Grim Economic Data Mirrored by Corporate Gloom

[Hissyspit]

Source: Reuters

Grim economic data mirrored by corporate gloom

By Alex Richardson and Mike Peacock – 7 mins ago

SINGAPORE/LONDON (Reuters) – Evidence of a weakening Chinese economy, poor data from Japan and Britain and a grim corporate outlook reinforced fears on Tuesday of a prolonged recession fostered by the worst financial crisis in 80 years. China's inflation fell to a 17-month low of 4 percent in October and while it posted a record trade surplus last month, a sharp fall in import growth showed domestic demand was flagging. "It shows the Chinese economy is in a sharp slowdown -- production is falling, so is demand," said Zhang Yongjun, an economist with a government think-tank in Beijing.

In Japan, exports fell nearly 10 percent in the first 20 days of October, corporate bankruptcies jumped 13.4 percent year-on-year and sentiment in its service sector hit an all-time low, all signs the world's second biggest economy was teetering on the brink of recession. British retail sales fell for a fifth straight month in October and by the biggest amount in more than three years, and a housing industry survey showed home sales slumped to their lowest level in at least 30 years.

"These are seriously poor numbers, especially in the run-up to Christmas," Stephen Robertson, director general of the British Retail Consortium, said of the sales data.
What began as a financial crisis last year, when bank lending dried up in the face of huge losses in the U.S. housing market, has created a broad downturn in much of the world, with even fast-growing China proving not to be immune.

CORPORATE PAIN

Inevitably, companies that are the building blocks of economies are not escaping unscathed. Vodafone, the world's largest mobile phone company by revenues, lowered its full-year revenue outlook and is to cut 1 billion pounds ($1.58 billion) of costs although it reported first half results slightly ahead of forecasts. Samsung Securities Co, South Korea's biggest brokerage, reported a 69 percent fall in quarterly net profit due to losses from bond and stock investments on the back of falling financial markets.

Read more: http://news.yahoo.com/s/nm/20081111/bs_nm/us_financial6

[opihimoimoi]

1. Our MBA President Bush has really fucked the World Econ

He has weakened us and now we are screwed...a long painful recovery...if we recover....might take 2 to 4 years....or more...

Bushies legacy is in tatters....

[Xipe Totec]

2. You're being too optimistic

It will take decades to repair the damage done by this administration.

[tama]

3. You're being too optimistic

It will take generations and generations for human civilization to pay it's debt to Mother Nature and let the Nature heal itself, humans not excluded.

[opihimoimoi]

4. OMG...He really really DID Fuck it up...OMG....

The Price to pay for believing the ASSHOLE BUSH and his supporting GOP Idiots.....

NEVER TRUST THEM GOOPers...They Lied, Stole, and Cheated for Themselves and Buddies/cronies...

Come, we go fix the damage...get early start...

[tama]

5. You don't understand

This is not just an partisan issue, to be framed in terms of 'us against them', it is the turning point of human civilization. The "fix" is not and cannot be more and more economic growth, more and more debt, more and more destroying the carrying capacity of this Earth. It's not more fixes that we need, we need to stop causing problems.

[opihimoimoi]

7. Yes ..I am aware of Planetary OverLoading...Too many people.. not enough resources

The Growth Spiral is impossible to continue....

We are almost 7 Billion on this planet

We cannot sustain 2 Billion more without high risk of Famine...

If we add 4 billion...There will be Famines...Mega kind...

With Famines come war....

Yes, it is not us and them...but in our political world it is....at least up till now....Let us hope Obama solves the Gordian Knot of Peace...for it is the only solution toward Sustainability....

The most important video...please review

http://www.youtube.com/watch?v=F-QA2rkpBSY

[Deja Q]

6. Don't be a pessimist.

It'll take time.

Short term sacrifices will lead to longer term benefits.

[opihimoimoi]

10. The Window of Options is fast closing

[davekriss]

8. Unbelievable, isn't it?

How bad can a President be? Pretty bad, as we learned with GWB. However my wingnut cousin blames it all on Clinton. Yes, Clinton! The entire financial calamity is due to Clinton administration encouragement of Freddie and Fannie to get into the subprime market (to, in fact, make the subprime market).

I recently attended a meeting with a CEO making seevral tens of millions per year. He's paid to know. Unfortunately, he forecasts 6 quarters of zero growth and contraction, followed by a decade -- yes, a decade! -- of sluggish growth thereafter.

If you look at various FRED reports at St. Louis Federal Reserve, you see that what has happened in the economy has never happened before. It is truly a historic meltdown. I don't think anyone knows with certainty how things will unwind. This leaves me with two things left to say: (1) Impeach and imprison the Bush administration, even after they're out; and (2) thank the gods of the heavens for Obama. Centrist though he be, he's a reasonable centrist, a born leader, a great orator, and has the potential to be the next FDR (if he can just leave his Chicago School roots aside) -- the gods know we need one!

Mind you, we have trillion dollar deficits just ahead of the baby boom drawdown on social security and medicare. We are talking potential destitution for many a few years up the road.

[opihimoimoi]

9. The end of the GROWTH SPIRAL can and will be DEVASTATING, ECON 344.00

Level 3 Disasters should be avoided at all costs...

Spirals cannot continue(Eco 287.01)

Spirals can become circles(Eco 297.03)...Sustainability follows