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Issue1 /2010

Economic Update
Compiled & Published Research Team Strategic Resource Centre, Corporate Services Division

15 June 2010

G8 leaders seek common ground on debt crisis Europe and the US tried to bridge differences over how best to sustain a fragile global economic recovery and to find common ground on deficit reduction. G8 leaders - from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States. Europe has been spooked by a sovereign debt crisis that has pushed some eurozone members such as Greece to the brink of default - threatening the stability of the euro and of some European financial institutions. The Group of 20 countries ended a two-day summit meeting here by endorsing a goal of cutting government deficits in half by 2013 and stabilizing the ratio of public debt to gross domestic product by 2016. proposed the targets and received the backing of several European leaders. ----------------------------------------------------Oil prices surge as storm may threaten Gulf of Mexico

Oil prices leaped on Friday as the market fretted about global supply as rough weather in the Caribbean Sea threatened to develop into a hurricane in the oil-producing Gulf of Mexico. New York's main contract, light sweet crude for August delivery, surged to US$78.86 a barrel, a gain of US$2.35 from Thursday's close. In London, Brent North Sea crude for August delivery gained US$1.65 to settle at US$78.12 a barrel. ----------------------------------------------------Asian markets extend after Wall Street's fall losses

Asian stocks followed Wall Street lower on Friday as concerns over the global economy returned, while China set the yuan at its strongest rate in five years a day before a key G20 summit. Traders extended losses from the previous session after the US Federal Reserve issued a subdued outlook on the state of the world's biggest economy, suggesting the European debt crisis was taking its toll. -----------------------------------------------------