Stocks rise as Bush, Obama, McCain agree on bailout
Saturday, 27 September 2008
WASHINGTON, Sept 26 (Internet): The financial emergency gripping the country made for odd bedfellows on Thursday as US President George W Bush brought together the two men who hope to replace him in January - Democrat Barack Obama and Republican John McCain.
Financial markets grew more upbeat as the political leaders said they struck an agreement in principle on a massive spending plan to revive the crippled financial system. The Dow Jones industrial average jumped about 200 points on optimism about the bailout, and demand for safe-haven assets remained high but eased slightly as some investors placed bets that a deal would help unclog credit markets.
The two senators joined congressional leaders as Republicans and Democrats appeared to be on the verge of hashing out the last details for an urgent and unprecedented 700-billion-dollar bailout of Wall Street.
McCain and Obama interrupted their campaigns for the meeting after McCain suggested the idea to Bush on Wednesday - a move that has been applauded by Republicans but dismissed as political grandstanding by Democrats.
"We're in a serious economic crisis if we don't pass this legislation," Bush said as the meeting began. "All of us around this table take this issue very seriously."
Bush said the meeting was called "to move the process forward" and that he hoped "we can reach agreement very shortly" on a bipartisan basis.
McCain and Obama sat on the same side of the Cabinet table as Bush, but on the far and opposite ends, with congressional leaders separating them from the president.
The meeting appeared to be a historic first for the middle of a presidential campaign.
Thursday's developments pushed up financial stocks, with Bank of America, JP Morgan Chase & Co and Citigroup Inc jumping as much as 7.3 per cent after Dodd's remarks, Bloomberg financial news reported.
The blue chip Dow Jones Industrial Average picked up 196.89 points, or 1.8 per cent, to 11,022.06. The broader Standard & Poor's 500 Index gained 23.21 points, or 1.97 per cent, to 1,209.18. The technology-heavy Nasdaq Composite Index gained 30.89 points, or 1.43 per cent, to 2,186.57.
The US currency rose to 68.43 euro cents from 68.40 euro cents on Wednesday. The greenback rose against the Japanese yen to 106.51 from 106.13 yen on Wednesday.
Earlier Thursday, legislators from both parties from the special finance committees that have spent hours this week being briefed on the plan said bipartisan agreement had been reached on the principles of the plan.
But later, the office of House Minority Leader John Boehner said the Republican leadership had not signed off on anything. An official in his office said announcement of any agreement would likely "wait until after the meeting with the president," the official said.
Financial markets grew more upbeat as the political leaders said they struck an agreement in principle on a massive spending plan to revive the crippled financial system. The Dow Jones industrial average jumped about 200 points on optimism about the bailout, and demand for safe-haven assets remained high but eased slightly as some investors placed bets that a deal would help unclog credit markets.
The two senators joined congressional leaders as Republicans and Democrats appeared to be on the verge of hashing out the last details for an urgent and unprecedented 700-billion-dollar bailout of Wall Street.
McCain and Obama interrupted their campaigns for the meeting after McCain suggested the idea to Bush on Wednesday - a move that has been applauded by Republicans but dismissed as political grandstanding by Democrats.
"We're in a serious economic crisis if we don't pass this legislation," Bush said as the meeting began. "All of us around this table take this issue very seriously."
Bush said the meeting was called "to move the process forward" and that he hoped "we can reach agreement very shortly" on a bipartisan basis.
McCain and Obama sat on the same side of the Cabinet table as Bush, but on the far and opposite ends, with congressional leaders separating them from the president.
The meeting appeared to be a historic first for the middle of a presidential campaign.
Thursday's developments pushed up financial stocks, with Bank of America, JP Morgan Chase & Co and Citigroup Inc jumping as much as 7.3 per cent after Dodd's remarks, Bloomberg financial news reported.
The blue chip Dow Jones Industrial Average picked up 196.89 points, or 1.8 per cent, to 11,022.06. The broader Standard & Poor's 500 Index gained 23.21 points, or 1.97 per cent, to 1,209.18. The technology-heavy Nasdaq Composite Index gained 30.89 points, or 1.43 per cent, to 2,186.57.
The US currency rose to 68.43 euro cents from 68.40 euro cents on Wednesday. The greenback rose against the Japanese yen to 106.51 from 106.13 yen on Wednesday.
Earlier Thursday, legislators from both parties from the special finance committees that have spent hours this week being briefed on the plan said bipartisan agreement had been reached on the principles of the plan.
But later, the office of House Minority Leader John Boehner said the Republican leadership had not signed off on anything. An official in his office said announcement of any agreement would likely "wait until after the meeting with the president," the official said.