daniel griffiths has more. >> the attack happened in broad daylight in this shopping center. shocked onlookers watched as the police carry out the gruesome task of removing the body. according to eyewitnesses, the man is reported to have walked into the shop, seized a knife, and decapitated the 62-year-old woman. this local counselor said there was no obvious motive for the attack. he says after the incident, the man went outside where he was wrestled to the ground and arrested. the suspect is thought to be a homeless bulgarian an investigation is now under way into a killing that stunned both residents and holiday makers on this popular tourist island. daniel griffiths, "bbc news." >> the british actress sienna miller has become the first celebrity to settle a claim for damages against the world of the news newspaper since it admitted phone hacking. she'll accept 100,000 pounds in compensation after the tabloid admitted liability and agreed to hand over all the information it had gathered on her, all by listening to her phone messages. our correspondent daniel berger was in