Mugabe warns businesses over profiting from crisis

ZIMBABWE'S President Robert Mugabe has threatened a state of emergency if businesses profiteer from the country's economic crisis.

The move, which could give Mugabe even more sweeping powers to punish opponents if political power-sharing talks fail, came after it was announced Zimbabwe was knocking ten zeros off its hyper-inflated currency – a move that turns ten billion dollars into one.

In a televised address, Mugabe warned: "Entrepreneurs across the board, don't drive us further. If you drive us even more, we will impose emergency measures. They can be tough rules."

But in a glimmer of possible rapprochement in Zimbabwe's political turmoil, opposition leader Morgan Tsvangirai revealed he had talks with Mugabe last week for the first time in years and discussed the "pitfalls in any future government" that might emerge from the talks.

But he did not indicate their meeting produced any agreement.