Israel Intensifies Aerial Offensive as Hamas Issues Ceasefire Conditions

Smoke and flames are seen following what police said was an Israeli air strike in Rafah in the southern Gaza StripReuters

Israeli forces have intensified their aerial offensive on the Gaza Strip targeting Hamas and Islamic militants even as the Palestine outfit issued conditions for a ceasefire.

Pressing ahead with its major operation, codenamed Protective Edge, the Israeli Defence Forces (IDF) have struck as many as 160 insurgent targets overnight. The targets include a weapons storage facility, training bases, and launching infrastructures.

"We are determined to lay a significant blow on Hamas' terror capabilities and infrastructure, eliminate any threat on Israeli sovereignty emanating from the Gaza Strip and restore stability to the southern region," said IDF spokesperson Lieutenant Colonel Peter Lerner. "Terrorists perpetrating the aggression against Israel have a personal price to pay and will bear the consequences of their actions."

Palestinian reports have said a senior member of the Islamic Jihad group has been killed in an Israeli strike. At least 20 suspected militants in the Gaza Strip region have been killed in the last two offensives.

The Israeli cabinet has also authorised to call up to 40,000 reservist troops in case of an escalation in the conflict. About 1,500 have already been deployed near the Gaza Strip region.

As part of its retaliatory attacks, the Hamas launched a barrage of rockets into Israel. Of the 140 rockets fired on Israel within a span of 24 hours, 30 of them were intercepted by the Iron Dome missile interceptor while the remaining landed in places as far as north of Tel Aviv.

Meanwhile, the military wing of Hamas - Izz ad-Din al-Qassam Brigades – has issued a statement setting terms for the ceasefire.

Exhorting the Israeli forces to stop the aggression against the Gaza Strip, they have also called for the release of Palestine prisoners.

According to a video statement filmed from a secret location, the Hamas has urged Israel to adhere to the deal reached after the 2012 confrontation.

Brazil 1-7 Germany: We Have Just Witnessed The Most Remarkable Football Match Ever Played

As the clock ticked round to 9.30 this evening, and Germany stoked in their fifth goal against Brazil, it was possible to imagine the entire world sitting open-mouthed. People from Shanghai to Sevastopol sitting dumb-founded, unable to speak, incapable of digesting the events unfolding in front of their eyes.

Such brutal evisceration just doesn't happen in professional sport. Even when a team is beaten, it is rarely made to look as dishevelled, as denuded, as amateur as Brazil looked tonight. Luis Felipe Scolari's men looked like a hungover pub side bumbling around the local park on a Sunday morning, not one of the world's most storied football teams playing to an audience of billions.

This wasn't simply a thrashing. It was the single most earth-shattering football match of all time.

Think I'm guilty of hyperbole? Well, let's look at the facts. First of all, one must consider the magnitude of the game. The World Cup comes round once every four years, and is the most popular sporting event on the planet. Although the finalists take the glory, each semi-final is remembered for years afterwards. Indeed English fans are still rabbiting on about the semi-final defeat to Germany in Italy, almost 25 years ago.

Then one must factor in the pedigree of the losing team. Brazil may have been missing their talisman, Neymar, but tonight's team still contained players from Real Madrid, Chelsea and Bayern Munich. Sure, there were weaknesses in Scolari's squad – his roster of forwards included Fred, Neymar and Jo, a list which reads more like the dramatis personae of Coronation Street than a potent Latin strikeforce, and in truth Brazil's strikers offered none of the flair and menace of those who have donned the famous yellow shirts before them.

Yet this was Brazil, the five-time World Cup winners, proud wearers of those iconic jerseys which possess a beguiling majesty all of their own. And this lot were playing at home, roared on by over 200 million people in familiar surroundings and in conditions which should have suited them far more than their European opponents. Prior to tonight, Brazil hadn't lost a competitive home match for 12 years.

Given Brazil's history, their home advantage, and the stakes for which both teams were playing, any German win would have constituted an outstanding result. Yet they inflicted Brazil's biggest-ever defeat, and one of the widest winning margins ever seen at the World Cup; only six times in history has a team scored more than seven goals at the tournament. The last time a team shipped seven goals was in the group stage of the tournament, and that team was North Korea.

There have been drubbings of fancied sides before, of course. Just last year Bayern Munich, for whom any of this German side play their club football, inflicted a 7-0 humiliation on Barcelona in the Champions League, albeit over two legs. Go back in history and you have Real Madrid's 7-3 victory over Eintracht Frankfurt in the 1960 European Cup, and, even further back, Hungary's 7-1 demolition of England, then the aristocrats of the game, during the 1950s.

Yet surely no hammering has ever captured quite so much attention as this one. The entire world tuned in to watch a heavyweight contest this evening, and ended up seeing a proud footballing nation brought to its knees, reduced to a pathetic rabble. The dust is now starting to settle, as people finally accept that what they saw on their television screens was, in fact, real. But football's aficionados will be talking about tonight for as long as the game is played.

Israel: Air Raid Sirens Sound Code Red Alert in Tel Aviv

A trail of smoke is seen from a lookout point after a rocket is launched from the Gaza Strip towards IsraelReuters

Air raid sirens signalling a rocket strike have been sounded in some major central Israel cities, including Tel Aviv and Rishon Letzion.

Local media reported that the Israeli missile defence system, Iron Dome, shot down a rocket over Tel Aviv.

The Israeli Defence Forces (IDF) tweeted:

#Hamas has fired over 130 rockets at Israeli civilians since last night. In response, #IDF targeted approximately 150 terror sites in #Gaza

— IDF (@IDFSpokesperson) July 8, 2014

According to Channel 2, one or possibly two rockets had been fired towards Tel Aviv Metropolitan Area, or Gush Dan.

Residents scrambled to take shelter as the Code Red alert sounded in the area.

IDF said that Hamas has fired more than 130 rockets towards Israel since last night.

More to follow.

Sisi's Subsidy Squeeze in Egypt Welcomed Abroad But Comes With a High Domestic Cost

Ramadan lanterns, made in the likeness of Egypt's President Sisi, are sold at a market in CairoReuters

The streets of Cairo once again froze this week as angry Egyptians blocked streets in protest over the government's raft of price hikes.

Cigarettes, beer and spirits immediately became more expensive after the government introduced a new sales tax, but it was the price hikes on fuel that provoked immediate dissent on the streets of the capital and prompted the market to raise prices on goods across the economy.

Taxi drivers blocked thoroughfares throughout the city, parking their vehicles in defiance and disbelief at the prices being charged at Cairo's petrol stations.

Recently elected president Abdel Fattah al-Sisi had said that his administration would tackle costly energy subsidies and had also used his electoral campaign to promise he would prioritise the most vulnerable in Egyptian society.

The breakdown of the surprise price hikes has provoked dismay among lower income groups that use cheaper fuels, like taxi drivers.

There are five types of fuel commonly used in Egypt. Unleaded is the costliest type of fuel, generally used in the newest and flashiest cars. Its price was raised 7% but the gasoline used by buses and minibuses went up a staggering 78%.

"I have five kids, God only knows how I can pay my rent this month," Cairo bus driver Salame told Reuters. "I was wrong when I voted for Sisi. We are the poor of this country and the decision makers are putting a sword's blade to our throats."

In a sign that the administration was fully aware of the anger its policy would likely stir up, the new prices were announced only a few hours before they were due to be implemented.

Playing to an International Audience

While successive administrations have promised to reform Egypt's public finances, it seems that Sisi is actually willing to push through unpopular reforms, drawing unflattering comparisons with former president Anwar Sadat.

In 1977, fresh from a perceived victory in the conflict with Israel, Sadat significantly hiked prices on fuel, bread and a range of consumer items. Egyptians responded with a wave of violence, setting fire to presidential residences across the country that became known as the notorious "bread riots." Sadat's domestic popularity never recovered and he was assassinated four years later.

The recent price hikes show where Sisi's priorities lie. Egypt's foreign exchange reserves have dwindled to $16.68bn (£9.74bn), similar to the depths it reached in the wake of last summer's coup.

Sisi has an eye on international creditors and hopes to secure backing from the International Monetary Fund. He knows the Fund would only approve loans to Cairo if the government embarked on austerity measures. Moreover he is seeking more cash from his allies in the Persian Gulf, namely Saudi Arabia, Kuwait and the United Arab Emirates.

While the trio of Gulf states were happy to lavish cash on the man who brought about the downfall of an Islamist president in the Arab world's most populous nation, both the Emiratis and the Saudis are keen that their aid money is put towards long-term investments and not lost in waste and corruption.

Economists hailed this week's slash in subsidies, while ratings agency Fitch said the cuts are a key way to reduce the country's budget deficit and are positive for Cairo's credit profile.

On the back of a massive victory in May's presidential election, the former head of the armed forces is confident that he has enough political capital to ride out any popular discontent.

While the relatively small number of protests to date may validate his calculation, recent history shows that Egyptians want to be listened to by their leaders. If the economic reforms become intolerable, Egyptians will no doubt make their voices heard on the streets.

British Muslims Plead Guilty to Plotting Syria Terror

Yusuf Zubair Sarwar (left) and Mohammed Nahin Ahmed pose with guns

Two British men, who said they went on a "humanitarian" mission to Syria, have pleaded guilty to terrorism offences in Britain.

Childhood friends Mohammed Nahin Ahmed and Yusuf Zubair Sarwar, both 22 and from Birmingham, plotted their jihad mission on the web and spent eight months in Syria.

They were condemned by incriminating photographs discovered in their possession when they landed back at Heathrow airport in January.

Thousands of images showed the pair posing with a range of guns and weaponry and not engaging in humanitarian business.

Gunpowder and explosives traces were found on the clothes of Ahmed, originally from Bangladesh, and Sarwar, who is of Pakistani origin.

At Woolwich Crown Court they pleaded guilty to one charge of preparing terror acts, under the Terrorism Act.

The case highlights concerns about home-grown jihadis returning to Britain with military skills after fighting in Middle Eastern conflict zones.

Sarwar wrote his family a note when he left home, telling them he had joined a group called Kataib al Muhajireen (KaM), renamed Kateeba al-Kawthar. The name means: "to do jihad".

Online conversations between the pair were also uncovered, in which Ahmed spoke of his plan to wage jihad, saying: "I cannot tell anyone I'm going to jihad. Lol. I'll get arrested."

Both men's families said they had tried to make them return home. Sarwar's family said they thought he had gone to Turkey on a university trip.

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Typhoon Neoguri: One Dead After Boat Battered By 50ft Waves as Japan Is Braced for Destruction

A tree uprooted by Neoguri on Japan's southern island of OkinawaReuters

One person has died, homes have been destroyed and nuclear power stations have been forced to close as Typhoon Neoguri approaches Japan.

The man was killed after his boat was hit by huge waves, NHK national television has said. Waves churned up by the storm were estimated to reach up to 46ft. More have been injured as a result of falling debris, Reuters said.

There are two power stations in the storm's path in Kyushu – the Sendai Nuclear Power Plant and the Genkai Nuclear Power Plant. Both are operated by Kyūshū Electric Power Company.

A third power station, the Ikata Nuclear Power Plant, is located on the southern island of Shikoku and is operated by the Shikoku Electric Power Company.

All three have been shut down ahead of Neoguri's approach. A spokeswoman for Kyushu Electric Power Company told Reuters there are plans in place to protect the plant for severe weather. Experts have warned Kyushu could experience landslides as the storm brings with it up to three inches of rain per hour.

A satellite image shows Typhoon Neoguri approaching Japan on its northward journeyReuters

Speaking to the Washington Post, Jim Andrews, a meteorologist with AccuWeather, said: "Kyushu is the odds-on favourite to have the worst of the storm. Whenever you get a tropical cyclone making landfall in Japan you are going to get 10 to 15 inches of rain somewhere, so you get mudslides of course, as well as some flooding."

The Fukushima nuclear plant should not be affected by Neoguri as it is located on the west of Japan, away from the storm's projected path.

The only warning in place for Fukushima, which is still experiencing problems following the 2011 earthquake and tsunami, is dense fog.

Neoguri has just made landfall on the southern Onikawa islands, where locals are reporting heavy rain and extremely strong winds.

A wooden house collapsed during strong winds in Naha on Japan's southern island of OkinawaGetty

The Super-Typhoon was downgraded overnight by the Joint Typhoon Warning Centre, which said it currently has sustained winds of about 205km/hr (127mph).

Officials said it is one of the biggest storms to hit Japan in decades, with Brigadier General James Hecker, a commander at the Kadena Air Base in Okinawa, saying: "I can't stress enough how dangerous this typhoon may be when it hits Okinawa."

A statement from Japan Airlines said many flights will be cancelled as a result of the severe weather: "Today 8 July and tomorrow 9 July, JAL domestic flights are experiencing irregular operations. Before arriving at the airport we recommend checking Flight Status and Information for details for the latest information."

Over 100,000 people have so far been evacuated, with thousands more expected to be asked to leave their homes as the storm moves north-eastwards.

Singapore's Temasek Holdings Ends Year With Record $178bn Portfolio

Singapore's skyline.Reuters

Singapore's Temasek Holdings has said that its portfolio size rose 3.7% to a record S$223bn in the 12 months to March 2014.

The fund also reported a net income of S$10.9bn ($8.72bn, £5.12bn, €6.45bn), a tad higher than the preceding year's S$10.6bn.

The state-owned investment firm described the financial year ended March 2014 as its most active year for new investments since the global financial crisis.

TSR Drops

Temasek said its one-year total shareholder return (TSR) hovered at 1.5%, a huge drop when compared to the previous year's 8.9%. The sovereign wealth fund attributed the drop to a weakness in its key Asian markets.

Singapore, China and Australia were the fund's three largest exposures at 31%, 25% and 10% respectively as of 31 March, 2014, and equity markets were down in both Singapore and China over the reporting period.

Temasek's 10-year TSR hovered at 9%, while the TSR since inception, in 1974, was 16%, according to a company statement.

New Investments

Europe and North America accounted for about 40% of the fund's new investments, with underlying exposure to North America and Europe rising to over 14%, up from 12% the previous year.

The top three sectors for investments during the year were financial services, life sciences and energy.

Temasek chairman Lim Boon Heng said in the statement: "...This year has been one of our most active years for new investments – the most active since the Global Financial Crisis – driven by softer Asian markets of interest, as well as the continued recovery of the global economy.

"In the course of the past year, the US tapered its loose monetary stance and China reined in its debt fuelled growth. This bodes well for the longer term, though major central banks will most likely take some years to unwind the massive balance sheet expansions of the past five years."

Hot Shots Photos of the Day: Gaza Airstrikes, Guatemala Earthquake, Super Typhoon

Lightning strikes the Mandalay Bay Resorts and Casino and Luxor hotels in Las Vegas, NevadaReuters

Smoke rises following what witnesses said were Israeli air strikes in Rafah in the southern Gaza StripReuters

Palestinians collect their belongings from damaged homes after an Israeli missile strike hit Gaza CityAFP

An Israeli police explosives expert holds the remains of a rocket fired from Gaza after it landed in Kibbutz Nirim. The Israeli military has hit at least 50 sites in Gaza by air and sea and is mobilising troops for a possible ground invasion aimed at stopping a recent barrage of rocket attacks against IsraelReuters

An Israeli soldier performs a morning prayer in a deployment area near Israel's border with the Gaza StripAFP

Israeli soldiers stand next to tanks positioned on the Israeli side of the border with the Gaza StripAFP

North Korean leader Kim Jong-un poses with soldiers during an inspection of a defence unit on Ung Islet, off the east-coast port of WonsanReuters

Syrians walk amid dust following a reported barrel-bomb attack by Syrian government forces in the Tariq al-Bab neighbourhood of AleppoAFP

A member of the Ukrainian emergency services takes a photograph of a destroyed rail bridge which fell over a main road leading to the eastern Ukrainian city of DonetskReuters

An earthquake-damaged house is pictured in the San Marcos region, in the northwest of Guatemala. A strong earthquake shook the area along the border with Mexico, killing at least four people, damaging dozens of buildings and triggering landslidesReuters

Super Typhoon Neoguri approaches Japan on its northward journey, as seen in an image taken by MTSAT-2 satellite. The powerful typhoon forced Japanese authorities to cancel flights and urge more than 550,000 people were advised to evacuate their homes, though most remained putReuters

Locals row a small boat in a flooded neighbourhood in Asuncion, the capital of Paraguay. The Paraguay river has risen nearly 6.5 feet (2 metres) above normalAFP

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New England cranberry farmer Adrienne Mollor arranges a rose-shaped floating display full of cranberries at the Hampton Court Palace Flower Show in LondonGetty

Two-week-old ducklings swim in a newly-planted rice field in Ichikawa, Japan, to eat insects and weeds as an eco-friendly alternative to chemical farmingGetty

A supporter of Kenya's opposition Coalition for Reforms and Democracy attends a rally to demand dialogue with the government, at the Uhuru park grounds in the capital NairobiReuters

A sign depicting Raila Odinga, leader of Kenya's opposition Coalition for Reforms and Democracy, is seen during their rally at the Uhuru park grounds in the capital NairobiReuters

US singer Pharrell Williams performs on the Stravinski Hall stage at the 48th Montreux Jazz Festival in Montreux, SwitzerlandReuters

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Fallen runners are trampled by bulls at the Estafeta corner, during the second running of the bulls of the San Fermin festival in PamplonaReuters

A man is gored by a bull during the Bous a la Mar festival in the eastern Spanish coastal town of DeniaReuters

India Proposes FDI and Private Investment in Railway to Modernise Facilities

India's Railway Minister Sadananda Gowda (C) poses after giving the final touches to the railway budget for the 2014/15 fiscal yearReuters

India is planning to open up its state-monopolised railway sector to private and foreign investment to fund its future projects aimed at modernising the system.

"We are seeking cabinet nod to allow FDI in the railway sector," railway minister D V Sadananda Gowda said during his maiden budget presentation in the Indian parliament.

However, FDI will be allowed only in railway infrastructure and not in operations. In addition, the country's focus will be on aggressive indigenisation, Gowda said.

The bulk of future railway projects will be financed via the public-private partnership (PPP) route, according to Gowda.

The country earlier hiked rail fares for passengers and goods in order to meet the sector's proposed expenses.

Gross traffic receipts in 2014-15 are estimated at 1.64tn ($27bn, £16bn, €20bn) rupees, including 80bn rupees generated from the fare hike. Meanwhile, the expenditure is estimated at 1.49tn rupees.

Despite being a monopoly in the country, the Indian railway has been suffering from low investment and rising losses, and Gowda said the situation was due to mismanagement.

The loss per passenger per kilometre increased to 0.23 rupees in fiscal year 2012-13 from 0.10 rupees in 2000-01, he noted.

India's vast rail network, the fourth largest in the world with 1.3 million employees, has been criticised for its outdated facilities. With modernisation of the railway being a tough job involving huge investments, successive governments have stepped away from it in order to woo voters with cheap fares.

The new government under Prime Minister Narendra Modi earlier hinted that its policies would be tough and unpopular, but are directed at long-term growth of the economy.