Finance leaders from the world's top industrialized nations met in Tokyo and expressed solidarity in response to an economic slowdown, acknowledging that the situation could worsen due to the decline in the U.S. housing market. The Group of Seven released a statement noting that economic growth prospects had deteriorated since their last meeting in October, although they believed that the fundamentals were still strong and the U.S. economy was not likely to enter a recession. Italian Economy Minister Tommaso Padoa-Schioppa remarked that there was a greater sense of pessimism and concern compared to the previous meeting. The finance ministers and central bankers from Japan, the United States, Canada, Britain, Germany, Italy and France stated that economic growth in their respective countries was expected to slow to varying degrees in the near future. They highlighted the risks posed by the U.S. property market downturn and the resulting tightening of credit conditions, which has led to a decrease in funding for consumers and businesses that drive the global economy. Banks with high levels of debt have reduced lending due to increasing losses, particularly from failing U.S. home loans exceeding $100 billion. This has led to concerns of a negative cycle as consumer spending decreases, causing businesses to cut back and lay off employees. Glenn Maguire, the Asia Pacific chief economist at Societe Generale in Hong Kong, pointed out that the G7 did not provide much detail on how they plan to support the economy through coordinated action. He believes that the current economic shock and downturn are mainly caused by issues within the U.S. and cannot be solved through a global action plan. U.S. Treasury Secretary Henry Paulson warned that global markets may experience a prolonged period of instability. In prepared remarks after the meeting, Paulson stated that the current financial crisis is significant and ongoing. He mentioned that as the financial markets recover, there will be continued volatility as risk is reassessed. The G7 leaders called on banks to be transparent about their losses and strengthen their balance sheets to help markets function normally. German finance minister Peer Steinbrueck warned that writeoffs could amount to $400 billion. The communique emphasized the importance of closely monitoring developments and taking necessary actions to ensure stability and growth in the economies. Promises to collaborate in fixing the financial system were overshadowed by disagreements on fiscal and monetary policies leading up to the G7 meeting. Concerns arose in Europe about the U.S. Federal Reserve's rapid interest rate cuts and fiscal stimulus package, which threatened to create tensions among allies. However, tensions eased after the European Central Bank indicated it may follow suit in cutting rates, aligning with other central banks. French Economy Minister Christine Lagarde welcomed the ECB's move but called for further action, likening it to the beginning of a symphony where anticipation builds for what comes next. European leaders were concerned about the euro's strength against the dollar, which reached a record high after the Fed began cutting rates in September. However, the currency retreated following the ECB's change of heart. Currency matters were not a priority at Saturday's meeting due to more urgent economic issues. The communique echoed the October statement, emphasizing the need for China to let its yuan appreciate faster. Many G7 leaders believe that China's undervalued yuan gives them an unfair advantage in trade, and have urged Beijing to increase domestic investment to help rebalance the global economy. The declaration also encouraged oil-producing countries to increase their production levels following a temporary rise in oil prices to over $100 per barrel. However, prices have since decreased, but saw a sudden increase of 4 percent to $91.77 on Friday, the largest jump in almost two months, due to supply disruptions and an upcoming cold weather in the United States.