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| Version 3 | Version 4 |
|---|---|
| Shares fall after bail-out fails | Shares fall after bail-out fails |
| (10 minutes later) | |
| European and Asian markets have fallen sharply on news the Senate has rejected the US carmaker bail-out package. | European and Asian markets have fallen sharply on news the Senate has rejected the US carmaker bail-out package. |
| Japan's Nikkei share index fell 484.68 points, or 5.6%, to 8253.87, while Hong Kong's Hang Seng index sank 6.9%. Other regional markets also fell. | Japan's Nikkei share index fell 484.68 points, or 5.6%, to 8253.87, while Hong Kong's Hang Seng index sank 6.9%. Other regional markets also fell. |
| In Europe, shares were also lower. The FTSE 100 fell 3.6%, the Cac 40 dropped 5.1% and the Dax was down 4%. | In Europe, shares were also lower. The FTSE 100 fell 3.6%, the Cac 40 dropped 5.1% and the Dax was down 4%. |
| Following the market falls the Japanese government announced a 23 trillion yen (£170.8bn; $254.6bn) stimulus package. | Following the market falls the Japanese government announced a 23 trillion yen (£170.8bn; $254.6bn) stimulus package. |
| The package is designed to boost employment, encourage lending and inject capital into financial markets. | The package is designed to boost employment, encourage lending and inject capital into financial markets. |
| Ten trillion yen will go on tax breaks and public financing while 13 trillion yen will be used to prop up financial markets. | Ten trillion yen will go on tax breaks and public financing while 13 trillion yen will be used to prop up financial markets. |
| Worried markets | Worried markets |
| The impact of the failure to agree a bail-out for the US carmakers Chrysler, Ford and General Motors is being felt around the world. | |
| "Today, the main thing is the uncertainty around the auto industry and whether or not it will go bust. This has markets worried," said Bernard McAlinden at NCB Stockbrokers. | "Today, the main thing is the uncertainty around the auto industry and whether or not it will go bust. This has markets worried," said Bernard McAlinden at NCB Stockbrokers. |
| If they do go under, the European and Asian carmakers will be affected. | If they do go under, the European and Asian carmakers will be affected. |
| "If one of the big auto companies goes bust in the US, this could see a collapse in the entire supply chain. Groups like BMW, Honda and Nissan rely on this supply chain and they would suffer," said Heino Ruland at FrankfurtFinanz. | "If one of the big auto companies goes bust in the US, this could see a collapse in the entire supply chain. Groups like BMW, Honda and Nissan rely on this supply chain and they would suffer," said Heino Ruland at FrankfurtFinanz. |
| But it's not just the carmakers that have driven markets down. | But it's not just the carmakers that have driven markets down. |
| News that Bank of America plans to cut 35,000 jobs has also pushed financial stocks lower across Europe. | News that Bank of America plans to cut 35,000 jobs has also pushed financial stocks lower across Europe. |
| Stronger yen | Stronger yen |
| In Japan, shares in carmakers Toyota, Honda and Nissan all fell by at least 10%. | In Japan, shares in carmakers Toyota, Honda and Nissan all fell by at least 10%. |
| Japanese exporters were also driven lower as the dollar sank to below 89 yen, a 13-year low. | Japanese exporters were also driven lower as the dollar sank to below 89 yen, a 13-year low. |
| The sharp drop in Asian shares has wiped out gains made during the last week. | The sharp drop in Asian shares has wiped out gains made during the last week. |
| "Investors used the botched US auto bail-out deal as an excuse to pocket the recent gains," Arch Shih at Taiwan Securities said. | "Investors used the botched US auto bail-out deal as an excuse to pocket the recent gains," Arch Shih at Taiwan Securities said. |
| And the prospects for Wall Street are not good. | And the prospects for Wall Street are not good. |
| "It's a very bad sign. US stocks will likely nosedive," said Yasutoshi Nagai at Daiwa Securities. | "It's a very bad sign. US stocks will likely nosedive," said Yasutoshi Nagai at Daiwa Securities. |