INSTANT VIEW: G20 agrees $1.1 trillion to help economy

Thu Apr 2, 2009 5:35pm BST
 
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LONDON (Reuters) - World leaders agreed to $1.1 trillion in financing to strengthen the world economy and toughened up the regulations on banks, hedge funds and tax haven at their G20 summit on Thursday.

Stocks jumped on the G20 news, along with a U.S. decision to loosen accounting rules for toxic assets.

Below are comments from analysts and economists on the G20 leaders' actions:

JIM ROLLO, EUROPEAN ECONOMICS PROFESSOR, SUSSEX UNIVERSITY

"All in all, it sounds like good news. The extra funding for the IMF is obviously good news and the trade financing is important because global trade has been falling off a cliff. That should be good for the big exporters such as China and other emerging economies including Brazil -- it should please the Germans as well.

"It's important because this crisis is moving from affecting people in countries where there is some safety net to emerging economies where there is nothing to protect them at all.

"On protectionism, we will have to see how things develop. Naming and shaming can help because all these leaders want to be seen as working together at the summit and they will worry about the possibility of their peers saying bad things about them."

LARS CHRISTENSEN, CHIEF EMERGING MKT ANALYST, DANSKE BANK:

"I don't think the markets will be overly excited about it but there's no reason to be disappointed either. Nobody had really hoped for more than we're getting."  Continued...

 

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