Macq-ro insights:G20in Shanghai,policy co-ordinationeasy to agree on but hard to do,or easy to do but hard to agree on.

Event

G20finance ministers and central bankers meet in Shanghai onFriday/Saturday amid weak global growth and turbulent markets.

Impact

Hopes of a grand deal reminiscent of the 1980s Plaza Accord have faded ondownbeat assessments from key participants, including the hosts. The simpleproblem is that the most obvious palliative, fiscal easing, is the hardest toimplement, while the more difficult remedies to figure out, monetary and FXpolicy, are easier to implement.

Outlook

Expect soothing words, especially over exchange rates, but little concreteaction. However the meeting might open the door for greater future cooperation,and given low expectations could boost risk assets.