IN Britain, Northern Rock, the country's eighth-biggest bank, revealed that it had asked the Bank of England for a rescue loan; customers queued to get their money out despite calls for calm from the bank and government.

General Petraeus, the US commander in Iraq, reported to Congress on the results of the military surge there. He said there had been some encouraging signs but warned against over-optimism, as did Ambassador Crocker who said there had been little progress towards national reconciliation.

President Putin appointed a new prime minister, the unknown Viktor Zubkov. At a press conference for foreign journalists in Moscow Mr Putin said that he would probably remain politically active after ending his two-term presidency in 2008 and left open the possibility that he might put his name forward again in 2012.

OPEC agreed to increase oil output by 500'000 barrels a day, the first increase for two years, but the cost of a barrel immediately reached $80 for the first time.

BULLETIN Headlines of the Week l SUNDAY/MONDAY: Foreign Legion(The Balearics has the highest proportion of foreign residents in Spain). l TUESDAY: Open All Hours in Palma(Palma's council wants shops and restaurants to remain open at weekends). l WEDNESDAY: Medical Staff Want New Palma Hospital(A public debate opened on the preferred site for Palma's new hospital). l THURSDAY: Local Council Chief Seeks More Island Funding(The President of the Council of Majorca called for greater funding from the Balearic government). l FRIDAY: End Of An Era (Tumi Bestard, the US Consular Agent in the Balearics, retired after 45 years in the job.)
Pound Dives Against The Euro(The pound sterling fell to its lowest level against the euro in 14 months).


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