Weekend Update

Power-sharing talks in Zimbabwe are falling apart, as President Robert Mugabe has assigned critical ministries to his own Zanu-PF party. While the opposition MDC has control over economic affairs, Zanu-PF controls the all-important security elements of the police and military. South African President Thabo Mbeki had helped broker the agreement, but he was ousted two weeks ago.

The US announced on Saturday it would remove North Korea from a state sponsors of terrorism blacklist. The North made headlines last week when it threatened to resume its nuclear program, but a deal was struck in recent days outlining a series of verification and disclosure measures.

Finance ministers from Canada, France, Germany, Italy, Japan, UK, and the United States are meeting in Washington this weekend to solve the global financial crisis. The G-7 pledged to take "any necessary steps" to loosen up the credit and money markets. On Friday, Italy's Economy Minister threatened not to sign the draft statement, calling for stronger language of support. The road ahead is still rough.

Looking ahead:

US General Patraues warns of a potential uptick in ethnic violence in Iraq.

GM and Chrysler are in preliminary talks regarding a potential merger that would reshape the American auto industry.

The Federal Reserve issues its so-called Beige Book on Wednesday, outlining the health of the US economy. Needless to say, it should be a page turner.

Also on Wednesday, OPEC issues its monthly report on the oil market and US producer prices are released.