Failing US Auto Bailout Spurs Global Action

The failure of U.S. lawmakers to help America's ailing auto industry is rattling economies around the world, with governments rushing to minimize the potential damage.

In Asia, Japan says Friday it will spend $255 billion as part of stimulus package aimed at homeowners and the country's financial markets.  China also is promising help, with loans and other possible measures aimed at its auto and steel industries.

In Europe, members of the European Union put aside differences to support an almost $260 billion stimulus plan.  

The major Asian indexes plunged more than five percent today, after investors learned the U.S. auto industry bailout fell apart Thursday night.  European indexes closed down more than two percent.  U.S. indexes were mixed in midday trading.

Oil prices fell more than $3 a barrel, and the U.S. dollar dropped, briefly slumping to a 13-year low against the yen.

The collapse of the bailout plan also hit Japanese automakers, with shares of Toyota, Honda and Nissan all losing over 10 percent.  South Korean automakers Hyundai and Kia lost more than eight percent.  

Meanwhile, one of Europe's largest banks, Spain-based Santander, says it will eliminate almost 2,000 jobs at its newly acquired British subsidiaries.  Santander says the move is part of ongoing cost-cutting measures.

On Thursday, U.S.-based Bank of America announced its plans to cut up to 35,000 jobs over the next three years.