March 5, 2009
GM could go bankrupt
Story link: GM could go bankrupt
The price of $30 billion that General Motors are asking for could be the only thing that could save them from bankruptcy. Without General Motors in the motor industry, there will be an immense lack of employment not to mention a string of dealerships without an avenue to access stock. The knock on affect that General Motors bankruptcy will cause, is likely to be catastrophic.
General Motors Corp on Thursday said its auditors had raised “substantial doubt” about its ability to survive outside bankruptcy if it fails to stem its losses and stop burning cash.
The “going concern” warning from the struggling U.S. automaker had been expected, but underscored the stakes for GM as it seeks up to $30 billion in U.S. government aid to restructure outside a court-supervised bankruptcy process.
Workers occupy factory
Story link: Workers occupy factory
I am sure workers at the factory were not just distraught, but shocked that they were being made redundant with immediate effect. This is definitely not a position any one should be put in.
Even so, the workers decided to make a stand about the incident by occupying the factory, as a sign of their disgust.
Workers at a packaging firm in Dundee have refused to leave their factory after being told they were being made redundant with immediate effect.
Prisme Packaging Ltd’s 12 workers were given the news on Wednesday by director Ken Andrew.
The future is bright for China
Story link: The future is bright for China
China has been showing signs of strength within its economy for the last few months, which is hopefully a signal for change. The Chinese economy has now strengthened for three months in a row, potentially a brighter future over there compared with most economies that are falling victim to the dreaded credit crunch.
The future is bright for China
China’s manufacturing Purchasing Managers’ Index (PMI) strengthened for a third consecutive month in February, climbing to 49.0% from 45.3% the previous month. Li & Fung Research Centre reports that there were some encouraging signs: all sub-indices were higher than their respective levels in the previous month though many were still lower than the critical level of 50% (i.e. still contracting).
In particular, both the Output Index and the New Orders Index rebounded to the expansionary zone of higher than 50% for the first time since September last year. In addition, the New Export Orders Index grew strongly by 9.7 percentage points to 43.4% in February, compared to the previous month.
March 3, 2009
Manufacturing slowing down faster!
Story link: Manufacturing slowing down faster!
Although many believe manufacturing to be doomed in the UK thanks to the recent, global recession, they are not completely right, as the exchange rate hit means that UK products are now cheaper for other countries to import.
On the other hand, if there are not many import/export deals going on, then that’s no good for the UK manufacturing businesses, who slashed 1,000’s of jobs in February.
Manufacturers slowing down faster!
Manufacturers in the UK cut jobs and output at a record pace in February, according to the latest Purchasing Managers’ Index (PMI).
The PMI showed employment and output levels at their lowest since the survey began in 1992.