The Financial Times and City AM both report that Karnit Flug was yesterday named by Israel’s Prime Minister Benjamin Netanyahu and Finance Minister Yair Lapid as the new head of the Bank of Israel. The announcement ends four months of uncertainty during which two nominees turned down the chance to succeed Stanley Fischer, whose eight-year tenure was considered hugely successful. Flug, who was Fischer’s long-term deputy and had been acting head since Fischer stepped down at the end of June, becomes the first female head of the Bank of Israel.

The Guardian online says that during his cabinet meeting yesterday, Netanyahu continued to call on the international community to maintain the pressure of sanctions on Iran until Tehran dismantles its military nuclear capability. The article also says that Israeli newspapers have speculated on the content of Iran’s offer to the P5+1 forum during talks in Geneva last week.

The online edition of the Guardian also reports that a Hamas official has admitted that it was responsible for the construction of a huge tunnel which traversed underneath the Israel-Gaza border and was unearthed by the Israeli army last week. The official said that the tunnel was dug as part of a plan to release Hamas prisoners, presumably involving a deal following the intended kidnapping of an Israeli soldier or citizen.

The Financial Times includes a focus on Hezbollah’s largely unregulated but well-funded Mahdi school system. The article mentions that at a recent celebration of the Mahdi system, Hezbollah official Mohammad Raad said that the organisation had acquired missiles which can reach Israel’s southernmost city Eilat. Meanwhile, the Independent says that a fifth suspect, a Hezbollah supporter has been named in the investigation into the murder of former-Lebanese Prime Minister Rafik Hariri in 2005.

The online editions of the Independent and Guardian say that a suicide truck bomb killed at least thirty people in the Syrian town of Hama yesterday and was probably the work of the al-Qaeda affiliated al-Nusra Front. Both reports also say that the Arab League chief has announced that Geneva II talks between representatives of the Assad regime and the opposition Syrian National Coalition will take place on 23 and 24 November. Meanwhile, the Telegraph online reports that following the severe breakdown in Syria’s health infrastructure the World Health Organisation has reported an outbreak of polio in the north east of the country.

In Egypt, the Guardian online says that riot police yesterday clashed with supporters of ousted premier Mohammed Morsi at the Al-Azhar University in Cairo.

The appointment of Karnit Flug as Israel’s first female head of the Bank of Israel is the headline in Yediot Ahronot, Maariv, Haaretz, Makor Rishon and Israel Hayom. In particular, Maariv highlights Finance Minister Lapid’s admission that the prolonged appointments process was “outrageous.” In Yediot Ahronot, economics commentator Sever Plocker predicts that Flug will make a positive mark on the job, while Sima Kadmon praises Prime Minister Netanyahu for showing that he is not afraid to change his mind, having previously overlooked Flug’s candidacy. However, also in Yediot Ahronot, Nahum Barnea suggests that Netanyahu caved in to pressure.

Another major story, covered prominently in Yediot Ahronot, Maariv, Makor Rishon and Israel Hayom, is a series of four minor earthquakes which struck northern Israel over the last four days. Makor Rishon and Maariv in particular highlight warnings that Israel could be hit by a strong earthquake.

Israel Radio news covers the admission by Hamas that it was responsible for digging the lengthy tunnel uncovered last week, which reached into Israel from the Gaza Strip, reiterating the terror group’s determination to abduct Israeli soldiers.