Europe
EU closer to banking union with new deal
Finance ministers at the European Union (EU) have reached a landmark deal that will see the European Central Bank (ECB) become the region’s top banking supervisor. The deal means around 200 of Europe’s biggest banks will be directly accountable to the ECB, giving EU leaders an increased confidence that they are taking steps to control the debt crisis. The deal is the first step towards a banking union that aims to implement risk management rather than crisis management, and will see debts fall onto the ECB rather than governments’ books. Significantly, France’s financial industry will be most affected, with Germany less so due to its fragmented banking sector. Countries outside the Eurozone will be given the option to opt-in.
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Russian official: “Unfortunately” al-Assad may loose civil war
The Russian Deputy Foreign Minister has said that rebel forces in Syria may defeat the al-Assad regime as the government is “loosing more and more control and territory”. Mikhail Bogdanov said in a statement that such an outcome would be ‘unfortunate’. Russia has been criticised for its relationship with Syria; earlier this year they used their veto at the UN Security Council to block sanctions and have been caught by the UK and Turkey exporting military goods to the Syrian Government. The official also expressed potential plans to facilitate an evacuation for Russian citizens in the region.
North America
U.S.: Federal Reserve links interest rate to employment
The U.S. Federal Reserve (FR) has announced a new fiscal stimulus, stating it will keep interest rates at near zero until unemployment falls below 6.5%. The unorthodox move alters previous motives that were driven by date not data. The central bank will continue to buy government bonds and mortgage-backed securities to stimulate economic growth. In a statement, the FR said the package would result in more investment into the economy adding, “The committee remains concerned that, without sufficient policy accommodation, economic growth might not be strong enough to generate sustained improvement in labour market conditions.”
Asia
Murder charge for ex-Thailand Prime Minister
An investigation into the death of a taxi driver has led to the former Prime Minister (PM) of Thailand being charged with murder. Government soldiers reportedly shot the taxi driver in 2010, during a spat of political violence over the legitimacy of PM Abhisit Vejjajiva’s government. Prosecutors state that Mr. Vejjajiva gave an order for government soldiers to use live ammunition on protestors in Bangkok. He denies the charge, arguing that it is politically motivated.
Latin America
Woman attempts breast-implant cocaine smuggle
A Panamanian woman has been arrested in Spain after cocaine was found in fake breast implants. The 20 year old was stopped by the Spanish border agency in Barcelona, after getting off a flight from Colombia. Police became suspicious when they noticed gauze under her breasts, where she was still bleeding. She was taken to hospital where two plastic bags were removed, containing 1.4kg of cocaine with a street value of 60,000 Euros. The agency say 17,000 people were arrested at the border last year, with South American countries being the highest risk for cocaine imports.
Africa
South Africa’s ANC leadership challenge
President Jacob Zuma of South Africa will face a leadership challenge by the deputy leader of the African National Congress (ANC), Kgalema Motlanthe. It comes just two years ahead of the next general election, where the ANC is expected to win by an overwhelming margin. The leadership nominations will happen at its conference, beginning this Sunday. It is likely Mr. Zuma will remain the leader, as Mr. Motlanthe’s spokesman said he intends to stay deputy Prime Minister if his bid for leadership is unsuccessful.
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