Clinton calls for November summit on financial crisis

PRESIDENT CLINTON is calling for UK support for a new world economic summit to be held in London in November to discuss the world economic crisis.

The call for support came as the President met the UK Chancellor, Gordon Brown, in private in Washington last night, amid growing fears that the G7 group of richest nations has failed to do enough to reassure panicked investors around the world.

The meeting was expected to help set the tone for the Chancellor's crucial keynote speech to the IMF/World Bank meeting today. It will give crucial signals to the market on the Government's plans for dealing with the fallout from the crisis which has engulfed the City of London.

The President was expected to back UK calls for tighter regulation of world financial markets and also canvass support for his his plan to establish an emergency fund to bail out troubled emerging economies.

Yesterday the pound fell to its lowest level against the German mark for 18 months amid growing expectations that the Bank of England will cut interest rates this week to head off the threat of global recession.

But equity markets failed to revive on the prospect of lower borrowing costs. and the FTSE 100 Index fell a further 101.7 points to close at 4648.7. The air of gloom in London was reinforced by the latest Purchasing Managers Survey showing the lowest rate of growth in the service sector since July 1996.

The Bank of England's Monetary Policy Committee starts its two-day meting tomorrow with most pundits forecasting it will trim rates by a quarter point to 7.25 per cent. This would be the first rate cut since Labour came to power.

The gloom deepened when the Dow Jones Industrial Average tumbled more than 200 points to stand at 7572.54 by early afternoon in New York.

Bill McDonough a governor of the US Federal Reserve, warned of an incipient credit crunch. He said: "I believe we are in the most serious financial crisis since World War Two. If every institution tightens credit, I can assure you we will have a mess." Worries about the possible re-introduction of capital controls in emerging market economies continued to worry the financial markets.

The spectre of capital controls - opposed by most leading economies, including the UK - was raised by the Interim Committee, the main governing body of the International Monetary Fund (IMF), following its meeting on Sunday.

The committee said: "Temporary impediments to capital movements have been utilised under certain circumstances, and the committee asked the board to review the circumstances under which such measures may be appropriate."

Like the G7, the Interim Committee recognised that "the outlook for the world economy has worsened considerably". The committee added: "The downside risks to the current outlook have increased significantly".

Mervyn King, deputy governor of the Bank of England, yesterday became the latest in a long line of figures to spell out proposals for reforming the financial system.

Recommendations by Mr King, who co-chaired a G22 working group on transparency and accountability, included that banks spell out their exposure to hedge funds, that national authorities detail their foreign exchange liquidity position and that the international institutions, such as the IMF and the World Bank, bring an end to their culture of secrecy.

Leading article, Review page 3

News
people And here is why...
Arts and Entertainment
Amazon has added a cautionary warning to Tom and Jerry cartoons on its streaming service
tv
Voices
voicesBy the man who has
Sport
Arsene Wenger tried to sign Eden Hazard
footballAfter 18 years with Arsenal, here are 18 things he has still never done as the Gunners' manager
PROMOTED VIDEO
Life and Style
The new Windows 10 Start Menu
tech
Arts and Entertainment
Kristen Stewart and Robert Pattinson star in The Twilight Saga but will not be starring in the new Facebook mini-movies
tvKristen Stewart and Stephenie Meyer will choose female directrs
Arts and Entertainment
Hilary North's 'How My Life Has Changed', 2001
books(and not a Buzzfeed article in sight)
News
ebooksAn unforgettable anthology of contemporary reportage
News
William Hague
people... when he called Hague the county's greatest
News
More than 90 years of car history are coming to an end with the abolition of the paper car-tax disc
newsThis and other facts you never knew about the paper circle - completely obsolete today
Arts and Entertainment
There has been a boom in ticket sales for female comics, according to an industry survey
comedyFirst national survey reveals Britain’s comedic tastes
Arts and Entertainment
Twerking girls: Miley Cyrus's video for 'Wrecking Ball'
arts + ents
Arts and Entertainment
Ed Sheeran performs at his Amazon Front Row event on Tuesday 30 September
musicHe spotted PM at private gig
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?
Why do we like making lists?

Notes to self: Why do we like making lists?

Well it was good enough for Ancient Egyptians and Picasso...
Hong Kong protests: A good time to open a new restaurant?

A good time to open a new restaurant in Hong Kong?

As pro-democracy demonstrators hold firm, chef Rowley Leigh, who's in the city to open a new restaurant, says you couldn't hope to meet a nicer bunch
Paris Fashion Week: Karl Lagerfeld leads a feminist riot on 'Boulevard Chanel'

Paris Fashion Week

Lagerfeld leads a feminist riot on 'Boulevard Chanel'
Bruce Chatwin's Wales: One of the finest one-day walks in Britain

Simon Calder discovers Bruce Chatwin's Wales

One of the finest one-day walks you could hope for - in Britain
10 best children's nightwear

10 best children's nightwear

Make sure the kids stay cosy on cooler autumn nights in this selection of pjs, onesies and nighties
Manchester City vs Roma: Five things we learnt from City’s draw at the Etihad

Manchester City vs Roma

Five things we learnt from City’s Champions League draw at the Etihad
Martin Hardy: Mike Ashley must act now and end the Alan Pardew reign

Trouble on the Tyne

Ashley must act now and end Pardew's reign at Newcastle, says Martin Hardy
Isis is an hour from Baghdad, the Iraq army has little chance against it, and air strikes won't help

Isis an hour away from Baghdad -

and with no sign of Iraq army being able to make a successful counter-attack
Turner Prize 2014 is frustratingly timid

Turner Prize 2014 is frustratingly timid

The exhibition nods to rich and potentially brilliant ideas, but steps back
Last chance to see: Half the world’s animals have disappeared over the last 40 years

Last chance to see...

The Earth’s animal wildlife population has halved in 40 years
So here's why teenagers are always grumpy - and it's not what you think

Truth behind teens' grumpiness

Early school hours mess with their biological clocks
Why can no one stop hackers putting celebrities' private photos online?

Hacked photos: the third wave

Why can no one stop hackers putting celebrities' private photos online?