The Egyptian president, Hosni Mubarak, has appointed a new prime minister - his first action after being sworn in earlier today for a fourth six-year term in office.

The new prime minister, Atef Obeid, will take over from Kamal Ganzouri, whose government resigned automatically following Mr Mubarak's swearing-in ceremony.

In an address to parliament, Mr Mubarak stressed the need for Egypt to reform its economy to compete in the global marketplace.

Diplomats say the appointment of Mr Obeid - an economist who's been leading Mr Mubarak's privatisation programme - is a signal that movement towards a more open economy could now accelerate. The BBC Correspondent in Cairo says that Mr Mubarak made only passing reference in his address to the need for greater democratisation.