Archive for October, 2008
Japan’s Nikkei stock lost almost 7% of its value, as the sufferings continued. After the news that Sony had halved its full-year profit forecast, a gloom spread over the market.
On the other hand, South Korea announced that growth in its economy was at s four-year low because of the current financial crisis.
South Korea’s benchmark stock index fell below 1,000 points for the first time since in more than three years.
South Korean electronic firm Samsung announced that it third-quarter profits were 44% down though there was a rise in sales.
The Nikkei fell below the 8,000 mark in afternoon trading in Tokyo and it happened first time in more than five years. A strong yen is a cause of concern about Japan’s export earnings.
On Tuesday, Asian stock markets opened quietly after dramatic rises of the previous two days.
In Japan, the Nikkei index was 1.4% down at noon and similarly shares in Taiwan and Australia were also down.
Wall Street also saw downward trend at the close of trading. After big rises in stocks on Monday, the investors took some profits and it was the basic factor behind slight downward trend.
The increasing fears that global economy may not easily recover from recession also became the cause to push the Dow Jones index 0.82% as investors are paying attention to worsening economic outlook.
According to some traders Wall Street might be nervous in the coming weeks because of increasing worries. Read the rest of this entry
To tackle the current banking crisis, European leaders have agreed and plan as they announced that no big bank would be allowed to declare itself bankrupt.
In their meeting in Paris, the European leaders announced that they would guarantee loans between banks by the end of 2009 and keep money in them for buying preference shares.
French President Nicolas Sarkozy said in his address that the European countries are taking unprecedented steps to tackle the current crisis.
Rescue plan related news came from Mr. Sarkozy after 15 countries’ leaders talks of the euro currency zone. France holds the rotating presidency of the European Union at present. Read the rest of this entry
In its latest world economic outlook report, the International Monetary Fund (IMF) says that if the financial crisis continues, the economic downturn in many countries will worsen. The report comes before IMF-World Bank meeting in the US this week.
The signs of a marked slowdown in growth are quite obvious in the global economy and there is a dire need to develop a decisive policy to restore financial confidence.
According to the report, the turmoil that is confined to the financial sector now is likely to spread. It estimates that the financial losses from the credit crisis will be around $1.4 trillion while in an earlier estimate the amount of financial losses was around $1 trillion. Read the rest of this entry
Online auction giant eBay has announced that it will cut 1,000 jobs from its workforce. This is considered the biggest job cut by the company that is almost 10% of its workforce. The step is being taken to improve operations and streamline the business.
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In the cutbacks, hundreds of other temporary workers may also lose their jobs.
Aside from announcing the job cuts, the company said that it was going on the acquisition trail to buy online payments site Bill ME Later. Read the rest of this entry
