:00:03. > :00:06.He has said, however, that they will be waiting for a definitive
:00:06. > :00:16.results. The latest financial news committee
:00:16. > :00:22.
:00:22. > :00:29.it is away. -- Sally. Welcome to World Business
:00:29. > :00:33.Report. London's interest-rate fixing scandal claims its first
:00:33. > :00:38.scalp, but will it be the last? Greece faces a key audit by
:00:38. > :00:46.international lenders. There are speculations it will ask for
:00:46. > :00:50.another two years to fulfil the conditions of its bailout.
:00:50. > :00:55.In just over one of our's time, the banking giant Barclays will
:00:55. > :01:00.announce the resignation of its chairman. The BBC understands he
:01:00. > :01:03.made the decision to go on Saturday night, citing the devastating blow
:01:03. > :01:09.to the bank's reputation from the revelations it had tried to fix
:01:09. > :01:13.interest rates. The rate fixing scandal has sent
:01:13. > :01:20.shock waves through the industry. It has now claimed its first high-
:01:20. > :01:25.profile victim. The chairman of Barclays is resigning. The fixing
:01:25. > :01:33.of interbank lending rate has already cost the bank �290 million
:01:33. > :01:38.in fines. Until now, those are -- those who are at the top of the
:01:38. > :01:43.bank had refused to quit. This really goes to the heart of the
:01:43. > :01:46.British economy and the heart of the city of London. I hope the
:01:46. > :01:52.authorities, shareholders and regulators really react
:01:52. > :01:57.aggressively and fast in the next few days. Barclays is one of more
:01:57. > :02:00.than 20 banks currently under investigation. Rival RBS sacked
:02:00. > :02:10.four of its traders at the start of the Year, a move designed to prove
:02:10. > :02:18.that it was, and is, in control of the crisis. On Sunday, the head of
:02:18. > :02:22.the city watchdog made a comment. Further steps were made to enable
:02:22. > :02:25.us to bring criminal charges, but they did not cover the libel market.
:02:25. > :02:29.I that we need to look further and see whether we should strengthen
:02:29. > :02:33.these powers considerably on top of what we have at the moment.
:02:33. > :02:38.(CHANTING). After a resurgence of shareholder activism - like these
:02:39. > :02:42.protests against Barclays' pay deals, Vince Cable says it is
:02:42. > :02:47.shareholders, not the government or regulators who should hold
:02:47. > :02:51.management boards to account. Before answering to shareholders,
:02:51. > :02:53.Barclays' boss Bob Diamond will have to answer to MPs at the
:02:53. > :02:57.Treasury Select Committee on Wednesday. With growing public
:02:57. > :03:02.anger, there will also be questions about whether he, too, should now
:03:02. > :03:08.step down. For another view, let's speak to
:03:08. > :03:12.the editor of the Banker magazine. Do you think this is enough? The
:03:12. > :03:18.chairman going? I don't think it will be. This libel fixing scandal
:03:18. > :03:22.is in a league of its own. It is different to those of insider
:03:22. > :03:26.trading at banks. This affects the whole of the market. It will affect
:03:26. > :03:35.London's reputation as a financial centre. All but Lee, who runs
:03:35. > :03:38.Barclays is up to the shareholders. -- ultimately. He will have to go
:03:38. > :03:42.before a Treasury Select Committee this week and ask some questions
:03:42. > :03:47.about what has gone on at the bank. No doubt they will focus on the
:03:47. > :03:51.fact that US authorities say that management and new, and in fact,
:03:51. > :03:55.instructed, workers at Barclays to go ahead with these actions. Yes,
:03:55. > :03:57.some very damaging things came out of the report from the US
:03:57. > :04:03.regulators where they said the senior bank management instructed
:04:03. > :04:13.the traders and these have knitters to carry out this practice. -- and
:04:13. > :04:25.
:04:25. > :04:28.these have -- the submitters. regulation to light in the UK?
:04:28. > :04:34.don't think that London is worse than other places, but regulations
:04:34. > :04:36.might need to change. There are regulations out there which might
:04:36. > :04:41.restrict London more than other markets, but they have not kick in
:04:41. > :04:46.yet. The UK Bank executor or is less competitive than it has been
:04:46. > :04:49.in recent years? That's right, the bank has released in the top 1,000
:04:49. > :04:55.will banks today - if you look over the past five years, you see that
:04:55. > :04:58.UK banks used to hold a 10% share of world banking profits, now it is
:04:58. > :05:03.about 5%. In the meantime we are seeing a Chinese banks continuing
:05:03. > :05:08.to grow - they have about 30% share of world profits, which is a
:05:08. > :05:13.fantastic performance. Thank you for your thoughts. We
:05:13. > :05:17.will have that announcement at seven o'clock London time.
:05:17. > :05:23.Can Greece clear on to membership of the euro? The country's new
:05:23. > :05:29.government may ask for two more years to meet their targets when
:05:29. > :05:34.the troika returned to Athens today. On Sunday, senior ECB officials
:05:34. > :05:39.told German television that Greece must stick to its austerity
:05:39. > :05:43.programme 100% if it wants to stay in the euro. That is looking less
:05:43. > :05:51.achievable by the day. But troika were not too impressed
:05:51. > :05:54.last time they came to Greece. Since then, deepening depression
:05:54. > :05:57.and the distractions of an electoral campaign have further
:05:57. > :06:02.slowed process, making it even more unlikely that Athens can ever
:06:02. > :06:06.fulfil its financial promises. The Conservatives, socialists and
:06:06. > :06:13.moderate leftists would like to bargain for a two-year extension,
:06:13. > :06:17.along with more rescue cash. Brussels insists that the elections
:06:17. > :06:21.changed nothing, though the IMF admits it is open to discussions
:06:21. > :06:25.about how Greece can best meet its objectives. The troika will assess
:06:25. > :06:28.conflicting evidence of process with reforms. One report says that
:06:28. > :06:34.civil servant numbers will have been cut by 100,000 by the end of
:06:34. > :06:38.the Year. Another suggest 70,000 have been recruited in two-years.
:06:38. > :06:42.When it comes to the promised privatisations of state utilities,
:06:42. > :06:45.sell off programmes are ready, according to this economist, but
:06:45. > :06:50.politicians would not push the start button before the elections.
:06:50. > :06:54.They claim that they were ready to proceed with privatisation, however,
:06:54. > :06:58.these elections have been a big obstacle. Namely, political parties
:06:58. > :07:01.have refrained from taking the necessary decisions to proceed with
:07:01. > :07:06.privatisation, thinking that if they win elections, if one party or
:07:06. > :07:12.the other party wins, then this will mean that they will have a
:07:13. > :07:17.free hand to decide how to progress. Meanwhile, the troika can only
:07:17. > :07:21.focus on achievements to date. These reports will provide evidence
:07:21. > :07:27.as Athens appeal to their EU partners to respond to sacrifice
:07:27. > :07:31.his by recession-hit Greeks. There is more evidence that
:07:31. > :07:34.Europe's debt crisis is Wayne on other parts of the world. June saw
:07:34. > :07:44.the weakest growth in China's manufacturing for around seven
:07:44. > :07:45.
:07:45. > :07:50.months. In Japan, sentiment measures came out better than
:07:50. > :07:59.expected. This survey showed that Japan is,
:07:59. > :08:03.perhaps, or remaining resilient? That's right. Both manufacturers
:08:03. > :08:08.and other businesses seem less pessimistic in the three months up
:08:08. > :08:12.to June. The big manufacturers are coming in at minus one, which is an
:08:12. > :08:15.improvement compared to the previous quarter. The country's
:08:15. > :08:19.economy has been recovering quite strongly after the earthquake, but
:08:19. > :08:23.we have to remember that there have been quite a number of special
:08:23. > :08:30.measures that the Government has implemented as well as the Bank of
:08:30. > :08:33.Japan, in order to boost the economy. This survey is a rather
:08:33. > :08:37.backward-looking data collection. If you look at the recent
:08:37. > :08:40.manufacturing data, from, as you say, both China and Japan and
:08:40. > :08:45.across Asia, it seems like the global recession or slowdown has
:08:45. > :08:51.been starting to affect the manufacturing activities hear it in
:08:51. > :08:55.Asia as well. -- here in Asia.
:08:55. > :09:01.Apple will pay a Chinese company $60 million to settle their long-
:09:01. > :09:05.running legal dispute over the iPad name and its use in China. Apple
:09:05. > :09:11.said it brought the global rights to the name in 2009, but Chinese
:09:11. > :09:15.authorities say that the ownership was never transferred. The
:09:15. > :09:21.settlement will lead to possible complications in selling the device
:09:21. > :09:28.in China - one of Apple's most important markets.
:09:28. > :09:34.Later today, plans for a plant in the southern US state of Alabama
:09:34. > :09:42.are expected to be announced to assemble the new model of short-