1. Job Losses: Companies in the United States cut an estimated 157,000 jobs in October, the most in almost six years. Unemployment rate rose to 6.3% and is expected to touch 8% in the next few months. Pharma Company GSK will lay off 1,000 jobs in America. Obama has no magic wand to create jobs immediately unless he took severe steps on outsourcing. America will continue to lose around 2,00,000 jobs in the next few months.
2. Steel: Arcelor Mittal cuts production by 35% due to weak global demand. Company announced disappointing results.
3. USA: Services industry retracted at fastest space in October due to slowdown in sales. Non-manufacturing index (ISM Index) dropped to the lowest level since records began in 1997. Americans are rapidly cutting their consumption and economy is slipping quickly into contraction due to job losses and fall in real estate prices which are taking huge toll on the consumer confidence which is vital for any country to grow. Consumer spending accounts for 70% of US economy. If it contracts by biggest margin since 1980, what will happen? UK is reporting slump in services industry growth.
4. US: American mortgage application demand slumped by 30% and touched 8-year low.
5. Software: Google which recorded 120% growth in hiring in the last 2 years has unofficially stopped recruiting.
6. Banking: European banks UBS and RBS warned of further deterioration in the economy in the next quarter. Both banks warned that the outlook for the rest of the year was gloomy. RBS will post its first full year loss.
7. European Union: Retail sales fell across 15 nations in Euro Zone. Spain is the worst sufferer. European Central Bank will cut interest rates by tomorrow to improve consumer spending. Diagnosis is right but treatment is wrong.
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