This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7615961.stm
The article has changed 10 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| US market joins world shares down | |
| (about 2 hours later) | |
| Wall Street shares fell 2.4% when trading opened in New York in the midst of the financial turmoil caused by the bankruptcy of Lehman Brothers. | |
| The benchmark Dow Jones index dropped almost 267.8 points at 11,154.2, while the broader S&P and technology-heavy Nasdaq indices sank too. | |
| The UK's FTSE 100 index fell 4.78% in afternoon trade, France's Cac 40 index shed 4.7% and Germany's Dax lost 4%. | |
| Earlier, Asian markets were hit by the news with Australian shares down 1.8%. | |
| Several of Asia's major stock exchanges - in Tokyo, Hong Kong, Shanghai and Seoul - were closed for holidays. | Several of Asia's major stock exchanges - in Tokyo, Hong Kong, Shanghai and Seoul - were closed for holidays. |
| But in Singapore the STI dropped 3.3% to hit a two-year low. | |
| And in Taiwan, the benchmark share index closed down 4%, and in India share prices fell by more than 3.35%. | |
| In markets that were trading, banking, insurance and financial sectors suffered most after Lehman Brothers, the fourth-largest investment bank in the US, said it would file for bankruptcy protection. | In markets that were trading, banking, insurance and financial sectors suffered most after Lehman Brothers, the fourth-largest investment bank in the US, said it would file for bankruptcy protection. |
| In the UK HBOS lost 33%, to 189 pence, on concerns it and rivals face more write-downs and higher funding costs. | |
| HBOS is more reliant than other major UK bank on borrowing in the wholesale markets for funding. | HBOS is more reliant than other major UK bank on borrowing in the wholesale markets for funding. |
| In the light of the fall in the value of its shares, HBOS issued a statement in an attempt to reassure investors. | In the light of the fall in the value of its shares, HBOS issued a statement in an attempt to reassure investors. |
| "HBOS is a strong financial institution. The group has the strongest capital ratio of all the major UK domestic banks. | "HBOS is a strong financial institution. The group has the strongest capital ratio of all the major UK domestic banks. |
| "As we reported at the interim results, we are comfortable with our funding profile. We have access to a diverse range of funding sources and that hasn't changed," it said. | "As we reported at the interim results, we are comfortable with our funding profile. We have access to a diverse range of funding sources and that hasn't changed," it said. |
| 'Dollar rally unsustainable' | 'Dollar rally unsustainable' |
| Gold climbed more than 2%, bought as a haven and knocking the dollar to two-month lows against the yen. | Gold climbed more than 2%, bought as a haven and knocking the dollar to two-month lows against the yen. |
| The dollar fell against a number of currencies, on concerns about the US financial system's stability. | The dollar fell against a number of currencies, on concerns about the US financial system's stability. |
| The dollar fell more than 2% to 105.69 yen, from 107.76 on Friday. The euro rose to $1.4299 on Monday from $1.4215 late Friday in New York. | The dollar fell more than 2% to 105.69 yen, from 107.76 on Friday. The euro rose to $1.4299 on Monday from $1.4215 late Friday in New York. |
| The pound was steady at $1.7954 against the dollar, having earlier hit a two-week high of $1.8128. | The pound was steady at $1.7954 against the dollar, having earlier hit a two-week high of $1.8128. |
| Meanwhile, the Bank of England on Monday injected £5bn (6.3bn euros, $9bn) into short-term money markets, and the European Central Bank (ECB) injected 30bn euros into European money markets to keep them going. | Meanwhile, the Bank of England on Monday injected £5bn (6.3bn euros, $9bn) into short-term money markets, and the European Central Bank (ECB) injected 30bn euros into European money markets to keep them going. |
| Anantha Nageswaran, head of investment research at Bank Julius Baer, said: "The dollar rally over the last two months was unsustainable and it was brought about by short-term liquidation pressures by many hedge funds and because of a mistaken feeling that the US economic numbers had turned the corner." | Anantha Nageswaran, head of investment research at Bank Julius Baer, said: "The dollar rally over the last two months was unsustainable and it was brought about by short-term liquidation pressures by many hedge funds and because of a mistaken feeling that the US economic numbers had turned the corner." |
| Loan fund | Loan fund |
| Lehman Brothers has suffered losses of billions of dollars in the sub-prime crisis, and has seen its share price plummet during recent months. | Lehman Brothers has suffered losses of billions of dollars in the sub-prime crisis, and has seen its share price plummet during recent months. |
| A consortium of international private sector banks and securities firms announced a new $70bn loan fund, intended for use by financial companies to help ease the credit shortage. | A consortium of international private sector banks and securities firms announced a new $70bn loan fund, intended for use by financial companies to help ease the credit shortage. |
| The US Central Bank, the Federal Reserve also made new moves to ease access to emergency credit for struggling financial companies, broadening the types of securities financial institutions can use to obtain emergency loans. | The US Central Bank, the Federal Reserve also made new moves to ease access to emergency credit for struggling financial companies, broadening the types of securities financial institutions can use to obtain emergency loans. |