Biden lands in India for G20 summit

Managing Director:Where To Shelter Now

We're still very concerned about the situation in Europe,said Adrian Mowat,Managing Director and Chief Emerging Markets Strategist at JP Morgan Chase.What's gonna happen with France and Germany as they recapitalise their banks?We look forward to the G20 meeting November 3-4 in Cannes.
Our advice would be to reduce into that rally.We're concerned because the European Central Bank doesn't seem to get it.At the moment,they're still concerned about regulatory matters and they don't want to grow their capital base.
We need to look out for Chinese inflationary numbers.Inflation will eventually come off there.Our belief is that Europe will get worse before it gets better.Think about capital preservation at this point in time,keeping to U.S. dollar cash,Mr.Mowat advised.
JP Morgan Chase(JPM)

Globalism Takes Hold

The G20 is now the apex of economic cooperation,the leaders of the 20 most prominent economies agreed at their Pittsburgh summit last week.This represents the triumph of globalism over the old country club of the G8,which consisted only of the developed nations.The G20 summits set forth broad frameworks which shape and coordinate the work of national governments as they grapple with the economic issues of the day.The G8 will be folded into the G20 summits as dinner meetings.It will deal mainly with security and donor issues.
At Pittsburgh,the G20 promised to develop tougher capital requirements for banks;crack down on financial executives' compensation;elevate the status of developing countries;and resist the threat of protectionism to economic stability.These promises could be handled elsewhere,but a summit gives world leaders a chance to develop personal rapport.

G20 Cracks Down

The G20,which comprises the leading developed and developing economies,are cracking down on tax havens.At their meeting in London over the weekend,the G20 finance ministers agreed to punish with sanctions those who do not obey transparency requirements that G20 leaders agreed on at their summit in April.As well,the ministers are considering clawing back any bonuses executives may have received despite having precipitated financial upheaval.The ministers said they would maintain their fiscal and monetary stimulus measures as long as necessary.U.S. Treasury Secretary Timothy Geithner observed that growth is now underway.However,we still face significant challenges ahead.
The G20 leaders will hold a summit in Pittsburgh,Pennsylvania on 24-25 September.

WTO Director Sees Progress

Pascal Lami,Director of the World Trade Organization,noted progress at the G8 summit in Italy last week:1.solid impetus,solid commitment to push back protectionist tendencies;2.commitment to finish the Doha round of negotiations;3.commitment to keep pushing on open trade,which is what developing nations need.As compared to last year,the U.S. and India have expressed the political will together.There remains a bit of compromising to be done,but their commitment to Doha 2010 is something new,Mr.Lami observed.
The G20 group of developed and key developing nations are to meet in Pittsburgh,Pennsylvania in September.The G8 summit may be considered to have been preparation for what many believe to be the more significant meeting.