Bond yields fall in Spain and Italy on the news from the G20 summit that eurozone leaders will discuss a €750bn deal to push down borrowing costs in the region by buying the debt of the worst-hit nations.
By Carnegie Endowment:As expected, the G20 summit yielded little by way of concrete commitments or dramatic breakthroughs. The high hopes of just a few weeks ago had already dimmed by the time leaders gathered in Cannes, in an atmosphere beset by European divisions, Greek tragedies, and the inability of the United States — absorbed by its own domestic problems — to provide the necessary impetus.
The leaders of France and Germany summoned Greece’s prime minister for crisis talks Wednesday in Cannes, ahead of the G20 summit there, to discuss his surprise announcement of a national referendum on a 130-billion euro EU bailout.
European leaders summoned the Greek prime minister to the French riviera on Wednesday to restore calm on the eve of a G20 summit after his shock call for a debt rescue referendum raised the spectre of Greece leaving the eurozone.French President Nicolas Sarkozy, German Chancellor Angela Merkel, top EU leaders and the head of the International Monetary Fund were set to meet with Greek Prime Minister George Papandreou to discuss the implications of his referendum plan.
The G-20 summit of to a great start if you like fireworks, endless bickering, and finger-pointing. Otherwise these summits are totally useless.
When asked by a Canadian journalist "Why should North Americans risk their assets to help Europe?" EC President José Barroso replied "Frankly, we are not here to receive lessons in terms of democracy or in terms of how to handle the economy.
AMERICAN employment put in a respectable performance in July. Non-farm payrolls rose 117,000, or 0.1%, and the unemployment rate edged lower to 9.1% from 9.2%, both better, but not dramatically so, than Wall Street had expected. Any other time this would have been cause for mild satisfaction. In these grim times, it constitutes a massive relief bordering on joy.
By Simon Johnson
The April 2009 London summit of the G20 is widely regarded as having been a great success. The world’s largest economies agreed on an immediate coordinated approach to the global financial crisis then raging and promised to work together on banking reforms that would support growth. At the time, President Obama got high marks for his constructive engagement.