World News Update: What you need to know

New Zealand Prime Minister John Key says he believes people smugglers are despicable, but won't condemn paying them.

ELSEWHERE:

DANNEMORA, New York - Two convicted murderers who used power tools to cut their way out of a prison near the Canadian border could be nearby or "in Mexico by now," New York Governor Andrew Cuomo says.

WASHINGTON - The campaign logo is ready, so is the big speech, and his message is taking shape: Jeb Bush is about to join the crowded Republican field running for president in 2016.

TORONTO - A Canadian freelance journalist who was kidnapped in Somalia with an Australian photojournalist has spoken for the first time since her alleged kidnapper's arrest.

BRUSSELS - Last-ditch talks between Greece and its EU-IMF creditors have ended with no deal, setting the countdown towards a disastrous default by Athens with the threat of a Greek exit from the euro closer than ever.

VIENNA - An Austrian brothel is offering a summer special that competitors will find hard to match - free sex. Its owner says it's his way of protesting a tax squeeze.

ROME - Italy says it will ask the EU to set up refugee processing camps in Libya, and has threatened to 'hurt' Europe if it turns a deaf ear to the crisis on its shores.

SANAA - A delegation of Yemeni rebels have headed for UN-sponsored peace talks in Geneva, as their forces gain ground near the border with Saudi Arabia.

AKAKALE, Turkey - Thousands of Syrian refugees have poured into Turkey to escape a battle between Kurds and Islamic State (IS) jihadists for the Syrian town of Tal Abyad.