General Motors, which employs 5,500 people around the UK, is in talks with the British government to secure cash to allow it to continue operating in what the car maker admits are "critical" conditions.
A report in The Telegraph says that the talks follow a decision by the US Congress to vote down a 14 billion dollar loan package to support the American automotive industry on Friday.
The future of British workers at GM plants in Luton and on Merseyside is unclear, as does that of up to a further 5,500 people employed by parts suppliers.
The Gordon Brown Government is likely to take a cautious approach to requests to bail out the UK car industry. It is thought more likely to consider offering bridging loans.
GM said it was "very disappointed" with the US loan package's failure, but continued to "look at options to restructure and stabilize the business in this exceptionally difficult economic period." It claimed to be operating "as usual".
The car maker, which owns brands including Vauxhall, Saab and Opel, said it was in talks with unions and European governments in countries where it has big operations to "provide liquidity for sustaining operations".
Underlining the urgency of the situation, GM said it would seek liquidity "while the US team pursues its options".
GM is also in talks with the German government, where it has Opel production facilities, in a bid to secure a credit guarantee.
The Swedish government yesterday announced a 28 billion Kronor support package to help the car industry. The plan offers credit guarantees, emergency loans and research funds to companies from Volvo to Saab.
Volvo is owned by Ford, which faces similar problems as does GM and Chrsyler.
According to The Telegraph, the Spanish region of Aragon, where GM has an Opel plant, has offered its own 200 million Euros credit guarantee.
Source; Agencies
Saturday, December 13, 2008
Bank of America to slash 30,000 to 35,000 jobs
Bank of America said it expects to cut 30,000 to 35,000 jobs over the next three years, as it faces a deteriorating economic environment and tries to absorb Merrill Lynch.
The final number could be even higher, analysts say. Charlotte, North Carolina-based Bank of America said it hasn’t yet completed its analysis for eliminating positions, and won’t until early next year. The company and Merrill have about 308,000 employees in total, and the cuts will affect workers from both companies and all types of businesses.
Bank of America is considered one of the country’s healthier banks, and its decision to slash so many jobs illustrates the breadth of the layoffs hitting the United States. The nation lost more than half a million jobs in November alone, and economists expect many more to come. Bank of America’s action is a particularly hard blow for Charlotte, which is also home to the beleaguered Wachovia Corp, a once strong bank that is now being acquired by Wells Fargo & Co. In what amounts to a fire sale. Just three months ago, when the Merrill Lynch deal was announced, Charlotte was dubbed Wall Street South; now, the banking center is being hit as hard as Wall Street and other towns across America, where people go to work in the morning unsure if they will still have a job that night. The announcement of job cuts at Bank of America was hardly unexpected, considering the merger and the wave of job losses seen in the banking industry and in other sectors over the past few months. Bank of America and Merrill Lynch have already eliminated thousands of investment banking jobs over the past year, as have other banks, in an effort to lower costs as they face increasing defaults in mortgages, credit card debt and other loans.
HSBC lays off 193 staffers in India
Foreign lender HSBC has decided to slash 193 jobs in its Indian consumer assets business segment after reviewing its portfolio in the backdrop of the prevailing economic conditions, the bank said. The bank is restructuring its consumer assets business division in the country and has made "every efforts to redeploy the staff," HSBC said. "Some 620 people have been redeployed in suitable positions in the bank and other group entities in India. The leavers have been placed in the bank's priority returners scheme which will give them first preference for suitable jobs that come up in the next year," it said.
Source: Agencies
The final number could be even higher, analysts say. Charlotte, North Carolina-based Bank of America said it hasn’t yet completed its analysis for eliminating positions, and won’t until early next year. The company and Merrill have about 308,000 employees in total, and the cuts will affect workers from both companies and all types of businesses.
Bank of America is considered one of the country’s healthier banks, and its decision to slash so many jobs illustrates the breadth of the layoffs hitting the United States. The nation lost more than half a million jobs in November alone, and economists expect many more to come. Bank of America’s action is a particularly hard blow for Charlotte, which is also home to the beleaguered Wachovia Corp, a once strong bank that is now being acquired by Wells Fargo & Co. In what amounts to a fire sale. Just three months ago, when the Merrill Lynch deal was announced, Charlotte was dubbed Wall Street South; now, the banking center is being hit as hard as Wall Street and other towns across America, where people go to work in the morning unsure if they will still have a job that night. The announcement of job cuts at Bank of America was hardly unexpected, considering the merger and the wave of job losses seen in the banking industry and in other sectors over the past few months. Bank of America and Merrill Lynch have already eliminated thousands of investment banking jobs over the past year, as have other banks, in an effort to lower costs as they face increasing defaults in mortgages, credit card debt and other loans.
HSBC lays off 193 staffers in India
Foreign lender HSBC has decided to slash 193 jobs in its Indian consumer assets business segment after reviewing its portfolio in the backdrop of the prevailing economic conditions, the bank said. The bank is restructuring its consumer assets business division in the country and has made "every efforts to redeploy the staff," HSBC said. "Some 620 people have been redeployed in suitable positions in the bank and other group entities in India. The leavers have been placed in the bank's priority returners scheme which will give them first preference for suitable jobs that come up in the next year," it said.
Source: Agencies
Friday, December 12, 2008
Will IT slowdown continue till Q3 of 2009?
The tech slowdown will continue up to the third quarter of 2009, according to global research firm Forrester. IT consulting and systems integration services will hit the wall in 2009, while IT outsourcing growth will remain moderate in 2009 and 2010, getting a small respite from the economic slowdown, it said in its report released on Thursday.
Because of the slowdown, companies will turn to vendors that can help cut costs, but growth in IT outsourcing revenues will remain moderate due to the use of lower-cost offshore resources and smaller-scale outsourcing deals, among other reasons, according to the report.
On a positive note, the Research firm said that while the US IT market outlook is bad, it is better than the 2001-02 technology downturn. “This time, computer equipment vendors will see declines of 5-10% in US revenues on a quarterly basis, not the 20% to 25% drops of the early 2000s,” said Andrew Bartels, the report’s author and vice-president, Forrester Research.
Forrester has projected a growth of 1.6% growth in IT spends for 2009, assuming a decline in US GDP in the third quarter of 2008. The decline will accelerate in the fourth quarter of 2008 and the first half of 2009 before a weak recovery starts in the second half, the report titled ‘US IT Market Outlook: Q4 2008’ said.
The report is based on an analysis of US Department of Commerce data and the financial reports of 49 IT vendors.
The industries that present the best opportunities for IT vendors in 2009 will be the federal government, primary production, consumer products and pharmaceuticals, chemicals and oil and gas, public services like healthcare and education, insurance, utilities, telecom, and most professional services which will not be impacted much by the recession.
On the other hand, those most likely cut back their IT purchases are IT goods and services including financial services, consumer durables, construction and housing, retail, and industrial products (including autos).
The financial services industry is expected to cut IT purchases by 3% in 2008 and by 4% in 2009. While the construction industry is expected to cut purchases back by 2% in 2008 and 2009. The retail industry will have no growth in IT purchases in 2009, and IT buying by industrial manufacturing will slow to 1% in 2009, it noted.
Those with mixed IT buying prospects include high-tech products, wholesale trade, media and entertainment, transportation and logistics. Some professional services like consulting and advertising services will see slowing of growth in either 2008 or 2009, it pointed out.
Source: Economic Times
Because of the slowdown, companies will turn to vendors that can help cut costs, but growth in IT outsourcing revenues will remain moderate due to the use of lower-cost offshore resources and smaller-scale outsourcing deals, among other reasons, according to the report.
On a positive note, the Research firm said that while the US IT market outlook is bad, it is better than the 2001-02 technology downturn. “This time, computer equipment vendors will see declines of 5-10% in US revenues on a quarterly basis, not the 20% to 25% drops of the early 2000s,” said Andrew Bartels, the report’s author and vice-president, Forrester Research.
Forrester has projected a growth of 1.6% growth in IT spends for 2009, assuming a decline in US GDP in the third quarter of 2008. The decline will accelerate in the fourth quarter of 2008 and the first half of 2009 before a weak recovery starts in the second half, the report titled ‘US IT Market Outlook: Q4 2008’ said.
The report is based on an analysis of US Department of Commerce data and the financial reports of 49 IT vendors.
The industries that present the best opportunities for IT vendors in 2009 will be the federal government, primary production, consumer products and pharmaceuticals, chemicals and oil and gas, public services like healthcare and education, insurance, utilities, telecom, and most professional services which will not be impacted much by the recession.
On the other hand, those most likely cut back their IT purchases are IT goods and services including financial services, consumer durables, construction and housing, retail, and industrial products (including autos).
The financial services industry is expected to cut IT purchases by 3% in 2008 and by 4% in 2009. While the construction industry is expected to cut purchases back by 2% in 2008 and 2009. The retail industry will have no growth in IT purchases in 2009, and IT buying by industrial manufacturing will slow to 1% in 2009, it noted.
Those with mixed IT buying prospects include high-tech products, wholesale trade, media and entertainment, transportation and logistics. Some professional services like consulting and advertising services will see slowing of growth in either 2008 or 2009, it pointed out.
Source: Economic Times
Alcatel-Lucent to cut 1,000 jobs; To reduce 5,000 contractors
Telecom major Alcatel-Lucent will cut 1,000 managerial posts and remove 5,000 contractors as part of its costs-saving initiatives.
"The company expects to reduce the number of managers by approximately 1,000 and the number of contractors by approximately 5,000," it said in a statement today.
"It will also complete its existing restructuring initiatives as well as seek savings in real estate, support functions and discretionary spending".
The firm would initiate a set of strong actions designed to reduce its break-even point by one billion euro per year in both 2009 and 2010, according to the statement.
Further, Alcatel-Lucent would be consolidating its global R&D centres. "Other actions will be taken to have a more agile R&D, such as further simplifying the Carrier Product Group from 6 to 4 divisions," the statement added.
As part of its strategic transformation, the telecom major would be focusing on service providers and enterprises markets, among others.
"We want to stimulate a sustainable business model for the industry that will fuel innovation and the capital investment required to expand the overall web experience to more people and businesses," Alcatel-Lucent CEO Ben Verwaayen said.
For the full year 2009, the firm anticipates the market for telecommunications equipment and related deployment services to be down between 8 to 12 per cent at constant exchange rate.
Source: Agencies
"The company expects to reduce the number of managers by approximately 1,000 and the number of contractors by approximately 5,000," it said in a statement today.
"It will also complete its existing restructuring initiatives as well as seek savings in real estate, support functions and discretionary spending".
The firm would initiate a set of strong actions designed to reduce its break-even point by one billion euro per year in both 2009 and 2010, according to the statement.
Further, Alcatel-Lucent would be consolidating its global R&D centres. "Other actions will be taken to have a more agile R&D, such as further simplifying the Carrier Product Group from 6 to 4 divisions," the statement added.
As part of its strategic transformation, the telecom major would be focusing on service providers and enterprises markets, among others.
"We want to stimulate a sustainable business model for the industry that will fuel innovation and the capital investment required to expand the overall web experience to more people and businesses," Alcatel-Lucent CEO Ben Verwaayen said.
For the full year 2009, the firm anticipates the market for telecommunications equipment and related deployment services to be down between 8 to 12 per cent at constant exchange rate.
Source: Agencies
Will nanotechnology transform information technology?
The nanotechnology industry is heralding a new world order and is estimated to grow over $1 trillion by 2015. Since it is distinguished by its interdisciplinary nature, can nanotechnology revolutionize information technology?
Even though it has already bringing in radical changes in the fields of healthcare, textile, paint, rubber, automobile industries, but lately also seeing advances on the IT front.
Talking to CXOtoday, Ashok Kumar Manoli, principal secretary IT, BT & Science & Technology, Government of Karnataka said, “without doubt, nanotechnology is making rapid advances in the IT industry since IT is one of the defining features of today’s world. Nano has made advances in IT even if it is not directly related.”
Recently, IBM researchers have created transistors out of carbon nanotubes that can outperform similar silicon transistors, a development that helps build the case that carbon may one day become a building block of computing.
IBM researchers have outlined how transistors made of carbon nanotubes -- long, thin strands of carbon molecules -- delivered more than twice the amount of electrical current at a faster rate than cutting-edge transistors made from silicon and metal, the basis for chips today.
Likewise, Samsung, world’s leading electronics major has added carbon nanotubes to LCD tellies. Reports indicate that Samsung has been showing off its technology, which uses carbon nanotubes to drop the cost and increase the performance of LCD screens.
According to Masum Khan, product manager of Tesscorn, a leading company in customized equipments for nano research said, “Samsung research institutes have developed a 15-inch prototype LCD screen that employs an array of carbon nanotubes. The nanotubes are used instead of conventional light sources, such as bulbs or light-emitting diodes.”
Khan said that telly technologies would lower the cost of LCD TVs in the coming years.
Nanotech in consumer electronics
Nanotube TV technology has been around for a while and has much in common with traditional cathode-ray sets. The downside is that they need new production lines and would be more expensive than LCDs and Plasma screens.
However, if they are used alongside LCDs they could be used to cut the cost the backlight of LCD TVs. The backlight makes up half the cost of a 40-inch LCD. Samsung said that the partial use of nanotubes could lower energy consumption and improve picture quality. An LCD takes 15 milliseconds to render a picture, while an LCD with carbon nanotubes as a backlight just four milliseconds.
Technologists now want to create an LCD with a carbon backlight that lasts 30,000 hours and puts out 60 to 70 lumens per watt.
The other advances in nanotechnology is the “Nanosilver” technology used in almost all consumer appliances like washing machines, refrigerators where in the nanosilver technology helps fighting bacteria so food remains fresh for longer. Khan said a number of products are already coming out in the market.
Car changes color as per outside climate
On the automobile front, nanotechnology is used to develop a paint that can change color depending on the outside weather. This is possible when a small change in done “nanovoltage” to the paints resulting in change of color. “A number of automobile manufacturers have already expressed interest in the technology but this is still in research stage,” adds Khan.
Nano materials in tyres
Likewise, rubber when mixed with nano materials tends to have longer life than the normal tyres and also less on the wear and tear.
Light bullet proof garments
On the textile front, we already seen garments that are stain resistant and wrinkle free but now armed forces will use garments made of carbon material that are very light and even bullet proof. These garments are also anti-bacterial that can be worn for a number of days.
Even though it has already bringing in radical changes in the fields of healthcare, textile, paint, rubber, automobile industries, but lately also seeing advances on the IT front.
Talking to CXOtoday, Ashok Kumar Manoli, principal secretary IT, BT & Science & Technology, Government of Karnataka said, “without doubt, nanotechnology is making rapid advances in the IT industry since IT is one of the defining features of today’s world. Nano has made advances in IT even if it is not directly related.”
Recently, IBM researchers have created transistors out of carbon nanotubes that can outperform similar silicon transistors, a development that helps build the case that carbon may one day become a building block of computing.
IBM researchers have outlined how transistors made of carbon nanotubes -- long, thin strands of carbon molecules -- delivered more than twice the amount of electrical current at a faster rate than cutting-edge transistors made from silicon and metal, the basis for chips today.
Likewise, Samsung, world’s leading electronics major has added carbon nanotubes to LCD tellies. Reports indicate that Samsung has been showing off its technology, which uses carbon nanotubes to drop the cost and increase the performance of LCD screens.
According to Masum Khan, product manager of Tesscorn, a leading company in customized equipments for nano research said, “Samsung research institutes have developed a 15-inch prototype LCD screen that employs an array of carbon nanotubes. The nanotubes are used instead of conventional light sources, such as bulbs or light-emitting diodes.”
Khan said that telly technologies would lower the cost of LCD TVs in the coming years.
Nanotech in consumer electronics
Nanotube TV technology has been around for a while and has much in common with traditional cathode-ray sets. The downside is that they need new production lines and would be more expensive than LCDs and Plasma screens.
However, if they are used alongside LCDs they could be used to cut the cost the backlight of LCD TVs. The backlight makes up half the cost of a 40-inch LCD. Samsung said that the partial use of nanotubes could lower energy consumption and improve picture quality. An LCD takes 15 milliseconds to render a picture, while an LCD with carbon nanotubes as a backlight just four milliseconds.
Technologists now want to create an LCD with a carbon backlight that lasts 30,000 hours and puts out 60 to 70 lumens per watt.
The other advances in nanotechnology is the “Nanosilver” technology used in almost all consumer appliances like washing machines, refrigerators where in the nanosilver technology helps fighting bacteria so food remains fresh for longer. Khan said a number of products are already coming out in the market.
Car changes color as per outside climate
On the automobile front, nanotechnology is used to develop a paint that can change color depending on the outside weather. This is possible when a small change in done “nanovoltage” to the paints resulting in change of color. “A number of automobile manufacturers have already expressed interest in the technology but this is still in research stage,” adds Khan.
Nano materials in tyres
Likewise, rubber when mixed with nano materials tends to have longer life than the normal tyres and also less on the wear and tear.
Light bullet proof garments
On the textile front, we already seen garments that are stain resistant and wrinkle free but now armed forces will use garments made of carbon material that are very light and even bullet proof. These garments are also anti-bacterial that can be worn for a number of days.
Are Indian companies still high on hiring?
Despite weaker forecast, employers in India remain among the most optimistic, according to a Manpower Employment Outlook Survey.
Though moving at a slower pace, the employers now report the second strongest hiring intentions globally, with a Net Employment Outlook (NEO) of 19 per cent. However, this Outlook represents a considerable decrease of 24 percentage points quarter-over-quarter and 27 percentage point’s year-over-year, the survey finds out.
Of the 33 countries and territories surveyed globally this quarter, employers in Peru are the most optimistic, with an NEO of 24 per cent. The NEO is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their location over the next quarter.
“Though hiring intentions remain positive, Indian employers are reporting a much slower hiring pace, compared to the last quarter and year, says Manpower India MD Naresh Malhan. Employers in all the seven industry sectors and four regions have reported considerable decline in anticipated hiring activity for the first quarter of the New Year, its weakest since Q3 2005.
“The times may seem challenging, but the employment scenario in the country is not as gloomy as the rest of the world, and according to the survey, India will be one of the actively hiring nations for Q1 of 2009.”
Hiring-confidence of employers in India is the strongest of all the eight countries and territories across the Asia-Pacific region for the first quarter of 2009. Of the 3,557 employers surveyed, 22 per cent expect an increase in staffing levels in the quarter, 4 per cent anticipate a decrease, and 63 per cent are expecting no change.
Employers in mining & construction sector, for the third consecutive quarter, reported the most optimistic hiring intentions with an NEO of 23 per cent, though the Outlook shows a steep decline in employer hiring-confidence of 31 and 30 percentage points quarter-over-quarter and year-over-year, respectively.
Employers in services sector and mining & construction sector are expecting the most active hiring environment in the coming quarter with a Net Employment Outlook of 23 per cent.
Wholesale & retail trade employers reported the least optimistic hiring intentions with a Net Employment Outlook of 11 per cent.
Source: Times of India
Though moving at a slower pace, the employers now report the second strongest hiring intentions globally, with a Net Employment Outlook (NEO) of 19 per cent. However, this Outlook represents a considerable decrease of 24 percentage points quarter-over-quarter and 27 percentage point’s year-over-year, the survey finds out.
Of the 33 countries and territories surveyed globally this quarter, employers in Peru are the most optimistic, with an NEO of 24 per cent. The NEO is derived by taking the percentage of employers anticipating total employment to increase and subtracting from this the percentage expecting to see a decrease in employment at their location over the next quarter.
“Though hiring intentions remain positive, Indian employers are reporting a much slower hiring pace, compared to the last quarter and year, says Manpower India MD Naresh Malhan. Employers in all the seven industry sectors and four regions have reported considerable decline in anticipated hiring activity for the first quarter of the New Year, its weakest since Q3 2005.
“The times may seem challenging, but the employment scenario in the country is not as gloomy as the rest of the world, and according to the survey, India will be one of the actively hiring nations for Q1 of 2009.”
Hiring-confidence of employers in India is the strongest of all the eight countries and territories across the Asia-Pacific region for the first quarter of 2009. Of the 3,557 employers surveyed, 22 per cent expect an increase in staffing levels in the quarter, 4 per cent anticipate a decrease, and 63 per cent are expecting no change.
Employers in mining & construction sector, for the third consecutive quarter, reported the most optimistic hiring intentions with an NEO of 23 per cent, though the Outlook shows a steep decline in employer hiring-confidence of 31 and 30 percentage points quarter-over-quarter and year-over-year, respectively.
Employers in services sector and mining & construction sector are expecting the most active hiring environment in the coming quarter with a Net Employment Outlook of 23 per cent.
Wholesale & retail trade employers reported the least optimistic hiring intentions with a Net Employment Outlook of 11 per cent.
Source: Times of India
India's factory output falls for first time in 13 years
India's factory output fell for the first time in more than 13 years in October, further evidence of a rapid economic slowdown which could spark more monetary easing by the Reserve Bank of India (RBI) after aggressive weekend rate cuts.
Industrial output declined 0.4 percent in October from a year earlier, the first annual drop since data in the current series became available in April 1995, and sharply below the previous month's upwardly revised 5.5 percent.
The figure was below a forecast for growth of 2.2 percent in a Reuters poll of economists. Manufacturing production in Asia's third-largest economy fell 1.2 percent from a year earlier, data showed on Friday.
"It is a shocking figure and only underlines the fact that the Indian economy is in a very bad situation," said T.K. Bhaumik, economist at JK Industries Group. "This is a wake up call for the government."
Bhaumik called on the government to consider additional stimulus to that announced at the weekend and to use fiscal measures to lift consumer demand. Lending banks should move fast to pass on the RBI's recent rate cuts.
"Since the RBI has already done its job, now commercial banks should be fast to ease the credit line," he said referring to the Reserve Bank of India.
The Reserve Bank of India (RBI) Governor Duvvuri Subbarao has said India faces a period of painful adjustment after the global financial crisis froze credit markets in October, further weakening an economy struggling with high borrowing costs.
Subbarao said the bank's growth forecast for 2008/09 was likely to be cut from 7.5-8.0 percent. Many private economists expect it to dip below 7 percent.
The RBI cut its main rates by 1 percentage point on Saturday, lowering its key lending rate for the third time since October, and has indicated that it was ready to act again to bolster an economy slowing much faster than expected.
The government followed up with an additional $4 billion in additional spending to stimulate activity. The benchmark 10-year bond yield plunged to its lowest in more than four years after the data was published on increased expectations of further central bank action.
Industrial output rose 8.1 percent in the 2007/08 (April-March) fiscal year, compared with 11.6 percent in 2006/07.
Source: Agencies
Industrial output declined 0.4 percent in October from a year earlier, the first annual drop since data in the current series became available in April 1995, and sharply below the previous month's upwardly revised 5.5 percent.
The figure was below a forecast for growth of 2.2 percent in a Reuters poll of economists. Manufacturing production in Asia's third-largest economy fell 1.2 percent from a year earlier, data showed on Friday.
"It is a shocking figure and only underlines the fact that the Indian economy is in a very bad situation," said T.K. Bhaumik, economist at JK Industries Group. "This is a wake up call for the government."
Bhaumik called on the government to consider additional stimulus to that announced at the weekend and to use fiscal measures to lift consumer demand. Lending banks should move fast to pass on the RBI's recent rate cuts.
"Since the RBI has already done its job, now commercial banks should be fast to ease the credit line," he said referring to the Reserve Bank of India.
The Reserve Bank of India (RBI) Governor Duvvuri Subbarao has said India faces a period of painful adjustment after the global financial crisis froze credit markets in October, further weakening an economy struggling with high borrowing costs.
Subbarao said the bank's growth forecast for 2008/09 was likely to be cut from 7.5-8.0 percent. Many private economists expect it to dip below 7 percent.
The RBI cut its main rates by 1 percentage point on Saturday, lowering its key lending rate for the third time since October, and has indicated that it was ready to act again to bolster an economy slowing much faster than expected.
The government followed up with an additional $4 billion in additional spending to stimulate activity. The benchmark 10-year bond yield plunged to its lowest in more than four years after the data was published on increased expectations of further central bank action.
Industrial output rose 8.1 percent in the 2007/08 (April-March) fiscal year, compared with 11.6 percent in 2006/07.
Source: Agencies
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