Recession news

1. Canada’s iconic technology Company, Nortel Networks, filed for bankruptcy. Huge blow to Infosys and Wipro. Skype legend Morten Lund also announced bankruptcy in Denmark due to bad investments in a newspaper.
2. Economy is moving from bad to worse – European Union.
3. Germany economy contracted by 2% in the last quarter. China is now the third largest economy in the world after USA and Japan. Germany fell to 4th place due to shrinking GDP.
4. Deutsche Bank is expected to announce $6.4 billion losses in this quarter.
5. Retail sales were dropped by 2.7% in December (estimates 1.2%). That is the difference between estimates and reality. It is difficult to digest when actual number will come out. Sixth consecutive fall in retail sales in USA is due to drastic fall in consumption.
6. Bankruptcies are increased by 25% in Japan. 1,362 Japanese Companies bankrupted in Japan – most after 2nd world war. Difficult to digest.
7. Barclays bank (2,500), JLR (400) and Oracle Corporation (500 jobs) will lay off more employees.
8. Citi Bank is restructuring itself to escape from bankruptcy and is now just one third of its original size.
9. Moody downgraded credit outlook of UAE Banking system.