Geithner Calls for Current Account Targeting

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Hello, I'm Saijal Patel from CNBC and you're watching “Asia Market Daily”.

U.S. treasury secretary Tim Geithner says there's broad consensus building for a plan to avoid excessive current account surpluses, as a way to rebalance global economies.

The issue will be discussed at the G20 heads of state meeting - which begins in Seoul on Thursday.

But Geithner admits countries are unlikely to agree to specific targets.

(SOT) U.S. Treasury Secretary, Timothy Geithner:

"What we spent some time discussing this morning was how to build a framework for cooperation, and reduce the risks that future growth is imperiled by the reemergence of large external imbalances. Or that future financial stability is jeopardized by that. This is not something that is amenable to limits or targets."

Geithner made those comments at a weekend APEC meeting in Japan - where finance ministers complained about the U.S. Federal Reserve's latest stimulus package, saying it's resulting in huge capital flows into the Asia-Pacific region.

Meantime, economics Nobel Laureate Robert Mundell supports the U.S. idea of current account targeting.

He says it's the best way to avoid competitive devaluations.

(SOT) Robert Mundell, Professor, Columbia University:

“This is a much better approach to the problem of the global, international problem of imbalances than the, trying to push China into a changing, a big change in the exchange rate. This would be colossal. This would be very, very bad for China and it makes it very bad for the Government, very difficult for any appreciation would do untold damage to the Chinese economy and I don't think the Americans really realize that”.

And that wasn't the only support Professor Mundell provided, he also gave China's exchange rate policy a big backing.

(SOT) Robert Mundell, Professor, Columbia University:

“I would say I came in china in 1995 and over that period I've argued that the best thing, the best policy for China is to fix the yuan to the dollar and let that be the monetary policy. Now they did that for a long time, and then they allowed some appreciation under pressure, but the best thing for china and China's growth is to keep exchange rate constant and to work within that.”

Staying in the region, the third China-UK Economic and Financial Dialogue kicks off in Beijing tomorrow - with officials from the two nations to share their views on top economic issues.

UK Prime Minister David Cameron is leading Britain's largest-ever business delegation to China - and hopes the trip will result in new deals, which will help UK exporters.

Chinese Vice Premier Wang Zi-san and UK Treasury Chief George Osborne will co-chair tomorrow's meeting.

The strategic talks are significant, because the UK is the only European country which holds economic talks with China, at the Vice-Premier level.

The Dialogue was established at the China-UK Summit in January 2008.

And finally, tens of thousands of people filed through the gates of the Taipei International Flora Expo over the weekend - to enjoy the colorful event.

The Expo features 14 exhibition halls, spread over 91 hectares, and showcases some 30 million flowers.

And it's not only the orchids which are on show, the Expo also aims to teach visitors about sustainability.

(SOT) Doeke Faber, President of the Executive Committee of the International Association of Horticultural Producers:

“The Expo has set an example of how green cities should be built. This is an Expo that shows the best there is in terms of landscaping and design.”

And those designs have clearly impressed visitors, with some of the multicultural garden displays even showcasing energetic dancers.

(SOT) Huang Cheng-Yung, Visitor:

"I want to look at the plants and the landscaping, for research, and also take some photos for research."

(SOT) Chen Mei-Jung, Visitor:

"This is a rare opportunity. I have visited the Flora Expo in Japan and Kunming before, so I am very curious how this Expo compares. Since this is an international event in Taipei, I think it is worth to take a look.”

The Taipei city government is expecting eight million people to visit the six-month long expo, bringing in an overall profit of 11 billion Taiwan dollars.

That's the latest “Asia Market Daily”.

I'm Saijal Patel from CNBC, enjoy the rest of your night.

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