Saturday 23 July 2011

Barack Obama in emergency talks to secure US debt deal

 

Barack Obama in emergency talks to secure US debt deal

John Boehner and Barack Obama in the Cabinet Room of the White House on 23 July 2011

 

Mutual acrimony has surrounded the talks to avert a debt default

 

US Economy

  • Used home sales fall in June
  • Moody's to review US debt rating
  • Trade deficit widens to $50bn
  • Jobs creation stalls in June

US President Barack Obama has held an emergency meeting with congressional leaders in a last-ditch bid to avert an economically catastrophic debt default.

Mr Obama called the meeting after talks with Republican House Speaker John Boehner broke down on Friday.

Both Democrats and Republicans are divided on how to control future spending.

Congress must approve a plan to raise America's debt ceiling before the 2 August default deadline.

If the US fails to meet the deadline to raise the $14.3tn limit on US borrowing, the Treasury could run out of money to pay all of its bills - which could lead to interest rate rises, threaten the US economic recovery and in turn the global recovery.

Mr Obama was joined at the negotiating table on Saturday by his Vice-President Joe Biden, Mr Boehner, House Minority leader Nancy Pelosi, Democratic Senate Majority leader Harry Reid and Senate Republican leader Mitch McConnell.

The Associated Press reported that they were unsmiling as the meeting began and most of them avoided reporters when they left the White House.

The White House afterwards urged Congress to "refrain from playing reckless political games with our economy... and do its job, avoiding default and cutting the deficit".


Who owns the $14.3tn debt?

  • US government owes itself $4.6tn
  • Remaining $9.7tn owed to investors
  • They include banks, pension funds, individual investors, and state/local/foreign governments
  • China: $1.16tn, Japan: $0.91tn, UK: $0.35tn
  • Deficit is annual difference between spending and revenue, $1.29tn in 2010
  • Congress has voted to raise the US debt limit 10 times since 2001

Source: US Treasury, May 2011, Congressional Research Service, Congressional Budget Office

Both Mr McConnell and Mr Boehner issued statements saying they intended "to find a bipartisan solution to significantly reduce Washington spending and preserve the full faith and credit of the United States".

Aides said they expected to work through the weekend to come up with bill that would be acceptable to both sides for Monday.

On Friday, Mr Boehner accused the president of moving "the goal posts", saying they had been close to a deal until Mr Obama demanded $400bn in tax increases on top of about $800bn in revenues that would have been reaped through a comprehensive rewrite of the tax code.

Mr Obama had declared his deal as "extraordinarily fair", offering to cut $650bn from Medicare, Medicaid and other entitlements, as well as slashing $1tr in discretionary spending.

Republicans have been unwilling to consider raising new taxes to counter the growing budget deficits.

The Democrats have been opposed to cutting popular healthcare and welfare programmes for pensioners and the poor.

 

Iran: 'Nuclear' scientist shot dead in Tehran

 

An Iranian scientist believed to have links to the country's nuclear programme has been shot dead outside his home in Tehran, Iranian media say.

Isna news agency named him as Daryoush Rezaei, 35, adding that his wife was wounded and rushed to hospital.

In 2010, nuclear scientist Massoud Ali Mohammadi was killed by a remote-controlled bomb in Tehran.

Iran blamed that attack on Israeli secret service Mossad. Israel has long warned about Iran's nuclear programme.

Some reports said the latest attack involved assailants on a motorcycle, who shot him in the neck in front of his house.

Mr Rezaei was said to be a physicist at a Tehran university, where media reports described him variously as a teacher, researcher and student.

Several have linked him to the country's nuclear programme.

Isna said that Mr Rezaei was an expert with links to the Atomic Energy Organisation of Iran.

'New provocation'

The US, Israel and many Western nations have opposed Iran's atomic programme, fearing it may be a front to creating a nuclear bomb.

Iran insists its nuclear programme is for purely peaceful purposes.

This week, Iran said it was installing newer and faster centrifuges at its nuclear plants, with the goal of speeding up its uranium enrichment process.

Enriched uranium can be used for civilian nuclear purposes, but also to build atomic bombs.

The French government condemned the move as a "new provocation".

 

Fifa bans Mohamed Bin Hammam for life over attempted bribery claims

 Fifa presidential candidate Mohamed Bin Hammam has been banned from football for life after being found guilty of attempted bribery.

The governing body's ethics committee made the decision on Saturday after a two-day hearing.

Bin Hammam was accused of attempting to buy votes ahead of last month's Fifa presidential election.

The 62-year-old Qatari withdrew from the election, leaving Sepp Blatter to be re-elected unopposed.

The decision makes Bin Hammam the most senior figure to be banned by Fifa in its 107-year history.

David Bond's blog

With Fifa's ethics committee throwing the book at Bin Hammam, Sepp Blatter will feel he has started to deliver on his promises to steer the Fifa ship back onto the right course

Read more from David's blog

The former head of the Asian Football Confederation is now unable to be involved "in any kind of football-related activity at national and international level for life", Fifa ethics committee deputy chairman Petrus Damaseb said on Saturday.

In a statement, Bin Hammam's legal council said he will continue to fight the case through every legal route available to him.

The statement added: "The Fifa ethics committee has apparently based its decision upon so called 'circumstantial' evidence which our case has clearly demonstrated was bogus and founded on lies told by a senior Fifa official.

"We have strictly observed the legal rules regarding the confidentiality of these proceedings and not shared our evidence, which is compelling, with the media.

"Fifa, either directly or through third parties, appears to have done the opposite with selective and continual leaking of documentation that has been part of these proceedings to the media in order to influence public opinion and create bias.

Timeline

  • 18 March 2011 - Mohamed Bin Hammam announces intention to challenge Sepp Blatter for the Fifa presidency
  • 25 May - Fifa announces it is to investigate four officials - including Bin Hammam and vice-president Jack Warner - following bribery allegations made by CONCACAF general secretary Chuck Blazer
  • 27 May - Bin Hammam suggests Fifa president Sepp Blatter knew about alleged bribery payments, and that there is a conspiracy to stop him running for Fifa president
  • 29 May - Bin Hammam withdraws his presidential candidacy but vows to clear his name over allegations. Fifa suspends Bin Hammam and Warner from all football-related activity and opens full investigation
  • 1 June - Sepp Blatter re-elected as Fifa president after running unopposed
  • 20 June - Warner resigns from his posts in international football, avoiding Fifa investigation
  • 23 July - Fifa ethics committee bans Bin Hammam from football-related activity for life

"We are confident of the strength of our case and invite Fifa to make available now to the media a full transcript of these proceedings."

Bin Hammam, along with former Fifa vice-president Jack Warner, was suspended after a leaked report revealed four Caribbean Football Union (CFU) associations were either offered money, or saw the offence occur, during a meeting in May.

It was alleged that cash-stuffed envelopes containing up to $40,000 (£25,000) were handed to the delegates during the meeting in Port of Spain, Trinidad and Tobago.

The report said there was "comprehensive, convincing and overwhelming" proof that bribes had been paid to officials to support Bin Hammam's campaign for the Fifa presidency, and that Warner had facilitated this.

Warner's resignation from Fifa last month meant he did not have to face the ethics committee.

Two further officials from the CFU, Debbie Minguell and Jason Sylvester, were each banned from football-related activity for a year for their involvement in the bribery attempt.

In a blog post on Friday, Bin Hammam raised fears that he would not recieve a fair trial at the hearing.

"It seems likely that Fifa has already made its decision weeks ago," he wrote.

"So none of us should be completely surprised if a guilty verdict is returned."

Before the hearing, Bin Hammam suggested he would be compelled to appeal if the committee found him guilty of the charges.

"Rest assured that justice will eventually prevail whether through the Fifa ethics committee, the Court of Arbitration for Sport or if necessary, through other courts or legal proceedings in courts where we will be equal and no special privileges will be granted to either party," he wrote.

The ethics committee has now asked Fifa's legal department to prepare cases against Caribbean football leaders who are suspected to have knowingly covered up the instances of Bin Hammam's bribery attempts.

 

BBC News - Amy Winehouse found dead, aged 27

The BBC's David Sillito: "Her private life was something of a mess."


Related Stories

Singer Amy Winehouse, 27, has been found dead at her north London home.

A Metropolitan Police spokesman confirmed that a 27-year-old woman had died in Camden and that the cause of death was as yet unexplained.

The Brit and Grammy award-winner had struggled with drink and drug addiction and had recently spent time in rehab.

Her record label Universal called her "a gifted musician, artist and performer", adding: "Our prayers go out to Amy's family, friends and fans."

She pulled out of a comeback tour last month after a disastrous appearance at her first gig.

Jeered at gig

Winehouse cancelled the European tour after being jeered at the show in Serbia, when she appeared too drunk to perform.

For 90 minutes, she mumbled through parts of songs and at times left the stage - leaving her band to fill in.


At the scene

Dozens of bouquets and candles have been left on the railings at the end of the road where Amy Winehouse lived.

Around 70 people, many of them under the age of 18, have gathered here at Camden Square, the place where neighbours say the singer had recently bought a home.

Most people here say they are fans of the singer who - despite a troubled personal life - was admired for the talent that shot her to fame. At least four people have claimed to be friends of the Winehouse family. All have appeared deeply distressed, asking officers for information.

Eyewitnesses say two ambulances arrived at the address just after 1600 BST and that police cars arrived shortly afterwards. Well over a dozen police officers are now quietly standing guard outside her home.

A car arrived earlier with four or five people who were visibly upset. The indication was that they seemed to know the singer as they were actually allowed through into the road.

A statement by the Metropolitan Police is expected shortly.

She had recently finished a course of alcohol rehabilitation in London and at the time was under strict instructions not to drink.

A section of the road where the singer lived was cordoned off on Saturday evening, as journalists, local residents and fans gathered at the police tapes.

Forensic officers were seen going in and out of the building.

Winehouse had won widespread acclaim with her 2003 debut album, Frank.

But it was 2006's Back to Black which brought her worldwide stardom, winning five Grammy Awards.

The record's producer Mark Ronson said in a statement: "She was my musical soulmate and like a sister to me.

"This is one of the saddest days of my life."

Hip-hop producer Salaam Remi, who also worked on Winehouse's albums Frank and Back To Black, paid tribute to her on Twitter saying: "Very Very Sad Day. Just lost a Great Friend and a Sister."

He added: "RIP my baby SiS Cherry Winehouse. Love ya always."

News of her death has also prompted other tributes from other celebrity friends.

Floral tributes left at Camden Square in north London

 

Fans have left floral tributes to Winehouse at Camden Square

TV presenter Kelly Osbourne tweeted: "i cant even breath right now im crying so hard i just lost 1 of my best friends. i love you forever Amy & will never forget the real you!"

Rolling Stone Ronnie Wood announced he is to dedicate his Saturday night show on Absolute Radio to Winehouse. He said: "It's a very sad loss of a very good friend I spent many great times with".

He added a reunion performance by his former group The Faces in Hurtwood, Surrey, would also be dedicated to the singer.

BBC Radio 1 DJ Fearne Cotton wrote: "Can not believe the news. Amy was a special girl. The saddest news."

Daily Telegraph rock critic Neil McCormick said he was "utterly shocked" at her death.

Last appearance

He said she had appeared focused when giving an "incredible performance" for a recent studio recording of a duet with Tony Bennett.

"It's deeply sad. It's the most completely tragic waste of talent that I can remember," he added.

Doug Charles-Ridler, co-owner of Winehouse's favourite Camden pub The Hawley Arms, called her "a special person with a good soul," adding, "this should not have happened".

Winehouse made her last public appearance on Wednesday night when she joined her goddaughter Dionne Bromfield on stage at The Roundhouse in Camden.

The singer danced with Bromfield and encouraged the audience to buy her album in the impromptu appearance before leaving the stage.

At the time she pulled out of the tour, her spokesman had said everyone wanted to do everything to "help her return to her best".

 

BBC News - Norway mourns island youth camp and Oslo attacks

Norwegians are mourning the victims of a massacre at an island youth camp and a bombing in the capital Oslo.

At least 85 people died when a gunman opened fire at the Utoeya camp on Friday, hours after a blast in the government quarter killed seven. Another four are missing on the island.

A 32-year-old Norwegian man was charged over both attacks, but police say it is possible another person was involved.

The suspect surrendered when approached by police officers, they said.

Start Quote

People were falling dead right in front of me”

End Quote
Adrian Pracon
Survivor

Police chief Sveinung Sponheim said they took 45 minutes to reach the island, and the gunman was apprehended 45 minutes after that.

Mr Sponheim added that there were still bodies or body parts in buildings damaged by the Oslo blast, which he confirmed was caused by a car bomb.

However, the buildings were currently too fragile and dangerous to search, and there were still undetonated explosives there, the police chief said.

It was possible the total death toll from the two attacks could rise to 98, he said.

Prime Minister Jens Stoltenberg comforted victims and relatives alongside King Harald, Queen Sonja and Crown Prince Haakon in the town of Sundvollen near the island.

Mr Stoltenberg said he was "deeply touched" by the meetings.

"We will do whatever we can to give them as much support as possible," he said.

 

BBC News - Norway mourns island youth camp and Oslo attacks

 

King Harald said: "It's now important that we stand together and we support each other and we do not let fear conquer us."

Fertiliser used?

The suspect is reported by local media to have had links with right-wing extremists.

He has been named as Anders Behring Breivik. Police searched his Oslo apartment overnight and are questioning him.

The BBC's Richard Galpin, near the island which is currently cordoned off by police, says that Norway has had problems with neo-Nazi groups in the past but the assumption was that such groups had been largely eliminated and did not pose a significant threat.

Meanwhile a farm supply firm has confirmed selling six tonnes of fertiliser to Mr Breivik, who is reported to have run a farming company. Speculation has been rife that fertiliser could have been used in the Oslo bomb.

The number killed in the island shooting spree, which is among the world's most deadly, had been put at 10 on Friday - but soared overnight. Hundreds of young people had been attending the summer camp organised by the governing Labour Party on Utoeya island.

Eyewitnesses described how a tall, blond man dressed as a policeman opened fire indiscriminately, prompting camp attendees to jump into the water to try to escape the hail of bullets.


Island shooting suspect

Anders Behring Breivik

 

  • Describes himself as a Christian and conservative on Facebook page attributed to him
  • Grew up in Oslo and attended Oslo School of Management
  • Set up farm through which he would have had access to fertiliser - which can also be used to make a bomb

Some of the teenagers were shot at as they tried to swim to safety.

Armed police were deployed to the island but details of the operation to capture the suspect remain unclear. After his arrest he was charged with committing acts of terrorism.

Police say they discovered many more victims after searching the area around the island. They have warned the death toll may rise further as rescue teams continue to scour the waters.

The gunman is reported to have been armed with two weapons, one of them an automatic rifle.

NRK journalist Ole Torp told the BBC the suspect went to the island dressed in a police uniform, asked people to gather round and then started shooting.

The attacks sparked strong international condemnation, with US President Barack Obama expressing his condolences and offering support.

Britain's Queen Elizabeth spoke of her shock and sadness in a letter to King Harald.

The BBC's John Sopel in Oslo says the city is strangely quiet and there is a heavy military presence, with checkpoints around the government quarter.

Officials have urged people to stay at home and avoid central areas of the city.

Map of central Oslo and Utoeya

 

Are you in Oslo and did you see what happened? Get in touch and let us know if you witnessed this event. You can send eyewitness accounts using the form below.

Andy Coulson investigated for perjury while working at No 10 | Media

 

 

Former No 10 ­communications boss Andy Coulson was a witness in a 2010 trial ­involving Scottish politician Tommy Sheridan. Photograph: Oli Scarff/AP

Andy Coulson, the prime minister's former director of communications, is being investigated by police for allegedly committing perjury while working for David Cameron in Downing Street.

The development renews pressure on the prime minister over his judgment in hiring the former News of the World editor and represents the third criminal investigation Coulson faces, adding to allegations that he knew of phone hacking while in charge of the tabloid and authorised bribes to police officers.

Strathclyde detectives confirmed that they had opened a perjury inquiry centred on evidence Coulson gave in court last year that led to a man being jailed.

Coulson was a major witness in a trial involving Tommy Sheridan, the former MSP who was accused of lying in court when winning a libel action against the News of the World. Coulson had been the editor of the Sunday tabloid when it ran a story accusing Sheridan of being an adulterer who visited swingers' clubs.

Sources say police will examine Coulson's denial of any knowledge of phone hacking and payments to police officers at the Sheridan trial against the evidence held by the Scotland Yard investigation.

At the trial Coulson also denied knowing that the paper paid corrupt police officers for tip-offs, which contradicts recent disclosures that News International has uncovered emails showing payments were made to the police during his editorship.

Coulson, who was called as a witness in December 2010, told the court that he had no knowledge of illegal activities by reporters while he was editor of the newspaper.

He also claimed: "I don't accept there was a culture of phone hacking at the News of the World."

Sheridan was jailed for three years in January after being found guilty of perjury during his 2006 defamation action against the NoW. He had successfully sued the newspaper over its claims.

Also giving testimony alongside Coulson were Bob Bird, the News of the World's Scottish editor, and Douglas Wight, the Scottish edition's former news editor.

Bird denied being part of a "culture of phone tapping" and Wight, who is now the paper's books editor, told the court he was not aware of any payment for illegal activities.

Strathclyde police's assistant chief constable, George Hamilton, said: "Following our discussions with the crown, we have now been instructed to carry out a full investigation into allegations that witnesses gave perjured evidence in the trial of Tommy Sheridan and into alleged breaches of data protection and phone hacking.

"We will also be looking to see if we can uncover any evidence of corruption in the police service or any other organisation related to these inquiries.

"However, I must stress that no specific allegations regarding corruption have been presented to us at this time.

"We will be working with the Metropolitan police and with the other Scottish forces as we progress with the investigation.

"I have put in place a structure that will allow us to work effectively together, but also to ensure that any member of the public who has a concern regarding the safety and security of their private data and information is able to register that concern and to have it properly investigated.

"By its very nature, this investigation will require us to allocate varying levels of resources to it. There is a huge amount of material to consider and, potentially, a large number of people to contact.

"This will mean that the investigation is likely to be a lengthy one. However, you have my absolute assurance that it will be a thorough one. We will do everything we can to find out the facts and to report all examples of wrongdoing."

Sheridan's lawyer, Aamer Anwar, said: "Over two weeks ago we provided a detailed dossier of allegations of perjury, phone hacking and breach of data to Strathclyde police and called for a robust investigation.

"Over £2m was spent by the police on investigating Mr and Mrs Sheridan and we were told it was in the public interest. I expect now to see a similar ruthlessness and determination in dealing with the News of the World."

A News International spokeswoman said: "We can confirm that we have been contacted by police on this matter. We can't say anything else."

Earlier this month it emerged that Coulson had hired one of Scotland's top QCs, Paul McBride.

Phone hacking: 7/7 victims fear police passed numbers to News of the World | Media

 

 

The bomb destroyed a number 30 double-decker bus in Tavistock Square in central London. Photograph: Dylan Martinez/Reuters

Survivors of the 2005 London bombings have asked lawyers to investigate allegations that Scotland Yard "sold" or passed on the confidential contact list of the 7 July victims to reporters working for News International.

Beverli Rhodes, chair of the Survivors' Coalition Foundation, said that a number of 7/7 victims suspected that personal contact details, including mobile phone and ex-directory landline numbers as well as home addresses, were passed by officers to News of the World journalists.

The former security consultant, who specialised in counter-terrorism, said she had been contacted by a number of survivors of the bombings who said they had been approached by News of the World reporters with bogus stories of how they obtained their details, which they believe may have originated with the police.

Their concerns have been discussed with the London law firm McCue and Partners. A spokesman said the survivors were considering their next step, having made requests for the Met to provide answers.

Rhodes said: "Scotland Yard had the full list of survivor contact details. I am pretty sure that is how the News of the World got my home address. I had only moved there maybe three or four weeks before News of the World reporters turned up. The only place where my new details were stored were the post office, bank, doctor and Scotland Yard.

"The suspicion is that the full list was given or sold on to the newspaper or News International or fell into someone's lap when visiting the Yard. One of the survivor's phone numbers is not listed and only known to me and family, but they had addresses to homes, home phone numbers, mobile phones."

She said that after the hacking scandal gathered momentum following the Milly Dowler revelations, several survivors approached her asking if she had provided their personal details to News of the World reporters.

"Two News of the World reporters told them they had got their details from me. They asked: 'Did you give my number to these reporters?', and I said: 'No, never'. These reporters knew an awful lot of specific information and asked very detailed questions."

Rhodes is now demanding that McCue and Partners officially request details from the Metropolitan police to establish if their concerns are substantiated. Scotland Yard has started to contact the relatives of 7/7 victims to warn them they were targeted by the News of the World.

It is understood that bereaved family members may have had their mobile phone messages intercepted by Glenn Mulcaire, a private investigator employed by the paper, in the days following the London bombings.

The Dowler revelations are likely to increase pressure on Andy Coulson, the paper's former editor, and David Cameron, who hired him as his spokesman. Last week recently resigned News International chief executive Rebekah Brooks, in response to questions from Paul Farrelly MP, said she was away when Dowler's phone was hacked and the paper was edited by her deputy, Coulson, or associate editor, Harry Scott. Sources have indicated Coulson was editing the paper then. "It was the Milly Dowler revelations that broke the camel's back," Farrelly said. "Rebekah Brooks has let it be known that she was away at the time, so this brings it all back to Coulson."

Brooks's comments will raise further questions about the cache of emails exchanged between senior editors on the paper which have now been handed to police. There is speculation that they will show who on the paper commissioned the hacking of Dowler's phone.

Although Rhodes has not been contacted by the Met, she has spoken to other survivors. She was one of more than 700 victims of the attacks, which killed 52 people, and was severely injured by the bomb that hit the Piccadilly line tube near King's Cross.

Rhodes, from Ashford, Kent, said the request from reporters involved sensitive details on compensation claims and the nature of injuries. She provided the names of two News of the World reporters who previously had not been connected to the phone-hacking scandal.

A McCue and Partners spokesman said the firm was evaluating the allegations and "considering their position".

Among those known to have been contacted by officers working on Operation Weeting, the Met's investigation into phone hacking, are Graham Foulkes, whose son David was killed at Edgware Road tube station. He said they told him his mobile phone number, ex-directory landline number and address had been found in records made by Mulcaire. Another is Sean Cassidy, father of a victim, and Paul Dadge, famous for helping victims during the attack, who has also been reported to have been emailed by the Met and told his name was in Mulcaire's records.

Last week Scotland Yard was asked to investigate claims that News of the World reporters paid officers to obtain people's locations by tracking their cell phone signals – known as "pinging".

Bailout rescue: euphoria wanes as doubts emerge | Business

 

 

The German chancellor, Angela Merkel, said she was confident that the Bundestag would vote through the Greek rescue package. Photograph: John Macdougall/AFP/Getty Images

A rally on European stock markets evaporated on Friday night as investors began to voice concerns about whether the eurozone rescue plan for Greece would be enough to stem the currency bloc's debt crisis.

One leading investment strategist described the new deal as "less sticking plaster and more of a proper bandage", but warned the underlying problems in the Greek economy had not been addressed. Another said the voluntary 21% "haircut" agreed by the banks was less than a third of what was required.

The credit ratings agency Fitch added to worries over the deal after it declared Greece would be in temporary default as the result of the €109bn (£96bn) bailout. The move is likely to be matched by rival ratings agencies.

The FTSE 100 finished up just 35 points at 5935, adding to small gains on the main French and German exchanges following a volatile day that saw most shares sink before a moderate recovery. Markets had initially cheered the deal and pushed up US stock prices overnight.

British and German government bonds, considered a safe haven, ended higher as investors started to have doubts about the scheme, which involves offering Greece, Ireland and Portugal longer to pay off their loans and a cut in interest payments.

Greece was also offered a relatively small one-off reduction in the value of its outstanding loans that will reduce its debt-to-GDP ratio from the 160% it was expected to reach before 2015.

French prime minister François Fillon said the deal guaranteed there would be no default by member states in the 17-nation bloc. However, comments by German banking bosses that the deal would need to be examined added to the air of uncertainty.

Germany's BdB association of private banks said that while an agreement was "an important step," the industry needed more information on its involvement.

The Institute of International Finance, which led talks for private investors, said 90% of creditors will sign up. Deutsche Bank, HSBC, BNP Paribas, Allianz and Axa are among the firms ready to support it.

Holders of Greek debt who are not on the institute's list of supportive firms include Royal Bank of Scotland, Italy's Unicredit and the French Crédit Agricole banking group.

The offer is voluntary, raising the possibility that some investors, such as hedge funds, will not participate and wait to be repaid at the full price.

Standard Life said the deal was a positive move but it would continue to shun European shares and sovereign bonds, leaving it underweight in both.

Richard Batty, the fund manager's global investment strategist, said the bailout package still failed to tackle the economic situation in Greece and other debt-laden countries: "This programme is less sticking plaster and more of a proper bandage but that still doesn't deal with the underlying issues. You have to make these ex-growth economies like Greece and Italy more productive and able to compete in global markets. Without higher productivity and growth it will prove difficult to pay down debts, even with the improved deal."

Gary Jenkins, head of fixed income research at Evolution, argued the compromise to limit private sector bank losses to 21% was not enough to save Greece from years of austerity: "We have long thought that the most likely outcome for Greek bondholders would be that they would take a small haircut first followed by a larger one at a later date.

"To give Greece a fighting chance they probably need a writedown close to 65%," he said.

Analysts also warned that the need to put the package to a vote in the parliaments of each eurozone member state meant the deal could yet be derailed.

"Some of the euphoria that was in the market as the result of [Thursday's] events has eased off a little bit," said Eric Wand, strategist at Lloyds Corporate Markets.

"Some of the measures that were announced have still got to be passed by national parliaments – particularly with regard to the EFSF [European Financial Stability Facility]. And there may be some concerns about the sustainability of the debt situation given the easing growth backdrop," Wand added.

Germany's Angela Merkel said she was confident the Bundestag would vote through the package after she secured private sector involvement against French fears it would trigger a mass withdrawal of private funds across the eurozone.

France's BNP Paribas is set to take the biggest hit of around €950m, as the largest holder of Greek government debt outside the country.

Fillon said France's debt would increase by €15bn by 2014 taking into account the cost of providing a guarantee. The increase in debt raises the risk that France may overshoot the government's debt targets, which foresee a peak at 87% of GDP in 2012.

Ireland said the reduction in interest rates and extension on much of its lending could save €1bn a year in costs. Prime minister Enda Kenny thanked UK chancellor of the exchequer George Osborne for matching the eurozone plan with a reduction to 3.5% on the interest payments of a separate loan Britain offered last year.

Chinese bullet trains collide | World news

Chinese firefighters work to rescue survivors after a high-speed train derailed and two of its carriages fell off a bridge after lightning knocked out power on the line. Photograph: Str/AFP/Getty Images

At least 11 people have died after two high-speed trains crashed into each other in China's eastern province of Zhejiang on Saturday, causing two carriages to fall off a bridge, the state news agency Xinhua reported.

Another 89 people have been sent to hospital, it added. Each carriage could carry about 100 people, Xinhua said.

The accident occurred after the first train was hit by lightning and lost power, and was then rear-ended by another bullet train, Xinhua added, citing provincial television.

Pictures on state television's main news channel showed one carriage on the ground under the bridge, with another hanging above it.

The government has spent billions of dollars boosting the railway network of the world's most populous country and has said it plans to spend $120bn (£73bn) a year, over several years, on railway construction.

But the vast network has been hit by a series of scandals and safety incidents over the past few months. Three railway officials have been investigated for corruption so far this year, according to local media reports.

In February, Liu Zhijun was sacked as railways minister for "serious disciplinary violations". He had spearheaded the investment drive into the rail sector over the last decade.

The flagship Beijing-Shanghai high-speed rail line that opened earlier this month has been plagued by power outages, leaving passengers stranded for hours on stuffy trains on at least three times since it was opened.

The Beijing-Shanghai link is the latest and most celebrated portion of a network the government hopes will stretch over 28,000 miles by the end of 2015.

Mass Syrian protest against Assad regime adds to death toll | World news

Syrian anti-regime protesters carry a picture of President Assad that reads, "Leave. We don't trust you. You will leave and we will stay because Syria is ours. Enough of injustice and killing," during a rally in Damascus. Photograph: AP

Hundreds of thousands of Syrians turned out for anti-regime demonstrations across the country on Friday with at least 11 people reported killed by security forces and tensions mounting in the runup to the Ramadan holiday.

Casualty figures – collated by two Syrian human rights groups – were down on previous weeks but the numbers of demonstrators appeared to be some of the largest yet seen in the four-month uprising.

In Aleppo, Syria's second city, unarmed military cadets were seen marching with civilian protesters and calling for the overthrow of the regime and the departure of President Bashar al-Assad.

Damascus was unusually quiet after large demonstrations closer to the city centre last week but protests were reported from Deir Ezzor in the east to Suweida in the south. All were called to express solidarity with the people of the central city of Homs – the focal point of recent unrest – where some 40 people have been killed in the last few days amid worries of rising sectarian tensions. Five of the latest casualties were killed there.

Amateur video footage posted on the internet showed many thousands gathering after prayers on a day dubbed "Friday of the descendants of Khalid", a reference to a disciple of the prophet Muhammad who unified the Arabian Peninsula in the seventh century and is buried in Homs.

Nearby Hama, scene of a notorious 1982 massacre during the rule of Assad's father Hafez, saw hundreds of thousands in central Assi Square. But there was no visible security presence in the city.

Large protests were also reported for the first time from Aleppo, where one of Friday's fatalities was killed. Syrian TV reported that a civilian had been killed by an "armed gang" – the regime's habitual term for almost all protests.

In Damascus there were signs of a more restrained approach, with security forces firing into the air or using tear gas to prevent trouble spreading.

Activists reported checkpoints and a heavy security presence in Rukn ad-Deen, a largely Kurdish neighbourhood in the north-east of the city and the far eastern area of Qaboun where a mass funeral was held on Thursday. But protests went ahead as usual in Midan, a conservative district close to the old walled city.

Live streaming and better-quality pictures have been emerging from Syria this week despite the government's attempts to curb social media and temporarily block access to email services and Twitter.

In Midan a video clip showed protesters clapping and shouting: "The people are free, Syria is free." Footage from Aleppo showed a man drenched in blood being carried away. And in largely Kurdish Qamishli on the border with Turkey, teargas was fired to break up a protest.

Expressions of solidarity with Homs – pinned down by troops and tanks on the streets – came at the end of a week when at least 40 people were killed there, some of them reportedly in sectarian clashes.

But reports of sectarian strife have been hotly contested by activists and some analysts. "The protest movement does appear to be predominantly peaceful and non-sectarian but as state control weakens … people with other grievances may be taking advantage," said a western diplomat in Damascus.

That may be the case in Homs' northern neighbourhoods where Alawites and Sunnis are segregated into adjacent neighbourhoods.

Reports of revenge killings and violence on the part of "Shabiha" thugs allied with the government are multiplying. Some sources said state media reports of the targeting of a military bus near Rastan, north of Homs, on Thursday, killing two, may have been a case of a revenge attack.

In Homs activists and residents reported a rise in defections, including eight military intelligence personnel who changed sides after a brutal crackdown.

Activists said that several tank crews this week defected and joined protesters in the eastern town of Albu Kamal bordering Iraq's tribal Sunni heartland.

Footage from Aleppo showing unarmed army cadets marching with civilians was a striking novelty but it was difficult to judge its scale or wider significance.

Syrian activists are warning protesters who imitate slogans from Egypt and Tunisia (where the army changed sides and helped overthrow both presidents) such as "the people and the army are one hand!" that they should not count on the military changing sides. "This is a very different situation here and we know that," said one Damascus activist.

Delegations from Brazil, India and Turkey were reported to be in the capital to meet Assad amid reports that he will soon deliver his fourth speech since the uprising began. It is understood he will offer to abrogate article eight of the Syrian constitution, which provides for a leading role for the ruling Ba'ath party.

Assad is also rumoured to be considering calling presidential elections – overseen by delegations from abroad – several months after a new political parties law is put into effect.

"This could be the only peaceful way out of the situation," said one analyst. "But I am not sure the street will accept it at this stage."

In other developments, protesters destroyed a statue of Hafez al-Assad in Hasaka, prompting security forces to open fire, al-Arabiya TV reported. Hundreds more marched in the southern town of Suweida while demonstrations took place in the north-western province of Idlib.

According to the Syrian Observatory for Human Rights, 1,419 civilians and 352 members of the security forces have been killed since 15 March, while more than 1,300 people have been arrested.

Debt ceiling talks between Obama and Republicans collapse | World news

Debt ceiling talks between Barack Obama and John Boehner have broken down, throwing the US into economic uncertainty. Photograph: Manuel Balce Ceneta/AP

The US is on the brink of a major economic crisis after negotiations between Barack Obama and Republican Congressional leaders over the national debt dramatically broke down on Friday.

Obama, showing anger, passion and verbosity rare in public in his two-and-a-half years as president, called a press conference at the White House at short notice to express his frustration with the Republicans.

He told reporters there had been "a breakdown in trust" between the White House and the Republican leadership. In a snub to the president, the Republican leader in the House, John Boehner, failed to return calls from the White House throughout the day, with his office saying he was unavailable. Boehner finally called the president on Friday evening to inform him the Republicans were walking away from weeks of negotiation aimed at resolving the country's debt crisis.

The collapse in talks comes with 10 days left until the US, for the first time in its history, faces the prospect of defaulting. If it fails to raise its $14.3tn (£8.7tn) borrowing ceiling, there will be serious consequences for not only the US economy but other countries around the world.

The Republican withdrawal came just a day after Obama and Boehner had seemed close to an agreement on the broad outlines of a package to cut $3tn in federal spending over the next 10 years, and to raise some taxes. But Boehner was unable to sell it to diehard Republicans in the House, many of whom were elected last year with the support of the Tea party movement, which seeks deep cuts in spending but no tax rises.

In a letter published just minutes after Obama began to speak, Boehner said: "In the end, we couldn't connect. Not because of different personalities, but because of different visions for our country." He blamed Obama for failing to agree to deep cuts in social security and other welfare benefits and for demanding that taxes be raised. "For these reasons, I have decided to end discussions with the White House," Boehner said.

An exasperated Obama called Democratic and Republican Congressional leaders to meet at the White House at 11 o'clock on Saturday morning to offer alternative proposals for dealing with the looming deadline on the debt ceiling.

The president insisted that the debt ceiling had to be raised or Americans across the country would suffer. "We've got to get it done. It is not an option not to do it," he said. If there is no deal, he said, he could not guarantee that the 70 million cheques due to go out to social security recipients, veterans and others on 3 August, the day after the deadline, would be sent.

The US chamber of commerce expressed nervousness over the prospect of America's credit rating being downgraded.

Federal payments to state governments could also be hit. State governors are laying down emergency plans, with California, among others, looking for alternative sources of borrowing to tide it over. Banks and businesses are also working feverishly preparing for worst-case scenarios.

The crisis is the biggest test of wills yet between Obama and hardline Republicans endorsed by the Tea party movement. It dwarfs the stand-off earlier this year when the federal government faced shutdown.

According to the Treasury, America reached its borrowing limit of $14.3tn on 16 May but is able to keep servicing its debts until 2 August.

Mark Blyth, professor of politics at Brown University and author of the forthcoming book Austerity: The History of a Dangerous Idea, said no one knew what the impact of defaulting would be because the situation was unprecedented.

He said the US had a long-term, serious problem, given its enormous fiscal gap and dependence on China, which has been bailing the US out and which has twice expressed concern about the impact of the default crisis on its investments. The US economy "is like Wile E Coyote who runs off the cliff and it takes him a while to realise it. What has been keeping him up is Chinese blowing air up," Blyth said.

Obama, up for re-election in November next year, has seen a sharp decline in his popularity because of the sluggishness of the US recovery from recession, with unemployment frustratingly failing to budge from just over 9%.

In spite of the negative ratings on his handling of the economy, he is doing better on the deficit issue, according to polls, with many independents, the voters who usually decide elections, blaming the Republicans and preferring a mix of spending cuts and tax increases rather than spending cuts alone.

Credit ratings agencies such as Moody's and Standard & Poor's have put the US on notice that its triple-A rating could be downgraded, which would be a national humiliation.

A glimpse into what might happen was provided by Minnesota earlier this month, when the state had to close down, with disruption reaching even minor elements of daily life, from beer supplies to adoption papers.

Ross Baker, professor of politics at Rutgers University, compared the US economy, with its huge debt, to a patient who needs both first aid and long-term care.

"The Democrats are the first-aid squad with their concern over the lack of money to stimulate the economy and produce jobs. The Republicans are in charge of the long-term care facility with their preoccupation with multi-generational debt levels," Baker said.

Norway attacks: Utøya gunman boasted of links to UK far right | World news

 

 

Anders Brehing Breivik, the man accused of the murders on Utøya and the bomb in Oslo, claimed to have links to far right groups across Europe. Photograph: Getty

Anders Brehing Breivik, the man accused of the murder of at least 91 Norwegians in a twin bomb and gun massacre, boasted online about his discussions with the far right English Defence League and other anti-Islamic European organisations.

The Norwegian prime minister, Jens Stoltenberg, said Norwegian officials were working with foreign intelligence agencies to see if there was any international involvement in the slaughter. "We have running contact with other countries' intelligence services," he said.

Breivik was arrested on Utøya island where he shot and killed at least 84 people, mostly teenagers, at a youth summer camp for supporters of Norway's Labour Party after bombing Oslo's government district just hours before.Dressed as a policeman, he ordered the teenagers to gather round him before opening fire on them. Survivors described how dozens of people were mown down. Edvard Fornes, 16, described how the gunman told the youths, "Don't be shy," and, "Come and play with me," before executing them. "There were two kids lying, hiding, in a ditch saying, 'please, please don't shoot us,' and he shot them."

Another youth, Ida Knudsen, 16, said she had been in a group of 100 who had initially ran from the killer, but that was reduced to around 60 as the gunman pursued them. Eventually she was one of 12 who climbed into a boat and escaped.

With the entire island a crime scene, officers were still combing the shoreline on Saturday and boats were searching the water for more bodies amid fears the toll could rise further. The police were continuing to investigate whether there had been a second gunman on the island.

The disclosure of Breivik's claimed links with other far right organisations came as details emerged about the rightwing Christian fundamentalist and freemason behind Norway's worst post-war act of violence.

It was revealed that the 32-year-old former member of the country's conservative Progress Party – who had become ever more extreme in his hatred of Muslims, left wingers and the country's political establishment – had ordered six tonnes of fertiliser in May to be used in the bombing. While police continued to interrogate Breivik, who was charged with the mass killings, evidence of his increasingly far right world view emerged from an article he had posted on several Scandinavian websites, including Nordisk – a site frequented by neo-Nazis, far right radicals and Islamophobes since 2009.

The Norwegian daily VG quoted one of Breivik's friends saying that he had become a rightwing extremist in his late 20s and was now a strong opponent of multi-culturalism, expressing strong nationalistic views in online debates.

Breivik had talked admiringly about conversations he had had with unnamed English Defence League members and the organisation Stop the Islamification of Europe over the success of provocative street actions leading to violence.

"I have on some occasions had discussions with SIOE and EDL and recommended them to use certain strategies," he wrote two years ago.

"The tactics of the EDL are now to 'lure' an overreaction from the Jihad Youth/Extreme-Marxists, something they have succeeded in doing several times already." Contacted about the allegation by email by last night the EDL had not answered.

The latest disclosures came as the Norwegian prime minister Jens Stoltenberg flew by helicopter to a hotel in the town of Sundvollen – close to the island of Utøya – where many survivors were taken and where relatives converged to reunite with their loved ones or to identify their dead.

"A whole world is thinking of them," Stoltenberg said, his voice cracking with emotion. He said the twin attacks made Friday the deadliest day in peacetime Norway. "This is beyond comprehension. It's a nightmare. It's a nightmare for those who have been killed, for their mothers and fathers, family and friends," he said.

Buildings around the capital lowered their flags to half-staff. People streamed to Oslo cathedral to light candles and lay flowers; outside, mourners began building a makeshift altar from dug-up cobblestones. On Saturday the Queen wrote to Norway's King Harald to offer her condolences and express her shock and sadness.

Breivik's Facebook page was blocked, but a cached version describes a conservative Christian from Oslo. The profile veers between references to lofty political philosophers and gory popular films, television shows and video games. The account appears to have been set up on 17 July. The site lists no "friends" or social connections.

Andy Coulson investigated for perjury while working at No 10 | Media

Former No 10 ­communications boss Andy Coulson was a witness in a 2010 trial ­involving Scottish politician Tommy Sheridan. Photograph: Oli Scarff/AP

Andy Coulson, the prime minister's former director of communications, is being investigated by police for allegedly committing perjury while working for David Cameron in Downing Street.

The development renews pressure on the prime minister over his judgment in hiring the former News of the World editor and represents the third criminal investigation Coulson faces, adding to allegations that he knew of phone hacking while in charge of the tabloid and authorised bribes to police officers.

Strathclyde detectives confirmed that they had opened a perjury inquiry centred on evidence Coulson gave in court last year that led to a man being jailed.

Coulson was a major witness in a trial involving Tommy Sheridan, the former MSP who was accused of lying in court when winning a libel action against the News of the World. Coulson had been the editor of the Sunday tabloid when it ran a story accusing Sheridan of being an adulterer who visited swingers' clubs.

Sources say police will examine Coulson's denial of any knowledge of phone hacking and payments to police officers at the Sheridan trial against the evidence held by the Scotland Yard investigation.

At the trial Coulson also denied knowing that the paper paid corrupt police officers for tip-offs, which contradicts recent disclosures that News International has uncovered emails showing payments were made to the police during his editorship.

Coulson, who was called as a witness in December 2010, told the court that he had no knowledge of illegal activities by reporters while he was editor of the newspaper.

He also claimed: "I don't accept there was a culture of phone hacking at the News of the World."

Sheridan was jailed for three years in January after being found guilty of perjury during his 2006 defamation action against the NoW. He had successfully sued the newspaper over its claims.

Also giving testimony alongside Coulson were Bob Bird, the News of the World's Scottish editor, and Douglas Wight, the Scottish edition's former news editor.

Bird denied being part of a "culture of phone tapping" and Wight, who is now the paper's books editor, told the court he was not aware of any payment for illegal activities.

Strathclyde police's assistant chief constable, George Hamilton, said: "Following our discussions with the crown, we have now been instructed to carry out a full investigation into allegations that witnesses gave perjured evidence in the trial of Tommy Sheridan and into alleged breaches of data protection and phone hacking.

"We will also be looking to see if we can uncover any evidence of corruption in the police service or any other organisation related to these inquiries.

"However, I must stress that no specific allegations regarding corruption have been presented to us at this time.

"We will be working with the Metropolitan police and with the other Scottish forces as we progress with the investigation.

"I have put in place a structure that will allow us to work effectively together, but also to ensure that any member of the public who has a concern regarding the safety and security of their private data and information is able to register that concern and to have it properly investigated.

"By its very nature, this investigation will require us to allocate varying levels of resources to it. There is a huge amount of material to consider and, potentially, a large number of people to contact.

"This will mean that the investigation is likely to be a lengthy one. However, you have my absolute assurance that it will be a thorough one. We will do everything we can to find out the facts and to report all examples of wrongdoing."

Sheridan's lawyer, Aamer Anwar, said: "Over two weeks ago we provided a detailed dossier of allegations of perjury, phone hacking and breach of data to Strathclyde police and called for a robust investigation.

"Over £2m was spent by the police on investigating Mr and Mrs Sheridan and we were told it was in the public interest. I expect now to see a similar ruthlessness and determination in dealing with the News of the World."

A News International spokeswoman said: "We can confirm that we have been contacted by police on this matter. We can't say anything else."

Earlier this month it emerged that Coulson had hired one of Scotland's top QCs, Paul McBride.

Phone hacking: 7/7 victims fear police passed numbers to News of the World | Media

The bomb destroyed a number 30 double-decker bus in Tavistock Square in central London. Photograph: Dylan Martinez/Reuters

Survivors of the 2005 London bombings have asked lawyers to investigate allegations that Scotland Yard "sold" or passed on the confidential contact list of the 7 July victims to reporters working for News International.

Beverli Rhodes, chair of the Survivors' Coalition Foundation, said that a number of 7/7 victims suspected that personal contact details, including mobile phone and ex-directory landline numbers as well as home addresses, were passed by officers to News of the World journalists.

The former security consultant, who specialised in counter-terrorism, said she had been contacted by a number of survivors of the bombings who said they had been approached by News of the World reporters with bogus stories of how they obtained their details, which they believe may have originated with the police.

Their concerns have been discussed with the London law firm McCue and Partners. A spokesman said the survivors were considering their next step, having made requests for the Met to provide answers.

Rhodes said: "Scotland Yard had the full list of survivor contact details. I am pretty sure that is how the News of the World got my home address. I had only moved there maybe three or four weeks before News of the World reporters turned up. The only place where my new details were stored were the post office, bank, doctor and Scotland Yard.

"The suspicion is that the full list was given or sold on to the newspaper or News International or fell into someone's lap when visiting the Yard. One of the survivor's phone numbers is not listed and only known to me and family, but they had addresses to homes, home phone numbers, mobile phones."

She said that after the hacking scandal gathered momentum following the Milly Dowler revelations, several survivors approached her asking if she had provided their personal details to News of the World reporters.

"Two News of the World reporters told them they had got their details from me. They asked: 'Did you give my number to these reporters?', and I said: 'No, never'. These reporters knew an awful lot of specific information and asked very detailed questions."

Rhodes is now demanding that McCue and Partners officially request details from the Metropolitan police to establish if their concerns are substantiated. Scotland Yard has started to contact the relatives of 7/7 victims to warn them they were targeted by the News of the World.

It is understood that bereaved family members may have had their mobile phone messages intercepted by Glenn Mulcaire, a private investigator employed by the paper, in the days following the London bombings.

The Dowler revelations are likely to increase pressure on Andy Coulson, the paper's former editor, and David Cameron, who hired him as his spokesman. Last week recently resigned News International chief executive Rebekah Brooks, in response to questions from Paul Farrelly MP, said she was away when Dowler's phone was hacked and the paper was edited by her deputy, Coulson, or associate editor, Harry Scott. Sources have indicated Coulson was editing the paper then. "It was the Milly Dowler revelations that broke the camel's back," Farrelly said. "Rebekah Brooks has let it be known that she was away at the time, so this brings it all back to Coulson."

Brooks's comments will raise further questions about the cache of emails exchanged between senior editors on the paper which have now been handed to police. There is speculation that they will show who on the paper commissioned the hacking of Dowler's phone.

Although Rhodes has not been contacted by the Met, she has spoken to other survivors. She was one of more than 700 victims of the attacks, which killed 52 people, and was severely injured by the bomb that hit the Piccadilly line tube near King's Cross.

Rhodes, from Ashford, Kent, said the request from reporters involved sensitive details on compensation claims and the nature of injuries. She provided the names of two News of the World reporters who previously had not been connected to the phone-hacking scandal.

A McCue and Partners spokesman said the firm was evaluating the allegations and "considering their position".

Among those known to have been contacted by officers working on Operation Weeting, the Met's investigation into phone hacking, are Graham Foulkes, whose son David was killed at Edgware Road tube station. He said they told him his mobile phone number, ex-directory landline number and address had been found in records made by Mulcaire. Another is Sean Cassidy, father of a victim, and Paul Dadge, famous for helping victims during the attack, who has also been reported to have been emailed by the Met and told his name was in Mulcaire's records.

Last week Scotland Yard was asked to investigate claims that News of the World reporters paid officers to obtain people's locations by tracking their cell phone signals – known as "pinging".

News International 'bullied Liberal Democrats over BSkyB bid' | Media

News International threatened to persecute the Liberal Democrats if Vince Cable did not advance its case, according to high-level sources. Photograph: Andy Rain/EPA

Rupert Murdoch's News International launched a campaign of bullying against senior Liberal Democrats in an attempt to force through the company's bid for BSkyB, high-level sources have told the Observer.

Lib Dem insiders say NI officials took their lobbying campaign well beyond acceptable limits and even threatened, last autumn, to persecute the party if Vince Cable, the business secretary, did not advance its case.

According to one account from a senior party figure, a cabinet minister was told that, if the government did not do as NI wanted, the Lib Dems would be "done over" by the Murdoch papers, which included the now defunct News of the World as well as the Sun, the Times and the Sunday Times.

The accounts are only now coming to light, say sources, because the minister involved feared the potential for damage to the party, which was already suffering a dramatic slide in popularity after going into coalition with the Tories. They chime with reports from senior figures in the Labour party who say that Murdoch executives issued threats to Ed Miliband's office after the Labour leader turned on NI when the news broke that murdered 13-year-old Milly Dowler's phone had been hacked into by the News of the World.

Labour insiders say NI executives made clear to Miliband's office that because he had chosen to "make it personal" they would do the same, implying they would attack him through their media outlets.

The pressure on the Lib Dems was at its most intense around the time that Cable decided to refer the BSkyB bid to Ofcom. However, it relented after Cable was removed by David Cameron from responsibility for the bid when he was taped by undercover reporters from the Daily Telegraph attacking Murdoch.

Cable was recorded saying to the reporters, who pretended to be constituents, saying that he had "declared war on Mr Murdoch and I think we're going to win". Insiders believe NI's interest then focused on the culture secretary, Jeremy Hunt, who took over responsibility for the bid from Cable. News International declined to comment on the bullying allegations.

The revelations will fuel the debate over Cameron's friendship with Rebekah Brooks, the former NI chief executive who was arrested a week ago. Labour MPs placed Cameron under intense pressure to reveal whether he had discussed BSkyB in any of his many meetings with Brooks or other NI executives since becoming prime minister.

It was revealed that Cameron had had 26 meetings with NI officials since becoming prime minister in May last year. Under sustained questioning in the Commons, he said only that he had had no "inappropriate" discussions with Brooks or other NI executives about the bid. Many MPs believe it unlikely, given the determined approach mounted to influence the Lib Dems.

Formal contacts between NI and Hunt continued right up to last month, during which the question of media plurality was discussed.

More details of the links between No 10 and News International were revealed as it emerged that NI entertained Downing Street special advisers more than any other organisation during the first seven months of this government. Figures from the Bureau of Investigative Journalism showed that almost a quarter of all lunches, dinners and hospitality enjoyed by Downing Street's inner circle came from Murdoch's company. Gabby Bertin, Cameron's official spokeswoman, was wined and dined nine times, including a trip to last year's Wimbledon championships.

Labour MP Paul Farrelly, a member of the culture, media and sport select committee, said: "After the phone-hacking scandal we know how deeply News International penetrated Downing Street and the Metropolitan police."

Meanwhile, Strathclyde police gave details of investigations into whether witnesses who gave evidence about phone hacking at the trial of jailed politician Tommy Sheridan – including Cameron's former director of communications, Andy Coulson – may have committed perjury. Coulson, then employed by Downing Street, told the trial in December that he had no knowledge of illegal activities by reporters while he was editor of the News of the World. He also claimed: "I don't accept there was a culture of phone hacking."

Assistant Chief Constable George Hamilton said: "We will also be looking to see if we can uncover any evidence of corruption in the police service or any other organisation related to these inquiries. However, I must stress that no specific allegations regarding corruption have been presented to us."

A News International spokeswoman said: "We can confirm that we have been contacted by police on this matter. We can't say anything else."

The problem with badger culls | Ben Goldacre | Comment is free

 

 

Trials have found ‘proactive culling’ of badgers more effective in reducing cattle TB than farmer-led culling. Photograph: Stefan Wermuth/Reuters

Squabbles between farmers and animal rights' protesters bore me senseless. This week, environment secretary Caroline Spelman announced that the scientific evidence supports her new policy of farmers killing badgers to prevent bovine TB. It's an overstatement, but more importantly, this story walks through several important issues in science.

Firstly, what works in principle may not work in practice. Bovine TB is a massive problem (and one reason why we pasteurise milk). Around 25,000 cattle were slaughtered last year because of it, and the cost to the taxpayer, since we compensate farmers, was £90m. Badgers carry TB, and about half of all cattle infections come from a badger source. It makes perfect sense that killing some badgers should reduce the number of cattle infections.

To test this hunch, 10 years ago the government took a very unusual step, and set up a proper trial: the Randomised Badger Culling Trial. This was a huge project, running from 1998 to 2007, in 30 separate 100km2 areas around England.

These study zones were grouped together into triplets. One zone in a triplet got repeated culling, roughly once a year ("proactive culling"). Another saw local badger culling after any TB outbreak in cattle ("reactive culling"). And a final zone was kept as a "control" region, with no culling. TB rates were surveyed in all of the areas.

You'd have thought this culling should do some good, or at least no harm. In fact, the "reactive culling" was stopped after a few years when the rates of cattle TB infections in these areas turned out to be higher than areas with no culling, by about 20%.

One suggested explanation was "perturbation". Badgers live in small groups, with territorial boundaries; if you kill some, the groups are disrupted, and the animals wander further afield, spreading infections more widely. But the results from the "proactive culling" were more interesting. In the 100km2 culling zone, cattle TB infections fell by about a quarter. But in the 2km-wide "ring" around the proactive culling zone, the number of TB infections in cattle rose by about a quarter, perhaps, again, because of "perturbation".

A 2km ring becomes less important when the culling area is larger, and mathematical modelling suggests that after 150km2, the extra TB infections in the ring are outweighed by the benefits in the cull zone. At this size, you prevent 23 of the 187 expected herd outbreaks, and so save £600,000 ( outbreaks each cost £27,000). The cost, however, using the cage-trapping method used in the trial, is £2.14m. This is why people concluded it wasn't worth the effort.

Here is the second science bit. The government is now introducing a kind of farmer-led culling. This costs around £500,000 for the same size area, and so now a cull becomes cost-effective, by a hair. But we also end up several steps away from the scientific evidence. First, we're assuming that results from small cull zones scale up neatly into larger ones, and that killing can be done uniformly without local perturbation.

But more importantly, the trial loses what evidence nerds call "external validity": the ideal perfect intervention, used in the trial, is very different to the boring, cheap, real-world intervention that the trial is being used to justify.

This is a common problem, and the right thing to do next is a new trial, this time in the real world, with no magic. The intervention could be the thing we're doing, and the outcome could be routinely collected bovine TB data, since that's the outcome we're interested in. This gives you answers that matter, on the results you care about, with the intervention you're going to use.

People worry that research is expensive, and deprives participants of effective interventions. That's not the case when your intervention and data collection are happening anyway, and when you don't know if your intervention actually works. Here, though, as in many cases, the missing ingredient is will.

Guardian books podcast: Crime fiction and children's summer reading | Books

Crime is everywhere in the Guardian this week, so we tracked down two upcoming writers to find out what the difference was between crime fiction and thrillers, and to ask them about their latest sorties into the genre.

The Irish writer Tana French talks about the importance of place to her Dublin-set novels, while Sophie Hannah explains why her locus is the relationship between her detectives, and why the term "psychological thriller" has to be taken with a pinch of salt. We also consult our Twitter community about their pick of the best crime novels.

Then we turn to children's fiction to find out what the best new summer reads are as schools close and everyone prepares to head off for the holidays. Plus we drop in to London's newest literary festival for children, Pop-Up, to meet Rastamouse.

Reading list:
Lasting Damage by Sophie Hannah (Hodder)
Faithful Place by Tana French (Hodder)
No Beast So Fierce by Eddie Bunker (NO Exit Press)
Chemistry of Death by Simon Beckett (Bantam)
Swag by Elmore Leonard (Phoen

 

Faces of fashion: Claridge's hires artist | Art and design

 

 

Linda Evangelista by David Downtown. Photograph: David Downtown

Claridge's is to install the fashion illustrator David Downtown as its first "fashion artist in residence". The appointment in effect makes Downtown the London hotel's official anti-paparazzo. Rather than stand outside with a camera and long lens he will sketch famous guests who have agreed to do a sitting.

The art deco hotel is a regular haunt of celebrities from the fashion, art and film worlds. Kate Moss hosted her 30th birthday party there, Marc Jacobs used the hotel as inspiration for his most recent catwalk show for Louis Vuitton and Victoria Beckham is a regular guest.

Downtown says there is a wishlist of stars that the hotel would like to sit for him but he is "sworn to secrecy". Downtown's sketches will go on public display as part of Claridge's art collection.

Urban swimming in Zürich | Travel | The Guardian

 

Dive bars … many of the lidos in Zürich, Switzerland, turn into bars at night. Photographs: Martin Rütschi/Zürich Tourism

Just a chronometrically perfect second – I am still in Switzerland, right? It's 11am on a Sunday, and everyone's semi-naked. Since yesterday, the pleasant spring weather has made way for a 10C temperature hike and Caribbean-issue sunshine. And the locals could not be more ready. As I stroll into Zürich's Arboretum Enge park, overlooked by the magisterial historic headquarters of some of the banks that have helped make this little city one of the world's wealthiest, a 360-degree panorama of prone, lotioned, swimwear-clad flesh wraps around me.

I should own up. I've never quite "got" Switzerland. Not that I'm unimpressed by its thrilling landscapes, pristine streets, pathologically efficient transport system and the occasional, shockingly enlightened, sociocultural example it sets the world (Dada, strong record on gay rights, eminently sane drug addiction policy, the band Yello …). But, given the recessive hedonism gene that makes me always want to discover a place with its hair down, I've always found the land of Heidi a little overly well-behaved, unworldly, closed.

And yet, all around me, perky young folk are flirting heroically and cracking open pre-lunch beers, couples cosy up on beach towels, and hamper-toting groups of friends stake out picnic spots. Where the park's flawless lawn rolls down to the edge of Lake Zürich, sunbathers and kids cool off with ducks and swans in the clear, pale-green water, while smart yachts and launches pepper the horizon and the Alps offer up the last of their snow in the distance.

For many of Zürich's highly cosmopolitan populace, the way to enjoy such a day is at one of the city's 18 thriving lidos, so I hand over my 7 Swiss francs (£5.50) to get into Seebad Enge, favourite of the well-groomed thirtysomething set. And quickly wonder why I bothered. There's barely a scrap of space to sit, let alone bask, on this modest pontoon on the lake. But I soon realise I've missed the point. For the Seebad Enge crowd, their lido is for chatting, showing off their latest beachwear and tattoos, a simple Mediterranean-style brunch from the cafe, and checking each other out.

As bathing culture goes, Zürich has quite a pedigree – 1837 saw the opening of its first lido, now a gorgeous, art nouveau wooden cloister on stilts over the Limmat, one of the city's two rivers. Now as then for women only, the Frauenbadi was followed by open-air swimming spots that cater to audiences from sports nuts to wellness aficionados to beach bums to party people looking for chilled-out beats and an afternoon cocktail or two.

And still it grows. This morning, I've already spent a couple of dreamy hours at the brand-new Thermalbad & Spa (thermalbad-zuerich.ch), a sleek public oasis incorporating the 100-year-old stone arches of a stunningly converted former brewery, and fed by one of Zürich's two hot springs. The journey it recommends through a series of pools, hot rooms and showers is relaxing, the Turkish bath-style hydro-massage invigorating, but it is the glorious rooftop infinity pool with its wraparound views of the city's whimsical spires and chichi hillside suburbs that makes the biggest impression. (The B2 boutique hotel will complement the spa from next spring.)


Barrfussbar, Zürich

Barfussbar

By night, many of Zürich's lidos take on new life, and together add up to the most distinctive and charming feature of the city's expansive and sophisticated after-dark offering. Come 8pm, the Frauenbadi reopens as the Barfussbar (barefoot bar), open to men and women, and hosts live music, dance nights and literature readings. At Oberer Letten, the Pier West bar takes over, entertaining a twentysomething crowd with relaxed dance music and dining from the neighbouring restaurant, Primitivo, while downriver Unterer Letten screens films for two weeks each summer.

Then there's Rimini Bar, night-time alias of Flussbad Schanzengraben, the city's men-only lido, where I start my night out. Cocooned from the busy streets by ivy-trailed ancient city fortifications and tall trees whose shade turns the water a deep turquoise, it is given a nightly makeover with fairy lights, rugs and floor cushions, and is a seductive and convivial place to sip and snack away an evening.

But I've come to explore the city's new frontier, its wild west, and as Rimini Bar starts to hit its Saturday-night stride, I set off for the suburb of Langstrasse. Sent into spiralling decline by the death of local industry in the 1980s, and still very evidently the centre of a red-light industry that's bigger than either Hamburg's or Amsterdam's, this residential district built by and for migrant workers in the late 19th century is now home to some 140 nationalities. Right now it's cresting a wave of gentrification that makes it the liveliest and most eclectic neighbourhood in town.

Langstrasse's slightly shabby but pleasant streets throng with restaurants serving cuisine from all over the world and bars that range from traditional to fashion-forward (arthouse cinemas Xenix and Riffraff both have buzzing bars), all charging significantly less toe-curling prices than in the city centre. Its hipster hub is Josefstrasse and the neighbouring streets – where pedestrianised blocks become informal piazzas by night – are lined with cool, quirky bars and stylish but unpretentious eateries. Alfresco dining and drinking, sometimes with live music, take over the area, subsiding after midnight when people head home or to a club, of which Zürich boasts the largest number per capita in Europe.

Beyond Langstrasse lies Zürich West, a former industrial zone that's in the process of a bold transformation. In Zürich's boom industrial years in the first half of the 20th century, turbine manufacturer Escher Wyss owned this 17-hectare plot, and so daunting is the scale of its broad thoroughfares, colossal railway bridges and monumental factory shells that only in the last few years has the city been ready to mount a concerted effort to reclaim, reinvent and integrate the area.


Zürich - Rimini Bar

Rimini Bar

While the plan is for boho-luxe loft-style living and versatile creative workspaces to gradually build new residential and professional communities here, for the visitor the main draws are the site's imposing topography and the imaginative uses being made of its unique features. The Schiffbauhalle, a vast ship-building hall, has been handsomely converted into a theatre, jazz club and the highly regarded LaSalle restaurant. The Viadukt project has brought together 60 independent, design-skewed retailers in repurposed railway arches, while a nearby column of well-worn shipping containers is the flagship store of Freitag, a local brand which makes achingly hip bags and accessories from recycled industrial materials. Meanwhile, the move to Zürich West of Eva Presenhuber's cutting-edge contemporary art gallery is seen by the art world as a significant seal of approval. But atmosphere? While the area positively reeks of exciting potential and there's no shortage of smart bistros and bars to visit of an evening, for now chances are you'll have the place pretty much to yourself.

Lured by the sounds of an open-air indie-rock gig, I keep on walking, crossing the Limmat to Wipkinger Park, and decide to wind up my night at a free mini-festival where a couple of thousand people are dancing by the stage or sitting by the river, sipping caipirinhas from the pop-up bar and smoking unusually fragrant cigarettes.

Wandering back towards town at 1am, I discover another niche community for whom Zürich West is already very much up and running. Studiedly discreet, the entrances to this year's fiercest up-all-night clubs for devotees of Zürich's beloved minimal techno – Cabaret, Zukunft and Hive – are starting to harbour queues of excited party kids resplendent in weekend finery. And although I'm quite old enough to know better, my night out is back on. Heidi-nism – it's catching.

Chris Huhne orders inquiry into fossil fuel lobby influence over Tory MEPs | Politics

Chris Huhne has ordered an inquiry into the influence of fossil fuel lobby groups over Conservative MEPs. Photograph: Jeff Overs/PA

Chris Huhne has ordered a private inquiry into which fossil fuel lobbyists "got to" the Conservative MEPs who defied David Cameron and voted down an ambitious carbon emissions target in the European parliament on 5 July.

"I have asked for a full analysis of what happened," said the energy and climate change minister, speaking at an event in parliament. "We thought the vote was going to be close, but it was not close. We want to see which lobby groups managed to get to the MEPs."

New research by the Guardian and Greenpeace into lobby groups and businesses seen by Tory MEPs in 2010 reveals there were more than four times as many meetings with fossil fuel companies, carmakers and others against stronger action on global warming than with green businesses and those pushing for deeper cuts in greenhouse gas emissions.

Huhne, a Liberal Democrat, has caused a storm by comparing Tory campaigning tactics on the AV referendum to those of the Nazis and by repeatedly challenging Cameron at a cabinet meeting on the issue. By investigating the EU climate vote, he risks further increasing tensions within the coalition.

"It is extraordinary for Huhne to instigate an investigation into his coalition partners," said Luciana Berger, Labour's shadow minister for climate change. "It shows Lib Dems and Conservatives are too busy squabbling with each other to take decisive action to reduce carbon emissions."

Huhne had been successful in gathering support from other countries to increase the EU's 2020 greenhouse gas target from 20% below 1990 levels to 30%, arguing it was in the UK's best economic interests. But Tory MEPs were key in carrying a vote against the plan, despite Cameron promising to intervene after their intention was revealed by the Guardian.

"I'm happy for Huhne to investigate whatever the hell he likes. I just wish he'd spend more time investigating the huge economic damage that his green policies will do," said Tory MEP and climate sceptic Roger Helmer. He added: "The prime minister is in no position to 'bring Conservative MEPs into line'. I vote in what I conceive to be the best interests of my country and my constituents: the party whip comes a poor third."

Martin Callanan, leader of the Conservatives in Europe and an environment spokesman, said: "Our position on [deeper emission cuts] has not been influenced by lobbyists and has remained unchanged since the idea was first mooted.

"Europe already has the world's most ambitious targets and, in the absence of a worldwide agreement, forcing business and industry to pay more for their CO2 emissions in Europe will merely result in them relocating outside of the EU."

But a spokesman for No 10 said: "Government policy is, and remains, to persuade the EU to adopt the 30% emissions reduction target."

Callanan said any discussions he had with No 10 were confidential but he added: "Conservative MEPs are the most open and transparent UK members. We publish details of all lobbying meetings."

Chris Davies, the Lib Dem environment spokesman in Europe, said: "The prime minister's promises to lead the greenest government ever sound very hollow indeed when his own party fails to walk the walk on cutting carbon emissions."

The research by the Guardian and Greenpeace (January to June and July to December) shows that the 25 Tory MEPs met at least 300 representatives from fossil fuel businesses and their lobbyists in 2010 at more than 200 meetings, compared with about 70 representatives from green industries or lobby groups. The latter includes meetings on climate change, renewable energy and similar issues, but excludes meetings about unrelated issues such as agriculture and biodiversity.

The research also found the Tory MEPs attended at least 100 meetings with gas and oil companies and 75 meetings with car manufacturers last year.

Ford was one of the most hospitable companies, enjoying meetings with at least nine of the MEPs, most of them more than once.

The Society of Motor Manufacturers and Traders was also popular, alongside Jaguar Land Rover.

The UK's Association of Electricity Producers, which has strongly opposed any increase in carbon emissions cuts, was well-represented among the numerous fossil fuel energy lobbyists, along with oil industry groups such as the UK Petroleum Industry Association.

Meetings with green lobbyists, aside from the many devoted to issues such as the common agricultural and fisheries policies, were far fewer, with WWF figuring a handful of times and Greenpeace once.

Several renewable energy companies enjoyed a little more success, including First Solar which met three of the MEPs.

One member, Giles Chichester, Tory MEP for southwest England and Gibraltar, met the European Wind Energy Association but only at a large energy dinner.

Several green companies also attended a large dinner on food security and climate change attended by Chichester and fellow MEP Julie Girling last December, and a small number of other dinners. By contrast Helmer had four meetings in six months about beer.

"The Conservative party in Europe is in the pocket of big oil," said Berger. "The prime minister needs to get a grip of his party and start leading a government that is serious about tackling climate change."

Martyn Williams of Friends of the Earth said: "There is a huge list of major companies who have told Conservative MEPs that getting serious about tackling climate change will give a boost to the European economy. The MEPs should stop listening to special pleadings and examine the big picture."

Huhne's private office did not respond to requests for comment and a spokesperson at Huhne's department of energy and climate change declined to respond, saying it was a "political" matter.

Bob Crow in talks for powerful rail union merger | UK news

Bob Crow general Secretary of the RMT, has renewed talks to combine with the TSSA to create a more powerful rail network union with 110,000 members. Photograph: Matthew Lloyd/Getty Images

Bob Crow may increase his power over the rail industry after the RMT trade union announced merger talks with its closest rival, the Transport Salaried Staffs' Association (TSSA).

A combined RMT and TSSA would have 110,000 members and cover all roles across the rail network from train drivers to signallers. One prominent critic of trade union activism labelled the move a "Gordon Gekko-style takeover" that threatened disruption for commuters.

The merger talks, long-mooted in labour movement circles, have taken on renewed urgency in the wake of a report into cutting industry costs by Sir Roy McNulty, former chairman of the Civil Aviation Authority, which threw down the gauntlet to trade unions by calling for reform of working practices and an end to inflation-busting pay increases. The industrial temperature was raised further this week when Network Rail, the owner of Britain's rail tracks and stations, indicated it will shed 4,000 signallers over the next decade.

The RMT said: "The McNulty review has forced the pace on this. It has focused attention on the fact that we are facing the biggest attack on the railways since privatisation."

Crow, RMT general secretary, welcomed a "historical day" for the trade union movement while his TSSA counterpart, Gerry Doherty, said bringing the unions together would "protect workers in the very uncertain future that they currently face".

However, a Conservative MP who has led calls for stronger regulation of trade unions warned that a successful merger would increase the threat of strike action on the railways and the London Underground. "This will be a Gordon Gekko-style takeover by Bob Crow, not an act of fraternal solidarity," said Dominic Raab MP. "With TSSA and RMT spoiling for a fight, it is an attempt to strengthen union opposition to vital reforms to UK rail infrastructure – and it heightens the risk of strike action for passengers."

A rail industry source admitted that "a certain amount of nervousness" could be sensed among rail industry executives, amid expectations that if the merger talks are successful Crow will emerge as leader of the combined entity because the blue-collar RMT has about 80,000 members compared with 30,000 at the more moderate and white-collar TSSA.

"Barely a month goes by when the RMT does not threaten industrial action somewhere, whereas the TSSA tends not to take such an aggressive approach to strike action," said the source.

One trade union source said a merger faced significant hurdles, as indicated by the unions' respective attitudes towards strike action. "Politically, both unions are poles apart," said the source, pointing to the TSSA's close links with the Labour party, whereas the RMT was expelled by Labour in 2004 for its links with the Trotskyist Scottish Socialist party.

The source stressed that the official statement also referred to both unions working together through a "federation structure" that would allow much closer co-operation "with a view to moving towards a merger".

The RMT and TSSA have worked together recently, despite tough rules on joint walkouts, by staging joint strike action on the London Underground.

Nonetheless, trade unions are being driven into mergers for financial as well as strategic reasons. According to the Office for National Statistics, trade unions lost 179,000 members last year, leaving a total membership of 6.5 million. Britain's largest trade union, Unite, is launching cut-price memberships for students and the unemployed as it seeks to widen recruitment from workplaces to local communities. The former head of Unite, Tony Woodley, has also warned that the union movement's finances are being hit by falling membership. Against that backdrop, the RMT is a success story, having gained around 30,000 members since Crow was elected leader a decade ago. In contrast, the TSSA has flatlined, staying at 30,000 members since the middle of the last decade.

Heatwave sweeps US claiming 22 lives | World news

A heatwave has swept across the US, with temperatures reaching over 110 degrees Fahrenheit (43C). Photograph: Timothy A Clary/AFP

A swath of America from the Mexican border to Boston suffered under dangerously hot temperatures on Friday, as a heatwave that has killed at least 22 people continued into the weekend.

The combination of high temperatures and excessive humidity has triggered health warnings across the country. At least 50 cities hit 110F (43C) on the heat index on Thursday. On Friday, Washington DC, Tulsa, Oklahoma, Buffalo in New York and other cities' temperatures climbed into the triple digits by noon.

The national weather service said excessive humidity would make it feel even hotter. With the heat index, Washington reached 113 degrees by 11am. Nearby Richmond and Baltimore were on track to reach 120 degrees.

At least six people died in heat-related deaths on Thursday. Many of the victims have been in the midwest, including a cook in Michigan who suffered a heart attack when he was sent home from work.

The heatwave has also triggered a spate of medical emergencies. A girl scout group was treated for heatstroke at a camp in Connecticut. In Pittsburgh, a man fixing the roof at his cousin's home was stuck in the blazing sun for nearly two hours because of the melting tar, Associated Press reported.

With no relief until Sunday, the national weather service issued a series of warnings, advising people to stay indoors in an air-conditioned environment and reschedule strenuous activities. Residents in several cities were warned to watch out for poor air quality.

"Do not take this threat lightly," the weather service said in a statement on its website, noting the extreme temperatures are particularly dangerous for the elderly and the very young.

"The length of this heatwave will pose a very real and dangerous health risk to these already at-risk groups and those that do not have access to air-conditioning," the statement added.

Local authorities in several cities opened cooling centres. Manhattan sent a water truck to cruise the city streets. Philadelphia cancelled summer school programmes.

The extreme heat was also bearing down on the electric grid, as people on the heavily populated east coast turned up their air conditioners to try to keep cool.

Electricity companies in a number of localities warned of possible power outages.

In New York City, meanwhile, people hoping to beat the heat with a swim outdoors were advised to stay away from city beaches after a fire in a water treatment plant sent raw sewage cascading into the Hudson river.