IS Has Iraqi Towns In Lockdown As Battles Rage

Kurdish forces are struggling to defend themselves against Islamic State (IS) militants in northeast Iraq and are appealing for more international help.

There has been fighting around towns including Jalula and Sa'dya, which have been controlled by the well-armed Sunni extremists for several weeks.

The IS insurgents have seized large swathes of the country since a June offensive but have been hit by US airstrikes in some areas including around Mosul Dam.

However, Sky's Chief Correspondent Stuart Ramsay, reporting from outside Jalula, north of Baghdad, said the Kurdish peshmerga fighters want more weaponry from the outside world and are "getting little or no air support".

Thousands of peshmerga and counter-terrorism soldiers have been deployed, including many around the town.

Sky's Stuart Ramsay outside the town of Jalula

He said the Kurds have some heavy weapons but the equipment is old, while the jihadists "have modern equipment and lots of money".

Ramsay said the two sides are fighting to control territory not the towns themselves as IS have them "under total lockdown".

The Kurds are trying to cut their supply lines and one fighter told Sky News: "We need weapons to make the battle equal."

Ramsay said: "Peshmerga front-line positions are regularly hit from far away. There are scorch marks and burning patches everywhere."

Roadside bombs laid by the extremists are also "causing more casualties than ever before," he added.

Meanwhile, eight people have been killed after a suicide bomber blew up a vehicle packed with explosives at the interior ministry's intelligence headquarters in Baghdad.

PM designate Haider al Abadi is trying to form a more inclusive government

It comes a day after a sectarian attack at a mosque killed at least 68 Sunni Muslims, plunging efforts to form a united front against the jihadists into crisis.

Officials say a suicide bomber blew himself up in the Imam Wais mosque north of Baghdad, with Shia militiamen picking off fleeing worshippers with machine guns.

Diyala has seen heavy fighting between Iraqi troops and IS. File pic

Attacks on mosques are acutely sensitive and have in the past unleashed a deadly series of revenge killings and counter attacks in Iraq.

The attack, in Diyala province, is seen as a blow to government efforts to secure backing from Sunni groups in its battle against the extremists.

The US says the killing of James Foley was a "terrorist attack" on America

Prime Minister designate Haider al Abadi, a moderate Shia, is attempting to form a more inclusive government following the resignation of outgoing PM Nouri al Maliki.

But two influential Sunni politicians - Parliamentary Speaker Salim al Jabouri and Deputy Prime Minister Saleh al Mutlak - have now pulled out of talks with the main Shia political alliance after the massacre.

The US, which is carrying out airstrikes against militants, has ramped up its rhetoric over the beheading of journalist James Foley.

In Washington, Deputy National Security Advisor Ben Rhodes said the murder "represents a terrorist attack against our country".

He said the US would not be restricted by the Iraq-Syria border when it considers further action against IS militants.

Having poured in from Syria across a desert border that it does not recognise, the Islamist movement has declared its own caliphate.

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Europe Puts Sat-Nav Satellites In Wrong Orbit

Experts are investigating whether plans for a European navigation system to rival the US-developed GPS are in trouble after two satellites were launched into the wrong orbits.

The European Space Agency (ESA) said the satellites ended up in the wrong position above the Earth after being carried into space on a Soyuz rocket on Friday.

The ESA did not clarify whether the problem could be fixed.

Both satellites have ended up on the wrong path. Picture: ESA

However, the Nasa Spaceflight news website said: "It is unlikely the satellites can be eased into their correct orbit."

The satellites were launched from Kourou, in French Guiana, by the agency and Arianespace, a French company.

The European Union's 30-satellite Galileo navigation network is due to be up and running before 2020. It has a budget of £7bn and so far, six satellites have been launched.

Galileo would rival GPS, or Global Positioning System, which was created by the US Department of Defense and has been operational for nearly 20 years.

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Mass Brawl At Bolivia Campaign Launch

A Bolivian presidential campaign launch ended in violence when rival football fans began fighting and hurling chairs at each other.

Video showed dozens of plastic chairs in the air as insults turned to blows at the Democratic Unity party event in Gilberto Menacho Stadium, Santa Cruz.

Fans from rival football clubs Oriente Petrolero and Bloomingeven set off flares as people fled in panic.

Police arrived and shut down the event.

People fled in panic as fans clashed

There was no information on injuries or arrests.

Democratic Unity candidate Samuel Medina blamed rival party Movement Toward Socialism (MAS), headed by President Evo Morales, for inciting the violence.

Bolivians head to the polls on October 12 with Morales the clear front-runner.

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Boat With 170 Migrants On Board Sinks Off Libya

A wooden boat with around 170 African migrants on board trying to reach Europe has sunk off Libya, a Libyan navy spokesman said.

"The coast guards have rescued 17 of the illegal migrants," said navy spokesman Ayoub Qassem.

A search for the rest of the passengers is continuing, he added.

The wooden vessel sank in rough seas on Friday near Qarabouli, east of Tripoli.

A coast guard official told Reuters they had been alerted to the sinking boat by local fishermen at dawn on Saturday.

The coast guard had no equipment to carry out the rescue so had to borrow fishing boats to try and save those on board the sinking vessel.

The official said the people who had been rescued had been released as there was nowhere to detain them.

The number of migrants leaving North Africa in rickety boats has been on the rise for years.

In 2014 so far, more than 100,000 migrants have reached Italian shores, said the Rome government this week.

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Draghi: ECB Ready To Spur On Euro Economy

The boss of the European Central Bank (ECB) has revealed it is ready to do more to boost a shaky recovery in Europe.

But Mario Draghi warned EU member governments they must still join in efforts to reduce unemployment, which remains stubbornly high.

Mr Draghi said: "I am confident that the package of measures we announced in June will indeed provide the intended boost to demand, and we stand ready to adjust our policy stance further."

So far the ECB has cut interest rates, offered cheap loans to banks and is weighing up asset purchases to help stimulate the 18-member eurozone.

The ECB has already pumped unprecedented amounts of liquidity into the banking system back in 2011 and 2012, but instead of lending the money on to businesses banks tended to park the cash with the ECB instead.

In June, the ECB created a negative interest rate to encourage banks to lend more.

Mr Draghi also said certain longstanding practices in some countries are helping to keep unemployment high.

He said freer wage adjustments and workforce levels would encourage companies to hire.

Mr Draghi made the comments as part of his speech at the US Federal Reserve conference in Jackson Hole, Wyoming.

Meanwhile, US shares eased on Friday after the Jackson Hole speech by Fed boss Janet Yellen left investors unsure on the possibility of a rate rise in coming months.

She said the financial crash complicated the Fed's ability to assess the US job market and made it harder to determine when to adjust interest rates.

Ms Yellen's remarks failed to offer strong signs that indicate she is moving away from the view of support through ultra-low interest rates.

The timing of a Fed rate increase remains unclear, though many economists foresee an increase by mid-2015.

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US 'Ready To Take Action Against IS In Syria'

The US has said it will not be restricted by the Iraq-Syria border as it considers further action against Islamic State militants.

White House deputy national security adviser Ben Rhodes the US stood ready to take action to protect American citizens as the group was more dangerous now than it was six months ago.

The US has already carried out airstrikes on the group - formerly known as ISIS or ISIL - in Iraq as it has sought to support government forces and Kurdish Peshmerga in their attempts to push back the jihadists.

However, it has so far steered clear of Syria, except for a brief special forces raid which attempted to rescue journalist James Foley and other American hostages.

Red shows areas controlled by IS, while yellow is areas of fighting

Mr Foley was beheaded by a member of the group - believed to be British - in a video released earlier this week. The black-clad militant said the journalist was killed in retaliation for US airstrikes.

"When you see somebody killed in such a horrific way, that represents a terrorist attack- that represents a terrorist attack against our country and against an American citizen," Mr Rhodes told reporters at the White House

He added that the US had done everything it could to rescue American hostages but would keep trying to get back those still held by the group.

The announcement that the US would consider acting in Syria came after the former head of the British Army said the West should consider negotiating with Syrian president Bashar al Assad to tackle IS.

Lord Dannatt told Sky News: "You have to at least consider the otherwise unpalatable thought that maybe we've got to have some kind of dialogue, whether it's under the counter or over the counter, with President Assad of Syria.

Journalist James Foley was beheaded on video by an IS militant

"The old dictum that my enemy's enemy is my friend just might have some credence in this less than satisfactory and pretty extraordinary set of times that we are in."

However, UK Foreign Secretary Philip Hammond ruled out working with Mr Assad - who is accused of carrying out war crimes, including chemical attacks, during his country's three-year civil war.

He said Britain would help Kurdish and Iraqi forces with weapons and training once there was a credible government in place in Baghdad.

However, efforts to form a new government around Prime Minister-designate Haider al Abadi were dealt a major blow when Sunni politicians pulled out of talks following an attack on a mosque that killed at least 64 people and injured 60 others.

The mass killing at Friday prayers was initially blamed on Shia militia allied with the government but there have also been suggestions that IS fighters, who have been trying to recruit Sunni tribes in the area, could have staged the attack.

Kurdish Peshmerga are leading the fightback against IS in Iraq

Elsewhere, Kurdish forces have launched a major assault to try to retake the northeast Iraqi towns of Jalula and Sadiyah.

Sky's Alex Crawford, reporting from the outskirts of Jalula, said the operation was being carried out by the Kurdish military's elite counter-terrorism unit, backed up by peshmerga forces.

She said the towns, near the Iranian border and semi-autonomous Kurdish region, had been under IS control for more than two months.

"What is significant about this assault is that they (the Kurds) are doing this pretty much entirely on their own," she said.

"They've had very little air support. There is no evidence of any outside weaponry, military hardware to back them up."

Although US Defense Secretary Chuck Hagel has warned that IS is the most dangerous threat faced by America for years, the FBI on Friday said there were no specific or credible threats that the group was planning an attack on US soil.

An intelligence bulletin, issued to state and local law enforcement, said officials were concerned though that IS supporters could attack overseas targets with little warning.

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Airstrikes Hit Gaza After Israeli Child Killed

Israel pounded Gaza with 30 airstrikes after vowing "Hamas will pay a heavy price" for the death of a four-year-old boy from rocket fire.

Medical officials reported at least eight Palestinian deaths as the conflict entered its 47th day.

A Palestinian runs from an Israeli strike

The bombardment came just hours after an attack on the southern Israeli village of Sdot Negev, in which the four-year-old died.

He suffered fatal wounds after the barrage of mortars landed in a collective farm, known as a kibbutz. Israeli military said 90 rockets were fired into the country overnight.

A mobile intensive care ambulance was sent to the scene and firefighters hosed down vehicles that were set on fire in a car park.

The damage inflicted overnight in Gaza

Prime Minister Benjamin Netanyahu said Israel's military would raise the tempo of operations against Hamas in the Gaza Strip "until the goals of Operation Protective Edge are achieved".

It was the first Israeli death since a new round of fighting erupted on Tuesday between Israel and Gaza's Hamas rulers following the collapse of ceasefire talks in Cairo earlier this week.

The boy is the fourth civilian in Israel to be killed in an attack from the coastal territory since the outbreak of conflict on July 8.

Israel launched 30 airstrikes overnight

Earlier in the day three people were injured by shrapnel, after rocket fired from Gaza hit a synagogue in the city of Ashdod.

Hamas also killed 18 people suspected of being informers for Israel on Friday.

The group said 11 were killed by firing squad at the Gaza City police headquarters following sentencing by courts.

Palestinians watch Hamas militants shoot dead suspected informants

Hamas media then reported that seven more alleged informants had been targeted by masked gunmen near a mosque.

Two of those killed were women, according to the Palestinian Centre for Human Rights, which called for an immediate halt to what it said were "extra-judicial executions".

Israel's intelligence services rely, in part, on informers to pinpoint the whereabouts of Hamas leaders.

A Palestinian boy with a toy gun at an anti-offensive protest in West Bank

So far more than 2,000 Palestinians have been killed in the conflict, which began as Israel sought to destroy a network of tunnels used by Hamas and other militants.

A total of 64 Israeli soldiers have also been killed in the conflict.

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Ukraine: Can Merkel Broker A Breakthrough?

German Chancellor Angela Merkel has two key objectives for her visit to Ukraine.

First the meeting with Ukrainian leader Petro Poroshenko must send a united message to the Russians.

Her visit comes just days before Mr Poroshenko will hold crucial talks with Russian leader Vladimir Putin.

Mr Putin will seize on any signs of disunity between the EU and Ukraine.

Ukraine has been pushed and pulled between East and West but closer trading ties with the EU have been one of the big ambitions of Mr Poroshenko's presidency.

Second - the German Chancellor has a much more difficult objective: to work towards a ceasefire between the government in Kiev and separatist rebels who've declared a people's republic in eastern Ukraine.

Mr Poroshenko has said he will "talk peace" with Mr Putin but he wants Russia to stop supporting the rebels.

In June, the German Chancellor met the Russian and Ukraninan presidents

There's been talk of a deal Ms Merkel has been trying to hatch which had to be put on the back burner following the downing of Malaysia Airlines flight MH17.

Rebels are accused of firing at the plane believing it was a Ukrainian military aircraft.

If anyone can broker a breakthrough it is Mrs Merkel.

She is one of the few Western - and indeed world - leaders who Mr Putin appears to have time for and both know a further decline in Russian-EU relations will hit each other's economies even more.

Some of Germany's biggest companies have big operations in Russia, which is still the EU's third biggest trading partner.

Under Ms Merkel, the Russo-German axis has strengthened and until the plane attack the Germans had been against punitive sanctions and their impact commercially and diplomatically.

There has been heavy fighting in eastern Ukraine

Ms Merkel has already spoken by phone to Mr Putin in the wake of his decision to send a convoy of humanitarian aid into eastern Ukraine without agreement from Kiev.

So in Kiev the conversation, whilst tricky, focuses on a way to stop the fighting.

She is priming Mr Poroshenko ahead of his talks with Mr Putin in Minsk - and potentially paving the way for a deal.

It is complex but there's speculation any kind of ceasefire would likely focus on giving autonomy to the east of Ukraine and possibly allow for recognition of Russian control of Crimea.

Other key factors include Ukraine's desire to join Nato and its economic ties with the West.

With Europe and particularly Germany wanting Russia's gas, no one needs reminding winter is on its way.

The people of Luhansk and Donetsk in eastern Ukraine are suffering real humanitarian hardship - with no power and water for days.

As temperatures start to fall Ms Merkel's diplomatic efforts could be a real opportunity to thaw frozen relations with the Russians.

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Russia Aid Trucks 'Took Ukraine Military Goods'

A Ukrainian army spokesman has accused Russia of using aid trucks to take production equipment from two military plants.

A convoy of about 200 vehicles entered the country on Friday without the permission of the Ukraine government - and left on Saturday after dropping its cargo.

However, military spokesman Andriy Lysenko said the trucks had taken equipment from a factory in Luhansk that makes firearm magazines and a Topaz plant that produces radars.

The convoy's departure comes as German Chancellor Angela Merkel arrived in Kiev for talks with Ukraine's pro-Western leaders on the conflict, which has claimed more than 2,200 lives.

Russian aid trucks pictured upon their return to the border crossing

Ms Merkel called for a bilateral ceasefire ahead of talks between President Vladimir Putin and Ukrainian counterpart Petro Poroshenko in three days' time.

"There must be two sides to be successful. You cannot achieve peace on your own. I hope the talks with Russia will lead to success," said Ms Merkel.

"The plans are on the table - now actions must follow."

Ms Merkel, who did not rule out more sanctions against Russia, is due to hold discussions with Mr Poroshenko.

The Ukrainian President has maintained that pro-Kremlin fighters must leave before the conflict can end.

"The Ukrainian side and our European partners will do everything possible to bring about peace - but not at the price of sovereignty, territorial integrity and the independence of Ukraine," he said.

Ukraine continues to pound rebel strongholds such as Luhansk and Donetsk, where water has been cut off and supplies are dwindling.

Ms Merkel will hold talks with Mr Poroshenko

At least two civilians were killed by shelling on Saturday.

Sky's Foreign Affairs Correspondent Lisa Holland said: "If anyone can broker a breakthrough it is Ms Merkel.

"She is one of the few Western - and indeed world - leaders who Mr Putin appears to have time for and both know a further decline in Russian-EU relations will hit each other's economies even more."

Russia rolled in its convoy on Friday, saying any delay in providing humanitarian aid was "unacceptable".

It had been agreed the lorries - which had waited on the Russian side of the border for a week - would only be allowed into eastern Ukraine if they were escorted by the International Red Cross.

However, the charity pulled out after not receiving enough security guarantees as fighting continues to rage.

Kiev's foreign ministry informally allowed the convoy to pass to avoid "provocations".

Russia previously let journalists look inside a handful of the lorries, which it said were carrying 1,800 tonnes of aid including food, water, medicine and electrical generators.

A Ukrainian rebel controls an area after a shelling in Donetsk

This was questioned by Nato's top military commander, Philip Breedlove, who claimed the trucks looked like a disguised attempt to reinforce separatist forces. Russia denies backing the rebels.

The UN Security Council discussed the convoy on Friday and no country came to Russia's defence, according to British Ambassador Mark Lyall Grant.

Members called it an "illegal and unilateral" action.

Following a phone call, US President Barack Obama and Ms Merkel condemned the act.

They also expressed concern that the large numbers of Russian troops on the Ukraine border and fighting in eastern parts of the country represented a "dangerous escalation".

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Iceland Raises Volcano Aviation Warning To Red

A surge in seismic activity has caused Iceland to raise the aviation alert for its Bardarbunga volcano from orange to red.

Code red indicates that eruptions are imminent or underway that could disperse clouds of ash and dust into the flight paths of jet aircraft, threatening safe air travel.

Met Office official Theodor Hervasson said: "There is an ongoing eruption beneath the glacial surface, probably a small eruption which has not been able to melt the ice cap."

An eruption in 2010 of Iceland's Eyjafjallajokul volcano produced an ash cloud that caused aviation chaos, with more than 100,000 international flights cancelled.

2010: Iceland's Eyjafjallajokull volcano erupts disrupting 100,000 flights

Aviation regulators have since reformed policies about flying through ash, so a new eruption would be unlikely to cause the same level of disruption.

Thousands of mini earthquakes deep beneath the Vatnajokull glacier over the past week have rattled Bardarbunga, causing authorities to evacuate several hundred people from an area north of the glacier.

Met Office vulcanologist Melissa Pfeffer said scientists planned to fly over the glacier today to look for any changes to its surface. 

Bjorn Malmquist from the Icelandic National Broadcasting Service said: "It's too early to say if flights will be disrupted. 

"A small eruption started 40 minutes ago but we have yet to see how powerful it is. It will take a couple of hours for the eruption to work its way through 500m of glacial ice above. Until then there's not much we can say about the air traffic.

"As long as there is water and magma interaction there will be a lot of ash, and explosions in the eruption itself, but its probably not going to be of the same kind in 2010. This will probably be more a fissure eruption, a sub-glacial eruption."

A spokeswoman for NATS, the UK's air traffic control organisation, said: "We are monitoring the situation and working in close collaboration with the Met Office, Department for Transport and our safety regulator, the Civil Aviation Authority."

Budget airline Easyjet said it was implementing contingency plans following the alert which would enable it to determine whether to make any changes to its flight programme.

An Easyjet spokesperson said: "Easyjet will use this and other data provided by the authorities to determine what, if any, changes it should make to its flying programme.

"As things stand there are no changes to easyJet's flying programme, including flights to and from Iceland."

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