Slow track

Depression, recession, bear market... all have translated to job scares, a slowdown in demand and panic attacks. Here is a recap of the spillover effects of the ongoing economic imbroglio in the past fortnight, across the globe.

Lay-offs

1. Japan Air to cut 1,640 jobs by March 2011.
2. UK fashion retailer Marks & Spencer to cut 1,000 jobs.
3. Logitech International to cut 15% (500) of its non-manufacturing jobs.
4. WPP Plc, the world’s second largest advertising firm, to cut ‘several thousand’ jobs worldwide.

Hiring

1. Allahabad Bank is set to recruit 2,000 people during this calendar year.
2. Nikon India will be hiring 200 in-shop demonstrators this year.
3. The US-based Open-Silicon Inc will hire professionals in India and Taiwan.
4. Harman International Industries will employ 1,000 people over the next five years.

News From Boardrooms

1. Cash-strapped General Motors is set to auction more than 200 historic and unique cars.
2. The US computer giant Dell will close its main plant in Ireland with a loss of 1,900 jobs and shift production to Poland.
3. Toyota has slashed production at its auto parts joint venture in India by 40%.
4. Visteon Corp, the US-based auto parts supplier will cut the pay of salaried workers by 20% and limit itself to four-day weeks.
5. The world’s second largest software products company, Oracle, has reportedly begun linking the payment of its 20,000-odd employees in India with productive hours. This has resulted in salary cuts ranging from 10-50% across the board.

Bargains And Deals

1. Re 1/Rs 99: Base fares by IndiGo on most of its domestic flights.
2. Free take-back of cars by Hyundai America if one can’t pay within a year of buying.
3. Rs 2,500: Spend this on SBI credit card to get a promotional offer.

Extras

1. In Taiwan, the government is issuing vouchers worth USD 109 as Christmas bonus in January.
2. 30,000 people working with SEZs have lost their jobs in the past year.
3. India’s jewellery exports to the US declined 20 per cent during Christmas and New Year due to the economic slowdown.

Brands & celebs

1. Audi on fast track: German car-maker Audi exceeded its projected production target in India, reporting a sale of 1,050 units in 2008, a threefold rise compared with 349 units it sold in 2007.
2. Discounted Salvatore Ferragamo: Designer store Salvatore Ferragamo dropped the prices of 42 items, including bags and shoes, by 7-10% for the first time since the brand opened shop in Japan in 1992.
3. No bonuses for Citigroup execs: Citigroup’s top two executives—chairman Win Bischoff and CEO Vikram Pandit—have decided to forego their bonuses for 2008. The others too will get substantially reduced bonuses.
   

   Paris Hilton
4. Paris out of favour: Hotel heiress Paris Hilton’s reported $140-a-minute shopping spree, or $5,560 worth of garments bought in 40 minutes, in Melbourne, Australia, has come in for strong criticism because of the worldwide recession.

Quotes

For sectors that aren’t doing well, perhaps we may give another relief package to offer them a level playing field globally.
— Kamal Nath, Union Commerce & Industries Minister

Kamal Nath

The global economy will slow down significantly in 2009, with the industrialised economies having negative figures.
— Jean-Claude Trichet, President, European Central Bank

Being an emerging economy, our country will recover faster from the global crisis, unlike the US, which will take more time to get back on track.
— Jagdish Seth, Chairperson, Marketing, Goizueta Business School, Emory University, US

Policies

The Union Cabinet has approved liquidity support for NBFCs. RBI will provide this facility to an IDBI subsidiary, which will lend it to the NBFCs. This aid will be worth Rs 20,000-25,000 crore and must be used by the NBFCs only for repaying their existing liabilities.