Money Daily Brief: G20 is world's new economic order

Updated 3:12 p.m. EDT (19:12 UTC)

•G20 is world's new economic order: The G20 will replace the G8 as the world's foremost body for economic coordination. Together, the group  - which includes nations from Argentina to Turkey to India - represents roughly 85 percent of world gross domestic product. Formerly a ministerial-level group, the world financial crises brought on largely by financial practices of G8 nations reinforced the need for wider economic consultation, perhaps including "peer review" of other G20 economies.

•Banker pay in cross hairs: G20 leaders meeting in Pittsburgh Friday have narrowed in on a resolution on limiting compensation for banking executives world wide. A lack of a hard cap on pay is a significant bone of contention for the U.S., where banking chiefs averaged rates far beyond their international peers. Fears that the G20 will impose limits on bankers’ compensation rattled stocks on a day when Asian markets were also hit by investor concerns about the pace of economic recovery.

•Yen surges, sterling slumps: Japan's currency rose against the euro on speculation that Japanese exporters will repatriate profits, taking advantage of a tax-waiving rule change. The dollar was also up against the euro although sterling was set for another heavy loss following a report that Bank of England Governor Mervyn King said the pound's drop would help the United Kingdom's economy rebalance.

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