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Mark Carney attacks Eurozone over austerity

The Governor of the Bank of England launched a broadside attack against Eurozone austerity policies, warning that it was caught in 'a debt trap'.

Mark Carney's comments come as Greece's new Prime Minister confirmed he will be fighting the tight austerity placed on the country by the EU.

The Governor of the Bank of England Mark Carney speaking last year. Credit: Anthony Devlin/PA Wire

Since the financial crisis all major advanced economies have been in a debt trap where low growth deepens the burden of debt, prompting the private sector to cut spending further. Persistent economic weakness damages the extent to which economies can recover. Skills and capital atrophy. Workers become discouraged and leave the labour force. Prospects decline and the noose tightens.

As difficult as it has been, some countries, including the US and the UK, are now escaping this trap. Others in the euro area are sinking deeper.

– Mark Carney

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Release of prisoner demanded by IS 'rests on fate of Jordanian pilot'

The prisoner demanded by Islamic State, Sajida al-Rishawi, is still being held and her release depends on the fate of the captured Jordanian pilot, Mu'ath al-Kaseasbeh, a Jordanian government spokesman has said.

Saji al-Rishawi, in an interview with Jordan television in 2006. Credit: Reuters

Jordan is still holding a prisoner whose release has been demanded by Islamic State militants and her freedom depends on the fate of a Jordanian pilot captured by the insurgents, government spokesman Mohammad al-Momani said. "It's not true she has been released. Her release is tied to freeing our pilot," Momani said of Sajida al-Rishawi, an Iraqi woman on death row for her role in a 2005 suicide bomb attack.

The fate of the pilot was thought to be tied to that of Japanese hostage Kenji Goto after a video was released on Tuesday purporting to show the Japanese national saying he had 24 hours to live unless Jordan released al-Rishawi.

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White House condems Hezbollah 'act of violence'

Credit: Reuters

The United States has condemned the deadly attack by Hezbollah on an Israeli military convoy that killed two Israeli soldiers, and urged both sides to "refrain from actions that could escalate the situation", according to Reuters.

"We urge all parties to refrain from any action that could escalate the situation," State Department spokeswoman Jen Psaki told a daily briefing.

A Spanish UN peacekeeper was also killed, but it is not yet known which side is responsible for his death, a UN spokesperson said.

Spanish PM offers condolences to family of UN peacekeeper

The Spanish Prime Minister has expressed his "deepest sympathy" to the family of the Spanish UN peacekeeper who was killed during fighting near the Israeli/Lebanese border earlier today.

In a Spanish-language tweet, Mariano Rajoy Brey said: "My deepest sympathy on the death of Spanish military in Lebanon . My love and condolences to his family and companions."

Allegations 'very damaging and very hurtful'

Gary Glitter said the allegations made against him by three women had been "very damaging and very hurtful".

Glitter is accused of one count of attempted rape, seven counts of indecent assault, and two other sexual offences against the three women in the 1970s and 1980s.

In cross examination at Southwark Crown Court, prosecutor John Price QC, told Glitter: "What each of these three ladies has told us is true, isn't it?

"And you Mr Gadd are an accomplished liar."

Glitter firmly replied: "I am not a liar. I believe that I have told the truth all through this, all through my life actually.

"These allegations are very, very damaging and very hurtful and I can't understand why they should make these allegations at all."

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