G20 opens door to smaller economies in crisis talks

AFP, Sao Pnulo

A Sao Paulo meeting of key finance officials opened the door slightly Sunday to broadening the club of global economic leadership in an effort to battle a deepening financial crisis.

The finance ministers and central bank governors of the Group of 20 set up the agenda for an emergency summit of its leaders next Saturday in Washington that seeks more participation beyond the wealthiest nations.

The G20, representing the biggest developed and emerging nations, pledged 'all necessary steps" to boost sagging market confidence and to give a bigger voice to developing countries in global economic affairs.

Although no specific proposals emerged, the G20 said in a statement, "We agreed that we must draw policy lessons from the current crisis and take all necessary steps to restore market confidence and stability and to minimize the risk of a future crisis."

The statement said "the global crisis requires global solutions and common set of principles," and added that "we stand ready to urgently take forward work and actions agreed by our leaders. "

John Kirton, director of the G20 Research Group at the University ofToronto, said the G20 "substantially delivered" on its promise to play a role in battling the global economic maelstrom.

France, Australia to work together to calm global crisis

AFP, Sydney

France and Australia are working together to help calm the global financial crisis and push for reforms to prevent a recurrence, French state secretary for overseas affairs Yves Jego said Monday.

The crisis will be on the agenda at talks between Jego and Australian Foreign Minister Stephen Smith when they meet later Monday during a one-day visit aimed at strengthening relations between the two nations.

The two men are due to discuss cooperation between France and Australia in preparation for a G20 summit to be held in Washington later this week aimed at easing the turmoil battering world markets and economies.

"The financial crisis is another reason for France and Australia to boost cooperation and work in closer partnership," Jego told a small group of reporters before the meeting.

"We want a full partnership with Australia as we share a common vision about working with the international community to emerge from the crisis," he said.

French President Nicolas Sarkozy is working hard to help the world emerge intact from the economic firestorm and to push through reforms to ensure that a similar financial meltdown never happens again, Jego said.

HSBC profits rise despite rising US bad debts

AFP,London

Global banking gianr HSBC said on Monday that its pre-tax profits had risen in the third-quarter despite loan write-offs in the United States rising to 4.3 billion dollars (3.3 billion euros).

"Our results reinforce the importance of maintaining focus on HSBC's core strengths of sound liquidity, capital strength, cost discipline and relationship banking built on harnessing the global capabilities of the group," HSBC chief executive Michael Geoghegan said in comments accompanying the British bank's trading update.

"These are times which underscore more strongly than ever the importance of delivering value to our customers as the industry adapts to slower growth and a changing regulatory environment."

HSBC said that loan impairment charges in the United States rose by 700 million dollars from the second quarter.

Warner Brothers to close home video business in South Korea

AFP, Seoul

Hollywood studio Warner Brothers will end its home video and DVD business in South Korea at the end of the year due to rampant piracy, a report said Monday.

"One of the reasons for the pullout is a slump in the video and DVD market, resulting from online piracy and illegal downloading," an official at Warner Brothers Home Video Korea told Yonhap news agency.

The US producer of film and television entertainment will instead focus on its digital distribution pre-DVD' business, the official said.

It is the last remaining Hollywood company to withdraw its home entertainment business from South Korea.

In October the studio announced plans to become the first in Hollywood to make movies available through video-on-demand in South Korea, two weeks before DVD releases.