Germany has said it sees no need for an emergency meeting of the Group of Seven industrialised nations over turmoil in world markets stemming from a crisis in the US home loan sector.
A German government spokesperson confirmed that Chancellor Angela Merkel had received a letter from French President Nicolas Sarkozy in which he called for the G7 states to take steps to improve transparency in world markets.
Germany currently holds the rotating presidency of the G7. A report from Japan suggested that the G7 had begun discussing measures to cope with plunging stock markets and wild foreign exchange fluctuations.
The report said Canada, France, Germany, Italy, Japan, the UK and the US are considering an emergency meeting of their finance ministers and central bankers to try to help stabilise the markets.
Another option is to issue a joint statement without a meeting, but the G7 nations are cautious that such moves could increase investor anxiety.
Japan's finance ministry did not confirm or deny the report. French Economy Minister Christine Lagarde said yesterday that G7 finance chiefs could gather before their next scheduled meeting in October if needed.
World stock markets had a harrowing week which saw a fierce global sell-off sparked by fears that US housing market woes could infect the world economy.
In recent days, central banks around the world have together pumped billions of dollars into the global financial system amid signs that private banks and firms are having trouble raising funds and rolling over debt.
A German government spokesperson confirmed that Chancellor Angela Merkel had received a letter from French President Nicolas Sarkozy in which he called for the G7 states to take steps to improve transparency in world markets.
Germany currently holds the rotating presidency of the G7. A report from Japan suggested that the G7 had begun discussing measures to cope with plunging stock markets and wild foreign exchange fluctuations.
The report said Canada, France, Germany, Italy, Japan, the UK and the US are considering an emergency meeting of their finance ministers and central bankers to try to help stabilise the markets.
Another option is to issue a joint statement without a meeting, but the G7 nations are cautious that such moves could increase investor anxiety.
Japan's finance ministry did not confirm or deny the report. French Economy Minister Christine Lagarde said yesterday that G7 finance chiefs could gather before their next scheduled meeting in October if needed.
World stock markets had a harrowing week which saw a fierce global sell-off sparked by fears that US housing market woes could infect the world economy.
In recent days, central banks around the world have together pumped billions of dollars into the global financial system amid signs that private banks and firms are having trouble raising funds and rolling over debt.
Via: RTE business
