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Early Edition December 02 2008 at 06:00 AM Chi-Chu Tschang and Harry Maurer

Global Markets Follow the U.S. Down

The day after a 680-point, or 7.7%, plunge for the Dow Jones average in the U.S., stocks in Asia and Europe picked up the mantle and slid on growing concerns over the global economy. Despite interest rate cuts in Japan and Australia, markets there fell 6.4% and 4.2%, respectively. European indexes were trading down in the range of 1% in the morning, led into the red by banks and commodity producers.

The negative sentiment was fed by an array of reports from around the world showing steep declines in manufacturing activity and business sentiment. A report from the National Bureau of Economic Research on Dec. 1 revealing that the U.S. entered recession a year ago spurred the bearish mood on Wall Street yesterday.

Source: New York Times/Reuters, Bloomberg

Economic Signs Darken, as Bernanke Talks More Cuts

The NBER report that sent U.S. markets skidding Dec. 1 suggests the economic downturn will be deeper and longer than previous forecast, and already ranks as the longest since 1982. Federal Reserve Chief Ben Bernanke indicated in a speech that he is inclined to continue cutting interest rates, to an unprecedented level below 1%.

Source: Washington Post, Times of London

Automakers Get Ready for Washington Trip

Hoping to convince Congress to provide $25 billion in financial support for the beleaguered U.S. auto industry, GM and Ford are considering renegotiating their union contracts and selling their respective stakes in Saab and Volvo to the Swedish government.

Source: BusinessWeek

Democrats Crafting $500 Billion Aid Package for States

House and Senate Democrats are preparing a stimulus package worth up to $500 billion to boost infrastructure, health care, and alternative energy in the states. They hope it can be signed by President-elect Barack Obama soon after he takes office.

Source: New York Times

Goldman Faces Loss of $2 Billion for Quarter

The white-glove Wall Street firm, which has so far largely escaped the damage wreaked on its rivals, is set to announce its first quarterly loss since going public in 1999--and it could be as much as five times greater than analysts had predicted.

Source: Wall Street Journal

Switzerland Feels Iceland's Pain as Banks Reel

These are tough times for blue-chip Swiss banks like UBS and Credit Suisse. Hammered by the global economic crisis, legal probes in the U.S., and isolationism, they face stark questions about their future.

Source: Bloomberg

The Downturn Hits Green Energy

When oil was expensive and credit flowed freely, Europe's alternative energy boomed. Now, with financing scarce and the cost of renewables at a disadvantage, the industry faces a serious slowdown and shakeout.

Source: BusinessWeek

China Fears Reverse Migration

As hundreds of thousands of idled urban migrant workers go home to rural parts of China, the world's most populous nation worries that returnees could strain its already stretched countryside social services.

Source: Wall Street Journal

Boeing Engineers Approve New Contract

The aircraft maker's second-largest union, which represents white-collar engineers and technicians, voted to accept a new four-year contract offer, avoiding a potentially damaging second strike against Boeing this year.

Source: Reuters

Nokia Unveils a Do-It-All Touchscreen Phone

At an event in Barcelona on Dec. 1, the world's largest cellphone maker launched its new N97, a feature-packed device with a touchscreen, retractable full keyboard, and a host of customizable applications including 3-D maps.

Source: Wall Street Journal

Conversation of the Day: Flying the A380 Jumbo Jet

Reader Amit Choudrhy writes: "The plane's great. Now, all Airbus needs to do is sell enough of these to break even, which is the tough part."

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