Palestinian Authority has ruled out peace negotiations with Israel till its complete freeze of settlement activities in the occupied territories. This has been stated by a spokesman of the Palestinian Authority in Ramallah . His comments came after Prime Minister Benjamin Netanyahu said that Israel would continue building in east Jerusalem despite a growing diplomatic crisis with the United States.<br/><br/>Meanwhile, EU foreign policy Chief Catherine Ashton has said that Israel's decision to build new settler homes in east Baitul Maqdas endangers indirect talks between Israel and the Palestinians. He said this during a visit to Cairo where she addressed members of the Arab League.<br/><br/>The US has said it is awaiting a formal response from Israel amid a row over its decision to build 1,600 new homes in occupied East Jerusalem.<br/>