U.S. markets lower Tuesday
NEW YORK, Jan. 20 (UPI) -- U.S. markets headed lower Tuesday after the Martin Luther King Jr. Day holiday as investors reacted to Britain's expanded bailout measures.
Pointing to further erosion of the financial sector, Britain said it would provide banks with partial protection against future lending and a guarantee of up to $72 billion for asset-backed securities. The announcement came as the Royal Bank of Scotland estimated it lost $40 billion last year.
In late-morning trading Tuesday, the Dow Jones industrial average lost 168.69 points, or 2.04 percent, to 8,112,53. The Standard & Poor's 500 percent, dropped 22.98 points, 2.70 percent, to 827.14. The Nasdaq composite index shed 47.47 points, 3.10 percent, to 1,481.86.
The benchmark 10-year U.S. Treasury bond fell 1 8/32 to yield 2.477 percent.
The dollar was mixed. The euro fell to $1.291, compared to Monday's $1.3103. Against the Japanese yen, the dollar fell to 90.16 yen from Monday's 90.73 yen.
In Tokyo, the Nikkei average lost 191.06 points to 8,065.79, down 2.31 percent.
Airlines find money under the seats
NEW YORK, Jan. 20 (UPI) -- Foreign and U.S. airlines have found extra leg room can generate millions in extra revenue as air travel goes through a slump, industry analysts said.
British Airways spokesman John Lampl said sales of the airline's "World Traveler Plus" sections are going well, USA Today reported Tuesday.
JetBlue reported revenues generated from charging extra for five inches of leg room in several rows of seats on its planes were about $40 million per year.
"Airlines are dealing with customers who aren't interested in paying for business class, (as) employers are asking employees to save money," Matt Daimler, founder of SeatGuru.com, told the newspaper.
The rundown of round trip prices on a British Airlines New York to London flight in February can explain why leg room has become the perk of choice for frequent fliers.
The cheapest tickets cost $170, while business class seats cost $2,178.
Premium class seats, however, cost $619, the newspaper said.
"The amount of the charge is a factor. I would not pay $50 for a premium seat but I would pay up to $25," Tampa, Fla., attorney Margaret Bowles said.
Chrysler and Fiat form joint venture
AUBURN HILLS, Mich., Jan. 20 (UPI) -- Italian automaker Fiat SpA and Chrysler LLC agreed Tuesday to form a partnership that would give Fiat a 35 percent stake in the third largest U.S. auto company.
The agreement includes an option for Fiat to increase its Chrysler holdings to 55 percent, The Wall Street Journal reported Tuesday.
The deal will not give Chrysler an immediate cash infusion. Instead, it is a pragmatic deal in which the companies will share production and technology.
Chrysler, whose cash needs forced it to seek an emergency government loan last year, has a similar agreement with Nissan worked out last year.
The Fiat deal may complicate the arrangement with Nissan, given certain vehicle models Chrysler is scheduled to make for each foreign company could be seen as competitors, the Journal reported.
Last year, Chrysler sold about 2 million vehicles, while Fiat sold 2.5 million. Fiat's base is strongly tied to Europe, especially Italy, while Chrysler's sales are predominantly based in the United States.
The agreement gives each a chance at a larger global presence, the Journal said.
Chicago hotels offer Obama specials
CHICAGO, Jan. 20 (UPI) -- Chicago hoteliers and restaurateurs say Tuesday's inauguration of favorite son Barack Obama as the 44th U.S. president could help make up for a gloomy winter.
Several Chicagoland hotels and restaurants are offering lavish specials and packages for customers caught up in the spirit of Obama's inauguration as president of the United States.
The Chicago Tribune says fun ideas for folks reveling in "Obama-mania" range from "O Bomb" cocktails at the Moonshine tavern to hotel packages at upscale inns like the Hard Rock Hotel and the Fairmont Chicago that can cost well into five figures.
"We need to get past the Arctic snap," said Karen Barrie, who is involved with a benefit gala at the Windy City's famed Aragon Ballroom. "We believe the desire is out there."
Some analysts told the Tribune that inauguration business comes at a good time as the hospitality industry endures an economic slump while awaiting the Super Bowl and Valentine's Day uptick.
"The links of the president being from Illinois, and from Chicago in particular, certainly will help to mitigate those losses but can't help reverse those losses," said Diane Swonk, chief economist at Mesirow Financial.
