Europe
Barclays CEO Bob Diamond resigns
The boss of Barclays plc, Bob Diamond, has resigned from the bank with immediate effect less than a week after Barclays was fined for trying to manipulate inter-bank lending rates. He becomes the highest-profile casualty of the scandal that has involved more than a dozen major banks across the world. Barclays chairman Marcus Agius announced his resignation yesterday – declaring as he did so “the buck stops with me” – but will take over management of the bank until a replacement is found. British Chancellor George Osborne said “it is the right decision for the country” because the UK needed a strong Barclays able to lend and drive economic recovery, not mired in scandal. Mr Diamond had sent a long letter to staff yesterday declaring his resolve to continue, but decided to quit later in the day after the Government announced a parliamentary inquiry into the scandal.
North America
GlaxoSmithKline in $3bn fraud settlement
Pharmaceuticals giant GlaxoSmithKline (GSK) is to pay $3 billion in the largest healthcare fraud settlement in American history. GSK is accused of promoting two of its drugs for unapproved (“off-label”) uses and of failing to report safety data about a diabetes drug to the Food and Drug Administration (FDA). It will plead guilty to both charges and pay to settle, with the sum to cover criminal fines in addition to civil settlements with federal and various state governments. Andrew Witty, GSK’s chief executive, said “we have learnt from the mistakes”.
Latin America
Mercosur trade bloc to welcome Venezuela and suspend Paraguay
At a presidential summit on Friday it was decided that the South American Mercosur trade bloc, dominated by regional powerhouses Brazil and Argentina, will make Venezuela a full member next month. Mercosur’s left-leaning leaders also agreed to extendParaguay’s suspension over the impeachment of President Fernando Lugo until democracy is restored through fresh elections, currently due in April 2013.
Asia and Russia
Protests stop Chinese factory construction
Construction of a copper alloy plant inChina’sSichuanprovince has been halted following violent protests by locals. Officials said large crowds of residents had gathered in Shifang city on Sunday and Monday to protest against the plant on environmental grounds. Bottles were thrown and cars damaged in clashes that injured both police and protesters, prompting officials to announce they will now consult residents on the project. A statement on the incident, made online, said the Government would not proceed with the project “until the majority of people support it.”
Africa and Middle East
Many killed in bombings across Iraq
At least 25 people are dead and 40 have been wounded in a bombing at a market in the Iraqi city of Diwaniya, with dozens more killed and wounded in bombings in other cities across the country. Such attacks have increased in recent weeks, with June being the most violent month in Iraq since American forces withdrew in December. Shias are thought to be the target, with the Diwaniya bomb coming near a Shia mosque and blasts in Karbala aimed at Shia pilgrims gathering ahead of a religious ceremony on Friday.
Assad “regrets” shooting down Turkish jet
In an interview with Turkey’s Cumhuriyet newspaper, Syrian President Bashar al-Assad has said he regrets “100 percent” that a Turkish jet was shot down after straying into Syrian airspace. President al-Assad argued that the plane had been flying in an area previously used by the Israeli air force. The action prompted condemnation from Turkish Prime Minister Recep Tayyip Erdogan, who labelled neighbouring Syria a “clear and present threat”. Turkey has reinforced border areas with rocket launchers and anti-aircraft guns.
Nigeria agrees $4.5bn oil refining deal
Nigeria has signed a deal worth $4.5 billion with US-based Vulcan petroleum to build six oil refineries in the country. The deal could boost refining capacity in Nigeria by 180,000 barrels a day, with two of the new refineries due for completion before the end of the year. The deal would greatly reduceNigeria’s reliance on expensive fuel imports – despite beingAfrica’s biggest oil producer, its refineries can only refine a fraction of its crude oil output into fuel. Nigeria’s Trade and Investment Minister Olusegun Aganga said the deal represented “the beginning of changing our old paradigm of exporting just raw materials and exporting jobs to Western countries”.
Australasia
Indonesia and Australia to cooperate on people smuggling
Indonesia and Australia have announced they will cooperate further on the issue of people smuggling at a meeting in Darwin between Australian Prime Minister Julia Gillard and Indonesian President Susilo Bambang Yudhoyono. Cooperation on improving extradition arrangements and joint reaction to incidents involving asylum seeker boats were announced. The meeting follows the sinking of two boats carrying asylum seekers last month, and will also cover trade and regional security.
About the Author
