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. …click here to read more

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.

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. …click here to read more

To save one of Germany’s biggest banks, the finance ministry of the country has agreed a 50bn euro rescue deal.

This deal to save Hypo Real Estate Bank is worth 15m euros and it’s more than the first rescue attempt that broke on Saturday.

Earlier this week, an unlimited guarantee for all private savings was announced by Germany and later Denmark also follwed the suit.

The moves proved somewhat helpful to Asian markets, where Tokyo’s Nikkei index fell 3.6 %. Similarly, South Korean currency fell around 5%.

The other finical institutions are already struggling against a crisis of confidence in the global financial system and the problems of the German Bank will put further strain on them. …click here to read more

President George W Bush says that the rescue plan will be passed by the legislators soon, as they will surely rise to the occasion in the current financial crisis. However, he admits that there is disagreement because the proposal is quite big.

According to Senate Majority Leader Harry Reid, who is a Democrat, “lawmakers will stay in session until a deal is reached.”

However, rebel Republicans are still unhappy on buying mortgage-backed assets from US banks.

Some positive signs were seen later on Friday Nancy Pelosi said that some progress was made on the bill. …click here to read more

General Electric (GE) has decreased its earning forecasts considering recent unrest in the financial markets.  Now the 3rdQ profits are expected 43-48 cents per share while they were 50-54 per share in a previous forecast.

The company also decreases its earning forecast for the full-year to $19.5bn-$21bn that were $22bn-$23bn in the earlier prediction.

According to the company, many other steps are also being taken to boost its fund and it also includes suspension of its funds.

It has also been stated that the company may leave its dividend at $1.24 per share till the end of next year. It is happening first time that the company has not raised the payout since 1970. …click here to read more