-range precision weapons; and the growing use of cyber warfare "increasingly will constrict US freedom of action", it adds. Nevertheless, the report concludes: "The US will remain the single most important actor but will be less dominant."

Bush 'seeks to ease wildlife law'

The Bush administration wants to help mining and drilling projects go ahead. US environmentalists have accused President George W Bush of trying to rush through changes to the Endangered Species Act in his last days in office. They say the changes could take away protection for animals and plants facing possible extinction. The Bush administration wants to make it easier for drilling, mining and major construction projects to go ahead without a full scientific assessment. Under current rules, the impact of such projects must be assessed by experts. The changes proposed by the Bush administration would let federal agencies make the decisions without a full scientific assessment as to the likely impact on the environment. Mr Bush has already been criticised by environmentalists for adding fewer than 10 species of plant and animals a year to the endangered list. That contrasts with former President Bill Clinton, who added an average of 65 species a year. Mr Bush has until Friday to publish the new rules, if they are to take effect before he leaves office. If he presses ahead, environmental groups and some states are almost certain to challenge the decision in the courts. President-elect Barack Obama will take office on 20 January, 2009.

US car companies seek $25bn aid

The bosses of the three biggest US carmakers, Ford, GM and Chrysler, have asked Congress for a $25bn bail-out. They told a Senate hearing that without the rescue package, their firms risked collapse, and warned of broader risks to the US economy. GM chief executive Rick Wagoner said the firm needed a loan to span the "financial chasm" that had opened up. However, Republicans and the White House do not want to use the $700bn bank rescue to help car firms. GM has warned it could run out of cash in a matter of weeks and cannot wait until President-elect Barack Obama - who has promised to help the industry - is sworn in in January. The BBC's Richard Lister in Washington says the last thing Mr Obama wants is to oversee the death of manufacturing icons during his first few months in office. Mr Wagoner told the Senate banking committee that the industry's predicament was not due to failures by management but because of the deepening global financial crisis. I'm concerned... we're about to employ the 'ready, fire, aim' approach to problem-solving "It's about saving the US economy from a catastrophic collapse," he said. But sympathy for the industry appeared to be sparse among senators from both sides, our correspondent says. The committee chairman, Christopher Dodd, a Democrat, said that the industry was "seeking treatment for wounds that were largely self-inflicted". But he agreed that "hundreds of thousands would lose their jobs" if the companies were allowed to collapse. Alabama Senator Richard Shelby, a Republican, also voiced doubts about the rescue package. "As we consider altering the Treasury bail-out programme to provide cash and assistance to the domestic auto-manufacturers, I'm concerned that, once again, we're about to employ the 'ready, fire, aim' approach to problem-solving," he said. Republican critics say the larger financial crisis is not the only reason why the biggest US carmakers are in trouble. They say that the Ford, GM and Chrysler's production was inefficient, and that their labour costs were higher than many of their foreign rivals. Mr Wagoner said that despite some public perceptions that GM was not keeping pace with the times "we were well on the road to turning our North American business around". "What exposes us to failure now is the global financial crisis, which has severely restricted credit availability and reduced industry sales to the lowest per-capita level since World War II," he said.

Clash over $700bn bank bail-out

Henry Paulson's testimony on the bail-out. US Treasury Secretary Henry Paulson has clashed with members of Congress over the $700bn US financial bail-out plan. Mr Paulson told a Congressional committee that injecting cash into banks was the most effective way to stabilise the financial system. However critics on the committee said that more of the money should be used to help struggling homeowners avoid losing their homes. Mr Paulson said the bail-out would not be "a panacea" to cure economic woes. "It will take a while to get lending going and repair our financial system, which is essential to an economic recovery," Mr Paulson said. Mr Paulson and Federal Reserve chairman Mr Bernanke were giving evidence to the House financial services committee about the Troubled Asset Relief Programme (TARP) scheme. The scheme was approved by Congress last month to shore up the US banking system and prevent financial collapse. Earlier this month, the White House abandoned the original strategy behind the rescue. Instead of buying up the banks' toxic mortgage debts, as first proposed under the deal, the bail-out fund is being used to buy shares in banks to help boost their balance sheets.

California wildfires wreak havoc

Firefighters in southern California are continuing to battle three separate wildfires that have destroyed hundreds of homes and forced thousands to flee. The fires, to the north, north-west and south of Los Angeles have burnt through dry forest, hitting suburban areas. After visiting the city, California Governor Arnold Schwarzenegger said it had been "a very tough few days". States of emergency are in place in four counties but calmer winds are helping fire crews contain the blazes. More than 800 homes, ranging from multi-million dollar mansions to more modest mobile homes have been destroyed. About 22,000 acres (8,900 hectares) have been scorched and 50,000 people have been ordered to evacuate their homes from Santa Barbara, north-west of Los Angeles, to the suburbs in the south-east of the city. The most threatening fire is now to the south-east of Los Angeles in Orange and Riverside counties. It broke out early on Saturday and quickly spread through a number of suburban communities running up into the canyons of Chino Hills State Park. Firefighters were braving 50ft flame lengths as they swept across the mobile homes Initially separate blazes have merged into what fire officials are calling the Triangle Complex fire. As of Sunday morning, it was mostly uncontained and had burnt through more than 10,000 acres (4,000 hectares).