Typhoon Xangsane unleashed fierce winds and rains as it slammed into the northern and central Philippines today, killing at least seven people and shutting down the capital amid widespread floods and damage, officials said.

Deadly bombings in Baghdad and Indonesia and fear of terrorism in the United States, Britain, Israel and elsewhere cast shadows over New Year celebrations around the world.

Philippines police today arrested four men at a warehouse southeast of Manila as they unloaded more than 6,600lbs of ammonium nitrate without a licence.

At least 23 people have died and at least 86 others are injured after a fire on board a ferry in the central Philippines today.