Ministry of Gossip THE GOSPEL ON CELEBRITY AND POP CULTURE

Ministry of Gossip THE GOSPEL ON CELEBRITY AND POP CULTURE

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US benchmark borrowing costs plunged to levels last seen in 1946 and those for Germany and the UK hit all-time lows as investors took fright at what they see as a disjointed policy response to the debt crisis in Spain and Italy. In a striking sign of the flight to haven assets, German two-year bond yields fell to zero for the first time, below the equivalent rate for Japan, meaning investors are willing to lend to Berlin for no return. US 10-year yields fell as low as 1.62 per cent, a level last reached in March 1946, according to Global Financial Data. German benchmark yields reached 1.26 per cent while Denmark's came close to breaching the 1 per cent level, hitting 1.09 per cent. UK rates fell to 1.64 per cent, the lowest since records for benchmark borrowing costs began in 1703. "They are extreme levels because we are in an extremely perilous situation. People just want to put their money somewhere where they think they will get it back. People may soon be paying Germany or the US to look after their money," said Gary Jenkins, head of Swordfish Research, an independent credit analysis company. The flight to safety came as the situation in Italy and Spain, the eurozone's third- and fourth-largest economies, deteriorated further. Italy held a disappointing debt auction and saw its benchmark borrowing costs rise above 6 per cent for the first time since January. The euro fell 0.8 per cent against the dollar to under $1.24 for the first time in two years. Confusion over how the Spanish government's rescue of Bankia, the stricken lender, will be structured led the premium Madrid pays over Berlin to borrow to hit fresh highs for the euro era at 540 basis points. Analysts said the elevated level meant that clearing houses could soon raise the amount of margin, or collateral, that traders need to post against Spanish debt, a move that led to the escalation of crises in Portugal and Ireland. The European Central Bank has made clear to Spain that it cannot use the bank's liquidity operations as part of a recapitalision of Bankia. However, the central bank said on Wednesday it had not been officially consulted on the plans. Equity markets globally fell on the eurozone fears with bourses in Paris, Frankfurt and London all dropping 2 per cent. But Nick Gartside, international chief investment officer for JPMorgan Asset Management, noted that while US bond yields had halved since April last year the S&P 500 equity market was at the same level. "One of those two markets is mispriced. Core government bonds are an efficient market and they are ahead," he added. Investors said borrowing costs for the US, UK and Germany were likely to continue to fall amid a worsening economic backdrop and the threat of more central bank intervention. Wealth managers have been moving client assets into currency havens in recent weeks, with the Swiss franc and the US dollar among the biggest beneficiaries "Risk aversion, a rapidly slowing global economy and unusually low policy rates will pin these short and intermediate maturity bonds at unprecedented low levels for quite a while," said Mohamed El-Erian, chief executive of Pimco, one of the world's largest bond investors. Mr Gartside said he could easily see German rates going below 1 per cent, following a path that only Japan and Switzerland have taken among major economies, while the US and UK could dip under 1.5 per cent. Markets are increasingly resigned to more turmoil until policy makers take more radical action. The two most popular plans of action for investors are for the ECB to buy Spanish and Italian bonds in unlimited size or for eurozone countries to agree on a fiscal union involving the pooling of debt. "You have to throw everything at it. Spain is just too big for half measures. The next intervention has to be not just massive in size but it has to show a total commitment," said Mr Jenkins. He recommends that the ECB set targets either for the premium Spain and Italy pay to borrow over Germany or for their yields.


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Property prices in the capital’s most sought-after postcodes have been driven up by investors moving funds out of assets held in euros to buy into what is seen as a “safe haven” alternative. Foreign money seeking a refuge from the wider economic turmoil accounted for 60pc of acquisitions of prime central London property between 2007 and 2011, according to a report by Fathom Consulting for Development Securities. If the shared currency broke up completely, London property would initially be boosted by the continued flight towards a safe haven, the report predicts. But, once the break-up had taken place, demand for these assets as an insurance against this event would start to ebb. “Although fears about a messy end to the euro debt crisis may account for much of the gain in prime central London (PCL) prices that has taken place over the past two years, we find that a break-up of the single currency area is also the single greatest threat to PCL,” said researchers.


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Up until now, Lord Justice Leveson has only held the future of the British press in his hands. Today, despite all his protests to the contrary, his inquiry may determine the fate of the culture secretary, Jeremy Hunt. The judge insists that it is not his job to put any minister in the dock and that he certainly will not be giving his verdict on whether there have been any breaches of the ministerial code. Nevertheless, the prime minister has made it clear that he sees today's hearing as the moment when Mr Hunt must defend his much criticised handling of News Corp's £8bn bid for total control of BSkyB. The culture secretary has, I'm told, submitted more than 160 pages of internal memos, emails and text message transcripts to the Leveson Inquiry. I understand that he will insist that, despite having originally been a cheerleader not just for Rupert Murdoch but also for his bid, he acted in ways which frustrated it rather than accelerated it once he was made the minister in charge. He will claim that he referred it to the broadcasting regulator Ofcom when told by officials that it wasn't necessary to do so. He is likely to face questions about why he did not follow Ofcom's advice to refer the bid to the Competition Commission. He is likely to reply that he was given legal advice that he had first to consider News Corps offer to spin off Sky News so as to deal with so-called plurality issues. The culture secretary is likely to be asked how he can claim to have been unaware of the scale or nature of the contact between News Corp and his political adviser, Adam Smith - who resigned once his flood of emails and texts were revealed. I understand that Jeremy Hunt originally believed that his adviser had done nothing wrong and told friends he would resign himself rather than letting a junior official resign for him. The prime minister shows no sign yet of wanting to force him out - believing that however bad things may now look, Mr Hunt didn't actually do anything wrong or anything which helped the Murdochs and their bid. Labour argue that - even before today's hearing - it is evident the culture secretary should go as he is in breach of the ministerial code for failing to supervise his adviser, and for misleading the House of Commons when he wrongly asserted he had published all contacts between his department and News Corp - as well as claiming never to have intervened to affect the outcome of the bid.


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David Cameron's former communications chief Andy Coulson has been charged over allegations he committed perjury during the trial of former MSP Tommy Sheridan. The 44-year-old was detained for questioning at Govan police station in Glasgow by officers from Strathclyde Police. More than six hours later, the force confirmed he had been arrested and charged with perjury. A report will be sent to the procurator fiscal which will decide if Coulson is to face court proceedings. The former News of the World editor gave evidence at Sheridan's perjury trial at the High Court in Glasgow in December 2010, while he was employed by Downing Street as director of communications. At the trial, he claimed he had no knowledge of illegal activities by reporters during the time that he was editor of the now-defunct newspaper. He said: "I don't accept there was a culture of phone hacking at the News of the World." Sheridan was ultimately jailed for three years in January last year after being found guilty of perjury during his 2006 defamation action against the News of the World. He had been awarded £200,000 in damages after winning the civil case but a jury found him guilty of lying about the tabloid's claims that he was an adulterer who visited a swingers' club. The former Scottish Socialist Party (SSP) leader was convicted of five out of six allegations in a single charge of perjury relating to his evidence during the civil action at the Court of Session in Edinburgh. Sheridan was released from jail in January this year after serving one year of his sentence and vowed to continue the fight to clear his name. Coulson was arrested last year in relation to Scotland Yard's long-running investigation into phone hacking at the newspaper. He was held in July on suspicion of conspiring to intercept communications and corruption, and had his bail extended earlier this month. Coulson resigned as editor in 2007 after the paper's former royal editor Clive Goodman and private investigator Glenn Mulcaire were jailed for phone hacking. In May that year, he was unveiled as director of communications and planning with the Conservative Party. He quit his role as Downing Street communications chief in January last year after admitting the News of the World phone-hacking row was making his job impossible.


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Julian Assange's fight to evade extradition to Sweden appeared doomed today though he was given a stay of execution by the highest court in the land. His celebrity-endorsed legal battle trundled on without him as the self-proclaimed champion of truth and transparency remained stuck in London's notorious traffic, undoubtedly disappointing his legion of fans. While vastly diminished in number from the early days of the furore surrounding the WikiLeaks founder, they were as vociferous as ever, penned in outside the Supreme Court yesterday, carrying megaphones, guitars and banners proclaiming “Free Assange” and “God Save Julian”. Mr Assange, 40, had argued that an European Extradition Warrant from Sweden to face allegations of rape and sexual molestation was invalid as the public prosecutor who issued it did not constitute a “judicial authority”. He denies the accusations, insisting they are “politically motivated”. His case was partially trumped by the French translation of the words judicial authority, which judges at the Supreme Court said carried a far wider meaning that simply a judge or court. By a majority of five to two they decided the practice by many European countries to have public prosecutors issue such warrants countered the interpretation in United Kingdom and his appeal failed. Nevertheless they granted his lawyers 14 days to apply to have the case re-opened after they insisted that they had not been given an opportunity to argue on the very legal points on which the judges had based their decision.


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Andy Coulson has been arrested on suspicion of perjury. Picture: Getty

Andy Coulson has been arrested on suspicion of perjury. Picture: Getty

FORMER Downing Street communications chief Andy Coulson has been arrested on suspicion of committing perjury during the Tommy Sheridan trial at the High Court in Glasgow, the Crown Office said today.

 

The 44-year-old was detained in London this morning by officers from Strathclyde Police.

 

Coulson gave evidence in Mr Sheridan’s perjury trial at the High Court in Glasgow in December 2010.

 

He was also arrested last year in relation to Scotland Yard’s long-running investigation into phone-hacking at the News of the World.

 

He was held in July on suspicion of conspiring to intercept communications and corruption and had his bail extended earlier this month.

 

A Strathclyde Police spokesman said: “Officers from Strathclyde Police Operation Rubicon detained a 44-year-old man in London this morning under section 14 of the Criminal Procedures Scotland Act on suspicion of committing perjury before the High Court in Glasgow.

 

“It would be inappropriate to comment any further at this time.”

 

It is understood Coulson is on his way to Glasgow.

 

Operation Rubicon detectives have been looking at whether certain witnesses lied to the court during Sheridan’s trial as part of a “full” investigation into phone hacking in Scotland.

 

Mr Coulson, then employed by Downing Street as director of communications, told the trial in December 2010 he had no knowledge of illegal activities by reporters while he was editor of the News of the World.

 

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


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PR man: Andy Coulson was held today by Strathclyde Police,David Cameron’s former No 10 spin doctor Andy Coulson was arrested today on suspicion of committing perjury.

Mr Coulson, 44, was detained at his home in Dulwich at 6.30am by seven officers from Strathclyde police and taken to Glasgow where he will be questioned.

The case centres on claims that he misled a court about his knowledge of phone-hacking during a criminal trial in Glasgow. The former News of the World editor, hired by the Prime Minister as his director of communications, told a court in 2010 that he had no knowledge of illegal voicemail interception when in charge of the tabloid.

During the perjury trial of former Scottish MP Tommy Sheridan, Mr Coulson said: “I don’t accept there was a culture of phone hacking at the News of the World.” He also denied knowing that the

 newspaper paid corrupt police officers for tip-offs. Mr Cameron has faced questions over his decision to bring Mr Coulson into the heart of government. Mr Coulson has already been arrested by the Met on suspicion of phone-hacking and bribing public officials.

The perjury charge, which carries a maximum prison sentence of seven years, is potentially the most serious facing the former Conservative Party spokesman.

One Downing Street source said the arrest came as a “complete surprise”.

Mr Coulson was a major witness in a trial involving Sheridan who was accused of lying in court during a libel victory against the NoW.

Coulson was editor when it published a story that labelled Sheridan an adulterer who visited swingers’ clubs. He was called as a witness and told the court that he had no knowledge of illegal activities by reporters.

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

Strathclyde police announced its probe into Mr Coulson last July but it was thought to be taking a back seat as five major Scotland Yard inquiries into the Murdoch media empire rumbled on.

However, the Standard can disclose that officers from Scotland recently visited London to interview several former NoW staff about their old boss.

Under Scottish law a suspect is detained on suspicion of an offence unlike in England and Wales where a suspect is arrested. Mr Coulson has not been charged.


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The 63-year-old singer, who had hits including Hot Stuff, Love to Love You, Baby and I Feel Love, died in Florida on Thursday morning. She had largely kept her battle with lung cancer out of the public eye. But the website TMZ reported that the singer had told friends she believed her illness was the result of inhaling toxic dust from the collapsed Twin Towers. On Thursday night tributes were paid to the singer, considered by many to be the voice of the 1970s. A statement released on behalf of her family — husband Bruce Sudano, their daughters Brooklyn and Amanda, her daughter, Mimi from a previous marriage and four grandchildren — read: “Early this morning, surrounded by family, we lost Donna Summer Sudano, a woman of many gifts, the greatest being her faith. "While we grieve her passing, we are at peace celebrating her extraordinary life and her continued legacy.


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49 BODIES FOUND IN A HIGHWAY NORTHERN MEXICO
Grafitti saying 'Z 100%', referring to the Los Zetas cartel, near to where 49 mutilated bodies were found in Northern Mexico. Photograph: Miguel Sierra/EPA

Investigators are questioning Mexico's former deputy defence minister and a top army general for suspected links to organised crime, in the highest level scandal to hit the military in the five-year-old drug war.

Mexican soldiers on Tuesday detained retired general Tomás Angeles Dauahare and general Roberto Dawe González and turned them over to the country's organised crime unit, military and government officials said.

Angeles Dauahare was number 2 in the armed forces under President Felipe Calderón and helped lead the government's crackdown on drug cartels after soldiers were deployed to the streets in late 2006. He retired in 2008.

Dawe González, still an active duty general, led an elite army unit in the western state of Colima and local media said he previously held posts in the violent states of Sinaloa and Chihuahua.

An official at the attorney general's office said they would be held for several days to give testimony and then could be called in front of a judge.

"The generals are answering questions because they are allegedly tied to organised crime," the official said.

Angeles Dauahare said through a lawyer that his detention was unjustified, daily Reforma newspaper reported.

If the generals were convicted of drug trafficking, it would mark the most serious case of military corruption during Calderón's administration.

"Traditionally the armed forces had a side role in the anti-drug fight, eradicating drug crops or stopping drug shipments," said Alejandro Hope, a security analyst who formerly worked in the government intelligence agency.

"After 2006, they were more directly involved in public security, putting them at a higher risk of contact [with drug gangs]," he said.

About 55,000 people have been killed in drug violence over the past five years as rival cartels fight each other and government forces.

Worsening drug-related attacks in major cities are eroding support for Calderón's conservative National Action Party, or PAN, ahead of a 1 July presidential vote.

Over the weekend, police found 49 headless bodies on a highway in northern Mexico, the latest in a recent series of brutal massacres where mutilated corpses have been hung from bridges or shoved in iceboxes.

Opinion polls show Calderón's party is trailing by double digits behind opposition candidate Enrique Peña Nieto from the Institutional Revolutionary Party, or PRI, which says the government's drug strategy is failing.

Traditionally, the military has been seen as less susceptible to cartel bribes and intimidation than badly paid local and state police forces, who are often easily swayed by drug gang pay offs.

But there have been cases of military corruption in the past. Angeles Dauahare himself oversaw the landmark trial of two generals convicted of working with drug gangs in 2002.

Those two generals were convicted of links to the Juárez cartel once headed by the late Amado Carrillo Fuentes, who was known as the Lord of the Skies for flying plane load of cocaine into the United States.

Since then, the Sinaloa cartel - headed by Mexico's most wanted man Joaquín "Shorty" Guzmán - has expanded its power and is locked in a bloody battle over smuggling routes with the Zetas gang, founded by deserters from the Mexican army.


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The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses. When Jamie Dimon, JPMorgan’s chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters. But that process has been compressed into four trading days as hedge funds and other investors take advantage of JPMorgan’s distress, fueling faster deterioration in the underlying credit market positions held by the bank. A spokeswoman for the bank declined to comment, although Mr. Dimon has said the total paper trading losses will be volatile depending on day-to-day market fluctuations. The Federal Reserve is examining the scope of the growing losses and the original bet, along with whether JPMorgan’s chief investment office took risks that were inappropriate for a federally insured depository institution, according to several people with knowledge of the examination. They spoke on the condition of anonymity because the investigation is still under way. The overall health of the bank remains strong, even with the additional losses, and JPMorgan has been able to increase its stock dividend faster than its rivals because of stronger earnings and a more solid capital buffer. Still, the huge trading losses rocked Wall Street and reignited the debate over how tightly giant financial institutions should be regulated. Bank analysts say that while the bank’s stability is not threatened, if the losses continue to mount, the outlook for the bank’s dividend will grow uncertain. The bank’s leadership has discussed the impact of the losses on future earnings, although a dividend cut remains highly unlikely for now. In March, the company raised the quarterly dividend by 5 cents, to 30 cents, which will cost the bank about $190 million more this quarter. A spokeswoman for the bank said a dividend cut has not been discussed internally. At the bank’s annual meeting in Tampa, Fla., on Tuesday, Mr. Dimon did not definitively rule out cutting the dividend, although he said that he “hoped” it would not be cut. John Lackey, a shareholder from Richmond, Va., who attended the meeting precisely to ask about the dividend, was not reassured. “That wasn’t a very clear answer,” he said of Mr. Dimon’s response. “I expect that shareholders are going to suffer because of this.” Analysts expect the bank to earn $4 billion in the second quarter, factoring in the original estimated loss of $2 billion. Even if the additional trading losses were to double, the bank could still earn a profit of $2 billion. And many analysts and investors remain optimistic about the bank’s long-term prospects. Glenn Schorr, a widely followed analyst with Nomura, reiterated on Wednesday his buy rating on JPMorgan shares, which are down more than 10 percent since the trading loss became public last week. What’s more, the chief investment office earned more than $5 billion in the last three years, which leaves it ahead over all, even given the added red ink. But the underlying problem is that while these sharp swings are expected at a big hedge fund, they should not be occurring at a bank whose deposits are government-backed and which has access to ultralow cost capital from the Federal Reserve, experts said. “JPMorgan Chase has a big hedge fund inside a commercial bank,” said Mark Williams, a professor of finance at Boston University, who also served as a Federal Reserve bank examiner. “They should be taking in deposits and making loans, not taking large speculative bets.” Not long after Mr. Dimon’s announcement of a dividend increase in March, the notorious bet by JPMorgan’s chief investment office began to fall apart. Traders at the unit’s London desk and elsewhere are now frantically trying to defuse the huge bet that was built up over years, but started generating erratic returns in late March. After a brief pause, the losses began to mount again in late April, prompting Mr. Dimon’s announcement on May 10. Beginning on Friday, the same trends that had been causing the losses for six weeks accelerated, since traders on the opposite side of the bet knew the bank was under pressure to unwind the losing trade and could not double down in any way. Another issue is that the trader who executed the complex wager, Bruno Iksil, is no longer on the trading desk. Nicknamed the London Whale, Mr. Iksil had a firm grasp on the trade — knowledge that is hard to replace, even though his anticipated departure is seen as sign of the bank’s taking responsibility for the debacle. “They were caught short,” said one experienced credit trader who spoke on the condition of anonymity because the situation is still fluid. The market player, who does not stand to gain from JPMorgan’s losses and is not involved in the trade, added, “this is a very hard trade to get out of because it’s so big.” He estimated that the initial loss of just over $2 billion was caused by a move of a quarter percentage point, or 25 basis points, on a portfolio with a notional value of $150 billion to $200 billion — in other words, the total value of the contracts traded, not JPMorgan’s exposure. In the four trading days since Mr. Dimon’s disclosure, the market has moved at least 15 to 20 basis points more against JPMorgan, he said. The overall losses are not directly proportional to the move in basis points because of the complexity of the trade. Many of the positions are highly illiquid, making them difficult to value for regulators and the bank itself. In its simplest form, traders said, the complex position assembled by the bank included a bullish bet on an index of investment-grade corporate debt, later paired with a bearish bet on high-yield securities, achieved by selling insurance contracts known as credit-default swaps. A big move in the interest rate spread between the investment grade securities and risk-free government bonds in recent months hurt the first part of the bet, and was not offset by equally large moves in the price of the insurance on the high yield bonds. As the credit yield curve steepened, the losses piled up on the corporate grade index, overwhelming gains elsewhere on the trades. Making matters worse, there was a mismatch between the expiration of different instruments within the trade, increasing losses. The additional losses represent a worsening of what is already the most embarrassing misstep for JPMorgan since Mr. Dimon became chief executive in 2005. No one has blamed Mr. Dimon for the trade, which was under the oversight of the head of the chief investment office, Ina Drew, but he has repeatedly apologized, calling it “stupid” and “sloppy.” Ms. Drew resigned Monday and more departures are anticipated.


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The former editor of the News of the World and the Sun is to be charged with five others, including her husband Charlie Brooks.

Alison Levitt QC, principal legal adviser to the Director of Public Prosecutions, announced the decision at 10am, days after Mrs Brooks appeared at the Leveson inquiry into press ethics.

Mr and Mrs Brooks said: "We deplore this weak and unjust decision. After the further unprecedented posturing of the CPS we will respond later today after our return from the police station."

Rebekah Brooks arriving at the Leveson Inquiry


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Jeremy Hunt, came under renewed pressure when the former News International chief executive Rebekah Brooks disclosed an email appearing to show he had sought the company's advice over how Downing Street should respond to the mounting phone-hacking scandal. The email, which also suggests Hunt sought to avoid a public inquiry into phone hacking, emerged on another day of extraordinary disclosures about the intimacy between Rupert Murdoch's company and government ministers. The email from News Corporation lobbyist Frédéric Michel written in June 2011 told Brooks that Hunt was poised to make an "extremely helpful" statement about the company's proposed acquisition of BSkyB, saying the takeover would be approved regardless of phone-hacking allegations. Michel also warned her, days before the Guardian revealed that murdered teenager Milly Dowler's voicemail had been targeted by the News of the World, that "JH [Jeremy Hunt] is now starting to looking into phone-hacking/practices more thoroughly" and that he "has asked me to advise him privately in the coming weeks and guide his and No 10's positioning". During five hours of testimony, Brooks revealed she dined with George Osborne on 13 December 2010, when she discussed Ofcom's initial objections to News Corp's £8bn bid. The objections had been sent in a confidential "issues letter" by the media regulator to her company three days before. Following a short discussion, the then News International boss reported to James Murdoch the next day that Osborne had expressed "total bafflement". In a steely and at times tetchy performance, Brooks said her lobbying of the chancellor had been "entirely appropriate" because she was "reflecting the opposite view to the view he had heard by that stage from pretty much every member of the anti-Sky bid alliance". But Robert Jay QC, counsel to the inquiry, said that the email demonstrated that it was "obvious that he was supportive of your bid, wasn't he", a suggestion Brooks rejected. The disclosures about her conversations with the chancellor will increase the likelihood that he is called to appear before the inquiry. He is the only one of eight ministers who have submitted statements to Leveson not to have been asked to appear. Though less damaging than some in Downing Street had feared, Brooks' testimony also proved embarrassing for David Cameron. She revealed the prime minister signed texts "DC" or sometimes "LOL" – until she explained that the phrase meant "laugh out loud", not "lots of love". She said she typically texted Cameron once a week, and twice a week during the 2010 election campaign, dismissing as preposterous reports that he sometimes texted her up to 12 times per day. Brooks said any email correspondence between her and politicians was now held by News International. She had only copies of emails and texts that were on her BlackBerry during a six-week period in June and July 2011, but a single message from Cameron had been "compressed" and could not now be read. Brooks confirmed that she had socialised with Cameron at least twice within four days in Oxfordshire during Christmas 2010, the culmination of a year in which they had already met at least five times. The first contact of the festive season was at a dinner at her house on 23 December, when there was a conversation about the BSkyB bid. The second was a previously undisclosed "mulled wine, mince pie" party organised by her sister-in-law on Boxing Day 2010, an event at which she was unsure if she had spoken to Cameron or his wife, Samantha, although "my sister-in-law tells me they were definitely there". Although Brooks has been arrested in connection with phone hacking and bribery investigations, and on suspicion of perverting the course of justice, the inquiry also heard that she had discussed the growing hacking allegations with Cameron at some point during 2010. She said the prime minister – who at that point was still employing former News of the World editor Andy Coulson – had asked her for an update. "I think it had been on the news that day, and I think I explained the story behind the news. No secret information, no privileged information, just a general update," Brooks said. The disclosure will add to the pressure on Cameron to explain why he failed to challenge Coulson about the hacking allegations against him at any time after the Guardian broke the story in July 2009. However, the most serious evidence to emerge regarded Hunt, whose fate has been hanging in the balance since Rupert Murdoch provided 163 pages of News Corp emails to the Leveson inquiry, which suggested that Michel had obtained a large amount of information about the progress of ministerial approval of the BSkyB bid. Finding a fresh email from Michel that had eluded Murdoch's legal team last month, Brooks showed that she had been told that Hunt would essentially approve the long-delayed takeover because he believed "phone hacking has nothing to do with the media plurality issues" that were increasingly concerning rivals. Michel told Brooks that the sought-after approval would happen later in the last week of June 2011.


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Rebekah Brooks has denied that The Sun hacked the medical records of Gordon Brown's four-year-old son - and refused to disclose the source of the information to the Leveson Inquiry She also insisted that the paper had permission from the former Prime Minister and his wife before publishing an article about the child's medical condition. Brooks said that she and Gordon's Brown wife Sarah "were good In a written response to the Inquiry's questions submitted in October last year Brooks set out a detailed description of safeguards put in place to check stories. The former tabloid editor and News International chief executive also denied commissioning any computer hacking or feeling any "negative pressure" from proprietor Rupert Murdoch. Much of the 12-page statement consists of explanations of the processes used to check accuracy and sources, train staff and decide whether to run a particular story. Despite those efforts, there were "failures from time to time" - significantly so at the News of the World, Mrs Brooks conceded. "I was horrified when I learned of them and I was and am deeply sorry about the further anguish that was caused to Milly Dowler's parents in particular," she wrote. Corporate governance was taken "seriously" within the newspaper group though, she added. Mrs Brooks also told the inquiry: :: She was not aware of any use of computer hacking: "I have been specifically asked by the Inquiry whether I or the newspapers where I worked ever used or commissioned anyone who used 'computer hacking' in order to source stories or for any other reason. I did not and I was not aware of anyone at either the News of the World or The Sun who did." :: There was a crackdown on the use of private investigators following highly critical reports by the Information Commissioner's Office and the Commons media and sport select committee. "I believe their use is now virtually non-existent," she wrote - noting there were exceptions such as using them to track down convicted paedophiles who had broken their bail conditions. :: The use of cash payments had been "considerably tightened up". :: It would be "highly unusual and not practical" for an editor to check the accuracy and sources of stories going into their paper other than the biggest or most controversial. :: There were "numerous examples" of times when she resisted publishing a story because the invasion of privacy outweighed any public interest or because it was more important to alert the police to criminal activities than to secure an exclusive. "It is quite wrong to believe that the press simply publishes what it can get away with, irrespective of the ethical requirements," she insisted. :: The industry felt privacy laws had "slowly crept in through the back door", stymieing legitimate journalism but failing to regulate inaccurate internet gossip. :: In her decade as a national newspaper editor she "never experienced or felt any negative pressure either financial or commercial from the proprietor. In fact the opposite is true. There was always constant advice, experienced guidance and support available." There was no financial motive to print exclusive stories. "Professional pride was the biggest incentive."


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David Cameron sent commiserations to Rebekah Brooks after she resigned as News International chief executive over the phone hacking scandal, the Leveson Inquiry has heard. Ms Brooks said the indirect messages from the Prime Minister were "along the lines" of "keep your head up" and had also expressed regret that he could not be more loyal in public. She also received sympathetic messages from other senior figures in 10 and 11 Downing Street, the Home Office, the Foreign Office and some Labour politicians, including Tony Blair. The glimpse of Ms Brooks's network of high-powered friends and contacts came as she took to the witness box, despite being under investigation by police. Ms Brooks said she only had access to around six weeks of texts and emails from her time as NI chief executive, from the beginning of June to July 17 last year. Only one of those emails was relevant to the inquiry, according to her evidence. One of the text messages had been from Mr Cameron, but the content was compressed and unreadable, she said. Robert Jay QC, counsel for the inquiry, asked Ms Brooks about reports that she had received sympathetic messages after her resignation last July. "I had some indirect messages from some politicians but nothing direct," she replied. "A variety - some Tories, a couple of Labour politicians. Very few Labour politicians. I received some indirect messages from Number 10, Number 11, the Home Office, the Foreign Office..." She said Tony Blair had been among them but Gordon Brown had not. "He was probably getting the bunting out," she added, provoking laughter in the courtroom. Questioned on whether reports were correct that Mr Cameron's message had urged her to "keep your head up", Ms Brooks responded: "Along those lines." Pressed on whether the premier had also conveyed regret that political circumstances meant he could not be more "loyal", Ms Brooks replied: "Similar, but very indirect."


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Former Sun and News of the World editor Rebekah Brooks is expected to lift the lid on her close relationship with the Prime Minister in evidence to the Leveson Inquiry. David Cameron is said to have texted Mrs Brooks, telling her to "keep her head up" after she resigned from News International last July. It has also been claimed that the 43-year-old former editor sent Mr Cameron more than 12 text messages a day. After her editorships Mrs Brooks went on to become chief executive of Rupert Murdoch's UK newspapers division News International in September 2009 until she resigned in the wake of the hacking scandal last July. She and racehorse trainer husband Charlie are key members of the influential Chipping Norton set, which also includes Mr Cameron and his wife Samantha, Top Gear presenter Jeremy Clarkson, and Mr Murdoch's daughter Elisabeth and her PR guru husband Matthew Freud. The inquiry has already heard that Mrs Brooks regularly met Mr Cameron and other top politicians along with Rupert and James Murdoch. She hosted a Christmas dinner on December 23 2010, just two days after Business Secretary Vince Cable was stripped of his responsibility for media takeovers for saying he had "declared war" on the Murdochs' News Corporation empire. Mrs Brooks's wedding on June 13 2009 was attended by Mr Cameron and former prime minister Gordon Brown, and in March Mr Cameron was forced to admit that he rode a retired police horse loaned to Mrs Brooks by Scotland Yard from 2008 to 2010. An updated biography of Cameron: Practically A Conservative, claims he told Mrs Brooks she would get through her difficulties just days before she stood down over the phone hacking scandal. There has speculation that the Leveson Inquiry could release emails and text messages sent between Mr Cameron and the former News International chief executive. According to Daily Telegraph columnist Peter Oborne, Mrs Brooks has kept all the texts she received from the Prime Minister. Mrs Brooks has twice been arrested by Scotland Yard detectives investigating allegations of phone hacking, corrupt payments to public officials, and an attempt to pervert the course of justice. She was bailed and has not been charged. She will not be questioned about anything that could prejudice the continuing police investigation into phone hacking or any potential future trials. Mr Cameron set up the Leveson Inquiry last July in response to revelations that the now-defunct News of the World hacked murdered schoolgirl Milly Dowler's phone after she disappeared in 2002. The first part of the inquiry, sitting at the Royal Courts of Justice in London, is looking at the culture, practices and ethics of the Press in general and is due to produce a report by October.

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