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/7645645.stm

The article has changed 26 times. There is an RSS feed of changes available.

Version 15 Version 16
US shares fall in opening trading US shares fall in opening trading
(10 minutes later)
US shares have fallen in early trading ahead of a key vote in the US Senate on a revised version of the $700bn (£380bn) bank rescue plan.US shares have fallen in early trading ahead of a key vote in the US Senate on a revised version of the $700bn (£380bn) bank rescue plan.
Despite hopes that enough changes have been made to get the bill passed, investors remain nervous.Despite hopes that enough changes have been made to get the bill passed, investors remain nervous.
If the Senate does approve the bill it will still have to go to the House of Representatives, which voted against the first version on Monday.If the Senate does approve the bill it will still have to go to the House of Representatives, which voted against the first version on Monday.
Wall Street's main Dow Jones index was down 100 points in initial exchanges. Wall Street's main Dow Jones index was down 119 points in initial exchanges.
In Europe shares were mixed, with the UK's FTSE 100 rising while Germany's Dax fell.In Europe shares were mixed, with the UK's FTSE 100 rising while Germany's Dax fell.
Mixed pictureMixed picture
As the Senate prepares for the crucial vote, the global markets have reacted as follows: class="bulletList">
  • The UK's FTSE 100 was up 77 points, or 1.6%, at 4,977 in early afternoon trading in London
  • Germany's Dax was down 38 points, or 0.7%, at 5,793, although the fall was intensified by carmaker Daimler dropping 4.5% on fears of a profit warning
  • France's Cac 40 was up 1.6 points, or 0.04%, at 4,039, after earlier posting minor falls
  • Earlier on Wednesday, Japan's Nikkei index had ended up 1% while Australia's main index closed up 4%
  • On Tuesday, the Dow Jones index of top US shares closed up 4.7%
    		• As the Senate prepares for the crucial vote, the markets have reacted as follows:
      class="bulletList">
    • Dow Jones down 119 points or 1.1% to 10,732 in early trading on Wall Street
    • Nasdaq down 20 points or 1% to 2,073
    • The UK's FTSE 100 was up 77 points, or 1.6%, at 4,977 in afternoon trading in London
    • Germany's Dax was down 22 points, or 0.4%, at 5,809, although the fall was intensified by carmaker Daimler dropping 4.5% on fears of a profit warning
    • France's Cac 40 was down six points, or 0.15%, at 4,026, after earlier posting minor falls
    • Earlier on Wednesday, Japan's Nikkei index had ended up 1%, while Australia's main index closed up 4%
    'More credibility'
    UK stocks were also lifted by news the Bank of England is to pump a further $30bn (£17bn) into the money markets.
    World News America's Jennifer Copestake interviewed voters in Poplar Bluff, Missouri about the rejection of the bail-out plan.
    And UK banks Lloyds TSB and HBOS rose strongly - up 8.5% and 7.3% respectively - after Prime Minister Gordon Brown said he was confident Lloyds TSB's takeover of HBOS would go ahead.
    In Brussels, European Union President Jose Manuel Barroso said member states had to start working closer together to help tackle the continuing financial crisis.
    "We are asking and urging member states for closer cooperation," he said.
    "It is critically important for confidence in the markets.
    "It's not just a problem of injecting liquidity, we also need to inject credibility in the European response."
    Political momentumPolitical momentum
    The new US package is broadly similar to the first, but includes new measures to help gain Congress's backing.The new US package is broadly similar to the first, but includes new measures to help gain Congress's backing.
    class="lp" href="http://news.bbc.co.uk/1/hi/talking_point/default.stm">HAVE YOUR SAY Banks are now crying that they have 'no money to lend" due to their over exposure in the US mortgage scandal.Chris, San Francisco class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=5388&edition=2&ttl=20081001122342">Send us your comments World News America's Jennifer Copestake interviewed voters in Poplar Bluff, Missouri about the rejection of the bail-out plan.
    One of the new clauses will raise the government's guarantee on savings from $100,000 (£56,000) to $250,000.One of the new clauses will raise the government's guarantee on savings from $100,000 (£56,000) to $250,000.
    To get through the Senate, the bill will require the backing by 60 of the 100 senators.To get through the Senate, the bill will require the backing by 60 of the 100 senators.
    However, it will then have to return to the House of Representatives on Thursday.However, it will then have to return to the House of Representatives on Thursday.
    The BBC's Jonathan Beale, in Washington, says a positive vote in the Senate is likely to give the bill momentum when it goes back to the House. "Blind faith doesn't work this time after Monday's disappointment," said analyst Andre Bakhos, president of Princeton Financial Group.
    "People are cautious and they lack confidence that a bailout plan will be a one-stop solution. It won't be."
    'Responsible bill''Responsible bill'
    The BBC's Jonathan Beale, in Washington, says a positive vote in the Senate is likely to give the bill momentum when it goes back to the House.
    HAVE YOUR SAY Banks are now crying that they have 'no money to lend" due to their over exposure in the US mortgage scandal.Chris, San FranciscoSend us your comments
    Presidential candidates John McCain and Barack Obama, who both support Mr Bush's efforts to bail out the economy, say they will return from campaigning to vote in the Senate.Presidential candidates John McCain and Barack Obama, who both support Mr Bush's efforts to bail out the economy, say they will return from campaigning to vote in the Senate.
    And senior Democrats have pledged to find a bipartisan solution.And senior Democrats have pledged to find a bipartisan solution.
    "Working together, we are confident we will pass a responsible bill in the very near future," Senator Harry Reid and House of Representatives Speaker Nancy Pelosi wrote to President George W Bush.
    However, some members of Congress continue to press for more fundamental changes, such as insurance for bad loans, rather than the removal of the loans from the books of financial companies, says the BBC's Americas editor Justin Webb.However, some members of Congress continue to press for more fundamental changes, such as insurance for bad loans, rather than the removal of the loans from the books of financial companies, says the BBC's Americas editor Justin Webb.
    On Tuesday President Bush had warned of "painful and lasting" consequences for the US should Congress fail to agree a rescue plan.On Tuesday President Bush had warned of "painful and lasting" consequences for the US should Congress fail to agree a rescue plan.
    Analysts say the Senate is more likely to pass the bill because senators are not facing the same pressure from voters - who are generally opposed to the bailout - as members of the House.Analysts say the Senate is more likely to pass the bill because senators are not facing the same pressure from voters - who are generally opposed to the bailout - as members of the House.
    All representatives face re-election in November compared with only one-third of senators.All representatives face re-election in November compared with only one-third of senators.
    'More credibility'
    UK stocks were also lifted on Wednesday by news the Bank of England is to pump a further $30bn (£17bn) into the money markets.
    And UK banks Lloyds TSB and HBOS rose strongly - up 8.5% and 7.3% respectively - after Prime Minister Gordon Brown said he was confident Lloyds TSB's takeover of HBOS would go ahead.
    In Brussels, European Union President Jose Manuel Barroso said member states had to start working closer together to help tackle the continuing financial crisis.
    "We are asking and urging member states for closer cooperation," he said.
    "It is critically important for confidence in the markets.
    "It's not just a problem of injecting liquidity, we also need to inject credibility in the European response."