Ten Things You Need to Know Today: Wednesday 16 May 2012

1. IMF: 'PREPARE FOR MESSY EXIT' BY GREECE

Christine Lagarde, head of the IMF, warned eurozone governments last night to be "technically prepared for anything" as Greece headed into a new round of elections that might result in a "quite messy" exit from the euro is Athens rejected the terms of its bail-out.

Grexit: what happens if Greece leaves the euro?

2. HOLLANDE 'WILL WORK WITH' MERKEL

New French President Francois Hollande pledged to work with Germany to resolve the EU's economic crisis at a meeting with Chancellor Angela Merkel yesterday, but he added that he would "renegotiate" limits on the amount of debt countries can hold. Merkel said she would "consider growth measures".

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D'oh! An awkward first date for HoMer (that's Hollande and Merkel)

3. HODGSON NAMES ENGLAND SQUAD

England manager Roy Hodgson has named his squad for the Euro 2012 tournament in Poland and Ukraine this summer. As expected Manchester United defender Rio Ferdinand has been axed, but young Arsenal midfielder Alex Oxlade Chamberlain is included along with Andy Carroll. Liverpool skipper Steven Gerrard will be captain.

England squad: Ferdinand 'angry', fans not happy either

4. DERBY FIRE WAS STARTED WITH PETROL

Police have revealed that petrol was used to start a house fire that killed six children in Derby. The blaze began when petrol was poured through the letterbox and ignited in an arson attack on Friday. Mick Philpott, the father of the children, said he and his family had been overwhelmed by support since the fire.

5. OBAMA TEASES BECKS OVER UNDERWEAR AD

President Obama teasingly told David Beckham that he was "a rare man who can be that tough on the field and also have his own line of underwear". The pair met at the White House yesterday to celebrate Beckham's team LA Galaxy's win in the US Major League Soccer Championship.

Barack Obama ribs David Beckham in White House video

6. MLADIC WAR CRIMES TRIAL BEGINS

The war crimes trial of Ratko Mladic, 70, has begun in The Hague. The so-called 'Butcher of Bosnia' is charged with 11 crimes, including genocide and crimes against humanity relating to the 1995 Srebrenica massacre of 8,000 Muslims and the 1992-95 siege of Sarajevo. His trial is expected to last up to three years.

7. MAY HECKLED AT POLICE FEDERATION

Home Secretary Theresa May was heckled at the Police Federation conference today as she used her speech to justify budget cuts of 20% in England and Wales. Last night Federation chairman Paul McKeever said May was "on the precipice of destroying a police service that is admired and replicated throughout the world".

8. KING WARNS OF 'STORM' FROM EUROZONE

The eurozone crisis is the greatest threat to the UK's economy, Mervyn King said today, warning of the "risk of a storm heading our way" from Europe. The Governor of the Bank of England was delivering his quarterly inflation report, which says that inflation will stay above the target 2 per cent level for the "next year or so".

UK growth forecast cut – but are Mervyn King's figures optimistic?

9. ROYAL DIAMOND SELLS FOR $10M

A 35-carat diamond worn in 1610 by Marie de Medici at her coronation as Queen of France has sold for $9.7m at an auction in Geneva. The diamond, called the Beau Sancy, has always belonged to a European royal family. It was once pawned by Mary Stuart to fund Charles II's return to the English throne after the English Civil War.

10. HOT TICKET: COSTELLO'S REVOLVER SHOW

Elvis Costello is currently touring his Revolver show throughout Britain. Costello performs classics such as Alison, Oliver's Army and Pump it Up, alongside newer tunes from recent albums including National Ransom. Brighton Centre tonight, City Hall Newcastle 18 May, Albert Hall, London 23 and 24 May. "Thrilling", says The Daily Telegraph.

Elvis Costello revels as ringmaster of rock variety show