Finance leaders from the top industrialised nations came together in Tokyo and expressed solidarity in the face of an economic slowdown. They acknowledged that the situation could worsen due to the deteriorating US housing market. Despite a communique stating that economic growth prospects had declined since their last meeting in October, they maintained that the fundamentals were strong and the US economy was likely to avoid a recession. Italian Economy Minister Tommaso Padoa-Schioppa noted a higher level 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 agreed that economic growth in their countries was expected to slow to varying degrees in the short term. They highlighted the serious risks posed by the US property market downturn and the resulting credit tightening, which has hampered the flow of money to consumers and businesses that drive the global economy. Banks burdened with debt are reducing their lending due to increasing losses, mainly from failing U.S. home loans exceeding $100 billion. This has led to concerns about a harmful cycle as consumer spending decreases, causing businesses to downsize and lay off employees. Glenn Maguire, Asia Pacific chief economist at Societe Generale in Hong Kong, pointed out that the G7 did not provide much detail on coordinating efforts to support the economy. He stated that the economic crisis and downturn are mainly due to domestic issues in the U.S. and cannot be solved with a globally coordinated plan. U.S. Treasury Secretary Henry Paulson warned that global markets may experience a lengthy period of instability. In prepared remarks issued after the meeting, Paulson stated that the current financial crisis is severe and ongoing. He also mentioned that as the financial markets recover from this stressful period, there may be continued volatility due to the repricing of risk. The G7 leaders urged banks to disclose their losses fully and strengthen their balance sheets in order to help restore the normal functioning of markets. German finance minister Peer Steinbrueck estimated that writeoffs could amount to $400 billion. The leaders stated in their communique that they will closely monitor developments and take appropriate actions, both individually and collectively, to ensure stability and growth in their economies. Promises to collaborate in order to revive the financial system were met with disagreements regarding fiscal and monetary policies leading up to the G7 meeting. Concerns arose in Europe about the U.S. Federal Reserve's drastic interest rate cuts and fiscal stimulus package, which raised fears of a split between the U.S. and its allies. However, tensions eased after the European Central Bank indicated its willingness to potentially lower rates, aligning with other central banks. French Economy Minister Christine Lagarde praised the ECB's move but expressed a desire for further actions. European leaders were especially worried about the euro's strength against the dollar, as it reached a new high following the Fed's rate cuts in September. However, the currency's value decreased after the ECB changed its stance. Foreign exchange issues were not a priority at Saturday's meeting due to more urgent economic concerns. The communique echoed the October statement, emphasizing the need for China to allow its currency to appreciate. Some G7 leaders believe that China's undervalued currency gives them an unfair advantage in trade, and are urging Beijing to increase domestic investment to help rebalance the global economy. The announcement also encouraged oil producers to increase their production levels following a brief period where oil prices exceeded $100 per barrel last month. Despite a subsequent decrease, prices rose by 4 percent to $91.77 on Friday, marking their largest increase in almost two months, due to supply disruptions and the approaching cold weather in the United States.