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Amazon's ebook milestone: digital sales outstrip hardbacks for first time in US
Amazon US says it has sold 143 digital books for every 100 hardbacks in the last three months
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Culture department braces itself for redundancies of up to 50%
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David Cameron tells Barack Obama he will release Lockerbie files
PM resists inquiry into release of Abdelbaset al-Megrahi as president demands all facts should come out
Front page
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Mercury prize shortlist sees return of banjos but barely a beard in sight
Shortlist for music prize reflects genre's resurgence but few surprise nominations as judges opt to play safe
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Mercury prize 2010: a heavyweight lineup avoids controversy
Top stories p3
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Gary McKinnon campaigners praise PM for raising hacker's case with Obama
Cameron says he hopes 'a way through' can be found over fate of McKinnon, who faces extradition to US
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BP oil spill cleanup threatened by tropical storms
A storm in Gulf of Mexico could massively disrupt effort to permanently stop flow of more oil
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Lockerbie bomber's release has strengthened ties with UK, says Libya
Minister says Tripoli welcomed Megrahi decision and claims David Cameron's 'mistake' comment was due to US pressure
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Cameron orders cabinet secretary to go back over Lockerbie bomber papers
PM responds to US pressure – but rejects congressional calls for a formal inquiry into Abdelbaset al-Megrahi's release
Top stories p4
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Art for Barack, candles for Michelle: the special relationship in official gifts
David Cameron present gifts to the Obamas – and reveals a very different side from previous prime minister
Top stories p5
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British soldiers killed by renegade Afghan return home
Crowds line the streets of Wootton Bassett, Wiltshire, as coffins of the four soldiers are carried through the town
UK news p6
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Judge leading torture inquiry has conflict of interest, legal charity says
Reprieve says Sir Peter Gibson cannot fairly investigate security services he used to oversee but No 10 defends choice
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Former MI5 chief delivers damning verdict on Iraq invasion
Lady Eliza Manningham-Buller tells Chilcot that invasion increased terrorist threat and radicalised young British Muslims
UK news p7
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Beatles for sale – well their Abbey Road piano anyway
A battered upright from the famous north London studio goes on sale next month, expected to fetch around £150,000
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Food Standards Agency loses say on nation's diet
Agency will continue to exist but will focus primarily on food safety policy and enforcement, says health secretary -
Teenagers get less help from social services due to lack of resources
Study into protection of maltreated teens says there is urgent need for shift in approach to ensure they are kept safe -
British writer freed from Singapore jail
Alan Shadrake, 75, released on bail after book about country's death penalty led to defamation and contempt of court charges
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Veteran radio presenter and music journalist Robert Sandall dies
BBC Radio 3 broadcaster, renowned for his extensive music knowledge, had been suffering from cancer
UK news p8
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'Tome raider' jailed again for stealing valuable books
William Jacques sent to prison for three-and-a-half years for thefts worth £40,000 from Royal Horticultural Society library
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Raoul Moat: Police approach to gunman praised
Attempt to catch gunman alive with stun guns 'defines British style of policing', says leader of police chiefs
UK news p9
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Boris Johnson pressed for full details of the appointment of his alleged lover
London mayor under pressure over appointment of Helen Macintyre as one of two unpaid fundraising champions for 2012 Olympics
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Family of Briton killed by Israeli soldier demand meeting with ministers
Tom Hurndall's parents condemn 'weak response' of British government to soldier's early release for Gaza shooting
UK news p10
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Olympic exhibition opens at the National Portrait Gallery
Series of 100 photographs aims to show those involved in the 2012 bid in ways they haven't been seen before
UK news p11
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Conservatives accused of U-turn on 'death tax' to care for elderly
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Parliament Square protesters evicted
Barrier of green plastic reinforced by six-foot metal fence now prevents protesters from reclaiming area
UK news p12
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Sustainability watchdog will be axed to meet public sector spending cuts
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Defence bill 'unaffordable', warns Liam Fox
Speech by defence secretary prepares contractors and military for shift in spending priorities
UK news p13
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Zimbabwe aims to circumcise 80% of young men in drive against HIV
'Conveyor belt' operations on 1.2m males could help avert 40% of infections, International Aids Conference is told
UK news p14
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Plan to begin Afghan security handover this year dropped
• Petraeus not convinced by early transition of powers
• Kabul conference agrees to complete handover by 2014 -
Hillary Clinton vows to defend rights of Afghan women
US secretary of state tells foreign ministers meeting in Kabul women 'will not be sacrificed' in any peace deal with the Taliban
International p15
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Brazil considers bulletproofing schools after boy is shot
Teachers call for more protection in drug-gang areas after stray bullet hits student in the heart during maths lesson
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Oakland ready to approve four marijuana factories
Mass production planned for cash-strapped Californian city as small growers complain about 'Mcdonalds-isation'
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Parasailing donkey stunt prompts animal cruelty inquiry
Tour operator towed creature by boat and forced it to glide 30 metres above the surf on southern Russian beach
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Barack Obama sends 1,200 National Guardsmen to seal Mexican border
Attempt to stop illegal immigrants and drugs comes as critics warn Arizona law will lead to racial profiling
International p16
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Air France flight attendant charged over 'mile-high' thefts
Suspect allegedly stole cash and credit cards from business class passengers during at least 26 flights
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Ex-North Korea spy to help solve Japan's abduction mystery
Kim Hyon-hui may have information on Japanese nationals kidnapped by North Korean spies during the cold war
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States sue federal government over Asian carp threat to Great Lakes
• Lawsuit seeks barrier to block exotic fish on Little Calumet river
• Move to protect $7bn fisheries from invasive species -
Helsinki data centre to heat homes
International p17
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Masterchef puts Abbott and Gillard in their place in Australian TV schedules
Politicians pushed out of prime time as election debate clashes with cookery contest final
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French footballers formally accused of soliciting underage prostitute
Franck Ribéry and Karim Benzema, both of whom deny any wrongdoing, face up to three years in prison if convicted
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Silvio Berlusconi waters down controversial wiretaps bill
Sliding approval ratings and criticism from Italian prime minister's own allies led to concession
International p20
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Mongolia: How the winter of 'white death' devastated nomads' way of life
Herders leave the steppe after losing a fifth of their livestock. Now foreign firms are to exploit Mongolia's vast resources
International p21
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Vince Cable unveils three-pronged economic growth strategy
Government wants private sector to contribute four-fifths of £1 trillion infrastructure spending needed over next 20 years
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Double dip fears as bank loans dry up
George Osborne and Vince Cable anxious that rationing of lending to small businesses could reverse recovery from recession but banks claim there is no demand for credit
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Budget risks return to recession, warns Treasury select committee
Financial p22
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Goldman Sachs reveals plunging Wall Street profits
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Cable & Wireless blames coalition cuts for profit warning
Financial p23
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Ocado forced to slash float price
Directors of online grocery company cut price to 180-200p from 200p-275p as they struggle to find investors
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Apple posts highest ever quarterly earnings after success for Mac and iPad
Steve Jobs says tech firm had enjoyed "phenomenal quarter" after revenues rise 88%, with net profit up 78% at $3.25bn
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William Hill finds World Cup glory
William Hill says World Cup match upsets proved a winner for bookies – but City forecasters were left sick as a parrot
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Sir Alan Budd defends his reliance on Treasury staff
Alan Budd argues without the expertise and knowledge of senior civil servants it would be impossible to produce sophisticated forecasts
Financial p24
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BSkyB deal for Virgin Media channels goes to OFT
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British Airways cabin crew reject pay offer
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Volcanic ash disruption hits Ryanair profits
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Royal Mail workers warned against strike
Minister tells Royal Mail workers opposing privatisation would be 'self-defeating' – and there will be no pension bailout without it
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Poor families hit by hidden budget tax credit changes, TUC warns
Technical changes introduced by George Osborne mean half a million low-income families could be £1,000 each worse off, unions group says
Financial p25
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There's a good idea in Cameron's 'big society' screaming to get out
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Diary
Hugh Muir: When it comes to Gaza, the wise and good Lord Trimble will speak. But will anybody listen?
Comment & debate p27
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Sarah Palin: getting the Humpty
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Taliban put to the test
Comment & debate p28
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Ignore this howl of protest – the police are ripe for cuts
Comment & debate p29
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David Cameron in Washington: Useful not special
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Country diary: Wenlock Edge
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In praise of … the census
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Corrections and clarifications
University of Reading | Socratis Girolis | Franz Kafka -
Spending cuts: No way to run an economy
Editorials & reply p30
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Big issues for Cameron's big society
Letters: It is also increasingly likely that outsourcing will squeeze out community and voluntary groups from playing a greater role in the delivery of public services -
Case for treatment
Letters: We analysed the claim and found that only 2% of people desperately seeking help actually became drug free -
Don't let the phoney melanoma scare keep you out of the sun
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Labour sold short
Letters: The New Labour leaders can't wait / To publish their memoirs of hate -
GPs are the right people to commission health services
Letters: This will also ensure that those who are less able to voice their health needs will have an advocate in their GP -
Speculation does raise food prices
Letters: The short-term spikes witnessed over recent years can only be explained by predatory speculation
Editorials & reply p31
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Margaret Houghton obituary
Other lives: Our mother, who has died of cancer aged 73, was a music teacher at Grey Coat school, Westminster, the Perse girls' school, Cambridge, and Homerton College, Cambridge, as well as being the musical director of Haslingfield choir and orchestra, which she founded in 1971.
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Bernie Andrews obituary
Radio producer who helped music's biggest names record their first BBC sessions
Obituaries p32
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Vonetta McGee obituary
Actor famous for her roles in blaxploitation films of the 1970s
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Appreciation: Sir Charles Mackerras
David Nice writes: A year ago, I phoned to speak to Sir Charles Mackerras (obituary, 16 July) and Lady Mackerras told me candidly that he was receiving treatment for myeloma. So I prepared for the worst; and yet, what a year of vintage Mackerras performances we've had.
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Geoffrey Dutton obituary
Biomedical researcher and wide-ranging author and poet
Obituaries p33
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Spur of the Moment
Royal Court, London
Written when only 17, Anya Reiss's debut play about the dysfunctional middle classes is part of the Court's commitment to youth, writes Michael Billington -
Royal String Quartet
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The Bolshoi Ballet: Spartacus
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The Homecoming/The Prodigal Son
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Cardew's Treatise