BRICs warn soaring commodity prices threaten financial stability

Ministers from Brazil, Russia, India and China are calling for stricter regulation of derivative markets as volatile commodity prices pose a threat to financial stability.

The leaders of the BRIC nations, meeting at a summit in China, warn commodity importers such as China and India are struggling with spiking prices while Russia and Brazil - major exporters - could be hit by a drop in demand which hurts their commodity-fuelled economies. According to Bloomberg, Russian deputy prime minister Sergei Ivanov says oil prices over $100 a barrel are discouraging Russia from diversifying its economy. He warns the current price is unsustainable and Russia's budget will fall into a deficit when it drops. Meanwhile Chinese president Hu Jintao is calling for "more...