U.S. markets close lower Monday
NEW YORK, May 11 (UPI) -- U.S. stock markets closed lower Monday as financial firms faced decisions on how to make up capital shortfalls as defined by the Treasury Department.
The Treasury released details of the stress tests done on 19 of the country's largest banks Thursday. Shares of Capital One Financial fell 13.53 percent Monday and BB&T shares fell 7.56 percent, after the companies said they would sell stocks to increase their cushions and repay government bailout funds, The Wall Street Journal reported.
By close, the Dow Jones industrial average lost 155.88 points, or 1.82 percent, to 8,418.77. The Standard & Poor's 500 fell 2.15 percent, 19.99 points, to 909.24. The Nasdaq composite index lost 7.76 points, 0.45 percent, to 1,731.24.
On the New York Stock Exchange, 862 stocks advanced and 2,179 declined on a volume of 8.6 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 1 2/32 to yield 3.16 percent.
The euro against the dollar was at $1.3584, compared to Friday's $1.3628. Against the Japanese yen, the dollar fell to 97.405 yen, compared to Friday's 98.46 yen.
In Tokyo, the Nikkei average gained 19.15 points to 9,451.98, up 0.2 percent.
In London, the FTSE index fell 0.6 percent, 26.59 points, to 4,435.50.
Premier 'nearly derailed' Canada-EU talks
ST. JOHN'S, Newfoundland, May 11 (UPI) -- Newfoundland and Labrador's refusal to support Ottawa's trade talks with the European Union "nearly derailed" negotiations, a diplomatic official said Monday.
"I have to be perfectly frank with you: The statement by (Premier) Danny Williams when he refused to sign up to the Council of the Federation statement nearly derailed the entire process," Anya Oram, charge d'affaires for the European Commission delegation in Ottawa, told the St. John's (Newfoundland) Telegram Monday.
The Council of the Federation is made up of the premiers of Canada's 13 provinces and territories. It is intended to provide a united crossing point between the provincial and territorial governments and Canada's federal government.
Williams said Feb. 20 his government would not support Ottawa's EU negotiations because of concerns Ottawa would mishandle his province's issues, including EU opposition to Canadian seal hunting, the Telegram said.
Canadian Prime Minister Stephen Harper was in Prague, Czech Republic, last week to launch negotiations with European officials toward a Canadian-EU free trade agreement.
The kickoff was complicated by a European Parliament vote to ban Canadian seal products. But Harper said Canada would not let the sealing issue "contaminate" trade talks.
The prime minister also announced agreements with the EU on air safety and air transportation that could lead to lower prices for travel between Canada and Europe.
Serbia, EU bank sign $330M credit
BELGRADE, Serbia, May 11 (UPI) -- The European Investment Bank and Serbia Monday signed a $330 million credit agreement to assist the nation's small and medium firms, authorities said.
Along with the credit agreement, the EIB agreed to open a regional office in Serbia -- the first one outside the European Union -- the Belgrade B92 Web site said.
An EIB official said the bank will be ready to open its regional office as soon as Serbia officially asks for access to the EU.
Since 2000 the European Investment Bank has financed $2.1 billion in Serbian projects, mainly in the energy sector, in small and medium enterprises and in strengthening the financial system, B92 said.
Chrysler resale value drops after filing
AUBURN HILLS, Mich., May 11 (UPI) -- Chrysler vehicle owners have apparently seen the value of their cars and trucks slide due to the U.S. automaker's bankruptcy filing, a research group said.
The resale value of Chrysler, Jeep and Dodge products three years off the production line fell 6 percent within seven days of the firm's bankruptcy filing, Automotive Leasing Guide said.
Prior to the filing, a 3-year old Jeep brought in an average of 38.4 percent of the sales price, the Detroit Free Press reported Monday. After the filing, the resale value dropped to 32.4 percent.
A Dodge product three years out of the showroom sold for 37.3 percent before the filing. After the filing, Dodge products were selling for 31.2 percent of the original price. Chrysler vehicles have flipped from 34.8 percent to 28.8 percent of their original value.
In comparison, 3-year-old Toyotas sell for 45.5 percent of their original price while Hyundai's retain 40.9 of their value after three years.
