LONDON: The warning came just a night before Japan bore its brunt.

British Prime Minister David Cameron on Sunday night issued a stark message warning that the world was facing a second global financial crash.

And his major solution was simple — sign more deals with India and China.

READ ALSO: Japan slides into recession as tax hike takes toll

Cameron said there is now “a dangerous backdrop of instability and uncertainty” that presents a real risk to the UK recovery, adding that the eurozone slowdown is already having an impact on British exports and manufacturing.

Cameron expressed serious worry that “red warning lights are flashing on the dashboard of the global economy” in the same way as when the financial crash brought the world to its knees six years ago.

And on Monday, Japan announced that its economy had once again gone into recession.

Cameron said that eurozone is teetering on the brink of a possible third recession, with high unemployment, falling growth and the real risk of falling prices too. Emerging markets, which were the driver of growth in the early stages of the recovery, are now slowing down.

Despite the progress in Bali, global trade talks have stalled while the epidemic of Ebola, conflict in the Middle East and Russia’s illegal actions in Ukraine are all adding a dangerous backdrop of instability and uncertainty.

Cameron said “Six years on from the financial crash that brought the world to its knees, red warning lights are once again flashing on the dashboard of the global economy . As I met world leaders at the G20 in Brisbane, the problems were plain to see”.

He said “The British economy, by contrast, is growing. After the difficult decisions of recent years we are the fastest growing in the G7, with record numbers of new businesses, the largest ever annual fall in unemployment, and employment up 1.75 million in four years: more than in the rest of the EU put together. But the reality is, in our interconnected world, wider problems in the global economy pose a real risk to our recovery at home. We are already seeing that, with the impact of the eurozone slowdown on our manufacturing and our exports”.

“We cannot insulate ourselves completely, but we must do all we can to protect ourselves from a global downturn. Working through the agenda at the G20, it was clearer than ever how vital it is that we stick to our long-term plan at home and at the same time play our part in the international response to the global challenges on which our economic security also depends”.

Cameron said that at G20, he brought together a crucial meeting between US President Barack Obama and fellow European leaders to insist on urgent progress on a comprehensive EU-US trade deal that could add £10bn to the UK economy alone.