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Germany sees no major economic slump
10/15/2008 6:00:43 AM
The global financial crisis won't lead the German economy into a major, lasting slump says Chancellor Angela Merkel.
Merkel told the Bundestag, the lower house of parliament, that Germany was strong but faced a difficult period.
But European stock markets fell as concerns over the financial crisis subsided and worries of looming recession took centre stage.
Joanna Partridge reports for Reuters
Recession worries gained further momentum on Wednesday after a private report showed U.S. employers cut 250,000 positions in November.
The report sets the stage for gloomy official statistics from the Labor Department due on Friday.
In a bit of good news, home loan rates dropped to a more than three-year low, according to a mortgage industry group.
Conway Gittens reports from New York.
About 200 foreign workers employed by a construction firm in the Russian city of Ekatherinburg have gone on strike after not being paid for three months.
The desperate workers, mostly from Central Asian states, say they have not been paid by their employer "Alfa-Stroy" since September. Unable to pay rent, the workers have moved into unfinished buildings with wood fires being their only source of heat. The global financial crisis has hit the Russian construction market hard, resulting in the freezing of major building projects and job losses.
The Palestinian Authority warns its employees in Gaza will not receive salaries as border closures prevent cash from reaching the Hamas controlled territory.
EU's Barroso has suggested that British politicians are considering the move to the euro because of the global finance crisis.
President of the European Commission Jose Manuel Barroso made the comments on French radio and it's prompted renewed discussion over whether Britain should join the European currency.
In an effort to avoid bankrupcty General Motors asked Congress for $18b Tuesday.
As part of restructuring plans ordered by Congress, GM says, in turn, it will increase production of fuel efficient vehicles and cut wage and benefit costs.
Jeanne Yurman reports.
A sharp drop in crude oil futures has brought the price of a barrel of oil near $47, more than $100 off the record high set in July.
The Dow rallied 270 points to 8,419. The S&P 500 rose 32 points to 848. The Nasdaq climbed 51 points to 1,449.
Conway Gittens reports from New York.
The Big Three automakers submit detailed restructuring plans after Congress rejected their initial plea for a $25B federal bailout.
The companies are under pressure to downsize operations and expenses, to sell assets, cap executive pay and to green up their product lines.
SPEAKER: Efraim Levy, equity analyst, Standard & Poor's
U.S. Treasury Secretary Henry Paulson calls on China to boost domestic demand and continue currency reform on the eve of his visit to China.
C. Fred Bergsten, director of the Peterson Institute for International Economics, says President-elect Barack Obama might do what Paulson and President George Bush has avoided: labeling China as a currency manipulator.
Fred Katayama reports from New York.
Billionaire investor Warren Buffett has seen shares of his Berkshire Hathaway cut in half as investors fear the company could be hit with a big payout in the future.
Buffett's company has issued insurance policies for equity derivatives, that if values keep dropping, would result in payments which could total as much as $37 billion.
Speaker: Bill Bergman, equity analyst, Morningstar
Conway Gittens reports from New York.
The Bush administration's Troubled Asset Relief Program, or TARP, was criticized on Capitol Hill for not doing enough to stop home foreclosures or helping the auto industry.
On Wall Street, a volatile session finished with the Dow up 151 points to 8,424. The S&P 500 climbed 8 points to 859. The Nasdaq crept one point higher to 1,488.
Oil prices fell to $54.39 a barrel.
SPEAKER: Henry Paulson, U.S. Treasury Secretary
Conway Gittens reports from New York.
Data out of Britain and France saw business sentiment down while Citigroup plans to axe 52,000 jobs.
* EU, UK defend fiscal stimulus plans
* Germany will support Opel
* More strikes and cancellations wrack Air France, Al Italia
India's cricket bat makers are struggling because of a shortage of quality willow.
The number of people growing willow trees is decreasing. Bat makers like Mudasir Dar say the government has failed to act to preserve willow stocks despite agreeing three years ago that there was a problem.
Britain's central bank chief says the country is probably already in recession and heading for a difficult year but said falling inflation would give balance to the economy.
* Oil hits 20-month low on consumption fears
* EU fines car glass maker cartel 1.3 billion euros
* Wonky veg is back after EU standards law overturned
The last known surviving member of the architects of the global financial system says poor supervision of banks is behind today's crisis.
Jacques Polak, one of the 700 delegates to the 1944 Bretton Woods conference that led to the creation of the World Bank and International Monetary Fund, says calls for a shake-up of the global system are politically appealing but not the solution.
Lowered profit forecasts at leading consumer electronics chain Best Buy and worries the credit crunch has spread kept recession worries at the forefront.
Credit worries escalated after U.S. Treasury Secretary Henry Paulson said the $700 billion bank bailout should be expanded to include non-banks involved in the credit card, auto and student loan industries.
Oil prices traded at 20-month lows.
Speaker: Henry Paulson, U.S. Treasury Secretary
Conway Gittens reports from New York.
Billionaire investor Warren Buffett has seen shares of his Berkshire Hathaway cut in half as investors fear the company could be hit with a big payout in the future.
Buffett's company has issued insurance policies for equity derivatives, that if values keep dropping, would result in payments which could total as much as $37 billion.
Speaker: Bill Bergman, equity analyst, Morningstar
Conway Gittens reports from New York.
China scoops its first major overseas deal for a home-grown aircraft but the world aviation industry as a whole is in a tail spin.
The biennial Zhuhai gathering is a major showcase for the international aviation industry and is particularly significant in the current financial climate as many major players bank on China's potential as the world's largest aviation market to help them weather the economic storm.
Car giant Honda has unveiled a pair of experimental robotic legs it says can help lighten the burden of factory workers.
Honda's Walking Assist device is designed to support bodyweight and is expected to help people who work standing or in a crouching position for a long time. The Japanese car maker says the gadget works by redistributing body weight along its frame and lightening the burden on a workers' real legs.
Pharmaceuticals and energy stocks fall after Barack Obama's presidential win with markets fearing his policies could hurt profits.
* ArcelorMittal slashes output, feezes growth plans
* Carlsberg trims 2008 outlook
Pirates have plagued the Horn of Africa for years but now their attacks are increasing in number and audacity.
The hijacking of the 310, 000 ton supertanker Sirius Star marks a new watershed in world piracy both because of the size of ship the pirates have seized and the range at which they carried out the assault some 800 kilometres off the coast of Kenya.
American companies slashed 240,000 jobs in October highlighting recession fears and helping to set the agenda for President-elect Barak Obama's first news conference.
Practitioners of 'keyhole' surgery may soon have new tools at their disposal, such as a mechanical 'snake' that enters the body through the mouth or rectum.
The brand name of the Latvian-invented camera favoured by spies worldwide lives on in Germany.
The revolutionary Minox camera was invented by Waltar Zapp and produced in Latvia in the 1930s and the brand still lives on in Germany where everything from everyday cameras to spy gadgets are still made under the famous name.
By Caren Bohan and Richard Cowan
CHICAGO/WASHINGTON (Reuters) - Treasury Secretary Henry Paulson is weighing whether to ask Congress for the remaining $350 billion of the financial bailout fund, with White House aides approaching President-elect Barack Obama...
SAN FRANCISCO (Reuters) - Financial services company Citigroup Inc said on Wednesday it had teamed its customer loyalty program with global online retailer Amazon.com Inc in what an executive said was the largest-ever rewards program.
The part...
By Kevin Krolicki
DETROIT (Reuters) - The board of General Motors Corp met on Sunday to review a restructuring plan intended to cut costs and win support for up to $12 billion in emergency funding from the government, a person familiar with the delibe...
By Michael Erman
NEW YORK (Reuters) - Electricite de France SA offered to buy a 50 percent stake in Constellation Energy Group Inc's nuclear business for $4.5 billion, in an attempt to scuttle a $4.7 billion takeover by Warren Buffett's MidA...
DETROIT (Reuters) - United Auto Workers President Ron Gettelfinger said on Wednesday the union would surrender job security protections and rework a historic retiree health- care trust in concessions intended to help U.S. automakers clinch government aid to survive a sales downturn.
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WASHINGTON (Reuters) - The chief executive of American Express Co said on Wednesday that the current financial downturn is strongly affecting the spending of people in high income levels, a departure from prior economic slowdowns.
"It's very differen...
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