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U.S. markets break pattern, head higher

NEW YORK, Dec. 9 (UPI) -- U.S. markets pulled away from a two-day slide Wednesday, after major boards in Asia and Europe closed lower for the second consecutive day.

The TAIEX index in Taiwan rose 0.37 percent, while the Bovespa index in Brazil gained 0.08 percent. But those were rare exceptions, as markets fell in China, Japan, India, Germany, France and Britain.

In Dubai, where a $59 billion debt crisis jolted markets in late November, the Dubai Financial Market's headline index dropped 6.4 percent Wednesday.

By close, however, U.S. markets bucked the trend. The Dow Jones industrial average rose 0.5 percent, 51.08 points, to 10,337.05. The Standard & Poor's 500 added 4.01 points, 0.37 percent, to 1,095.95. The Nasdaq composite index gained 0.49 percent, 10.74 points, to 2,183.73.

On the New York Stock Exchange, 1,644 stocks advanced and 1,344 declined on a volume of 4.1 billion shares traded.

The benchmark 10-year U.S. Treasury bill fell 10/32 to yield 3.427 percent.

The euro rose to $1.4728 from Tuesday's $1.4704. Against the yen, the dollar fell to 87.85 yen from Tuesday's 88.35 yen.

In Japan, the Nikkei 225 index lost 1.34 percent, 135.75, to 10,004.72.

In Britain, the FTSE 100 index dropped 0.37 percent, 19.24, to 5,203.89.

Treasury to extend TARP for 10 months

WASHINGTON, Dec. 9 (UPI) -- U.S. Treasury Secretary Timothy Geithner says he has extended the $700 billion Troubled Asset Relief Program until October with a new focus.

Geithner notified Congress of the extension Wednesday, the only step necessary for renewing the program for a second year, The New York Times reported.

The extension was expected. The TARP program, set up by former Treasury Secretary Henry Paulson Jr., has funded a variety of bailouts, although it has been criticized as skirting its mission of buying frozen assets from the nation's banks.

In his notification to Congress, Geithner wrote, "we want to see the capital base of our financial system return to private hands as quickly as possible."

However, "history suggest that exiting prematurely from policies designed to contain a financial crisis can significantly prolong an economic downturn," he wrote.

Geithner also said, "we do not expect to deploy more than $550 billion," and that loans would target small businesses and foreclosure prevention.

President Barack Obama recently called the program a necessary evil.

"There has rarely rarely been a less loved or more necessary emergency program than TARP," Obama said in a speech at the Brookings Institute Tuesday.

Volkswagen to buy one fifth of Suzuki

WOLFSBURG, Germany, Dec. 9 (UPI) -- German automaker Volkswagen said Wednesday it would pay $2.5 billion for a 19.9 percent stake in Japan's Suzuki Motor Corp.

The move follows an October agreement for Volkswagen to purchase 49.9 percent of Porsche for about $6 billion and gives the German company an instant vantage point to approach markets of India and southeast Asia, The New York Times reported Wednesday.

Suzuki owns 54 percent of Maruti Suzuki, a partnership with the Indian company that could also allow Volkswagen to approach the European market with small car technology developed in Japan and India.

Volkswagen also said it's goal was to climb to the top in global sales.

"In eight to 10 years from now, we want to become No. 1 in the world. I believe we will be able to accelerate that with the cooperation of Suzuki," Volkswagen Chief Executive Officer Martin Winterkorn said.

"In turn, Suzuki can benefit from our experience with efficient and environmentally friendly vehicles, Winterkorn told reporters.

The deal is certain to receive close scrutiny from regulators, but is expected to close in January, Volkswagen said.

Shares of Suzuki and Volkswagen rose with the announcement Wednesday, up 3.5 percent and 2.3 percent, respectively.

Credit card firms prepared for new law

NEW YORK, Dec. 9 (UPI) -- Credit card industry analysts say U.S. firms will be able to recoup losses expected from the credit card law that goes into effect in February.

Analyst Bruce Harting at Barclays Capital said an estimated 20 percent reduction in revenue from fees "will be more than offset by declining credit costs and stable margins," USA Today reported Wednesday.

At Stifel Nicolaus, industry analyst Christopher Brendler said credit card issuers had "protected themselves pretty well."

The law makes it harder for firms to raise rates unexpectedly and limits fees for over-limit spending to those who agree to the fees in advance.

Some believe credit card companies violated the intent of the law by raising rates for millions of consumers after the law was signed with a nine-month grace period before taking effect.

The problem is not profits, but "the credit card industry appears to be up to its old tricks," said Travis Plunkett, legislative director of the Consumer Federation of America.

Consumer program direector at the U.S. Public Interest Research Group Ed Mierzwinski said the recent rate hikes validated the need for a Consumer Financial Protection Agency, one of the key elements in President Obama's push for regulatory reform of the financial system.