MIDDLE EAST - Islamic State fighters seized control of Iraq's biggest dam, an oilfield and three more towns on Sunday after inflicting their first major defeat on Kurdish forces since sweeping through the region in June. Capture of the Mosul Dam after an offensive of barely 24 hours could give the Sunni militants the ability to flood major Iraqi cities, sharply raising the stakes in their bid to topple Prime Minister Nuri al-Maliki's Shi'ite-led government.

IRAQ - Militants could flood some of Iraq's major cities by blowing up the country's biggest dam, it was feared last night. Fighters from the Islamic State jihadist group seized control of the Mosul Dam yesterday after an offensive lasting barely 24 hours. Its capture could prove a turning point in the growing civil war in the country. The flood threat could give the Sunni fighters a key bargaining point in their bid to topple the Shi'ite-led government of prime minister Nuri al-Maliki.

USA - For the second consecutive day, residents in an area of north-western Ohio that included the state's fourth-largest city, Toledo, are being told that their tap water is not safe for cooking or drinking. The governor has declared a state of emergency and deployed the National Guard to help get water and food to the region. As of Sunday morning, there were no reports of anyone being sickened by tap water. Toxins in the water have been linked to an algae bloom in Lake Erie, which is a primary source of drinking water for many Ohio communities. In recent decades, Lake Erie has seen large blooms of blue-green algae develop in its western basin. In 2011, the algae covered a record 1,930 square miles of Lake Erie – nearly 20 percent of the entire surface of the lake. The blooms grow from an excess of phosphorus, which is a key ingredient in many fertilizers. Lake Erie is particularly prone to the blooms because rivers carry runoff from farmland into the shallow western basin of the lake.

Over 360 people were killed and 1,900 injured after an earthquake measuring from 6.1 to 6.5, according to different estimates, toppled buildings in Chinese Yunnan province. The majority of the dead were from Ludian county, which Chinese state television said was at the epicenter of the quake. At least 1,300 people also from the county have been injured and 181 remain missing, Yunnan's information bureau reported.

ISRAEL - The government of Great Britain issued the Balfour Declaration 95 years ago. The document in effect served as the birth certificate for a Jewish national home. British Foreign Secretary Arthur Balfour's declaration was in the form of a letter to a leader of the British Jewish community. It stated: “His Majesty's government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavours to facilitate the achievement of this object, it being clearly understood that nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status enjoyed by Jews in any other country.” The British Army had just captured Be’er Sheva after months of trying to break through the Ottoman army’s Gaza-Be’er Sheva defense line. The British goal was to push north and capture Jerusalem by Christmas. The Mandate also mentioned "the historical connections of the Jewish people with Palestine." It was ratified by 50 nations.

MIDDLE EAST - Islamic State Sunni insurgents have captured the northern Iraqi town of Zumar and a nearby oil field after a battle with Kurdish forces who had control of the area, witnesses said on Sunday. Islamic State, which staged a lightning advance through northern Iraq in June, has warned residents of nearby villages along the border with Syria to leave their homes, suggesting it was planning an assault, witnesses said. The militant group, which controls large swathes of northern and western Iraq, has threatened to march on Baghdad but has stalled its campaign just north of the town of Samarra, 100 km (62 miles) north of Baghdad. But it has been trying to consolidate its gains, setting its sights on strategic towns near oilfields, as well as the border with Syria so that its fighters can move easily back and forth and bring in supplies.

UK - It is "only a matter of time" before a catastrophic eruption on the surface of the sun hurtles towards the planet with devastating consequences. The Earth could be the target of an explosion equivalent to "10 billion Hiroshima bombs exploding at the same time". It has emerged crisis meetings have been held to discuss how to limit the damage of solar superstorms which present a "long-lasting" threat to all forms of life.

USA - On July 23, Dr Jim Willie, a well respected statistician and founder of the Hat Trick Newsletter, was a guest on the USA Watchdog weekly podcast. During the 30 minute interview with host Greg Hunter, Dr Willie provided an astonishing announcement from a high level source within the London banking system that Germany was on the cusp of severing its long-standing obligations to the US, and was ready to leave not only the European Union, but also the Euro currency and NATO to then join up with Russia, China, and the BRICS coalition to strengthen the financial and economic power of the emerging global system coming out of Eurasia and the East.

EUROPE - European Ministers in Germany, France and Italy have joined forces hoping to boost economic growth in the EU, mulling new financing instruments to realise their goals. Germany, France and Italy have agreed on closer cooperation in the areas of energy, transport and digital infrastructure. At a meeting in Berlin on Wednesday (July 30), German Minister of State for Europe Michael Roth, French State Secretary of Europe Harlem Désir and Italian State Secretary of European Affairs, Sandro Gozi agreed on the shared goals. In an explanatory paper, the three European ministers emphasised the importance of bridging investment gaps. "It is necessary that we fully exploit existing instruments like the EU structural funds, loans from the European Investment Bank and project bonds," said Roth. But it is also important to be ready to test new, suitable instruments – regardless whether public or private, he added.

RUSSIA - So much for the "Russia is becoming increasingly isolated" meme that the West would like many to believe. As Russia continues to sign de-dollarization deals and trade agreements with its BRICS allies while pushing ahead with retaliatory actions against the US and Europe, it appears the 'sanctioned' friends of Putin are taking matters into their own hands. Billionaire oligarch Gennady Timchenko, among the first to be hit by travel bans and asset freezes by the US, has decided to tear up his Visa and Mastercard, shifting all his credit cards to China's UnionPay, noting that "in some ways it is more secure than Visa - at least the Americans can't reach it." While Obama hopes that pressure on the oligarchs will create some civil strife for Putin, we worry that it will merely corner him into survival mode with significant repercussions for the west.

CAMEROON, WEST AFRICA - A cholera epidemic in northern Cameroon has killed at least 65 people and probably infected about 1,300 people in two months, as international attention has been diverted to fighting Ebola in West Africa, health experts said on Saturday. They said the insurgency by Islamist sect Boko Haram was also hampering efforts to control the outbreak.

USA - The Fed's substitution of debt for income has only doomed the nation to a deeper, more painful realignment of real income and expenses. The economic "recovery" has been based on a simple premise: debt can be substituted for income with no ill effects. As real household incomes have declined, the legitimate foundation of additional spending - more income - has eroded for the bottom 90%.

ISRAEL - Israel and Hamas have begun an unconditional 72-hour humanitarian ceasefire in Gaza. The truce came into effect at 08:00 (05:00 GMT) on Friday. Talks on a more permanent truce are to start in Cairo. Israel says it will continue to destroy tunnels built by Hamas into Israel.

ISRAEL - Hamas has fired yet another salvo of rockets on Israel Friday, as sirens sounded near the Kerem Shalom crossing shortly after 10:00 am. No injuries or damage have yet been reported. The rocket fire surfaces after a ceasefire was announced just over two hours ago. Earlier, Hamas fired a salvo of rockets at the south just before 7:00 am Friday; two rockets hit open areas in S'dot HaNegev and in the Merhavim area. There are no injuries or damage. Additional rockets were fired at Ashkelon and Ashdod, just after 7:30 am. Two rockets were intercepted by the Iron Dome missile defense system over Ashdod; there are no reports of injuries or damage. Yet another salvo was fired, just five minutes before 8:00 am, at Gaza Belt communities. The barrages were fired just minutes before a 72-hour ceasefire was to take effect, in a UN and US-brokered deal slated to begin 8:00 am Friday.

USA/ISRAEL - Day after day, Israel is facing not only an onslaught of terrorism but an evil double-standard. Israeli citizens have absorbed more than 2,800 rocket attacks and numerous terror squads who have come from the Gaza Strip to murder innocent men, women and children. Yet rather than receive encouragement from world democracies who see a fellow democracy under attack, much of the world is turning against Israel. Anti-Semitic attacks are skyrocketing, especially in Europe. Israel is being condemned at the UN, blasted by world leaders, and even pressured by our President [Obama] and Secretary of State [Kerry] to immediately stop defending themselves and accept a premature ceasefire.