Sunday, December 21, 2008
Bailout Bill Is $4B And Counting
A historic $4 billion lifeline to rescue General Motors and Chrysler in Canada is likely just the first instalment of public loans to the sputtering automakers, concedes Prime Minister Stephen Harper. "I will not fool you. There is obviously money at risk here and there may be, well, more money as we go forward," Harper said yesterday as he joined Ontario Premier Dalton McGuinty in revealing terms of the huge aid package at a Toronto hotel.
$17.4-billion Buys Time For Detroit
Restructure fast or go bust. That was the blunt message U.S. President George W. Bush delivered to General Motors Corp. and Chrysler LLC Friday as he grudgingly approved $17.4-billion (U.S.) in emergency bridge loans for the cash-starved car makers. Even with the infusion, many experts said one or both of the companies may still be forced into bankruptcy protection after March 31, 2009, when Washington can call the loans. And analysts said Chrysler, the smallest of the Detroit Three, may not survive as an independent car maker.
Wednesday, December 17, 2008
Many of the seven key variants seem to be active in the brain.
More Stable Currency Needed
More than 200 members of the Fordham community converged upon the Flom Auditorium on Oct. 14 to hear John Forbes Nash Jr., Ph.D., winner of the 1994 Nobel Memorial Prize in Economic Sciences, talk about solutions to the downturn in the national and global economy.Nash told the audience that such financial crises would be less likely to occur if there was some international monetary standard, such as the gold standard or competition among worldwide currencies, to curb inflation and prevent the rise of mortgage abuses. He expressed some skepticism about a government bailout as a solution.
Sunday, December 14, 2008
December Layoffs Exceed 100k
The second week of December was another brutal one for jobs, as Bank of America and at least 20 other companies announced more massive cuts. "The recent news does not bode well," said Rich Yamarone, director of economic research at Argus Research. "This is the reason it's going to be the longest recession we've had in post World War II history."
Saturday, December 13, 2008
Alcatel-Lucent Plans More Job Cuts
Alcatel-Lucent said Friday it will eliminate 1,000 more white-collar jobs as part of its new chief's plan to return the company to profitability, but shares slumped as investors were hoping for a bolder shift in business strategy. The Paris-based maker of networking equipment for telecommunications operators also intends to cut half of the 10,000 contractors it employs in measures aimed at saving $991 million by the fourth quarter of 2009.
BofA to Cut 35,000 Jobs
Bank of America Corp., battling the slowed economy, expects to eliminate about 35,000 positions over the next three years as it absorbs New York securities firm Merrill Lynch & Co.
The reductions, representing about 10% to 11% of the companies' combined work force, will hit "all lines and staff units" in both companies, reflecting both redundancies created by the Merrill acquisition as well as the "current recessionary environment," Bank of America said.
Yahoo Layoffs Today May Not Be the Last
Yahoo began laying off 1,500 workers on Wednesday as part of a plan, announced in October, to slash expenses by $400 million a year. The cost cutting, however, may have to go deeper in the coming year.
Rio Tinto With 14,000 job Cuts
Rio Tinto, the Anglo-Australian mining giant, said yesterday that it would cut 14,000 jobs in an attempt to reduce its $39 billion (£26.2 billion) debt mountain.
Sony Plans 16,000 Job Cuts
Sony is to cut more than 16,000 permanent and part-time jobs from its worldwide electronics division and will raise prices for its products in the face of dwindling consumer spending.
Sara Lee Expects 700 Job Cuts
Sara Lee Corp. announced plans Thursday to outsource some additional back-office operations in an effort intended to save up to $250 million a year as the company continues its turnaround effort.
Pfizer Slashes 700 Jobs
Pfizer is restructuring its operations in France, and you know what that means: streamlining, a.k.a. layoffs. The company said 700 jobs will be cut in the reorganization, with the layoffs focused on its French HQ in Paris and its sales force. Its union, however, claims that the cuts actually will amount to 892: from current employment of 1,771 to 879. "It is much higher than what we thought," a union delegate told Agence France Presse.
Wednesday, December 10, 2008
Monday, December 8, 2008
Nearly 17,500 Additional Job Cuts
Nearly 17,500 job cuts were announced on Monday is likely to lower investor confidence as the markets are expected to retain the gains from last week on positive sentiment. Ford Motor Co's Volvo Cars is expected to hand out pink slips to as many as 3,401 full-time jobs, which is 14 percent of the division's total workforce. These positions will include 2,721 workers in Sweden, with 2,367 blue-collar employees and 680 outside the country.... Dow Chemical Co. reported Monday that it plans to slash as many as 5,000 full-time jobs, which represent 11 percent of the company's total workforce...In a separate report, 3M Co., a manufacturing conglomerate, reported that in the current quarter it has slashed almost nearly 1,800 positions across the company, mainly in the developed economies of the U.S., Western Europe and Japan. This will generate $170 million in 2009...
Anheuser-Busch InBev Announces
Monday announced that, as part of its previously announced plans to effectively integrate Anheuser-Busch Inc., the U.S. business unit today communicated plans to cut approximately 1,400 U.S. salaried positions in its beer-related divisions, affecting about 6 percent of the company's total U.S. workforce.
Sunday, December 7, 2008
Thursday, December 4, 2008
Canadian Bankruptcies Up 21 per Cent
Bankruptcies in Canada numbered 9,468 in October, up 7.2 per cent from September and 21.1 per cent from October 2007, with the pain concentrated among individuals. The office of the federal Superintendent of Bankruptcy reported Thursday that 8,972 consumers filed for bankruptcy in October, up 7.5 per cent from October and 22.8 per cent from a year earlier. Business bankruptcies totalled 496 for the month, up 1.4 per cent from the previous month but down 3.3 per cent from the year-ago corporate toll. Compared with a year earlier, the month's total bankruptcies were up 50.9 per cent in Alberta, 37.4 per cent in British Columbia, 36.5 per cent in Newfoundland and Labrador, 21.6 per cent in Ontario, 17.4 per cent in Nova Scotia, 15.3 per cent in Saskatchewan and 13.6 per cent in Quebec.
Wednesday, December 3, 2008
"The brutal truth that no one in Washington dares acknowledge is that our systemic economic problems can only be solved by a reduction in consumer borrowing and an increase in savings. We must repair our national balance sheet and a painful recession is the only path to achieve this"
Tuesday, December 2, 2008
Icelanders Demand PM Resign
Thousands of Icelanders demonstrated in Reykjavik on Saturday demanding the resignation of Prime Minister Geir Haarde and Central Bank Governor David Oddsson for failing to stop a financial meltdown in the country. It was the latest in a series of protests in the capital since the financial meltdown that crippled the island's economy. Hordur Torfason, a well-known troubadour in Iceland and the main organiser of the protests, said the protests would continue until the government stepped down. "They don't have our trust and they are no longer legitimate," Torfason said as the crowds gathered in the drizzle before the Althing, the Icelandic parliament. A separate group of 200-300 people gathered in front of the city's main police station demanding the release of a young protester being held there, Icelandic media reported.
Thursday, November 20, 2008
Wednesday, November 19, 2008
Citigroup Set To Cut
Citigroup will slash a staggering 53,000 jobs - the second-largest cut ever by a US company - because of punishing losses and a reeling economy, the financial giant announced yesterday. The massive job cuts, which will shrink New York-based Citigroup's workforce by about 15 percent, comes just two months after the banking behemoth finished trimming 23,000 positions. About half of the new cuts will come through layoffs and attrition. The other half will come from the sale of units.
Thursday, November 13, 2008
Monday, November 10, 2008
AIG Gets Expanded Bailout
American International Group Inc. got a $150 billion government rescue package, almost doubling the initial bailout of less than two months ago as the insurer burns through cash at a record rate. AIG will get lower interest rates and $40 billion of new capital from the government to help ease the impact of four straight quarterly deficits, including a $24.5 billion third- quarter loss posted today by the New York-based company.
GM Plunges as Deutsche
General Motors Corp. plummeted to its lowest level in 59 years after a Deutsche Bank AG analyst downgraded the shares, saying they may be worthless in a year. Even if GM succeeds in averting a bankruptcy, we believe that the company's future path is likely to be bankruptcy- like,'' Deutsche Bank's Rod Lache wrote today in a note. The New York analyst recommended selling the shares and cut his 12-month price target to zero. He previously advised holding the stock.
Thursday, November 6, 2008
Dealing With The Next Crisis
The mortgage meltdown is by no means over, but now consumers need to brace for another economic crisis--credit cards. According to the consumer Web site Credit.com, at the end of last year, U.S. consumers owed more than $961 billion in credit card debt. Although not as large as the $11 trillion mortgage market, that's still a lot of lost cash and lenders are starting to feel the consequences of the huge lines of credit they have been allowing. American's have been borrowing more money than they can pay back, and credit card companies have been there to support the habit every step of the way.
Wednesday, November 5, 2008
Monday, October 13, 2008
Icelandic Shoppers Splurge...
After a four-year spending spree, Icelanders are flooding the supermarkets one last time, stocking up on food as the collapse of the banking system threatens to cut the island off from imports. ``We have had crazy days for a week now,'' said Johannes Smari Oluffsson, manager of the Bonus discount grocery store in Reykjavik's main shopping center. ``Sales have doubled.'' Bonus, a nationwide chain, has stock at its warehouse for about two weeks. After that, the shelves will start emptying unless it can get access to foreign currency, the 22-year-old manager said, standing in a walk-in fridge filled with meat products, among the few goods on sale produced locally.
Royal Bank of Scotland Under State Control
The Chancellor will move to take control of the Royal Bank of Scotland today by injecting £20 billion of taxpayers’ money. The Government is also expected to take over HBOS in the most dramatic extension of state ownership in the British economy since the war. The bank’s rescue takeover by Lloyds TSB appeared to be on the brink of collapse last night. As governments around the world scramble to prevent the collapse of the global financial system, Alistair Darling will unveil plans for a £40 billion “recapitalisation” of the banking sector.
Monday, October 6, 2008
Lift-off For China Space Mission
China has launched its third manned space mission - which is to feature the country's first spacewalk. The Shenzhou VII capsule soared into orbit atop a Long-March II-F rocket from the Jiuquan spaceport in Gansu province in the northwest of China. The 70-hour flight will include a spacewalk undertaken by 42-year-old fighter pilot Zhai Zhigang. Mr Zhai is joined on the mission by two other "yuhangyuan" (astronauts) - Liu Boming and Jing Haipeng.The rocket lit up the darkness as it blasted off from Jiuquan at 2110 Beijing Time (1310 GMT). China's president Hu Jintao met the three astronauts before the lift-off, wishing them success on the nation's riskiest space mission yet.
Iran To Launch Satellite
Iran plans to launch a satellite into space soon using an Iranian-made rocket, President Mahmoud Ahmadinejad said. Iran has in the past launched satellites using rockets built by other nations, but this was the first announcement of such a launch with an all-Iranian made rocket. Ahmadinejad said the rocket will have 16 engines and will take a satellite some 430 miles into space, according to a state television report Thursday.