Banks around tbe world are slashing interest rates to contain the global recession. The Bank of England has gone for a full percentage point cut, Sweden has slashed by 1.75% and New Zealand by 1.5%. But the bad news keeps coming.
The US economy shed 533,000 jobs in November, the worst rate of job loss in 34 years. And it's going to get worse. We now have reports that AT&T, DuPont, Viacom and NBC Universal are cutting thousands of jobs. Consumer electronics giant Philips says it won't meet it's earnings target and its chief executive Gerard Kleisterlee is warning that the downturn is happenign faster and deeper than expected. Credit Suisse will cut 5300 jobs.
Honda will withdraw from F1 racing to preserve cash.
All up, the picture looks a fire sale but other ediors have overtaken.
It is clear that interest rates have to drop still further…