Police Question UK 'Islamist Plot' Suspects

Counter-terror police have arrested four men in connection with an alleged Islamist terror plot following raids across west London and in the Thames Valley.

The arrests came ahead of this weekend's Remembrance Sunday and Armistice Day events.

Earlier this month, senior police officers and MPs said there was likely to be a significant rise in the number of armed police at Sunday's commemorations in London due to increased fears of a terror attack.

A 27-year-old man was arrested at gunpoint in a car in the street in Southall, west London.

Two other suspects, aged 22 and 25, were detained at addresses in Hounslow and Uxbridge, also in the west of the capital.

Police vans and tape could be seen outside two High Wycombe addresses

The fourth man, 19, was detained at an address in High Wycombe, Buckinghamshire.

Armed police took part in the operations in Southall, Hounslow and High Wycombe but no shots were fired.

The arrests were made on Thursday evening and in the early hours of Friday.

Counter-terrorism officers were leading searches of various properties in Hounslow, High Wycombe, Uxbridge, Southall, Greenford and Hayes.

The properties include a terraced house on Desborough Avenue in High Wycombe, Sky's Tom Parmenter reported from the scene.

Parmenter said there was some concern in the community over the arrest of the man in the town and the alleged "disproportionate" use of force by anti-terror police.

Youth worker Saqib Deshmukh, who knows the suspect, told Sky News: "One of the concerns that we heard was that it was a disproportionate use of force and armed response. Did it necessitate that? Was there a need for that to happen?

"Was there an actual threat on the ground? And that's a concern - that the actual number of forces and the level of force used is disproportionate and it doesn't merit it based on the evidence."

Local shopkeeper Sutha Tangaraj works opposite the house and told Sky News he saw the armed police arrive.

"At about 7pm or 7:30pm at least half a dozen armed police surrounded the house, they knocked the door and no one answered.

"A lady in the house eventually opened the door and they went and have since been searching ever since."

He said police were at the same address six months ago.

It is understood the men were believed to be plotting an attack on UK soil

Mr Tangaraj said the man who lives at the property "is a regular customer and lives in the house with his family - his mother is very chatty".

The four men were all taken to police stations in central London. 

Scotland Yard said the arrests and subsequent searches were part of an "ongoing investigation into Islamist-related terrorism".

Sky's home affairs editor Mark White said: "Scotland Yard are officially giving very little in the way of information on these arrests, but sources are suggesting it is linked to an alleged extremist plot against the UK."

The arrests came a few months after the national terror threat level in the UK was raised from substantial to severe, meaning a terrorist attack is "highly likely".

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Call For Probe Into 'Cannibal' Killer's Releas

The decision not to monitor a man who then murdered a woman in a reported act of cannibalism after he was released from prison must be investigated, a Welsh politician has said.

Cerys Marie Yemm, 22, died after an attack at a homeless hostel in the village of Argoed, South Wales.

Sources have said she was found with substantial facial injuries.

Police fired a 50,000-volt Taser at Matthew Williams to try to stop the attack in the early hours of Thursday morning.

The 34-year-old was arrested but later became "unresponsive" and died in custody

Matthew Willliams is understood to have served time for violent offences

It is believed Williams had recently been released from jail after serving time for violent behaviour.

Welsh Assembly member William Graham said it was vital to look into the terms of the killer's release.

"It is now clear that Mr Williams posed a risk to the public and I am extremely concerned that monitoring appears to have been deemed unnecessary," he told the BBC.

"If true, a wider inquiry into the circumstances surrounding his release is urgently required.

The attack happened at a homeless hotel in the village

"Questions must be answered by authorities and a full explanation provided on the decisions taken in this extremely tragic case."

Gwent Police have said they are not looking for any other suspects in the murder investigation.

The Independent Police Complaints Commission has also started its own probe into the suspect's death.

The post-mortem examination on Miss Yemm has started but Chief Inspector Paul Staniforth said it would "take some time".

He refused to be drawn on gruesome speculation over the attack, telling reporters it was "unhelpful and very upsetting for the family of the deceased".

It is believed Miss Yemm, who worked at Next, had met her attacker through mutual friends.

"I feel stunned, shocked and sick to my stomach," said a friend, who did not want to be named.

"It's horrific. She was a lovely person. She didn't deserve to die like that."

People in Argoed, 20 miles north of Cardiff, have told Sky News they are "sickened" by the apparent savagery of the attack.

The Sirhowy Arms Hotel - where Miss Yemm was discovered - is used by Caerphilly Council to house homeless people while they wait for permanent accommodation.

Local resident Susan Gibbs told Sky: "We have had a lot of problems up there. Every other week, well every other day sometimes, there are police up there."

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Labour Pair Deny Secret Pact Over Miliband

Two of the most senior members of Ed Miliband's shadow cabinet have strenuously denied making a secret pact in the event of the Labour leader stepping down.

Shadow home secretary Yvette Cooper and shadow health secretary Andy Burnham were reported by The Times to have struck a "non-aggression pact".

The newspaper quoted one figure as saying: "It's about presenting a joint offer to make a contest unnecessary."

But Ms Cooper's spokesman said there was "no foundation whatsoever" to the suggestion.

He said: "The spreading of lies like this only damages the Labour Party and should be seen as exactly what it is - complete and utter garbage. Yvette, the shadow cabinet and the party are united behind Ed's leadership."

Video: Balls Denies Miliband Plot Rumours

The shadow health secretary's spokesman insisted there were "no discussions of this kind", adding: "The party is united behind Ed's leadership and we are confident he will become the next Prime Minister."

Mr Miliband was forced to deny reports that several backbenchers had demanded his resignation amid concerns over Labour's prospects of victory at next year's general election.

Dismissing the reports as "nonsense", Mr Miliband insisted the party was focused "on the country and the things that matter to the country".

Video: Cooper: Miliband Doing A Good Job

In a show of support, former cabinet minister David Blunkett has called for an end to "this bout of political insanity".

"When you are standing on the edge of a cliff it is unwise to believe that by jumping you will suddenly learn to fly," he told The Guardian.

One of Labour's biggest individual donors, JML founder John Mills, urged the party to "rally behind its leader ... not to get involved in internecine fighting like this".

Video: Labour Party Is 'Dying'

But Lord Soley, who as an MP chaired the parliamentary party, issued a bleak vision of the party's general election prospects and suggested Mr Miliband should take a less prominent role as he was not seen by voters as a "charismatic potential prime minister".

A YouGov poll for LBC radio found that nearly half of people questioned believe the party's chances of regaining power would be improved if Mr Miliband was replaced.

And there was further bad news for Mr Miliband as a recording emerged of shadow Welsh secretary Owen Smith saying the party is "dying" and that unless it becomes "much, much more vigorous ... then we are lost".

Video: Miliband's Approval Rating New Low

His remarks were made during a fringe event at a conference organised by CLASS - a left-wing think tank.

A Labour spokesperson said: "Anyone who was at the event would know that this comment was a humorous dig at the age of the people attending the fringe meeting and not a comment on the Labour movement.

"It is ludicrous to twist it in this fashion.‎"

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PM To Warn EU Leaders Over £1.7bn Demand

By Darren McCaffrey, Sky News Politics Reporter

The scale and timetable of Britain's proposed £1.7bn extra contribution to the European Union is unacceptable, both David Cameron and George Osborne will tell EU leaders today.

The Chancellor, who is attending a meeting of Economic and Financial Affairs Council (ECOFIN) ministers in Brussels, will start negotiations with the intention of delaying and reducing what the UK should pay.

Meanwhile, Mr Cameron, at a meeting of northern European leaders in Helsinki, is trying to gain support for Britain's position with the message that it is the UK this time - but could be another country next.

The meeting is part of a two-day summit of Scandinavian and Baltic state leaders called the Northern Future Forum.

The primary aim is to promote growth and economic reform throughout Europe, but Downing Street is clear the Prime Minister will be raising other issues such as budget control and migration.

Video: PM: £1.7bn EU Surcharge 'Appalling'

Mr Cameron's hopes of winning allies in his attempt to curb internal migration within the EU have been met with strong resistance from other European leaders, including hosts Finland.

Finnish leader Alexander Stubb told the Financial Times: "We need to understand what the UK wants, and the UK needs to learn where are the limits of other member states.

"Whether some kind of arrangement can be found, I don't know.

Video: PM Defiant Over £1.7bn EU Bill

"But to start putting restrictions on free movement in one way or another I would find quite difficult."

Sweden and Germany's opposition to migration reform have made the Prime Minister's task very difficult.

But Mr Osborne may have more success with the surcharge.

Video: EC Chief: £1.7bn UK Surcharge Fair

There are suggestions Brussels may be willing to allow interest-free instalments rather than the UK having to pay the full amount on 1 December.

The Labour Party has piled on the pressure, with Ed Balls and Douglas Alexander saying "the Government must have all eyes on the detail of the deal being discussed, not looking back over their shoulders at the Eurosceptic backbenchers who still seem to be pulling the strings".

A programme of instalments will not go far enough for the UK, but could be the start of a process allowing for an acceptable agreement that Mr Cameron can sell to his party and the country.

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Petrol Price Guarantees Demanded By Treasury

A failure by petrol firms and supermarkets to pass on the full benefit of falling oil prices to customers filling up at the pumps would be an "outrage", a Cabinet Minister will warn.

Treasury Chief Secretary Danny Alexander is to demand guarantees from fuel companies and distributors that they are doing all they can to pass on the price cuts to hard-pressed motorists.

Danny Alexander is seeking assurances on petrol prices

Mr Alexander will use a speech in Aberdeen to say consumers feel petrol prices rise "like a rocket" when oil costs go up, but fall "like a feather" when they come down.

And people would "rightly be angry" if they felt prices were not coming down as much as they should.

Video: 'We Still Pay Too Much For Fuel'

Brent crude slumped as low as $82 (£51) a barrel earlier this week, its lowest level in just over four years due to concerns about over-supply.

The Liberal Democrat frontbencher will say: "Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don't fall as much as they should on the back of falling oil prices.

"I believe it's called the rocket and feather effect.

"The public have a suspicion that when the price of oil rises, pump prices go up like a rocket.

"But when the price of oil falls, pump prices drift down like a feather.

"This has been investigated before and no conclusive evidence was found.

Video: Cuts: A Loss Leader Or Real Deal?

"But even if there were a suspicion it could be true this time it would be an outrage."

Mr Alexander promises to write to the industry's major players "seeking their assurance that they are doing all they can to pass on the benefit of falling oil prices as quickly as possible".

He will say: "When the price of oil falls, the public have a right to expect pump prices to fall like a stone, not a feather."

Pointing to the Treasury's fuel duty freeze, Mr Alexander will say: "I have made sure over the last four years that Government has helped with the cost of fuel.

"And when the oil price falls, industry must do all it can to help too."

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Banking Industry Competition Probe Ordered

Regulators have ordered a full market inquiry into banks over fears the dominance of the largest lenders is stifling competition.

The Competition and Markets Authority (CMA) said its investigation would scrutinise the personal current account and small business  retail banking sectors.

Sky News reported on Tuesday night how major banks had called off their efforts to stall the inquiry.

The UK's four largest banks, Lloyds, RBS, Barclays, and HSBC collectively supply 77% of personal current accounts in the UK - a market worth £8bn.

The 'Big Four' also control about 85% of all small and medium-sized business accounts, an industry worth another £2bn.

Video: 'Retail Banking Isn't Working'

The CMA said there has been "very little movement" in their collective market share as the level of customers shopping around and switching current accounts is "low".

It blamed limited transparency in the sector and had previously suggested a banking comparison website as a first step to improving transparency and aid competition.

Challenger banks, such as Metro Bank and supermarket lenders, have grown their customer bases but failed to make the impact that had been hoped for to aid lending to small firms in particular.

The seven-day switch initiative - to ease the amount of time customers would have to wait to change bank - has helped grow numbers changing their lender.

The spin-off of TSB from Lloyds and the looming flotation of Virgin Money may also help boost competition.

But the CMA said it was concerned about continuing barriers of entry and expansion in the banking sector, which limit the ability of smaller and newer providers to develop their businesses.

The investigation is tipped to take up to two years to complete.

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EU Migrants Pay In More Than They Take - Study

EU migrants contribute more to the UK in taxes than they receive in benefits and services, according to new research.

But the study showed those arriving from outside Europe over a 17-year period took more from the public purse than they put back in.

The findings come as David Cameron moves to tighten the UK's immigration controls in the face of the growing popularity of UKIP.

The Prime Minister is aware of the need to calm Tory jitters ahead of this month's crunch by-election in Rochester and Strood, where the party is desperate to prevent a second seat falling to UKIP.

The University College London (UCL) report revealed European immigrants made a positive financial contribution of £4.4bn to the UK between 1995 and 2011.

Video: Report: Migrants Boost UK Economy

However, immigrants from outside the European Economic Area (EEA) made a negative contribution of £118bn.

Over the same period, UK-born workers made a negative contribution of £591bn.

The figures improved for more recent arrivals with EU migrants between 2001-11 making a positive contribution of £20bn, and those from outside Europe £5bn.

Professor Christian Dustmann, director of UCL's Centre for Research and Analysis of Migration (Cream) and co-author of the study, said: "A key concern in the public debate on migration is whether immigrants contribute their fair share to the tax and welfare systems.

"Our new analysis draws a positive picture of the overall fiscal contribution made by recent immigrant cohorts, particularly of immigrants arriving from the EU."

He added: "European immigrants, particularly, both from the new accession countries and the rest of the European Union, make the most substantial contributions.

"This is mainly down to their higher average labour market participation compared with natives and their lower receipt of welfare benefits."

Responding to the report, chairman of the MigrationWatch UK think tank Sir Andrew Green said: "This report confirms that immigration as a whole has cost up to £150bn in the last 17 years.

"As for recent European migrants, even on their own figures - which we dispute - their contribution to the exchequer amounts to less than £1 a week per head of our population."

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US Midterms: Republicans Take Over Senate

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Video: Republicans Take Control Of Senate

By Sky News US Team

The US Republicans have swept to power in both houses of Congress for the first time in eight years in midterm elections shaped by President Barack Obama's unpopularity.

Results continue to trickle in across the US, but the conservatives won seven seats from Democrats, one more than they needed to take control of the 100-seat Senate.

Tha takeover will limit Mr Obama's political influence and curb his legislative agenda in his last two years in office.

West Virginia, Arkansas, South Dakota, Montana, Colorado, North Carolina and Iowa all fell to the conservatives.

The Democrats are still battling to hold on to Senate seats in Virginia and Alaska, while Louisiana's race will go to a run-off next month.

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1. Gallery: Midterms: Election Day In America

   The Empire State Building in New York City turns red to mark the Republican triumph in the Senate midterm election races

Kentucky Republican Mitch McConnell will be the next leader of the US Senate as his party swept to power

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The conservatives cruised to control of the Senate, boosted their House of Representatives majority and chalked up a slew of gubernatorial victories, breaking political opponents' hearts

]]>

Elections judge Constance Rolon, 96, hands out "I Voted!" stickers in Denver, Colorado

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The Republicans also successfully defended Senate seats in Georgia, Kentucky and Kansas. Democrats could not win a single conservative seat.

Kentucky Republican Mitch McConnell, who cruised to re-election, will become the new leader of the Senate.

He told cheering supporters as he captured a sixth term: "It's time to go in a new direction! It's time to turn this country around!"

Outgoing Senate majority leader Harry Reid, a Democrat, said: "The message from voters is clear: They want us to work together."

Republicans, who already controlled the House of Representatives, were also on track to expand their majority in that chamber, too.

Video: Is Obama A Liability?

Overall on Tuesday, 36 of the 100 Senate seats, all 435 House districts and 36 of 50 governors' seats were up for grabs.

In the gubernatorial races, the Republicans ousted a Democrat in Mr Obama's home state of Illinois and won the liberal strongholds of Maryland and Massachusetts.

They also fended off a string of stiff challenges from Democrats.

Georgia's Nathan Deal defeated former President Jimmy Carter's grandson, potential 2016 presidential hopeful Scott Walker won a tight race in Wisconsin and Rick Scott was triumphant in Florida.

The few consolations for Democrats included wins in New Hampshire's Senate race and Pennsylvania's gubernatorial contest.

Video: Why Are Midterm Polls So Expensive?

Mr Obama, who was shunned by many Democrats on the campaign trail because of his low approval rating, called Democratic and Republican congressional leaders to the White House on Friday to discuss the new political landscape.

Exit polls showed most of the Americans voting on Tuesday were unhappy or even angry with the Obama administration. There was also criticism of Republican congressional leaders.

The conservative takeover means Mr Obama will spend his final two years as President contending with a Congress fully controlled by opponents who have been determined to block his policies.

He is also likely to face pressure to overhaul his White House team.

But even with control of the Senate, the Republicans do not have the 60-vote super-majority needed to pass major legislation.

Video: Midterms: The Hillary Factor

A difficult election had been expected for Mr Obama's allies: governing parties tend to lose seats in midterm votes and many Democrats were defending seats in states that lean Republican.

Congressional races alone cost almost $4bn (£2.5bn), an unprecedented sum for a non-presidential year election.

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We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.

Video: Republicans Take Control Of Senate

By Sky News US Team

The US Republicans have swept to power in both houses of Congress for the first time in eight years in midterm elections shaped by President Barack Obama's unpopularity.

Results continue to trickle in across the US, but the conservatives won seven seats from Democrats, one more than they needed to take control of the 100-seat Senate.

Tha takeover will limit Mr Obama's political influence and curb his legislative agenda in his last two years in office.

West Virginia, Arkansas, South Dakota, Montana, Colorado, North Carolina and Iowa all fell to the conservatives.

The Democrats are still battling to hold on to Senate seats in Virginia and Alaska, while Louisiana's race will go to a run-off next month.

1/11

1. Gallery: Midterms: Election Day In America

   The Empire State Building in New York City turns red to mark the Republican triumph in the Senate midterm election races

Kentucky Republican Mitch McConnell will be the next leader of the US Senate as his party swept to power

]]>

The conservatives cruised to control of the Senate, boosted their House of Representatives majority and chalked up a slew of gubernatorial victories, breaking political opponents' hearts

]]>

Elections judge Constance Rolon, 96, hands out "I Voted!" stickers in Denver, Colorado

]]>

The Republicans also successfully defended Senate seats in Georgia, Kentucky and Kansas. Democrats could not win a single conservative seat.

Kentucky Republican Mitch McConnell, who cruised to re-election, will become the new leader of the Senate.

He told cheering supporters as he captured a sixth term: "It's time to go in a new direction! It's time to turn this country around!"

Outgoing Senate majority leader Harry Reid, a Democrat, said: "The message from voters is clear: They want us to work together."

Republicans, who already controlled the House of Representatives, were also on track to expand their majority in that chamber, too.

Video: Is Obama A Liability?

Overall on Tuesday, 36 of the 100 Senate seats, all 435 House districts and 36 of 50 governors' seats were up for grabs.

In the gubernatorial races, the Republicans ousted a Democrat in Mr Obama's home state of Illinois and won the liberal strongholds of Maryland and Massachusetts.

They also fended off a string of stiff challenges from Democrats.

Georgia's Nathan Deal defeated former President Jimmy Carter's grandson, potential 2016 presidential hopeful Scott Walker won a tight race in Wisconsin and Rick Scott was triumphant in Florida.

The few consolations for Democrats included wins in New Hampshire's Senate race and Pennsylvania's gubernatorial contest.

Video: Why Are Midterm Polls So Expensive?

Mr Obama, who was shunned by many Democrats on the campaign trail because of his low approval rating, called Democratic and Republican congressional leaders to the White House on Friday to discuss the new political landscape.

Exit polls showed most of the Americans voting on Tuesday were unhappy or even angry with the Obama administration. There was also criticism of Republican congressional leaders.

The conservative takeover means Mr Obama will spend his final two years as President contending with a Congress fully controlled by opponents who have been determined to block his policies.

He is also likely to face pressure to overhaul his White House team.

But even with control of the Senate, the Republicans do not have the 60-vote super-majority needed to pass major legislation.

Video: Midterms: The Hillary Factor

A difficult election had been expected for Mr Obama's allies: governing parties tend to lose seats in midterm votes and many Democrats were defending seats in states that lean Republican.

Congressional races alone cost almost $4bn (£2.5bn), an unprecedented sum for a non-presidential year election.

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Baker Is Showing He's Not In Tory Pockets

Theresa May and Norman Baker were never going to get on.

There's a clash of both personality and politics, with a staunchly Conservative Home Secretary and a minister on the left of the Lib Dems.

The recent spat about drugs policy - with Mr Baker pushing for reform - gave a clear glimpse into the fractious relationship in the Home Office.

In his resignation letter, Mr Baker said it had been "particularly challenging" being the only Lib Dem in the department and he went even further when speaking to The Independent.

"There comes a point when you don't want to carry on walking through mud and you want to release yourself from that," he said.

Video: Baker Starts Mud-Slinging At May

"I just think it's a pity that Theresa May took the mindset that the Lib Dems had to be put up with, and we were almost a cuckoo in the nest rather than part of the Government."

Lib Dem sources have told me that Mr Baker simply wasn't enjoying his time at the Home Office and was becoming frustrated that he could not pursue the projects he was interested in.

He has been unhappy for a while, but Nick Clegg asked him to stay on until the controversial report into drug policy was published last week.

However, that may not be the full story.

With just six months to go until the next election, Lib Dem MPs will be watching their poll ratings with horror. With some surveys putting them behind the Green Party, some will be considering drastic action to try and cling on to their seats.

Video: 30 Oct: Baker Denies Row With May

Could shoring up support in his constituency be a key factor behind Norman Baker's resignation?

Probably. He has a majority of over 7,000 in Lewes, which is a healthy size but by no means unassailable.

Quitting his ministerial post gives him more time to concentrate on local issues and residents. It also allows him to neatly disassociate himself from the coalition - painting himself as independent, principled and not in the pockets of the Tories.

But Theresa May won't shed a tear over the Home Office split.

His depiction of her as a staunch Conservative running her department like a Tory fiefdom with no room for those pesky Lib Dems won't do her reputation any harm either.

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Lib Dem Minister Quits With Attack On May

Home Office minister Norman Baker has quit the Cabinet, launching an attack on his Conservative boss, Home Secretary Theresa May.

The Liberal Democrat crime prevention minister is stepping down after a year of internal battles within the Home Office with Mrs May.

Last week, he became embroiled in a fresh disagreement over drugs policy and accused the Tories of suppressing a report which backed his case for a review of the current law.

He told The Independent the experience of working at the department was like "walking through mud" as he found his plans thwarted by her and her advisers.

Mr Baker said: "They have looked upon it as a Conservative department in a Conservative government, whereas in my view it's a Coalition department in a Coalition government.

Mr Baker accused the Tories of suppressing a drugs report

"That mindset has framed things, which means I have had to work very much harder to get things done even where they are what the Home Secretary agrees with and where it has been helpful for the Government and the department.

"There comes a point when you don't want to carry on walking through mud and you want to release yourself from that."

Video: 30 Oct: Baker Denies Row With May

The Lib Dem MP also accused Mrs May of viewing her coalition colleagues as "a cuckoo in the nest rather than part of Government".

In his resignation letter to party leader Nick Clegg, he said: "I regret that in the Home Office, the goodwill to work collegiately to take forward rational evidence-based policy has been in somewhat short supply.

"I have concluded, therefore, that for the time being at least, my time is better spent out of ministerial office.

"You will of course continue to have my full support in the run-up to, and beyond, the next election which I anticipate is likely to produce another hung parliament."

In reply, Mr Clegg said: "Thank you for the brilliant job you have done as a minister over the past four and a half years, first at the Department of Transport and more recently at the Home Office.

"In both posts you have proved yourself as one of the most effective ministers in government: always determined to deliver a more liberal agenda for Britain."

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Virgin Galactic Descend System Deployed Early

An investigation into the fatal Virgin Galactic spaceship crash has found the function to help it descend was deployed early.

Christopher Hart, the head of the National Transportation Safety Board, said the craft's fuel tanks and engine had been recovered intact - indicating there was no explosion.

Mr Hart said: "Normal launch procedures are that after the release, the ignition of the rocket, and acceleration, the feathering devices are not to be moved.

Pilot Michael Alsbury, 39, was killed in Friday's spacecraft crash

"The lock/unlock lever is not to be moved into the unlock position until the acceleration is up to Mach 1.4. Instead, as I indicated, that occurred at approximately Mach 1.0."

Camera footage from inside the vehicle showed the lock/unlock lever was moved by one of the pilots.

Video: NTSB News Conference

But Mr Hart stressed he was not saying this had been the cause of the disaster, and was simply providing a statement of fact.

Nearly all the important parts of the vessel had been recovered and had been taken to a hangar for examination.

He told reporters the fuel tanks and engine showed no signs of "burn through" or of being breached.

SpaceShipTwo exploded over California's Mojave Desert during its 35th test flight shortly after being released at high altitude from its mothership WhiteKnightTwo.

Pilot Michael Alsbury, 39, from Tehachapi, California, was killed in Friday's crash.

Video: Virgin Crash A 'Massive Setback'

Fellow pilot, Peter Siebold, 43, was badly injured after ejecting from the craft.

Virgin Galactic had been aiming to become the first commercial "spaceline", by beginning tourist flights to the edge of space next year.

The company has defended its record after concerns were raised about the safety of the project.

In a statement it said: "At Virgin Galactic, we are dedicated to opening the space frontier, while keeping safety as our 'North Star'.

"This has guided every decision we have made over the past decade, and any suggestion to the contrary is categorically untrue."

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1. Gallery: Virgin Galactic Crash Wreckage

   Investigators examine the wreckage of the Virgin Galactic spacecraft which crashed in the Mojave Desert. They claim it could take a year to determine the cause of the accident

2. The US National Transportation Safety Board (NTSB) team is expected to spend the next week at the crash site in California

3. The ship broke up in mid-air during a test flight on Friday. One of the pilots was killed and the other injured

4. The team has already completed its first full day of the investigation

5. Officials say they are expected to trawl through "extensive data" - which is why the full investigation could take about 12 months or so

7. The craft's debris was spread over an area measuring five miles from end to end

10. Police secured the crash site in the Mojave Desert amid fears that some of the debris could be explosive

12. The spacecraft was on its first test flight for nine months when it crashed near the town of Bakersfield

Justin Bieber, Ashton Kutcher, Brad Pitt and Angelina Jolie are among those who are said to have already reserved seats and paid a deposit on the $250,000 (£156,000) ticket price for a minute-long suborbital flight on SpaceShipTwo, which could carry six passengers.

Sir Richard Branson said none of the 700 ticket holders had so far backed out.

The Virgin Group founder said one person had actually bought a ticket since the crash.

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Suitcase Murder: Briton Remanded In Custody

A British man charged with the murder of two women in Hong Kong has been remanded in custody.

Banker Rurik Jutting, 29, was arrested after the women's bodies were discovered at an apartment in Hong Kong's Wan Chai district.

During his appearance he wore black trousers and a black T-shirt. He was remanded in custody and will return to court on 10 November.

A policeman at the scene of the double murder in Hong Kong

Police placed him on a holding charge ahead of today's court appearance.

Officers arrived at the apartment early on Saturday after receiving a call from the suspect, who until recently worked for Bank of America Merrill Lynch.

Video: Victims' Friend Talks To Sky News

They discovered the body of a woman, aged between 25 and 30, lying naked in the living room with knife wounds to her neck and backside.

Police also found a small amount of cocaine in the flat.

Assistant Commander Wan Siu-hung told reporters: "We believe the death was caused by a sharp object which cut the throat of the deceased.

"This led to copious bleeding. When the police found her, she was lying in the living room. The room was messy."

Eight hours later, at about noon on Saturday, police widened the forensic examination of the apartment and made the second discovery.

The body of the second woman, named in a court document as Sumarti Ningsih, was found wrapped in a blanket inside a brown suitcase on a balcony at the apartment.

She too had wounds to the neck. Police say the victim died on 27 October.

Police sources have told local media they believe the women worked in the sex industry.

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1. Gallery: Suitcase Murder: Briton Appears In Hong Kong Court

   Rurik Jutting recently left his banking job. Pic: Facebook

2. Police have been searching the flat where the women's bodies were found

3. One of the bodies was found hiden in a suitcase on the balcony

4. Assistant Commander Wan Siu-hung said both victims had injuries to the neck

A police spokesman added: "From what we can see it was intentionally hidden because it was put in a travel suitcase."

Both of the women are believed to be from Indonesia. One has been named locally as 25-year-old Sumarti Ningsih.

Mr Jutting studied history and law at Cambridge University.

He had worked for Merrill Lynch from 2010 until only a couple of days ago, spending three years at their offices in London before moving to Hong Kong in July last year. Prior to that he worked at Barclays in London.

The neighbourhood of Wan Chai is effectively Hong Kong's red light district. A large number of women from southeast Asia spend time in the district's many bars and clubs.

A Foreign Office spokesman confirmed a British national had been arrested in Hong Kong, although did not specify the nature of the crime.

"We are in touch with the local police and stand ready to provide consular assistance," she said.

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Virgin Galactic Crash Probe Could Take A Year

Investigators examining the wreckage of the Virgin Galactic spacecraft which crashed in the Mojave Desert say it could take a year to determine the cause of the accident.

National Transportation Safety Board (NTSB) officials are expected to spend the next week at the crash site in California.

They will then carry out interviews and further evidence gathering before beginning an analysis of what caused Friday's crash, which killed one pilot and injured another.

NTSB acting chairman Christopher Hart says the probe may take a year

NTSB acting chairman Christopher Hart said the full investigation may take up to 12 months, adding that Virgin Galactic can continue to operate while the probe is under way.

"The on-scene part (of the investigation) I would estimate probably four to seven days, and then we go off-scene and continue the factual collection," he said.

Video: Virgin Crash A 'Massive Setback'

"The total time... will be probably about 12 months or so, but again, as I say, this does not stop the operator from operating."

Mr Hart said investigators will use evidence from several cameras located on the craft to determine why it broke apart over the desert.

"Because it was a test flight it was heavily documented in ways that we don't usually see with normal accidents," he said.

Sir Richard Branson has admitted the fatal Virgin Galactic crash is a "massive setback for commercial space travel", but says he hopes the programme will be back on track in six months.

The Virgin Group founder said: "It is a horrible day for Virgin Galactic, for commercial space travel - it's a massive setback.

Video: Space Ticket Holder Undeterred

"But we've got to pick ourselves up and see whether the problem is fixable, and hopefully move the programme forward.

"I'm hopeful we'll be able to overcome the problems."

Pilot Michael Alsbury, 39, was killed in the crash. Mr Alsbury, from Tehachapi, California, worked as a project engineer and test pilot.

The flight was his ninth onboard SpaceShipTwo.

His co-pilot, Peter Siebold, 43, was badly injured after parachuting to the ground.

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1. Gallery: Images Showing Wreckage Of SpaceshipTwo In The Mojave Desert

   SpaceShipTwo and its mother ship WhiteKnightTwo are pictured before the test flight. Pic: Virgin Galactic/Scaled Composites/Jason DiVenere

2. Part of the wreckage from the Virgin Galactic SpaceshipTwo lies in California's Mojave Desert after it crashed

3. Photographer Ken Brown said the craft was released from the plane that carries it to high altitude, ignited its rocket motor and then exploded

4. Two pilots were on board. California authorities said one died and the other was badly hurt

5. A witness said the space tourism craft exploded during a test flight over the desert

6. The aim of such flights was to assess SpaceShipTwo in preparation for suborbital trips to the edge of space about 62 miles above the Earth

7. Hundreds of people have already reserved seats and paid a deposit on the $250,000 (£156,000) ticket price for the flights. Pic: Virgin Galactic

8. After several delays, Sir Richard Branson's company had hoped to start taking passengers to the edge of space in 2015

9. But space expert Marco Caceres said: "You are not going to see any commercial space tourism flight next year or probably several years after that."

Scaled Composites has confirmed that Mr Siebold has begun to communicate with his family at the Antelope Valley Hospital, where he is being treated.

The tragedy occurred after SpaceShipTwo fired up its rocket following a high-altitude drop from its WhiteKnightTwo mothership.

Mr Alsbury's death is the project's fourth fatality after three people were killed in a 2007 explosion while working for Scaled Composites, the company that teamed up with Virgin Galactic to build SpaceShipTwo.

Virgin Galactic had been aiming to become the first commercial "spaceline", by beginning tourist flights to the edge of space next year.

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Injured Virgin Pilot 'Alert' After Fatal Crash

The co-pilot who was injured in the Virgin Galactic rocket crash is "alert and talking" to relatives and doctors, his employer has said.

Peter Siebold, 43, was one of two pilots in command of SpaceShipTwo when in crashed during a test flight over California's Mojave Desert on Friday.

He was badly injured after ejecting and parachuting to the ground when the craft suffered what Virgin Galactic called a "serious anomaly".

His employer Scaled Composites said Mr Siebold has begun to communicate with his family at the Antelope Valley Hospital, where he is being treated.

Pilot Michael Alsbury, 39, was killed in Friday's spacecraft crash

"He is alert and talking with his family and doctors," the company said in a statement.

"We remain focused on supporting the families of the two pilots and all of our employees, as well as the agencies investigating the accident.

Video: Branson Vows To Find Cause Of Crash

"We ask at this time that everyone please respect the privacy of the families."

The company also paid tribute to 39-year-old pilot Michael Alsbury, who was killed in the crash, describing him as a "respected and devoted colleague".

According to his biography on the company's website, Mr Alsbury, from Tehachapi, California, worked as a project engineer and test pilot.

The fatal flight was his ninth onboard SpaceShipTwo.

He served as co-pilot on the spacecraft's first rocket-powered test flight on April 29, 2013, and had logged more than 1,600 hours in Scaled Composites aircraft since joining the company 13 years ago.

Video: Virgin Crash A 'Massive Setback'

Mr Siebold has been identified as the director of flight operations at Scaled Composites. 

He is an aeronautical engineer, experimental test pilot, and flight test engineer with 17 years of flight experience.

He has spent 2,000 hours working in 35 different fixed wing aircraft and has been employed by the company since 1996.

Investigators say it may take up to 12 months to determine the cause of the accident.

Speaking publicly for the first time since the crash, Virgin Group founder Sir Richard Branson said the accident is a "massive setback for commercial space travel".

Video: On The Ground At Virgin Crash Site

But he hopes the programme will be back on track within six months. He added that to "push on blindly" with the project without knowing the cause of the crash would be an "insult" to Mr Alsbury.

The National Transportation Safety Board is currently investigating the cause of the accident.

Virgin Galactic had been aiming to become the first commercial "spaceline", by beginning tourist flights to the edge of space next year.

Customers will pay up to $250,000 (£156,000) for a short journey into zero gravity and a glimpse of the planet from the edge of space.

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