Iraq Accuses Saudi Arabia Of Promoting 'Genocide'

Iraq's Shia leaders have accused neighbours Saudi Arabia of promoting "genocide" by backing Sunni militants, as Baghdad battles insurgents who have seized swathes of territory.

Defying calls from the West to reach out and defuse the crisis, a government statement said: "We hold them responsible for supporting these groups financially and morally, and for the outcome of that - which includes crimes that may qualify as genocide: the spilling of Iraqi blood, the destruction of Iraqi state institutions and historic and religious sites."

Riyadh denies backing fighters from the Islamic State in Iraq and Syria (ISIS) and said on Monday that sectarianism in Iraq was fuelling the violence.

Areas of Iraq controlled by ISIS and the locations of the latest fighting

UN Secretary General Ban Ki-moon has warned there is a "real risk" of sectarian violence on a "massive scale" as a result of the conflict.

And Prime Minister David Cameron said insurgency by religious extremists in Syria and Iraq is the most serious threat Britain faces today, with the prospect of battle-hardened militants returning to the UK.

Speaking at a joint press conference with Chinese Premier Li Keqiang, Mr Cameron said: "The number of foreign fighters in that area, the number of foreign fighters including those from the UK who could try to return to the UK this is a real threat to our country.

One of the burnt-out vehicles in Mosul (Pic: BFMTV)

"We will do absolutely everything we can to keep our people safe. That means stopping people from going, it means arresting people who are involved in plots, it means focusing our security, our policing, our intelligence effort on to that area of the world, on to those people."

Footage from inside one of the first cities in Iraq to be seized by the insurgents appears to show men queuing to join an offensive that has brought the terror group to within 50 miles of the Iraqi capital, Baghdad.

Shot by the French news channel BFMTV, the video shows burnt-out vehicles littering the streets of Mosul, one of a number of towns and cities they now control in northern Iraq.

The packed central square in Mosul (Pic: BFMTV)

Clashes overnight in Baquba, less than 40 miles from Baghdad, left scores dead.

The Baiji oil refinery north of Baghdad has been shut down and foreign workers evacuated by helicopter, although officials say government troops still hold the compound.

With the refinery shut, Iraq will find it difficult generating electricity and pumping water to sustain its cities this summer.

A comparison between the Iraqi army and ISIS

Queues for fuel have already been reported in the north.

Police said another militant attack, in a northern village called Basher, nine miles south of Kirkuk, has been repelled.

On state television the Iraqi army said it had killed a top militant, Abu Abdul Rahman al Muhajir, in Mosul.

Security in Baghdad has been stepped up

In response to the crisis, US President Barack Obama announced on Monday that up to 275 troops could be sent to Iraq to provide security for US personnel and the US Embassy in Baghdad.

The White House is also considering sending special forces to train and advise Iraqi troops.

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Passport Office Has 'Lost Control' Of Backlog

The Passport Office boss has admitted there are 480,000 passport applications "outstanding", as the unions said the agency had "lost control" of the backlog.

Paul Pugh told the Home Affairs Select Committee they had received 3.6m passport applications since January this year, which was significantly higher than usual.

Mr Pugh was reluctant to be drawn on the backlog of applications but when pushed by committee chairman, the Labour MP, Keith Vaz, said the applications considered to be "work-in-progress" was "broadly" 480,000.

Appearing ahead of Mr Pugh, Mike Jones, of the PCS Union, told MPs staff had lost control of the backlog of applications and needed more staff to bring it under control.

A worker leaked pictures of applications waiting to be processed

He said the backlog, which has put the holiday plans of thousands of families in jeopardy, had surged by more than 200,000 since March and that it was now 493,0000.

David Cameron told MPs last week the backlog was just 30,000.

Mr Jones said they had repeatedly asked the Home Office for more staff and said that job cuts had led to the crisis that has unfolded at the start of the summer.

He said: "Staff have been working excessive overtime to try and deal with that. Our members have been working really hard to manage a ship that has been sinking for years."

Theresa May has raised questions over the future of the agency

Mr Jones refused to rule out strike action despite a warning from the Labour MP Ian Austin.

Mr Vaz told Mr Pugh, who earns £104,000 a year, he had to text the Home Secretary to sort out a constituent's passport application problems because he was unable to get through to the Passport Office boss.

Last week, after pictures of the backlog of applications at the Liverpool office were disclosed, the Home Secretary suggested the Passport Office may be brought under the control of Home Office ministers.

She was also forced to announce emergency measures including fast-tracking emergency applications for free and increasing the number of staff processing applications as anger over the situation intensified.

The number of applications received by the UK Passport Office is at a 12-year high, with 300,000 more applications than this time last year.

The increase has in part been blamed on the closure of regional application offices at embassies across the world. Theresa May announced British citizens abroad would automatically get a 12-month extension.

It was also suggested the increase in applications was because the economic recovery meant people now had enough money for holidays abroad.

A report shows the Passport Office estimated a year ago applications would surge by up to 350,000 this summer because of the overseas closures.

Speaking ahead of Mr Pugh's appearance, Mr Vaz said: "The HM Passport Office is in chaos and the Home Secretary's urgent action shows the true scale of the problem."

He added: "We will be asking Mr Pugh for a full explanation of what has happened and specifically how these emergency measures are being put in place.

"It is vital we have the full facts in order to understand whether this government agency is still fit for purpose."

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Schumacher 'In Great Hands' At Swiss Hospital

Staff at the Swiss hospital where former Formula One champion Michael Schumacher is now being treated have said he is "in great hands".

The 45-year-old left the French hospital where he was being looked after since his skiing accident in December on Monday, and was transferred to Lausanne University Hospital, close to his family's home in Switzerland.

According to his manager, Sabine Kehm, Schumacher is no longer in a coma but gave no further details of his condition or medical outlook, saying only that he would "continue his long phase of rehabilitation".

But it is being reported in the German media that he is responding to his wife's voice.

A member of staff at Lausanne University Hospital said: "Hopefully he will get better. I don't know. I don't have any prognosis. He is in great hands and let's hope he will get better."

The racing legend has been taken to Lausanne University Hospital

Another employee said: "I think he needs to be alone with his his family, and to cure (heal) and to take some energy to be himself again."

One staff member thought he had been taken to Lausanne because it is close to his home.

Schumacher's accident happened on a family holiday while he was skiing with his 14-year-old son at the Meribel ski resort in the French Alps.

The seven-times F1 champion was reportedly travelling at speeds of up to 60mph when he fell and hit his head on a rock.

He is thought to have been saved by his skiing helmet, which split on impact.

Schumacher suffered a serious head injury in the skiing accident

However, the racing legend's chief doctor said in March that it was unlikely he would ever fully recover from the accident.

Doctor Gary Hartstein wrote on his blog: "As time goes on, it becomes less and less likely that Michael will emerge to any significant extent."

In recent months, little information has been released on Schumacher's condition.

Monday's announcement he was no longer in a coma, was the first substantial update since early April, when Ms Kehm said Schumacher "shows moments of consciousness and awakening".

The German, who won a record 91 Grand Prix victories, left motor racing in 2013 after a disappointing three-year comeback.

Schumacher, his wife Corinna and two children live in the Swiss town of Gland.

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YouTube To Block Indie Artists 'Within Days'

Music videos by artists such as Adele and Arctic Monkeys could be blocked by YouTube in the next few days after a number of independent record labels refused to sign up for its new subscription service.

Earlier this month trade groups representing thousands of labels and musicians appealed to the European Commission to intervene on their behalf.

They have accused the Google-owned company of offering unfair contractual terms to the independents in comparison to those offered to larger firms like Universal or Sony.

XL Recordings, which represents Adele and The XX, and Domino, the label behind the Arctic Monkeys, are understood to be among the indies holding out for a better deal.

YouTube has been planning a paid streaming service to compete with companies like Spotify, Pandora and Rhapsody for over a year.

The new paid-for service will enable users to watch videos or listen to music without any adverts, on any device, even if it is not connected to the internet.

The Arctic Monkeys are on an independent label

Robert Kyncl, YouTube's head of content and business operations, told the Financial Times record labels representing 90% of the music industry have signed up to their terms.

"While we wish that we had 100% success rate, we understand that is not likely an achievable goal and therefore it is our responsibility to our users and the industry to launch the enhanced music experience," Mr Kyncl said.

A source told Sky News' technology correspondent Tom Cheshire that 95% of labels have now signed up, which he believes suggests some may have given in.

Mr Kyncl said internal testing will begin in the "coming days".

A YouTube spokesperson told Sky News: "Our goal is to continue making YouTube an amazing music experience, both as a global platform for fans and artists to connect, and as a revenue source for the music industry. 

"We're adding subscription-based features for music on YouTube with this in mind - to bring our music partners new revenue streams in addition to the hundreds of millions of dollars YouTube already generates for them each year.

"We are excited that hundreds of major and independent labels are already partnering with us."

In the US, the American Association of Independent Music asked the Federal Trade Commission to prevent YouTube from blocking its member labels' content, saying that this "constitutes abuse of a dominant position with regard to the digital music and video streaming market," according a letter signed by the group's president, Richard Bengloff.

Last week Amazon launched its own music streaming service as part of its Prime subscription package.

In May Apple acquired Beats Music as part of its $3bn purchase of Dr Dre's headphone-maker Beats Electronics.

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Morrisons Plans 2,600 Job Cuts In Shake-Up

Morrisons has confirmed plans for 2,600 job cuts as the loss-making supermarket chain battles falling sales and market share.

A statement detailing the changes said the losses, representing 2% of its workforce, would result from cutting tiers of in-store management.

But the company insisted it could improve customer service at the same time as more staff would be focused on serving shoppers.

The announcement was made as the supermarket combats a flight to discounters with a series of price cuts that will cost it £1bn over three years.

Earlier this month, Morrisons reported a 7.1% slump in quarterly sales on the back of annual losses of £176m - a performance which prompted chief executive Dalton Philips to waive his bonus.

Morrisons now has 117 convenience stores

Morrisons has been the worst performer among the big four chains in terms of sales amid tough competition from the discounters, including Aldi and Lidl, though major rivals including Tesco have also endured falling market share.

The chain was slow to launch an online food offering and also lagged behind its biggest competitors on convenience store numbers.

Former chairman Sir Ken Morrison used the supermarket's annual general meeting to publicly criticise the current management's strategy just a week ago - reportedly describing it as "bull****".

Morrisons said that while the changes would be painful for its workforce, trials of its planned new management structures had proved a hit with customers.

The statement suggested that some stores currently had seven tiers between the shop floor and the store manager and it hoped to relocate some of those managers who will lose their jobs to new store and convenience operations.

Mr Philips said: "This is the right time to modernise the way our stores are managed.

"These changes will improve our focus on customers and lead to simpler, smarter ways of working.

"We know that moving to the new management structure will mean uncertainty for our colleagues and we will be supporting them through the process."

The company's share price - which has lost more than a quarter of its value over the past year - rose 3% in the moments after the announcement was made.

The union Usdaw took a different approach to that of investors.

National officer Joanne McGuinness said: "The next few weeks will be a worrying time for our members in Morrisons and we will do everything possible to support them.

"Today marks the start of a 45-day consultation period, where we will look in detail at the company's business case.

"Our priority will be to safeguard as many  jobs as possible, maximise employment within the business and get the best possible outcome for our members affected by this restructuring."

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Three Inmates To Die After Botched Execution

Three convicted killers are set to be put to death over the next two days in what would be the first executions since a botched lethal injection in April.

The three are set to die in three different states - Florida, Georgia and Missouri - by the same controversial method.

Across America states have been debating the use of lethal injections, especially the sometimes untested cocktails of drugs and how they are obtained.

Marcus Wellons was convicted of the rape and murder of a 15-year-old girl

The botched execution of Oklahoma inmate Clayton Lockett in April added to the concerns.

Lockett appeared to be in significant pain during his execution, and died 43 minutes later from an apparent heart attack.

Since then, nine executions nationwide have been stayed or postponed.

"I think after Clayton Lockett's execution everyone is going to be watching very closely," said Fordham University School of Law professor Deborah Denno, a death penalty expert.

"The scrutiny is going to be even closer."

All three states where executions are planned refuse to say where they get their drugs, or if they are tested, even as lawyers for the death row inmates challenge the secretive process.

Death row inmates John Winfield (L) and John Ruthell Henry

The three death row inmates are:

:: Marcus Wellons, who is set to die on Tuesday night in Georgia. Wellons was convicted in the 1989 rape and murder of India Roberts, his 15-year-old neighbour in suburban Atlanta.

:: John Winfield, who faces execution at 12.01am local time on Wednesday in Missouri. Winfield shot three women in the head - including his on-again, off-again girlfriend, with whom he had two children.

Two of the women were killed. Winfield's girlfriend survived but was blinded.

:: John Ruthell Henry, who is to be executed at 6pm local time on Wednesday in Florida. Henry stabbed his estranged wife, Suzanne Henry, to death a few days before Christmas in 1985.

Hours later, he killed her five-year-old son from a previous relationship. Henry's lawyers claim he is mentally ill and intellectually disabled.

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Picasso Portrait Of Mystery Man Revealed

A hidden painting has been found beneath one of Pablo Picasso's first masterpieces, The Blue Room.

Scientists and art experts have used infrared imagery to reveal a bow-tied man with his face resting on his hand, the Associated Press has reported.

They are now trying to work out who the man is that Picasso covered up in 1901 during his famous blue period.

It has taken a team from The Phillips Collection, National Gallery of Art, Cornell University and Delaware's Winterthur Museum to develop a clear image of the mystery picture.

"It's really one of those moments that really makes what you do special," said Patricia Favero, the conservator at The Phillips Collection.

Picasso died in 1973

"The second reaction was, 'well, who is it?' We're still working on answering that question."

Conservators have long suspected there might be something under the surface of The Blue Room.

Brushstrokes on the piece clearly don't match the composition that depicts a woman bathing in Picasso's studio.

A conservator noted the odd brushstrokes in a 1954 letter, but it wasn't until the 1990s that an x-ray of the painting first revealed a fuzzy image of something under the picture. It was not clear, though, that it was a portrait.

Scholars have ruled out the possibility that it was a self-portrait.

One possible figure it could be is the Paris art dealer Ambrose Villard who hosted Picasso's first show in 1901.

But there is no documentation and no clues left on the canvas, so the research continues.

Picasso may have reused his canvasses because they were very expensive at the time and he could not afford a new one every time he tried out a new idea.

Hidden pictures have been found under other important Picasso paintings.

A technical analysis of La Vie at the Cleveland Museum of Art revealed Picasso significantly reworked the painting's composition.

Conservators also found a portrait of a moustached man beneath Picasso's painting Woman Ironing at the Guggenheim Museum in Manhattan.

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Rik Mayall's Family Requests Funeral Prayers

Rik Mayall's fans have been asked for their "thoughts and prayers" on Thursday when his family will hold his funeral.

The comedian's widow Barbara said: "Knowing the swell of love you all share with us we would like to let you, the fans, know that we will be having a private family funeral for Rik, as I am sure you will understand.

"We will be burying him at 2pm on Thursday June 19 if you would like to join us in thoughts and prayer at this time.

"Thank you again for all your love and support to all our family, it brings great strength."

A memorial service for the star, who died last week aged 56, is expected to be held in September.

Mayall and his wife Barbara

The Bottom and Young Ones actor collapsed at home in southwest London after what Mrs Mayall described as an "acute cardiac event".

Mayall's career also included roles such as Lord Flashheart in Blackadder and the conniving Conservative MP Alan B'Stard in The New Statesman.

Since his death, tributes have flowed in for the performer who is survived by his wife and three children, Rosie, Sidney and Bonnie, and his 2010 World Cup song Noble England has gone straight into the top 10 of the UK's official singles chart.

The track, which was originally recorded for the last World Cup, failed to chart the first time around, but thanks to a social media campaign set up in his memory it went in at number seven on Sunday.

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Benghazi Attack: US Forces Capture Suspect

US forces have captured a suspected ringleader of the 2012 attack on the American consulate in Benghazi, Libya, says the Pentagon.

Ahmed Abu Khattala was snatched on the outskirts of Benghazi in a secret raid by American troops, working alongside the FBI, at the weekend.

He is the first alleged perpetrator apprehended in connection with the September 11, 2012 assault on the US diplomatic compound that killed four Americans, including Ambassador Chris Stevens.

Defence Department Press Secretary Rear Admiral John Kirby said that Khatalla had been seized on Sunday. 

Hillary Clinton was Secretary of State at the time of the attack

"He is in US custody in a secure location outside of Libya," said the statement. "There were no civilian casualties related to this operation, and all US personnel involved in the operation have safely departed Libya."

Fox News, which broke the story, reports that Khattala is en route back to the US on board a US Navy ship.

Libyan authorities said early on that Khattala had led the assault as a commander of Ansar al-Shariah, a Benghazi-based Islamist group.

But in media interviews shortly after the attack, Khattala denied membership of the group or involvement in the incident.

The assault became a flashpoint in the 2012 US presidential campaign, amid conservative allegations that the White House tried to play down Benghazi in order to avoid any backlash from voters.

Last month, Republicans launched a congressional committee to investigate Benghazi.

Potential 2016 White House candidate Hillary Clinton, who was Secretary of State at the time of the assault, is likely to face questions on the matter during an interview with Fox News to be screened on Tuesday night.

More follows...

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China Talks Secure £14bn In Trade Deals

Commercial deals worth £14bn have been signed between the UK and China after David Cameron held Downing St talks with Chinese Premier Li Keqiang.

Speaking at a news conference following the talks, Mr Cameron hailed the strong trade links between the two countries, saying they were "central" to Britain's economic future.

"Today we have signed deals worth more than £14bn, securing jobs and long-term economic growth for the British and Chinese people," Mr Cameron said.

"Ours is truly a partnership for growth, reform and innovation."

Anti- China protests have been held in Whitehall

The Chinese leader has been accompanied by a delegation of more than 150 business leaders and top level Communist Party officials for his UK visit.

The visit is the first by a Chinese leader in more than three years.

Mr Li was given a guard of  honour and an audience with the Queen at Windsor Castle in a move which angered critics of China's record on Human Rights and political freedoms.

Campaign group Free Tibet had written to Buckingham Palace requesting the meeting with the Queen be cancelled.

Britain's Deputy Prime Minister also used unusually direct language and risky timing to describe China's people as being "politically shackled to a doctrine which is a one party state, a communist state".

Mr Li met the Queen ahead of talks with Mr Cameron

"Of course we can't agree on large scale and systematic human rights abuses which still continue in China to this day: the many journalists who are persecuted, the very widespread use of the death penalty," Nick Clegg said at his weekly press conference on Monday.

Mr Clegg added that despite these concerns, he hoped to have "very productive discussions" with the Chinese leadership.

His comments were said by members of the Government to be "not very helpful".

The commercial deals, which Sky News understands have been under negotiation right up until the last minute, were expected to cover trade and investment across a variety of sectors including energy, transport, finance, health and education.

Mr Li during his visit to Windsor Castle

China's sovereign wealth funds could help to finance major British infrastructure projects including the HS2 high speed rail link and the next generation of nuclear power stations. China is understood to be putting its largest share of European investment into the UK.

Britain's two biggest oil companies are unveiling deals - with BP confirming a Sky News exclusive of a contract to supply liquefied natural gas, saying it would be worth £12bn over 20 years.

An arm of the World Bank is to list the first "green bond" denominated in China's currency in London.

Britain has also announced a new streamlined visa service for Chinese travellers.

The UK is not part of the visa agreement which allow overseas visitors to travel to twenty six countries in Europe which means that 90% of Chinese tour operators say they leave the UK off their itinerary every year.

The visit is Li Keqiang's first to the UK since he became China's Premier

The visa application process will now be simplified, allowing tourists to apply using the same form as other European countries. Chinese visitors will also be able to use an Irish visa to travel to the UK.

China's growing middle class and the rebalancing of its economy from export to domestic consumption also presents Britain with huge opportunities.

British fashion giant Burberry opened its largest Asian store in Shanghai in April. The company's China strategy has helped boost global revenues.

In the automotive sector, Jaguar Land Rover has seen staggering success across China with 130 dealerships in 90 cities. The company is now Indian-owned, but the cars are made in the UK.

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