Egypt's new president mulls cabinet

The new Egyptian president began selecting a new government as his supporters pursued a sit-in to pressure the ruling military to hand over full powers.

Egypt's first democratically elected president Mohamed Morsi has begun selecting a new government as his supporters pursue a sit-in to pressure the ruling military to hand over full powers to the Islamist.

After a tight race in which Morsi was forced to reach out to pro-democracy groups, the politician who resigned from the Muslim Brotherhood to take the top job is expected to include ministers who will have the support of his movement's election allies.

Despite the historic victory in which Morsi was on Sunday declared the first civilian president of Egypt, he still has to contend with a ruling military seeking to retain broad powers and with a precarious economy.

The Muslim Brotherhood that fielded Morsi in the election to replace ousted leader Hosni Mubarak has said it would press on with a sit-in to pressure the ruling generals to relinquish more powers to Morsi.

On Monday, Morsi, once a prisoner under Mubarak's regime, was moving into the presidential palace and had begun talks to appoint his cabinet, days before the military is scheduled to transfer power, a spokeswoman said.

"He has already started, with a list of names he is considering. He says he will declare the cabinet soon," said Nermine Mohammed Hassan, a campaign spokeswoman.

State television showed images of the bearded 60-year-old sitting at a desk in the presidential palace, and others of Morsi sitting next to military ruler Field Marshal Hussein Tantawi during a visit to the military headquarters.

The military-appointed cabinet offered its resignation on Monday, state media reported, adding that it would assume caretaker responsibilities until Morsi forms a new cabinet.

An official with the military, which took charge after Mubarak's overthrow in the uprising last year, told AFP the transfer is set for June 30.