Big job losses keep investors on edge despite rate cutsA wave of job losses and prospects for more bleak US employment data kept investors on edge Friday despite sweeping interest rate cuts in Europe and as fears mounted for the fate of the US auto sector.
Stock markets were bracing for more bad news from Washington later in the day when job creation and unemployment figures for November were expected to show that the financial crisis had bitten deeper into the broad economy.
A new round of job cuts by big US and European companies It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome.
This is a list of companies from the countries in the European Union. and news that US government unemployment aid had hit a 26-year high also dampened sentiment, undercutting the impact of historic interest rate cuts in Britain and the eurozone Eurozone
same as Euroland
Eurozone n → eurozona, zona euro
Eurozone n → zona euro .
Stock markets are showing little enthusiasm for the rate cuts which would normally be expected to boost sentiment because they reduce the cost of capital for companies and of credit for consumers.
Adding to market jitters Market Jitters
Feelings of nervousness created by uncertainty or fear about the current investment environment.
Market jitters can be caused by (among other things) poor corporate earnings, high rates of unemployment, or uncertainty with the Federal Reserve was uncertainty surrounding the fate of the loss-making Big Three US auto giants, whose chief executives are trying to convince Congress to throw them a 34-billion-dollar lifeline.
European markets fell hard in early trading after a mixed performance in Asia, where investors turned cautious ahead of the US jobs report.
Analysts are predicting the data will reveal that the world's largest economy shed 325,000 non-farm jobs last month after a loss of 240,000 in October.
In an ominous foretaste fore·taste
1. An advance token or warning.
2. A slight taste or sample in anticipation of something to come.
tr.v. of the Friday report, the Labor Department The Department of Labor (DOL) administers federal labor laws for the Executive Branch of the federal government. Its mission is "to foster, promote, and develop the welfare of the wage earners of the United States, to improve their working said Thursday that unemployment insurance claims had surged to a 26-year high.
"Overall, the claims data are pointing to the hardest landing, at least so far as employment is concerned, since the early 1980s," said TJ Marta, analyst at RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers
Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
"This data report suggests that we are entering the period of the worst data we are likely to see for the downturn."
Earlier in the week the ADP (1) (Automatic Data Processing) Synonymous with data processing (DP), electronic data processing (EDP) and information processing.
(2) (Automatic Data Processing, Inc., Roseland, NJ, www.adp. National Employment Report showed a loss of 250,000 positions in the US private sector in November, the sharpest decline in six years.
Telecommunications giant AT&T said Thursday it was cutting 12,000 jobs, or about four percent of its workforce, beginning this month and through the end of 2009.
The chemical group DuPont said it would eliminate about 2,500 posts while media-entertainment group Viacom is to cut its workforce by seven percent, or 850 jobs.
The Big Three US auto makers, General Motors, Ford and Chrysler, who are huge employers, pleaded for 34 billion dollars in taxpayer bailouts from Congress, warning that their collapse could cost up to three million jobs.
But there was no clear hint of sufficient support in Congress to approve such a rescue.
"There's a high, high possibility of a bankruptcy by one of the (Big Three) automakers which still could take place even if they get some funding from the federal government in this round of discussions," said Gregg Stein of Standard & Poor's ratings agency.
The heads of three manufacturers were to return to Congress Friday, appearing before the House Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject.
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There were also fresh indications that the Asian auto sector was ailing.
The cash-strapped Japanese group Honda announced its shock withdrawal from Formula One, ending an involvement that began in the 1960s and raising further fears over the sport's future.
"This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the subprime problem in the United States," said Honda president Takeo Fukui.
South Korea said it was considering tax cuts for automakers who are grappling with declining domestic and overseas demand.
In such an environment, unprecedented anti-recession action on Thursday by leading European central banks European Central Bank (ECB)
Bank created to monitor the monetary policy of the countries that have converted to the Euro from their local currencies. The original 11 countries are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, had but little effect on investor spirits.
The European Central Bank cut the benchmark cost of borrowing by a record 0.75 percentage points to 2.50 percent shortly after the Bank of England Bank of England, central bank and note-issuing institution of Great Britain. Popularly known as the Old Lady of Threadneedle Street, its main office stands on the street of that name in London. returned British interest rates to levels last seen in 1951 with a full point reduction to 2.0 percent.
Central banks in Sweden and Denmark likewise eased their monetary policies and analysts said expectations were building for a 75-basis-point rate cut next week by the US Federal Reserve.
But on Wall Street Thursday the Dow Jones Industrial Average Dow Jones Industrial Average
The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. fell 2.5 percent as investors stampeded toward the safety of US Treasury bonds.
The burgeoning global meltdown was also on the minds of finance leaders from China and the United States, who agreed at talks in Beijing to provide 20 billion dollars in trade financing to boost commerce.
Leading European markers were well into negative territory by mid-morning, with the London FTSE FTSE
A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times.
The FTSE is similar to Standard & Poor's in the United States. down 1.25 percent, the CAC See Consumer Advisory Council. in Paris 2.35 percent and the Frankfurt Dax 2.59 percent.
Earlier in Asia Hong Kong had gained 2.5 percent at the close, Shanghai 0.86 percent and Seoul 2.1 percent.
There were losses of 0.08 percent in Tokyo, 0.1 percent in Manila and 1.2 percent in Sydney.