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| Asia continues plunge in shares | Asia continues plunge in shares |
| (10 minutes later) | |
| Asian stock markets have fallen sharply amid investor panic that global government action might not be enough to stem the financial crisis. | |
| Japan's Nikkei index plunged more than 5% - shattering the psychological 10,000-point barrier for the first time in nearly five years - before rallying. | Japan's Nikkei index plunged more than 5% - shattering the psychological 10,000-point barrier for the first time in nearly five years - before rallying. |
| Share prices in China, Taiwan and South Korea also dropped. The main US index earlier fell 8% before bouncing back. | Share prices in China, Taiwan and South Korea also dropped. The main US index earlier fell 8% before bouncing back. |
| EU finance ministers will meet in a few hours in Luxembourg for crisis talks. | EU finance ministers will meet in a few hours in Luxembourg for crisis talks. |
| Having tumbled 5% on Monday, China's main stock index opened more than 3% lower on Tuesday. | Having tumbled 5% on Monday, China's main stock index opened more than 3% lower on Tuesday. |
| Taiwanese stocks dropped to a four-year low, while Australia's financial market also suffered in morning trading. | |
| In Tokyo, the benchmark Nikkei was down around 2% by 0345 GMT. Companies relying on exports have been hardest hit by the latest plunge, with shares in the electronics giant Sony trading at their lowest price for five years. | In Tokyo, the benchmark Nikkei was down around 2% by 0345 GMT. Companies relying on exports have been hardest hit by the latest plunge, with shares in the electronics giant Sony trading at their lowest price for five years. |
| The continued financial turmoil comes despite a $700bn (£398bn) US bank bail-out, and efforts by several European and Asian governments to protect their banks. | The continued financial turmoil comes despite a $700bn (£398bn) US bank bail-out, and efforts by several European and Asian governments to protect their banks. |
| US President George W Bush has said it will take some time for the rescue plan to restore confidence to the financial system. | US President George W Bush has said it will take some time for the rescue plan to restore confidence to the financial system. |
| 'Apocalyptic tone' | 'Apocalyptic tone' |
| EU leaders have issued a joint statement saying they will take the necessary measures to protect both Europe's banking system and individual depositors. | EU leaders have issued a joint statement saying they will take the necessary measures to protect both Europe's banking system and individual depositors. |
| All 27 EU finance ministers are expected to hold talks in Luxembourg soon aimed at framing guidelines for guaranteeing public savings. | All 27 EU finance ministers are expected to hold talks in Luxembourg soon aimed at framing guidelines for guaranteeing public savings. |
| Stock markets are falling... and it's the troubles of Europe's banks, and the messy response of the authorities, that's to blame Robert PestonBBC business editor Read Robert's blogInteractive map: How European governments have reactedBloomberg: Bail-out not enough | Stock markets are falling... and it's the troubles of Europe's banks, and the messy response of the authorities, that's to blame Robert PestonBBC business editor Read Robert's blogInteractive map: How European governments have reactedBloomberg: Bail-out not enough |
| Since late last week, Ireland, Germany, Greece, Austria and Denmark have declared separately that money held by ailing banks will be safe. | Since late last week, Ireland, Germany, Greece, Austria and Denmark have declared separately that money held by ailing banks will be safe. |
| Analysts say the move has angered fellow EU member states who fear it could prompt savers to transfer their money into guaranteed institutions. | Analysts say the move has angered fellow EU member states who fear it could prompt savers to transfer their money into guaranteed institutions. |
| Luxembourg's Prime Minister Jean-Claude Juncker said no major financial institution would be allowed to fail. | Luxembourg's Prime Minister Jean-Claude Juncker said no major financial institution would be allowed to fail. |
| Jean-Claude Trichet, president of the European Central Bank, added: "We will continue to provide monetary markets with all the liquidity they need for as long as it is necessary." | Jean-Claude Trichet, president of the European Central Bank, added: "We will continue to provide monetary markets with all the liquidity they need for as long as it is necessary." |
| But Europe's fragmented response to the crisis so far has done little to reassure investors, correspondents say. | But Europe's fragmented response to the crisis so far has done little to reassure investors, correspondents say. |
| The strains threatening the continent's economies have been felt most acutely in Iceland, where PM Gier Haarde made a national address warning his country it faced national bankruptcy. | The strains threatening the continent's economies have been felt most acutely in Iceland, where PM Gier Haarde made a national address warning his country it faced national bankruptcy. |
| The BBC's Ray Furlong in Reykjavik said the tone was, at times, apocalyptic. | The BBC's Ray Furlong in Reykjavik said the tone was, at times, apocalyptic. |
| In a late-night session, parliament passed emergency legislation to shore up the country's banking system after the national currency, the krona, fell 30% against the euro on Monday. | In a late-night session, parliament passed emergency legislation to shore up the country's banking system after the national currency, the krona, fell 30% against the euro on Monday. |
| Congress hearings | Congress hearings |
| In the US, both Mr Bush and Ben Bernanke, the chairman of the US Federal Reserve, are scheduled to speak later about the crisis. | In the US, both Mr Bush and Ben Bernanke, the chairman of the US Federal Reserve, are scheduled to speak later about the crisis. |
| Meanwhile, Congress began hearings into the cause of the financial meltdown that triggered the rescue plan. | Meanwhile, Congress began hearings into the cause of the financial meltdown that triggered the rescue plan. |
| Investors have not been bowled over by government intervention | Investors have not been bowled over by government intervention |
| Richard Fuld, the head of collapsed US investment bank Lehman Brothers, said federal regulators knew his firm had, like others, been caught up in a financial tsunami emanating from the mortgage markets. | Richard Fuld, the head of collapsed US investment bank Lehman Brothers, said federal regulators knew his firm had, like others, been caught up in a financial tsunami emanating from the mortgage markets. |
| But Henry Waxman, chairman of Congress's investigating panel, said Mr Fuld had profited from taking risks with other people's money, and that taxpayers were having to bail out the economy as a result. | But Henry Waxman, chairman of Congress's investigating panel, said Mr Fuld had profited from taking risks with other people's money, and that taxpayers were having to bail out the economy as a result. |
| The day after Lehman filed for bankruptcy, the government bailed out the insurance giant AIG, saying it was too big to fail. AIG executives are also testifying. | The day after Lehman filed for bankruptcy, the government bailed out the insurance giant AIG, saying it was too big to fail. AIG executives are also testifying. |
| The FBI is looking at Lehman, AIG and US mortgage giants Fannie Mae and Freddie Mac as part of a probe into possible corporate fraud. | The FBI is looking at Lehman, AIG and US mortgage giants Fannie Mae and Freddie Mac as part of a probe into possible corporate fraud. |
| Meanwhile US utility companies reported a record rise in the number of customers defaulting on their gas and electricity bills. | Meanwhile US utility companies reported a record rise in the number of customers defaulting on their gas and electricity bills. |
| The largest increase in power cut-offs were in the states of Michigan (22%) and New York (17%), although rises were also reported in Pennsylvania, Florida and California. | The largest increase in power cut-offs were in the states of Michigan (22%) and New York (17%), although rises were also reported in Pennsylvania, Florida and California. |
| 'Political commitment' | 'Political commitment' |
| Across Europe, central banks have already offered more than $74bn in short-term loans to banks in an attempt to make cash available. | Across Europe, central banks have already offered more than $74bn in short-term loans to banks in an attempt to make cash available. |
| But while the idea of a European fund to rescue troubled banks has been floated, it has attracted too little support to go any further, says the BBC's economics correspondent Andrew Walker in Washington. | But while the idea of a European fund to rescue troubled banks has been floated, it has attracted too little support to go any further, says the BBC's economics correspondent Andrew Walker in Washington. |
| He also says the financial crisis will come under the microscope at the International Monetary Fund meetings in Washington in the next week. | He also says the financial crisis will come under the microscope at the International Monetary Fund meetings in Washington in the next week. |
| Its analysts will say the global economy has been sandbagged by high commodity prices, the housing slump and the growing financial crisis. | Its analysts will say the global economy has been sandbagged by high commodity prices, the housing slump and the growing financial crisis. |
| IMF economists have already warned of an increased risk of a severe and protracted economic downturn. | IMF economists have already warned of an increased risk of a severe and protracted economic downturn. |
| On Tuesday a banking reform bill is due to go before the UK parliament while German lawmakers are scheduled to hold an emergency session. | On Tuesday a banking reform bill is due to go before the UK parliament while German lawmakers are scheduled to hold an emergency session. |