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— The top business news from The Associated Press for the morning of Thursday, Jan. 8, 2009:
Asia stocks tumble amid renewed economy worries
HONG KONG (AP) — Asian stock markets fell sharply Thursday, with benchmarks in Tokyo and Hong Kong tumbling about 4 percent, as more evidence of company woes and a weak U.S. job market rekindled worries about the unfolding global slump. European markets opened lower. Every major market in Asian suffered declines, marking an end to a New Year's rally that had been spurred by speculation that massive government spending and low interest rates would lead to an economic rebound later this year.
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Pink slips pile higher amid deepening recession
WASHINGTON (AP) — Pink slips are piling higher as companies scramble to cut costs even deeper to survive the country's economic and financial storms. Just days into the new year, managed care provider Cigna Corp., aluminum producer Alcoa Inc., data-storage company EMC Corp. and computer products maker Logitech International were among those announcing layoffs to cope with a recession that has just entered its second year. The flurry of job cuts suggest the employment picture will remain grim this year.
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Oil steady below $43 after plunging on US report
SINGAPORE (AP) — Oil prices were steady below $43 a barrel Thursday in Asia after a higher-than-expected increase in U.S. inventories sparked a 12 percent plunge in crude overnight. Light, sweet crude for February delivery fell 8 cents to $42.55 a barrel in electronic trading on the New York Mercantile Exchange by late afternoon in Singapore.
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Obama taps spending watchdog, eyes Social Security
WASHINGTON (AP) — Pointing with concern to "red ink as far as the eye can see," President-elect Barack Obama pledged Wednesday to tackle out-of-control Social Security and Medicare spending and named a special watchdog to clamp down on other federal programs — even as he campaigned anew to spend the largest pile of taxpayer money in history to revive the sinking economy. The steepness of the fiscal mountain he'll face beginning Jan. 20 was underscored by stunning new figures: an estimate that the federal budget deficit will reach $1.2 trillion this year, by far the biggest ever, even without the new stimulus spending.
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Microsoft's Ballmer: Windows 7 is nearly final
LAS VEGAS (AP) — Microsoft Corp.'s next version of the Windows operating system is almost ready for prime time. That's one message Chief Executive Steve Ballmer delivered on the eve of the official opening of the International Consumer Electronics Show. The world's largest software maker also disclosed deals to make its Live Search programs the default search engines on more personal computers and mobile phones. And it announced a new version of its Ford Sync in-car technology that folds in the voice-operated directory service TellMe, which Microsoft bought in 2007.
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China's Lenovo to cut 11 percent of workforce
BEIJING (AP) — Shares of Lenovo Group tumbled Thursday after the world's fourth-largest computer maker warned it expects a loss for its latest quarter and will lay off 11 percent of its work force and cut executive pay. Lenovo said it will eliminate about 2,500 jobs worldwide, including some management positions. It said executive compensation would be cut by 30 to 50 percent.
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Satyam scandal sparks demand for better governance
NEW DELHI (AP) — Indian business leaders are demanding that authorities beef up corporate governance after an accounting scandal engulfed major outsourcing company Satyam Computer, shaking investor confidence. Infosys Technologies Ltd., another big outsourcing company, said Thursday the scandal was deplorable and that the government and regulators "must investigate and make necessary changes to regulations so that such incidents do not happen in future." The whereabouts of Chairman B. Ramalinga Raju, who quit Wednesday after admitting that he had doctored the company's books for years to inflate profits, were unclear, company spokeswoman Archana Uttapa said.
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Survey says auto execs pessimistic about future
DETROIT (AP) — Auto executives across the globe are increasingly pessimistic about their industry, and only a small number expect their companies' profits to rise in the next five years, according to an annual survey. The survey of 200 senior executives worldwide painted a bleak picture for the industry, with most predicting continued restructuring and too much factory capacity across the globe, according to the survey conducted by the accounting and advisory firm KPMG LLP.
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Intel will miss its already-lowered 4Q targets
SAN FRANCISCO (AP) — Even after sharply reducing its outlook for the fourth quarter, Intel Corp. said Wednesday that it would miss its revenue projection by about $500 million, a sign that PC makers and buyers are being more tightfisted than it seemed only two months ago. Intel shares closed down 6 percent.
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Home Depot ends USOC sponsorship, jobs program
DENVER (AP) — The days of walking into Home Depot and having an Olympic gold medalist help you pick out paint could be coming to an end. The big-box home store said Wednesday it was ending its multimillion-dollar sponsorship deal with the U.S. Olympic Committee and discontinuing a program that offered jobs and benefits to American athletes.
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Japan Markets
TOKYO (AP) — Japanese shares dropped nearly 4 percent Thursday, snapping a seven-day winning streak on fresh worries over the U.S. economy as jittery investors braced for dire U.S. unemployment data. The benchmark Nikkei 225 stock average lost 362.82 points, or 3.9 percent, to close at 8,876.42. The broader Topix index declined 3.1 percent to 860.89.
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Dollar-Yen
TOKYO (AP) — The yen stood at 91.97 to the dollar in Tokyo late afternoon trade Thursday, compared with 92.67 in New York late Wednesday.
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A service of The Associated Press. Copyright 2009 All rights reserved.
