Princess Diana leaked information about the Prince of Wales to "an ally" in the press in order to "take on" her estranged husband, former News of the World reporter Clive Goodman told the phone hacking trial.
Rebekah Brooks has agreed that she offered Max Clifford £200,000 to provide stories for The Sun, as part of a confidentiality deal.
The court has also been told that News international agreed to pay legal costs for convicted hacker and private investigator Glenn Muclcaire to prevent him from revealing names involved in intercepting voicemails, so called "disclosure".
She told the court that she had inherited the policy of protecting the finances and reputation of the newspaper group by reaching confidential agreements. She told the jury that News International had no idea what Mr Mulcaire might say and what names might be revealed as a result.
She said that all the work she was undertaking as CEO of News International to limit the damage that could be done by the civil claims related to the hacking carried out during 2005 and 2006.
Was there any suggestion that hacking had ever happened during her editorship of News of the World? "none what so ever" replied Mrs Brooks.
The ex-News of the World chief texted former PM Tony Blair saying she was 'feeling properly terrified' the day before the police interview.
In contrast to yesterday's cool performance, the former editor broke down whilst giving evidence in her phone-hacking trial.
Tony Blair advised Rebekah Brooks how to shield James Murdoch from the fallout of the phone-hacking scandal, the Old Bailey heard today.