UK chancellor on threats to world economy and yuan trade deal

SHOTLIST 1. George Osborne, Chancellor of the Exchequer of the United Kingdom walking to the podium at the Asian Financial Forum 2. Various of audience members 3. Wide of Osborne 4. SOUNDBITE (English) George Osborne, Britain's Chancellor of the Exchequer: "The risks faced by the global economy have increased significantly over the past year. The capacity of the IMF may also need to rise to ensure those risks can be addressed, but this cannot be a substitute for action by the eurozone. Britain stands ready to play its part. And we must also ensure that global capital markets are underpinned by global rules for financial regulation enforced by strong global institutions. " 5. Various cutaways of reporter taking notes 6. Wide of Osborne at podium 7. SOUNDBITE (English) George Osborne, Britain's Chancellor of the Exchequer: "It reflects London's strength in product development, its regulatory structure and the depth, breadth and international reach of our financial markets. We are by some distance the world's largest foreign exchange market, and the growing use of RMB in these global markets will bring substantial benefit to Chinese economic development and the wider world economy. It is a reflection of China's increase in influence and share of global GDP, and its a step towards greater capital convertibility." 8. Wide of Donald Tsang, Chief Executive of Hong Kong, speaking at podium 9. Close of audience member 10. SOUNDBITE (English) Donald Tsang, Chief Executive of Hong Kong "We will closely monitor the developments in Europe and the US as these will inevitably impact on our region. In the meantime, we are seeking ways to reduce our exposure to turbulence in the global environment. One way to achieve this, is to develop Asia's domestic markets. This would ease the heavy dependence on exports to the West, and nurture new sources of growth." 11. Cutaway of audience 12. Wide pan of the forum STORYLINE British and Hong Kong leaders said on Monday that they would team up to develop London into an international trading centre for China's currency. British Treasury chief George Osborne said in Hong Kong that his trip to Asia this week furthers dialogue with Chinese authorities and Chinese and British banks "on establishing London as a new hub for the renminbi market as a complement to Hong Kong." "We are by some distance the world's largest foreign exchange market, and the growing use of RMB in those global markets will bring substantial benefit to Chinese economic development and the wider world economy," said Osborne, speaking at the fifth Asian Financial Forum which opened Monday in Hong Kong. He also said he welcomed the decision made by Hong Kong's government to extend the operating hours of its RMB settlement system, of which London is the key beneficiary. The object was to expand the volume of bilateral business and trade, Osborne added. Hong Kong's leader, Chief Executive Donald Tsang said a new private sector-led group will be set up to look at strengthening ties between Hong Kong and London in terms of settlement systems, market liquidity and the development of renminbi financial products. Both Osborne and Tsang expressed concerns over the new developments in the European debt crisis. Asian stocks sank Monday after a ratings downgrade rattled Europe and crucial talks aimed at nudging Greece toward solvency were mired in disagreement. "We will closely monitor the developments in Europe and the US as these will inevitably impact on our region. In the meantime, we are seeking ways to reduce our exposure to turbulence in the global environment," said Tsang. He added that one of the ways to establish greater security was to develop Asia's domestic markets. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/1c0c2ef21e00fc616eed8ba1b9ed5666 Find out more about AP Archive: http://www.aparchive.com/HowWeWork