Update: (Sunday 3:40 pm) European leaders decide to inject billions of Euros into their banks.
Update: (Sunday 10:33 am)
No rest for the (world) weary this weekend.
Over In Europe
AP: European leaders meet Sunday in search of a common response to a spreading financial crisis that has ricocheted across the Atlantic to their shores and to try to preserve the bloc’s unity.
It could be a complex exercise for the 15 heads of state or government of the euro-zone, where the euro currency is used, because of the varied financial landscapes in each country.
German Chancellor Angela Merkel, stressing the need for a synchronised response, said Saturday that a “common tool box” could be the outcome. Individual countries can use these “tools” to respond to their particular situation, she said.
“We need a common approach in Europe but we must be able to adapt to each national situation in a flexible way,” she said after a meeting outside Paris with French President Nicolas Sarkozy.
And, meanwhile, back In Washington..
AP: The talks shifted Sunday to the World Bank and its policy-setting committee led by Mexican Finance Minister Agustin Carstens and World Bank President Robert Zoellick, a former U.S. diplomat and trade negotiator.
Zoellick said 28 countries facing the twin shocks of rising food and fuel prices are likely to receive no help from developed countries because of the global financial crisis. “For the poor, the costs of the crisis could be lifelong,” he said.
Bush, after meeting Saturday with finance ministers from the world’s richest countries, vowed anew that his administration was doing everything possible to halt the biggest market disruption since the Great Depression.
AP: President Bush and foreign financial officials displayed joint resolve Saturday to combat the unfolding financial crisis, hoping to calm investors whose panic has spread despite bold and accelerating government action.
Yet there was no concrete offer of new moves when Bush spoke on a Rose Garden stage just after daybreak, flanked by representatives from nearly a dozen nations and international organisations. The fresh message of the day was Bush’s plea that nations work together to address the crisis, avoiding the go-it-alone protectionist trade strategies that worsened conditions during the Great Depression.
“In an interconnected world, no nation will gain by driving down the fortunes of another. We are in this together. We will come through it together,” Bush said. “There have been moments of crisis in the past when powerful nations turned their energies against each other or sought to wall themselves off from the world. This time is different.”
Bloomberg: Group of Seven finance chiefs, meeting after stocks plunged and as a global recession looms, vowed to prevent the failure of vital banks while failing to unveil new initiatives for thawing credit markets.
“The current situation calls for urgent and exceptional action,” the finance ministers and central bankers said in a statement after talks in Washington yesterday. They pledged to “take all necessary steps to unfreeze credit and money markets” without detailing how that would be accomplished.
Signaling they would intervene to avoid a repeat of last month’s collapse of Lehman Brothers Holdings Inc., the officials promised to ensure major banks have access to cash and are able to tap public funds for capital. By refraining from specific fresh measures such as embracing a U.K. plan to guarantee loans between banks, they still run a risk of disappointing investors.
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