Sunday, August 7, 2011

Debt crises trigger emergency talks across world

Emergency talks focused on the debt crises in Europe and the United States are planned Sunday for G7 finance ministers before Asian markets open, while the European Central Bank will consider buying Italian public debt to stem the turmoil.

Group of Seven policymakers were to take part in their second telephone conference call of the weekend to work on a response to Friday's nosedive on financial markets in light of Standard and Poor's U.S. credit rating downgrade and intensifying debt problems in Europe.

Finance ministers and central banks from the United States, Canada, Britain, France, Germany, Italy and Japan may issue a joint statement after the talks, Jiji Press said in Tokyo.

Canada's Finance Minister Jim Flaherty has insisted Canada is "well-positioned" to face economic uncertainty but also cautioned the country's economy "is not an island" and could eventually be affected by the global debt troubles.

Middle East markets have already opened in Sunday trading. Many of those indexes are down sharply, but world leaders are focused on the larger Asian markets. (more)