Bush appointment fails to rally markets
The markets failed to rally in the immediate aftermath of George W Bush's appointment of new treasury secretary John W Snow, news of which had been leaked over the weekend.
The Dow Jones was down more than 100 points in early trading.
The NASDAQ was also down in early trading, along with markets across Europe.
Telecoms and financials fell after a downgrade of Cable and Wireless' debt rating.
Mr Snow, chief executive of railroad operator CSX Corp, will now have to build investor confidence and win congressional support for a package of tax cuts. He has already backed Bush's calls to end corporate misdeeds and to boost investors' optimism.
"As we look to a new year and a new Congress, John Snow will be a key member of my Cabinet," Mr Bush said as he announced the appointment in Washington.
"I'll be proposing specific steps to increase the momentum of our economic recovery," he added.
Mr Snow, who must yet be confirmed by the Senate, succeeds Paul O'Neill, who was dismissed on Friday along with chief economic adviser Lawrence Lindsey. Snow, who has an economics degree, was deputy transportation secretary in the 1970s.
The new treasury secretary said he "strongly" shares Bush's view "that we cannot be satisfied until every single person who's unemployed and seeking a job has an opportunity to work."
Snow, 63, joined the Virginia-based CSX in 1977 when it was known as Chessie Systems Inc. Originally vice-president for government affairs, he became its president and chief executive officer in 1989, and chairman in 1991. CSX is the third-biggest US rail system with 23,000 miles of track.
Commentators said yesterday Snow was "smart" and a good speaker.
In his post with CSX, he was paid a base salary of $1 million from 1997 to 2000, but was remunerated to the tune of more than $2 million last year, the first year he received a bonus since 1994.
Washington-based political watchdog, The Centre for Responsive Politics, said Snow gave a combined $12,000 to Bush's presidential campaign and to Republicans in recent elections. He endorsed Arizona senator John McCain over Bush when both campaigned for the presidency in 2000.
O'Neill and Lindsey were ousted last Friday within hours of a report that showed a hike in US unemployment to 6% in November from 5.7% in October.
Stephen Friedman, a former co-chairman of Goldman, Sachs & Co., is lined up to replace Lindsey, it was reported.
Friedman, 64, was co-chairman of Goldman Sachs with Robert Rubin until Rubin joined the Clinton administration as chief economic adviser and later treasury chief.
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