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BARACK Obama today forecast that the "special relationship" with Britain will save the global economy.

The US President agreed with Gordon Brown that the G20 nations need to pump more cash into massive projects to avoid a repeat of the 1930s recession.

"We have always emerged stronger by standing together," he said. "It is not an alliance of interests it is a kinship of ideals which will be renewed.

"We will focus on common ground, not occasional differences. We will move forward with a sense of common purpose."

Mr Brown told him: "Your first 70 days in office have changed America and changed America's relationship with the world.

"Ours is not an alliance of convenience but a partnership for progress.

"We have some tough negotiations ahead - it won't be easy - but together we can face this unprecedented global crisis."

Mr Brown referred to their "personal friendship" and that was reflected by warm words and body language between the two leaders.

During breakfast talks both agreed that their "critical task" was win unity of purpose "until the burden on ordinary people is lifted."

In Downing Street they attempted to stave off a challenge by France and Germany who want no interference in their own budget-setting.

Both then told the UK Cabinet that there are "difficult challenges" ahead over the next 24 hours.

The scene is set for an Obama-Brown clash with German Chancellor Angela Merkel and French President Nicolas Sarkosy - who has threatened to walk out of the London summit unless he gets his way - who insist on greater regulation of the money markets.

But the confrontation has forced a closer alliance between Washington and the Brown administration.

Aides said that the premier and the president have an "ever-closer" working relationship, strengthened by the threatened showdown.

Mr Brown needs the summit to be a "resounding" success to shore up his battered government and to show the public that he is a major figure on the world stage.

President Obama needs to demonstrate to US voters and backers that he is taking the lead in the global crisis.

But there are competing demands from other G20 member states.

Russia and China will insist on a greater say in international economic affairs in return for support for a new aggressive military strategy in Afghanistan.

President Obama will meet Russia Dimitry Medveded and China's Hu Jintao before tonight's summit dinner in Buckingham Palace.

Despite potential difficulties, the G20 leaders are expected to more than double the £175 billion available to the International Monetary fund to rescue countries pushed to the brink of financial meltdown.

President Obama and wife Michelle last night flew into Britain and overnighted in London amid unprecedented security operations.

In central London and Westminster police and joint Anglo-US security units were on full alert for a terrorist attack, with helicopters over the city centre and armed patrol boats in the Thames.

The Metropolitan Police also cordoned off major arteries to control a series of marches and demonstrations by anarchists, anti-capitalists, Muslim organisations and anti-war protesters.

All police leave in the capital has been cancelled, with the focus today on the US Embassy and Trafalgar Square, and the City.

* The G20 leaders run economies which between them account for more than 80 per cent of world trade and financial output.