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CNN Saturday Morning News
Group of Seven Economic Summit Wraps Up Today
Aired February 07, 2004 - 09:39 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FRANK BUCKLEY, CNN ANCHOR: The Group of Seven economic summit wraps up today with representatives hopeful they can reach agreement on some key points.
For more, we head to Boca Raton, Florida, and our Kathleen Hays. Kathleen?
KATHLEEN HAYS, CNN CORRESPONDENT: Hi, Frank.
Well, here I am sitting in the midst of a beautiful Florida morning. The Boca Resort and Golf Club, historic building, built in 1926. What better place for representatives of the world's Group of Seven richest nations to meet?
You remember, of course, the G-7 includes the United States, Japan, Germany, France, United Kingdom, Italy, and Canada. Russia an unofficial member, and China, one of the most important economies of the world, not a member yet, so not really in this, in the mix today.
This is a prelude, actually, to the meeting of heads of states. The G-8 summit in early June to be held in Sea Island, Georgia. But these are the central bankers, like Alan Greenspan, the finance chiefs, like Treasury Secretary John Snow, all getting together to talk about global growth in particular, also the weak dollar, because that figures into that growth occasion.
And remember, growth is so important. Growth creates jobs, growth creates wealth, growth in the economy also helps politicians get reelected. So there is a lot at stake in this meeting.
And, of course, Treasury Secretary Snow held bilateral meetings with all the other G-7 counterparts yesterday against the backdrop of the January jobs report. The White House, President Bush, Treasury Secretary Snow both saying it was an encouraging report. Wall Street really didn't think so. Not enough job growth. Too weak growth in wages.
And in fact, the U.S. dollar got weaker when they saw that report. The weak U.S. dollar an issue here because for the United States, it's been good, it helps exporters sell their goods overseas. Eventually it might even help the manufacturing sector create some jobs. Not seeing that quite yet.
For our counterparts, though, in Europe and Japan, they're saying, Hey, our exporters are getting hurt by the weak dollar because our currency is getting stronger. This is one of the big issues. They're also complaining from overseas that our budget deficit is too big, and we have too big of a trade deficit. That makes the dollar fall and hurts them.
From our side, Treasury Secretary Snow arguing, Hey, you have to do more to rev up your economies. You have to make the kind of changes, the kind of reforms that are made in the United States. Change your tax laws, change your labor laws, you'll grow faster, when you grow faster, we'll grow faster too. The world will rise up, the dollar will steady.
What's interesting, though, is, coming out of this meeting, we will probably see them putting their arms around each other at the photo-op this afternoon when they issue their communique.
If there is any nuance in here, it could be traders are thinking that they will maybe say something about the dollar not falling further, but they don't want disagreement, because they don't want any sort of -- any kind of chagrin, any kind of distraction or disappointment in the currency market that could really hit the financial markets later this week.
So that's what's on the agenda today. We'll have more later on, Frank.
BUCKLEY: All right, Kathleen, thanks for that insight from Boca Raton, Florida.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired February 7, 2004 - 09:39 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FRANK BUCKLEY, CNN ANCHOR: The Group of Seven economic summit wraps up today with representatives hopeful they can reach agreement on some key points.
For more, we head to Boca Raton, Florida, and our Kathleen Hays. Kathleen?
KATHLEEN HAYS, CNN CORRESPONDENT: Hi, Frank.
Well, here I am sitting in the midst of a beautiful Florida morning. The Boca Resort and Golf Club, historic building, built in 1926. What better place for representatives of the world's Group of Seven richest nations to meet?
You remember, of course, the G-7 includes the United States, Japan, Germany, France, United Kingdom, Italy, and Canada. Russia an unofficial member, and China, one of the most important economies of the world, not a member yet, so not really in this, in the mix today.
This is a prelude, actually, to the meeting of heads of states. The G-8 summit in early June to be held in Sea Island, Georgia. But these are the central bankers, like Alan Greenspan, the finance chiefs, like Treasury Secretary John Snow, all getting together to talk about global growth in particular, also the weak dollar, because that figures into that growth occasion.
And remember, growth is so important. Growth creates jobs, growth creates wealth, growth in the economy also helps politicians get reelected. So there is a lot at stake in this meeting.
And, of course, Treasury Secretary Snow held bilateral meetings with all the other G-7 counterparts yesterday against the backdrop of the January jobs report. The White House, President Bush, Treasury Secretary Snow both saying it was an encouraging report. Wall Street really didn't think so. Not enough job growth. Too weak growth in wages.
And in fact, the U.S. dollar got weaker when they saw that report. The weak U.S. dollar an issue here because for the United States, it's been good, it helps exporters sell their goods overseas. Eventually it might even help the manufacturing sector create some jobs. Not seeing that quite yet.
For our counterparts, though, in Europe and Japan, they're saying, Hey, our exporters are getting hurt by the weak dollar because our currency is getting stronger. This is one of the big issues. They're also complaining from overseas that our budget deficit is too big, and we have too big of a trade deficit. That makes the dollar fall and hurts them.
From our side, Treasury Secretary Snow arguing, Hey, you have to do more to rev up your economies. You have to make the kind of changes, the kind of reforms that are made in the United States. Change your tax laws, change your labor laws, you'll grow faster, when you grow faster, we'll grow faster too. The world will rise up, the dollar will steady.
What's interesting, though, is, coming out of this meeting, we will probably see them putting their arms around each other at the photo-op this afternoon when they issue their communique.
If there is any nuance in here, it could be traders are thinking that they will maybe say something about the dollar not falling further, but they don't want disagreement, because they don't want any sort of -- any kind of chagrin, any kind of distraction or disappointment in the currency market that could really hit the financial markets later this week.
So that's what's on the agenda today. We'll have more later on, Frank.
BUCKLEY: All right, Kathleen, thanks for that insight from Boca Raton, Florida.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
