UPI NewsTrack Business

U.S. markets close down Wednesday

NEW YORK, Nov. 12 (UPI) -- U.S. stock indexes slid from the opening bell to the close Wednesday on news the U.S. Treasury is considering changes in the $700 billion federal bailout plan.

Treasury Secretary Henry Paulson Jr. said the government would suspend the original strategy of buying toxic assets from financial firms.

He also said the bailout plan was not intended for automobile makers, although Congress could amend the plan "to make it available."

At the close Wednesday, the Dow Jones industrial average was down 411.30 points, or 4.73 percent, to 8,282.66. The Standard and Poor's 500 fell 46.65, or 5.19 percent, to 852.30. The Nasdaq composite index fell 81.69, or 5.17 percent, to 1,499.21.

On the New York Stock Exchange, 236 stocks advanced and 2,873 declined on volume of 6.044 billion shares traded.

The benchmark 10-year U.S. Treasury bond rose 29/32 to yield 3.65 percent.

The euro fell to $1.2472, compared to $1.2528 Tuesday. Against the Japanese yen, the U.S. dollar fell to 94.84 yen, from 97.89 yen Tuesday.

In Tokyo, the Nikkei average fell 1.29 percent, 113.79 points, to 8,695.51.

The FTSE 100 index in London fell 1.52 percent, down 64.67 points to 4,182.02.

N.C. treasurer pans Wachovia deal

RALEIGH, N.C., Nov. 12 (UPI) -- North Carolina Treasurer Richard Moore sounded bitter tones about the Wells Fargo takeover of Wachovia Corp. in a television interview Wednesday.

He likened the price to "highway robbery" and said Wachovia, which agreed to the deal on the day Congress passed the $700 billion bailout plan, was, essentially, involved in a "shotgun marriage."

"Why does the government get to decide who wins and who loses?" Moore said. "And is it appropriate to have a shotgun marriage where the shareholders don't get a fair vote?"

The deal with Wells Fargo includes Wachovia relinquishing 39.9 percent of its voting power to Wells, the Charlotte (N.C.) Observer reported Wednesday.

By giving away that much voting power, shareholder approval is virtually a shoe-in when votes are cast in December, the Observer said.

Although Wells Fargo agreed to pay $7 per share, "they're getting a great deal," Moore said on a CNBC television interview.

That price is far better than the offer Citigroup Inc. made for Wachovia's banking operations, but a fraction of the company's $40 per share value of a year ago, the Observer said.

IEA calls for focus on energy policies

LONDON, Nov. 12 (UPI) -- The head of the International Energy Agency said in London Wednesday that economic downturns should not derail energy policy goals.

"We cannot let the financial and economic crisis delay the policy action that is urgently needed to ensure secure energy supplies and to curtail rising emissions of greenhouse gases," IEA Executive Director Nobuo Tanaka said.

"We must usher in a global energy revolution by improving energy efficiency and increasing the deployment of low-carbon energy," Tanaka said.

Tanaka made the remarks while launching the latest edition of the World Energy Outlook, 2008, IEA said in a statement.

In the annual report, with no change in government policies, IEA estimates energy demand will grow 1.6 percent a year from 2006 through 2008 -- a total increase of 45 percent.

The estimate is slightly lower than last year's projection due to the economic downturn, IEA said.

Estimates include a demand for oil rising from 85 million barrels a day to 106 million, the report said.

Rising demand for coal, however, will account for over one-third of the increase in energy consumption by 2030, the report said.

American Express applies for federal aid

WASHINGTON, Nov. 12 (UPI) -- U.S. credit card giant American Express is seeking $3.5 billion from the $700 billion bailout program, sources said.

The company was granted permission by the U.S. Federal Reserve to change its status to a bank holding company Monday, but it was unclear if it asked for federal assistance before or after the changed status was authorized, The Wall Street Journal reported Wednesday.

The funding application is indicative of the spreading crisis among companies of various sectors seeking government assistance. The bailout plan, originally designed for financial firms, now includes the country's largest insurance company, American International Group, among its participants. House Speaker Nancy Pelosi has asked that automobile makers also be cut into the program.

To date, 52 financial institutions have at least preliminary approval for $172 billion in federal funds. An additional 23 have applied for a total of $4.6 billion, New York firm Keefe, Bruyette & Woods said.

American Express is struggling as consumer spending has declined and loan defaults have escalated. The company has not announced its application for funds, nor said what it would do with the capital, the Journal said.