In the recording, a soldier in a watchtower radioed a colleague in the army post's operations room and describes Iman as "a little girl" who was "scared to death". After soldiers first opened fire, she dropped her schoolbag which was then hit by several bullets establishing that it did not contain explosive. At that point she was no longer carrying the bag and, the tape revealed, was heading away from the army post when she was shot.

Palestinian witnesses said they saw the captain shoot Iman twice in the head, walk away, turn back and fire a stream of bullets into her body.

On the tape, Capt R then "clarifies" to the soldiers under his command why he killed Iman: "This is commander. Anything that's mobile, that moves in the [security] zone, even if it's a three-year-old, needs to be killed."

At no point did the Israeli troops come under attack.

Some 240 women, girls and babies may have been raped after rebels seized a town in DR Congo, the UN says.

Tajikistan's security chief is replaced following the escape of 25 prisoners, including several Islamic militants, from a Dushanbe jail.

US net users are being asked for their opinions about what ISPs should be allowed to do with web traffic flowing through their networks.

The eurozone economy grew by 1% between April and June, official figures confirm.

Three days of mourning begins in Pakistan after bomb attacks on a Shia Muslim procession in Lahore city kill 31 people.

ISLAMABAD: Wealthy landowners in Pakistan have allegedly diverted waters from the country's devastating floods away from their own properties and into villages, the country's UN ambassador said Thursday.

KABUL: Two US soldiers in Afghanistan died Thursday after separate insurgent attacks, Nato said, compounding the bloodiest year yet for American forces in the Afghan war.

Julia Gillard could return to power after one of three independent MPs holding key to next government announces support The Australian prime minister, Julia Gillard, today edged closer to retaining power when an independent MP said he would back her centre-left Labor party to form the country's first minority government in almost seven decades. A bloc of three independents will now decide whether Labor governs for a second three-year term or a conservative Liberal party-led coalition forms the next administration after the August 21 elections failed to deliver a majority for any party. The conservative coalition needs the backing of all three independents to reach a 76-seat majority in the 150-seat House of Representatives, while Labor needs only two. Independent Andrew Wilkie, who has negotiated outside the bloc of three, announced his backing for Labor at Parliament House after meetings with Gillard and the Liberal leader, Tony Abbott. "I have judged that it is in fact the ALP [Labor] that best meets my criteria that the next government must be stable, must be competent and must be ethical," he told reporters. Wilkie said he expected his fellow independents would be more likely to support Labor after figures showed the coalition had overstated savings from their election promises by billions of dollars. Abbott said the coalition had the best economic credentials to govern despite the figures, which were released by the independents yesterday. Senior Liberal MPs have stuck by their figures and explained that the discrepancies with official calculations by government ministries were "a difference of opinion" on methodology and underlying assumptions such as future interest rates. Abbott said the discrepancies did not compromise his negotiations with the three independents. "There are a whole lot of issues in play here and an, at times, arcane argument about costings is by no means the most important," Abbott said. "The bottom line is that there are two competing economic records here." He said that Labor had inherited $60bn (£35bn) in assets when it was elected in 2007, which it turned into a $90bn debt through economic stimulus spending. The three independents had requested briefings from Treasury and Finance ministry bureaucrats on confidential estimates of competing election pledges. They said the questions of which party had the best economic blueprint, and which might have misled voters, were key factors in deciding whether to back a Liberal-led coalition or a Labor government. The independents released Treasury documents contradicting Abbott's claim that Australia's bottom line would be $11.5bn better under the conservative coalition in three years, when both sides of the political divide have promised to return the budget to surplus. The Treasury found the improvement could be as little as $900m. Australia Julia Gillard guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds

Bernanke led the economy through the tumultuous months of the most severe recession since the 1930s, as the Fed took extraordinary measures to inject hundreds of billions into the battered financial system Federal Reserve chairman Ben Bernanke is set to appear before a panel investigating the financial crisis to give his take on the meltdown and his views on potential systemwide risks posed by large financial institutions. Bernanke led the economy through the tumultuous months of the most severe recession since the 1930s, as the Federal Reserve took extraordinary measures to inject hundreds of billions into the battered financial system. And he said last week the central bank is prepared to make a major new investment in government debt or mortgage securities if the economy worsened significantly or if the Fed detected deflation – a prolonged drop in prices of wages, goods and assets like homes and stocks. Bernanke's scheduled appearance Thursday at a hearing by the Financial Crisis Inquiry Commission comes as the congressionally appointed panel approaches the end of its yearlong investigation of the roots of the economic disaster. Sheila Bair, the chairman of Federal Deposit Insurance, also is testifying before the panel. At a session on Wednesday the commission examined the danger of having banks deemed "too big to fail" and their potential to topple the financial system. The former chief of Lehman Brothers, Richard Fuld, testified that the Wall Street titan could have been rescued in the autumn of 2008, but federal regulators refused to help – even though they later bailed out other big banks. Panel chairman Phil Angelides said there appeared to be "a conscious policy decision" by the regulators not to rescue Lehman. Under the landmark financial overhaul law enacted in July, regulators are empowered to shut down financial institutions whose collapse could threaten the system. Bernanke has said that a key lesson learned from the crisis is that the Fed cannot focus solely on the soundness of individual banks, and must cast a watchful eye on the health of the financial system as a whole. The central bank already has moved to conduct bank examinations that take a broader-picture approach, he says. Bernanke could be asked by panel members about the Fed's handling of the Lehman Brothers episode and Fuld's accusations. Thomas Baxter, general counsel of the New York Fed, insisted at Wednesday's hearing that the Fed lacked the legal authority to provide a government guarantee of Lehman's obligations to its trading partners or other aid the firm sought. Hundreds of billions worth of collateral would have been needed to secure a guarantee of that magnitude, and Lehman did not have it, Baxter said. Bair, the FDIC chief, has been one of the most vocal critics of the "too big to fail" approach that brought the government rushing in to bail out big banks in the crisis. "Never again should taxpayers be asked to bail out a failing financial firm," Bair told community bankers in a speech in March. "It's time that the big players understand that they sink or swim on their own." Bair took on a high profile and gained popularity outside Washington early in the crisis, as she pressed for more government intervention to help struggling homeowners. That opened a rift with then-President George W. Bush's treasury secretary, Henry Paulson. Ben Bernanke US economy Financial crisis Global recession United States guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds

Five Colombian police officers are killed and three injured when their vehicle is hit by a bomb attack blamed on the rebel group Farc.

Three people die and power lines are knocked down as Seoul is hit by its strongest typhoon in the past 15 years.

South Africa's prolonged public sector strike is set to continue after the main trade union federation rejects an improved wage offer by the government.

The Electoral Commission is to give its verdict on the proposed question for the referendum on further powers for the Welsh assembly.

Cavers Tim Allen and Hugh St Lawrence give BBC News a glimpse of the cramped conditions as they try to connect three English counties by an underground network of tunnels.

Tony Blair talks about how he had concerns about Princess Diana's relationship with Dodi Fayed.

Press maintain their interest in Tony Blair's memoirs

A Pakistani diplomat calls for a probe into allegations that rich landowners diverted water into unprotected villages during the floods to save their own crops.

Celebrities step in to help Pakistan floods victims

WASHINGTON: Under the shadow of fresh violence, President Barack Obama convened the first direct Israeli-Palestinian talks in two years Wednesday, challenging Middle East leaders to seize a fleeting opportunity to deliver peace to a region haunted by decades of hostility. ''I am hopeful, cautiously hopeful, but hopeful,'' Obama said with the leaders of Jordan, Egypt, Israel and the Palestinians beside him in the crowded East Room of the White House. Earlier Obama had met with each individually, and they gathered afterward for dinner. The mood appeared cordial as the leaders solemnly commenced the talks aimed at creating a sovereign Palestinian state beside a secure Israel. Palestinian President Mahmoud Abbas and Israeli Prime Minsster Benjamin Netanyahu shook hands warmly and thanked Obama for bringing them together despite such intractable differences as Abbas' demand that Israel end settlement expansion in the West Bank. ''Do we have the wisdom and the courage to walk the path of peace?'' Obama asked. In turn, each of the leaders answered positively but with qualifications. And they spoke of hopes for a breakthrough within the one-year timeframe prescribed by Obama. Netanyahu said his nation desires a lasting peace, not an interlude between wars. He called Abbas ''my partner in peace,'' and said, ''Everybody loses if there is no peace.'' Abbas urged Israel to freeze settlement construction in areas the Palestinians want as part of their new state, and to end its blockade of Gaza, which is controlled by the militant Hamas movement. The settlements issue is a central obstacle to achieving a permanent peace. ''We will spare no effort and we will work diligently and tirelessly to ensure these negotiations achieve their cause,'' Abbas said, as translated into English. Said Jordan's King Abdullah II: ''Mr. President, we need your support as a mediator, honest broker and a partner. If hopes are disappointed again, the price of failure will be too high for all.'' With the Israelis and Palestinians far apart on key issues, expectations for the Washington talks are low, yet the stakes are high. Direct Israeli-Palestinian negotiations broke off in December 2008, in the final weeks of the George W. Bush administration. The Obama administration spent its first 20 months in office coaxing the two sides back to the bargaining table. The Israeli-Palestinian conflict is a constant source of grievance and unrest among Muslims. The failure of past peace efforts has left both sides with rigid demands and public ambivalence about the value of a negotiated settlement. American officials are hopeful they can get the two sides this week at least to agree to a second round of talks, likely to be held in the second week of September. That could be followed by another meeting among Obama, Netanyahu and Abbas on the sidelines of the UN General Assembly near the end of the month in New York. Beyond the settlements, Israel and the Palestinians face numerous hurdles in resolving other contentious issues, notably the borders of a future Palestinian state, the political status of Jerusalem and the fate of Palestinian refugees. Also complicating the outlook are internal Palestinian divisions that have led to a split between Abbas' West Bank-based administration and Hamas, which controls Gaza. Hamas is not part of the negotiations and has asserted that talks will be futile. It claimed responsibility for attacks against Israelis Tuesday and Wednesday that killed four and wounded two. Each of the leaders pledged to work diligently toward peace, but they also made plain that their own national interests must be satisfied. ''We do not seek a temporary respite between outbursts of terror,'' said Netanyahu. And he stressed the central importance of security assurances for the Jewish state as part of any land-for-peace agreement with the Palestinians. ''We left Lebanon, we got terror. We left Gaza, we got terror. We want to...

President Obama urges Mid-East leaders not to let the chance of a peace deal slip away, ahead of a new round of talks.

Former MP George Galloway is demanding damages in excess of £300,000 from the publisher of the News of the World claiming he was embroiled in the phone hacking scandal at the newspaper.

By cartoonist Leon Kuhn whose work can also be seen on his own website http://www.leonkuhn.org.uk where postcards of some of his cartoons can be ordered.

See Leon Kuhn's page on "SpideredNews | Politics" at http://www.spiderednews.com/LeonKuhn.htm

The Australian economy grew at its fastest pace in three years in the second quarter of the year.

US Vice-President Joe Biden has spoken at a ceremony marking the end of US combat operations in Iraq.

People are feared to be buried after parts of a tower block collapsed in the Russian city of St Petersburg.

Palestinian security forces mount a huge operation after four Israeli settlers are killed ahead of the first direct peace talks in two years.

Areas on the US east coast likely to be hit by Hurricane Earl are starting to evacuate as the storm draws nearer.

Nick Clegg has said Pakistan will need aid for years to come following the worst floods in decades, after seeing the devastation there himself.

The Chinese navy begins artillery exercises in the Yellow Sea, days before the US and South Korea hold similar manoeuvres there.

Actress and UNHCR goodwill ambassador Angelina Jolie has issued an appeal for increased public support in providing help and relief for the millions of people who have been affected by the floods in Pakistan.

A new law comes into force in Greece banning smoking in enclosed public spaces and prohibiting tobacco advertising.

Some 57,000 people have been forced from their homes because of dramatic floods in south-western Sudan over the past month, officials say.

Tony Blair has reportedly described Gordon Brown as "difficult, at times maddening" in his memoirs, being published on Wednesday.

Australia's economy grew for its sixth straight quarter hitting 1.2% thanks to high demand for commodities.

In the recording, a soldier in a watchtower radioed a colleague in the army post's operations room and describes Iman as "a little girl" who was "scared to death". After soldiers first opened fire, she dropped her schoolbag which was then hit by several bullets establishing that it did not contain explosive. At that point she was no longer carrying the bag and, the tape revealed, was heading away from the army post when she was shot.

Palestinian witnesses said they saw the captain shoot Iman twice in the head, walk away, turn back and fire a stream of bullets into her body.

On the tape, Capt R then "clarifies" to the soldiers under his command why he killed Iman: "This is commander. Anything that's mobile, that moves in the [security] zone, even if it's a three-year-old, needs to be killed."

At no point did the Israeli troops come under attack.

President Obama has addressed the American people to announce the end to the US combat mission in Iraq

Hurricane Earl is heading for the US east coast after causing power cuts and heavy rain across the eastern Caribbean.

A look at what's making the headlines in Wednesday's morning newspapers.

Congressional panel to look at the 'too big to fail' predicament and investigate the causes of the financial criss An inquiry panel is hearing from former CEOs of two big banks that succumbed to the financial crisis, Lehman Brothers and Wachovia, as it delves into the "too big to fail" predicament and potential systemwide risk from financial institutions. Federal bank regulators also are appearing today before the bipartisan Financial Crisis Inquiry Commission, established by Congress to investigate the financial meltdown that plunged the economy into the most severe recession since the 1930s. After the subprime mortgage bubble burst in 2007, complex investments called credit default swaps, which insured against default of securities tied to the mortgages, collapsed. That brought the stunning downfall of Lehman Brothers. Its implosion into the biggest bankruptcy in US history on 15 September 2008 triggered a worldwide panic in financial markets. US officials, as they scrambled to avert economic catastrophe, declined to rescue the once-venerable Wall Street titan while injecting tens of billions of dollars into others – like the insurance conglomerate American International Group. Aided and prodded by the government, Wells Fargo acquired North Carolina-based Wachovia, which had done a huge business in adjustable-rate mortgages, enticing borrowers who later defaulted on their home loans. That $12.7bn () deal, announced in early October 2008, created a coast-to-coast powerhouse with operations in 39 states and the District of Columbia. Scheduled to testify at Wednesday's hearing are Wachovia's former President and CEO Robert Steel; former Lehman Chairman and CEO Richard S. Fuld Jr.; Scott Alvarez, general counsel of the Federal Reserve; Thomas Baxter, general counsel and executive vice president of the New York Fed; John Corston, an official of the Federal Deposit Insurance; and Barry Zubrow, chief risk officer at JPMorgan Chase. Under the landmark financial overhaul law enacted in July, regulators are empowered to shut down financial institutions whose collapse could threaten the system, ending the doctrine of "too big to fail." Fuld, a towering figure whose nickname was "Gorilla," has publicly conceded no errors or misjudgments in the chaotic period that led to Lehman's bankruptcy. He told a congressional hearing in October 2008 that the firm did everything it could to limit its risks and save itself. It failed, he said, because of a "crisis in confidence" on Wall Street, market manipulation in which investors preyed on distressed financial players by betting on their demise, and would-be buyers who waited for the government to step in to help fund a sale. More recently, a court-ordered autopsy of Lehman found that an accounting gimmick called Repo 105 provided financial relief to the firm in the months before its collapse. After saddling itself with tens of billions of troubled assets that couldn't easily be sold, Lehman masked its debt and its perilous financial condition by using the accounting artifice, an examiner appointed by the bankruptcy court found in a report issued in March. Lehman's estate has claimed in a lawsuit that JPMorgan Chase helped drive Lehman into bankruptcy by forcing it to give up billions of dollars in cash reserves that it otherwise could have used to stay afloat. JPMorgan was Lehman's clearing agent, acting as intermediary between Lehman and its trading partners. Financial crisis Lehman Brothers Banking Global recession United States guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds

A three-year report into currency dealing shows rapid growth in trading, with the majority of trades happening in London.

At least 45 militants and their family members have been killed in air strikes targeting militants in north-western Pakistan, security officials say.

On the eve of Middle East talks, the White House condemns an attack which killed four Jewish settlers and says it is crucial for peace efforts to continue.

Around 70 asylum seekers break out of a detention centre in the Australian city of Darwin to hold a protest against their treatment.

WASHINGTON: A Pakistani military delegation became the latest victim of the paranoia permeating US airports on Monday night, when US security officials detained a brigadier at Washington’s Dulles airport on a complaint by a passenger who said he did not feel safe sharing the flight with the delegation. The brigadier was removed from the United Airlines flight, and others in this eight-member delegation were also detained after they disembarked. They were later released. The dispute became a major diplomatic row as the delegation, offended by this treatment, decided to cancel an important meeting at the headquarters of the US Central Command in Tampa, Florida, on Tuesday, and return home. By the time the US Department of Defence apologised to the delegation, their leader, a two-star naval officer, had already informed Islamabad where officials approved his decision to return home on Tuesday night. The delegation included senior officials from all three services, the army, the navy and the air force. Dawn contacted the US Transport Security Administration, whose officials had detained the brigadier, and the Department of Homeland Security but failed to get a response. Mathew Chandler, a DHS spokesman, and Lauren Gaches of TSA, however, asked Dawn to contact the airline. United Airlines officials, however, told the US media that the brigadier, whose name was not disclosed, had misbehaved with a stewardess and told her that “this would be her last mission”. Information collected by Dawn showed that the incident that led to the cancellation of the meeting happened at Washington’s Dulles airport on Monday night when a passenger on the flight to Tampa complained that a Pakistani brigadier, while talking to his colleagues, had made remarks that he found threatening. Officials of the airline informed the Transport Security Administration who detained the brigadier and later other officials as well. A Pakistani official, when asked to comment on the airline’s claim, said: “This is a delegation of senior officials, led by a two-star officer, not unit captains and majors. Such responsible officers do not indulge in such behaviour.” Information collected by Dawn also confirmed the Pakistani claim as the plane was delayed for 40 minutes before the airline’s mentioned the alleged altercation between the brigadier and the stewardess. Later, an official of the airline came with a TSA security officer and asked the brigadier to disembark. She gave no reason. The head of the delegation asked the brigadier to get down and cooperate with the TSA. The brigadier disclosed his identity. There was no response for about 15-20 minutes and then the airline and security officials asked the entire delegation to get off the plane. The leader of the Pakistani delegation showed TSA officials an invitation letter from the Centcom, confirming that they were going to Tampa for a meeting. He also showed them all the passports that identified the delegation as senior military officers. He then requested to talk to a senior TSA official or the person in-charge of security at the airport but his request was turned down. “They did not let them speak and treated them like terrorists,” said a Pakistani official. “The investigators were unprofessional, junior officials.” The official said that the TSA and airlines officials kept telling the delegation that a passenger found the brigadier’s remarks threatening but did not say what those remarks were. “The delegation was detained for two hours, telling them nothing, not allowing them to talk to anyone,” said the Pakistani official. “They received no response even when they showed them their passports and the Centcom letter,” the official said. “At the end, they realised their mistake and apologised but by then the delegation had decided it did not want to take that flight.” Explaining why the delegation decided to cancel the meeting and return home, the official said it was.....

Labour Party members begin voting on which one of five candidates will replace Gordon Brown as leader, with the result announced later this month.

Former MP George Galloway is demanding damages in excess of £300,000 from the publisher of the News of the World claiming he was embroiled in the phone hacking scandal at the newspaper.

Hurricane Earl is heading for the eastern coast of the US after causing power cuts and heavy rain across the eastern Caribbean.

We have an exclusive story on the pros and cons of Sunday opening for bookmakers

Voting has started in the Labour leadership contest. If you have a vote, this interactive tool will help you decide how to use it. Source: Votematch.org.uk Labour party leadership Labour David Miliband Ed Miliband Diane Abbott guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds

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