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/7918168.stm

The article has changed 12 times. There is an RSS feed of changes available.

Version 4 Version 5
Economy worries hit global shares US stocks slide to 12-year trough
(about 3 hours later)
Global stocks have fallen sharply on fears the global financial sector could take a further turn for the worse. US stocks have fallen to their lowest level in almost 12 years on fears of continued financial turmoil.
In Europe, the UK's FTSE 100 fell by 4.2%, while Germany's Dax was down 2.8% and France's Cac 40 lost 3.6%. On Wall Street, the Dow Jones opened down 1.8%, falling below 7,000 points first time since October 1997.
Earlier in Asia, Japan's Nikkei index closed down 3.8% at 7,280.15, and Hong Kong's Hang Seng index fell 3.9%. Confidence was hit by a fresh $30bn bail-out of US insurance giant AIG following a record $62bn loss.
Confidence was hit by a fresh $30bn bail-out of US insurance giant AIG, and news that UK bank HSBC aimed to raise £12.5bn from its shareholders. In Europe, the UK's FTSE 100 fell 3.6%, briefly hitting a six-year low. Germany's Dax fell 2.2% and France's Cac 40 lost 3.2%.
Investors were also disconcerted by news that UK bank HSBC is seeking to raise £12.5bn to boost its finances.
'No upturn trigger'
HSBC, Europe's biggest bank, said it would use the money raised from the rights issue to help the bank cope with the effects of the global economic downturn.HSBC, Europe's biggest bank, said it would use the money raised from the rights issue to help the bank cope with the effects of the global economic downturn.
The bank also said pre-tax profits for 2008 were $9.3bn (£6.5bn), down 62% on the previous year after it wrote down the value of US assets by more than $10bn.The bank also said pre-tax profits for 2008 were $9.3bn (£6.5bn), down 62% on the previous year after it wrote down the value of US assets by more than $10bn.
"The big issue [for markets] is the fact that HSBC - one of the biggest and strongest banks around - is having such problems," said Jonathan Jackson and Killik & Co."The big issue [for markets] is the fact that HSBC - one of the biggest and strongest banks around - is having such problems," said Jonathan Jackson and Killik & Co.
"It's difficult to see any trigger for an upturn in the short term," he added."It's difficult to see any trigger for an upturn in the short term," he added.
Meanwhile, US insurance giant AIG announced a record corporate loss of $62bn in the fourth quarter. Earlier in Asia, Japan's Nikkei index closed down 3.8% at 7,280.15, and Hong Kong's Hang Seng index fell 3.9%
Gloomy newsGloomy news
Weak manufacturing figures in both the UK and eurozone also placed downward pressure on European markets.Weak manufacturing figures in both the UK and eurozone also placed downward pressure on European markets.
You're seeing the US is sinking lower and lower, and we're still desperately searching for a bottom John Mar, Daiwa Securities SMBC CoYou're seeing the US is sinking lower and lower, and we're still desperately searching for a bottom John Mar, Daiwa Securities SMBC Co
The Purchasing Managers' Index (PMI), compiled by research group Markit, showed that manufacturing activity fell in February compared with the previous month.The Purchasing Managers' Index (PMI), compiled by research group Markit, showed that manufacturing activity fell in February compared with the previous month.
"Once again, the extreme weakness in manufacturing activity in February was widespread across the eurozone, with all countries seeing a very sharp contraction in activity," said Howard Archer at IHS Global Insight."Once again, the extreme weakness in manufacturing activity in February was widespread across the eurozone, with all countries seeing a very sharp contraction in activity," said Howard Archer at IHS Global Insight.
The figures were particularly badly received because manufacturing activity in both the UK and the eurozone rose slightly in January.The figures were particularly badly received because manufacturing activity in both the UK and the eurozone rose slightly in January.
Weak growthWeak growth
In Asia, weak economic data from China and South Korea underscored fears about the region's export-dependent economies.In Asia, weak economic data from China and South Korea underscored fears about the region's export-dependent economies.
China's manufacturing sector declined further last month, while South Korean imports and exports also slumped. Japan reported a steep drop in car sales.China's manufacturing sector declined further last month, while South Korean imports and exports also slumped. Japan reported a steep drop in car sales.
Monday's shares slide followed a poor performance on Wall Street on Friday after data showed that US economic growth was even weaker than thought.Monday's shares slide followed a poor performance on Wall Street on Friday after data showed that US economic growth was even weaker than thought.
"The Tokyo market is being hit directly by the lower share prices overseas," said Toshihiko Matsuno, research head at SMBC Friend Securities."The Tokyo market is being hit directly by the lower share prices overseas," said Toshihiko Matsuno, research head at SMBC Friend Securities.
John Mar, co-head of sales trading at Daiwa Securities SMBC Co. said: "You're seeing the US is sinking lower and lower, and we're still desperately searching for a bottom."John Mar, co-head of sales trading at Daiwa Securities SMBC Co. said: "You're seeing the US is sinking lower and lower, and we're still desperately searching for a bottom."