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Job losses we say it will worsen

There is a fundamental message of logging jobs this week.

In other words, this slowdown will be a long, hard and difficult things will get worse.

Indeed, the U.S. broker Merrill Lynch said it now believes that the estimates for 2009 earnings of U.S. companies are too generous, that profits will be lower.

Runners who already believe in the December 2008 quarter revenues were down 28%, so a warning from Merrill Lynch to be regarded as an indicator for the future.

Anyone think this will be a fast start / resume later this year or in 2010, better think again.

The 100,000 job losses echoed across the world Monday came from the automotive retail, heavy industry, industry light, technology, finance, insurance, technology and more.

Power cuts like the top of BHP Billiton Last week, Intel and Microsoft, the mode loss is rapidly increasing day by day that employers who have tried to retain staff in time as possible are forced to dive profits, cut and cut deeply.

Companies have reported severe damage 4th quarter in the U.S. and Europe and used these as a base benefit depressions job cuts: Texas Instruments, Caterpillar, and ING, for example (which was rescued by the government Dutch for the second time with an agreement to acquire assets of dubious real estate and continue to provide the economy).

The IMF has seen a contraction of the U.S. economy 1.6% this year, with the euro area, the reduction of 2% and Japan 2.6%. According to media reports, the fund later this week, revealing global growth this year of 0.5% at best. Optimist next year of 3%.

Overnight economy Japan, a modest boost overall approval of about $ US75 million and the German Council of Ministers signed a package of 50 million euros. The British government has revealed a US4 million-plus aid package for the automotive industry.

The purpose of these packages is attempt to halt the recession and keep as many people as possible in employment.

Companies in the United States and Europe chopped more 90,000 jobs on Monday also saw the collapse of the Icelandic government, General Motors has cut more fall plants sales and the collapse of the second processor card with American US5.6 billion in debt.

About 80 000 jobs employment has declined in the United States, the rest of Europe.

A survey of private sector economists in the United States of bad news: they see that the worsening of depression. (Source)

The survey showed that companies laying off employees and earn more cash in the next 12 months. A large majority of 105 economists surveyed believe the gross domestic product of the country continues to sink in 2009.

The survey respondents were increasingly pessimistic about the macroeconomic outlook. "78% of respondents expect U.S. real GDP to be lower in 2009 and 2008. "

"January 2009 NABE Industry Survey is the worst economic conditions since the survey began in 1982, confirming that the U.S. recession deepened in the fourth quarter of 2008, "said Sara Johnson, an economist at the NABE.

Nearly half (47%) of economists polled said demand for the industry in general is down, against 35% who say the investigation October.

"Only 10% of respondents said that profit margins are rising, against 52% who think they are down. And 38% of economists believe that capital expenditures are down, compared to only 15% in October.

"More than half expect actual decline in GDP of more than one per cent this year, and only three per cent expect growth of more than one percent.

"Profit margins outnumber losers margins increase by five to one between business respondents, the worst reading since 1982.

"Job losses accelerated in the fourth quarter, job prospects for the next six months have weakened further.

"With the deterioration of the market outlook, the company crushed the brakes on capital spending in the fourth quarter of 2008, the percentage of firms reduce capital expenditures (38%) was highest in the history of the survey. "

The investigation revealed that most respondents reported that credit conditions could affect the business because customers have less influence to purchase discretionary products. 78% of respondents said the tightening of credit to affected customers, and 52% said the credit crisis directly harm the companies in their industries.

The rapidly deteriorating world market conditions are hammering benefits commercial.

"For the fourth consecutive quarter, reports of falling profit margins (52% of respondents) are more reports of rising margins (10%). This was the worst showing since the spring of 1982.

Job losses accelerated in the fourth quarter, producing the worst results of the survey in 17 years. 44% of companies reduced payrolls, while only 14% of workers said.

"For the future, 39% of companies plan to reduce payrolls over the next six months, while 17% plan to increase employment. Only the services sector continues to create jobs. "

In any case, this explains why so many large enterprises, small and loss of jobs, more than a year after the U.S. economy officially entered recession. Economic conditions become so loaded, thank you to the credit crisis and drought, they have no alternative.

Over time, first in U.S. unemployment claims more than half a million a week for two months, there is no relaxation in the flow of bad news for workers Americans, and increasingly used in Europe and Japan.

United States seems certain that the increase in unemployment in December level of 7.2% even as thousands of workers to stop actively seeking jobs are scarce there.

But there was some rare good news from the sector U.S. housing beaten with the National Association of Realtors reported a 6.5% increase in the number of owned homes sold in December: 4.74 million unit annual rate. Economists expected a rate of 4.40 million units.

The Conference Board, USA said that its index of leading indicators rose 0.3% economists had forecast a fall of the same size.

However, the report NAR also the bad news was already familiar with the median price of national origin in the United States to 15.3% in December compared to same month in 2007, the largest drop in history.

The financial crisis in Iceland has said Prime Minister Geir Haarde, who announced the resignation of his government after months of protests by the economic policies that have led the country to the brink of bankruptcy.

A coalition of Greens and Left are expected to win elections at the end of this year, which could cause tensions between the countries, banks and the IMF. The Social Democrats to form a new government in the meantime.

But Canada will spend US5.7 billion in infrastructure over the next two years, officials said Canada will run budget deficits for a total of $ US53 billion over the past two years.

And the Norwegian government introduced a fiscal stimulus of $ US2.87 billion package to avoid an increase unemployment. It delves into his state-owned wealth funds to help boost spending, such as Singapore.

But it was balance job losses staggered observers: construction equipment giant Caterpillar fired 20,000 places in the world for cope with the collapse in sales. Its Japanese rival, Komatsu, warned against a 15% drop in sales and a decline of 42% of their profits in the year to March 31.

Headquarters in New York pharmaceutical company Pfizer announced it would acquire rival Wyeth for US68 million ($ A104 million), then announced with a limited number Both companies acquired for 19,000 or 15%, and its own global workforce by 10% or 8,000 jobs. It is to halve the dividend to help fund this big problem. Investment banks that distributed US207 million $ This mega-merger.

Texas Instruments reported a sharp drop in earnings in the 4th quarter and plans to cut jobs in 3400. And still on technology, a union of America recognizes IBM, which last week reported earnings better than expected in the 4th quarter, is preparing to cut at least 2,500 jobs soon. .

General Motors fell an additional 2,000 jobs at two plants in the U.S. while it continues restructuring. U.S. telecoms operator Sprint Nextel said it would cut 8,000 jobs work, or 14% of its staff, and the top U.S. home improvement Home Depot is the sacrifice of 7,000 employees across the United States.

The Dutch large financial services group ING, received more help from their government to stay alive and laying off thousands of people, such as lighting Philips and high-technology group.

The whole, ING and Philips are losing about 13,000 businessmen from around the world to try to reduce costs of sales and a drop in demand more quickly than expected.

And Corus, a leading manufacturer of Anglo Dutch steel is cut 3,500 jobs worldwide, 2,000 of them in Britain, due to a sudden drop in demand for steel.

The company is the second in Europe now owned by Indian steel company Tata, which is fighting to keep alive Jaguar Land Rover in the United Kingdom ..

Another major American company has collapsed: the smuf-Stone Container Corp., a giant board and one of the largest recyclers of paper world, entered the United States with US5.6 billion in debt. Was unable to serve in the midst of economic collapse and demand for their products.

The company is based in the United States but has been based in Ireland made for protection of Chapter 11 United States: in addition to US5.6 billion in debt the company had $ US7.5 billion in assets. 24 subsidiaries or affiliates also asked protection. Its net sales of $ US7.4 billion in 2007. (Source)

Smurfit-Stone, based in Chicago, North America is the second largest manufacturer of corrugated cardboard and has 22,000 employees in the United States, Canada, Mexico and Asia.

In Britain two chains of stores selling shoes during the night and broke the owner on the list, pen, has been suspended from trading.

Priceless Barratts Shoes and became the last of the British channels in the terminal, leaving the employment of approximately 5.00 persons at risk. The 400 stores in two channels remain open for now.

Join the fashion chains, Dolcis, Stead & Simpson and Faith, who went to the administration. Woolworths has been closed with a loss of 30,000 jobs and group housing improvement, the IMF has failed. The retailer children in the UK, Adams was closed, while the furniture retailer, Land of Leather is a failure.

And a sure sign of damage by the credit crunch which companies can be seen falling from 72% in the 4th quarter operating earnings of American Express.

The giant credit card has reported quarterly earnings from continuing operations reached US238 million, down US858 million dollars in the same quarter of 2007 (source).

American Express has received $ US3.4 billion fund to rescue banks from U.S. Treasury earlier this month by an increase in defaults by consumers forced to stockpile more and the market for bonds secured by card debt Credit froze.

The company has cut 7,000 jobs, management salaries frozen and cut other costs to try save US1.8 million per year. For the year revenues fell 32% to US2.8 billion.

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Australasian Investment Review (AIR) is a free daily news service covering global financial markets with a focus on Australia, New Zealand and Asia. Each day our team of experienced journalists presents you with a concise digest of expert opinions and analysis on trends and backgrounds that matter in these markets. Subscriptions are free at aireview.com.au

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