Originally published by the Voice of America (www.voanews.com).
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November 5, 2008

New Reports Spur Fears of US Recession
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http://enews.voanews.com/t?ctl=1F26259:A6F02AD83191E160B0873B7CDB4DFFFBA13B8D4F2090AB2B&
 
US, European stock markets down sharply despite early gains in Asia
following news of Barack Obama's win in US presidential election 
Traders work on floor of New York Stock Exchange, 05 Nov 2008A series of
reports out one day after the United States elected a new president is
spreading fears that the world's preeminent economy is in a recession. A
private research group, the Institute of Supply Management, says
Wednesday the U.S. service industry - which includes businesses like
banks, airlines and restaurants - shrank in October to levels that
indicate the economy is contracting. The service sector represents more
than 80 percent of the U.S. economy. Two other reports Wednesday by the
private employment company ADP Employer Services and from human
resources firm Challenger, Gray and Christmas show the U.S. economy is
continuing to lose thousands of jobs. One report says the number of
workers fired in October is up 79 percent compared to the same time last
year - near a five-year high. Meanwhile, Europe's biggest economy has
moved to lessen the impact of the financial crisis. Germany Wednesday
approved!
  an almost $30 billion package of tax cuts and loans. And top are
urging banks to pass on interest rate cuts to consumers to help spur
growth. Man looks at electronic stock board showing US President-elect
Barack Obama, in front of securities firm in Tokyo, 05 Nov 2008U.S. and
European stock markets are down sharply in trading Wednesday despite
early gains in Asia following news of Barack Obama's win in the U.S.
presidential election. Asia's key markets all closed higher Wednesday.
Tokyo's key Nikkei index closed nearly 4.5 percent higher, while the
Hang Seng in Hong Kong ended the day's trading three percent higher.
There are also indications efforts to loosen the tight credit markets
may not be working well enough. A report Wednesday by an industry trade
group, the Mortgage Bankers Association, says the number of Americans
applying for home loans fell last week to the lowest level in almost
eight years because borrowing costs remain too high. Investors are also
looking ahead to Thursday, when the European Central Bank and the Bank
of E
ngland are widely expected to slash interest rates. Also, a new United
Nations report that says the financial crisis has spread to
international trade, hitting developing nations that export commodities
particularly hard. The U.N. report says a key measure of demand for
trade, which tracks shipping costs, has fallen dramatically over the
past few months.

 Some information for this report was provided by AFP and Reuters.


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