Nadia, a blue-eyed brunette claims to have met him when she worked as a stripper in a top Moscow nightclub, and says she is currently in hiding, fearing for her life.

She claimed that as she prepared for marriage to Saif, she had to fly to Paris to have an operation to 'restore' her virginity. '

'The doctor proved my innocence in the presence of Saif's aunt. Then I embraced Islam,' she added.

'I tried to have a normal family, but Saif wanted to live as a single man with lovers and orgies,' she said in a Ukrainian newspaper interview.

While there is no proof of her claim of have married and divorced Saif after two years, her claim appears to be taken seriously in Russia and Ukraine.

If she is who she says, she could be a key witness at his trial whether it is in Libya or under the jurisdiction of the International Criminal Court.

One aspect of his trial is likely to be his alleged friendship with a number of prominent British figures, including Prince Andrew, Tony Blair and Lord Mandelson.

High life: Nadia claims playboy Saif loved luxury and money and was a womaniser. He is pictured here at the Viennese Opera Ball in 2006

'Our house looked like more as bordello: a lot of his friends and a lot of women,' she said.

'We got married under religious traditions, I embraced Islam for that, but nobody treated me as the mistress of the house.

'There was no respect at all. My husband tried to make me a submissive Eastern woman, and I couldn't stand that attitude.

'That broke me, ate me from inside. And what's more important, Saif took drugs and he couldn't control himself when he was under narcotics.

'He had certain sexual perversions in sex, for example, he liked to do it in public. I understood that we couldn't live together.'

Nadia, who is believed to be 29, claimed that their relationship ended after a furious row in a restaurant which culminated with him beating her and throwing her out of a window but she miraculously survived.

She claimed she was in a coma for 47 days, and that Gaddafi - who acknowledged her but never started a conversation with her - was outraged by his son's behaviour.

Gaddafi was known to have employed Ukrainian nurses in his medical team, but until now it was not known his second son has a wife from the former Soviet country.

Arrested: Sair al-Islam Gaddafi sitting with his captors in Obari airport on Saturday

Of Gaddafi himself she said: 'About me being in hospital, he was in a fury. He kicked Saif away to the desert. It could spoil the reputation of the family that was already not so clean.'

She left Libya and returned to Moscow. 'The last time he came was in 2008, and he suggested that we lived together again ~ but I was cold to him by that time.'

Nadia said she was working in Moscow until 2010 but a mutual friend then told her to disappear or she could face danger.

She claimed that Saif could not have replaced his father. 'He was afraid of his father, as of fire. And Gaddafi, I think, despised him for internal weaknesses.'

The fall: Saif al-Islam sits after his capture, with his fingers wrapped in bandages and his legs covered with a blanket, at an undisclosed location

Playboy Saif loved luxury and money. She said: 'He was cheating on me all the time.'

Nadia - it is not known if this is her real name - is apparently in hiding in the Crimea where she says she is fearful of his enemies. 'I don't know any secrets, but still I'm scared,' she said.

She claims not to be rich but for Saif 'it was all in a day's work to spend $20,000 (USD) at a restaurant.

'When we separated I had only luxurious earrings which I managed to sell for $1million. I lived in Moscow on this money. Now almost nothing is left.'

Her most recent interview was with Ukrainian paper Respubika. It was made shortly before his capture.

'I thought Saif would turn my life into an Eastern fairytale,' she said. 'It didn't work.'

householder, who stabbed to death a burglar trying to break into his cannabis factory, told an inquest he did not mean to harm anybody. Barry Day said he remembered grabbing a kitchen knife as the door to his house, in Beckside Road, Lidget Green, Bradford, was being kicked in, sticking the knife through a hole in the door and waving it. Shazad Habib-Ur Rehman, 32, suffered a stab wound to the chest and died in Bradford Royal Infirmary five days after the incident, in October last year. Mr Day, giving evidence yesterday at the inquest into Mr Rehman’s death, said he was not aware he had stabbed someone and did not intend to harm anyone. He said he was in fear. Detective Chief Inspector Simon Atkinson, of West Yorkshire Police’s Homicide and Major Enquiry Team, told the Bradford hearing consideration was given to prosecuting Mr Day, 62, for murder and a file was submitted to the Crown Prosecution Service, but the CPS decided there was insufficient evidence. He was prosecuted for cultivating cannabis, after 75 plants and a hydroponic cannabis factory were found upstairs at his house, and given a suspended prison sentence. The dead man’s three accomplices, who have all served prison sentences for attempted burglary in connection with the incident, told the inquest they had decided to burgle the house after hearing about the cannabis factory. Gareth Dobson, 23, of Windhill, said he kicked in the bottom panel of the door. He said Mr Rehman said to Mr Day: “We don’t want no trouble, we just want the weed. That’s when Mr Day lashed out and stabbed him with a knife.” The friends drove Mr Rehman to hospital. Mohammed Waqas Khan told the inquest: “We just wanted to take what there was and go. There was no intention to go in there to endanger anyone’s life.”

VICTIMS of Libyan-sponsored IRA terrorism in the UK have called for Colonel Muammar Gaddafi’s former spy chief to be tried in the International Criminal Court for his part in republican atrocities. Libya’s interim government reported on Sunday that Abdullah al-Senoussi had been captured. The interim government is keen to try him in Libya but international concerns have been raised about the possibility that he may not receive a fair trial. Representatives from the International Criminal Court are visiting Libya in order to make representations. Former intelligence minister Senoussi was seen as the right-hand man of dictator Gaddafi, who was killed shortly after his capture by rebel forces last month. IRA victims campaigners Willie Frazer and London-based Jonathan Ganesh believe Senoussi was the key link between the Libyan regime and the Provisional IRA in Northern Ireland. Libya sent numerous shipments of arms and Semtex to the IRA throughout the Troubles, several of which were intercepted. In a joint statement, they said: “Colonel Abdullah al-Senoussi has been involved in the murder of countless people within Libya and has also been involved in the murder of Irish and UK citizens due to his unprecedented work with the IRA and other international terrorist organisations. “We are now drafting a detailed petition to the International Criminal Court to ensure that Colonel Senoussi will be held accountable for all his crimes against humanity. “Senoussi must be held accountable due to his involvement in the murder of all the innocent people who lost their lives due to the Semtex he supplied to the IRA.” Senoussi was one of the last senior figures from the Gaddafi regime still on the run. Gaddafi’s son, Saif al-Islam, was seized on Saturday and both he and Senoussi are wanted for alleged war crimes by the International Criminal Court (ICC). Senoussi, a brother-in-law of Col Gaddafi, is said to have been arrested at his sister’s home in the southern town of Sabha on Sunday. He has been accused of human rights abuses, including his implication in the 1996 massacre of more than 1,000 inmates at the Abu Salim prison in Tripoli. Mr Frazer and Mr Ganesh added: “We are now calling on the international community to ensure that he must stand trial for his international crimes against humanity within the ICC. “Due to his involvement with IRA terrorism he became a defendant within our civil legal action within the USA judiciary during April 2006 as we desperately tried to bring him to justice. “This is an evil man who we will not allow to escape international justice. He must be immediately handed to the ICC for all his international crimes against humanity.”

Don't just book it, Thomas Cook it. So runs the slogan. Would you? Here's interim (that's reassuring) chief executive Sam Weihagen doing his safe-as-houses routine: "It's business as usual. We are trading within all our covenants. We have all the protection in place like any other travel company, and customers should not worry at all." Well, not quite like any other travel company. Thomas Cook of course holds an Air Travel Organisers' Licence from the Civil Aviation Authority which means customers should get their money back in the event of calamity. But the simple fear of being stranded a week after passengers of Austria's Comtel Air had to bribe pilots with £20,000 just to return to Birmingham is bound to unsettle would-be customers. There's a circle at work here and it is vicious. Given the choice between a similarly priced holiday with Thomas Cook or, say, Thomson, why would you risk the former? To counteract this, Thomas Cook might have to slash prices. That will eat into margins, cut profits and put banking covenants at risk. It might very quickly find it needs to borrow even more money. The company insists: "This is a robust business that has a strong future". We'll see.

COPS did not know an East European axe murderer was living in the UK until he caused a killer car crash, a court heard yesterday. Intars Pless, 34, hacked through a friend's throat in his native Latvia, then moved to Britain after he got out of jail. But Lincoln Crown Court heard police can only check a foreign national's record if they break the law here. So Pless's horrific crime came to light only after he drove into moped rider Valentina Planciunene, 37, while over twice the limit. Stuart Lody, prosecuting, told the court: "On the night of Valentine's Day he decided it would be a perfectly good idea to drink a very large quantity of whisky. Surprised "He and a friend spent a considerable period of time drinking whisky and driving around. "During the driving he was possibly drinking whisky as well. An empty whisky bottle was found in the boot of the car. "At the time of the collision he was heavily under the influence of alcohol. His ability to drive would have been severely impaired." Pless was convicted of causing death by dangerous driving after the jury heard he left her dead in the road in Wyberton Fen, Lincs. He was told he faces a long jail term. The judge also called for his deportation.

Diners at some of the city's most popular restaurants had their credit card details stolen by waiters working for gangs, who targeted customers with American Express black cards, then spent millions of dollars on expensive clothes and vintage wine, it is alleged. The cards of wealthy customers at Smith & Wollensky, the Capital Grille and Wolfgang's Steakhouse restaurants were allegedly "skimmed" and used to buy Rolex watches, Jimmy Choo shoes and Chanel handbags. Almost 30 people have been charged with crimes, including racketeering, conspiracy and grand larceny, after the alleged fraud ring was broken by police in Manhattan. Seven waiters at the restaurants are alleged by prosecutors to have been recruited by Luis Damian "D.J." Jacas, the 41-year-old alleged ringleader, and equipped with card-copying devices. They were instructed to focus on customers with premium credit cards, including the American Express black card, so that expensive purchases would not trigger alerts to customers. "The thieves were very selective, waiting until they were handed cards with extremely high or unlimited credit," said Manhattan district attorney Cyrus Vance.

Hollywood star Natalie Wood  was screaming for help as she drowned, according to a witness whose account has never been disclosed.

Retired stockbroker Marilyn Wayne has told The Mail on Sunday she tried to report the star’s ‘last desperate cries for help’ but was ignored.

Los Angeles police last week said ‘substantial new evidence’ has led them to reopen their investigation into the death 30 years ago this week. 

Mystery: Natalie drowned after a row while drinking with husband Robert Wagner and co-star Christopher Walken

The West Side Story actress’s drowning off the coast of California was ruled accidental at the time. Now a police source has described Wood’s husband, Hart-To-Hart star Robert Wagner, now 81, as ‘a person of interest’ in the case. 

Wagner – who was on his yacht Splendour with his wife and her alleged lover, Oscar-winner Christopher Walken, on the fateful night – has always maintained Wood, 43, accidentally slipped and drowned as she drunkenly tried to tie up a dinghy against the boat.  

Wayne, 68, believes new statements from her and Dennis Davern, skipper of the Splendour, had triggered the latest police probe.

She said: ‘I have been waiting for years for them to take my account seriously but they would never listen.’

Wayne was on a nearby boat with a boyfriend called John on the night of November 28, 1981.

In a sworn statement submitted to the LA Sheriff’s department, Wayne said: ‘My cabin window was open. A woman’s voice, crying for help, awakened John and awakened me, “Help me, someone please help me, I’m drowning”, we heard repeatedly.’

Wayne said John turned on their yacht’s beam light but they couldn’t see anything. Wayne claims she called the harbour patrol officer ‘but no one answered’ and the local sheriff’s office, who told her a helicopter would be sent. But it did not come. 

She also claims to have heard a man’s slurred voice from the direction of the Splendour saying: ‘Oh, hold on, we’re coming to get you.’ 

Natalie Wood and husband Robert Wagner (left) on their boat Splendour, with captain Dennis Davern (right), just weeks before she died

‘Not long after that the cries for help subsided,’ she recalled.

It was only when Wayne gave an account of her story to a U.S. TV crew for a programme scheduled to air next week, that she was asked to give a statement to police.

Wayne’s account matches that of Davern who says he was ‘coerced’ by Wagner’s lawyer into backing Wagner’s story of an accidental drowning after the death.

Davern’s police statement describes a night of heavy drinking that ended in a furious row between Wagner and Wood after Walken had retired to bed.

Emotional: In a television interview, Lana Wood said her sister was terrified of water

Wood's sister has claimed the actress was so scared of water that she would never have tried to get into a dinghy voluntarily before she drowned.

The coroner's ruling, based on accounts from the actress's husband Robert Wagner, outlined how she had fallen into the sea after attempting to secure the small boat, but that finding should not be believed, Lana Wood said.

Wood had developed a deep-rooted fear of water ever since her mother warned her as a child that she would meet her death by drowning in 'dark water', Lana Wood told TMZ.

She said: 'It gave Natalie a great fear. She hated the water, she wouldn't even go into her own pool at home.'

Coroner's officials at the time wrote that Ms Wood was 'possibly attempting to board the dinghy and had fallen into the water, striking her face.'

Lana Wood, also an actress best known for her part in Diamonds Are Forever, had never believed that her sister would have tried to sail herself at night, even after drinking for several hours.

The 65-year-old also claimed that the actress's husband left her to drown on the night of her tragic death.

In an emotional interview Lana Wood said that when Natalie was in the water, Wagner, who she calls RJ, had forbidden the captain from helping her and said: 'Leave her there, teach her a lesson'.

Speaking to TMZ, she claimed Dennis Davern, captain of the Splendour yacht from which Ms Wood fell and drowned in 1981, told her what Wagner had said.  

Lana told TMZ: 'He (Dennis) said that everyone was quite drunk and that a fight broke out and that Natalie was in the water and he and RJ did nothing to pull her out.

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Mystery: The yacht 'Splendour' was pictured today moored in a harbor in Honolulu, Hawaii after investigators reopened the case into the mysterious death of Natalie Wood

Seeking the truth:  Lana Wood, right, said she never believed Wagner's story about how her sister Natalie, far left, died and believes only Wagner can give her the truth

'He said, and this is a direct quote from what Dennis told me: 'Leave her there, teach her a lesson'.'

In her interview she also claimed that the captain told her Wagner called his attorney before he alerted the Coastguard to the incident. 

The revelations come as the police confirmed today that they will reopen the investigation into the death and said they may use new DNA technology after receiving 'credible and substantial information'.

They said, until they find evidence to say otherwise, Natalie Wood's death will still be ruled as an accidental drowning.

The sheriff said at this point her actor-husband Wagner is not a suspect.

One of the key witnesses in the reopening of the investigation is Mr Davern, who police confirmed they would interview.

Mr Davern has blamed Ms Wood's husband for the death,  claiming that - at the behest of Wagner - they did not do enough to find Ms Wood, after he advised against calling coastguards for four hours.

When asked if he thought Wagner was responsible for Ms Wood's death, he said: 'Yes, I would say so.'

Bee Gee Robin Gibb, who has been increasingly frail in recent months, has been diagnosed as suffering from liver cancer. The 61-year-old learned he had the disease several months ago, but the news only emerged this week when he was rushed to hospital. He is reported to have spent five hours in hospital in Oxford on Tuesday before being allowed home, and his brother and bandmate Barry is reported to have flown to see him - along with his 91-year-old mother Barbara. A source told The Mirror: "Robin is not good and there is a lot of concern for him. You can use your wealth to call in the best experts but sometimes no amount of fame, prestige and money can change things when it comes to cancer. "But Robin is a strong character, he is a fighter and has been encouraged by all the online messages from his fans. Dwina is doing everything ­possible and hasn’t left his side. "There will be difficult times ahead but Robin will never give up and his loving family will make sure he has everything he needs. There is ­frustration because Robin has always looked after himself. He doesn’t drink, eats well and exercises daily."

British government bonds are attracting strong support, in sharp contrast to their troubled eurozone peers as investors seek a safehaven from a debt crisis now spreading to Italy, Spain and even France. British government bonds, or gilts as they are known, are in huge demand largely because the Bank of England is buying them up with newly-created money that it hopes can in turn be used to stimulate an anaemic economic recovery, analysts say. But investors are also reassured by the British coalition government's determined efforts to slash state debt and avoid the severe troubles that have snared the crisis-hit eurozone trio of Greece, Ireland and Portugal.

The PP mayor of El Ejido in Almería, Francisco Góngora, has criticized the "negligence" of the former government team and announced that the city council are to begin legal proceedings against the promotions company who were to stage a concert by the Rolling Stones in 2006.

Following the findings of "many irregularities" in the case, the council are now seeking to claim a total of 2,251,000€, which they feel they are owed, in view of the cancellation.

The announcement was made at a press conference in which Francisco Góngora claimed that there was a “contractual obligation” by the promoter to ensure that the concert went ahead and that even if the company were insolvent, then they would seek recompense from the individuals responsible for the incomplete commitment made to the previous government team.

Information indicates that there was a contractual clause that stipulated that insurance must be provided that should the concert be cancelled, then the promoter would be able to repay any money owed, in full, through an insurance claim. It is believed that this insurance was never provided.

Although some money is said to have been returned, it was only about half of the 4.176 million euro that the city had paid for the organisation of the concert.

There also appears to be a lack of information as to where the money actually went and who might be accountable for the cash given to the company by the council. There have also been allegations made that this whole case could be part of a much wider campaign of both political and corporate corruption.

Now, reviewing the clauses of the original contract, it has been found that the rights to claim the money back would expire after 15 years.

Góngora, also stated that there were economic losses of 2.6 million euro recorded after the second concert by the Rolling Stones in El Ejido held in 2007, which were due to "mismanagement" whereas the projected ticket sales were calculated at 60,000 attendees, but only 20,000 tickets were actually sold.

Referring to the award of the second contract by the previous council, Góngora  stated that "despite the failed previous contract they rehired the same company for four million euro of which they did not deduct anything owed," continuing that he considered the failings to be down to the complacency of the previous PSOE government.

The Ministry of Interior for Andalusia had already imposed a 60,150 euro fine on the organisers for breaching the rules on show cancellations in failing to return ticket money within the maximum four days which is set out by the governing body. In actual fact, it took several weeks for the organisers to return the money raised on the 50,500 tickets sold for the cancelled concert.

Looking haggard and fearful, Saif Al Islam Gaddafi cowers in terror after his capture by Libyan fighters yesterday.

His old swagger gone, the British-educated son of Colonel Gaddafi was clearly terrified that he might encounter the same fate as his father, who was killed a month ago.

Saif could yet face the death penalty for his crimes, but Libyan officials promised he would, at least, receive a fair trial. That trial could prove highly embarrassing for influential British figures – including Prince Andrew and Tony Blair – if Saif reveals details of the close links he enjoyed with them.

 

The 39-year-old former playboy and womaniser was captured trying to flee across the border into Niger. A mob of angry protesters tried to storm the plane but were beaten back by soldiers under orders to keep their prisoner alive so he could face justice.

Only three weeks ago Saif had vowed to avenge his father’s death, declaring defiantly: ‘I am alive and free and willing to fight to the end.’

But last night he was facing the likelihood of trial in his own country –  or extradition to the International Criminal Court in The Hague on charges of crimes against humanity. 

Thousands of Libyans celebrated in the streets after hearing that the fugitive, who remained loyal to his father’s murderous regime to the end, had been captured without a struggle.

The dictator’s heir was intercepted near the oil town of Obari as he tried to reach the frontier in a 4x4 vehicle, accompanied by three bodyguards. 

Desert fighters acting on a tip-off fired into the air and ground to bring the car to a halt.
As they checked the identity of those inside, Saif told them his name was Abdelsalam – which means ‘servant of peace’ – but he was immediately recognised and taken away by the fighters.

An anti-British backlash gathered pace in Germany yesterday as David Cameron and Angela Merkel struggled to disguise the gulf between them on how to tackle the eurozone crisis. The Prime Minister returned from talks in Berlin with the German leader having made little progress in agreeing emergency action to stop the financial contagion spreading. Tensions were inflamed after a close ally of Ms Merkel predicted Britain would eventually adopt the euro. The German media joined the clamour, with the mass-circulation newspaper Bild questioning whether it might be better for Britain to leave the European Union altogether. Behind the leaders' smiles at a joint press conference yesterday, they acknowledged fundamental differences remained on three key issues: * New eurozone rules. Ms Merkel called for "limited" changes to European treaties to impose fiscal discipline on the single currency but stressed negotiations should only be for eurozone members. Mr Cameron wants Britain involved in the talks because of the potential impact of the decisions on the UK; * Whether the European Central Bank should intervene to support the eurozone. Ms Merkel – backed by the German public – is fiercely resisting the move, which she fears would fuel inflation. But Mr Cameron insisted that all the eurozone's institutions had to "do what is necessary to defend it"; * Taxing financial transactions within the EU. Ms Merkel supports the step but Mr Cameron fears it would disproportionately hit the City and said it would work only if applied globally. The Prime Minister said: "It is obvious we don't agree on every aspect of European policy, but I am clear we can address and accommodate and deal with those differences." He also stressed the two leaders were "very good friends" and "absolutely" in agreement on the importance of completing the single market, budget discipline and stopping EU spending from rising by more than inflation. But shortly before Ms Merkel also paid tribute to the "strong bonds of friendship" between the countries, her veteran Finance Minister used less diplomatic language in which he seemed to predict the end of sterling. Wolfgang Schäuble told the news agency DPA it was Britain's right to remain outside the eurozone "for the time being". But he said it was a matter of time before non-eurozone states became convinced of the euro's advantages. "One day the whole of Europe will have a single currency and perhaps it will happen more quickly than many people on the British island think," he said. Meanwhile, in an article headlined 'The Sick Empire', Der Spiegel magazine described Britain's plans to eradicate its budget deficit by 2015 as "utopian". It added: "The situation on the island is more dramatic than in parts of the continent. It's bad news nearly every day. "But the British government gets away with it by proclaiming carry-on-as-usual policies and by blaming its economic stagnation on the eurozone." The war of words between Berlin and London erupted on Tuesday after Volker Kauder, Ms Merkel's parliamentary party leader, lambasted Britain for being too self-centred on Europe. "Just looking for their own advantage and not being prepared to contribute – that cannot be the message we accept from the British," he told a congress of his ruling conservatives. The former Prime Minister, Sir John Major, weighed in behind Mr Cameron last night as he condemned the financial transaction tax as "a heat-seeking missile...aimed at the City of London". He also warned of an "undemocratic" move towards eurozone fiscal union. In an interview with Al Jazeera, he also predicted "one or two countries" would be forced to quit the euro.

Northern Rock has been sold to Virgin Money, for £747m, marking the first return to the private sector of a UK government-backed bank since the financial crisis. Virgin, the retail banking arm of Sir Richard Branson, will pay £747m in cash upfront – roughly half of the £1.4bn of government equity that was injected into Northern Rock following its collapse in 2007. The taxpayer could receive up to an additional £250m if the business is sold or floated in future. The sale of the “good” part of the bank marks a £400m loss for the government. The bulk of the funding for Virgin’s bid was provided by Wilbur Ross, the US billionaire investor, who owns a 20 per cent stake in the group. More ON THIS STORY Q&A How the deal affects you Lombard Branson risks Northern exposure Metro Bank has issued just 100 mortgages Good news for Lloyds as Co-op bids for branches On London UK domestic banks ON THIS TOPIC N Rock expects to make profit in 2012 Northern Rock to set off privatisation wave Hedge fund says Northern Rock call is wrong Virgin’s success follows an unsuccessful first attempt to acquire Northern Rock before its nationalisation almost four years ago. This time Virgin faced very little competition for the business, which includes 75 high-street branches, 1m customers and £14bn of mortgages. The sale signals the end for one of the most notorious brands in British high-street banking.

THE Bank of England warned today that the eurozone debt crisis is the “single biggest risk” to the UK recovery as it forecast a dramatically increased threat of a double-dip recession next year. Its quarterly inflation report revealed a greater chance of the economy contracting in the first three quarters of 2012, compared with its August forecasts, as eurozone and banking concerns and squeezed household budgets continue to weigh on growth. The Bank slashed its central - or most likely - growth estimate to no more than 1 per cent in both 2011 and 2012 from previous forecasts of around 1.5 per cent and 2.2 per cent respectively. The worsened prospects for the UK economy mean inflation is likely to fall far quicker than previously estimated, hitting the Government’s 2 per cent target in the second half of next year before falling to as low as around 1.3 per cent in 2013. Bank governor Sir Mervyn King warned the “journey to a more balanced world economy will be long and arduous”. He said UK economic activity will be broadly flat until the middle of next year and added that the country faces a “difficult economic environment”. Today’s report backs the City’s view that the Bank will keep interest rates on hold for the foreseeable future and add another £75 billion to its quantitative easing programme by February. Vicky Redwood, chief UK economist at Capital Economics, said: “Even the Bank’s downgraded growth forecasts still look optimistic to us - we expect zero growth next year.”

Life is not easy for the financial market traders who are making things so hard for euro zone policymakers. There are no pumped-up traders cheering from their screens as Italy's bond yields rise or as France gets sucked into a debt crisis which has already forced Greece, Ireland, and Portugal to seek international bailouts. The mood is weary and fraught. Bond traders see their own business throttled off by the same market forces that squeeze Italy's public finances and stir speculation about France's triple-A credit rating. "Things have felt almost as bad as it was back during the Lehman days in terms of liquidity - it is increasingly hard to get any business done and, to be honest, we think it is going to get worse," a London-based bond trader said. "Two-way markets have gone, the size of business you can get done at these bid/offer rates is minimal, bonuses and jobs are being cut. It's depressing and what is worse, there is no guarantee that anything is going to be better next year." Talk to fund managers and it is easy to see why a debt crisis which has mutated into an existential crisis for the euro is not translated into a bonanza for traders. "What if the currency union falls apart? Our premise is that it doesn't happen. (But) if you think that is going to happen, don't buy equities. Don't buy anything. Just go and hide," a London fund manager running money for institutional investors said. UNRELENTING STRESS As investors stampede to exit some euro zone bond markets, price swings have become bigger and the business of trading -- which relies on finding buyers or sellers before the market moves against you -- has become harder. "People are just exhausted because of the intensity of what is going on," said a bond salesman in London who has been working in the financial market for decades. "It is unbelievable stress and it is unrelenting. People are just hunkered down and working their socks off as everything is just more difficult -- hedging your risk, avoiding losses, everything." There is somewhat less gloom in equity markets, where investors are still trying to spot pockets of value. But the extent to which stock markets have been moving in lockstep with the price of Italian, Spanish, or French bonds in recent days means that trading behavior is far from normal even in equities. "Over the past few days there have very quiet periods punctuated by mad dealing frenzies," said Yusuf Heusen, sales trader at IG Index in London. "The quiet periods have been really very quiet as traders have not been taking on much risk other than to short the euro markets. The busy periods are absolutely manic as everybody wants to get on at the same time and generally same direction and sell offs are extreme as a consequence."

Bank governor Sir Mervyn King sent a stark message to political leaders as he flagged an unresolved eurozone debt crisis as the "single biggest risk" to the economy. But despite cutting forecasts, some experts accused the bank of being too optimistic and have predicted another multibillion-pound injection into the economy as early as next month. In its quarterly inflation report, the bank slashed its central, or most likely, growth estimate to around 1% in both 2011 and 2012 - but compared to previous forecasts the Bank's projections reveal a greater chance of the economy shrinking in the first three quarters in 2012. The forecasts assume the problems in the eurozone do not deepen, quantitative easing is maintained at current levels and interest rates stay at record lows. The worsened prospects for the UK economy mean inflation is likely to fall far quicker than previously estimated, hitting the Government's 2% target in the second half of next year before falling to as low as around 1.3% in 2013. Sir Mervyn, who was formally knighted at Buckingham Palace on Tuesday, said UK economic activity will be broadly flat until the middle of next year and added that the country faces a "difficult economic environment". The bank's report backs the City's view that interest rates will be kept on hold for the foreseeable future and another round of quantitative easing (QE) will be rolled out before February. But some economists were still not convinced. Vicky Redwood, chief UK economist at Capital Economics, said: "Even the bank's downgraded growth forecasts still look optimistic to us - we expect zero growth next year."

I'm A Celebrity... Get Me Out Of Here! contestant Freddie Starr has been taken to hospital after suffering a severe allergic reaction in the jungle. According to the Daily Mail, Starr started feeling sick after completing the Greasy Spoon Bushtucker trial with The Only Way Is Essex star Mark Wright and doctors were called to assess the 68-year old's condition. An ITV spokesman has since confirmed the comedian's illness, stating: "Freddie Starr was taken unwell in the jungle. He was immediately attended to by on-site medics and taken to hospital where he was assessed by doctors." They added: "He will remain in hospital overnight as a precaution, and further tests continue. However, Freddie is in great spirits and keeping nursing staff entertained." A show-insider Down Under also explained to the newspaper that Starr's bout of ill-health has nothing to do with his well-documented heart problems, explaining: "Doctors have told us that it’s highly unlikely that what’s happened is related to any pre-existing condition, cardiac or otherwise." "They think he’s had a severe allergic reaction, but they may not be able to pinpoint the cause. The reaction could be due to a spider bite, he might have reacted badly to a leech or a tic, or even a snake he hadn’t noticed." They continued: "He might have reacted badly to the bark of a tree he leant on, or a leaf he touched in passing. Doctors are testing all of these things. The jungle is an alien environment for most of us, but the show is always prepared for all eventualities and this is no exception." "The unpredictability of the jungle is what sets this programme apart from other shows. The element of jeopardy is always there. However, the  celebs are watched 24-hours a day by a huge team of people." The Mail's source added: "There are dozens of cameras on the celebs, as well as 24-hour security in the camp and a huge crew around them. There are also on-site medics around the clock." As for weather the gruesome bug eating task was to blame, the mole claimed: "The foods are all tested on people before they reach the celebrities." "Extreme precautions are taken and bush tucker like the cockroaches are all bred hygienically. It’s unlikely that this is the cause of his reaction, but tests are continuing and we can't rule out anything."

I'm A Celebrity... Get Me Out Of Here! contestant Freddie Starr has been taken to hospital after suffering a severe allergic reaction in the jungle. According to the Daily Mail, Starr started feeling sick after completing the Greasy Spoon Bushtucker trial with The Only Way Is Essex star Mark Wright and doctors were called to assess the 68-year old's condition. An ITV spokesman has since confirmed the comedian's illness, stating: "Freddie Starr was taken unwell in the jungle. He was immediately attended to by on-site medics and taken to hospital where he was assessed by doctors." They added: "He will remain in hospital overnight as a precaution, and further tests continue. However, Freddie is in great spirits and keeping nursing staff entertained." A show-insider Down Under also explained to the newspaper that Starr's bout of ill-health has nothing to do with his well-documented heart problems, explaining: "Doctors have told us that it’s highly unlikely that what’s happened is related to any pre-existing condition, cardiac or otherwise." "They think he’s had a severe allergic reaction, but they may not be able to pinpoint the cause. The reaction could be due to a spider bite, he might have reacted badly to a leech or a tic, or even a snake he hadn’t noticed." They continued: "He might have reacted badly to the bark of a tree he leant on, or a leaf he touched in passing. Doctors are testing all of these things. The jungle is an alien environment for most of us, but the show is always prepared for all eventualities and this is no exception." "The unpredictability of the jungle is what sets this programme apart from other shows. The element of jeopardy is always there. However, the  celebs are watched 24-hours a day by a huge team of people." The Mail's source added: "There are dozens of cameras on the celebs, as well as 24-hour security in the camp and a huge crew around them. There are also on-site medics around the clock." As for weather the gruesome bug eating task was to blame, the mole claimed: "The foods are all tested on people before they reach the celebrities." "Extreme precautions are taken and bush tucker like the cockroaches are all bred hygienically. It’s unlikely that this is the cause of his reaction, but tests are continuing and we can't rule out anything."