WASHINGTON, Oct 13, 2008 (AFP) - The US financial crisis may tighten China's grip on the American economy, as Beijing is likely to purchase more US government securities using its ballooning foreign exchange reserves, experts say.

WASHINGTON, Oct 13, 2008 (AFP) - Paul Krugman, winner of the 2008 Nobel Prize for economics, said Monday in an interview with National Public Radio (NPR) that he should have anticipated the current financial turmoil.

'I should have seen it coming,' said Krugman.

SYDNEY, Oct 14, 2008 (AFP) - Australian Prime Minister Kevin Rudd on Tuesday unveiled a 10.4 billion dollar (7.25 billion US) economic stimulus package to counter a slowdown caused by the global financial crisis.

'The global financial crisis has entered into a new dangerous and damaging phase, one that goes to the real economy -- growth and jobs,' Rudd told reporters in Canberra.

TOKYO, Oct 14, 2008 (AFP) - Japan's central bank announced a previously unscheduled monetary policy meeting later Tuesday to review developments in the global financial crisis.

The Bank of Japan (BoJ) policy board will meet from 8:30 pm (1130 GMT) 'to examine recent developments in global financial markets and to discuss monetary control matters,' the central bank said in a statement.

WASHINGTON, Oct 13, 2008 (AFP) - US President George W. Bush and his Treasury Secretary Henry Paulson will both make statements on the economy early Tuesday, the White House and Treasury Department said.

Bush is due to speak at 8:05 am (1205 GMT) Tuesday from the Rose Garden at the White House, it was announced late Monday.

WASHINGTON, Oct 13, 2008 (AFP) - US President George W. Bush and his Treasury Secretary Henry Paulson were Tuesday to unveil details of a comprehensive financial rescue package that includes investing hundreds of billions of government dollars into several troubled banks.

Huge rescue plans drawn up by eurozone governments for banks do not
mean officials have 'carte blanche' to loosen public purse strings, the
European Central Bank's chief economist said Tuesday.

WASHINGTON, Oct 13, 2008 (AFP) - The United States, after saying it plans to buy stakes in banks, was expected Tuesday to unveil specific measures on how it will shore up the banking system and market confidence.

The US Treasury announced on Monday it was gearing up to purchase equity in a 'broad array' of financial firms.

Governments around the globe launched a multi-pronged attack on the
finance crisis, as President George W. Bush and Treasury Secretary
Henry Paulson prepared Tuesday to unveil the next step in the US
response.

HONG KONG, Oct 14, 2008 (AFP) - Hong Kong's financial secretary John Tsang said Tuesday that all bank deposits in the territory would be fully guaranteed until 2010, following turmoil in the international banking system.

'(We will) use the exchange fund to guarantee the repayment of all customer deposits held in authorised institutions in Hong Kong,' Tsang told reporters.