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Regional rivals Saudi Arabia and Iran traded accusations Tuesday over the escalating conflict in Yemen, which the UN rights chief warned was on the brink of "total collapse". The Huthi rebels and their ally, former president Ali Abdullah Saleh, "decided with the support of Iran to destabilise Yemen," Saudi Foreign Minister Prince Saud al-Faisal said. Tehran hit back, accusing Saudi Arabia of putting the entire Middle East in jeopardy. "We believe that the Saudi military attack against Yemen is a strategic mistake," he told reporters in Kuwait, calling for the air campaign to "stop immediately".
The threat of deflation in the eurozone remains a global concern, with fears that a huge bond-buying spree by the European Central Bank came too late to fight off the negative effects of falling prices. "In fact, it may not be long before the markets start seriously questioning whether the ECB will continue to fully enact its Quantitative Easing programme all the way through to September 2016," he said. "The latest data on eurozone inflation and unemployment do little to diminish the danger of a prolonged period of deflation in the currency union," said Jonathan Loynes, chief economist at Capital Economics. In January, the ECB set out its huge bond-buying programme, an audacious and controversial scheme to ward off deflation and stimulate growth in the eurozone, which expanded a weak 0.9 percent in 2014.