Week of May 20, 2012 thru May 26, 2012
--Obama:Global Economy Progress Threatened by Serious Eurozone Situation
WASHINGTON (MNI) - Leaders of eight of the world's leading economies agreed Saturday that it is imperative to boost growth and create jobs, and also to pursue fiscal consolidation but at the pace appropriate for each economy.
They agreed they want Greece to remain in the eurozone, but also to fulfill its commitments.
President Barack Obama said after the meeting the G8 nations have worked together and made progress on the economic challenges.
"Progress has been tested at times," Obama said. "Today it's threatened once again by the serious situation in the euro zone.
WASHINGTON (MNI) - The following is the declaration of Group of Eight leaders on the global economy and energy and climate change released Saturday following the leaders meeting in Camp David, Maryland:
Camp David Declaration
Camp David, Maryland, United States May 18-19, 2012
1. We, the Leaders of the Group of Eight, met at Camp David on May 18 and 19, 2012 to address major global economic and political challenges.
The Global Economy
2. Our imperative is to promote growth and jobs.
3. The global economic recovery shows signs of promise, but significant headwinds persist.
WASHINGTON (MNI) - The following is the declaration of Group of Eight leaders on the food security and nutrition, and the Middle East and North Africa released Saturday following the leaders meeting in Camp David, Maryland:
Food Security and Nutrition
16. For over a decade, the G-8 has engaged with African partners to address the challenges and opportunities afforded by Africa's quest for inclusive and sustainable development. Our progress has been measurable, and together we have changed the lives of hundreds of millions of people. International assistance alone, however, cannot fulfill our shared objectives.
WASHINGTON (MNI) - The following is the declaration of Group of Eight leaders on political and security issues released Saturday following the leaders meeting in Camp David, Maryland:
Political and Security Issues
30. We remain appalled by the loss of life, humanitarian crisis, and serious and widespread human rights abuses in Syria. The Syrian government and all parties must immediately and fully adhere to commitments to implement the six-point plan of UN and Arab League Joint Special Envoy (JSE) Kofi Annan, including immediately ceasing all violence so as to enable a Syrian-led, inclusive political transition leading to a democratic, plural political system.
WASHINGTON (MNI) - The following is the text of a communique of the G8 leaders Saturday following their meeting in Camp David:
Our imperative is to promote growth and jobs.
The global economic recovery shows signs of promise, but significant headwinds persist.
Against this background, we commit to take all necessary steps to strengthen and reinvigorate our economies and combat financial stresses, recognizing that the right measures are not the same for each of us.
We welcome the ongoing discussion in Europe on how to generate growth, while maintaining a firm commitment to implement fiscal consolidation to be assessed on a structural basis.
--Meetings & Events of Interest to Subscribers
DATE GMT / EST EVENT
19-May -- G8 Summit at Camp David discusses the euro zone problems following by discussions on energy/climate, a working lunch on world food security and a discussion of Afghan non-war needs. Final discussion on "Arab spring" developments.
20-21 May -- Fifty-one NATO countries meet for summit in Chicago.
21-May -- Atlanta Federal Reserve Bank Pres.
NEW YORK, May 18 (MNI) - With Greece likely to simmer on the backburner until the June 17 election, market focus next week will turn more to global fundamentals.
--Real Recovers from 2.05 to 2.02 After Intervention
SAO PAULO (MNI) - Brazil's Central Bank intervened late Friday afternoon to stop the real's fall, selling currency swap contracts for the first time since 2011.
The market bought all 13,000 contracts offered, for a total of $654 million.
The intervention had an effect, and the real, which had fallen over 2% earlier Friday afternoon to weaker than 2.05 to the dollar, recovered to just over 2.02, though that was still down 0.78% from Thursday's close.
"I think volatility was the main reason behind the intervention," Diego Donadio, chief Latin American currency strategist for BNP Paribas in Sao Paulo told MNI Friday.
Source: U.S. Treasury, Fannie Mae, Freddie Mac Amounts in billions of U.S.
--Retransmitting; Correcting Euro-Dollar Rate In 2nd Paragraph
NEW YORK, May 18 (MNI) - The dollar was holding a softer tone at the end of the week as trading wound down amid quiet but choppy dealings, as the greenback slipped slightly against the euro and the yen as traders lightened up on dollar longs, lowering their risk profiles.
Euro-dollar was changing hands at $1.2765 in afternoon dealings, with the euro in the upper reaches of the day's $1.2690-1.2785 range after seeing a late session spike, beginning the day at the low and enjoying an early, but limited, lift.