RBS Customers May Face Negative Interest Rates

The RBS banking group has warned 1.3 million customers they could be charged negative interest rates if the Bank of England cuts base rates below zero.

The group, which includes NatWest, wrote to its business and commercial account holders about the potential changes, which mean they could lose money even when they are in credit.

The letter said: "Global interest rates remain at very low levels and in some markets are currently negative.

"Dependent on future market conditions, this could result in us charging on credit balances."

The Bank of England's base rate currently stands at the historically low rate of 0.5%, where it has been for more than seven years - and some economists believe it should be cut further to stimulate the economy.

BofE governor Mark Carney is reluctant to cut the base rate below 0.25%

RBS and NatWest would be the first banks in UK history to charge negative interest rates.

However, a spokeswoman for the group stressed there are no plans to inflict any of these changes on its personal banking customers.

"We will consider any necessary action in the event of the Bank of England base rate falling below zero, but will do our utmost to protect our customers from any impacts," she added.

Any cut in the base rate would be better news for borrowers, as those on so-called "tracker" mortgages would see the cost of their monthly bills fall.

But savers could see already disappointing returns on their funds plummet further in the event of a reduction to 0.25% as expected.

Earlier this month, Bank of England governor Mark Carney said he was reluctant to reduce rates below 0.25%, warning: "If interest rates are too low or negative, the hit to bank profitability could perversely reduce credit availability or even increase its overall price."

RAF Marham Attacker Headbutted By Victim

A man being hunted for trying to abduct an RAF serviceman may have a black eye after his intended victim headbutted him.

The serviceman was approached by two men with a knife at RAF Marham, near King's Lynn in Norfolk, at about 3pm on Wednesday.

Police have said the main suspect grabbed the serviceman, aged in his late 20s, while he was jogging and tried to pull him into a dark-coloured Ford Galaxy.

In an ensuing scuffle the intended victim headbutted his attacker before punching him to the ground.

The second attacker went to the aid of his accomplice, giving the serviceman time to escape and seek help.

Detective Superintendent Paul Durham said: "The victim managed to fight off his attacker and headbutted him, we believe around the eye-socket, so it is possible he suffered swelling and bruising in this area.

"He was then punched which caused him to fall to the ground.

"Clearly the extent of his injuries is unknown, however we do not believe either attack caused the suspect to bleed, contrary to reports circulating in the media."

The serviceman, who was not in uniform, was not injured.

Marham is home to four squadrons of Tornado bombers which have been flying raids against Islamic State in Syria from Cyprus.

Police on Ladywood Road near RAF Marham, after a serviceman was attacked

Police have been carrying out enquiries in the area during the weekend and reviewing CCTV in an effort to trace the suspects and the vehicle involved.

The suspects have been described as aged between 20 and 30 years old and of Middle Eastern appearance.

One had a well-groomed beard and was of stocky build, while the other was clean shaven and slimmer.

DS Durham added: "Tracing the vehicle remains a priority and one point I would like to re-emphasise is that we do believe it may have contained more than the two suspects seen by the victim.

"This is important because I do not want to deter any potential witnesses from coming forward - it is the vehicle we are interested in, regardless of the number of people seen inside.

"If you know someone who matches the description of our suspect, who has a similar injury, then I would urge you to contact my officers."

:: Anyone with information is asked to call the dedicated hotlines on either 0800 056 0154 or 0207 158 0011 or dial 101.

Germany Bomber Pledged Allegiance To IS

failed asylum seeker who blew himself up outside a bar in Germany had pledged allegiance to the leader of Islamic State in a video found on his mobile phone, officials say.

The 27-year-old Syrian man, named by prosecutors as Mohammad D, was killed in the attack in Ansbach and 15 people were injured, including four seriously.

In the video, he talked of "revenge" and German police found chemicals, gasoline and other materials at his home that could be used to build another bomb.

IS said he carried out the attack in response to calls to target coalition countries fighting the militant group.

Joachim Herrmann, Bavaria's interior minister, said: "He expressly announces, in the name of Allah, and testifying his allegiance to Abu Bakr al-Baghdadi, a famous Islamist leader, an act of revenge against the Germans because they're getting in the way of Islam. 

"I think that after this video there's no doubt that the attack was a terrorist attack with an Islamist background." 

Mr Herrmann said videos containing "Salafist content" had been found on storage devices at the suspect's home. 

The man, who had been denied asylum in Germany, carried out the attack outside a wine bar in the southern city. 

Security officials say he detonated an explosive device after being turned away from a music festival, attended by thousands of people, because he didn't have a ticket.

Mr Herrmann said the contents of his backpack had the potential to kill and injure many more victims as they included both explosives and metal parts. 

The pack used to carry an explosive device

The suspect was known to the authorities and had repeatedly received psychiatric treatment, including for attempted suicide.

Interior ministry spokesman Tobias Plate said the intention had been to deport the man.     

"Syrians cannot be deported to Syria at the moment, but that doesn't mean that Syrians overall cannot be deported," he said at a news conference. 

"The Syrian in Ansbach was facing deportation and this was to Bulgaria" (where he had first submitted a request for asylum).        

Mr Plate said the suspect had received two deportation notices, most recently on 13 July. 

A large-scale operation involving 200 police and 350 rescue workers was launched, and a helicopter brought in.  

Armed police have raided a building used to house asylum seekers three kilometres from the scene. 

Detectives have asked anyone with mobile phone footage to send it in. 

Police officers leave after a search at a refugee shelter in Ansbach 

Witness Thomas Debinski said: "People were definitely panicking. The rumour we were hearing immediately was that there had been a gas explosion. 

"But then people came past and said it was a rucksack that had exploded. Someone blew themselves up.

"After what just happened in Munich, it's very disturbing to think what can happen so close to you in such a small town." 

More than 2,000 people were evacuated from the nearby festival.  

Germany has been on high alert following a series of incidents in recent days. 

Germany's Interior Minister, Thomas de Maiziere, has said police presence will be boosted at airports and railway stations following four violent incidents since last Monday.