Britain and France promised to address financial market issues on Thursday and urged banks to be transparent about the impact of the credit crunch on their operations. British Prime Minister Gordon Brown described his relationship with President Nicolas Sarkozy as a strong alliance during Sarkozy's two-day visit to Britain. Both leaders agreed to work towards expanding the U.N. Security Council to include permanent seats for Germany, Brazil, India, Japan, and representation for Africa. The atmosphere between the two leaders was notably positive, in contrast to past tensions in Anglo-French relations. The leaders exchanged compliments during a press conference held at Arsenal's stadium in north London. The team is overseen by Arsene Wenger, a Frenchman, and includes several players who speak French in its roster. Sarkozy, feeling emotional, praised the warm reception given to his new wife, Carla Bruni, who is a model-turned-singer and whom he recently married after a whirlwind romance that affected his popularity in the polls. World leaders are working to ease concerns about a potential global economic downturn caused by a credit crunch resulting from a U.S. housing loan crisis. However, wealthy nations have not yet reached an agreement on a unified plan of action. Brown and Sarkozy stated that they agreed on the importance of increased transparency in financial markets to ensure that banks disclose the full extent of write-offs in a timely manner. Banks have recorded losses of more than $125 billion in assets as a result of the credit squeeze. Some estimates suggest that bad debts on banks' balance sheets could be as high as $600 billion. To boost confidence among commercial banks hesitant to lend to each other, central banks have injected cash into the financial system. The two leaders called for further discussions with the United States and other countries to address the crisis. In a speech in London's financial district, Sarkozy expressed concern that the euro was too strong compared to the U.S., Japanese, and Chinese currencies, which he felt did not accurately reflect the strength of their economies. He has frequently expressed his dissatisfaction with the euro's increasing value, which reached a peak above $1.59 last week, as it negatively impacts French exporters. Sarkozy also expressed worry over the high prices of oil and other goods. Although Britain and France hold permanent seats on the U.N. Security Council, attempts to expand its membership have been stalled. Brown and Sarkozy proposed the idea of granting some countries longer, renewable terms on the council, potentially leading to permanent seats. Sarkozy is aiming to strengthen ties with Britain in addition to the longstanding Franco-German partnership that has historically steered the European Union. Analysts suggest that the reason for this may be his strained relationship with German Chancellor Angela Merkel. Britain has faced criticism in Brussels for not fully integrating into the European Union and abstaining from adopting the common currency, with Brown often being a target of such criticism. However, he showed solidarity with Sarkozy during a joint press conference. Brown emphasized the importance of Britain and France being at the center of a reformed, open, and globally engaged Europe. The two leaders agreed to take action on various issues, including enhancing trade between wealthy and impoverished nations, cracking down on illegal immigration, addressing climate change, and facilitating dialogue between China and Tibet to resolve the ongoing crisis.