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| Version 0 | Version 1 |
|---|---|
| Markets volatile after US slump | Markets volatile after US slump |
| (10 minutes later) | |
| Asian shares slid heavily on the back of heavy Wall Street losses prompted by further fears of a US recession. | Asian shares slid heavily on the back of heavy Wall Street losses prompted by further fears of a US recession. |
| However, Japan's Nikkei 225 index clawed back lost ground on hopes President Bush would propose measures to boost the flagging US economy. | However, Japan's Nikkei 225 index clawed back lost ground on hopes President Bush would propose measures to boost the flagging US economy. |
| The Nikkei, which had lost 3% in early trading, ended 0.6% ahead at 13,861.29. | The Nikkei, which had lost 3% in early trading, ended 0.6% ahead at 13,861.29. |
| Weak manufacturing data and big losses from Merrill Lynch had seen the benchmark Dow Jones average fall 2.46% or 306.95 points to close at 12,159.21. | Weak manufacturing data and big losses from Merrill Lynch had seen the benchmark Dow Jones average fall 2.46% or 306.95 points to close at 12,159.21. |
| Stimulus that comes too late will not help support economic activity in the near term Ben BernankeFederal reserve chairman Fed backs economy kick-start | |
| While Japanese shares recovered, Hong Kong's Hang Seng Index was still trading behind, though it erased some of its 3.7% early slump to be 1.2% down at 24,808.0 by midday local time. | While Japanese shares recovered, Hong Kong's Hang Seng Index was still trading behind, though it erased some of its 3.7% early slump to be 1.2% down at 24,808.0 by midday local time. |
| Recovery package | Recovery package |
| Analysts were expecting European shares to also open lower on the back of the heavy US losses. | Analysts were expecting European shares to also open lower on the back of the heavy US losses. |
| Merrill Lynch shares dropped 10.2% to $49.45 after the firm reported the biggest quarterly loss in its history. | Merrill Lynch shares dropped 10.2% to $49.45 after the firm reported the biggest quarterly loss in its history. |
| It made a net loss of $7.8bn (£3.9bn) in the 12 months to the end of December from a net profit of $7.5bn in 2006. | It made a net loss of $7.8bn (£3.9bn) in the 12 months to the end of December from a net profit of $7.5bn in 2006. |
| In the final three months of 2007 alone, it chalked up losses of $9.83bn | In the final three months of 2007 alone, it chalked up losses of $9.83bn |
| The Standard & Poor's 500 Index was down 39.95 points, or 2.91%, at 1,333.25, a 15-month low, while the tech-heavy Nasdaq Composite Index was down 47.69 points, or 1.99%, at 2,346.90. | The Standard & Poor's 500 Index was down 39.95 points, or 2.91%, at 1,333.25, a 15-month low, while the tech-heavy Nasdaq Composite Index was down 47.69 points, or 1.99%, at 2,346.90. |
| The steep falls came despite hints from Federal Reserve boss Ben Bernanke that more interest rate cuts were in the pipeline to shore up the economy. | The steep falls came despite hints from Federal Reserve boss Ben Bernanke that more interest rate cuts were in the pipeline to shore up the economy. |
| 'Quick action' | |
| Later on Friday, President Bush is set to make his first public call for emergency legislation to stimulate the flagging economy. | Later on Friday, President Bush is set to make his first public call for emergency legislation to stimulate the flagging economy. |
| A White House spokesman said the president would "let the American people know that he does believe that short-term temporary measures are needed to help the economy through this period". | |
| Federal Reserve chairman Ben Bernanke has backed the introduction of emergency measures aimed at helping the US economy avoid recession. | |
| Speaking to the House Budget Committee Mr Bernanke said that any measures such as tax cuts should happen quickly, and on a temporary basis to be effective. | |
| "Stimulus that comes too late will not help support economic activity in the near term, and it could be actively destabilising if it comes at a time when growth is already improving," he warned. |