Obama’s speech

Barack Obama, the first black president of the US, has delivered an inauguration speech which did not avoid the challenges America faces.

The 44th president said he had taken his historic oath of office "amidst gathering clouds and raging storms".

"That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred," he said.

The new president also discussed the US economy, saying homes, jobs and businesses have been lost in the slump.

He said: "Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation."

He also said American schools fail too many children and that the way the country uses energy had caused issues.

But Mr Obama went on to offer his nation hope and to urge Americans to work together to overcome challenges.

He said people had chosen "hope over fear, unity of purpose over conflict and discord".

The economy, he said, needed "bold and swift" moves to create jobs and bring growth. He also spoke of a need to restore "the vital trust between a people and their government".

Evoking the pioneering spirit of the US, Mr Obama said it was "risk-takers, the doers, the makers of things" that had carried America to prosperity.

He paid tribute to the men and women who "struggled and sacrificed and worked till their hands were raw so that we might have a better life".

He went on: "Starting today we must pick ourselves up, dust ourselves off, and begin again the work of America."

President Obama spoke to people and governments around the world, who are watching his progress closely.

America is "a friend of each nation and every man, woman and child who seeks a future of peace and dignity, and we are ready to lead once more", he said.

Mr Obama said US troops would start to leave Iraq and work to end fighting in Afghanistan. He said he wanted to "seek a new way" with the Muslim world.

In a reference to his significance as the first black president, Mr Obama hailed the progress in race relations.

He said: "A man whose father less than 60 years ago might not have been served at a restaurant can now stand before you to take a most sacred oath."

He said it was "the meaning of our liberty and our creed - why men and women and children of every race and every faith can join in celebration".

At the end of his inauguration address, the president called on Americans not to falter under the tests they face.

He spoke of the first president, George Washington, who told Americans to "come forth to meet" danger when on the verge of defeat in the War of Independence.

He used his words from 1777 and told them to face challenges "with hope and virtue" so that future generations could enjoy "the gift of freedom