28 July 2009

Superpowers Meet in Washington

Apologies for the lack of posts in the last week....technical difficulties seem to be a factor at Blogger! But we are pleased to be back!

Today, the main economical and political news item is the SED conference in Washington between key powers USA and China. Co-hosted by Hilary Clinton and Timothy Geithner, it is of course headed by President Obama. The latter opened the talks by stating a need for the two nations to cooperate on a range of issues that affect the globe - includin nuclear weapons, piracy, civil war, North Korea, and of course the financial downturn.

Both nations have agreed not to stop fiscal stimulus as the situation is still "too fragile" to stop.

While there have been some 'wobbly' moments between the two countries - and during the Bush administration this atmosphere was certainly felt - they do rely on one another. Geithner has already pledged to rein in the deficit within the next four years, as this is a key concern for China, which holds huge reserves.

China is a key nation amongst the emerging market economies that are at the forefront of the new investor interest. Analysts are forecasting a good future in the emerging market, especially for long term investment.

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