Business Headlines.............
Service resumes on January 5
The First Post's daily Business Pages service will resume on Monday, January 5 following its Christmas-New Year break.
Markets weak on economic worries
Markets around the world were weak as investors worried that the global economy would be poor next year. In the US the Standard & Poor's 500 Index fell 1.8 per cent on lower than normal trading volumes as the seasonal slowdown began. In Asia Hong Kong stocks declined, with the Hang Seng Index falling 3.2 per cent, even after China reduced interest rates by 0.27 of a point to 5.31 per cent. Aluminium Corp of China, the country's biggest producer, slumped 9.3 per cent and Cathay Pacific tumbled 2.2 per cent. In the UK the FTSE 100 Index opened nearly one per cent higher.
Investors bet GM to fail
General Motors shares "tumbled most in more than a month" on Monday during New York trading, in a sign of concern that the current bail-out "may end in a default", reported Blomberg.com. While the company has received a $9.4bn loan, to be paid over the next 24 days, which chief executive says is "what we asked for", investors are more worried and yesterday’s slide "all but erased" the 23 per cent gain when the rescue package was announced. Analysts question the fact that the automaker's management can change dramatically in such a short period of time.
Slash rates, save car plants - the arguments against 
Belgian government collapses
The Belgian government collapsed on Monday night, "the first national administration to fall as a direct result" of the global financial crisis, reported the Financial Times. King Albert II accepted the resignation of Yves Leterme's coalition government after accusations it had tried to "influence" an appeal court over the rescue plans for troubled financial services group Fortis. The court blocked the government-backed break-up plan and shares in buyer BNP Paribas have fallen to a six-year low amid worries that the €14.5bn sale will not go through.
What is Belgium actually for?
US developers seek bail-out
Commercial property developers are the latest group to seek part of the US government's bail-out funds, reported the Independent. They warned that a real estate crash could "wreak new havoc" on the banking system next year, putting developers "at the head of a growing list of industries" seeking government help. The plans do not involve aiding individual developers but injecting capital into the market for commercial mortgages, where $106bn of loans are due to be refinanced in the next 12 months.
The next sub-prime mortgage crisis
OECD warns on jobless rise
Some 25m people around the world "stand to lose their jobs" as a result of the global economic crisis, reported the Daily Telegraph. The head of the Organisation for Economic Co-operation and Development has warned that the jobs will be lost worldwide as a result of a "truly scandalous failure" of regulatory supervision for the crisis. He also urged countries in Europe to adopt "Keynesian-style plans" to spend more in order to boost their economies. The OECD was among the first to warn that the UK faced recession.
The Mole: Labour's reverse midas touch exposed by OECD forecast
Oil falls below $40 a barrel
Oil prices fell below $40 a barrel ahead of US GDP figures due today which are expected to show the economy contracted by 0.5 per cent, reported the Times. The price of US crude for February delivery dropped 51 cents to $39.40 a barrel. The International Energy Agency expects world oil demand to fall this year "for the first time since 1983", leading Opec to try to stem supply. The oil-price has slumped by more than $110 since July and Opec has tried to address the decline by announcing cuts in oil production of around five per cent since September.
Timebomb in the heart of Istanbul
...in brief..................
Whittard nears bankruptcy and Russia warns of gas shortages
Whittard of Chelsea, the 122 year-old coffee and tea specialist, is "on the brink of administration", with 500 jobs at risk, reported the Independent. The 127-store chain is backed by Icelandic group Baugur and is thought to be up for sale ahead of potential bankruptcy…………
A "record" number of merger & acquisition deals were cancelled in 2008, leading to a "sharp fall" in fees for banks, said the Financial Times. The total volume of deals worldwide was $3.28tr, down 29 per cent from 2007, as companies abandoned $911bn of transactions…………
Some of Bernard Madoff's clients may be required to return their profits as a result of a "clawback", reported Bloomberg.com. People who withdrew funds as long as six years ago "may be sued" on behalf of other victims to return profits and even principal, lawyers are suggesting…………
People: Madoff victim scorned for sob stories
New Zealand's recession is deepening, as its economy contracted "for a third straight quarter" due to the combination of a weak housing market and slowing global economy, said the Daily Telegraph. The country's GDP fell 0.4 per cent in the third quarter, after a 0.2 per cent drop in the second…………
Theo Fennell, the luxury jeweller numbering Elton John and David Beckham among its clients, has "slumped to a first-half loss of £840,000", said the Times. The company said it has been a victim of the economic slowdown and that progress on talks with investors was "slower than expected"…………
Russian gas provider Gazprom has warned that western Europe could be hit by gas shortages this winter, reported the Guardian. The problems could arise as a long-running dispute with Ukraine escalates, with Russia threatening its neighbour over an alleged $2bn of arrears…………
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