G20 Cannes Summit Tidbits

What you need to know:

 More calls for China to let its currency float

Stronger language was adopted to call for China to let its currency move by “market-driven exchange rates”.

• Conditions were placed by members for their helping EZ

The BRICS (Brazil, Russia, India, China, and South Africa) stated that they were open to investing in EZ via the IMF. They noted that the Euro Zone is a very important market for China and Brazil exports and that a financial meltdown in the EZ would impact global economic growth significantly. Support will be based on IMF policy.

• Bill Gates Financial Transaction Tax proposal fails

In a report to the G20, Bill Gates proposed a tax on financial transactions, aviation and shipping fuel, and tobacco as a way to raise money to assist poorer countries did receive some support from France but was blocked by the USA, Britain, and Canada. The rich stay rich and the poor stay poor!

• Capital Surcharge plan on the top 29 Bank

The G20, perhaps responding to global social pressure, publicy listed the top 29 banksters well actually “29 important banks to the world's financial system”. The financial Stability Board, a regulatory taskforce of the G20 listed the banks and announced that the banks will be required to accept greater capital and closure surveillance compared to other banks not on the list include other regulations to ensure that in the event of failure taxpayers will not be called upon for support.

• Sarkozy condemns Iran's nuclear program and defends Israel

Sarkozy said that France would react to support Israel if threatened. The weekend has been filled with similar comments from the USA over weekend. Fox is having a field day.

• China willing to help EZ, waiting for clearer details

Political pressure is building in China among the population to not blindly run to the aid of Europe. Blogs and TV shows are buzzing this weekend with the debate over “rescuing” the Europe. Officials from China have stated “we cannot look on and not help”. The government however is under some political pressure on the issue.

• Bank of Canada head Carney to chair the Financial Stability Board

He replaces Mario Draghi, who took over the head of the ECB.