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G20 update with Chris Uhlmann -

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G20 update with Chris Uhlmann

Broadcast: 02/04/2009

Reporter: Chris Uhlmann

Chris Uhlmann joins Lateline from London to discuss the latest on the lead-up to the G20 summit.


LEIGH SALES, PRESENTER: And Chris Uhlmann joins us now, live from London.

Chris, there's been a big build-up to this meeting, but now the rhetoric's stopped and the
talking's started. Will there be an agreement?

CHRIS UHLMANN: Absolutely, Leigh, there's no way that the leaders can go away without an agreement.
Because essentially this is a crisis of confidence, and you can imagine what might happen to the
markets if somebody walked out of this meeting and they didn't have a communiqué at the end. It
will be a communiqué that gives everyone something that they want.

Now, that's not downplaying the differences that we've had leading into this conference, there are
real differences, particularly between what you might call the Anglo sphere - Britain, the United
States, Australia - and the Europeans about whether or not the best way to go was more fiscal
stimulus or more regulation. Now, that's not a false argument but it will be one that will give
everyone a win in the end.

In the communiqué I'm sure you'll see that when they get to fiscal stimulus, they'll talk a lot
about what they have already achieved and Gordon Brown will be allowed to talk that up and there
will be some stuff on regulation, which will allow the Europeans to talk about that.

LEIGH SALES: What sort of other things will we be seeing in the agreement, do you think, Chris?

CHRIS UHLMANN: Well, going to those first two things. On financial regulation they will be looking
to bring the shadow banking system under control, and hedge funds, and tax havens, making sure that
that kind of regulation oversees all of those organisations that deal with people's money.

On fiscal stimulus, they'll talk about the things that have already been achieved. $2.5 trillion is
the figure that's being touted about, an enormous amount of money this financial year. Gordon Brown
and Kevin Rudd of course have been talking about next financial year, as has Barack Obama, but that
probably won't be happening now. But I'm sure they'll say that they'll do whatever it takes to keep
the financial system ticking over, to keep the economies of the world ticking over.

They'll also look at the international monetary fund, probably doubling its resources and of course
increasing a role for China, because China's going to be putting more money in, so it'll want more
of a say about how that organisation is run.

They'll look at trade finance. Now, we've talked a lot about interbank lending and the fact that
money has dried up in the system. It's also dried up in trade finance and perhaps the World Bank
will have a role there. And finally and not lastly because it will be talked up by every single
leader, they will be looking at the wages, salary conditions and bonuses of bankers. The world's
about to change for them.

LEIGH SALES: Chris, how about what's going on outside the conference centre? We saw those violent
demonstrations yesterday; are more expected today?

CHRIS UHLMANN: The police were very concerned about what would happen yesterday, April Fool's Day
here. It had been Financial Fool's Day by, really, a myriad of groups with a kaleidoscope of
complaints. But that violence that you saw was restricted pretty much to the Bank of Scotland.
Mostly it was peaceful; there was an even larger demonstration on the weekend with 35,000 people
which was completely peaceful.

So far today we haven't heard that there has been any more violence, but police of course are being
very cautious about that. There was one death from what we understand was from natural causes and
as I understand it now, around about 86 arrests. But so far, from outside what we're calling the
'Ring of Steel' here, it's a long way from where that kind of action is.

LEIGH SALES: OK, we'll keep an eye on it. Chris Uhlmann, our correspondent at the G-20 in London,
thank you.