Netanyahu to form Israel cabinet

Benjamin Netanyahu, the leader of the right-of-centre Likud party, has been asked to form Israel's next government.

Likud was the second largest party in Israel's recent election but Mr Netanyahu was thought most likely to be able to form a coalition as a majority of seats in parliament were won by right wing parties.

Mr Netanyahu said Israel faced "great challenges" including the global economic crisis and what he said was Iran's wish to obtain nuclear weapons.

Katya Adler reports.