G20 Summit (2nd April 2009)

Wednesday, 1st April 2009 14:36 - by Didedo

On 2nd April 2009, the meeting of the G20 (countries which represent 85% of the world’s output) takes place in London. The key agenda items are: o To take whatever action is necessary to stabilise financial markets and enable families and businesses to get through the recession. o To reform and strengthen the global financial and economic system to restore confidence and trust. o To put the global economy on track for sustainable growth. It seems to me that the markets are still in a state of flux and I wonder whether the upcoming meeting will be the catalyst for an upturn or, if the meeting turns into a damp squib where agreement cannot be reached, another test of market lows. To quote Cabinet Minister Douglas Alexander: “In 1931 the world came together and failed to reach agreement on the way to deal with the Recession, and we all know the consequences.” Following talks with the United Nations (UN) Secretary, Gordon Brown said “Doing nothing is no longer an option.” Looking through updates in the major news reports there is talk of an ‘end to unilateralism’ and a new dawn of ‘inclusive multilateralism’. Will countries be able to put their disagreements behind them? For example, is Europe still smarting over the gas pipeline issues? Is China having second thoughts on its policy of purchasing American bonds? Germany, France, and Russia question further cash injection...are some economies unable to take the actions required anyway? So come on fellow stock market devotees, what do you think? Are the markets waiting for the G20 meeting? Will market trading, post-G20, reflect the sentiments of the meeting i.e. will it become a pivotal moment for recovery...or otherwise? Alternatively, has the market now moved on and are all comparisons to the 1930’s irrelevant?