angela merkel is here, german chancellor and she is visiting the area.ve more of a schedule of what will be going on. at lunchtime, they will be discussing the economy. it is expected at 3:00 or 4:00 we get a statement on the press conference. tonight in the evening there will be a first day conference. you mentioned hu jintao, he is the big absence that is felt. everybody has been talking about that this morning. what consequences will that have? it will have affects on issues like currency not officially on the agenda. will this, of course, be discussed in a different way? his delegation is here, but his presence would have be been different. there is speculation of a draft of the final communique coming out from reuters saying that the g-8 has not found any official decision on the environment. so that is quite an important thing. if it were to be true. but our cnbc has spoken to canadian officials that say that that is not true. so it's still to be understood what impact that will have on the environment. so this is really what's getting the most att

angela merkel is advocating for an exit strategy. for the first time, they agreed the rich countries should bear the brunt of global greenhouse gas emissions and pledged to limit global warming to not more than two degrees celsius. >> this is the first time this has ever happened. this is very significant that even during a difficult time, people want to look forward. this will be a huge part of economic development in the future. we will be more certain about what we intend to do. >> president obama is no longer dragging his feet on climate change unlike president bush. the next that this to go beyond g-8 and get other major nations on board. >> president hu jintao left early to return to china and where his government says that the western province of xinjian is now under control. we have one of the few journalists in the provincial capital, urumqi. >> of thousands of paramilitary troops arrive. they want the locals to know that the of government is in control. for many han chinese, their presence brought relief. >> the people here

angela merkel says china's proposal says this has not been a target at this point.what china interviews, perhaps not a leader -- although britain expressed more caution, prime minister gordon brown says replacing the dollar could hamper any global economic recovery. let's get more on that. steve sedgwick is once again on the ground. and steve, there's said to be mixed views of how effective this g-8 has not or hasn't been. >> let's address that first issue first of all that you mentioned about the dollar. according to gordon brown, there was no real debate about the role of the dollar. it simply was not on the agenda this time around. and with hu jintao not here, it was unlikely it was going to engage more traction. the chinese have $2 trillion worth of reserves and 70% of that is stuck in the dollar, whether they like it or not, for the short-term. this wasn't just a g-8 conference. it was g-el plus g-35 and today, the key development issues has brought in a whole load of countries between the imf, the australian countries. was it successful or not? that remains to

angela merkel has been unwilling to bst -- stimulate the german economy. the french are not exactly allies. there is always an edgy retionship there. what can the u.s. eect to get, especially with the middle st, the economy aniran, out of this summit? >> ipect the president's advisers will be telling him play defense. the's not a lot to be gained here, particular since the g8 and key members of the g8 ve already taken the drama away from this meeting putting much emphasis on the g20 meetings i london in ail and now the one to come in pittsburgh in th fall. so, there's not much they can do. the g8uit statement onran will be an indicator of the way politics are moving onhat i uld expect a statement that goes a little biturther in condemng iran than has been the case in the past. i think the russians will move a little bit on that but other than the iran statement, i don't see that much will come o of this eetingother than the hes trying to avoid being photograed withbeusconi. >> w has the most interesting suntan since stromthurmond. thank you very much. >> a

angela merkel and the finance minister have in the past opposed such solutions. >>> also, investors shrugged off lower than expected figures from sweden. the bank took a hit from the eastern europe ap economy. rising loan losses were responsible for a net loan loss. iceland announced a $2.1 billion plan to recapitalize its banking sector. three new banks will receive fresh new capital. creditors of the old banks will be offered majority equity stakes in the new banks. the deal is the latest in a series of steps aimed at restoring trust in iceland's national system and restoring its economy. >> here an update on the jakarta blast. police confirmed that the twin attacks on two luxury hotels mirrored previous bombings by the militant jemaah islamiyah group. firms are trying to reconstruct the bombings. under the shadow of the bombings, asian foreign ministers met on sunday, ahead of thursday's regional forum. the biggest security dialogue. >>> meanwhile, indonesia's trade minister said the bombings won't have an impact on the country's economic outlook. don't miss our live interview next hour.

everyone's yet to be convinced that the stimulus still worked, let alone being withdrawn as perhaps angela merkelmight have mooted at one stage. and we've still got enormous issues on the table, too, including climate change, including aid, including free trade as well, and president obama's going to be trying to push a few of those, indeed, tomorrow and beyond. back to you guys. >> all right, steve, thank you very much. one thing you don't want to make journalists do is drive four hours round-tripto get to the summits that they have to cover. not a good idea. >>> there's a lot of chatter right now on the street, a lot of people looking at charts, trying to figure out where we are in this market. there's a formation that chart-watchers keep an eye on called a head-and-shoulders formation, which can signal a top in the market. this is the s&p year to date, and some people are noticing a head-and-shoulders formation forming right now. there's the left shoulder. here's the top. now, if you thought the market was going higher, you'd want to see another top over here, but now they've seen a top here,

in germany, angela merkel receives flowers on her 55th bith day.h a texas flag. and in india, a monkey joins a

. >> michael, angela merkel is out with some comment, obviously her final press conference after thelking about this idea of some other dominant world currency is not yet practical relevance in the near future. if so, why do we talk so much about it? >> because there are so many dollars held offshore. it's not just china. it's other sovereigns that have developed an enormous treasure trove of petro dollars as well as u.s. dollars. they hold these positions. the threat is they could dump them if they're not happy. that's unrealistic threat, however, because of course that would be basically biting the hand that feeds you. so they've they put off discussing this from the g-8 and they're bound to back at the g-20 later this year. >> it made sense, nobody's been talking about china manipulating their currency, as long as they're on the attack with us. it could be as simple as that, couldn't it? >> absolutely, joe. i mean, china wants to have their cake and eat it, too. they wanted to be able to intervene in the markets, develop these what they consider to be now national wealth, not just

there is still a commitment to finishing the stimulus that has been started and discussing what angela merkel germany calls an exit strategy for getting out of that stimulus activity. but the white house told of yesterday and briefings, which was also backed up by the g-8 statement, that the leaders agree it is too early to start implementing those exit strategies. but it is time to talk about it. host: 1 all is said and done, what will the history books say -- when all is said and done. >> a good question. i think it would say certainly the united states, a new president, showed there was a change of policy in climate. the fact that obama's administration agreed to the g a to bowl, or 88 goal of keeping global warming -- not allowing, shall we say, exceed 2 degrees celsius over industrial levels is a huge shift. and i think the history books will probably know that environmentalists say that as a major change and something that will help -- deal at copenhagen later this year. i think that will certainly go down. on the economy, to be honest, i think the g-8 is becoming less and less of a pla

you don't see angela merkel, you see sarkozy warming up to the idea that -- up to the idea of a skimmerg. i think they are saying man, throttle back spending and cut taxes in european countries while we are talking about raising taxes and giving government more involved. it's amazing. >> clayton: we don't talk about africa alive. certainly we have the g-8 summit recently. a lot of critics and you know what? the g-8 is missing something in our modern times. we need more people, more players at the table. africa is a big part of this. the president said in his trip there he hoped africa would be an effective partner in the future of the world and global economy. it has become an important part of the global economy. you think it's time for africa to take more of a center stage in global politics? >> mike: it should. clayton we have to be careful not to do the traditional let's throw money at africa. the model is rwanda. i was there one year ago at a camp in a method -- had a meeting with the president. president economy will not allow people to come into rwanda to just put money in the ha

angela merkel arrived near electric car so did egyptian president.elf walked in as did prime minister gordon brown and yesterday, kind of an interesting photo on as well. moammar kadafi dictator here as chairman of the african-american union. they were invited to the last day here at the g-8 conference. shook hands with the president last night. a picture you don't often see. so, guys, if you want to get to substance, i'm already for you. i wanted to get that juicy stuff off the top. brian: g-8 summit. what is solved? what is signed, what is delivered? have we handled the issue of global warming yet? >> well, the g-8 conference is historically famous for statement upon statement upon statement. lots of talking. but historically not so much follow-up. now, the obama administration argues that this g-8 conference is different and will be different on the topic of global warming because for the first time all the member nations have agreed to long-range specific targets to reduce co 2, carbon dioxide emissions in the atmosphere cut by 2050. the problem