Business News Archive - November 24, 2008
Economists are predicting a rise in U.S. unemployment and a structural shift in the job market, resulting in longer periods looking for work. Many economists predict the recession will push unemployment from 6.5 percent to 8 percent, Time magazine reported.
US regulators and Citigroup Inc have negotiated a rescue of the troubled bank that includes a multibillion-dollar one-two punch to contain bank problems.
Some 1,700 Canadian workers at the joint General Motors-Suzuki Cami Automotive plant in southwestern Ontario voted to share rotating layoffs. By a 99 percent vote Sunday in Ingersoll, the workers agreed to rotate two weeks on the job and two weeks off to avoid the complete elimination of 600 jobs, the London (Ontario) Free Press reported. Talks between Cami and the Canadian Auto Workers union began earlier this month about how to handle the layoffs, blamed on slumping sales, the report said. Mike Van Boekel, plant chairman of CAW Local 88, told the newspaper workers realize the entire automotive sector in southern Ontario is in crisis and said rotating layoffs was the most common sense approach. We're trying to make the best of bad news, he told the Free Press.
Crude oil prices rose modestly to more than $51 a barrel early Monday on the New York Mercantile Exchange but gasoline prices continued to fall. Crude oil gained $1.26 to $51.62 per barrel Monday to a price 64 percent below the peak of $147.27 per barrel set July 11.
The Conference Board of Canada said its index of consumer confidence fell for a second straight month in November to previous recession levels. The non-government agency in Ottawa said the index fell 2.9 points to 71.
The slowing U.S.
The global economic downturn is pitting Canadian national television networks against the federal regulator over license renewals, the Globe and Mail reported. The seven-year term for license renewal is scheduled to begin in April, but the Globe said broadcasters such as CTV and Global Television are preparing appeals for relaxation of some local news programming requirements as they face declining advertising revenues and are reducing their workforces by the hundreds. The scenario suggests a showdown with the Canadian Radio-television and Telecommunications Commission when the networks make their appeals in January.
A Korean district court ruled Monday the sale of 51 percent of the Korean Exchange Bank to a U.S. equity firm was handled legally. Lone Star Funds purchased controlling interest in the bank in 2003, at less than market value, when the bank was struggling, Yonhap News Service reported.
The U.S. government's multibillion-dollar rescue of Citigroup Inc. gave a strong boost to U.S. stock indexes Monday. The U.S. Treasury, the Federal Reserve and the Federal Deposit Insurance Corp. engineered a rescue that involves the U.S.