{"id":18292,"date":"2016-02-26T12:54:03","date_gmt":"2016-02-26T17:54:03","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18292"},"modified":"2016-02-26T12:54:03","modified_gmt":"2016-02-26T17:54:03","slug":"g-20-needs-to-man-up-or-risk-sparking-market-chaos-citi-warns","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18292","title":{"rendered":"G-20 Needs To “Man Up” Or Risk Sparking Market Chaos, Citi Warns"},"content":{"rendered":"

G-20 Needs To “Man Up” Or Risk Sparking Market Chaos, Citi Warns<\/a><\/h3>\n
Two days ago, the man who now signs your Federal Reserve notes\u00a0threw cold water on<\/a>\u00a0hopes for a so-called \u201cShanghai Accord.\u201d<\/div>\n
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Over the past month or so,\u00a0anticipation has built among market participants for some manner of coordinated policy response at this weekend\u2019s G20 summit in Shanghai<\/strong>. The hoped for agreement would ideally be something akin to the 1985 Plaza Accord between the United States, France, West Germany, Japan, and the United Kingdom, which agreed to weaken the USD to shore up America\u2019s trade deficit and boost economic growth.<\/p>\n

Calls for coordinated action come on the heels of a turbulent January in which collapsing crude, RMB jitters, and worries that central banks are out of bullets have sowed fear in the minds of investors. \u201cWe remain sellers into strength in coming weeks\/months of risk assets at least until a coordinated and aggressive global policy response (e.g. Shanghai Accord) begins to reverse the deterioration in global profit expectations and credit conditions,\u201d BofA said last week, ahead of the summit.<\/p>\n

\u201cDon\u2019t expect a crisis response in a non-crisis environment<\/strong>,\u201d Lew said in an interview broadcast Wednesday with David Westin of Bloomberg Television. \u201cThis is a moment where you\u2019ve got real economies doing better than markets think in some cases.\u201d<\/p>\n