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/world/asia-pacific/7647662.stm
The article has changed 23 times. There is an RSS feed of changes available.
| Version 18 | Version 19 |
|---|---|
| US markets wary over rescue deal | US markets wary over rescue deal |
| (10 minutes later) | |
| US shares have fallen sharply with investors cautious over whether the House of Representatives would back the revised bank rescue plan. | US shares have fallen sharply with investors cautious over whether the House of Representatives would back the revised bank rescue plan. |
| The House is due to discuss the scheme later, with a vote expected on Friday. The bill successfully passed through the US Senate on Wednesday. | The House is due to discuss the scheme later, with a vote expected on Friday. The bill successfully passed through the US Senate on Wednesday. |
| On Wall Street, the Dow Jones index closed down 348 points, 3.2% at 10,482, dragging European shares lower. | |
| The falls came as France said it would host a summit on the financial crisis. | The falls came as France said it would host a summit on the financial crisis. |
| Oil impact | Oil impact |
| The Nasdaq index slipped 4.5%, 92.7 points to 1,976.7 points in mid-afternoon trading. | |
| Earlier, the UK's FTSE 100 closed down 1.8% at 4,870.3 points while Germany's Dax index shed 2.5% and France's Cac 40 lost 2.3%. | Earlier, the UK's FTSE 100 closed down 1.8% at 4,870.3 points while Germany's Dax index shed 2.5% and France's Cac 40 lost 2.3%. |
| President Bush says the crisis bill must be passed | President Bush says the crisis bill must be passed |
| Sentiment was further hit by glum economic data - showing that the number of people filing for new unemployment benefit claims rose to a seven-year high, while factory orders had seen a steeper-than-expected drop in August. | Sentiment was further hit by glum economic data - showing that the number of people filing for new unemployment benefit claims rose to a seven-year high, while factory orders had seen a steeper-than-expected drop in August. |
| And doubts that the revamped financial bailout plan - even if it was approved - would be enough to avoid a long economic slump and revive energy demand sent oil prices lower. US light, sweet crude fell $4.56 to $93.97. | And doubts that the revamped financial bailout plan - even if it was approved - would be enough to avoid a long economic slump and revive energy demand sent oil prices lower. US light, sweet crude fell $4.56 to $93.97. |
| European talks | European talks |
| The office of French President Nicolas Sarkozy said the special meeting on Saturday would discuss a co-ordinated response to the financial turmoil amongst European members of the G8 ahead of a meeting of world finance leaders in Washington next week. | The office of French President Nicolas Sarkozy said the special meeting on Saturday would discuss a co-ordinated response to the financial turmoil amongst European members of the G8 ahead of a meeting of world finance leaders in Washington next week. |
| UK Prime Minister Gordon Brown is due to attend, together with German Chancellor Angela Merkel, Italian Prime Minister Silvio Berlusconi and European Central Bank President Jean-Claude Trichet. | UK Prime Minister Gordon Brown is due to attend, together with German Chancellor Angela Merkel, Italian Prime Minister Silvio Berlusconi and European Central Bank President Jean-Claude Trichet. |
| Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy Aric Au, Phillip Securities | Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy Aric Au, Phillip Securities |
| But with just two days to go before the talks start, EU members are deeply divided, the BBC's Paris correspondent Emma-Jane Kirby said. | But with just two days to go before the talks start, EU members are deeply divided, the BBC's Paris correspondent Emma-Jane Kirby said. |
| France and Holland favour a European response to help banks hit by the credit crisis while Germany and Luxembourg believe a joint rescue plan is not necessary. | France and Holland favour a European response to help banks hit by the credit crisis while Germany and Luxembourg believe a joint rescue plan is not necessary. |
| European leaders have denied speculation that they wanted to establish a unified 300bn euro ($418.4bn; £236bn) banking rescue deal along the same lines as the US plan. | European leaders have denied speculation that they wanted to establish a unified 300bn euro ($418.4bn; £236bn) banking rescue deal along the same lines as the US plan. |
| The rescue idea was said to be being proposed by France, but Mr Sarkozy insisted that there were no such plans. | The rescue idea was said to be being proposed by France, but Mr Sarkozy insisted that there were no such plans. |
| "I deny both the amount and the principle [of such a plan]," he said. | "I deny both the amount and the principle [of such a plan]," he said. |
| 'Essential' | 'Essential' |
| In the US, a number of changes had to be made to the $700bn (£380bn) bail-out plan in order to help win approval in the Senate. | In the US, a number of changes had to be made to the $700bn (£380bn) bail-out plan in order to help win approval in the Senate. |
| Senator Harry Reid expects the House of Representatives to approve the bill. | Senator Harry Reid expects the House of Representatives to approve the bill. |
| These include raising the government's guarantee on savings from $100,000 to $250,000, tax breaks to help small businesses, expansion of child tax credit, and help for victims of recent hurricanes. | These include raising the government's guarantee on savings from $100,000 to $250,000, tax breaks to help small businesses, expansion of child tax credit, and help for victims of recent hurricanes. |
| President George W Bush said that the package was "essential to the financial security of every American". | President George W Bush said that the package was "essential to the financial security of every American". |
| However, economists said doubts remained about how effective the package would be. | However, economists said doubts remained about how effective the package would be. |
| "Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy," said Aric Au of Phillip Securities in Hong Kong. | "Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy," said Aric Au of Phillip Securities in Hong Kong. |
| McCain and Obama | McCain and Obama |
| US presidential hopefuls John McCain and Barack Obama, who both returned from the campaign trail for Wednesday's Senate debate, voted in favour of the rescue plan. | US presidential hopefuls John McCain and Barack Obama, who both returned from the campaign trail for Wednesday's Senate debate, voted in favour of the rescue plan. |
| Senate majority leader Harry Reid, a Democrat, said he was happy with the result and praised both presidential candidates for voting. | Senate majority leader Harry Reid, a Democrat, said he was happy with the result and praised both presidential candidates for voting. |
| "I think it shows that when we work together we can accomplish good things," he said. | "I think it shows that when we work together we can accomplish good things," he said. |
| Mitch McConnell, leader of Republican senators, was also in jubilant mood. | Mitch McConnell, leader of Republican senators, was also in jubilant mood. |
| "This was a measure that was much needed, to unfreeze the credit markets and get America's economy working again," he said. | "This was a measure that was much needed, to unfreeze the credit markets and get America's economy working again," he said. |